Professional Documents
Culture Documents
Organisation Behaviour
Organisation Behaviour
PROJECT REPORT ON
EMPLOYEE MOTIVATION
SUBMITTED BY
PRADNYA SHETTY
M.Com Part II- Semester IV
2014-15
PROJECT GUIDE
Prof. SHIBHU
SUBMITTED TO
UNIVERSITY OF MUMBAI
Certificate
BUNTS SANGHA MUMBAI
ANNA LEELA COLLEGE OF COMMERCE &ECONOMICS
1
This is a bonafide project work & the information presented is true &
original to the best of our knowledge and belief.
PROJECT
GUIDE
COURSE
PRINCIPAL
EXTERNAL
CO-ORDINATOR
EXAMINER
DECLARATION
I, Mrs.PRADNYA SHETTY of Anna Leela College Of Commerce & Economics,
Shobha Jayaram Shetty College For B.M.S, M.Com Part II Semester IV, hereby declare
that I have completed the project on EMPLOYEE MOTIVATION in academic year 201415.
[PRADNYA SHETTY]
ACKNOWLEDGMENT
First of all I would like to thank the principal, Dr. K.S. Cheema and the
coordinator Prof. Prashant Shinde, who gave me the opportunity to do this
project work. They also conveyed the important instructions from the
university from time to time.
Last but not the least; I am thankful to the University of Mumbai for
offering the project in the syllabus. I must mention my hearty gratitude
towards my family, other faculties and friends who supported me to go ahead
with the project.
Table of Contents
1. Introduction to the Rural Entrepreneurship ..........................................................6-9
1.1 Entrepreneur........................................................6
1.2 Entrepreneurship....................................................................6
1.3 What is Rural Entrepreneurship..............................................................7-9
CHAPTER 1
INTRODUCTION TO RURAL ENTREPRENEURSHIP
1.1 MOTIVATION
Motivation is a force that drives people to do things. Employees are normally motivated to
achieve their needs, whatever they may include. Motivation is inside another person's head and heart. It
may be intrinsic or extrinsic. This is what we call motivation. Employees of a company will be motivated
if they associate certain incentives with an activity of work.
Motivation is an important function which every manager performs by assigning the people to
work for accomplishment of objectives of the organization .Issuance of well conceived instructions and
orders does not mean that they will be followed .A manager has to make appropriate use of motivation to
enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted
but also in gaining a determination to see that it is executed efficiently and effectively. In order to motivate
workers to work for the organizational goals, the managers must
Determine the motives or needs of the workers and provide an environment in which Appropriate
incentives are available for their satisfaction .If the management is successful in doing so; it will also be
successful in increasing the willingness of the workers to work. This will increase efficiency and
effectiveness of the organization. There will be better utilization of resources and workers abilities and
capacities.
The word motivation has been derived from motive which means any idea, need or emotion
that prompts a man in to action. Whatever may be the behaviour of man, there is some stimulus behind
it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his
needs and desires.
Motivating
Motivating is a term which imp lies that one person includes another, to engage in action by
ensuring that a channel to satisfy the motive becomes available and accessible to the individual ual
According to McFarland;
Motivation refers to the way in which urges, drives, aspirations, strivings, or needs direct,
control, or explain the behaviour of human being.
CHAPTER 2
NATURE AND NEED OF MOTIVATION
NATUR E OF MOTIVATION
1) Based on Moti ves:
organization is a self-contained unit and his needs are interrelated. These affect his behavior in
different ways.
CHAPTER 3
SIGNIFANCE OF MOTIVATION
Motivation involves getting the members of the group to pull weight effectively, to give
their loyalty to the group, to carry out properly the purpose of the organization. The following
results may be expected if the employees are properly motivated.
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Extrinsic motivation
Extrinsic motivation comes from outside of the performer. Money is the most obvious example,
but coercion and threat of punishment are also common extrinsic motivations.
While competing, the crowd may cheer on the performer, which may motivate him or her to do well.
