NIBM ASSIGNMENT

1 Year MBA - ASSIGNMENT

SEMESTER 1

INDEX

[Abstract: Assignment is related to six question related to six subject of 1st semester of M.B.A. i.e. 1)Principle and Practice of Management 2) Human Resources Management 3)Financial Management 4)Marketing Management 5)Organizational Behavior 6)Principles of Economics ]

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SR.

NO.

SUBJECT-TOPIC

PAGE NO.

1 PRINCIPLES AND PRACTICES OF MANAGEMENT 3

2 HUMAN RESOURCES MANAGEMENT 5

3 FINANCIAL MANAGEMENT 7

4 MARKETING MANAGEMENT 9

5 ORGANIZATIONAL BEHAVIOR 11

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1.) Principles and Practices of Management

Question

:

Ans:

To influence people for group objective several organizational factors must be kept in mind to achieve target:

* Goal must be common and consistent throughout project and accepted by all member of group and discussed properly before implementation, so that error should be corrected and mental capability of team member can be judged.

* Team concept must be supported by Top management and commitment towards objective is required by all team members. For that active participation of self is desired. * To give responsibility in well-defined manner, after judging each member’s ability and work efficiency

* Both real and perceived power delegated to the teams. * Mutual accountability for team performance.

* To recognize and establish reward system for higher target.

* Majority team member designated as Manager or Dy. Manager in their respective role, as mental theory suggest that leadership feeling in individual improves work efficiency and his will to work hard increases. The Leadership responsibility may be given to team member for specific objective or goal of the team's mission. In some cases, leadership may shift to different team members on a rotating basis.

* Proper Team Building:

- Right qualified members - Clear Direction to members

- Member must be connected and have access to all department of organization - Everyone must agree to basic concept and goal of team

- Everyone must adhere to basic policies - Every member has proper training

- Every member must be positive for allocated target

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Team or Group of People is not always best structure to get desired target effectively. Manager must decide about work efficiency as a group of employee before making team structure for particular target. Hence proper communication among team is must.

Good employee communication is essential to good teamwork, but few employees may have "communication anxiety." To overcome this, proper training, repeated meeting and communication sessions are require simultaneously with Team Building process.

Goal is something which needs to be approached, achieved and moved forward to. Communication is the passing on of ideas and information. Communication provides bonding element among team members. Proper and clear communication at all level of management is must. We can influence our people very much by way of communication. Communication is indispensable in any workplace. That can be done by Face-to-Face; Written; Email; Voice mail; Text Messaging and Instant Messaging. Each requires involvement by the sender and receiver to be effective. To set up good communication model in team is prerequisite to maintain team unity. Model must be easy, precise and language used must be known by everyone. Communication must flow bi-directional. Higher authority’s message must reach to root worker and root worker’s problems, activity and work information must reach to higher authority to maintain integrity of team and solve any problem quickly. Communication must serve a purpose related to planning, decision making and evaluation. Communication must flow to the end without by passing any member. Repetition of message improves the effectiveness of communication.

To maintain the communication cycle, repeated meeting with team member about 1) Input 2) Processing 3) Output-Target Achieved, is required. By this, we can know any surprising element from process, take an action in further choice and make better effective change in plan. In meeting, effective group discussion, suggestion or feedback by members, seminar by member who has achieved good target will influence final target in positive way.

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2.) Human Resources Management

Question

Ans:

In concepts of Management, there are many “Ms” i.e. Men, Material, Machines, Methods, Money, motive. Most important is MEN (HUMAN) as rest of “Ms” are moves around humans. Human is prime asset of organization to work uniformly and to achieve high target. Hence, Human as a resource of organization must be managed.

Today is the phase of global economic crisis. Hence there is a recession period in major field. This recession affects almost all the fields especially IT field. To overcome this situation, we should plan and to undertake an effective human resource policy at macro level.

Focusing on IT industry:

-we should plan Human Resources to overcome the crisis 1) To decide Objective and Goal:

- For IT organization, we should plan long term objectives and goal - We should match employee’s salary with estimated income

- To expand the market with encouraging the employee to launch new product to increase income from extended market coverage

- We should recruit quality employee by short out process, this will help rapid growth of company

2) Estimate the Future Man Power Requirement:

-This is the most important step, we must estimate future requirement of man power roughly to prevent over employment as this will lead to increase investment unnecessary and lead to recession in future. Proper balance between investment and outcome is must to gain profit without affecting quality of product.

- Forecasting also based on factor of economic cycle such as inflation, raw material cost etc.

