1st Sem Assignment

7/31/2019 1st Sem Assignment

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Master of Business Administration- MBA Semester 1

MB0038Management Process and Organizational Behaviour - 4 Credits

Assignment Set- 1 (60 Marks)

Q1. State the characteristics of management.

Ans:- Management is a distinct activity having the following salient features or

characteristics:

1. Goal-oriented: Management is a purposeful activity. It co-ordinates the efforts of employees

to achieve the goals of the organization. The success of management is measured by the extent to

which the organizational goals are achieved. It is imperative that the organizational goals must

be well-defined and properly understood by the mangers at various levels.

2. Economic Resource: Management is one of the factors of production together with land,

labour and capital. It is the most critical input in the success of any organized group activity. It is

the force which assembles and integrates other resources, namely, labour, capital and materials.

These factors do not by themselves ensure production, they require the catalyst of management

to produce goods and services required by the society. Thus, management is an essential

ingredient of an organization.

3. Distinct Process: Management is a distinct process consisting of such functions as planning,

organizing, staffing, directing and controlling. These functions are so interwoven that it is not

possible to lay down exactly the sequence of various functions or their relative significance. In

essence, the process of management involves decision-making and putting of decisions into

practice.

4. Integrative Force: The essence of management is integration of human and other resources to

achieve the desired objectives. All these resources are made available to those who manage.

Managers apply knowledge, experience and management principles for getting the results from

the workers by the use of non-human resources. Managers also seek to harmonize the

individuals goals with the organizational goals for the smooth working of the organization.


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5. Intangible Force: Management has been called an unseen force. Its presence is evidenced by

the result of its efforts-orderliness, informed employees, buoyant spirit and adequate work

output. Thus, feeling of management is result-oriented. One may not see with the naked eyes the

functioning of management but its results are apparently known. People often remark of the

effectiveness (or ineffectiveness) of management on the basis of the end results, although they

cant observe it during operation.

6. Results through Others: The managers cannot do everything themselves. They must have the

necessary ability and skills to get work accomplished through the efforts of others. They must

motivate the subordinates for the accomplishment of the tasks assigned to them.

7. A Science and an Art: Management has an organized body of knowledge consisting of well-

defined concepts, principles and techniques which have wide applications. So it is treated as a

science. The application of these concepts, principles and techniques requires specialized

knowledge and skills on the part of the manager. Since the skills acquired by a manager are his

personal possession, management is viewed as an art.

8. System of Authority: Management as a team of managers represents a system of authority, a

hierarchy of command and control. Managers at different levels possess varying degrees of

authority. Generally, as we move down in the managerial hierarchy, the degree of authority getsgradually reduced. Authority enables the managers to perform their functions effectively.

9. Multi-disciplinary Subject: Management has grown as a field of study (i.e. discipline) taking

the help of so many other disciplines such as Engineering, Anthropology, Sociology and

Psychology. Much of the management literature is the result of association of these disciplines.

For instance, productivity orientation drew its inspiration from Industrial Engineering and human

relations orientation from Psychology. Similarly, Sociology and Operations Research have also

contributed to the development of management science.

10. Universal Application: Management is universal in character. The principles and techniques

of management are equally applicable in the fields of business, education, military, government

and hospital. Henri Fayol suggested that principles of management would apply more or less i


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Q2. What are the 14 principles of management of Henri Fayol?

Ans:- Henri Fayol, a mining engineer and manager by profession, defined the nature and

working patterns of the twentieth-century organization in his book, General and Industrial

Management, published in 1916. In it, he laid down what he called 14 principles of management.

This theory is also called the Administrative Theory. The principles of the theory are:

1. Division of work: tasks should be divided up with employees specializing in a limited set of

tasks so that expertise is developed and productivity increased.

2. Authority and responsibility: authority is the right to give orders and entails enforcing them

with rewards and penalties; authority should be matched with corresponding responsibility.

3. Discipline: this is essential for the smooth running of business and is dependent on good

leadership, clear and fair arguments, and the judicious application of penalties.

4. Unity of command: for any action whatsoever, an employee should receive orders from one

superior only; otherwise authority, discipline, order, and stability are threatened.

5. Unity of direction: a group of activities concerned with a single objective should be co-

coordinated by a single plan under one head.

6. Subordination of individual interest to general interest: individual or group goals must not be

allowed to override those of the business.

7. Remuneration of personnel: this may be achieved by various methods but it should be fair,

encourage effort, and not lead to overpayment.

8. Centralization: the extent to which orders should be issued only from the top of the

organization is a problem which should take into account its characteristics, such as size and the

capabilities of the personnel.

9. Scalar chain (line of authority): communications should normally flow up and down the line of

authority running from the top to the bottom of the organization, but sideways communication


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between those of equivalent rank in different departments can be desirable so long as superiors

are kept informed.

10. Order: both materials and personnel must always be in their proper place; people must be

suited to their posts so there must be careful organization of work and selection of personnel.

11. Equity: personnel must be treated with kindness and justice.

12. Stability of tenure of personnel: rapid turnover of personnel should be avoided because of the

time required for the development of expertise.

13. Initiative: all employees should be encouraged to exercise initiative within limits imposed by

the requirements of authority and discipline.

14. Esprit de corps: efforts must be made to promote harmony within the organization and

prevent dissension and divisiveness.

Q3. Distinguish between internal and external forces of change.

Ans:- Internal forces

Any change in organizations internal factors may also necessitate change. Such a change is

required because of two reasons: change in managerial personnel and deficiency in existing

organizational practices.

Change in the top management:Change in the top management and consequent change in the

ideas to run the organization also leads to change in the system, structure and processes. Old

managers are replaced by new managers which are necessitated because of retirement,

promotion, transfer or dismissal. Each new manager brings his own ideas and way of working

into the organization. The formal or informal relationships may change because of changes in top

management. Moreover, attitudes, ideology, leadership style of the person may be different from

the earlier one, this will reflect in their actions and decisions. The result is that an organization

has to change accordingly.


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Change in size of the organization: Change in the organizations size leads to change in the

internal structure and complexity of the operations in the organization.

Performance gaps: When a gap between set target and actual results (in terms of market share,

employee productivity and profit) is identified, organizations face the forces to change and

reduce the gap.

Employee needs and values: With changing needs and values of the employees, organizations

change their policies. For example, attractive financial incentives, challenging assignments,

vertical growth opportunities and autonomy at work may be provided in an organization to

attract and retain its effective employees.

Deficiency in existing organization: Sometimes, changes are necessary because of deficiency in

the present organizational arrangement and process. These deficiencies may be in the form of

unmanageable span of management, large number of managerial levels, lack of co-ordination

between various departments, obstacles in communication, multiplicity of committees, lack of

uniformity in policy decisions, lack of co-operation between line and staff and so on.

External forces

Each organization has goals and responsibility related to others in its environment. Thus, an

organization must not only deal with its environment in conducting its affairs, but also give

consideration to the goals of others, as it establishes its goals and conducts its operations. The

present-day environment is dynamic and will continue to be dynamic. Changes in social,

political, economic, technological, and legal environment force organizations to change

themselves. Such changes may result in organizational changes like major functions, production

process, labour-management relations, nature of competition, economic constraints, organization

methods, etc. In order to survive in the changing environment, organization must change.

