NAME : Pankhuri Sharma

COURSE : MBA

SEMESTER : One

BOOK CODE: MBA-101

BOOK NAME : Communication Skills

DATE OF SUBMISSION: 23-11-2017

Q.1 Highlight the role of communication in business .

Ans.1 The term communication is derived from the Latin word communis which means
common. Therefore, communication may be defined as exchange of facts, ideas, opinions or
emotions between two or more persons to create common ground of understanding.

“Communication is the intercourse by words, letters or message, intercourse of thoughts

or opinion. It is the act of making one’s ideas and opinions known to others”.

There are several points that highlight the role of communication in business. These are : -

1. Basis of decision-making and planning : Communication is essential for decision-

making and planning. Managers get the required information for planning through
communication. The quality of managerial decisions, depends on the quality of
communication. At the same time, the decisions and plans of management need to
be communicated to the subordinates. Effective communication is also helpful for
the proper implementation of plans and policies of the management.

2. Smooth and efficient operations : An effective communication serves as a lubricant,

fostering the smooth and efficient functioning of the enterprise. The achievement of
goals of the enterprise is of paramount importance and communication is one of the
important tools available to the manager to attain them. It is through
communication that a manager issues orders and instructions and changes and
regulates the behaviour of subordinates in the desired direction. Effective
communication promotes managerial efficiency.

3. Higher productivity at lower cost : Effective communication helps to increase the

quantity and quality of work. It saves time and effort and thereby helps to reduce
the cost of operations.
4. Effective leadership : Communication is the basis of effective leadership. It brings
the leader and the led in close contact with each other. Through communication a
absence of efficient communication, delegation and decentralisation of authority
cannot be effective.

5. Effective control : Managerial function of control involves measurement of actual

performance, reporting the results to higher authorities and communication of
corrective actions taken to employees. All this cannot be possible without an
efficient system of communication.

6. Public Relations : In the modern business world, every business enterprise has to
create and maintain a good corporate image in the society. It is only through
communication that an enterprise can keep the society informed about it services.
Sound communication enables the management to maintain good relations with
customers, shareholders, workers, suppliers, government and community at large.

7. Democratic management : Communication is the basis of industrial democracy. It

enables management to involve workers in the process of decision-making and
thereby secure workers participation in management.

8. Industrial harmony and peace : A sound communication system creates mutual trust
and confidence between management and labour. It enables the management to
come into close contact with workers. Sharing of information and ideas with workers
eliminate their fear and understandings. Therefore, good communication is essential
for cordial relations between employers and employees.

9. Facilitates coordination : Communication is the most effective means of creating

cooperation and coordination among individual efforts. It is the foundation of
cooperative group activity. Exchange of ideas and information helps to bring about
unity of action in the pursuit of common purpose. Communication is the cement that
binds people together. Group meetings used in co-ordination, involve exchange of
ideas and knowledge, and transfer of information and understanding.

10. Employee motivation and morale : Through communication, management can keep
the employees fully informed of plans, job changes, etc. The motivation and morale
of employees tend to be high when they clearly understand what they are supposed
to do. Communication is the means by which employees can bring their suggestions,
difficulties, and grievances to the notice of the management. Upward
communication ensures greater job satisfaction and stimulates workers enthusiasm
and loyalty to the enterprise. Effective communication satisfies personal and social
needs of employees by creating interpersonal relationships.
Q.2 How important are letters in business communication ?
Ans.2 Business people have to communicate with the customers, the suppliers, the debtors,
the creditors, the public authorities and the public at large as well as among themselves for
the purpose of exchanging their views and of sending and receiving information. This is
required to initiate, carry out and to conclude transactions. Businessmen must establish
contact with the people and then only they can develop their organisations. Importance of
communication is very great in business life. There was a time when the size of business was
normally small and varied means of communication were not available, direct meetings or
face-to-face communication was practised by the businessmen. Later on, the policy of
sending representatives for direct contacts was introduced. All these methods have their
limitations.

The importance of business letters as the cheapest and most extensive form of
communication was first realised in USA and UK and now this method has been accepted as

the best method of communication all over the world. This has been possible with the

introduction of ever growing postal services. In the meantime standardisation of the form

and the style of business letters have made them more popular and acceptable by all. The

commercial correspondence has a language of its own which is markedly different from

personal letters. Day by day improvements are being made in the form and the style of

business letters making them more impressive, meaningful and compact. A large number of

books on the subject are available in the market in the aid of the business world. Invention

of different machines for the purpose makes business letters fast in production and in
distribution.

A business letter is different from other letters in contents, features and layout. In business
letters, certain features stand out prominently to make these letters different. One should
take care to see that such features are brought out in business letters. The following are the
features of business letters :-

1. Correctness of Statement : It means that all facts, figures, dates, prices and other
such factors, stated should be correct. There should be no misrepresentation of
facts. The mistake relating to quotation orders, contracts, etc. Should be avoided. An
amount mentioned in the business letter should be written twice, once in figures
and then in words. The dates mentioned in the letter should also be correct.
2. Completeness : It means a letter should contain all that is necessary to inform the
receiver about the matter for which the letter is written. It may be possible that a
letter may be correct in statement, clear in meaning and short in form. But if it is
incomplete, it is lacking its purpose. Insufficient information on these essential
points may lead to delay in executing the order because the seller will have to write
back to the buyer to get the information missing.

3. Courtesy : It is required that all correspondence should be couched in sensitive,

respectful, reasonable, enlightened and gentlemanly terms. The success in any
business is to keep the dignity of the business. The word complaint should be
avoided as far as possible. It is not a good policy to find fault with the receiver of the
letter. Courtesy must be distinguished from humility. Excessive humility should be
avoided because it lowers the dignity by a correspondent. It may also defeat the
purpose by arousing suspicion in the mind of the receiver.

4. Clearness of Clarity : It means that the matter should be written in correct manner
so that the receiver understands the matter in the first reading itself. A
correspondent must thoroughly understand the matter and should have a good
power of expression. He should have no difficulty in arranging the ideas in a logical
and correct manner. Words and phrases with double meaning should be avoided at
all costs in a business letter. He should not have difficulty in using simple and clear
language to express his ideas in an easily understandable manner.

5. Conciseness (Briefness and Brevity) : A business letter should be as brief as

circumstances permit. Time is very precious. One should not however try to secure
brevity at the cost of completeness and clarity. Unnecessary repetition of sentences,
words, etc. Should be avoided because lengthy letters produce irritation to the
receiver.
6. Convincing Power : A business letter should be impressive, effective in its approach
and convincing. A correspondent who has knowledge of human nature, business
etiquette, manners should also have a good power of expression and ability to
convince. In these days of competition, a letter should not only be able to create a
demand but should also be able to satisfy a demand.

7. Cleanliness and Neatness : Papers of right size and quality should be chosen for
different purposes. In every step from the selection of the quality and size of paper,
folding of the letterhead in the proper manner to putting it inside the envelope of
proper size, enough care and caution is to be taken to make the letter neat clean and
attractive.
Q.3 How do we acquire good manners ?
Ans.3 "Manners are of more importance than laws." ~ Edmund Burke

Effective communication is a two-way process. It includes both ‘giving’ and ‘taking’. No

communication could be effective if it carries just one aspect. Don’t talk when listening is
more important. Don’t put people off by continuing talking about you and your
achievements. Never assume that others see what you see and they know and realize what
you know and realize, unless it is proved. Solutions mostly lie in asking and not in telling.
Learn to ask and learn more than you tell. Never repeat yourself unless asked by others.
Every time it loses interest of some more people. Never interrupt a speaker even if you have
already heard something unless he/she asks you. Learn to listen and you will develop more
friends than those who like to talk. Avoid saying anything that will not be acceptable to
others or will make other feel bad, as much as possible. Effective speaking skills and good
humour do wonders. However, you must understand that decent humour is different from
dirty jokes. In conversation, use positive statements and words. You do not have to fire
everything that comes to your mouth. Learn to ignore things. Learn to disagree without
being disagreeable. Never criticize, ridicule or blame people. If you must, find the right time
and opportunity. Do not be personal; criticize the behaviour not the person. Start a
conversation with the things you agree on before talking about the ones you do not.
Remember, everyone is hungry of praise and appreciation. Be humble and modest if you
want to be popular in society. A successful man is he who makes his listeners feel successful.
Never speak too fast or too loud. Pitch and tone of voice matters as much as the pace of
your voice does. Your language must be sweet and gentle.

Manners and Productivity

Employees who suffer for the bad manners of their coworkers become less engaged at
work, less passionate, and less likely to put extra energy into a project, Barbara Griffin, an
organizational psychologist with the University of Western Sydney, explains on HC Online.
When you're treated with disrespect by a colleague, you feel undervalued. This feeling can
translate into withdrawal from the company culture and a search for fulfillment elsewhere.
In contrast, good manners facilitate mutual respect and inspire confidence in employees.
The best teams are those where each member feels valuable and unique. Praise coworkers
for their ideas and contributions, and don't forget to thank them for helping you with your
own tasks.

Bad vs. Good Manners

Bad manners can take many forms, and a person who displays them may not realize she's
treating someone poorly. Interrupting a colleague, excluding someone from a group,
questioning the judgment or decisions of others, and withholding important information are
forms of bad manners. Good manners, on the hand, are habits you develop by tuning into
your colleague's feelings. Active listening, encouragement and consideration of colleagues'
ideas all facilitate goodwill between you and your coworkers. For example, greeting a
colleague in the morning, listening to a grievance, offering to bring back coffee from the
break room, or tidying up a messy shared office are examples of small actions that convey
respect.

Effects of Bad Habits

Common habits that annoy your coworkers can come off as bad manners. For example,
letting your phone ring loudly in the workplace might disturb a colleague's focus, or eating
garlic-heavy food in your cubicle might distract surrounding colleagues. To exhibit good
manners, put yourself in your coworkers' shoes. Do you repeatedly "pop in" on someone
while they're working? Do you frequently ask a coworker to bring you supplies, coffee or
other materials? Though you might not mean to demonstrate bad manners, your colleagues
may be negatively affected by some of your habits.

Beyond Good Manners

While showing up on time, staying tidy and listening carefully are basic good manners, go a
step further to show respect to coworkers. If a teammate does a superb job on a project,
leave a note on her desk congratulating her. Say "hello" to people who don't directly work
with you, such as custodians or maintenance workers. Small gestures like these help build a
sense of positivity in the workplace, and they make the environment more civil.

How to Deal with Mistreatment

Employ a few techniques for dealing with a colleague who has bad manners, but realize that
you have more control over how you handle the colleague than you have over your
colleague's decisions and attitude. Don't reciprocate the behavior or give the coworker "a
taste of her own medicine." More bad manners are not the answer and can lead to
aggression. If you can find an appropriate time and place, speak to the coworker
respectfully and explain how her behaviors affect you. If the behaviors have led you to feel
uninspired, insecure or unfulfilled at work, speak to a counselor or psychiatrist before these
problems spiral. Your main goal is to facilitate a good working environment for yourself and
those around you.

Q.4 Write short note on Eye Contact.