Trophies are also extrinsic incentives. Competition is in general extrinsic because it encourages the
performer to win and beat others, not to enjoy the intrinsic rewards of the
activity. Social psychological research has indicated that extrinsic rewards can lead to over
justification and a subsequent reduction in intrinsic motivation. In one study demonstrating this
effect, children who expected to be (and were) rewarded with a ribbon and a gold star for drawing
pictures spent less time playing with the drawing materials in subsequent observations than
children who were assigned to an unexpected reward condition and to children who received no
extrinsic reward.
Motivation starts with you! As you aspire to be more successful in life, your attitude towards
yourself and others will play a huge role. Positive people learn how to handle life's challenges
differently and use these opportunities to grow. So can you!
Self Motivation
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Drives and desires can be described as a deficiency or need that activates behavior that is aimed at a
goal or an incentive. These are thought to originate within the individual and may not require
external stimuli to encourage the behavior. Basic drives could be sparked by deficiencies
such as hunger, which motivates a person to seek food; whereas more subtle drives might be
the desire for praise and approval, which motivates a person to behave in a manner pleasing to
others.
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CHAPTER 4
PLANNING A RURAL ENTERPRISE
P lanning is the foremost function in decision making to set up a rural enterprise.
Project planning aims at formulation of all the future project activities well in advance, determine the
quantum of resources required for the purpose and coordinate various activities to complete the activities as
per schedule at the right time. The first and foremost step to initiate the planning process is the identification
of a suitable project followed by information accessibility, market assessment, preparation of feasibility
report, etc. Besides, one has to know the registration procedure of the enterprise and various legal aspects of
business.
PROJECT IDENTIFICATION
For identifying a new project, there are many institutions/agencies such as Entrepreneurship
Development Institutes (EDIs)/Centers, Small Industries Service Institute (SISI), Technical Consultancy
Organizations (TCOs), etc. at State level and District Industries Centers (DICs), private consultancy
organizations, etc. usually located at the district headquarter or in a nearby town which can provide
effective counseling services in planning the enterprise and also in the subsequent activities.
Once one decides to set up own business, one has a wide choice before her/him. In other words, one has
a choice of starting
a) Manufacturing unit - Setting up an industry means one has to organize many things like planning,
arranging for technical know-how, buying and installing machinery, building a factory, managing several
departments like production, sales, quality control, personnel and administration, finance and so on and so
forth.
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b) Trading - Trading involves planning, purchase, sale, stock control and financial management. A retail
grocery shop, compared to an industry, is a simpler business. A large departmental store, however, is not so
simple.
c) Service enterprise - A service enterprise can either be simple or complex. For instance, setting up a
photocopying centre and managing it may be simple but inspection of offshore oil-gas lines is a rather
complex business.
To set up an industry or a service enterprise, one can start an enterprise in sectors like chemical,
pharmaceuticals, basic metal industries, metal products, machinery other than electrical machinery, electrical
machinery, electronics, transport equipments, textile, rubber, plastic, food, mineral-based industries,
ceramics, agro-based but non-food industries (e.g. making briquette from agricultural waste), paper, or
glass.
INFORMATION ACCESSIBILITY
One needs various types of information about several aspects such as opportunities, market,
technology, finance, policies, location, etc. The different sources of information could be:
i) Similar enterprise owners/producers
ii) Raw materials suppliers
iii) Machineries suppliers
iv) Packing materials suppliers
v) Customers
vi) Dealers
vii) Consultants
viii) Employees of similar enterprises
ix) Bank officials
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Information on Business Ideas - There are numerous directories, handbooks and databases published by
the Govt. of India, Associations and other agencies for obtaining information on opportunities.
These are information in the following forms:
Feasibility studies
Project profiles
Industry studies
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Ideas
An ability of a business idea among various alternatives being considered is a
must.
