MANAGEMENT PROGRAMME Term.End Examination---- . June, 2006 F"' " r ii,' MS-1 : MANAGEMENT FUNCTIONS AND . ..:'.. I I :: BEHAVIOUR Time : 3 hours MaximumMarks: 700 (Weightage 700/o) Nofe : (i) There qre two Sections A qnd B. (ii) Attempt any three questions t'rom Section A, each question carrying 20 marks. (iii) Section B is compulsory snd cqrries 40 mqrks. SECTION A l. What kind of decisions is a manager generally required to make in organisational context? Explainwith examples as to which of these correspond to programmed and non-programmed categories. 2. Define 'Planning'. Discuss variouscomponents that would make a plan effecti,b and successful in achieving its objectives. Explainwith relevant examples. MS-1 P.T.O.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
(ii) Attempt any three questions t'rom Section A, each
question carrying 20 marks.
(iii) Section B is compulsory snd cqrries 40 mqrks.
SECTION A
l. What kind of decisions is a manager generally required to
make in organisational context ? Explain with examples as
to which of these correspond to programmed and
non-programmed categories.
2. Define 'Planning'. Discuss various components that would
make a plan effecti,b and successful in achieving its
objectives. Explain with relevant examples.
M S - 1 P . T . O .
-
3. Why do people generally resist change ? Do personal
factors play a role in this process ? Brieflg discuss the
common coping strategies for change.
4. How would you differentiate between a successful and an
effective leader ? Enumerating various leadership theories,
briefly discuss various aspects of the Managerial Grid
l neorv.
5. Write short notes on any three of the following :
(i) Managerial values and Ethos
(ii l Socialisation process in an organisation
' (iii) Management Information Systems
(iv) Johari Window
(v) MBO
M S - 1
IlrIt
SECTION B
6" Please read the case and answer the questions given at the
end.
Roy, the president and founder of Electric
Manufacturing Corporation (EMCORP) is wondering how
he can follow the advice of his doctor, who had told him
to take it easy after last year's coronary attack. EMCORP
manufactures a full line of fractional horsepower electric
motors sold to both original equipment manufacturers and
distributors throughout the country. At present, the
company employs approximately 1,000 people.
Roy, an engineer, has maintained tight control over
all major functions throughout the years, and though each
of the heads of the engineering, manufacturing, sales,
finance and personnel departments has the title of
vice-president, they come to Roy for approval before
making any change in procedure. Usually, each of these
executives sees Roy several times a day. Thrj personnel
director once suggested a weekly meeting, but Roy voted
fhe idea as too time consuming. Now. worried about his
health as well as the problems of the company, Roy is
beginning to feel the need for some relief from the
constant pressure.
The manufacturing
rising costs, consistent
M S - 1
department shows a picture of
failure to meet deliverv schedules,
P . T . O .
-1
and an increasing nurnber of quality complaints. John,
Vice President Manufacturing, admits to poor
performance, but says that the cost ligures from
accounting are pure history and of no use since they do
not reach manufacturing until the fifteenth of the month
following the month in which the work is completed. He
states that his failure to meet delivery schedules is due
almost entirely to the fact that the sales department
makes unrealistic promises, and does not bother to check
manufacturing schedules. John attributes most of the
quality problems to the incessant flow of engineering
changes that come without warning and with no time to
work out the production problems present in all new
products. Roy admits to himself that he had asked Smyth,
Vice President Engineering, to put all the approved
changes into production immediately.
The vice president and general manager of sales,
Rita, recognizes that she has no knowledge of the
manufacturing schedules and realizes that she, too, is
being criticized by Roy for many broken promises in
regard to delivery dates. Howevgr, Rita's chief complaint
at the present time is the result of having sold a large
order of standard motors to a distributor having a supply
of replacement parts in stock, and then discovering that
engineering had changed specifications : a change that
made all replacement parts in the field obsolete. Another
irritant for Rita is the tightening of credit requirements
M S - 1
instituted by the finance department withoui prior
consultation with the sales department. Again, Roy admits
to himself that it is the same engineering change which
caused so much trouble in manufacturing that is causing
trouble for the sales department and making obsolete the
existing stock of replacement parts. He also realizes that
at his request, due to an unusually short cash position,
the finance department tightened up on credit
requirement.
Questions
(a) Define the major problem of EMCORP'smanagement.