 Ans.4 Eye Contact is paramount importance in face-to-face communication. When we look
at somebody’s face we focus primarily on his eyes and try to understand what he means to
convey. The eyes, along with the eyebrows, eyelids and the size of pupils communicate our
deepest feelings. In different situations our eyes adopt different positions and shapes. That
is how we come to have fixed eyes, evasive eyes, eyes starting hard, ‘smiling’ eyes and so on
depending on our feelings and attitude. Eyelids raised and combined with dilated pupils tell
as that the person in surprised and frightened. On the other hand, eyebrows with upper and
lower eyelid closed and combined with constricted pupils convey feelings of anger or pain.
Eye movement also communicates in a significant way. A long fixed gaze shows our interest
in something or somebody. If the eye contact is brief, or we take our eyes off a person very
soon, it indicates nervousness or embarassement.

Have you ever realized how much one moment of locking eyes can mean? Try looking a
stranger in the eye or even someone you know pretty well. Eyes are one of the best
attributes of human expression because they can be direct and elusive, as well as show a
million different emotions in just one look. Even one glance can tell you a lot about a
person’s character, especially if a smile or smirk is thrown in.

One thing that shy people have as a disadvantage is that they have trouble holding eye
contact. It’s well known that in Western countries like the United States, giving those in
power eye contact is revered. However, in Eastern countries, eye contact to those in power
is viewed as rude and a sign of disrespect. It’s important to recognize these differences,
since eye contact can mean many different things depending on the setting and the people
locking eyes.

Importance of eye contact in business :-

1. Respect : As I said above, in Western countries like the United States, eye contact in order
to show and earn respect. From talking to your boss at work to thanking your grandmother
for a birthday gift, eye contact shows that you see the person as equal or someone you view
as important. Of course there are other ways to show respect, such as staying eye-level with
the person and positioning yourself as leaning into them when you’re talking, but eye
contact shows that you’re on the same page in the most straight-forward way. As they say,
“eyes are the window to the soul.” Sincerity can be felt through eye contact, therefore,
genuine respect will be received if you pay strong attention through your eyes.

2. Interest : If you like someone in any way, shape, or form, why not look them in the eye
when you’re talking to them? Looking down or away from them can come off as aloof,
especially if the person is telling you about something important or trying to get your
attention. In order to put the most effort into showing interest, look the person in the eye
and smile. This can be taken different ways depending on what you and the other person
are intending – interest could mean familial, friendship, a respectful authoritarian interest,
love interest, or even just a strong bond that you and the other person have. Eye contact
can say so much, yet leave so much to assumptions and analyzing body language.
3. Appreciation : You can convey appreciation quite easily with the eyes – just give a
meaningful look into their eyes while you’re thanking them and the other person is able to
recognize how you feel. Showing emotions like appreciation is quite important in terms of
friends and family members if they something nice or helpful for you, so eye contact is vital
in these situations. It’s a socially constructed way to keep up a positive image with people in
your life, yet also an extremely good way to show your thanks with sincerity.

4. Understanding : A locking of eyes can be all you need to have some understand
something you mean. If you’re trying to get a point across or just want some reassurance,
eye contact can be an important asset in communicating your thoughts. Eye contact is one
of the most intimate forms of communication because sight has the ability to pick up so
much that people convey. It’s possible to guess what someone’s thinking based on their
eyes and how they look at you. Eye contact, or lack thereof, is invaluable for learning to
trust someone and having that same respect given in return.

5. Eye contact can be the difference between seeming aloof and a new friendship : If
you’re giving someone eye contact, this could be the start of friendly, warm communication
with a new person. By keeping yourself open to locking eyes with a stranger, you’re inviting
them to look at you and perhaps start a conversation. You’re leaving yourself open to
people if you’re willing to make eye contact and keep up a friendly face. While there’s a
clear difference between good eye contact and glaring, it’s important that you know when
it’s appropriate to use either. Warm, friendly eyes could be the deciding factor in whether
you make a possible friend or scare someone away! it’s important to not let opportunities
where eye contact could help you to pass you by. Surprising things could happen if you just
open your eyes!

In general, eye contact is something people don’t think enough about. It’s important to
teach children from a young age to look people in the eye when they’re talking to them or
they could develop a habit of seeming aloof or disinterested in communicating with other
people. Locking eyes and knowing when to look away is a good people skill to possess. Use
your eyes to project a positive image and one look could be the catalyst for change in your
life.

Q.5 What do you understand by Summing up Presentation?

Ans.5 A summation or statement made for the purpose of reviewing the basic concepts or
principles of an argument, story, explanation, testimony, or the like, and usually presented
at the end. Summing up presentation can be well known with the following points :-

1. Prepare. Know your message and your medium : Decide the specific response you
want from your audience. Prepare thoroughly. Reduce your message to single, clear
paragraph. Rehearse important presentations.

2. Speak to the audience you have come to know : Learn all you can about your
audience. Meet and greet them beforehand. Tailor your presentation to their needs
 and listening style. Connect with them (Eye contact, friendliness, open posture, not
hiding behind a lectern, etc.). Remember, your audience almost always is invested in
you succeeding as their speaker. Speak to many individuals in the audience. Be
attuned to audience reaction and adjust as needed.

3. Know anxiety is a “tool” not a “threat” : Nervousness(even fear) before an audience

is natural. It can be disciplined (i.e. deep breaths, muscle relaxation, self-visualization
techniques, etc.). However, you need not fear or eradicate it. Experienced speakers
channel anxiety into energy that elevates their performance. Being well-prepared is
a confidence booster. Your audience understands and shares your anxiety about
public speaking. Visualize yourself succeeding.
4. Gain immediate attention and control : When introduced, immediately command
center stage. Don’t “chatter”. Craft and deliver an opening that grabs attention and
interest. Be as dynamic as you can.
5. Establish your credentials up front : Justify your “right” to be speaking(and listened
to). Demonstrate your credentials, confidence, and audience connection- expertise,
experience, integrity, insight, enthusiasm, commitment, or whatever justifies
demanding the audience’s time attention and belief.
6. Recognize the impact of delivery and visual props : Your delivery and the use of
visuals or other props affects the impact of your message. Effective delivery and
visual techniques (i.e. pauses, inflection, gestures, facial expressions, props,
overheads, written materials, etc.) pique interest sustain attention, highlight key
points, build confidence, and increase acceptance. Avoid visual and delivery aspects
that distract audiences.
7. Whenever possible,tell a story : People are used to hearing about the world through
storytelling. The most interesting stories are about real people. Honour and tell your
own stories. Common events illustrate important points. Even technical subjects can
be illustrated and humanized by stories. Stories need a point. Keep them short.
8. Be clear, concise, enthusiastic, and sincere : These are simple, meaningful qualities
audiences appreciate. We can all deliver them. Focus on that one paragraph that
clearly expresses your message. Make only a few key points. Be selective. Use non-
technical language. Your enthusiasm tells the audience that this talk is worth
listening to. Sincerity, when detected, is a powerful connection with an audience.
9. Close with a purpose : Here is your last chance to drive home your point and leave
the audience with a favourable lasting impression. Plan your closing and be brief and
to the point. Take the time to think how to make it memorable. Always exit with
style.
10. Develop your confidence as a speaker : This is easier than it seems. Be yourself.
Select topics you like and about which you are credible. Look for opportunities to
speak. Try some new techniques. Systematically learn from all your experiences.
NAME : Pankhuri Sharma

COURSE: MBA

SEMESTER: One

BOOK CODE : MBA-102

BOOK NAME : Organizational Behaviour

DATE OF SUBMISSION : 23-11-2017

Q.1 What do you feel is your greatest asset for an organisation ?

Ans.1 Humans are an organization's greatest assets; without them, everyday business
functions such as managing cash flow, making business transactions, communicating
through all forms of media, and dealing with customers could not be completed. Humans
and the potential they possess drive an organization. Today's organizations are continuously
changing. Organizational change impacts not only the business but also its employees. In
order to maximize organizational effectiveness, human potential—individuals' capabilities,
time, and talents—must be managed. Human resource management works to ensure that
employees are able to meet the organization's goals.

Human resource management is responsible for how people are treated in organizations. It
is responsible for bringing people into the organisation, helping them perform their work,
compensating them for their labors, and solving problems that arise .There are seven
management functions of a human resources (HR) department that will be specifically
addressed: staffing, performance appraisals, compensation and benefits, training and
development, employee and labor relations, safety and health, and human resource
research.
Generally, in small organizations—those with fewer than a hundred employees—there may
not be an HR department, and so a line manager will be responsible for the functions of
HRM. In large organizations—those with a hundred employees or more—a human resource
manager will coordinate the HRM duties and report directly to the chief executive officer
(CEO). HRM staff in larger organizations may include human resource generalists and human
resource specialists. As the name implies, an HR generalist is routinely involved with all
seven HRM functions, while the HR specialist focuses attention on only one of the seven
responsibilities.
Prior to discussing the seven functions, it is necessary to understand the job analysis. An
essential component of any HR unit, no matter the size, is the job analysis, which is
completed to determine activities, skills, and knowledge required of an employee for a
specific job.

1. Staffing : Both the job description and the job specification are useful tools for the
staffing process, the first of the seven HR functions to be discussed. Someone (e.g., a
department manager) or some event (e.g., an employee's leaving) within the
organization usually determines a need to hire a new employee. In large
organizations, an employee requisition must be submitted to the HR department
that specifies the job title, the department, and the date the employee is needed.
From there, the job description can be referenced for specific job related
qualifications to provide more detail when advertising the position—either
internally, externally, or both.

2. Performance Appraisals : Once a talented individual is brought into an organization,

another function of HRM comes into play—creating an environment that will
motivate and reward exemplary performance. One way to assess performance is
through a formal review on a periodic basis, generally annually, known as a
performance appraisal or performance evaluation. Because line managers are in
daily contact with the employees and can best measure performance, they are
usually the ones who conduct the appraisals. Other evaluators of the employee's
performance can include subordinates, peers, group, and self, or a combination of
one or more .

3. Compensation and Benefits : Compensation (payment in the form of hourly wages

or annual salaries) and benefits (insurance, pensions, vacation, modified workweek,
sick days, stock options, etc.) can be a catch-22 because an employee's performance
can be influenced by compensation and benefits, and vice versa. In the ideal
situation, employees feel they are paid what they are worth, are rewarded with
sufficient benefits, and receive some intrinsic satisfaction (good work environment,
interesting work, etc.). Compensation should be legal and ethical, adequate,
motivating, fair and equitable, cost-effective, and able to provide employment
security.

4. Training and Development : Performance appraisals not only assist in determining

compensation and benefits, but they are also instrumental in identifying ways to
help individuals improve their current positions and prepare for future
opportunities. As the structure of organizations continues to change—through
downsizing or expansion—the need for training and development programs
continues to grow. Improving or obtaining new skills is part of another area of HRM,
known as training and development.
"Training focuses on learning the skills, knowledge, and attitudes required to initially
perform a job or task or to improve upon the performance of a current job or task, while
development activities are not job related, but concentrate on broadening the employee's
horizons". Education, which focuses on learning new skills, knowledge, and attitudes to be
used in future work, also deserves mention.

Research is part of all the other six functions of human resource management. With
the number of organizations participating in some form of international business, the need
for HRM research will only continue to grow. Therefore, it is important for human resource
professionals to be up to date on the latest trends in staffing, performance appraisals,
compensation and benefits, training and development, employee and labor relations, and
safety and health issues— both in the United States and in the global market.

One professional organization that provides statistics to human resource managers is

the Society for Human Resource Management (SHRM), the largest professional organization
for human resource management professionals. Much of the research conducted within
organizations is sent to SHRM to be used for compiling international statistics.

