CO2

1. What are the 3 duties of HR managers?

Ans->

In providing this specialized assistance, the human resource manager carries

out three distinct functions:

1. A line function. The human resource manager directs the activities of the
people in his or her own department, and perhaps in related areas (like the
plant cafeteria).

2. A coordinative function. The human resource manager also coordinates

personnel activities, a duty often referred to as functional authority (or
functional control). Here he or she ensures that line managers are implementing
the firm's human resource policies and practices (for example, adhering to its
sexual harassment policies).

3. Staff (assist and advise) functions. Assisting and advising line managers is the
heart of the human resource manager's job. He or she advises the CEO so the
CEO can better understand the personnel aspects of the company's strategic
options. HR assists in hiring, training, evaluating, rewarding, counseling,
promoting, and firing employees. It administers benefit programs (health and
accident insurance, retirement, vacation, and so on). It helps line managers
comply with equal employment and occupational safety laws, and plays an
important role in handling grievances and labor relations. It carries out an
innovator role, by providing up-to-date information on current trends and new
methods for better utilizing the company's employees (or "human resources").
It plays an employee advocacy role, by representing the interests of employees
within the framework of its primary obligation to senior management. Although
human resource managers generally can't wield line authority (outside their
departments), they are likely to exert implied authority. This is because line
managers know the human resource manager has top management's ear in
areas like testing and affirmative action.
2. Trend analysis and Ratio analysis – Define.
Ans->

Trend analysis :Study of a firm's past employment needs over a period of

years to predict future needs.

Ratio analysis :A forecasting technique for determining future staff needs by

using ratios between, for example, sales volume and number of employees
needed.

Trend analysis: Trend analysis means studying variations in the firm's

employment levels over the past few years. For example, compute the number
of employees at the end of each of the last 5 years in each subgroup (like sales,
production, secretarial, and administrative) to identify trends. Trend analysis
can provide an initial rough estimate of future staffing needs. However,
employment levels rarely depend just on the passage of time. Other factors (like
productivity, workforce demographics retirements, for instance), and changing
skill needs will influence impending workforce needs.

Ratio analysis: Another simple approach, ratio analysis, means maldng

forecasts based on the historical ratio between (1) some causal factor (like sales
volume) and (2) the number of employees required (such as number of
salespeople). For example, suppose a salesperson traditionally generates
$500,000 in sales. If the sales revenue to salespeople ratio remains the same,
you would require six new salespeople next year (each of whom produces an
extra $500,000) to produce a hoped-for extra $3 million in sales. A graphical
method used to help identify the relationship between two variables.
Determining the Relationship Between Hospital Size and Number of Nurses
Note: After fitting the line, you can project how many employees you'll need,
given your projected volume. Like trend analysis, ratio analysis assumes that
things like productivity remain about the same. If sales productivity were to rise
or fall, the ratio of sales to salespeople would change.
3. What is On-The-Job training? Write down step1 to help ensure OJT success.
Ans->

On-the-job training :On-the-job training (OJT) means having a person learn a

job by actually doing it. Every employee, from mailroom clerk to CEO, should get
on-the-job training when he or she joins a firm. In many firms, OJT is the only
training available.

Types of On-the-job training: The most familiar on-the-job training is the

coaching or understudy method. Here, an experienced worker or the trainee's
supervisor trains the employee. This may involve simply observing the
supervisor, or (preferably) having the supervisor or job expert show the new
employee the ropes, step-by-step. On-the-job training is part of multifaceted
training at The Men's Wearhouse, which combines on-the-job training with
comprehensive initiation programs and continuing-education seminars. Every
manager is accountable for developing his or her subordinates.50 Job rotation,
in which an employee (usually a management trainee) moves from job to job at
planned intervals, is another OJT technique. Special assignments similarly give
lower-level executives firsthand experience in working on actual problems.
Do not take the on-the-job training effort for granted. Instead, plan out
and structure the OJT experience. Train the trainers themselves (often the
employees' supervisors), and provide training materials. They should lmow, for
instance, how to motivate learners. Because low expectations may translate
into poor trainee performance, supervisor/trainers should emphasize their high
expectations.
Many firms use "peer training" for OJT; for instance, expert employees
answer calls at selected times during the day or participate in in-house "radio
programs" to answer their peers' call-in questions about technical aspects of
doing their jobs.51 Others use employee teams to analyze the jobs and prepare
training materials. The employees, already job experts, reportedly conduct task
analyses more quickly and effectively than do training experts.
Here are some steps to help ensure OJT success.