(b) Will the formation of a committee be of any value inihis situation ? If a committee is needed, assign atitle to the committee and indicate who should bemembers of the committee ?
(c) In the event that Roy decides to retire, will thepresence of a committee make it easier or moredifficult for Rov's successor ? Discuss.
M S - 1 1 2 , O O O
MANAGEMENT PROGRAMME
Term-End Examination
, June,. 2006
MS-2 : Pre-Revised : MANAGING MEN
Revised : MANAGEMENT OFHUMAN RESOURCES
Time :3 hours Mqximum Marks: 700(Weightage 70%)
Note :
' (i) There are two Secfions A and B.
| (in Section A hos two sels : Set I is meant for the
t s tudents who hque registered t'or this course prior
to Jahuary, 2005 i.e. upto June, 2004. Set Il ismeant t'or the students who haue registered for this
se t'rom January, 2005 onwqrds.cour.
(iii) Attempt any four questions from Section A. AIIquestions carry 20 msrks eqch.
(iu) Section B is compulsory t'or all and cqrries20 mqrks.
MS-2 P.T.O.
l .
2 .
3 .
4 .
5 .
6 .
SECTION A
(Set I)
(Pre-Revised)
Define Job Analysis, Job Description and Job
Specification. Discuss the relationship between the three'
Explain the process for evaluating jobs, wittr suitable
examples.
Define personnel management. Whai are the objectives of
personnel management ? Explain the relevance of
personnel department in an organisation, with the help of
illustration.
Discuss the process involved in selection. How does it differ
from recruitment ? Briefly explain the methods of selection'
Distinguish between motivation and morale. Discuss the
significance of morale and its relationship to productivity'
What are the features of trade unions ? Review the status
and problems of trade unions in India. Suggest how trade
unions can be made an elleclive tool for IR.
Write short notes on any three of the following :
(il Performance appraisal
(ii) Training and develoPment
(iii) Successionplanning
(iv) Wage boards
(v) Employers' association
MS-2
I
SECTION A
(Set II)
(Revised)
l. De{ine Human Resource Management and distinguish it
from traditional personnel management' Describe the
major comPonents of HRM'
2. Discuss the methods and techniques o{ recruitment' what
are the advantages of recruiting from external sources ?
JustifY Your answer
3. Answer the following :
(a) What ate the principles in designing an HRD
sYstem ?
(b) Whqt are the different components of job analysis ?
4. Explain the concept of performance appraisal and its
objectives. Briefly discuss the methods of performance
aPPraisal.
5. Discuss the causes and effects of grievance' Outline the
features.of a grievance procedure and the steps involved in
it.
6. Discuss the level and forms of Workers' Participation in
Management (WPM) Compare the forms of WPM in
GermanY and Yugoslavia'
MS-2 3 P 'T 'O '
SECTION B
7. Please read the case and answer the questions given at theend.
The company Ross was founded in the name ofits president, Michael Ross, about twelve years ago.Mr. Ross had developed a highly sensitive equipment,which instantly found use in defence and civilianproduction fields. As a consequence, the company grewvery rapidly. It had fifteen employees at the beginning.After ten years of its successful operation the strength of,its employees increased to 1,000.
As of today, the company's top managementconsists of Mr. Ross's earliest associates, many of whomare . around fifty years of age. They are, a highlyself-confident group who have worked together closelyover the years. However, trbuble started when thecgmpany had to face severe competition from othercompanies. This led to considerable decline in profitmargins. Also, the cost of manufacturing rose too high,and there was much confusion and divided responsibilityin management. Most decisions were made by the topmanagement group and there was little delegation ofauthority. Many recently hired executives complained that
i
MS-2
their ideas were given very little consideration by the top
management and that there was little or no chance for
their upgradation. As a consequence' some of the
recently hired executives had started leaving the company
to join elsewhere.
Questions :
(a) What sort of human resource development
programmes do you suggest for company Ross ?
(b) As a Director (HR), what would be your role in
introducing organisational change activities in Ross ?
MS-2 1 2 , 0 0 0
MANAGEMENT PROGR/NI,IME
Term-End Examination
June, 2006
MS-3 : ECONOMIC AND SOCIALENVIRONMENT
Time :3 hours Maximum Marks , 700
(Weishtage 70%)
Note : There sre two Sections Aqny three questions from20 marks each. Section B
carries 40 marks.
and B. Attempt
Section A, carrying
is compulsory and
SECTION A
1. Briefly describe the critical elements of macro-economic
environment and explain how they are relevant from the
standpoint of both corporate business management and
national economic management.