Q.2 What might be the reasons behind employee dissatisfaction ?

Ans.2 Every human being has satisfaction and dissatisfaction for certain things. So,
employees will have own satisfaction and dissatisfaction for the management team in the
company. Employee satisfactions define as how happy for workers are with their job and
working environment and dissatisfaction mean the employees not happy with the
management or working and environment. Employee is very important for the organization.
It is because if without labour, the production line cannot function well and it will lead to
loss for the organization.

One in every ten people suffers from employee dissatisfaction. It is very common nowadays
as people would consider themselves lucky to be earning an honest living amid the rush of
technology and population. This is a problem that cannot be treated based on any rule
book. But if not treated on time, it will give you one hell of a time. People with workplace
dissatisfaction tend to bring their problems home. This is normally because they are having
a bad time managing the work that they are least interested in. The following article will
give you the details on employee dissatisfaction and what to expect of it.

Employee dissatisfaction can be of many types. But it is basically related to not liking what
you have to do to get paid. Sometimes you make a hasty decision to take a job which was
not even your first choice. We at times are forced to do so, to take care of our family. We
know how important the income is. Such a compromise has its price. You can spend
months, not years and definitely not the rest of your life faking to be happy at work. Sooner
or later you have to deal with your dissatisfaction. But by that time you get so used to
overlooking your needs for your beloved family, that you forget what is important for you.

Sometimes dissatisfaction with work may arise from inappropriate peers. It is all
about interpersonal relationship at work. You have to start rubbing shoulders before you
even get to your seat. The need for communication gets higher when you are at work
dealing with clients and colleagues. But just like school, things can go awfully wrong with
your fellow workers at work. It is very natural for you to not like someone and others
disliking you. But in the long run, this can give rise to big problems like employee
dissatisfaction. Having friends at work makes your day more enjoyable by leaps and bounds.

“The macroeconomic environment has manifested in the policies of companies. The

decrease in headcount means, in some cases, one person has to do the work of two.
That’s caused some dissatisfaction,” said Mark Hall, Vice President of Kelly Services
Singapore.
According to the statement made by Hall, a large number of employees are dissatisfied
simply because they are being overworked. As companies try to cut costs and reduce
overhead, they may lower their workforce, forcing the remaining employees to pick up the
extra work. Nine out ten times, the remaining employees who are doing the work of two or
more people are getting paid the same amount, so there’s really no benefit in it for them.

Stress is another major factor of employee dissatisfaction. Employees want a relaxing, easy-
going environment to perform their professional responsibilities. If this environment is filled
with negativity and stress, they’ll likely feel a general sense of dissatisfaction on the job. It’s
nearly impossible to create a conflict-free workplace, but companies can eliminate
unnecessary causes of stress to improve workers’ disposition and attitude.

Reasons to employee dissatisfaction are :-

1. Salary : The information giving by the IT consultant, the salary giving by the
company is not reach for his expectation. It is because he needs to cover his petrol
fees and the company office is far away from his house. So it means that, he needs
to drive all the way from Kulai to Skudai to work every day and the company didn't
give the subsidy for his petrol fees.
The opinion of our group is salary must be given depends on the requirement of the
employee like depend on their capacity level or academic level. For example, company can
set their introductory salary for the new employee and depend on their level. Moreover, the
transport fees also should be given by the company to fulfill the employee's satisfaction
then only the turnover rate in the company will become lower.

2. Stress : According information giving by the consultant, the SPK Company is setting
up franchise business. In year 2010, one new outlet has been opened in Kulai and it
name as V-STAT stationary retailer shop. At the time, before open the new shop, the
consultant has to rush up his work to inspect overall process of the new shop. For
example, he has to inspect the decorate process; set up a computer system with can
link to headquarter and recruit new employee. During the period, he was felt
 stressful to all these work, because he only was an IT consultant and the work giving
by the top are too much. Those work given by the superior let him felt stressful and
unsatisfied.
Stress is invisible pressure, some of company just wants to achieve the goal set and never
concern for their employee by giving more tasks and the task given was out of range.
Therefore, the employees will be in stress situation and the work done become lack of
quality. So, superior must given task to an employee according to their ability then only the
dissatisfaction of employee will not happen.

3. Poor working environment condition : The information given by the IT consultant,

sometimes when he working in the office, he does not know what was happened
outside, overwhelmingly more important, sometime he cannot distinguish night or
day. It was because the working environment does not have window. Besides, the
working area was also too narrow and the air conditioning was also not enough in
the office.
The observation of our group the poor working environment condition was an unhealthy
part. It is because the working environment condition leads to employees feel the work was
rough boring and doing aimless work.

4. Location : The IT consultant provided the information that the location also will
cause dissatisfaction to an employee. It is because the IT consultant lives in Kulai and
every day need to drive car to his work place. Some more, he also had to fetch one
of the worker of the company to work, it become a responsible for him. For example,
sometimes he has urgent work to do; he had to arrange the transport for the
worker, sometime he asks his friend to help.
On our group opinion, location can cause dissatisfaction of an employee. It is because the
location was causes some cases. For example, the IT consultant has to wake up early every
morning in order to catch to work. Moreover, the transportation also was a reason.

5. Too much overtime and working hour : Based on the information given by the IT
consultant, too much overtime and working hour given by the company. Normally
the working hour for him is 8.30a.m. Until 6.00p.m. But because of his superior want
to get more business that is student's business, his always had to do overtime until
7.00p.m it is because student back home from school on 6.45p.m. So, by this reason
lead him to feel dissatisfaction.
The opinion of our group, too much overtime will lead to dissatisfaction for an employee,
even though the company will pay extra salary, but money is not everything for human
being. For example, the relationship of family cannot measure by money and it is important
for every human being.
In conclusion, satisfaction and dissatisfaction of employee is an important part to determine
success of the company. If a company within high turnover rate, the employee in the
company might not be able to perform well it is because lack of trust and understanding of
each other by contraries which is low turnover rate, the company can more easily achieve
the goal. So every company or organization must try to meet the satisfaction of every
employee in order to get better work.

Q.3 Explain the features that determine the nature of management.

Ans.3 According to Lawrence Appley :
“ Management consists in guiding human and physical resources into a dynamic, hard
hitting organization unit that attains its objectives to the satisfaction of those served and
with a high degree of morale and sense of attainment on the part of those rendering the
service”.
It is a distinct process consisting of planning, organizing, activating and controlling
performed to determine and accomplish objectives with the use of human beings and other
resources.
The term ‘management’ is used in various senses. Some people consider it an activity, some
treat it as a group, some call it a discipline while others look it as a process.
Traditionally, the term “management” refers to the activities involved in the four general
functions: planning, organizing, leading, and coordinating of resources. The four functions
recur throughout the organization and are highly integrated. Emerging trends in
management include assertions that leading is different than managing, and that the nature
of how the four functions are carried out must change to accommodate a “new paradigm”
in management.
Management is a practice of utilizing all available resources to obtain a desired result.
Management is necessary because “a desired result must be established”, Someone must
be delegated, or assume the authority, to obtain, organize, guide, and direct those
resources toward the desired result.
There are various aspects of nature of management and these can be analysed as Science an
Art.
1. Management as a Science
Science is a systematized body of knowledge pertaining to a specific field of study and
contains generalisations that explain a phenomenon. It establishes the cause and effect
relationship between two or more factors that ascertain the underlying principles governing
the relationship. These principles are developed through the scientific methods of operation
of events, and verification though testing. The principles are absolute truth having universal
application.
Management has a systematized body of knowledge. It makes use of observation and
experience. Principles of management are based on research and experience. These
principles are applicable in most situations. Management can be called a science because it
contains all characteristics of science.
2. Management as a art
Art is the bringing about of desired results through the application of skills. It concerned
with the application of knowledge and skills. Management is one of the most creative art as
it requires a vast knowledge and certain innovating, initiating, implementing and integrating
skills in relation to goals, resources, techniques and results. As an art, management calls for
a corpus of abilities, intuition and judgement and a continuous practice of management
theories and principles.

Q.4 What is the difference between leader and a manager ?

Ans.4 Leadership is a skill and the person who possess this ability is known as a LEADER.
On the other hand, Management is a discipline, and the practitioner of this discipline is
known as the MANAGER.

Leader and manager have a great role to play in any organization, in the sense that a leader
is the one who inspires, encourages and influence his men, to work willingly, in the
attainment of the organization’s objectives. On the other hand, a manager is an important
link between the firm and its stakeholders, i.e. employees, customers, suppliers,
shareholders, government, society, and so forth. He is the one who performs basic
managerial functions.

LEADER

A leader is a person who influences his followers to achieve a specified goal. He is a man
with a vision and inspires his followers in such a way that it becomes their vision. He helps
them in making the strategy to achieve the goal and possesses a good foresightedness along
with the other qualities like- motivating the subordinates, creating teams, innovation,
developing trust among the stakeholders, etc.

A leader is required at all levels of the organization which acts as a representative of the
organization. He encourages the whole team to work together and supports them in
accomplishing their tasks, as a guide or a philosopher.

MANAGER

A manager is a person who manages the organization such that he is responsible for
planning, organization, direction, coordination and control. They are the ones who get their
work done by the employees through several ways and has the authority to hire or fire the
employees. There are various types of managers present in an organization such as top level
managers, functional managers, project manager, general manager.
The role of these managers depends on their nature of work like top level managers are
held responsible for the vision and mission of the organization, functional managers are
responsible for different areas of their work like marketing, sales, accounting, etc. Project
managers take the responsibility of accomplishing a certain project, and the role of a
general manager is vivid i.e. the various activities performed in the business are managed by
him.

Difference between leader and a manager on the basis are as follows :-

Basis of Comparison Leader Manager

Meaning A leader is a person who A manager is a person who

influences his subordinates manages the organisation
to achieve a specified goal. and is responsible for
planning, direction,
coordination and control.

Approach Sets direction Plans details

Attribute Foresightedness Mind

Subordinate Followers Employees

Style Transformational Transactional

Decision Facilitates decision Makes decision

Aim Growth and development Attainment of the required

results
Focus People Process and procedure

Risk Leader minimizes risks Manager takes risks

Change Leaders promotes changes Managers react to change

Conflict Uses conflicts as an asset Avoid conflict

People Aligns people Organizes people

Q.5 What do you mean by TA ? Explain the theory.

Ans.5 The Transactional Analysis refers to the psychoanalytic process wherein the
interpersonal behaviors are studied. In other words, a social psychological model that talks
about the personal growth and personal change, i.e., identifying the ego states of each
individual to understand their behaviors and altering them to solve the emotional problems.

This model was originally developed by Dr Eric Berne, who during his observation found that
his patients behaved in a way as if several different people were inside them. This forced
him to study the personality and dynamics of self and its relationship with others which
helped in determining the kinds of behaviors that an individual shows in different real time
situations.

Now, this study has become a well-established approach and is being widely used in several
fields such as psychotherapy, counseling, education, organizational development, etc. The
transactional analysis gives birth to several models that help in explaining the relationship
formed between the individuals as a result of their interactions.

Transactional Analysis has had a tremendous impact on my life. It’s changed the way I think
about who I am and how I relate to others. Over the next few weeks I intend to explore this
theory and how we can all use it to change our lives for the better. Eric Berne, the
originator of TA, it must be “understandable to an 8 year-old child, a mid-west farmer, and
an M.I.T. professor.”