Step1: Prepare the learner

1. Put the learner at ease.
2. Explain why he or she is being taught.
3. Create interest and find out what the learner already knows about the job.
4. Explain the whole job and relate it to some job the worker already knows.
5. Place the learner as close to the normal working position as possible.
6. Familiarize the worker with equipment, materials, tools, and trade terms.

4. Define Boycott and Inside games.

Ans->

Boycott:
The combined refusal by employees and other interested parties to buy or use
the employer's products.
Management and labor each have other weapons to break an impasse. The union,
for example, may resort to a corporate campaign. A corporate campaign is an
organized effort by the union to exert pressure on the employer by pressuring the
company's other unions, shareholders, corporate directors, customers, creditors,
and government agencies. Thus, the union might surprise members of the board
of directors by picketing their homes and organizing a boycott of the company's
banks. 74 The United Auto Workers recently began trying to organize hourly
factory workers at foreign-owned car plants in the United States. The union
commenced picketing U.S. Hyundai, Daimler, Toyota, and Nissan dealerships.
Inside games
Inside games are union efforts to convince employees to impede or to
disrupt productionfor example, by slowing the work pace or refusing to
work overtime.76 Inside games are basically strikes-albeit "strikes" in
which the company continues to pay the employees. In one inside
game at a Caterpillar plant, UAW grievances rose from 22 to 336. This
tied up workers and management in unproductive endeavors on
company time.

5. What are the criticisms of the Theories of Wage?

Ans->
The theory is found to be unsatisfactory and various criticisms have
been leveled against this theory.
1. The theory deals with the demand side only. The supply side is totally
ignored.
2. This theory is unjust because wages are determined by the marginal
productivity. But justice demand that workers should be paid on the
basis of average productivity.
3. Further, marginal productivity of the worker cannot be calculated as
factors are not divisible into small units.
4. Factors of production are neither mobile nor perfect substitutes.
Their Knowledge is also imperfect.
5. This theory assumes perfect competition in the product market. But
the market for goods is characterised by imperfect competition.
6. Marginal product of labour depends not only on its support but also
on the supply of other factors. If other factors are plentiful and labour is
scarce, marginal product of labour will be high and vice versa.
7. This theory fails to explain the differences in wages.
Rejecting the marginal productivity theory Marshall states, “This
doctrine has been put forward as a theory of wages. But there is no
valid ground for any such pretension… Demand and supply exert
equally important influences on wages; neither has a claim to
predominance; any more than has either blade of scissors, or either
pier of an arch… The doctrine throws into clear light, one of the causes
that governs wages”.