2. What do you understand by 'social responsibility' of
business ? Explain various dimensions of social
responsibility of business, citing relevant examples in this
respect.
20
20
MS-3 P.T.O.
3 .
4.
Elaborate the role of planning in a mixed economy
framework.
Broadly describe the components of Balance of Payments(BoP) account. Should the rupee be made convertible on
the capital account ? Discuss.
Examine the steps taken by the Govemment to implement
the recommendations of the Narasimhan Committee on
the financial sector.
5.
MS-3
SECTION B
6. Comment on any three of the following statements : 20
(a) The best protection to consumers is the full play ofmarket forces.
(b) Industrial sickness is essentially a managerial failure.
(c) India's imports are more crucial (than exports) to theeconomy.
(d) Liberalisation, privatisation and globalisation are themeans to achieve certain goals of the society.
(e) The role of public sector is as significant andindispensable as the role of private sector in theindustrialisation of a developing economy.
7. Write short notes on any three of the following : 20
(i) Industrial Licensing
(ii) UnorganisedSector
(iii) Export Processing Zones and Export Oriented Units
(iv) Foreign Investment Promotion Board (FIPB)
(v) Inflation
3MS-3 12,000
MANAGEMENT PROGRAMME
Term-End Examination
June, 2OOG
MS-4 : ACCOUNTTNG AND FTNANCE FORMANAGERS
Time :3 hours Maximum Marks: L00
(Weightage 70%o)
Note : Attempt any fiue questions. AII questions carryequal marks.
l. (a) What is Internal Audit ? What functions areundertaken by an Internal Auditor ? How doesInternal Audit differ from External Audit ? Explain.
(b) Explain the Business Entity concept, Accrualconcept and Consistency concept of Accounting.
MS-4 P.T.O
2. Messrs E. Traders is a firm of two partners Mr' S and
Mr. N dividing profits and losses in the ratio of 3 : 2' The
following are the balances in their ledger as on 31tt March'
2005.
CaPital
Mr. S
Mr. N
Drawings
Mr. S
Mr. N
40,000
26,000
16,000
14,000
Sundry Creditors
Goodwill
Cash in hand
Sundry Debtors(Less provision for B/D for Rs. 2,130)
Stock (1-4-2004)
Plant and MachinerY (1-4-2004)
Balance with Bank of India
Bad Debts
Buildings (as on 1-4-2004)
Purchases (Less Returns of Rs. 4'038)
Sales (Less Returns of Rs. 23,463)
Carriage outwards
Wages
Land
60/o Loan on Mortgage
Interest on Mortgage loan
32,L5\
15,000
100
58 ,170
74,577
21 ,000
7,065
1,575
30,000
1,53,336
3,25,275
7 , 0 1 0
46,455
6,000
(Cr.) 28,500
1 ,185
MS-4
Salaries
Carriage inwards
Rent and Rates
Gas, Water and ElectricityInsurance (for the period 1_1_2005 to37-72-2005)
Advertisement
Cash discount received
Cash discount allowedInvestments
General expenses
Bills Payable
Bills Receivable
Dividends Received
Prepare the Trading and profit and Loss Account and theBalance Sheet after making the following adjustments :(1) (i) Depreciation is to be provided for on plant and
Machinery at lOo/o p.a. and on Building at 60/op .a .
(ii) Provide for rent payable for February andMarch 2005 at Rs. 300 p.m.
(iii) Provision ior B/D must be maintained at 5%o ofdebtors.
(iv) Provide interest on capital at l0o/o p.a. Nointerest on drawings.
(2) Purchases included plant and Machinery costingRs. 3,000 purchased on 1't April 2004.
79,297
2,797
6,000
2,760
5 1 3
9,792
3,300
1 ,680
15,000
77,790
8,840
5,400
750
MS-4P.T.O.
(3) The Manager is entitled to a commission of 100/o of
net profits after charging his commission but before
interest on capital accounts of partners'
(4) The closing stock was Rs' 16'800'
3. Explain the concepts of Operating Leverage and Financial
Leverage and discuss their significance in business
decisions. What will be the effect on net income' return on
equity and earnings per share if the use of these leverages
is considerable and there is a small change in sales ?