The key questions in settling down to a viable business idea are as under:
Possible scales of production or operation for which economies of scale is to be looked into
Investment for a given scale and the sources of funds and related expenses there on
Market prospects
Technical arrangements
Capital Organization
Capital is the prime requirement for any project. Term lending institutions such as State
Financial Corporations (SFCs), State Industrial Development Corporations (SIDCs), State Industrial
Investment Corporations (SIICs), Commercial Banks, etc. are the prime sources for meeting the project
cost such as :
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Construction of buildings,
Contingencies, etc.
While sanctioning loans, the financial institutions consider the credit worthiness of the project beside the
payback capacity of the project. Hence assessment of financial viability is a must before releasing the
funds.
Support System
Information about supp ort system is a must for an enterprise. In short-term it is the
information which helps in-sound decision making. The information could be on infrastructure
facilities, incentives available, financial tie-ups, availability of raw materials, tax concessions, etc.
Information on various infrastructure facilities such as availability of land, power, and water, facilities for
effluents or wastes disposal should be available from the District Industries Centre of the District or from
the concerned State Directorate of Industries. For financial tie-ups the State Financial Corporation and its
branches which are located at various districts of the State can effectively guide. Even commercial banks
of the locality could be approached. Also proper analysis has to be done by comparing relevant facts and
figures so that the best term or package is available to the entrepreneur.
There are tax concessions and other allowances available from time to time by the
Central Government or the concerned State Governments in the form of tax holidays, sales tax incentives,
etc. for which the concerned District Industry Centre (DIC) shall guide. They can also advise as to how to
meet various provisions of income tax, sales tax, excise duty, etc. depending upon the nature of the product.
MARKET ASSESSMENT
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Trading Practices
An Entrepreneur must try to understand the trade practices that are relevant to her/his
product. The intermediaries in the channel, prevailing sales tax, legal implications, etc. have to be
understood properly for assessing market. In selection of a product of service, there is the need to analyze
the market through primary and secondary data. These data can help to assess the current demand, the
forecast and the potential of a particular product or service besides the opportunities and risks available to
it.
Primary Data & Secondary Data
It is the information which is collected first-hand through field work or survey by various
methods such as Questionnaires, Personal Interviews, etc. There are various methods of collecting primary
data i.e. observation method, experiment method and survey method.
Secondary Data: Information which already exists in documented form. Such sources can be
a) Annual reports of the companies
b) Trade publication and records
c) Libraries and trade information centers
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It helps to collect primary data. The more accurate and fresh the data, the greater are the benefits. The
American Marketing Association defines marketing research as "The systematic gathering, recording and
analyzing of data about problems related to the marketing of goods and services".
There are five steps in marketing research process which are:
1. Problem definition
2. Research design
3. Field work
4. Data analysis
5. Report presentation and implementation
FEASIBILITY REPORT
It is very essential to prepare a feasibility report covering all the activities and the resources
needed for the project. The feasibility report broadly contains the following:
a) The background of the entrepreneur i.e. the educational background, family background and
professional exposure
b) Market potential and marketing strategy
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This Act is applicable where the number of employees is ten or more and where power is
used and twenty or more where power is not used. Under this Act the entrepreneur has to take necessary
measures for health, safety and welfare of the workers as per the Act besides taking necessary
precautionary measures against fire. Further, necessary records have to be maintained for working hours,
annual leaves, overtime, advances, wages, deductions, etc. The adherence to various provisions of the Act
shall be regulated by the Chief Inspector of Factories.