6. Discuss the examples of Grievances.

Ans->
grievance procedure provides an orderly system whereby both
employer and union determine whether some action violated the
contract. 81 It is the vehicle for administering the contract day-to-day.
However, this involves interpretation only, usually not negotiating new
terms or altering existing ones.
Here are three examples of grievances:
Absenteeism. An employer fired an employee for excessive absences.
The employee filed a grievance stating that there had been no previous
warnings related to excessive absences.
Insubordination. An employee on two occasions refused to obey a
supervisor's order to meet with him, unless a union representative was
present at the meeting. As a result, the employee was discharged and
subsequently filed a grievance protesting the discharge.
Plant rules. The plant had a posted rule barring employees from eating
or drinking during unscheduled breaks. The employees filed a grievance
claiming the rule was arbitrary.
7. What is unemployment insurance?
Ans->
Unemployment insurance:
compensation laws provide short-term benefits to people who lose
their jobs through no fault of their own.
All states have their own unemployment insurance (or compensation)
laws. These provide benefits to eligible workers who become
unemployed through no fault of their own. The benefits derive from a
tax on employers that can range from 0.1% to 5% of taxable payroll in
most states. An employer's unemployment tax rate reflects its rate of
employee terminations. Unemployment tax rates are rising in many
states. For example, prior to the recent recession, Maryland's
unemployment insurance tax rate was 0.3% or lower, but now averages
2.2% to 13.5% per employee.All states follow federal unemployment
insurance guidelines.
Firms aren't required to let everyone they dismiss receive
unemployment benefits-only those released through no fault of their
own. Thus, strictly speaking, a worker fired for chronic lateness can't
legitimately claim benefits. But many managers are lackadaisical in
protecting their employers. Employers therefore spend thousands of
dollars on unemployment taxes unnecessarily.
The main rule is to keep a list of written warnings to demonstrate
that poor performance caused the dismissal. The checklist in Table 13-2
can help. (Those fired during their initial "90-day probation" are eligible
for unemployment, so follow that checklist for them, too.)
8. Discuss the key-points of Long term care insurance.
Ans->
Long-term care insurance-for things like nursing assistance to former
employees in their old age-is a key employee benefit. The Health
Insurance Portability and Accountability Act of 1996 lets employers and
employees deduct the cost of long-term care insurance premiums from
their annual income taxes, making this benefit more attractive. 94
Employers can also provide insurance benefits for several types of long-
term care, such as adult day care, assisted living, and custodial care.

CO4:

1. “We can distinguish three stages through which marketing practice

might pass” – Describe.
1. Entrepreneurial marketing: Most companies are started by individuals who
visualize an opportunity and knock on every door to gain attention. Jim Koch,
founder of Boston Beer Company, whose Samuel Adams beer has become a top-
selling “craft” beer, started out in 1984 carrying bottles of Samuel Adams from
bar to bar to persuade bartenders to carry it. For 10 years, he sold his beer
through direct selling and grassroots public relations. Today his business pulls in
nearly $200 million, making it the leader in the U.S. craft beer market.
2. Formulated marketing: As small companies achieve success, they inevitably
move toward more formulated marketing. Boston Beer recently began a $15
million television advertising campaign. The company now employs more that 175
salespeople and has a marketing department that carries on market research,
adopting some of the tools used in professionally run marketing companies.
3. Intrepreneurial marketing: Many large companies get stuck in formulated
marketing, poring over the latest ratings, scanning research reports, trying to fine-
tune dealer relations and advertising messages. These companies lack the
creativity and passion of the guerrilla marketers in the entrepreneurial stage.3
Their brand and product managers need to start living with their customers and
visualizing new ways to add value to their customers’ lives.
The bottom line is that effective marketing can take many forms. Although
it is easier to learn the formulated side (which will occupy most of our attention in
this book), we will also see how creativity and passion can be used by today’s and
tomorrow’s marketing managers.