Explain clearlY.
4. Comment on the following statements :
(a) Companies with very high profits generally have a
low PaYout ratio'
(b) Cost of debt is always cheaper as compared to other
sources of iunds'
(c) Where cash flows are uncertain' the principle will be
"grealet the variability, the higher the minimum cash
balance."
(d) "Opportunity cost should be taken into account
while evaluating the profitability of a project'"
5. (a) How would you compare the actual performance of
. a business with the budgeted performance ? Discuss
the important ratios used for this purpose'
(b) Distinguish between a Flexible Budget and a Rolling
Budget. What purposes do they serve ? Explain'
MS-4
t
6. The comparative Balance Sheets of B. Company Ltd. areindicated in condensed form as under :
31tt March 31tt March2005 2004
Fixed Assets 5,20,000 4,90,000
Less Depreciation 1,40,000 1,08,000
3,80,000 3,72,000
50,000 1,00,000
90,500 55,600
1 ,67 ,800 1 ,19 ,300
47,500 49,900
7,200
7,35,800 7,02,900
Investment at cost
Stocks
Sundry Debtors
Cash and Bank Balance
Preliminary expenses
Share Capital
Equity shares of Rs. 100each issued for cash
General Reserve
Surplus in P&L a/c
Sundry Creditors
Proposed Dividend
Provision for taxation
4,00,000
60,000
33,450
1,95,350
15,000
32,000
3,60,000
1,10 ,000
20,450
1,33,650
28,800
50,000
7,35,800 7,02,900
MS-4 P.T.O.
The net profii for the year (after providing for depreciation
Rs. 40,000, writing off Preliminary expenses Rs' 7,200
and making provision for taxation (Rs. 32,000) amounted
to Rs. 38,000.
The company sold during the year old machinery costing
Rs. 9,000 for Rs. 3,000. The accumulated depreciation
on the said machinery was Rs. 8,000.
A portion of the Company's investment became worthless
and was written off to general reserve. The cost of such
investment was Rs. 50,000.
During the year the Company paid an interim dividend of
Rs. 10,000 and the directors have recommended a final
dividend of Rs. 15,000 for the year 2004 - 05'
Prepare (a) Statement of Sources and Application of Funds
and (b) Schedule of Working Capital Changes.
7. The following data are obtained from the records of a
factory :
Sales 4000 units @ Rs. 25 each
Material consumed Rs. 40,000
Variable overheads 10,000
Rs. 1,00,000
Labour charges
Fixed overheads
20,000
18,000 88,000
MS-4
Net Profit 1 2 . 0 0 0
Calculate :
(a) The number of units the company should sell so thatthere is neither any loss nor any gain.The sales needed to earn a profit of 2}o/oon sales.The extra units which should be sold to obtain thepresent profit if it is proposed to reduce the sellingprice by 20o/o and 2|o/o.
The selling price to be fixed to bring down itsbreak-even point to SCiO units ,ndn, ih" presentconditions,
(b)
(c)
(c)
8. Write explanatory notes on :(a) Sales - price Variance
(b) Price - Earnings Ratio(c) Operating profit and Net profit
(d) Amortisation of Intangible Assets(e) Capitalisation of Earnings
MS-4
H
12,000
-
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-s : MANAGEMENT OF MACHINESAND MATERIALS
Time : 3 hours Maximum Marks : 700
(Weightage 70olo)
Note : Section A hos fiue questions thqt carry 20 morks
each. Attempt ony three questions lrom this
Section. Section B is compulsory and carries
40 marks.
SECTION A
l. (a) Discuss with suitable examples, the process of
launching a new product in the market. Explain with
the help of suitable examples.
MS-5 P.T.O.
(b) A manufacturing firm has three proposals for a
product. Either it can be purchased from an outside
vendor at Rs. 4'00 per unit or it can be manufactured
in-plant. There are two alternatives for in-plant
manufacturing. Either, a fully automatic unit is
procured, involving fixed cost of Rs. 30,000 and
variable cost of Rs. 2'75 per unit. Alternatively, a
semi-automatic unit would cost Rs. 20,000 as fixed
cost and Rs, 3'00 per unit as variable cost.