Technology:Technological changes are responsible for changing the nature of the job performed

at all levels in an organization. When there is a change in technology in the organizations

environment and other organizations adopt the new technology, the organization under focus

becomes less cost-effective and its competitive position weakens. Therefore, it has to adopt new


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technology. When the organizations adopt a new technology, its work structures are affected and

a new equilibrium has to be established. We have seen that technology has impact on

organization structure, organizational processes, and behaviour of people. For example,

computers and automation have made significant impact on organizational functioning.

Business scenario: Due to rapid changes in the business scenario with increasing competition

and global economy, the needs and demands are also changing among the customers, suppliers

and other stakeholders. Organizations are, therefore, forced to change their operational methods

to meet the demands of the stakeholders. Since every organization exports its outputs to the

environment, an organization has to face competition in the market. There may be two types of

forces which may affect the competitive position of an organization other organizations

supplying the same products and, buyers who are buying the product. Any change in these forcesmay require suitable changes in the organization. For example, when Indian economy was

liberalized (the process still continues), there were many foreign organizations which entered the

Indian market. This forced many Indian organizations to re-align themselves with the new

situation. The result is that there have been many cases of divesting the business and

concentrating on the core business, acquiring core business, and developing competitive

competence to face competitive threats. Similarly, there may be changes in buyers in terms of

their needs, liking-disliking, and income disposal for a product. These changes force the

organizations to bring those products which meet buyers requirements.

Environmental and National factors: Environmental factors such as economic, political and

demographic and legal factors play a vital role in devising organizational policies and strategy.

Any change in these political and legal factors may affect the organizational operation. For

example, organizations may have to change their employment policies in accordance with the

government policy, demand of the non-government organizations and changing economic

conditions of a country.

Social changes: Social changes reflect in terms of peoples aspirations, their needs, and their

way of working. Social changes have taken place because of the several forces like level of

education, urbanization, feeling of autonomy, and international impact due to new information


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sources. These social changes affect the behaviour of people in the organization. Therefore it is

required to make adjustment in its working so that it matches with people.

Q4. Define emotional intelligence. Explain Golemans model of emotional intelligence.

Ans;- Emotional Intelligence - EI - is a relatively recent behavioural model, rising to

prominence with Daniel Golemans 1995 Book called Emotional Intelligence. The early

Emotional Intelligence theory was originally developed during the 1970s and 80s by the work

and writings of psychologists Howard Gardner (Harvard), Peter Salovey (Yale) and John Jack

Mayer (New Hampshire). Emotional Intelligence is increasingly relevant to organizational

development and developing people, because the EI principles provide a new way to understand

and assess peoples behaviours, management styles, attitudes, interpersonal skills, and potential.

Emotional Intelligence is an important consideration in human resources planning, job profiling,

recruitment interviewing and selection, management development, customer relations and

customer service, and more.

Ever since the publication of Daniel Golemans first book on the topic in 1995, emotional

intelligence has become one of the hottest buzzwords in corporate America. For instance, when

the Harvard Business Review published an article on the topic two years ago, it attracted a higher

percentage of readers than any other article published in that periodical in the last 40 years.When the CEO of Johnson & Johnson read that article, he was so impressed that he had copies

sent out to the 400 top executives in the company worldwide.

"Emotional intelligence is the capacity for recognizing our own feelings and those of others, for

motivating ourselves, for managing emotions well in ourselves and in our relationships." (Snow,

2001)

Golemans Model of Emotional Intelligence

Daniel Goleman and the Hay Group have identified a set of competencies that differentiate

individuals with Emotional Intelligence. The competencies fall into four clusters:


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Self-Awareness: Capacity for understanding one's emotions, one's strengths, and one'sweaknesses.

Self-Management: Capacity for effectively managing one's motives and regulating one'sbehavior.

Social Awareness: Capacity for understanding what others are saying and feeling andwhy they feel and act as they do.

Relationship Management: Capacity for acting in such a way that one is able to getdesired results from others and reach personal goals.

The most popular and accepted mixed model of emotional intelligence is the one proposed by

Goleman (1995). He viewed emotional intelligence as a total of personal and social

competences. Personal competence determines how we manage ourselves, whereas socialcompetence determines how we handle our interpersonal relationships.

Q5. Explain the different leadership styles as per ManagerialLeadership Grid Theory

Ans:- The Managerial and Leadership Grid

The Ohio studies led to two dimensions of leadership behaviour-concern for tasks and concern

for relations. Almost in the same style, the Michigan University studies made the distinction

between job-centred and production- centred leaders.

Blake and Mouton rated these concepts in a framework called the Managerial Grid. They

interpreted the concepts in a broad way. Blake and Mouton have used "ConcernforProduction"

and "Concernfor People"in their Managerial Grid on horizontal and vertical axes respectively.

Managers may be concerned for their people and they also must also have some concern for the

work to be done. The question is, how much attention do they pay to one or the other? This is a

model defined by Blake and Mouton in the early 1960s.It included

Impoverished management Authority-compliance Country Club management Middle of the road management


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coercive and legitimate powers. This inability results from fear that using such powers could

jeopardize relationships with the other team members.

3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate)

This believes in the authority-obedience. With a high concern for production, and a low concern

for people, managers using this style find employee needs unimportant; they provide their

employees with money and expect performance back. Managers using this style also pressure

their employees through rules and punishments to achieve the company goals. This dictatorial

style is based on Theory X of Douglas McGregor, and is commonly applied by companies on the

edge of real or perceived failure. This is used in case of crisis management.

People who get this rating are very much task-oriented and are hard on their workers (autocratic).

There is little or no allowance for co-operation or collaboration. Heavily task-oriented people

display these characteristics: they are very strong on schedules; they expect people to do what

they are told without question or debate; when something goes wrong they tend to focus on who

is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are

intolerant of what they see as dissent (it may just be someones creativity), so it is difficult for

their subordinates to contribute or develop.

4. The middle-of-the-road style (5, 5). The StatusQuo Leader. (Balance & Compromise)

It is Organization - man management approach,which believes that the adequate organization

performance is possible through balancing the necessity to get out wprk with maintaining morale

of people at satisfactory level. Managers using this style try to balance between company goals

and workers needs. By giving some concern to both people and production, managers who use

this style hope to achieve acceptable performance.

5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit)

This is based on the aspect that work accomplishment is from committed people;

interdependence through a common stake in the organization purpose leads to relationships of

trust and respect. In this style, high concern is paid both to people and production. As suggested


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techniques and programs. Based on the sources from where these members are drawn, there may

be three types of T-group: stranger-lab, cousin-lab, and family-lab. In the stranger-lab, all

participants are from different organizations and they are strangers to each other. In cousin-lab,

all participants are from the same organization but from different units.

Q2. Describe the bases of power.