TA has grown a lot since Berne founded it but I am going to start off by looking at the roots
of his theory. In later posts I will discuss each area further and will keep it simple here.
Berne’s original theory started with the core pillars of ego states, transactional analysis
proper, strokes, time structuring and games, and script.

1. Ego States : Berne stated that an ego state is a way of us experiencing the
world. It’s a way of understanding how we relate to ourselves and others.
There are three ego states, Parent, Adult and Child. When I write about an
 ego state I will capitalise the word, when talking about a real adult, child or
parent I will use lower case. Our thinking, feeling and behaviour when we are
in each ego state will be consistent.

2. Strokes : A stroke is a “unit of recognition”. Berne said that we are all

desperately seeking strokes from others and a lot of what we do is in order to
be stroked. A stroke could be a nod of the head, a hand shake, a “hello” or a
“get stuffed”. All of these acknowledge that the other person exists.

There are different ways of getting strokes. Strokes can be positive (“hello”)
or negative (“get stuffed”), conditional (“when you buy me presents I think you’re so kind”)
or unconditional (“you’re stupid”). The only thing worse than a negative stroke is no stroke
at all – we all have a desperate need to be seen by others.

3. Time Structuring : Berne said that we all hate to be bored and desire strokes so
much that we have a psychological hunger for structuring our time. Although we
desire intimacy we are scared of the vulnerability it creates for us.

4. Script : Script is a central part of Transactional analysis theory. Script can be seen as
a well defined course of action that we decide on as a child. The theory states that
we experience the world and make decisions about how we need to be in order to
survive in it. We can carry on with decisions throughout our life even though we
made them at an early age. An example of this might be the decision made by lots
of boys early on in life that it’s not safe to cry and show emotions. This is reinforced
by parental figures and other caregivers. As a result many men find it difficult to
connect with their emotions as adults.

A central belief of transactional analysis is that we made the decision in the first place so we
have the power to change it. There is always hope that we can do things differently once
our script is brought into awareness.
NAME : Pankhuri Sharma

COURSE : MBA

SEMESTER : One

BOOK CODE : MBA-103

BOOK NAME : Human Resource Management & Development

DATE OF SUBMISSION : 23-11-2017

Q.1 As an HR manager, what do you suggest as the potential benefits of job

rotation.
Ans.1 Job rotation is considered as an effective tool for successful implementation of HR
strategy. It is about settling employees at the right place where they can deliver the
maximum results. In today’s highly competitive world, this can be proved as the best
strategy to find the immediate replacement of a high-worth employee from within the
organization. Finding the most suitable people and shifting them to take on the
responsibilities of a higher level is a tough task. Job rotation helps HR managers determine
who can be replaced by whom and create a suitable and beneficial fit. A properly planned
and carried job rotation process plays an essential role in strengthening the position of an
organization and helps it deal with uncertain and tentative outer environment.
Benefits of Job Rotation are :-
1. Helps Managers Explore the Hidden Talent : Job Rotation is designed to expose
employees to a wider range of operations in order to assist managers in exploring
their hidden talent. In the process, they are moved through a variety of assignments
so that they can gain awareness about the actual working style of the organization
 and understand the problems that crop up at every stage. Through this process,
managers identify what a particular employee is good at and accordingly he or she is
assigned a specific task.
2. Helps Individuals Explore Their Interests : Sometimes, employees are not aware of
what would like to do until they have their hands on some specific job. If their job is
rotated or they are exposed to different operations, they can identify what they are
good at and what they enjoy doing. They get a chance to explore their interests and
hidden potential.
3. Identifies Knowledge, Skills and Attitudes: Job Rotation helps managers as well as
individuals identify their KSA (Knowledge, Skills and Attitudes). It can be used in
determining who needs to improve or upgrade his or skills in order to perform
better. This helps in analyzing training and development needs of employees so that
they can produce more output.
4. Motivates Employees to Deal with New Challenges : When employees are exposed
to different jobs or assigned new tasks, they try to give their best while effectively
dealing with the challenges coming their way. It encourages them to perform better
at every stage and prove that they are no less than others. This gives rise to a healthy
competition within the organization where everyone wants to perform better than
others.
5. Increases Satisfaction and Decreases Attrition Rate: Exposing employees to
different tasks and functions increase their satisfaction level. Job variation reduces
the boredom of doing same task everyday. Moreover, it decreases attrition rate of
the organization. Employees develop a sense of belongingness towards the
organization and stick to it till long.
6. Helps Align Competencies with Requirements : Alignment of competencies with
requirements means directing the resources when and where they are required. It
assesses the employees and places them at a place where their skills, competencies
and caliber are used to the highest possible extent.

Q.2 Why is HRD needed in modern organizations ?

Ans.2 Human resources development (HRD) refers to the vast field of training and
development provided by organizations to increase the knowledge, skills, education, and
abilities of their employees. In many organizations, the human resources development
process begins upon the hiring of a new employee and continues throughout that
employee's tenure with the organization.
Many employees come into an organization with only a basic level of skills and experience
and must receive training in order to do their jobs effectively. Others may already have the
necessary skills to do the job, but don't have knowledge related to that particular
organization. HR development is designed to give employees the information they need to
adapt to that organization's culture and to do their jobs effectively.
Human resources development can be viewed, in some ways, in the same manner that a
coach views his athletic team. While a coach may recruit players who already have some
skill and ability, the point of continued practice is to strengthen those skills and abilities and
make even better athletes.
HR development has the same goal: to make better employees. The purpose of HR
development is to provide the 'coaching' needed to strengthen and grow the knowledge,
skills, and abilities that an employee already has. The goal of development and training is to
make employees even better at what they do.
Human resource development (HRD) is a part of human resource management. It deals with
the all round development of an employee within an organisation, his career development,
training, counselling, updating him with the latest technology, helping him explore his
potential and develop his skills, which would prove beneficial to both the employee and the
organisation in achieving the organisation goals. It also means allocation of resources for the
development of the employee. The dynamic environment in which an organisation functions
demands regular updating of job requirements. This is necessary to ensure a continuous
flow of qualified persons for the changed job.

Need of Human Resource Development :-

1. Competent employees : HRD helps in making people aware of the skills required for
job performance. There is greater clarity of work norms and standards. This results in
a more competent work force.
2. Role clarity : HRD encourages communication between work-teams. People not only
understand their roles better but also become aware of the expectations of the
other members of the team.
3. Committed work force : People become more committed to the jobs because
rewards are administered more objectively through the HRD process.
4. Greater trust and respect : By encouraging communication, HRD helps in developing
greater trust and respect for each other. Employees become more open and
authentic and new values can be generated easily.
5. Synergy effect : Effective communication, participate management and stress on
teamwork produce synergy effect within the organization .
6. Breaks resistance to change : HRD makes people better equipped with problem-
solving capabilities. This not only makes them proactive but also brings readiness on
their part to accept change.
7. Facilitates HRP : HRD generates a lot of useful and objective data on employees that
facilitates human resource planning.

Q.3Why is it important to plan your staffing before you start to hire people ?
Ans.3 Think about the many places where staffing decisions come into play. In an average
company, you have several managers at many levels who are all thinking about whether
they have too much (or too little) work for their staff, what training they should provide,
and whether they should hire employees or contractors. These can be project managers and
team leaders, department managers, directors, or the CIO.

Hiring decisions are more complex than they used to be. Not only do you have to think
about whether you want an employee or a contractor, but you also need to think about
offshore options, diversity, and legal obligations. And once the person is brought in, you
need to think about skills development, morale, retention, and the work environment.

Companies that have the most difficulty in hiring are those that make decisions on a case-
by-case basis. These companies make staffing decisions based on what makes sense for a
particular situation or team. But there's a difference between what makes the most sense
for an individual manager and what makes the most sense for the entire organization. For
instance, a manager may need someone to fill an opening. The manager may think that a
contract resource will be required, since the need may not be long-term. That may be the
best decision for the manager, but the company may have projects ending in other areas
and people who need to be reassigned. So, from a company perspective, perhaps the best
course of action would be to look for an internal transfer, even if the person is not a 100-
percent, skill-set match.
If everyone makes staff-related decisions based on their individual needs, you'll typically end
up being inefficient from an organizational perspective. To avoid this, your company should
develop a staffing strategy. A staffing strategy is established at an organizational level. If you
asked to see one, you might actually find that your company has a formal document.
However, as likely as not, you'll find that this information is not in a stand-alone document,
but several components may exist in various policies and memos.

In general, your staffing strategy provides overall guidance on how you deal with staff. This
includes how you identify new staff, the types of people you want on your staff, how you'll
develop them, and how you'll retain them. The strategy must reflect current realities, but
also set the direction for where you want to be in three to five years. To make it real, it must
be followed and executed on a daily basis. For instance, if you have a strategy to allow
employees to apply for openings first, you can't allow their current managers to block all
internal transfers.
Hiring the right people and training them properly are the most effective ways to ensure the
success of your organization. In this section, you will learn how to develop guidelines for the
hiring and training process, while later sections in this chapter discuss how to use those
guidelines to design a position and hire and train the best person to fill it.

In developing guidelines of any sort for an organization, the first question that needs to be
asked is who will work on them. As with so much else, the answer should reflect how the
organization sees itself, although it will also depend on its stage of life. (Hiring staff for the
first time, at the startup of an organization, is somewhat different from filling ongoing
positions that have gone vacant, or hiring for a new position in an established organization.)
In practice, an activity like developing guidelines usually isn't accomplished by committee.
One person might take on the task of writing a first draft, and then a number of others will
discuss it and make suggestions, until there's a version that everyone's happy with. The real
question here is how inclusive you want to be about who gets to make suggestions.
There also may be external factors that affect what the organization can do. Is there a union
involved, for instance, with its own guidelines? You may be, or may choose to be, subject to
Affirmative Action/Equal Opportunity guidelines, or to the guidelines of the Americans with
Disabilities Act. Sometimes a funder, particularly one distributing public money, will dictate
some hiring conditions, or even push for hiring a particular person. You have to take all of
this into account as you 're making decisions.

Q.4 Why do you think some companies do not follow the four training steps ?
What are the advantages of doing so ?

Ans.4 Training is one of the most profitable investments an organization can make. No
matter what business or industry you are in the steps for an effective training process are
the same and may be adapted anywhere.

If you have ever thought about developing a training program within your organization
consider the following four basic training steps. You will find that all four of these steps are
mutually necessary for any training program to be effective and efficient.

STEP 1: ESTABLISHING A NEEDS ANALYSIS.

This step identifies activities to justify an investment for training. The techniques necessary
for the data collection are surveys, observations, interviews, and customer comment cards.
Several examples of an analysis outlining specific training needs are customer
dissatisfaction, low morale, low productivity, and high turnover.

By determining training needs, an organization can decide what specific knowledge, skills,
and attitudes are needed to improve the employee’s performance in accordance with the
company’s standards.

The needs analysis is the starting point for all training. The primary objective of all training is
to improve individual and organizational performance. Establishing a needs analysis is, and
should always be the first step of the training process.

STEP 2: DEVELOPING TRAINING PROGRAMS AND MANUALS

This step establishes the development of current job descriptions and standards and
procedures. Job descriptions should be clear and concise and may serve as a major training
tool for the identification of guidelines. Once the job description is completed, a complete
list of standards and procedures should be established from each responsibility outlined in
the job description. This will standardize the necessary guidelines for any future training.