Draw a break-even chart for these alternatives'
Suggest range of production-volume suited for these
alternatives.
Describe value analysis. How does the purchasing
department contribute in the value analysis
program ?
Product A consists of three B type sub-assemblies and
one C type sub-assembly. The sub-assembly B consists
of one D, one E sub-assembly, and one F. The
sub-assembly C consists of a G and an F' The
sub-assembly E consists of a D and a K.
(i) Prepare a product tree.
(iil Prepare the Bill of Materials.
(iii) Determine the number of each sub-assembly/
components required to produce fifty units of
10+70
2. (a)
(b)
MS-5
item A. 70+7O
3. (a) What is FMS ? What is the general field of FMSapplication ? Is the field of FMS application significantin terms of the potentiar market size for itscapability ? State with reference to any production unit.A company produces 4g00 parts per day and sells*T
"-, approximately half of that rate. the's"r_up .ostis Rs. 1,000 and carrying cost is Rs. 5 per unit. Theannual demand is 4,g0,000 units. Find :'
(b)
Does MRP lead to reduction in inventory costs ?Justify your answer.
(i) Optimal lot size.(ii) Number of production runs that should
scheduled per year.(iii) Length of each production run.
sequenced through the process using these times :
be
10+10
4. (a)
(b) There..are seven jobs that must be processed in twooperations : A and B. All seven jobs must go throughA and B in that sequence _ A first, then B. Determinethe optimal order in which the jobs should be
10+10
P.T.O.
Job Process A Time Process B Time1
23
4
5
6.
9
8
7
6
1
2
4
6
5
7
3
2
6
7
MS.5
5. (a) What factors are most important in determining the
Iocation of the following ? Briefly explain the reasons
for your answer'
(i) A steel Plant
(ii) A PaPer mill
(iii1 An automobile rePair shoP
(iv) A distribution warehouse
Processing times (including set-up times) and due
dates for f i ve jobswai t ing tobeprocessedatawork
centre are given in the following table' Determine
,n" ,nqunn.e of jobs' the average flow- time' average
job lateness and average number of jobs at the work
centre, for each o{ these rules :
' (i) Shortest processing time (SPT)
(iil Earliest due date (EDD)
Due date(Days from nowlJob
A
B
cD
E
Processingtime (DaYs)
7 2
6
L4
3
7
15
24
20
8
6
(b)
70+70
MS-5
l6SECTION B
The R&D department is planning to bid on a large projectfor the development of a new communication system forcommercial planes. The accompaning table shows theactivities, times and sequences required.
(a) Draw the network diagram.
(b) Find the critical path.
(c) Find the project completion time.
(d) Calculate the total float for each of the activities. 20
P.T.O.
ImmediatePredecessors
EstimatedDuration (months)
A
B
cD
E
F
G
H
I
J
K
A
A
A
A
B
C , D , E
F
G
H
I , J
6
2
5
7
1
2
3
6
7
8
4
MS.5
7. Write short notes on any tout of the following :
(a) Preventivemaintenance
(b) TaxonomY of waste
(c) Learning curve
(d) Job enrichment
(e) Automatedstorage/retrieval
(0 StandardisationandCodification
4x5=20
MS.59,000
-
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-6 : MARKETING FOR MANAGERS
Time : 3 hours Maximum Marks : 700
(Weightage 700/o)
Nofe :
- (i) Attempt any three questions t'rom Section A.
ftt Section B is compulsory.
(ii i) AII questions carry equal marks.
SECTION A
1. (a) Explain the concept of Marketing Mix. Discuss the
rationale for extended marketing mix for services.
(b) How do the 4 Ps vary across the product lile cycle ?
Discuss with the help of a suitable example.
2, To fight against dowry system, the Government of a state
approaches you as a leading social marketing firm to
alleviate and curb this menace. Prepare a complete social
marketing proposal outlining the four Ps and how they will
be applied to the programme.
IV5-6 P.T .O.
-
3. (a) In what- way is the knowledge of the Indian
consumer environment a prerequisite for marketers
in the design and development of suitable
marketing plans ? Discuss.
(b) Discuss the role of packaging in market
development, with suitable examples.