Thus Act is applicable to every trade, business, service, etc. which is also considered as
an industry under this act. Industrial disputes are common in a workplace. Such disput es may arise
between employers and employees or among the employees. This dispute may be related to employment
or non-employment or terms of employment or the conditions of labour of any person. The Authorities
under the Act are Works Committee, Conciliation Officer, Board of Conciliation, and Courts of
Inquiry, Labour Court, Industry Tribunals and National Tribunal. An entrepreneur has to follow
necessary procedures in case such a dispute arises
3. Social Legislation
Social security is a need for any employee. The Employees Provident Fund and Miscellaneous
Provisions Act, 1952 are applicable to any establishment employing 20 or more employees. Under this Act,
the minimum contribution payable by the employer towards provident fund is 8.33% of the salary. The
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4. Wage Legislation
It covers the following Acts:
i) Payment of Wages Act, 1936,
ii) Payment of Gratuity Act, 1972,
iii) Payment of Bonus Act, 1965, and
iv) Minimum Wages Act, 1948.
i) Payment of Wages Act, 1936 - This Act is applicable to establishment where ten or more workers are
employed on any day of the preceding 12 months with the aid of power and twenty or more workers
without the aid of power. Wages mean basic pay, dearness allowance, city compensatory allowance,
overtime wages and production incentives. As per the norms, necessary registers for wages and other
related matters have to be maintained.
ii) Payment of Gratuity Act, 1972 - It is applicable in all establishments in which 10 or more persons are
employed. Gratuity shall be payable to an employee who has put in uninterrupted service for a minimum
period of five years.
iii) Payment of Bonus Act, 1965 - The Act applies to establishments employing ten or more persons.
Under the Act the employer is liable to pay bonus to employees as an annual statutory payment
irrespective of profits. This Act includes all employees drawing wage or salary up to Rs. 3500 per month.
To become eligible for bonus, every employee must have worked for 30 working days in the
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iv) Minimum Wa ges Act, 1948 - This is applicable in 44 scheduled industries. Basic wages are fixed for
different industries and special allowances are announced by the labour commissioner every six months.
Necessary registers have to be maintained.
CHAPTER 5
HUMAN RESOURCES FOR DEVELOPING
RURAL ENTREPRENRURS
Human Resources are amongst the most essential resources that are required for fostering
rural entrepreneurship. The importance of human resources cannot be over emphasized, for it is this
resource alone that makes the greatest impact on socioeconomic development of rural areas. Achievement
motivation is a key to entrepreneurship development. This is achieved in many ways: childhood reading,
upbringing, exposure to challenging situations, self study, apprenticeship, coaching and training, all
contribute to achievement motivation.
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A brief sketch of the training and support programmes launched by the government is given to enable the
reader get a comprehensive view of the efforts of human resources development for rural
entrepreneurship.
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Swaranjayanti Gram Swarozgar Yojana (SGSY) was launched by Government of India in 1999
with a focus on providing effective self employment through self help group approach and activity cluster
approach for rural poor families below poverty line. The self help groups are motivated through training
and capacity building for taking up thrift and credit activity and start their own small rural enterprises
through the financial assistance of Revolving Fund Assistance.
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CHAPTER 6
BASIC INFRASTRUCTURE FOR RURAL
ENTREPRENEURSHIP
Infrastructure plays a significant role in providing and enabling encouraging atmosphere for
the growth and spread of rural enterprises and small industries. The achievement of an 8 percent growth
rate envisaged in the Five Year Plans will require industry sector growth of over 10 percent, with at least a
corresponding growth in demand for infrastructure. In India, serious problems have been building up in
the infrastructure sector for many years: in transport rail efficiency is low, there has been underinvestment and freight rates are high in order to subsidize passengers. The basic infrastructure includes
transport, utilities and communication including railways, roads, ports, power, and telecommunication
services. Additional infrastructure facilities that are also required are drinking water, housing, healthcare,
among others.
Transport, Power and Communication: A well knit and coordinated system of transport plays an
important role in the sustained economic growth of a country. Transport system forms the major basic
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The expected share of roads in total traffic would be 65 percent of freight traffic by the end of 2007,
which can be achieved through the national highways development programme. Rural roads are also
given their due importance through special programmes like PMGSY, whose objective is to link with a
population of more than 500 with all-weather roads by the end of 2007. A Central Road Fund was created
through a Central Road Fund Act enacted in December 2000.
Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched to provide all weather basic access to about
1.72 lakh habitation of populations of 500 or more. PMGSY roads are constructed to high technical
standards and backed by 5 year maintenance contracts. The objective of rural connectivity is to provide
basic access and the continuity of linkage up to the market/service centre in a cost effective manner. In a
recent study it has been found that the Indian government's expenditure on road construction
contribut ed more to poverty reduction than did the other investments. Roads helped farmers transport
their goods to markets, gave them better access to higher-wage employment opportunities in the rural
non-farm sector, and increased consumers' access to food markets.
Investment in infrastructure in general (roads, electricity, and communications) also reduced poverty by
enhancing agricultural, productivity growth, thus increasing farm incomes and expanding the nonagricultural sector.
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Telecommunication: The telecommunications services form the core area of infrastructure development
today with the thrust on e-governance up to district, tehsil and Gram Panchayat levels. Telephones have
become omnipresent with installation of more than 37000 electronic telephone exchanges by the
government.The results have been dramatic. After decades of constraints, tele-density rose from 1.57 per
100 persons in 1991-2 to 4.4 in 2002 (including mobiles). The target for direct exchange lines in the Ninth
Plan was achieved. Capacity grew by 22% p.a. sufficient to sustain new telecoms-based industries such
as call centres - and costs fell. Contractual and regulatory constraints on the private sector were eased in
the light of experience. There is still a marked difference between rural and urban areas, with tele-density
being 1.14 in rural areas against 10.16 in urban. One third of villages have no phone lines. Computerization
of Land Reforms (CLR) was started as a centrally sponsored scheme in 1988 -89 on a pilot basis in eight
districts in eight states to remove the problems inherent in the manual system of maintenance and
updating of land records and to meet the requirements of various groups of users people, planners and
administrators. The CLR scheme is extended to about 365 districts and 35 19 tehsils or taluks.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI):
Government has recently launched
the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) under which 100 traditional
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CHAPTER 7
MANAGING A RURAL ENTREPRISE
A rural entrepreneur attempts at managing his enterprise through three sets of enterprise
management functions: primary, production management and financial management functions. After
launching a rural enterprise, various entrepreneurial activities are taken up by the entrepreneur for
optimizing resource use, maximizing profits and enhancing the efficiency of running the enterprise.
So he engages himself in producing and marketing products. He has the simple goal of making the unit
economically viable and sustainable.
Hence managing the enterprise assumes greater importance to achieve efficiency and to
make profits on a continuous basis. So managing a rural enterprise becomes the top priority of the
entrepreneur. Organizing resources -men, money and materials for production, processing, packaging,
and marketing of goods is the essence of managing an enterprise. Choosing and upgrading appropriate
technology is also a key factor for the success of the enterprise.
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The new entrepreneur has to have a clear vision for his enterprise and plan for achieving long-term
goals. So planning is the most essential of all the primary management functions. The decisionmaking about the choice of product line and technology to be used is also very important. Then organizing
production /services is another essential aspect that the entrepreneur has to think of. Organizing
involves resourcing the enterprise, which includes arranging for men, money and material resources for
starting production work. Staffing, i.e., recruiting and selecting suitable manpower to run the enterprise,
is yet another primary aspect for the entrepreneur-manager.
The primary management functions include most essential functions, such as planning, decisionmaking, organizing and staffing.
Planning
Planning is a process of setting goals and a suitable course of action for achieving the enterprise goals.
Planning is done at two levels: strategic and operational levels. Strategic Planning: When an entrepreneur
adopts a clear long-term goal with a clear vision and well expressed and articulated mission statement for
his enterprise, the entrepreneur is said to be practicing strategic planning. In the small-scale industries and
rural enterprises, there is very limited scope to adopt systematic planning and adherence to strategies. The
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Decision-Making:
Usually every rural entrepreneur takes several decisions, on a regular basis, for handling
daily operations of production, assessing the sale volumes for production, assessing working capital
requirements, maintaining quality of\products or services, reducing costs, increasing profits, etc.