Ans:-Bases of Power

Power can be categorized into two types: Formal and informal

A. Formal Power:

It is based on the position of an individual in an organization. Formal power is derived from

either ones ability to coerce or reward others or is derived from the formal authority vested in

the individual due to his/ her strategic position in the organizational hierarchy. For example, a

manager may threaten to withhold a pay raise, or to transfer, demote, or even recommend the

firing of a subordinate who does not act as desired. Such coercive power is the extent to which a

manager can deny desired rewards or administer punishments to control other people. The

availability of coercive power also varies across organizations. The presence of unions and

organizational policies on employee treatment can weaken this power base significantly. Formalpower may be categorized into four types which are as follows:

1. Coercive Power: The coercive power base is being dependent on fear. It is based on the

application, or the threat of application, of physical sanctions such as the infliction of pain, the

generation of frustration through restriction of movement, or the controlling by force of basic

physiological or safety needs. In an organization one can exercise power over another if they

have the power to dismiss, suspend, demote another assuming that the job is valuable to the

person on whom power is being unleashed.

2. Reward Power: The opposite of coercive power is reward power. Reward poweris the extent

to which a manager can use extrinsic and intrinsic rewards to control other people. Examples of

such rewards include money, promotions, compliments, or enriched jobs. Although all managers


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have some access to rewards, success in accessing and utilizing rewards to achieve influence

varies according to the skills of the manager.

3. Legitimate Power: The third base of position power is legitimate power, or formal

authority .It stems from the extent to which a manager can use subordinates internalized values

or beliefs that the boss has a right of command to control their behavior. For example, the

boss may have the formal authority to approve or deny such employee requests as job transfers,

equipment purchases, personal time off, or overtime work. Legitimate power represents a special

kind of power a manager has because subordinates believe it is legitimate for a person occupying

the managerial position to have the right to command. The lack of this is legitimacy will result in

authority not being accepted by subordinates.

4. Information Power: This type of power is derived from access to and control over

information. When people have needed information, others become dependant on them. (For

example, managers have access to data that subordinates do not have). Normally the higher the

level, the more information would be accessed by managers.

B. Personal Power

Personal power resides in the individual and is independent of that individuals position. Three

bases of personal power are expertise, rational persuasion, and reference.

Expert power is the ability to control another persons behavior by virtue of possessing

knowledge, experience, or judgment that the other person lacks, but needs. A subordinate obeys

a supervisor possessing expert power because the boss ordinarily knows more about what is to be

done or how it is to be done than does the subordinate. Expert power is relative, not absolute.

However the table may turn in case the subordinate has superior knowledge or skills than his/ her

boss. In this age of technology driven environments, the second proposition holds true in many

occasions where the boss is dependent heavily on the juniors for technologically oriented

support.

Rational persuasionis the ability to control anothers behavior, since, through the individuals

efforts, the person accepts the desirability of an offered goal and a viable way of achieving it.


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Rational persuasion involves both explaining the desirability of expected outcomes and showing

how specific actions will achieve these outcomes.

Referent poweris the ability to control anothers behavior because the person wants to identify

with the power source. In this case, a subordinate obeys the boss because he or she wants to

behave, perceive, or believe as the boss does. This obedience may occur, for example, because

the subordinate likes the boss personally and therefore tries to do things the way the boss wants

them done. In a sense, the subordinate attempts to avoid doing anything that would interfere with

the pleasing boss subordinate relationship. Followership is not based on what the subordinate

will get for specific actions or specific levels of performance, but on what the individual

representsa path toward lucrative future prospects.

Charismatic Poweris an extension of referent power stemming from an individuals personality

and interpersonal style. Others follow because they can articulate attractive visions, take personal

risks, demonstrate follower sensitivity, etc.

Q3. What are the hindrances that we face in perception?

Ans:-Following are the barriers to perception:

a) Selective perception - People selectively interpret what they see on the basis of theirinterests, background, experience, knowledge, exposure, and attitudes. The tendency to

see what we want to see using short cuts can make us draw unwarranted conclusions

from an ambiguous situation.

b) Halo EffectThis effect occurs when we draw a general impression on the basis of asingle characteristic. But what this experiment demonstrates is that although we can

understand the halo effect intellectually, we often have no idea when it is actuallyhappening. This is what makes it such a useful effect for marketers and politicians. We

quite naturally make the kinds of adjustments demonstrated in this experiment without

even realising it. And then, even when it's pointed out to us, we may well still deny it.


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Q5. Explain the four processes of Social Learning Theory.

Ans:- The social learning theory was proposed by Bandura. It recognizes the importance of

observing and modeling the behaviors, attitudes, and emotional reactions of others. According to

Bandura (1977), most human behavior is learned observationally through modeling: from

observing others one forms an idea of how new behaviors are performed, and on later occasions

this coded information serves as a guide for action. Social learning theory explains human

behavior in terms of continuous reciprocal interaction between cognitive, behavioral, and

environmental influences.

Social learning has four processes:

1. Attention processesPeople learn from a model only when they recognize and pay attention

to its critical features. In order to learn, it is required to pay attention. Anything that detracts the

attention is going to have a negative effect on observational learning. If the is model interesting

or there is a novel aspect to the situation, it is more likely to dedicate the full attention to

learning.

2. Retention processes A models influence will depend on how well the individual

remembers the models action after the it is no longer readily available. The ability to store

information is also an important part of the learning process. Retention can be affected by a

number of factors, but the ability to pull up information later and act on it is vital to

observational learning.

3. Motor reproduction processesAfter a person has seen a new behavior by observing the

model, the watching must be converted to doing. The ability to store information is also an

important part of the learning process. Retention can be affected by a number of factors, but the

ability to pull up information later and act on it is vital to observational learning.

4. Reinforcement processesIndividuals will be motivated to exhibit the modeled behavior if

positive incentives or rewards are provided. Finally, in order for observational learning to be

successful, you have to be motivated to imitate the behavior that has been modeled.

Reinforcement and punishment play an important role in motivation. While experiencing these


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As per Sheldon`s theory of personality, below are the traits that Ms. Chanchal can derive:

Mr. Ravi represents Mesomorph body type. He is well-proportioned. Psychologicallyhe is Adventurous, Courageous, Indifferent to what others think or want, Assertive/bold,

Zest for physical activity, Competitive, With a desire for power/dominance, And a love

of risk/chance

Mr. Gineesh represents Ectomorph body type. Psychologically he is Self-conscious,Private, Introverted, Inhibited, Socially anxious, Artistic, Intense, Emotionally restrained,

Thoughtful

Mr. Ramgopal represents Endomorph body type. Psychologically he is Sociable, Fun-loving, Love of food, Tolerant, Even-tempered, Good humoured, Relaxed, With a love of

comfort, And has a need for affection.


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Master of Business Administration Semester I

MB0039Business Communication - 4 Credits


Q1.List the importance of effective communication in the workplace

Ans:-The Importance of Communication in the Workplace

Communication is the nerve center of business today. As you go up the corporate ladder, you

will find that communication skills are required, more than technical skills. Communication

research has revealed that among the factors most important for managerial success,

communication skills rank above technical skills. Several surveys conducted among people who

have been successful in their professions have indicated that communication skills are more vital

to job success than subjects taken in college.

Communication has assumed even greater importance today, since the new model of business is

based on teamwork, rather than on individual action. Teamwork requires greater coordination

and communication.

Communication is also required all the more in this age of information and technology. Without

communication and human skills, technology will overwhelm an organization. Communication

helps to make sense of technology and to manage all this information. For example,

communication is required to explain a new computer program or software. While computers can

perform routine tasks, jobs like responding to customers needs require a high degree of

communication skills.