4. Write short notes on ang three of the following :
(a) Measuring Advertising Effectiveness
(b) FunctionalOrganisation
(c) Pricing methods for a new product
(d) Functions of Wholesalers and Retailers
(e) Pitfalls of Cyber Marketing
M5-6
SECTION B
5. Read the case given below and answer the questions givenat the end.
CASE
Japanese manufacturers dominate the world motorcycle market. They have models in every part of themarket and are continually bringing out new versions;indeed, some critics think that the rate of new modelintroduction has become counter productive, since themarket will not be able to absorb them all.
Harley-Davidson, the American manufacturer, hassurvived and is successfully selling its nostalgically styledmodels at high prices in major western markets. TheBritish industry, which once led the world, disappearedcompletely. All leading Indian motor cycles are beingmanufactured in joint ventures with Japanese companies.There are some manufacturers in Europe who tend tospecialize e.g. in high powered sports models or smallmopeds.
Quesfions ..
(a) How would you go about segmenting the market formotor cycle ?
(b) what segments would you recommend an Indianmanufacturer to tackle in (i) India, (ii) Eurooe ?
M5-69,000
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-7 : INFORMATION SYSTEMS FORMANAGERS
Time :3 hours Maximum Marks: 700
(Weightage 700/o)
Note :
(i) Attempt any three questions t'rom Section A.
(ii) Section B is compulsory snd contains twoquestions.
(ii l All questions carry equal marks.
SECTION A
l. (a) What do you mean by an Information system andhow does it help in business ?
(b) What are the different components of a computer
hardware system ? What is an open sourcesoftware ?
MS-7 P.T.O.
2. (a) "MIS has become very important in modern
organisations." Explain this giving suitable examples.
(b) Discuss data life cycle.
3. (a) Discuss the need to protect each component of
computer.
(b) Discuss programmed and non programmed decisionsgiving their salient features.
4. (a) Distinguish between information and knowledge.
Develop an information system for human resource
department.
(b) Explain how a properly developed information
system contributes to business development and
company profits.
5. (a) Briefly explain the features of VISUAL BASIC.
(b) Write in detail about Data Warehousing and its
application.
MS-7
SECTION B
6. Discuss the steps involved in Systems analysis and design'
What specific considerations are required for proper
implementation and maintenance ?
7. (a) Explain Intranet and Intemet giving examples'
(b) "E-commerce has emerged as a vital component in
today's business." Explain giving features and
constraints.
L MS7 9.000
j
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-8 : OUANTITATIVE ANALYSIS FOR
MANAGERIAL APPLICATIONS
Time :3 hours Mqximum Marks : 100
(Weightqge 700/o)
Nofe :
(i) Section A hqs six questions' each carrying
75 mqrks. Attempt ony four quest ions'
(i0 Section B is compulsory ond carries 40 morks'
AttemPt both ques;tions'
(ii l Stotisticol tobles may be supplied on demqnd'
SECTION A
1. List and discuss various statistical techniques which are
useful to a decision maker in solving problems. clearly state
the purpose of these techniques and hence highlight the
advantages of quantitative approach to management'
MS-8I
P . T . O .
2. Calculate the average deviation fromfollowing series :
the mean for the
Sales No. of days
4 0 - 5 0 1 0
5 0 - 6 0 l 5
6 0 - 7 0 25
7 0 - 8 0 30
8 0 - 9 0 72
90 - 100 8
An insurance salesman sells policies to 5 men, all ofidentical age and good health. According to acturial tables,the probability that a man of this particular age will be alive30 years hence is 2/3. Find the probability that 30 yearshence
(i) at least 1 man will be alive.
(ii) at least 3 men will be alive.
470 heads were obtained in 1000 throws of an unbiasedcoin. Test the hypothesis that the coin is fair. Use 570 levelof significance.
4.
5. In a certain book, the frequenry distribution of the numberof words per page may be taken as approximately normalwith mean 400 and standard deviation ZS. lf a page ischosen at random, what is the probability that the numberof words lies between 415 and 4SO ?
MS-8
6. Write short notes on any three of the following :
(a) Derivative of the product of two functions
(b) Cumulativefrequency
(c) Definitions of probability
(d) Chi-squaredistribution
(e) Auto-regressivemodels
MS-8 P.T:O.
SECTION B
7. The probability that a student A solves a mathematics
. 2problem is f
and the probability that a student B solves it
7is i. What is the ProbabilitY that
J
(a) The problem is not solved.