Appropriate decision-making is the hallmark of successful entrepreneurs. An element of risk taking
willingness of an entrepreneur plays a key role in taking right decisions. Usually the decisions taken
would prove to be right or wrong only after the results start coming and after assessing the consequences.
Product Choice:
Entrepreneurs make several decisions about product choice. When an entrepreneur attempts
to make a difficult or complex product, say an electric mains switch, marketing it is relatively easier
than the items which can be easily produced. Running around marketing of simple and easy
products consumes more time and pays fewer dividends. Moreover, with difficult products in hand,
the entrepreneur can even monopolize the market, while with simple products he/she faces heavy
competition due to many players in the market.
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Managing a rural enterprise involves looking after production processes to ensure quality control and
wastage reduction. So, technically trained entrepreneurs spend more time in close and direct supervision
of the production process. Those people who bad prior experience of working in a product line also give
special emphasis to production process. So, they assume that production is crucial part of small-scale
enterprises and feel that time devoted to .production never goes waste.
The entrepreneur-manager also takes care of raw material supplies and studies the raw
material market, explores for new dealers and spends a lot of time for getting better raw materials
and components for the enterprise. The organizing function of managing a rural enterprise evolves into an
expertise and specialized field for entrepreneurs because this is one area of enterprise control where costs
can be controlled.
Adequate experience and enough knowledge about all the raw material components required and
their sources to get them at competitive prices is another essential feature of successful management of an
enterprise. Getting to know the reliable supplier of raw materials does not happen in a day or two. It
involves many trials and tests and is quite painstaking. A good manager believes in simple truths: "No
pains, no gains!"
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experience as
the
entrepreneurs
experienced managerial personnel. They often learn their job according to the exigencies without much
prior practical training. Due to shortage of management staff, it is imperative for the entrepreneur-owner to
also handle other's jobs to ensure that the work does not get held up in case someone is absent. Managers
have also to be recruited suiting their abilities and temperament. A good manager diagnoses the problem
objectively and does not get carried away by emotions and tempers. Similarly the capable and competent
supervisors and foremen on the shop floor make a great difference in production performance and quality
control.
Training the unskilled labour : Getting the skilled labour may become difficult as the better skilled people
may not opt for working in a rural industry. But the unskilled labour may take long time as they learn
everything on the job and through experience may acquire necessary skills. In such cases, where skilled
labour are hired from outside, they may soon quit for better opportunities elsewhere. So when these
people leave the enterprise, the lower level unskilled labour may take over operations with mixed results.
In the process, the enterprise slows down and suffers. The lower skilled or unskilled labour force are
usually not provided any technical training for the fear of losing them as they may leave for better options
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machinery, equipment, and other fixed assets, and also recruited and selected required work force, she
would start production. She/he is ready and set to start operations of her/his enterprise. The entrepreneur
needs working capital for starting production. She tries to understand the operating cycles of production
assesses working capital requirements and sets about producing goods. So s/he needs to understand
operating cycle, Working capital, etc. Then the new entrepreneur would make attempts at production,
engages in trial production- and adopts a pricing policy based on the costing of making the products
Working Capital: An entrepreneur needs finance for various operating expenses. She needs to buy raw
materials, consumables, packaging materials, etc., and needs money for salary and wages, rent,
premium and other services. So, in order to cover all these, expenses she would need money, which is
known as the working capital. This money can be recovered once the entrepreneur sells the finished goods.
Till that time, the funds gets locked up in the production process. So, working capital can be defined as the
amount of capital perpetually locked up in the form of current assets viz. raw materials, work-inprogress, finished goods, credit may lead to wrong decisions and result in a chaos in the enterprise, which
tin be easily avoided given and cash required to sustain a specified level of activity in terms of
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Marketing Management
Marketing is perhaps the most crucial of all management functions in rural enterprise
management. If the entrepreneur can understand the preferences of customers and adopts an effective
strategy for marketing and selling, distributes products and services directly or through agencies to
customers, then probability of success is very high. A good entrepreneur makes prior agreements for
assured marketing and adopts an effective marketing strategy and thus earns profits through marketing.