Effective communication serves the following specific purposes in an organization

Greater Awareness of Organizational Goals and Teamwork When there is opencommunication between superiors, co-workers and subordinates, there is smooth flow of

information regarding the goals of the organization. Coordination between the different

departments in particular, leads to greater motivation to work together towards achieving

a common organizational goal, rather than working in isolation.


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Better Employer-employee Relationships By listening to employees, showingempathy and giving them the freedom to express their opinions without fear of being

repressed, a manager can create a climate of openness that leads to better work

relationships. Employees will then feel more comfortable in approaching their superiors

and discussing any matter with them.

Problem-solving Effective communication can help resolve conflicts between co-workers, work related and performance related problems. Faceto-face communication is

especially suited for achieving this task, since it is one to one and highly personalized in

nature.

Improved Performance Effective communication by managers at the time ofappraising the performance of their employees can point out areas for improvement. A

constructive review of performance, through which a manager gives positive feedback

and counsels the employee, instead of criticizing him for poor performance, can motivate

the employee to perform better.

Stronger Link between Managers and the External Environment Apart frominternal communication within the organization, effective communication by managers

with external audiences such as customers, government, bankers, media and suppliers

leads to a better rapport with them.A manager will be able to understand the needs of his

customers, be aware of the presence of quality suppliers of material, of governmentregulations and of the expectations of the community at large, only through proper

communication.

Q2. Explain the different aspects of non-verbal communication

Ans:- Different aspects of non-verbal communication in detail-

1. KinesicsThis is the most often studied and important area of non-verbal communication and

refers to body movements of any kind. Different body movements can express inner states of

emotion.


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2. Proxemics Proxemics is derived from the word proximity or closeness and is the

communication term for personal space and distance. The space and distance which we choose

to keep from people is also part of non-verbal communication. Each of us has our own inner

and outer circles, which differ for different people.

Our inner most circle is an intimate space, into which we generally admit only select people

such as family and close friends. Next comes a personal space which might include other

friends and colleagues or coworkers. These two spaces involve communication of an informal

nature.

Most of us also have a social and public space, which includes official or workplace

relationships, where the communication is of a more formal nature.

In a business context, it is more relevant to understand the concept of fixed space and semi-

fixed space.

Fixed space means that the physical features of the work environment such as furniture, room

size and seating arrangement are permanent. This conveys an impression of formality. On the

other hand, semi-fixed space means that certain elements of the environment can be changed

for example, the seating arrangement could be changed and this conveys an impression of

informality.

Sometimes, use of space at the workplace can determine leadership positions. For example,

seating at the head of the table conveys leadership or authority. A round table meeting, however,

conveys the idea of equality, since no one can be seated at the head of the table! All points of a

circle are the same. That is why when heads of state meet (as in UN Security Council meetings),

it is always a round table discussion, since all heads are equal.

Space should therefore be used carefully in a work environment, so as to convey the right

impressions.


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3. Time Language This refers to the meaning or importance attached to time and varies

between different people. One person may value time more than another. Similarly, time

language also varies across cultures.

In most western cultures for example, punctuality is considered to be important. Arriving late for

a business meeting is inexcusable. In other cultures, it is more relaxed and time is not given that

much importance.

We convey messages to others through the time we spend on a work related activity or by the

importance that we give to time. Arriving early at work or for a job interview shows interest,

involvement and seriousness. Spending time with an employee and giving him suggestions on

how to improve his performance shows interest and involvement in his career growth.

4. Paralanguage Para means like or similar to, therefore paralanguage means like

language. Of all the forms of non-verbal communication, paralanguage is closest to verbal

communication. It refers to the tone of voice with which something is said. In other words, it is

how something is said,and not what is said. The tone of voice includes the pitch (high or

low pitch), the pace (slow or fast) the emphasis on words and the volume (soft or loud) and can

convey different moods and emotions, as mentioned earlier in this unit.

Example: The statement I practice good business communication can be understood in

different ways, depending on the emphasis on certain words.

SayingI practice good business communication means that I alone practice it above anyone

else. On the other hand, saying I practice good business communication could be interpreted

to mean that you communicate particularly well in a business context, rather than in a general

context.

The important point to keep in mind regarding tone of voice is to avoid mixed signals that is,

making sure that what you say is consistent with how you say it.

5. Physical ContextThis refers to the physical environment or surroundings within which

we communicate and includes two aspects1) color and layout and 2) design.


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Colors are known for their symbolic meaning and have associations with different feelings. For

example, colors like black and grey are associated with death, mourning and negative feelings.

Yellow and green are associated with more positive feelings. Of course, these can also vary

across cultures. The point to remember is that you can make the right impressions with use of the

right colors.

Layout in a work environment refers to the size of an office, or the arrangement of furniture.

Design refers to the type of chairs, desks or carpeting. All these can convey status, formality or

informality.

We have seen how the types of non-verbal communication outnumber the types of verbal

communication. Non-verbal communication is an important supplement to verbal

communication and can enhance verbal communication, if used in a positive way. The sender

should use the right non-verbal cues to convey a positive message, while the receiver should

learn to look for unintended messages conveyed by non-verbal communication.

Q3. Write short notes on (a) Upward communication (b) Downward communication (c)

Horizontal communication

Ans:-

(a) Upward Communication

This may be defined as information that flows from subordinates to superiors. Some of the

reasons for upward communication include discussing work related problems, giving suggestions

for improvement and sharing feelings about the job and co-workers.

This type of communication has both benefits and disadvantages. One of the biggest benefits is

problem-solving. Once a subordinate has brought a problem to his superiors notice, chances are

that the problem will not recur, since the subordinate learns from his superior how to tackle it the

next time. Thus, his ability to solve new problems and therefore his managerial ability, improves.

Another benefit that could arise from upward communication is that valuable ideas and


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suggestions may sometimes come from lower level employees. Therefore organizations should

encourage this kind of communication.

A third benefit is that employees learn to accept the decisions of management and thereby work

as a team.

The biggest problem associated with this type of communication is that it may lead to handing

down of decisions by superiors. When subordinates frequently seek the superiors guidance, the

latter may adopt an authoritarian approach and merely give instructions, disregarding the

subordinates opinion completely.

(b) Downward Communication

This may be defined as information that flows from superiors to subordinates. The most

common reasons for downward communication are for giving job instructions, explaining

company rules, policies and procedures and giving feedback regarding job performance. A

number of studies have indicated that regular downward communication in the form of feedback

given to employees is the most important factor affecting job satisfaction. Therefore

organizations today are trying to encourage more of this type of communication.

There are both benefits and disadvantages associated with this type of communication.

Downward communication that provides regular feedback will be beneficial if the feedback or

review of performance is constructive. A constructive review is one where a manager counsels

an employee, or advises him on how to improve his performance. On the other hand, a

destructive review can destroy employee morale and confidence. Regular downward

communication also creates a climate of transparency or openness, where information is passed

on through official channels, rather than through rumors.

Thirdly, downward communication boosts employee morale, since it indicates that management

is involved in their progress.