STEP 3: DELIVER THE TRAINING PROGRAM

This step is responsible for the instruction and delivery of the training program. Once you
have designated your trainers, the training technique must be decided. One-on-one training,
on-the-job training, group training, seminars, and workshops are the most popular methods.

Before presenting a training session, make sure you have a thorough understanding of the
following characteristics of an effective trainer.

STEP 4: EVALUATE THE TRAINING PROGRAM

This step will determine how effective and profitable your training program has been.
Methods for evaluation are pre-and post- surveys of customer comments cards, the
establishment of a cost/benefit analysis outlining your expenses and returns, and an
increase in customer satisfaction and profits.The reason for an evaluation system is simple.
The evaluation of training programs are without a doubt the most important step in the
training process. It is this step that will indicate the effectiveness of both the training as well
as the trainer.

Q.5 Define the advantages and disadvantages of each type of performance

evaluation source.

Ans.5 A performance evaluation system is a systematic way to examine how well an

employee is performing in his or her job. If you notice, the word systematic implies the
performance evaluation process should be a planned system that allows feedback to be
given in a formal—as opposed to informal—sense. Performance evaluations can also be
called performance appraisals, performance assessments, or employee appraisals.

There are four reasons why a systematic performance evaluation system should be
implemented. First, the evaluation process should encourage positive performance and
behavior. Second, it is a way to satisfy employee curiosity as to how well they are
performing in their job. It can also be used as a tool to develop employees. Lastly, it can
provide a basis for pay raises, promotions, and legal disciplinary actions.

Advantages and Disadvantages of Each Source for Performance Evaluations :-

1. Manager/Supervisor
Advantages :

 Usually has extensive knowledge of the employee’s performance and abilities.

 Favoritism

Disadvantages :

 Bias.

2. Self

Advantages :

 Self-analysis can help with employee growth.

Disadvantages :

 In the employee’s interest to inflate his or her own ratings.

3. Peer

Advantages :

 Works well when the supervisor doesn’t always directly observe the employee.
 Can bring a different perspective, since peers know the job well.
 If confidential, may create mistrust within the organization.

Disadvantages :

 Relationships can create bias in the review.

 If evaluations are tied to pay, this can put both the employee and the peer in an
awkward situation.
 4. Customer/Client

Advantages :

 Customers often have the best view of employee behavior.

 Can enhance long-term relationships with the customer by asking for feedback.

Disadvantages :

 Can be expensive to obtain this feedback.

 Possible bias.

5. Subordinate

Advantages :

 Data garnered can include how well the manager treats employees.
 Can determine if employees feel there is favoritism within their department.
 Subordinates may not understand the “big picture” and rate low as a result.
 Can be used as a self-development tool for managers.
 If nothing changes despite the evaluation, could create motivational issues among
employees.

Disadvantages :

 Possible retaliation if results are not favorable.

 Rating inflation.
 If confidential, may create mistrust within the organization.
NAME : Pankhuri Sharma

COURSE : MBA

SEMESTER : One

BOOK CODE : MBA-104

BOOK NAME : Marketing Management

DATE OF SUBMISSION : 23-11-2017

Q.1 What are the advantages and disadvantages of Global Marketing ?

Ans.1 Global marketing is defined as the process of adjusting the marketing strategies of
your company to adapt to the conditions of other countries. Of course, global marketing is
more than selling your product or service globally. It is the full process of planning, creating,
positioning, and promoting your products in a global market.

Big businesses usually have offices abroad for countries they market to. Currently, with the
proliferation of the internet, even small businesses can reach consumers anywhere in the
world. If a business chooses not to extend internationally, it can face domestic competition
from international companies that are extending their international presence. The presence
of this competition almost makes it a requirement for many businesses to have an
international presence.

Companies evolving towards global marketing are actually quite gradual. The first stage has
the company concentrating on the domestic side, with its activities focused on their home
market. Stage two has the company still focusing domestically but has exports. By stage
three, the company has realized that they need to adapt their marketing geared towards
overseas. The concentration moves from multinational. Thus, adaption has become crucial.
The fourth and last stage has the company creating value when it extends its programs and
products to serve worldwide markets. Definitely, there are no definite time periods to this
evolution process.

Advantages of Global Marketing :-

1. You can reach more customers : It’s a simple practice of supply and demand. If you
are able to connect with customers globally instead of locally, then you are able to
reach more people. As long as you have some level of demand for what you have,
global marketing can allow you to target communities anywhere in the world so that
you can make a sell.
2. It can be the inspiration of new ideas : When you make a push for global marketing,
you’re exposing yourself to new ideas because you are involved in new cultures. This
can inspire innovation that can take your business to new levels while you’re able to
reach out with your existing portfolio to generate revenues. It really can be a
win/win situation for everyone involved.
3. It increases the visibility of your brand : Global marketing is all about branding.
When you are able to reach new markets with your brand, then your visibility
increases along with it. This makes it a lot easier to take advantage of future
opportunities because you’ll have established a cornerstone within global markets.
Each new campaign makes it easier to expand upon these opportunities as well.
4. There’s the potential for higher revenues : If you have a 2% conversion rate and an
average sale of $10, then you’ll get two customers out of every 100 prospects with
revenues of $20. If you target local customers and reach 1,000 people, that’s
potential revenues of $200. If you can target global customers at the level of 1
million people… let’s just say the revenue math gets a whole lot better, doesn’t it?
5. Believe it or not, global marketing reduces your competition : It’s all about
reputation. Customers want the best possible product with the best value
proposition from the brand with the most expertise. These three factors will trump
local loyalty and transfer the customer to your business. Now if the local business
can match just one of those three factors, your brand could lose out to local
business, so clear communication within your global marketing strategy is absolutely
essential for ongoing success.
 6. It offers greater stability to a business : Trends in every industry are constantly
evolving. What was popular 5 years ago might not be popular today, but every local
market is unique. Today’s treasure in North America might be tomorrow’s treasure
in Asia, allowing you to create new products for the evolving market while
maintaining the value proposition of the older product for the new market .

Disadvantages of Global Marketing :-

1. It can be difficult to determine if there is an available market : Different

cultures and local societies have different needs which need to be met. Although
many products perform well globally if they are able to perform well locally, that
isn’t always the case for niche products.

2. There will always be risk : The costs of marketing globally are dramatically
reduced from what they once were, but they still exist. There is also a time
investment involved with marketing that keeps getting larger as you target more
potential customers. The risk here is that you can make these time and money
investments and wind up not receiving anything in return.

3. There may be different laws and standards which need to be met : Different
countries have different product or service requirements that businesses must
meet in order to finalize a sale. Some markets can run up against some very stiff
regulations that all but prevent an international business presence. Without due
diligence being performed by a business owner before attempting global
marketing, unintentionally violating these laws or regulations could bring
potentially severe consequences.

4. It can create numerous barriers to entry : From cultural customs to language

differences, there are a number of barriers to entry that must be addressed
when creating a global marketing campaign. Programs like Google Translate are
helping to reduce the number of barriers which exist, but there will always be
obstacles standing in the way, especially for small-to-medium-sized businesses.

5. International politics and market conditions can eliminate profits : The Brexit
vote in 2016 proved that billions of dollars in wealth can be eliminated overnight.
Political changes and changing market conditions can cause an immediate
elimination of profits, especially for small businesses that are not well diversified.
 Even something as simple as a strengthening of a currency can make it difficult
for a global marketing effort to succeed.

6. It creates a need for international product delivery : When a business goes

global, then it creates a need for international shipping structures. Although you
can mail virtually anything to anyone in the world today, there are taxes and
tariffs which must be considered. These may apply to the business or the
business customer. There are also customs delays, payment guarantees, and
other processes that can break down and cause a delay in delivery, canceled
orders, and lost revenues.

Q.2 What is Sale Promotion ? Explain the reasons for growth of sales
promotion ?

Ans.2 Sales Promotion refers to short-term incentives offered to stimulate on the spot
buying. It consists of all promotional activities other than advertising, personal selling and
publicity.

According to American Marketing Association, “ Sales Promotion includes those marketing

activities other than personal selling, advertising and publicity, that stimulate consumer
purchasing and dealer effectiveness such as displays, shows and exhibitions,
demonstrations and various non-recurring selling efforts not in the ordinary routine”.

Sales Promotion is different from both advertising and salesmanship. Sales Promotion
involves non-recurring and non-routine activities whereas advertising and personal selling
consists of recurring and routine operations. Sales promotion supplements and reinforces
advertising and salesmanship and serves as the bridge between them. The need for
promotion arises from the intensity of competition. Sellers must somehow attract
customers' attention.

Precisely because sales promotions must provide incentives—whether to the distribution

channel, the company's own sales people, or to the consumer—they cost money by
definition and must produce additional volume to pay for the expenditures. A grand sale
that clears out the inventory but, with added advertising costs factored in, reduces margin
too is a failure. Sales promotions therefore must be carefully calibrated to achieve the
purpose. Holding promotions too frequently will habituate customers to buy only when
promotions are in effect. Avoiding promotions altogether will let competitors draw
customers away.
There are several reasons for growth of sales promotion :-

1. Increasing Competition : The air of change is gaining momentum after the

introduction of economic liberalization. Due to increase in competition,
companies are finding it increasingly difficult to compete on quality. They are
therefore resorting to more innovative methods of sales promotion. In order to
have a competitive advantage over its competitors like Levis, Pepe, Killer and
others, Spykar Jeans, once a year has a grand sale of upto 50%.
2. Customers have become more Price sensitive : This increased price sensitivity is
a direct result of rampant inflation. Economic recession is likely to fuel this trend
further, as consumers and dealers become more sensitive towards prices. If the
customers get branded jeans at half the actual price, then they are definitely
going to make huge purchases of Spykar Jeans because they want value for their
money, as they are price sensitive.
3. Products have become more standardized : In many product categories, there is
a proliferation of brands; many of them are line extensions and me-too brands.
Most brands are being perceived by consumers to be more or less similar within
a given price range because of the inability of manufacturers to develop truly
differentiated products. Under these circumstances, advertising messages are
unable to strongly influence the consumers’ perceptions and create brand
franchise. As a result of these perceptions of similarity among brands, marketers
have no way but to compete on the basis of extra benefit offered through sales
promotion. Competing companies struggle to capture market share by using
every tool likely to bring sales success.
4. Consumer Acceptance : As competition intensifies and promotions proliferate,
consumers have learnt to earn the rewards of being smart shoppers. Over a
period of time, they have also learnt that brands on promotion are not
necessarily of lower quality.
Spykar Jeans, if sold at discount rates, are not perceived to be a brand of low
quality. Instead, if word is out of a mega discount scheme for Spykar Jeans, then
people even time their purchase accordingly.
5. Emphasis on Sales Volumes : Towards achieving the long-term profit goals,
manufacturers try to attain high sales volume. Brand managers and product
managers find themselves under pressure to achieve short-term sales results for
the sake of their careers. Compared to any other promotional method, sales
promotion is a more effective method to generate short-term sales volume.
6. Trade has become more powerful : Retailers and wholesalers have become
powerful and find themselves in a position to demand extra facilities from the
companies. They Channel members demand more incentives to get the desired
results. Manufacturers do not seem to have any alternatives but to concede to
their demands, keeping in view the competitive market conditions. In shopping
malls like Globus and Lifestyle, decent margins have to be paid to them in order
to have shelf visibility for your brand.
7. Impulse buying is increasing : The number of marginal customers is increasing.
Displays at the point of purchases lead to impulse buying by consumers, more so
if the items on display are not expensive.
 8. Sales promotion maximize profits : A number of economic theories conclude
that a company can maximise profits by using sales promotion. Such promotions
can permit price discrimination by allowing the brand to compete in 2 or more
different market segments. Sales promotion may allow a premium brand to
compete with a lower tier brand among price sensitive consumers. For example,
a premium brand of toilet soap may be on promotion in some price sensitive
markets, while in the remaining markets it is sold at its normal price.
9. Advertising has become more expensive and less effective : All the advertising
media have become quite expensive. Audio-visual medium, which is considered
as the most effective for short-duration ads, may cost in excess of Rs. 1 lakh for a
10 second exposure during prime time. In many cases, consumers have reached
a point of boredom due to excessive advertising on TV. Some consumers even
consider advertising as an intrusion into their privacy, leading to zapping (surfing
channels). Firms with small budgets cannot compete with big companies, which
spend huge sums of money on advertising. For these small budget firms, sales
promotion is a more cost-effective promotion method to produce sales results.