2. When the product offering will be successful?

In terms of marketing, the product or offering will be successful if it
delivers value and satisfaction to the target buyer. The buyer chooses
between different offerings on the basis of which is perceived to deliver
the most value. We define value as a ratio between what the customer
gets and what he gives. The customer gets benefits and assumes costs,
as shown in this equation:
Value =Benefits / Costs =
(Functional benefits+ emotional benefits)
= _____________________________________________
( Monetary costs +time costs +energy costs +psychic costs)
Based on this equation, the marketer can increase the value of the
customer offering by (1) raising benefits, (2) reducing costs, (3) raising
benefits and reducing costs, (4) raising benefits by more than the raise
in costs, or (5) lowering benefits by less than the reduction in costs. A
customer choosing between two value offerings, V1 and V2, will
examine the ratio V1/V2. She will favor V1 if the ratio is larger than
one; she will favor V2 if the ratio is smaller than one; and she will be
indifferent if the ratio equals one.
3. What is supply chain?
Ans->
Whereas marketing channels connect the marketer to the target
buyers, the supply chain describes a longer channel stretching from raw
materials to components to final products that are carried to final
buyers. For example, the supply chain for women’s purses starts with
hides, tanning operations, cutting operations, manufacturing, and the
marketing channels that bring products to customers. This supply chain
represents a value delivery system. Each company captures only a
certain percentage of the total value generated by the supply chain.
When a company acquires competitors or moves upstream or
downstream, its aim is to capture a higher percentage of supply chain
value.

4. Based on degree of product substitutability what are the levels of

competition.
Ans->
We can broaden the picture by distinguishing four levels of
competition, based on degree of product substitutability:
1. Brand competition: A company sees its competitors as other
companies that offer similar products and services to the same
customers at similar prices. Volkswagen might see its major
competitors as Toyota, Honda, and other manufacturers of
mediumprice automobiles, rather than Mercedes or Hyundai.
2. Industry competition: A company sees its competitors as all
companies that make the same product or class of products. Thus,
Volkswagen would be competing against all other car manufacturers.
3. Form competition: A company sees its competitors as all companies
that manufacture products that supply the same service. Volkswagen
would see itself competing against manufacturers of all vehicles, such
as motorcycles, bicycles, and trucks. 4. Generic competition: A company
sees its competitors as all companies that compete for the same
consumer dollars. Volkswagen would see itself competing with
companies that sell major consumer durables, foreign vacations, and
new homes.

5. What is done in the stage of marketing strategy development?

After testing and selecting a product concept for development, the
new-product manager must draft a three-part preliminary marketing-
strategy plan for introducing the new product into the market. The first
part will describe the target market’s size, structure, and behavior; the
planned product positioning; and the sales, market share, and profit
goals sought in the first few years. The second part will outline the
planned price, distribution strategy, and marketing budget for the first
year. The third part will describe the long-run sales and profit goals and
marketing-mix strategy over time. This plan forms the basis for the
business analysis that is conducted before management makes a final
decision on the new product.
6. There are some methods to estimate company demand curve.
What are those? Describe.
7. Suppose a dryer manufacturer has the following costs and sales
expectations:(Page 223)
Variable cost per unit $10
Fixed cost 2,00,000
Expected unit sales 25,000
Find out the manufacturer’s unit cost, markup price (where
manufacturer wants a 10% markup on sales), and
Break-even volume.

Ans->
Variable cost per unit $ 10
Fixed cost 300,000
Expected unit sales 50,000
8. What is Marketing mix? What are the characteristics of Marketing
mix?
Ans->
According to Philip Kotler, ‘marketing mix is the mixture of controllable
marketing variable that the firm uses to pursue the sought level of sales
in the target market’

Therefore, the marketing mix indicates the appropriate combination of

four P’s—product, price, promotion, and place—for achieving
marketing objectives. The components are also known as marketing
mix variables or controllable variables as they can be used according to
business requirements. In 1960, E. Jerome McCarthy in his book, Basic
Marketing, popularized a four-factor classification, the so-called four
P’s—product, price, place, and promotion.

Characteristics/Features/Nature of Marketing Mix:

1. Marketing mix is the crux of marketing process:
Marketing mix involves many crucial decisions relating to each element
of the mix. The impact of the mix will be the best when proper
weightage is assigned to each element and they are integrated so that
the combined effect leads to the best results.
2. Marketing mix has to be reviewed constantly in order to meet the
changing requirements:
The marketing manager has to constantly review the mix and
conditions of the market and make necessary changes in the marketing
mix according to changes in the conditions and complexity of the
market.
3. Changes in external environment necessitate alterations in the mix:
Changes keep on taking place in the external environment. For many
industries, the customer is the most fluctuating variable of
environment. Customers’ tastes and preferences change very fast.
Brand loyalty and purchasing power also change over a period. The
marketing manager has to carry out market analysis constantly to make
necessary changes in the marketing mix.
4. Changes taking place within the firm also necessitate changes in
marketing mix:
Changes within the firm may take place due to technological changes,
changes in the product line or changes in the size and scale of
operation. Such changes call for similar changes in the marketing mix.
5. Applicable to business and non-business organization:
Marketing mix is applicable not only to business organizations but also
to non-business organizations, such as clubs and educational
institutions. For instance, an educational institution is expected to
provide the right courses (product), charge the right fees (price),
promote the institution and the courses, and provide the courses at the
right place.
6. Helps to achieve organizational goals:
An application of an appropriate marketing mix helps to achieve
organizational goals such as profits and market share.
7. Concentrates on customers:
A thorough understanding of the customer is common to all the four
elements. The focus point of marketing mix is the customer, and the
marketing mix is expected to provide maximum customer satisfaction.

CO5:
1. If the cost of direct material is 60%, direct labor is 10%, and
overhead is 25% of sales, what will be the improvement in profit if
direct material is reduced to 55%?
3. Write down the difference between stable and dynamic demand
curve.
Stable Versus Dynamic
The shapes of the demand patterns for some products or services
change over time whereas others do not. Those that retain the same
general shape are called stable and those that do not are called
dynamic. Dynamic changes can affect the trend, seasonality, or
randomness of the actual demand. The more stable the demand, the
easier it is to forecast. Figure 8.3 shows a graphical representation of
stable and dynamic demand. Notice the average demand is the same
for both stable and dynamic patterns. It is usually the average demand
that is forecast.
4. Demand over the past three months has been 120, 135, and 114
units. Using a three-month moving average, calculate the forecast for
the fourth month.
5. A company selling tennis rackets has a January demand of 5200
units and a July demand of 24,000 units. If the seasonal indices for
January were 0.5 and for June were 2.5, calculate the deseasonalized
January and July demand. How do the two months compare?

6. The forecast is 100 units a week. The actual demand for the past six
weeks has been 105, 110, 103, 105, 107,and 115. If MAD is 7.5,
calculate the sum of the forecast error and the tracking signal.
7. What are the reasons for which the need for Codification arises?

An article of stores is identified by its simple description or

nomenclature. Difficulty arises when the same article is known by
different names. For example, chipping goggles, grinder goggles, or
white goggles are one item but may be stored separately under same
nomenclature as different items. One storekeeper might classify an
item as Sal Ammoniac, whereas a research chemist might identify it
under the name of Ammonium Chloride, only to be told that it is not
available.

The need for Codification arises because of the following reasons:

(i) Speed,

(ii) Unambiguity,

(iii) Saving of Effort,

(iv) Space Saving on forms,

(v) Ease of classification,

(vi) Mechanization.
8. Based on nature how many types of materials are there?

Based on their nature, materials can be divided into:

(i) Direct Materials: Direct materials are items that can be identified
with a product or a group of products and can be easily measured and
charged directly into the product. These materials are part of the
finished product (e.g., timber in furniture).

(ii) Indirect Materials: These are materials that cannot be traced to a

specific product or be charged directly to various products. Indirect
materials do not form part of the product. Examples include repair and
maintenance stores, lubricating oils, and cleaning materials.

9. What are the basis of movement stores?

Based on the movement of stores (i.e., rate of consumption), stores

items may be divided into:

(i) Fast Moving Stock: Fast moving stock is exhausted rapidly due to
high demand from production departments.

(ii) Slow Moving Stock: This category consists of stores or materials

that are consumed or exhausted slowly due to limited demand from
the production departments.

(iii) Dormant Stock: This category consists of items that are not in
demand at present and may regain demand in the future. This category
includes seasonal materials, which are only required during specific
seasons.