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The problems with this type of communication are the danger of doing destructive reviews, as

mentioned, and that of message overload. This means that superiors many sometimes burden

their subordinates with too many instructions, leading to confusion.

(c) Horizontal Communication

This type of communication is also known as lateralcommunication. It may be defined as

communication that takes place between co-workers in the same department, or in

different departments, with different areas of responsibility. For example, Sales Managers and

Advertising Managers in the Marketing department, or Marketing Managers and Finance

Managers.

The reasons for this type of communication are for coordination of tasks, sharing of information

regarding goals of the organization, resolving interpersonal or work related problems and

building rapport.

The biggest potential benefit of horizontal communication is the sense of teamwork that is

created. Regular communication of this type ensures that all co-workers work together towards

achieving a common goal in the overall interest of the organization. The biggest potential

problem is that conflicts such as ego clashes are bound to arise, when co-workers at the same

level communicate on a regular basis.

In spite of these problems, horizontal or lateral communication has become more important in

todays business scenario than upward or downward communication. This is because the

organizational pyramid indicating the different hierarchies or levels in an organization

has flattened. This is illustrated by the diagrams given below.


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The first diagram illustrates the previous organizational pyramid which was a multi-layer

pyramid. In this type of pyramid, vertical, i.e., upward and downward communication still plays

an important role. This is still the case in many traditionally run organizations today.

However, this has been replaced by a compressed or flattened pyramid where the hierarchy

has diminished, as shown in the second diagram. Thanks to technology and computers which

help in faster decision making, a manager today has a larger span of control. He or she can

supervise and control more number of people than before. This in turn has led to greater

empowerment, which means that even lower level employees are now being given decision

making authority. Therefore, in the absence of several layers, there is greater lateral

communication than before.


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Q4.Explain the different barriers to listening .List the differences between discriminative

listening and comprehension listening

Ans:-Barriers to Listening

As pointed out earlier, listening is not easy and there are a number ofobstacles that stand in the

way of effective listening, both within and outside the workplace. These barriers may be

categorized as follows

1. Physiological Barriers This was discussed earlier under the barriers to communication.

Some people may have genuine hearing problems or deficiencies that prevent them from

listening properly. Once detected, they can generally be treated. Other people may have

difficulty in processing information, or memory related problems which make them poor

listeners. Another physiological barrier is rapid thought. Listeners have the ability to process

information at the rate of approximately 500 words per minute, whereas speakers talk at around

125 words per minute. Since listeners are left with a lot of spare time, their attention may not be

focused on what the speaker is saying, but may wander elsewhere.

2. Physical BarriersThese refer to distractions in the environment such as the sound of an air

conditioner, cigarette smoke, or an overheated room, which interfere with the listening process.

They could also be in the form of information overload. For example, if you are in a meeting

with your manager and the phone rings and your mobile beeps at the same time to let you know

that you have a message; it is very hard to listen carefully to what is being said.

3. Attitudinal BarriersPre-occupation with personal or work related problems can make it

difficult to focus ones attention completely on what a speaker is saying, even if what is being

said is of prime importance. Another common attitudinal barrier is egocentrism, or the belief that

you are more knowledgeable than the speaker and that you have nothing new to learn from his

ideas. People with this kind of closed minded attitude make very poor listeners.

4. Wrong AssumptionsThe success of communication depends on both the sender and the

receiver, as we have seen in an earlier unit. It is wrong to assume that communication is the sole

responsibility of the sender or the speaker and that listeners have no role to play. Such an


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1. Discriminative Listening

This is the most basic type of listening, whereby the difference between the sounds is

identified. Unless the differences between the sounds are identified, the meaning expressed by

such differences cannot be grasped.

Once we learn to distinguish between sounds in our own language, we are able to do the same in

other languages. One reason why people belonging to one country find it difficult to speak the

language of another country is that they find the sounds similar and cannot understand the subtle

differences.

2. Comprehension Listening

Once we have learnt to discriminate between the different sounds, the next step is to try to

comprehend the meaning of these sounds. In order to do this, we require a dictionary of words,

along with the rules of grammar and syntax. Apart from the verbal communication, we also need

to understand the meaning conveyed by the speakers nonverbal behavior. This can be achieved

by closely observing various aspects of the speakers body language and tone of voice.

Q5.Discuss the principles of business writing

Ans:- Principles of Business Letter Writing

Business letters are used primarily to communicate with external stakeholders such as

consumers, intermediaries, government and bankers. The principles of business letter writing are

somewhat different from the principles of writing general letters. Business letters are much more

formal than general letters. Before we go into the specifics of business letter writing, let us look

briefly at some of these principles-

* Consideration and Courtesy It is very important to retain the goodwill of customers and

other external publics. A discourteous, rude letter can make you lose business. Therefore, the

business letter should be extremely polite at all times and mindful of the Ps and Qs, i.e., the

words please, thank you and sorry. Even if you happen to get a rude letter from a customer,

you must respond politely, in order to retain the customer.


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1. Date in the upper right hand corner

2. The To address above the salutation in the upper left hand corner.

3. The SalutationWhen addressing a firm, Messr should be used before the name of the

firm. Since business letters are formal, the appropriate salutation when addressing an

individual is Dear Mr./Ms., followed by the last name, rather than the first name, which is

informal. If the gender of the reader is not known, it is better to use a neutral salutation, such

as Dear Customer or Investor.

4. Sometimes, an Attention Line may be included below the salutation, in order to ensure

prompt action. For example, Attention : John Smith, HR Manager.

5. A Subject Line indicates the purpose of the letter and is placed between the salutation

and the first line of the letter.

6. The Body of the letter includes an explanation of the main idea(s).

7. The Close is the ending of the letter and should be polite and friendly, so as to retain

goodwill. A standard close for a business letter is Yours faithfully or sincerely.

8. EnclosuresSometimes, a business letter may include an enclosure such as a pamphlet or a

brochure, in which case this should be indicated at the end, below the signature line, as Encl

: 2, meaning two enclosures.

Q6. Explain the advantages of oral communication with the help of suitable example.

Ans:-Advantages of Oral Communication

To recap briefly what was discussed in Unit 2, oral communication has some advantages

compared to written communication. These include its personal quality, high interactivity,

possibility of making immediate contact, instantaneous feedback and control over the receivers

attention.

Oral communication was also classified into oral face-to-face communication (meetings and

presentations) and oral non face-to-face communication (teleconferencing, telephone and voice


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mail).While face-to-face meetings are more effective than non face-to-face communication in

most ways, they are expensive and impractical sometimes, due to the distance factor. Thanks to

advances in technology, meetings today can still take place without being face-to-face, through

teleconferencing. Teleconferencing allows participants at distant locations to speak and

sometimes to see each other. Apart from the high cost and the difficulty in setting it up,

teleconferencing has the same advantages as oral face-to-face communication.

Example Several retailers like Walmart, the worlds largest retailer, make use of

teleconferencing to keep their US headquarters in touch with their store managers worldwide.

Some headhunters also make use of the facility to conduct preliminary interviews and shortlist

candidates based in other countries, before inviting them for a face-to-face interview.

Many multi-national corporations and large Indian organizations also use this facility

extensively.

In spite of its advantages, teleconferencing will not replace face-to-face meetings completely,

since it is unsuitable for certain types of communication that involve brainstorming, negotiations,

persuasion and problem solving.