- It should be done periodically

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3) Auditing Human Resources:

- We must gather data of present employees about skills, experiences, Qualification, Salary, work

- This will help to analyze future requirement, unskilled employee, and unqualified employee as IT industry needs updated employee

4) Job Analysis:

-After Gathering all data of current employee, we do their job analysis. What they are doing? What work they have given for organization’s growth?

What wages they are paid? Anyone require to be trained? How many are burden to company?

- From this we can plan future requirement and present up gradation for new vacancies. - We can judge which particular skill or qualification is lacking and to be recruited on priority basis like software maintenance, software development, antivirus, cyber security, hardware maintenance, service delivery to customer etc.

5) Develop final HR plan:

- Final step is to develop effective Human Resource Plan to recruit new employee or to train existing employee.

-utilize local man power to reduced High pay burden for service delivery to customer for particular product

-check availability of part time labor

-plan good recruitment process to get best and deserving candidate

The economic crisis has touched every industry and profession, thoroughly altering the hiring setting. Increased unemployment, and lowered profits have change the way workers are hired and fired, and considerably demand the need of Human Resource Planning.

We can conduct primary research among HR and recruitment professionals to come out with a picture of how companies have acted and reacted, as well as recommendations on how leaders can take a proactive approach to staffing for the future.

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3.) Financial Management

Question:

Ans:

Liquidity means that:

1) Firm has adequate cash to pay for the expenses

2) Firm has enough cash to make unexpected large purchases 3) Firm has cash reserve to meet emergencies at all times

For this, regular Cash flow is must and it can be done by maintaining ratio between Expenses and Profit.

-Determine the source of finance:

-> Long term finance in the form of shares is good option, it can be sold and buy back as and when required without much loss.

-> Short term finance must be used for emergency and for higher profit expected project

-> Plan some of regular profit amount in safe way in the form of deposit, company infrastructure, property which can be a future source of cash

Manufacturing Cycle must be faster so that final furnished product can be sold early and get working cash back to reduced debt interest.

Estimation of working capital to optimum level as it balances risk and returns. For this Working Capital Policy Index (WCPI) can be calculated by the ratio of Current Assets to Fixed Asset. Higher Ratio indicates conservative policy and low ratio indicate aggressive policy. Conservative policy gives greater liquidity and lower risk and returns and opposite for aggressive policy. Current Ratio should be at least 2:1

CASH MANAGEMENT:

-controlling level of cash balance by preparing cash budget monthly basis, finding alternate source of cash, for seen situation like strike, recession, flood while preparing cash budget

-controlling the inflow of cash by using techniques which help in speedier collection of cash

-controlling outflow of cash by creating centralized system for disbursement, effective payments only on the due dates, float system for cheque payment

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The higher short term assets and the less your short Term debt; make your ability better to pay the debt (short Term liquidity ratio / liquidity ratio help you determine this). The short term creditors of a company like supplies of good of credit and Commercial banks providing short-term loans are primarily interested in knowing the companies ability to meet its current or short term obligations of a firm can be met only when there are sufficient liquid assets.

Therefore, a firm must ensure that it has sufficient liquidity or the capacity to pay its current obligations due to good liquidity position. The current assets should either be liquid or near liquidity. These should be exchangeable into cash for paying obligations of short-term nature. If current assets can pay off current liabilities, then liquidity position will be satisfactory.

The ideal current ratio is 2:1 means if company’s current assets are reduced to half, then also the creditor will also able to get their payment in full. The firm has to maintain core current assets which is easily realizable at all times. The laid down bench mark ratio to maintain the ratio of core current assets to current liabilities is 1:1.

The ideal liquidity ratio is 1. This indicate short term solvency of company.

Hence, adequate cash planning, cash budgeting, financial fore casting is required to maintain liquidity.

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4.) Marketing Management

Question:

Ans:

In super market, we are selling different product of different brand to customer/consumer. We are basically dealing with consumer goods. So consumers satisfaction is must to increase sales.

In Data Collection, we should focus on various factors affecting Consumer Behavior.

Consumer Behavior Model

INPUT

PROCESS

OUTPUT

Marketing Stimuli 1. Product 2.Price 3. Promotion 4. Distribution Channel Other Stimuli 1. Economic 2. Technological 3. Political 4. Social Buyer Characteristics 1. Psychological 2. Personal 3. Cultural Buyer Decision 1. Process Buyer Action 1. Product Choice 2. Brand Choice 3. Dealer Choice 4. Purchase Timing 5. Purchase Amount BUYER/ CONSUMER CULTURAL 1. Culture 2. Sub-culture 3. Social class SOCIAL 1. Reference Groups 2. Family 3. Roles and statuses

PSYCHOLOGICAL

1. Motivation 2. Perception 3. Learning 4. Beliefs and attitudes

PERSONAL

1. Age and life cycle stage 2. Occupation 3. Income 4. Personality

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Study of above factors, output and finding out the buyer’s demand and requirement leads to growth. After deciding about above factors, input, output and process for super market, we do Randomized Control Trial by selecting random consumer residing nearby store, coming to the store as per decided sample size.