Q.3 Define a New Product. Give examples of three products you consider as
new.

Ans.3 In business , New Product Development (covers the complete process of bringing a
new product to market. A central aspect of New Product Development is product design,
along with various business considerations. New product development is described broadly
as the transformation of a market opportunity into a product available for sale. The product
can be tangible (something physical which one can touch) or intangible (like
a service, experience, or belief), though sometimes services and other processes are
distinguished from "products." New Product Development requires an understanding of
customer needs and wants, the competitive environment, and the nature of the
market. Cost, time and quality are the main variables that drive customer needs. Aiming at
these three variables, companies develop continuous practices and strategies to better
satisfy customer requirements and to increase their own market share by a regular
development of new products. There are many uncertainties and challenges which
companies must face throughout the process.

Process of New Product :-

1. Generation of Product Ideas : The new product development process starts with
idea generation. Idea generation refers to the systematic search for new-product
ideas. Typically, a company generates hundreds of ideas, maybe even thousands,
to find a handful of good ones in the end. There are two sources of ideas can be
identified , Internal source which include finding idea through Research and
Development and second is External source which includes finding idea
externally.
2. Screening of Ideas : The next step in the new product development process is
idea screening. Idea screening means nothing else than filtering the ideas to pick
out good ones. In other words, all ideas generated are screened to spot good
ones and drop poor ones as soon as possible. While the purpose of idea
generation was to create a large number of ideas, the purpose of the succeeding
stages is to reduce that number. The reason is that product development costs
rise greatly in later stages. Therefore, the company would like to go ahead only
with those product ideas that will turn into profitable products.
3. Concept Development : You have an idea and it’s passed the screening stage.
However, internal opinion isn’t the most important. You need to ask the people
that matter – your customers. Using a small group of your true customer base –
those that convert – the idea need to be tested to see their reaction. The idea
should now be a concept, with enough in-depth information that the consumer
can visualise it.
4. Marketing Strategies Development : The next step in the new product
development process is the marketing strategy development. When a promising
concept has been developed and tested, it is time to design an initial marketing
strategy for the new product based on the product concept for introducing this
new product to the market.
5. Business Analysis : Once decided upon a product concept and marketing
strategy, management can evaluate the business attractiveness of the proposed
new product. The fifth step in the new product development process involves a
review of the sales, costs and profit projections for the new product to find out
whether these factors satisfy the company’s objectives. If they do, the product
can be moved on to the product development stage.
6. Product Development : The new product development process goes on with the
actual product development. Up to this point, for many new product concepts,
there may exist only a word description, a drawing or perhaps a rough prototype.
But if the product concept passes the business test, it must be developed into a
physical product to ensure that the product idea can be turned into a workable
market offering. The problem is, though, that at this stage, R&D and engineering
costs cause a huge jump in investment.
7. Test Marketing : The last stage before commercialisation in the new product
development process is test marketing. In this stage of the new product
development process, the product and its proposed marketing programme are
tested in realistic market settings. Therefore, test marketing gives the marketer
experience with marketing the product before going to the great expense of full
introduction. In fact, it allows the company to test the product and its entire
marketing programme, including targeting and positioning strategy, advertising,
distributions, packaging etc. before the full investment is made.
8. Commercialisation : Test marketing has given management the information
needed to make the final decision: launch or do not launch the new product. The
final stage in the new product development process is commercialisation.
Commercialisation means nothing else than introducing a new product into the
 market. At this point, the highest costs are incurred: the company may need to
build or rent a manufacturing facility. Large amounts may be spent on
advertising, sales promotion and other marketing efforts in the first year.

Q.4 What is consumerism ? Describe the rights of sellers and buyer.

Ans.4 Consumerism is a cultural model that promotes the aquisition of goods, and especially
the purchase of goods, as a vehicle for personal satisfaction and economic stimulation.
It is a social phenomenon that empowers the buyers and consumers. Its effects are visible in
the laws, regulations and also the marketing practices.
It keeps a check on the companies and ensures that the consumers get quality products
which are safe for them at the correct price. It also ensures that the consumers are provided
with the correct information about the products. Also Consumerism forces the companies
to operate and produce goods and services according to the consumer’s needs. It plays a
very important role in every stage of marketing starting from new product design to
communication through advertisements.
Consumerism is often confused with capitalism but the latter is an economic system, while
the former is a pervasive cultural attitude. A model combining the two is sometimes
referred to as consumer capitalism, a system in which consumer demand for goods is
deliberately increased through manipulation as a means of increasing sales. The model
relies on stimulating consumer desire for goods far in excess of satisfying needs.
Mechanisms to do so include promotion of luxury items, new technologies and new models
of existing technologies.
Rights Of Buyer :-
 He has the right to have delivery of the goods as per the contract.
 If the seller does not send, as per the contract, the right quantity of goods to the
buyer, the buyer can reject the goods.
 The buyer has a right not to accept delivery of the goods by installments by the
seller.
 If the goods are sent by sea route by the seller, the buyer has a right to be informed
by the seller so that he may get the goods insured.
 The buyer has a right to examine the goods which he has not seen earlier before
giving his acceptance for the same.
 If the seller wrongfully refuses to deliver the goods to the buyer as per the contract,
the buyer may sue the seller for damages for non delivery. The amount of damages
will be the difference between the contract price and the market price of the goods.
 If the buyer has already paid the price and the seller has not delivered the goods as
per the contract, the buyer can recover the amount paid.
Rights of Seller :-
 To reserve the right of disposal of the goods until certain conditions are fulfilled.
  To deliver the goods only when applied for by the buyer.
 To make delivery of the goods in installments, when so agreed.
 To exercise lien and retain possession of the goods, until payment of the price.
 To stop the goods in transit and resume possession of the goods, until payment of
the price.
 To resell the goods under certain circumstances.
 To withhold delivery of the goods when the property in the goods has not passed to
the buyer.
 To sue the buyer for price when the property in the goods has passed to the buyer or
when the price is payment on a certain day, in terms of the contract, and the buyer
fails to make the payment.
 To assume that the buyer has accepted the goods , where the buyer
a. Conveys his acceptance;
b. Does an act adopting the sale;
c. Retains the goods without giving a notice of rejection, beyond the specified
date (or reasonable time), in a sale on approval.
Q.5 Describe Integrated Logistics Management.
Ans.5 It is a technique which utilizes various sources and channels to meet the customer
demand in time. First step is to anticipate and forestall the demand the customer. After that
the required resource that will be utilized for fulfilling the need are acquired. These
resources range from human resource to technology, material, IT resources etc.
After that all effort are made to meet the customer demand timely by the active
participation of all the resources.
It utilizes the various operations like transport, logistics, physical distribution, inventory
management etc.
Integrated logistics is the one stop solution to the shipping and logistic requirements of the
company. The fast and secured transportation is the key requirement of any business. The
transportation of raw material as well as the finished products is the important part of the
development of all businesses. The proper planning and arrangement of integrated
logistics is therefore required to have the interrupted supply chain management. The
integrated logistics ensure that you get the fully arranged logistics services like shipping,
warehousing, trucking and stevedoring.
The warehousing need is the most basic need of any company as it is required for the
storage of raw material as well as finished products. The proper inventory management is
the key factor in producing the right quality finished product and the proper warehouse
facility is therefore the most important requirement of any company. The warehouse space
purchase and maintenance asks for a big investment budget but tie-up with integrated
logistics service provider will protect you from all these hassles. The companies can
outsource the warehouse space from integrated logistics service provider to store their
inventories safely at low investment cost.
The shipping and trucking are also major issues affecting the timely and safe logistics.
Various factors like weather conditions, government regulations and road conditions may
decide the time and cost associated with the transportation. You can check for the tension
free logistic solutions from the integrated logistics service providers so as to minimize the
delays and costs. These people are professionals and have rich experience of handling
turnkey solutions. They ship your cargo as per the government regulations and hence make
sure that there are no major delays associated with delivery time.

The integrated logistics systems can also be incorporated in the company itself where there
is lot of movement on daily basis. This will call for an appointment of bigger staff with
logistics experience. The company will also need to invest in specialized equipments and
transportation systems. The investment required for all these would be huge and the
human resource requirement would also be considerably high. The outsourcing of this
service is therefore advisable for cost effective and efficient logistics. There are many
companies that offer this service as per your budget. These companies have their websites
and online tracking system that can be utilized to track your shipment from time to time.
Many of these companies also offer online quotes to make the job easier. The cost depends
on the type of shipment as well as the source and destination of the shipment.

NAME : Pankhuri Sharma

COURSE : MBA

SEMESTER : One

BOOK CODE : MBA-105

BOOK NAME : Managerial Economics

DATE OF SUBMISSION : 23-11-2017

Q.1 Explain how a change in the rate of income tax is likely to affect the size
of the national income multiplier?

Ans.1 Current interest in promoting the growth of national income has led to the question
whether any particular elements of the tax system serve to retard that growth substantially.
A common approach to the question has been through the effect of taxes on consumption
or new investment, with special reference to such like (a) upper bracket personal surtaxes,
(b) loss carryovers, (c) averaging of income, (d) capital gains taxation, (e) consolidated
corporation returns, (f) taxation of dividends, (g) corporation undistributed profits, capital
stock or excess profit taxation, (h) depreciation allowances, (i) payroll taxes, (j) sales and
other excise taxes. /1/
It is impossible to give a fully satisfactory answer to this question. Present knowledge is
insufficient to demonstrate conclusively just which of the possible obstacles to the growth
of national income are the ones which, at any particular time, must be removed before
national income can expand. Furthermore, much more research and study will be necessary
to determine beyond doubt the relative effects of various kinds of taxation.

The removal of what elements of the tax structure would increase the national income
compared to what that income would be if those elements remained?

The removal of some of the retarding elements is likely, however, to decrease the total
revenue produced by the tax system, even though it increases the national income. The
question, to be meaningful, must therefore specify whether any such decrease is to be
made up from non-tax sources such as borrowing, or instead from tax sources.