Telephone communication, another form of non face-to-face communication, has the biggest

advantage of being able to contact a receiver who would be impossible to reach in person.

Today, mobile phones have made it even easier to contact people who are on the move.

Telephone communication also has a personal quality and permits the use of some non-verbal

cues such as tone of voice, to enhance the communication.

Voice mail is a type of telephone communication and is similar to an answering machine.

Although it is generally inferior to speaking in person to the other party, it has some advantages.

When you leave a recorded message, you can make your point felt and save time that might be

wasted in exchanging pleasantries. Invitations can also be declined without having to give an

explanation or reason, or having the other person talk back. Thus, there is greater control over

how the message is composed and delivered. Besides, voice mail also makes it possible to keep a

permanent record of the communication, unlike other types of oral communication. In spite of

these advantages however, voice mail has not caught on in India.


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business letter should be extremely polite at all times and mindful of the Ps and Qs, i.e., the

words please, thank you and sorry. Even if you happen to get a rude letter from a customer,

you must respond politely, in order to retain the customer.

If the company has been at fault, it is important to apologize to the customer for the mistake and

for the inconvenience caused. The overall tone should not be negative. For example, avoid

saying We cannot grant your request. Instead state it in a more tactful way, explaining the

reasons for not being able to grant the request. If you are sending a job rejection letter to a

candidate, it should be worded politely and in a positive tone.

Consideration means that you should appeal to the readers interest. The importance of stressing

the you attitude rather than the me attitude was dealt with in an earlier unit. This is similar to

the language of advertisements, which talk about the benefits of the product to the end user.

For example, instead of saying We will be open 24 hours, say You can avail of round-the-

clock service.

* Directness and Conciseness Business letters should be brief and to the point, avoiding

unnecessary details and round about expressions. A typical Indian tendency is to be too wordy or

verbose, using redundancies and unnecessary words. Business letters should give maximum

information to the reader, using minimum words.

* Clarity and PrecisionBusiness letters should be clearly worded, avoiding the use of jargon

or technical terms, and slang words. Concrete words should be used, so that there is no

ambiguity.

Example: Instead of saying I received your communication, it is better to be more precise by

saying I received your letter.

The letter should include a single main idea and paragraphs should be used to elaborate on sub

ideas.

* AppearanceApart from the content, the format, layout and overall look of the letter should

be equally appealing to the reader. Attention should be paid to the quality of paper used. The


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margins should be appropriate, including one inch on each side and one and a half inches on top

and at the bottom.

A business letter should include the following standard components

1. Date in the upper right hand corner

2. The To address above the salutation in the upper left hand corner.

3. The SalutationWhen addressing a firm, Messr should be used before the name of the

firm. Since business letters are formal, the appropriate salutation when addressing an

individual is Dear Mr./Ms., followed by the last name, rather than the first name, which is

informal. If the gender of the reader is not known, it is better to use a neutral salutation, such

as Dear Customer or Investor.

4. Sometimes, an Attention Line may be included below the salutation, in order to ensure

prompt action. For example, Attention : John Smith, HR Manager.

5. A Subject Line indicates the purpose of the letter and is placed between the salutation

and the first line of the letter.

6. The Body of the letter includes an explanation of the main idea(s).

7. The Close is the ending of the letter and should be polite and friendly, so as to retain

goodwill. A standard close for a business letter is Yours faithfully or sincerely.

8. EnclosuresSometimes, a business letter may include an enclosure such as a pamphlet or a

brochure, in which case this should be indicated at the end, below the signature line, as Encl

: 2, meaning two enclosures.

Q4. Write short notes on (a) corporate identity advertising (b) institutional advertising

Ans:-

(a) Corporate Identity Advertising


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This type of corporate advertising is done purely to communicate the organizations corporate

identity, such as its name, logo(e.g. the Nike swoosh), trademark or brand name and slogan.

When the organizations identity changes, this is communicated through corporate advertising.

Example The American fast food outlet, Kentucky Fried Chicken, changed its name to

KFC, to remove the association with fried, greasy chicken. This name change was

communicated through corporate identity advertising.

(b) Institutional Advertising

This type of corporate advertising is aimed at special publics such as the media, suppliers and

dealers, to correct communication problems with them.

Q5. Discuss the different types of business reports

Ans:-Types of Business Reports

Reports may be classified based on several criteria, including their use (progress reports and

financial reports), purpose (informational, analytical and persuasive reports), frequency of

preparation (annual, monthly, weekly and hourly reports), length (short and long reports) and

whether they are internal to the business, or are used outside the business.

The most common types of business reports may be divided into the following categories

1. Periodic reportsThese are reports that are prepared on a regular basis, for both internal

and external audiences. Their purpose is solely to inform. Examples of this type of report are

a) Routine management reports These are reports such as equipment reports and sales

updates and are prepared for internal audiences.

b) Compliance reportsThese are submitted to external stakeholders, such as the government,

stating compliance with regulations such as environmental norms.


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c) Progress reports These reports may be prepared for both internal audiences such as top

management and shareholders, as well as for external audiences such as customers. A project

report stating progress on a long-term project is an example of this type of report.

2. ProposalsUnlike periodic reports, the purpose of a proposal is to persuade. Proposals

may be prepared for both internal and external audiences. Examples of proposals include

research proposals and marketing strategy proposals to top management, proposals to the

government to grant funds for building a research facility and proposals to consumers to buy a

companys products.

3. Policies and ProceduresThe purpose of these reports is solely to inform. They are also

prepared only for internal audiences. Examples include reports on company policies and

procedures, written by top management and sent to all employees. This is part of downward

communication.

4. Situational reports These are one-time, exceptional reports that are prepared when a

unique event occurs. For example, if sales of the company has shown a significant decline, a

study may be carried out to determine the reasons for declining sales and a report prepared on the

findings. Similarly, a market feasibility study may be carried out before launch of a new product

and a report prepared, based on the study. The purpose of such reports is usually to inform,analyze and persuade.

Q6. List the different steps involved in report preparation

Ans:-Steps in Report Preparation

Since reports are a key to the success of any business, they should be carefully planned,

organized, written and presented. A lot of groundwork should precede the actual writing of the

report. We shall briefly discuss the five main steps in report preparation

1. Planning the reportThe first question to be asked before gathering information and writing

the report, is regarding the type of report that is required. We classified reports into four main


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types, based on the purpose, the audience to whom they are addressed and the frequency of the

report.

Secondly, it must be remembered that most reports are required by management to solve a

problem, or to make a decision. Therefore, the basis, or starting point for a report is a problem.

Reports are written after a problem is analyzed and a solution to the problem is found. The

problem may be of a day-to-day nature, such as determining which brand of overhead projector

to recommend for purchase. Or, the problem may be a negative one, such as sales of the

company showing a decline. In any case, the problem is the single fundamental issue to be

addressed in the report and should be clearly determined, right at the outset.

Once the problem has been defined, it must be broken up into sub issues or sub problems, by

asking the questions what, why, when, where and

who?.

