INSTITUTE OF

MANAGEMENT
STUDIES

SESSION :2021-2023
MBA :–Marketing Management
Section:(A)
SEM :1

SUBMITTED TO : SUBMITTED BY :
Dr. Navindra Totla Akanksha Dubey
CONTENT

 Inflation Accounting
 Human Resource
Accounting
 Budget Planning
 Types
 Control System
 Overhead variance
introduction and analysis
Inflation
Accounting

 Inflation accounting comprises a range

of accounting models designed to
correct problems arising from
historical cost accounting in the
presence of
high inflation and hyperinflation .

 Inflation accounting is not fair value

accounting. Inflation accounting, also
called price level accounting, is similar
to converting financial statements into
another currency using an exchange
rate.
Methods of inflation Accounting

 There are two main

methods used in
inflation accounting —
current purchasing
power (CPP) and
current cost accounting
(CCA). 
Current Purchasing Power
(CPP)
 Under the CPP method, monetary items  and non-monetary
items are separated.
 The accounting adjustment for monetary items is subject to
the recording of a net gain or loss.
 Non-monetary items (those that do not carry a fixed value)
are updated into figures with a conversion factor
equivalent to price index at the end of the period divided by
price index at the date of transaction.
 Current Cost Accounting
(CCA)
 The CCA approach values assets at their fair market value(FMV)
rather than historical cost, the price incurred during the
purchase of the fixed asset.

 Under the CCA, both monetary and non-monetary items

are restated to current values.
Advantages and
Disadvantages
Human
Resource
Accounting
 Human Resource Accounting (HRA)
is the process of identifying, and
reporting investments  made in
the Human Resources  of an
organisation that are presently
unaccounted for in the
conventional accounting practice.

 It is an extension of standard
accounting principles.

 Measuring the value of the human

resources can assist organisations in
accurately documenting their assets .
Methods of
Human
Resource
Accounting
GROUP DEVELOPMENT
STAGES OF GROUP
EVELOPMENT
Forming: Storming : Norming :
• The initial stage of group • Is the next stage that is • The third stage in group
development, characterized characterized by a high degree of development, characterized by
predominantly by much conflict among the members. close relationships and
uncertainty among the group cohesiveness.
members.

Performing :
• The fourth stage in group
development , during which the
group is fully functional.
Adjourning:
• The final stage in group
development, after achieving the
objectives for which it was
created, starts to gradually dissolve
itself.
 Tuckman’s stages of group
development

 Members are positive and

polite. Team members behave
independently. Mature team
members begin to model
appropriate behaviour.
Members are in the stage of
gaining knowledge (tasks &
procedures).
Tuckman's stages of group
development

 Members start to push against

the boundaries established in
the forming stage Members
are trying to see how the
team will respond to
differences Members are
resisting the control by the
group leaders This is the
stage where many teams fail
ROUP properties
 ROLES
 NORMS
 STATUS
 SIZE
 SOCIAL LOAFING
 COHESIVENESS
 A set of expected behavior patterns attributed to
someone occupying a given position in a social
unit.
 We are required to play a number of diverse
roles
 Different group impose different role
requirements on individuals .
 Role identity :
Certain attitudes and behaviors consistent with a role.
Have the ability to shift roles as per the need of the situation.
 Role Perception :
An individual’s view of how he or she is supposed to act in a given
situation.
 Roles Expectation:
How others believe a person should act in a given situation.
 Role conflict :
A situation in which an individual is confronted by divergent role
expectations.
 Classes of Norms: Acceptable standards of behavior within
• Performance norms a group that are shared by the
group’s member.
• Appearance norms

• Social arrangement norms

• Allocation of resources norms

 Powerful means of influencing
behavior
 Performance Norms 
 A socially defined position or rank given to groups or group members
by others. What determines status
 Status derived from one of three sources:
a) The power a person wields over others .
b) A person’s ability to contribute to group’s goals
c) Individual’s personal characteristics
 Does the size of a group affect the group’s overall behavior?
Answer is : Yes.

 Smaller groups are faster at completing task.

 Large groups are good for gaining diverse input
and problem solving
VENESS Increasing group cohesiveness:

 Make the group smaller.

 “Degree to  Encourage agreement with group
goals.
which group  Increase time members spend together.
members are  Increase group status and admission
difficultly.
attracted to each  Stimulate competition with other
other and are groups.
 Give rewards to the group, not
motivated to stay individuals.
in the group”  Physically isolate the group
UP Structure
 Group has a fixed structure. The areas of working
are divided according to the interest or skill
required. Group may have a leader.
 Leadership that is imposed on the group by the
organization.
 Leaders who derive their power from the positions
they occupy in the organizational structure.
Formal leaders may or may not also be the
informal leaders of the groups in which they
function.
OUP PROCESS
It refers to the communication patterns used by
members for
 Information Exchanges.
 Group decision Processes.
 Leader Behavior.
 Power Dynamics.
 Conflict Interactions.
Group processes are significant as they can create
output greater than the sum of their inputs.
ors influencing
up Process
 External Factors
 Internal Factors
ERNAL FACTOR
External Factors influencing on Group Processes

 Organization’s overall strategy

 Authority structures
 Formal regulations
 Resource constraints
 Selection process
 Performance and evaluation system
 Organization’s culture
 Physical work setting
NAL FACTOR

Internal factors:

 Interpersonal relationship of group members

 Coordination of group members
 Group Structure
 Group Norms
 Social loafing
 Group Decision making
 Majority
 Minority
 Groupthink
THANK YOU!