In this analysis the latter assumption will be made; the inquiry is thus confined to tax
matters, leaving the question of taxes versus borrowing and other similar inquiries for other
analyses. If it were assumed that revenue losses were to be covered by borrowing, it might
be found that the influence of substituting borrowing for taxation would overshadow the
influence of differences among the several tax elements. The assumption that revenue
losses are to be made up from taxation is thus the more fruitful for present purposes,
although it is also the more detailed, since it requires that the answer state not only what
element is being eliminated, but what element is being used as a revenue substitute. An
exception to this requirement will occur in the few cases where the total revenue of the
system will not decrease even if there is no replacement. This may occur either (a) because
the element being eliminated yields no revenue (e.g., a prohibitive import duty), or (b)
because the yield of the rest of the system is increased sufficiently as a result of the increase
in national income.

The tax system may affect the growth of the national income through its effect on
consumption or investment. It is assumed, in the present discussion, that consumption
resulting from investment (as when a bricklayer consumes his wages that he gets because
the investment is made) is covered by the analysis of investment, so that the "effect on
consumption" refers here to direct effect on personal consumption, not indirect effect
working through the effect on investment. Likewise, investment may be increased because
consumption is increased. Generally, in the analysis below, this kind of increase in
investment will be assumed to be covered by the remarks on consumption.

If the government taxes away a certain portion of the extra income generated in the
economy the value of the multiplier will fall. So, like savings, taxes also act as a leakage from
the circular flow. Taxes are contractionary in their effects inasmuch as they reduce real
consumption spending by reducing disposable income.

All modern economies rely on progressive income taxes for raising revenue and reducing
income inequality. Thus, as GNP begins to rise because of a shift in spending, part of the
extra GNP is taken away by the government in the form of income taxes.
Hence, a rise in GNP is not reflected in a corresponding (equivalent) increase in disposable
income. If a representative Indian is in a 40 percent marginal tax bracket, a one-rupee
increase in gross income yields to just 60 paise increase in (personal) disposable income.

Given an MPC of 0.8 the individual adds only 48 paise to national income (GNP) through his
secondary consumption spending (0.8 x 60). Thus, James F. Ragan and L.B. Thomas have
rightly commented: “The effective MPC out of GNP is reduced by the existence of income
taxes, and the true multiplier is reduced considerably relative to a society with no income
taxes.”

Q.2 Differentiate between liberalization and privatization.

Ans.2 Privatization is the transfer of control of ownership of economic resources from the
public sector to the private sector. It means a decline in the role of the public sector as there
is a shift in the property rights from the state to private ownership. The public sector had
been experiencing various problems, since planning, such as low efficiency and profitability,
mounting losses, excessive political interference, lack of autonomy, labor problems and
delays in completion of projects. Hence to remedy this situation the 1991 privatization was
initiated into the Indian economy. Another term for privatization is Disinvestment. The
objectives of disinvestment were to raise resources through sale of PSUs (Public Sector
Undertaking) to be directed towards social welfare expenditures, raising efficiency of PSUs
through increased competition, increasing consumer satisfaction with better quality goods
and services, upgrading technology and most importantly removing political interference.

Liberalization means elimination of state control over economic activities. It implies greater
autonomy to the business enterprises in decision-making and removal of government
interference. It was believed that the market forces of demand and supply would
automatically operate to bring about greater efficiency and the economy would recover.
This was to be done internally by introducing reforms in the real and financial sectors of the
economy and externally by relaxing state control on foreign investments and trade.

Privatisation is internal reforms like replacement of MRTPC by CCI, inspector rajya and
permit rajya abandoned and so on and it tells about a country to be more market oriented
and less state oriented.
Liberalisation is external reforms like low tariff, quota specific phenomena, FDI being
more or less in every sector and so on.

Privatization refers specifically to converting government-run entities into private ones,

usually by selling them. This usually includes things like utility companies, infrastructure,
schools, pension plans, health care systems, and in some cases manufacturing firms (like
with the Soviet Union).

Liberalization is a broader term that may encompass privatization, but also includes
deregulation (less government restrictions on private business activity), moving towards
freer trade (lowering tariffs and quotas), removing price controls, and other generally "pro-
business" policies.

Q.3 Discuss the impact of devaluation on foreign exchange reserve.

Ans.3 The adoption of a fixed exchange rate regime does not mean that the exchange rate
will never be changed. Changes in official or parity exchange rates have typically been
frequent. Here we deal with the question of how output, employment, prices and the
balance of payments are affected when countries adjust the level at which they fix their
exchange rates.
A devaluation of the official exchange rate operates like a tariff---it shifts world demand for
goods and services off of foreign and onto domestic output. An increase in the official parity
value of the currency---an appreciation or revaluation---has the opposite effect.

Let us look again at the goods and asset market equilibrium conditions of the small open
economy:

1. Y = ( a + δ + ΦBT + DSB)/(s + m) − μ/(s + m) r + m*/(s + m) Y* − σ/(s + m) Q

2. r* = − (1/θ)( M/P + ΦM ) − τ + (ε/θ) Y

where Y and Y* denote domestic and foreign output and income and employment, ΦBT
represents exogenous shocks to the balance of trade, DSB is the debt service balance, Q is
the real exchange rate, defined as the relative price of domestic in terms of rest-of-world
output, r* is the domestic real interest rate which, is determined by world market
conditions, s is the domestic marginal propensity to save, m and m* are the domestic
and foreign marginal propensities to import, M is the nominal money stock, P is the
domestic price level, ΦM represents an exogenous shift factor in the demand for real
money balances and τ is the expected rate of domestic inflation.

A devaluation of the official exchange rate under conditions of less than full employment
lowers Q in Equation 1, making domestic goods cheaper in world markets. The current
account balance increases, increasing aggregate demand and shifting IS to the right. Given a
fixed exchange rate and less than full employment, small-open-economy equilibrium is
determined by the intersection of the IS curve and the ZZ line. The rightward shift of the IS
curve resulting from a devaluation of the nominal exchange rate and corresponding
reduction in Q leads to an increase in output and employment. As output rises in Equation
2 at the given world real interest rate, the quantity of money demanded increases leading to
a sale of assets abroad by domestic residents and an increase in official reserve holdings as
the authorities purchase the foreign exchange necessary to keep the exchange rate from
appreciating back to its old level. This is shown in Figure 1. The LM curve shifts to pass
through the new IS-ZZ intersection, which happens here to be at the full-employment level
of output.A devaluation under less-than-full-employment conditions thus leads to an
increase in output and employment and a one-shot increase in the stock of foreign
exchange reserves. This increase in foreign exchange reserves would be avoided if the
central bank were to increase Dsc appropriately by purchasing bonds in the open market.
It is sometimes argued that devaluations are necessary to eliminate deficits in the balance
of payments. A balance of payments deficit is a continual outflow of foreign exchange
reserves as indicated by a negative rate of change of R through time. For such a deficit to
occur Dsc must be growing at a faster rate through time than the terms in the square
brackets in Equation 5. A devaluation will increase the stock of reserves but not necessarily
increase the rate of growth or reduce the rate of decline through time in that reserve stock.
Thus, it will not necessarily cure a balance of payment deficit. A balance of payments deficit
can be easily cured without changing the exchange rate by simply reducing the rate at which
Dsc is growing through time. Also, a one-shot increase in the stock of reserves can be
brought about by a one-shot reduction in Dsc without changing the official rate of
exchange of domestic for foreign currency. Since a devaluation is not necessary to improve
the balance of payments, what would be its purpose?

Q.4 What is managerial economics ? What role does it play in shaping

business Decisions ?
Ans.4 Managerial economics, used synonymously with business economics. It is a branch of
economics that deals with the application of microeconomic analysis to decision-making
techniques of businesses and management units. It acts as the via media between economic
theory and pragmatic economics. Managerial economics bridges the gap between "theory
and practice". Managerial economics can be defines as:

According to Spencer and Siegelman:

“The integration of economic theory with business practice for the purpose of facilitating
decision-making and forward planning by management”.

According to McGutgan and Moyer:

“Managerial economics is the application of economic theory and methodology to

decision-making problems faced by both public and private institutions”.

Managerial economics studies the application of the principles, techniques and concepts of
economics to managerial problems of business and industrial enterprises. The
term is used interchangeably with micro economics, macro economics, monetary
economics.Managerial economics generally refers to the integration of economic theory
with business practice. Economics provides tools managerial economics applies these tools
to the management of business. In simple terms, managerial economics means the
application of economic theory to the problem of management. Managerial economics may
be viewed as economics applied to problem solving at the level of the firm.

It enables the business executive to assume and analyse things. Every firm tries to get
satisfactory profit even though economics emphasises maximizing of profit. Hence, it
becomes necessary to redesign economic ideas to the practical world. This function is being
done by managerial economics.
Managerial economics serves several purposes in business decision-making. To start with,
managerial economics provides a logical and experiential framework for analyzing the
question. To the somewhat vague question of "what or how much should I make, and who
should I sell it to?", or "should I try to retail something like 'this'?", it provides the
framework for applying to your question concepts such as supply and demand, market
segmentation, competition, and so on. It takes your question from something vague and
applies tested concepts to frame a more precise question (and answer).

Second, it provides an opportunity for a quantitative question: "how much should I make?"
or "what price should I charge?" Rather than punting at an answer, managerial economics
provides either a pre-existing framework for obtaining a direct answer, or at least provides a
framework for testing volume or pricing in this case.

Third, it lends meaning to the answer. If you get back an answer "price it at $88.50 if you
want to sell 2,000, or at $115.50 if you want to sell 600," you have an answer with much
more utility and you can both test the answer (which is important) and extrapolate, say, to
production limited to 400. At this point, you have used managerial economics to help make
important business decisions. Managerial economics is the application of economic theory
to economic practice with an aim of ensuring that business decisions meet their intended
goal. It is through management economics that a business understands how to access and
utilize scarce resources to ensure optimal performance of the same to generate revenues
and profits. The application assists in decision making with regards to issues about optimum
production, profit maximizing prices and type of product among other economic variables.
For instance, a manufacturing company needs to understand what type of product or which
additional features would boost the utility and sales of their product. This will be
determined against analyzing competitor product offerings or substitutes that exist in the
market. The market research is part of economic theory and application of the information
in the business when making the choice of the product is regarded as economic practice.

Q.5 Give a careful explanation of Nash Equilibrium. How is it different from a

Dominant-strategy equilibrium.

Ans.5 The Nash equilibrium is named after John Forbes Nash, who penned a one-page
article in 1950 (and a follow-up in 1951) describing a stable-state equilibrium in a
multiperson situation where no participant gains by a change in his strategy as long as the
other participants also remain unchanged.

The most famous example of Nash equilibrium is the prisoner's dilemma. In the prisoner's
dilemma, two criminals are captured and interrogated separately. Even though each would
be best off by not cooperating with police, each expects the other criminal to confess and
reach a plea deal. Thus, there is a conflict between group rationality and individual
rationality, and each criminal is likely to rat the other out.

This example has caused some confusion about the Nash equilibrium. The theory is not used
exclusively for situations where there is a defecting party; the Nash equilibrium can exist
where all members of a group cooperate or where none do. In fact, many games can have
multiple Nash equilibrium.
To be brief, a solution in dominant strategies is one in which each player's assigned strategy
brings them a higher payoff than any other regardless of the other players' strategy. The
unique Nash equilibrium of the prisoner's dilemma is in fact also a solution in dominant
strategies, which you can easily check. Under a Nash equilibrium, by contrast, each player's
strategy need only be payoff maximizing given all other payers' strategies as specified in the
equilibrium.