ExampleSuppose the purpose of a study is to survey clerical salaries in public sector banks in

Bangalore city, in order to determine whether salaries in your bank are competitive and

consistent. The problem may be broken up as follows

What?A study of clerical salaries

Why?To determine whether salaries in our firm are competitive and consistent

When?Current

Where?Bangalore city

Who?Clerical employees in public sector banks

Asking the above questions determines the exact scope of the study and reduces the problem to a

workable size.


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The next step in planning the report is to do an audience analysis. We have seen that reports

may be addressed to internal or external audiences of an organization. Some of the questions to

be asked about the audience, or the reader of the report are

Is the audience internal or external to the organization? Who is the specific audience or reader? - for example, top management, customers or the

government? Reports written for the government and for top management should be more

formal than for other audiences.

Is the audience known to you? What is the level of knowledge of the audience? Is the topic familiar to the reader? If the

report is of a technical nature and the reader is a layperson, the technical terms may need

detailed explanation.

What is the level of interest of the reader? If the report has been solicited or authorized,the readers level of interest will be high. On the other hand, if the report is voluntary or

unsolicited, it may have to sustain reader interest.

2. Selecting a Method to Solve the Problem After defining the problem and doing an

audience analysis, a method has to be selected to collect the necessary information to solve the

problem. Broadly, information may be gathered using secondary research methods, such as

books, magazines, newspapers, internet and other available sources, or through primary

researchmethods, such as surveys that provide first hand information.

3. Gathering and Organizing Data Once the method of gathering information has been

selected, the actual process of gathering the information begins. Since this is time consuming and

expensive, only information that is relevant to the report and the study must be gathered. The raw

data should be evaluated for its usefulness and organized in a form that is meaningful to

understand. Tables, charts, graphs and summaries should be used to do this.

4. Arriving at a Conclusion Once the information has been checked for its validity and

reliability, it must be interpreted and conclusions drawn. Correct interpretation of the data is

needed for the success of the report. Sound conclusions cannot be made if the interpretation of


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the data is faulty. A common mistake made in the interpretation of data is the tendency of the

researcher to use subjective judgments, instead of objective reasoning based on facts.

5. Writing the Report The actual process of writing the report should begin only after a

satisfactory solution to the problem has been found. As pointed out earlier, a well written report

that contains a bad answer is worse than a badly written report that contains a good answer.


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MBA SEMESTER 1

MB0040STATISTICS FOR MANAGEMENT- 4 Credits


Q1. What are the functions of Statistics? Distinguish between Primary data and Secondary

data.

Ans:-Functions of Statistics

Statistics is used for various purposes. It is used to simplify mass data and to make comparisons

easier. It is also used to bring out trends and tendencies in the data as well as the hidden relations

between variables. All this helps to make decision making much easier. Let us look at each

function of Statistics in detail.

1. Statistics simplifies mass data

The use of statistical concepts helps in simplification of complex data. Using statistical concepts,

the managers can make decisions more easily. The statistical methods help in reducing the

complexity of the data and consequently in the understanding of any huge mass of data.

2. Statistics makes comparison easier

Without using statistical methods and concepts, collection of data and comparison cannot be

done easily. Statistics helps us to compare data collected from different sources. Grand totals,

measures of central tendency, measures of dispersion, graphs and diagrams, coefficient of

correlation all provide ample scopes for comparison.

3. Statistics brings out trends and tendencies in the data

After data is collected, it is easy to analyse the trend and tendencies in the data by using the

various concepts of Statistics.

4. Statistics brings out the hidden relations between variables


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Statistical analysis helps in drawing inferences on data. Statistical analysis brings out the hidden

relations between variables.

5. Decision making power becomes easier

With the proper application of Statistics and statistical software packages on the collected data,

managers can take effective decisions, which can increase the profits in a business.

Differences between primary and secondary data

Q2. Draw a histogram for the following distribution:

Age 0-10 10-20 20-30 30-40 40-50

No. of

people 5 10 15 8 2

Ans;-

Below figure displays the histogram for the distribution of age data.


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Figure: Histogram for the distribution of age

We join the upper left corner of highest rectangle to the right adjacent rectangles left corner and

right upper corner of highest rectangle to left adjacent rectangles right corner. From the

intersecting point of these lines we draw a perpendicular to the X-axis. The X-reading at that

point gives the mode of the distribution.

If the widths of the rectangles are not equal then we make areas of rectangles proportional and

draw the histogram

Q3. Find the median value of the following set of values: 45, 32, 31, 46, 40, 28, 27, 37, 36, 41.

Ans:-

Arranging in ascending order, we get:

27, 28, 31, 32, 36, 37, 40, 41, 45, 46

We have, n = 10

The median for the given set of values is 36.5
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Q5. An unbiased coin is tossed six times. What is the probability that the tosses will result

in: (i) exactly two heads and (ii) at least five heads.

Ans:-

Let A be the event of getting head. Given that:

Binominal distribution is =

i) The probability that the tosses will result in exactly two heads is given by:

Therefore, the probability that the tosses will result in exactly two heads is 15/64.

ii) The probability that the tosses will result in at least five heads is given by:

Therefore, the probability that the tosses will result in at least five heads is 7/64.

Q6. Explain briefly the types of sampling

Ans;-Types of Sampling

By choosing a sample technique carefully, errors can be minimised. Let us take a look at the

different techniques available. The sampling techniques may be broadly classified into.

i) Probability Sampling
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ii) Non-Probability Sampling

1 Probability sampling

Probability sampling provides a scientific technique of drawing samples from the population.The technique of drawing samples is according to the law in which each unit has a predetermined

probability of being included in the sample. The different ways of assigning probability are:

i) Each unit has the same chance of being selected.

ii) Sampling units have varying probability

iii) Units have probability proportional to the sample size

We will discuss here some of the important probability sampling designs.

Simple random sampling

Under this technique, sample units are drawn in such a way that each and every unit in the

population has an equal and independent chance of being included in the sample. If a sample unit

is replaced before drawing the next unit, then it is known as Simple Random Sampling With

Replacement [SRSWR]. If the sample unit is not replaced before drawing the next unit, then it is

called Simple Random Sampling without replacement [SRSWOR]. In first case, probability of

drawing a unit is 1/N, where N is the population size. In the second case probability of drawing a

unit is 1/Nn.

Stratified random sampling

This sampling design is most appropriate if the population is heterogeneous with respect to

characteristic under study or the population distribution is highly skewed.

We subdivide the population into several groups or strata such that :

i) Units within each stratum is more homogeneous


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ii) Units between strata are heterogeneous

iii) Strata do not overlap, in other words, every unit of population belongs to one and only one

stratum

The criteria used for stratification are geographical, sociological, age, sex, income and so on. The

population of size N is divided into K strata relatively homogenous of size N1,

N2.Nk such that N1 + N2+ + Nk= N.

Then, we draw a simple random sample from each stratum either proportional to size of stratum

or equal units from each stratum.

The table 7.3 displays the merits and demerits of stratified random sampling.

Table 7.3: Merits and demerits of stratified random sampling

Merits Demerits

1. Sample is more representative 1. Many times the stratification is

not effective

2. Provides more efficient estimate 2. Appropriate sample sizes are not

drawn from each of the stratum

3. Administratively more convenient

4. Can be applied in situation where

different degrees of accuracy is desired

for different segments of population

Systematic sampling

This design is recommended if we have a complete list of sampling units arranged in some

systematic order such as geographical, chronological or alphabetical order.