After selecting sample (Group of Random people/Consumers), we ask them different question related to above model. For Example:

1) Religion, way of Festival celebration, tradition, culture, social class, economic status 2) Age, Sex, occupation, income

3) Family members, role in society, role in company, group activity

4) Product choice, brand choice, importance of branded product, quality assurance, price affordability, more of delivery-from shop or home, technological equipment in store, store design, product arrangement etc.

After collecting data from group of people, we short out them accordingly age group, sex, and income groups. We then prepare excel sheet to fill data, prepare charts. From that we analyze the mind set of consumers, their sense about brand, their requirement of product category, service requirement, and technology up gradation requirement by statistical interpretation-1. Multiple Regression 2. Cluster Analysis 3. Factor Analysis

After interpretation, we make effective marketing strategy and build a plan according to consumer response. But research does not end here. We will start experiment of the new ideas. We do continuous observation on strategy. Study goes on.

Consumer friendly environment, consumer friendly services and consumer friendly products in Super market let consumers to make regular entry. Proper Advertisement as per research interpretation leads to good outcome.

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5.) Organizational Behavior

Question: If you are made the campaign leader for a particular political party. How will you use your leadership skills to motivate your party men to ensure success of the party nominee in the elections? (Focus on the individual, motivate and apply leadership style).

Ans:

Leadership skill is something that influences other member of group/party/people towards a goal decided by a leader. Manager tries to set effective planning and policy, but leadership quality required to implement policies and to be adopted by employee or follower.

If I am a campaign leader of particular party, then my goal to ensure success of that particular party and to motivate their party nominee for effective strategy for success. To be a good leader,

-I have to adapt myself to situation and local condition -I have to adjust myself to any condition for local campaign -I have to give dominant and assertive speech

-I must be aggressive towards goal -I have to control my emotion -Decision power

-My speech should be to the point and fluency in speech -self confidence

-I have to boost my intelligence level by reading history and latest books and novels -Social participation

First I have to set up a meeting with party nominee, give them effective, confident, motivating speech and good discussion about current situation. Then I have to suggest them which topic should be used in which way to get attention of people. My body language will remain strong in every speech that will make my image stronger.

I have to connect with people in their traditional way, so that they will feel homely with me. I have to find out local problem by interacting with the society. I have to assure them about their problem that they will be look after. I have gather information about weaker side of opponent strictly related to public life only.

Then I have to direct my party nominee to raise the point of local issue, connect with them, stick to your decision and not change frequently. I have to find out local problem and one common problem for country for each nominee and ask them to spread effectively and this will bring their win definitely. I have to adjust myself to local culture for local nominee campaign.

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In modern era, there are few new concepts in leader ship those are branding, technology and rough decision.

Branding means I have to make my image popular by my work, showing my good work to people by constant advertisement, by local conference, seminars –in which I have to show my activity and goal for future.

Technology is one by which people connected easily as a human. I can’t reach each and every place frequently, but by technology I can connect many human beings simultaneously. That will also show my intelligence level in understanding of technology. Currently, Gujarat’s Chief Minister Mr. Narendra Modi is using the same in their campaign very well.

Rapid Decision making ability in any situation makes the leader powerful and popular among the people.

I can use branding and technology simultaneously to show my intelligence level as well as to ensure my party men that I am strongly working for campaign. That will create belief in them that if they work as I suggested, they will surely wins the battle of election. I can connect to each party nominee by means of conference call frequently and guide them for local problem.

In short, an energetic, intelligent, fluent, highly technical and motivational speech among party nominee electrifies their working capacity and ensures them win.

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6.) Principles of Economics

Question: Suppose the price elasticity of demand for text books is two and the price of the text book is increased by 10%. By how much does the quantity demand fall? Inter the result and discuss reasons for the fall in quantity demand?

Ans:

Price Elasticity of Demand (Ep) = Percentage change in the Demand ---

Percentage change in Price

Hence, here

2

Percentage Change in Demand is 20 as per formula. So, Quantity Demands fall by 20 %.

Here, Quantity Demand falls, because text books are the things which are not used for life long and there are many substitutes available for text books. If price increases, some may use old book instead of newer to save money. People might copy it to use, though it is illegal. Many text books alternative also available online.

For Example, XYZ Company has made some text book production about social science. His text books in market now in demands. But if he increases cost, then consumer ask about low cost alternative for same book which was easily available as so many companies doing the social science text book related publication.