A solution in dominant strategies is therefore a stronger solution concept than Nash

equilibrium, as all solutions in dominant strategies are Nash equilibrium (obviously), but not
vice versa. This can be useful in situations where a game has many Nash equilibrium and we
need a selection mechanism to make a concrete prediction. Unfortunately, dominant-
strategy solutions are generally considered too strong as a solution concept, because many
(most) games have no solution at all in dominant strategies. This limits their applicability, as
a solution concept that makes no prediction at all in many games is not a very useful one. A
simple example of the latter phenomenon is the matching pennies game.

There are also some generalizations of solutions in dominant strategies (in the sense of
being a weaker solution concept), namely those resulting from "iterated deletion of
dominated strategies". This solution concept uses an iterative procedure, in which at each
step you remove those players' strategies which are dominated relative to the remaining
strategy set available to other players. This can lead to a unique strategy profile even in
games with no dominant strategies, and such games are sometimes called "dominant-
solvable." Solutions to dominant-solvable games are still Nash equilibrium (showing this is a
good, simple exercise), but once again the converse is not true.
NAME : Pankhuri Sharma

COURSE : M.B.A

SEMESTER : One

BOOK CODE : MBA- 106

BOOK NAME : Information technology with Introduction To Database

Management System

DATE OF SUBMISSION : 23-11-2017

Q.1 Describe various characteristics of computer ?

Ans.1 Computer is an electronic device that is designed to work with Information. The
term computer is derived from the Latin term ‘computare’, this means
to calculate or programmable machine. Computer cannot do anything without a Program. It
represents the decimal numbers through a string of binary digits. The Word 'Computer'
usually refers to the Center Processor Unit plus Internal memory.
Charles Babbage is called the "Grand Father" of the computer. The First mechanical
computer designed by Charles Babbage was called Analytical Engine. It uses read-only
memory in the form of punch cards.
Characteristics of Computer :-
 1. Speed : Computer is very fast calculating device. It can execute basic operations
like substraction, addition, multiplication and division at a few microseconds. It
can move and copy data at a speed in the order of billion instruction per second.
2. Accuracy : Computer always gives accurate results. The accuracy of Computer
does not go down when they are used continuously for hours together. It always
gives accurate results.
3. Storage : Computer have a very large storage capacity. A large volume of
information can be stored in the memory of computer and information can be
retrieved correctly when desired.
4. Versatility : The working of computer with different types of data is known as
versatility. That means computer can perform different types of job efficiently.
Computer can works with different type of data and information such as visuals,
text, graphics & video etc. So, versatility is a most important characteristic of
computer.
5. Diligence : A Computer can work for long hours with the same accuracy and
speed because it is free from problems of boredom or lack of concentration .

6. No Thoughts : Computers have no thoughts because they are machine and they
are devoid of emotions. They have no feelings. Since, computers have no
thoughts and feelings so they can't make judgement based on thoughts and
feelings.

Q.2 What is the relation between application software and operating system
?
Ans.2 All three (Application program, the operating system and hardware) are needed to
accomplish a purpose :- Hardware to house components, an operating system to run the
components, and an application to be run.

An operating system is defined as an application which is run on a computer. Some common

examples of operating systems are Windows, Macintosh, Microsoft Disc Operating System
(which is abbreviated as MS-DOS), Linux, etc. On the other hand, an application software
program is a class of computer applications that enables the user to perform a required task
by using the full capabilities of his or her personal computer directly. System software
applications are those applications that play a direct role in integrating the various
capabilities of a computer. However, a system software program does not usually apply the
capabilities of a computer directly to the performance of the task at hand. In that sense, it
can be said to be in direct contrast to an application software program.

An operating system can also be defined as the platform on which a personal computer is
run. In the absence of an operating system, the computer would only display a typed code,
which is not easy to comprehend. Some common examples of application software
programs are word processors, spreadsheets and media players. Operating systems directly
communicate with the hardware.
Computer software can be divided into two main categories: application software and
system software. According to Brookshear [1997], "application software consists of the
programs for performing tasks particular to the machine's utilization. Examples of
application software include spreadsheets, database systems, desktop publishing systems,
program development software, and games." Application software is generally what we
think of when someone speaks of computer programs. This software is designed to solve a
particular problem for users.
On the other hand, system software is more transparent and less noticed by the typical
computer user. This software "provides a general programming environment in which
programmers can create specific applications to suit their needs. This environment provides
new functions that are not available at the hardware level and performs tasks related to
executing the application program" [Nutt 1997]. System software acts as an interface
between the hardware of the computer and the application software that users need to run
on the computer. The diagram below illustrates the relationship between application
software and system software.

Q.3 What are column and where are they used ?

Ans.3 A column is a vertical group of values within a table. It contains values from a single
field in multiple rows.

In databases, columns may be defined as individual fields within a table. Each field has a
name, such as Name, Address, or Phone Number. Therefore, when multiple values from a
column are selected, they will all have similar information, such as a list of phone numbers.
When defining columns in databases and spreadsheets, it is often possible to specify the
type of data, such as a string, number, or date. This helps ensure all the data within a given
column has a similar format. The main benefit of keeping data in a column database is that
some queries can become really fast. For instance, if one wants to know the average age of
all users, one can easily jump to the area where the 'age' data is stored and read just the
data needed instead of searching up the age for each record row by row. During querying,
columnar storage avoids going over non-relevant data. Therefore, aggregation queries
where one only needs to look up subsets of your total data develop quicker compared to
row-oriented databases.
There are many situations where you want multiple fields from each row. Column databases
are usually not good for these types of queries. The more fields you like to read per record,
the less benefits you get from storing in a column-oriented fashion. Actually, if your queries
are for looking up user-specific values only, row-oriented databases usually perform those
queries quicker. Secondly, writing new data could take more time in columnar storage. For
instance, if you're inserting a new record into a row-oriented database, you can easily write
that in one process. However, if you're inserting a new record to a column database, you
need to write to each column one by one. This results as it will take longer time when
loading new data or updating many values in a columnar database.
Columns and rows are a fundamental part of any spreadsheet program such as Excel and
Google Spreadsheets. For such programs, each worksheet is laid out in a grid pattern with:
 Columns running vertically;
 Rows running horizontally;
Each worksheet in the most recent versions of excel contains : 16,384 columns and in google
spreadsheet the default size of a worksheet is 26columns. Columns and rows can be
added in Google Spreadsheets so long as the total number of cells per worksheet does not
exceed 400,000.
In both Excel and Google Spreadsheets, each column is identified by a letter in the column
header starting with column A and, in the case of Excel, running through to column XFD.The
intersection point between a column and a row is a cell - each of the small boxes seen in a
worksheet. Taken together, the column letters and the row numbers in the two headings
create cell references, which identify individual cell locations in the worksheet. Cell
references - such as A1, F56, or AC498 - are used extensively in spreadsheet operations such
as formulas and when creating charts.

To highlight an entire column in Excel,

 click on the column header;

 press the Ctrl + Spacebar keys on the keyboard

To highlight an entire column in Google Spreadsheet;

For columns containing no data,

 pressing the Ctrl + Spacebar keys once selects the entire column.

For columns containing data;

 pressing the Ctrl + Spacebar keys once selects the section of the column containing
the data;
 pressing the Ctrl + Spacebar keys a second time selects the entire column.

Q.4 Describe various ways to view a workbook.

Ans.4 In Microsoft Excel a workbook is a collection of one or more spreadsheets, also called
worksheets, in a single file. Below is an example of a spreadsheet called "Sheet1" in an Excel
workbook file called "Book1." Our example also has the "Sheet2" and "Sheet3" sheet tabs
that are also part of the same workbook.

A worksheet or sheet is a single page in a file created with an

electronic spreadsheet program such as Excel or Google Spreadsheets. A workbook is the
name given to an Excel file and contains one or more worksheets. The term spreadsheet is
often used to refer to a workbook, when, as mentioned, it more correctly refers to the
computer program itself.

So, strictly speaking, when you open an electronic spreadsheet program it loads an empty
workbook file consisting of one or more blank worksheets for you to use. A worksheet is
used to store, manipulate, and display data.
The basic storage unit for data in a worksheet is the rectangular-shaped cells arranged in a
grid pattern in every worksheet.

Individual cells of data are identified and organized using the vertical column letters and
horizontal row numbers of a worksheet which create a cell reference - such as A1, D15, or
Z467. the worksheets are named Sheet1, Sheet2, Sheet3 and so on, but these can easily be
changed.

To view the workbook in excel is quite easy it has to go through several steps only. Once you’ve
got two windows, one displaying the first sheet and one displaying the second, you can view
them side by side, or in tiles, or however you choose. In the View tab, click on either View
Side by Side or Arrange All to select your options
Note that if you choose Arrange All, you must make sure that you tick Windows of active
workbook
In this case, I’ve chosen Arrange All – Vertical, and here are my two sheets of my workbook,
displayed next to each other

If you want to return to a full-screen view of a particular spreadsheet, simply double-click on

the title bar of your spreadsheet (by its name) and it will expand and be the only one visible.

Q.5 Write short note on Scripting languages

Ans.5 A scripting or script language is a programming language that

supports scripts: programs written for a special run-time
environment that automate the execution of tasks that could alternatively be executed one-
by-one by a human operator. Scripting languages are often interpreted (rather
than compiled). Primitives are usually the elementary tasks or API calls, and the language
allows them to be combined into more complex programs. Environments that can be
automated through scripting include software applications, web pages within a web
browser, the shells of operating systems (OS), embedded systems, as well as numerous
games. A scripting language can be viewed as a domain-specific language for a particular
environment; in the case of scripting an application, this is also known as an extension
language. Scripting languages are also sometimes referred to as very high-level
programming languages, as they operate at a high level of abstraction, or as control
languages, particularly for job control languages on mainframes.
The term "scripting language" is also used loosely to refer to dynamic high-level general-
purpose languages, such as Perl, TCL, and Python, with the term "script" often used for
small programs (up to a few thousand lines of code) in such languages, or in domain-specific
languages such as the text-processing languages sed and AWK. Some of these languages
were originally developed for use within a particular environment, and later developed into
portable domain-specific or general-purpose languages. Conversely, many general-purpose
languages have dialects that are used as scripting languages. This article discusses scripting
languages in the narrow sense of languages for a specific environment.

Compiled languages are converted permanently into executable files before they are run. In
contrast, scripting languages are typically converted into machine code on the fly
during runtime by a program called an interpreter. Although this approach can cause
performance problems because the instructions are not handled solely by the processor, it
does make it easier for scripts to work with programs written in other languages.

Over time, as just-in-time compilation has improved performance and interpreted

programming languages like Perl, Python and Ruby have evolved, the lines have begun to
blur about what should, and what should not, be classified as a scripting language. Today, it
is generally agreed that the classification should not be determined by the language itself,
but rather by how the language is being used.

When a scripting language is used to connect disparate system components, it may also be
referred to as a glue language. In addition to being interpreted, such scripting languages are
also typeless, allowing a variable to hold any type of data without having to explicitly
declare its type. Usually, glue languages also provide native support for
specific aggregate data types such as arrays and automate garbage collection to reclaim
abandoned storage and prevent memory leaks.

Scripting languages like JavaScript are often used to facilitate enhanced features of
websites. These features are processed on the server, but the script on a specific page runs
on the user's browser. Many Web sites require that the user's browser be set to run scripts
to take advantage of all the features of the site. In some cases, a Web site may be practically
useless unless the user's computer is set to run programs locally in a scripting language.