Suppose the population size is N. The population units are serially numbered 1 to N in some

systematic order and we wish to draw a sample of n units. Then we divide units from 1 to N

into K groups such that each group has n units.


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The total population is divided into several stages. The sampling process is carried out through

several stages. It is represented as in figure 7.8.

The table 7.6 displays the merits and demerits of multi-stage sampling.

Table 7.6: Merits and demerits of multi stage sampling

Merits Demerits

Greater flexibility in sampling

method

Estimates are less accurate

Existing division can be used Investigator should have knowledge of the

entire population that will be sampled

2 Non-probability sampling

Depending upon the object of enquiry and other considerations a predetermined number of

sample units is selected purposely so that they represent the true characteristics of the population.

A serious drawback of this sampling design is that it is highly subjective in nature. The selection

of sample units depends entirely upon the personal convenience, biases, prejudices and beliefs of

the investigator. This method will be more successful if the investigator is thoroughly skilled and

experienced.

Judgment Sampling

The choice of sample items depends exclusively on the judgment of the investigator. The

investigators experience and knowledge about the population will help to select the sample
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units. It is the most suitable method if the population size is less. The table 7.7 displays the

merits and demerits of judgement sampling.

Table 7.7: Merits and demerits of judgement sampling

Merits Demerits

1. Most useful for small population 1. It is not a scientific method.

2. Most useful to study some unknown

traits of a population some of whose

characteristics are known.

2. It has a risk of investigators

bias being introduced.

3. Helpful in solving day-to-day

problems.

Convenience sampling

The sample units are selected according to convenience of the investigator. It is also called

chunk which refers to the fraction of the population being investigated which is selected

neither by probability nor by judgment.

Moreover, a list or framework should be available for the selection of the sample. It is used to

make pilot studies. However, there is a high chance of bias being introduced.

Quota sampling

It is a type of judgment sampling. Under this design, quotas are set up according to some

specified characteristic such as age groups or income groups. From each group a specified

number of units are sampled according to the quota allotted to the group. Within the group the

selection of sample units depends on personal judgment. It has a risk of personal prejudice and

bias entering the process. This method is often used in public opinion studies.


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Master of Business Administration- MBA Semester 1

MB0040Statistics for Management - 4 Credits

Assignment Set - 2 (60 Marks)

Q1. Explain the following terms with respect to Statistics: (i) Sample, (ii) Variable, (iii)

Population.

Ans:-Basic Terms Used in Statistics

Statistics, being a specialised subject, has a number of terms which have to be used. You need to

know and understand these terms in order to do any statistical work. Let us get you acquainted

with some of the basic terms used in Statistics.

1 Sample

A sample is a part or subset of the population. By studying the sample, you can predict the

characteristics of the entire population from where the sample is taken. The data that describes

the characteristics of a sample is known as statistic.

If the population is large, it is hard to collect data. Hence, a part of the population is chosen to

study the characteristics of the entire population. The size of the sample can never be as large as

the size of the population. Proper care must be taken while choosing the samples. In the figure

2.3, a sample of three consumers is drawn from the entire population of eight consumers.

2 Variable

In a population, some characteristics remain the same for all units and some others vary from

unit to unit. The quantitative characteristic that varies from unit to unit is called a variable. The

qualitative characteristic that varies from unit to unit is called an attribute.

A variable that assumes only some specified values in a given range is known as discrete

variable. A variable that assumes all the values in the range is known as continuous variable. For

example, the number of children per family and number of petals in a flower are examples of

discrete variables. The height and weight of persons are examples of continuous variables.


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(ii) range of the following data: 15, 17, 22, 21, 19, 26, 20.

The arithmetic mean is given by:

Therefore, the arithmetic mean is 20.

Q4. Suppose two houses in a thousand catch fire in a year and there are 2000 houses in a

village. What is the probability that: (i) none of the houses catch fire and (ii) At least one

house catch fire?

Ans;- Given the probability of a house catching fire is:

and

Therefore, the required probabilities are calculated as follows:

i. The probability that none catches fire is given by:

Therefore, the probability that none of the houses catches fire is 0.01832.

ii. The probability that at least one catches fire is given by:

Therefore, the probability that at least one house catches fire is 0.98168.
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Q5. (i) What are the characteristics of Chi-square test?

Ans:- The following are the characteristics of Chi-Square test (c2 test).

The c2 test is based on frequencies and not on parameters It is a non-parametric test where no parameters regarding the rigidity of population of

populations are required

Additive property is also found in c2 test The c2 test is useful to test the hypothesis about the independence of attributes The c2 test can be used in complex contingency tables The c2 test is very widely used for research purposes in behavioral and social sciences

including business research

It is defined as:

where, O is the observed frequency and E is the expected frequency.

Q5 (ii) The data given in the below table shows the production in three shifts and the

number of defective goods that turned out in three weeks. Test at 5% level of significance

whether the weeks and shifts are independent.

Shift

1st

Week

2nd

Week

3rd

Week Total

I 15 5 20 40

II 20 10 20 50

III 25 15 20 60Total 60 30 60 150

Ans:- Observed and expected values required to calculate c2.

Observed and expected values for data
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Q6. Find Karl Pearsons correlation co-efficient for the data given in the below table:

X 20 16 12 8 4

Y 22 14 4 12 8

Ans:-

Solution:Applying the formula for r and substituting the respective values from the table we

get r as:

Sums related to solved problem

X

Y X2 Y2 XY

20 22 400 484 440

16 14 256 196 224

12 4 144 16 48

8 12 64 144 96

4 8 16 64 32

X = 60 Y = 60 X2 = 880 Y2 = 904 XY = 840

Solution:Applying the formula for r and substituting the respective values from the table we

get r as:

Hence, Karl Pearsons correlation coefficient is 0.70.


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BSC in Indian Company

Tata Motors Commercial Vehicles Business Unit

Consisting of three plants in India, and supported by a nationwide sales and service network,

Tata Motors Commercial Vehicles Business Unit (CVBU) manufactures the full range of

commercial vehicles, such as 60-seat buses and 6x4 off-road vehicles. With a workforce of over

26,000, CVBU serves over 60% of the Indian market and is one of the top 10 truck

manufacturers in the world. The CVBU has a top financial objective of being among the wo rlds

top five profitable commercial vehicle manufacturers, which is supported by growth and cost

themes and objectives.

Scorecard Commencement

CVBU began its scorecard implementation in 2000, in support of efforts to reverse several years

of poor financial performance. A new strategy, crafted by the leadership team headed by the then

new Executive Director (essentially CEO) Ravi Kant focused first on turnaround to be followed

by sustainable growth and profitability through being the lowest-cost producer.

The scorecard was chosen as the preferred strategy implementation tool following the attendance

by several senior managers at a seminar delivered by Dr. Norton.

Benefits

And thus far the benefits from deploying the scorecard have been impressive. For instance,

between 2001 and 2003 revenues grew by 40% (to a least double that of its nearest competitor).


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Note that from April December 2002 total volume sales of commercial vehicles was 72,612

units, which

1st Sem Assignment

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