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Statement :
Income
statement
summarizes
the
enterprise's
financial
capability.
An
entrepreneur, after all, works to earn an income from her/his enterprise. If she is not aware of how much
she had earned over a period of time, she is not in a position to decide whether to continue or stop or
change the course of action. Through an income statement, the entrepreneur will have a fair idea of the
operational costs, cost of products sold, administrative expenses; taxes and interests paid, and the net
income earned. The income statements of over; a period of years or cycles of production will also help the
entrepreneur to actually know whether there are incremental gains or losses in her/his enterprise.
Effective financial management practices form the core of managing a rural enterprise. The rural
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1) Institutional
2) Non- Institutional
The former comprise commercial banks, co-operative societies, development banks, regional
rural banks
and
non banking
environment and observe fixed norms & guidelines enumerated by the government. Since they are
more amenable to policy prescriptions of government authorities they have fixed criteria on rate of
interest, primary & collateral securities & selection procedures. The non institutional agencies are lending
agencies operating in non formal manner. They are mostly money lenders operating in rural areas. They
are only lending agencies before the entry of institutional agencies. Rural people have easy access to
these sources of finance, as there are no Rules & regulations guiding their activities. They charge
very high rate of interest and many of them take away the entire property of the poor people which is
pledge by them for granting loans of even very small amount.
Institutional financial is of three types:-
, National Bank of
Agricultural and Rural Development Bank (NABARD), National Housing Bank (NHB)
3) Non banking financial companies
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employees
monitoring and completion. This act of assigning work related to management coupled with formal
authority and responsibility is called delegation. Entrepreneurs delegate work to others in order to manage
the enterprise efficiently and successfully. In this process, the entrepreneur personally handles some of the
most essential jobs and gets other less critical jobs done under her/his instruction and supervision.
Usually many entrepreneurs learn something about all the tasks of their enterprise. An entrepreneur who
can handle all operations of one's unit is more likely to succeed only because she pays equal attention
to all aspects of managing the enterprise. Moreover, she can easily diagnose what went wrong and
where. Time management also assumes significance as proper distribution of time proportionately among
all aspects of enterprise ensures success. Many of the successful entrepreneurs, even though they delegate
some specific works to supervisors in their enterprises, are not entirely happy with the process of
delegation. They would insist that the responsibility still rests with them in ensuring the completion of
some works and quality of products/services. To give an example, the poultry farmers rarely delegated the
technical tasks like vaccination of birds at regular intervals as it involves high level of skill and its poor
performance may result in high losses. On the other hand, a low skill task with low risks like 'daily feeding
of birds' was often delegated to the workers.
Supervising
Supervision may be defined as the art of directing the effort or harnessing the energy of human
resources of the enterprise for the attainment of enterprise goals. Supervision involves directing, delegating
and controlling functions of a manager, Close and direct supervision is essential for maintaining
quality control.
Quality Control: Quality conscientiousness is another aspect that fetches more monetary returns.
Improving quality of products by redesigning and using better components is possible only when the
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CHAPTER 8
PITFALLS IN MANAGING A RURAL ENTREPRISE
A promoter of a rural enterprise faces a plethora of problems, usually called 'teething
troubles' when he/he sets up her/his enterprise. First, arranging working capital becomes the major task
as she runs out of money to buy raw materials though she may not yet have earned any reputation in the
market to get raw materials on credit. Similarly, she makes several production trials, refines the
finished products, improves quality, attempts to set a price for her/his products, etc. In the process, she
learns from the customers and distributors about the preferences and prices.
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CHAPTER 9
BIBILOGRAPHY
http://www.scribd.com
http://www.google.com
http://en.wikipedia.org/wiki/preference
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