(b) Both A and B, working independently of each other'
solve the Problem.
g. calculate the coefficient of correlation between age group
and rate of mortality from the following data :
Agegroup
0 - 2 0 2 0 - 4 0 4 0 - 6 0 6 0 - 8 0 80 - 100
Rate ofmortality
350 280 540 760 900
MS-8 10 ,000
MANAGEMENT PROGRAMME
Term-End Examination
June, 2OOG
MS-g : MANAGERIAL ECONOMTCS
Time :3 hours Maximum Mqrks: 700
(Weightase 70%)
Note : Attempt any three questions from Section A. AIIquestions carry 20 marks eqch. Section B iscompulsory snd carries 40 mqrks.
SECTION A
l. How is equilibrium price determined by interaction ofdemand and supply ? Explain.
2. Explain the relation between Total product, MarginalProduct and Average product curves and describe the threestages of production.
3. Distinguish between perfect competition and monopoly andexamine their relevance.
MS-9 P.T.O.
4. Analyse the laws of demand' What causes the market
demand for a commodity to (i) increase, (ii) decrease ?
Explain.
Explain any three of the following :
(a) ConcentrationRatios
(b) Average Fixed Cost
(c) Price LeadershiP
(d) ShareholderWealthMaximisation
(e) Economies of Scale
MS-9
20
SECTION B
6. (a) Find the MR functions for the followingfunction and evaluate it at e = 4 and e =
Q : 3 6 _ 2 P .
(b) Discuss any two methods used forforecasting.
demand
1 0 ,
demand
1 0
1 0
7. State True or False giving reasons in shon :(a) In the long run, there are no variable costs.(b) If output is zero, variable costs must be zero.(c) The law of diminishing returns states that themarginal product of any factor must eventually fall ifother factors are constant.(d) Demand curves necessarily slope downwards.(e) The elasticity of supply is greater in the short runthan in the long run.
MS-9
--
9,000
Il
MANAGEMENT PROGRAMMb,
Term-End Examination
June, 2OO6
MS-l0 : ORGANISATIONAL DESIGN,DEVELOPMENT AND CHANGE
Time : 3 hours Maximum Marks: 100
(Weightoge 70%)
Note :
(i) There sre two Secfions A qnd B.
(ii) Section A has two sets. Set I is meant for the
students who hque registered t'or MS-10 prior to
July, 2004, i.e. upto January, 2004. Set II is meant
. for the students who haue registered for MS-10 t'or
July, 2004 semester onwards.
(iil Attempt ony three questions from Section A. AII
questions carry 20 marks each.
(iu) Section B is compulsory for all, and carries
40 ^trk". ,
M S - 1 0 P.T.O.
SECTION A
Set I
(Pre-Revised)
l. Discuss various types of organisational structures and
discuss their relevance in the present scenario. in brief. Citeexamples.
2. Examine the notion of organisational design and explain
how the different dimensions affect the designing of an
organisation.
3. How -do task-forces and work-shop method help in
analysing an organisation ? Cite suitable examples.
4. Briefly mention the objectives of OrganisationDevelopment (OD). Describe how and when T-group and
transactional analysis methods can be used as an OD
intervention, citing an example. '
5. Write short notes on any three of the following :
(i) Skills of a change agent
(ii) Scientificmanagement
(iii) Role of chief executive in institution building
(iv) Job enrichment
(v) Process of change implementation
M S - 1 0
SECTION A
Set II
(Revised)
l. Describe the important factors responsible for organisationdesign and discuss their contribution to organisationaleffectiveness, citing suitable examples.
2. Describe virtual, boundaryless and inverted pyramidstructures of an organisation. Discuss the relevance ofthese structures in the present day scenario.
3. Describe any one of the contemporary approaches to Jobdesign and discuss how to overcome impediments to Jobdesign, with relevant examples.
4. Describe different phases of a planned change and discussthe techniques which are generally required for managingchange.
5. Write short notes on any three of the following :(i) Task force
(ii) Assessmentcenrres
(iii) Forms of interview
(iv) Mintzberg's typology
(v) McKinsey's 7Ss model
M S - 1 0 P.T.O.
SECTION B
6. Read the following case carefully and answer the questions
given at the end.
S u n r i s e l n d u s t r i e s w a s n ' t a l w a y s a b i g i n d u s t r i a l
giant. In {act, it had a very humble beginning'
Kamaldeep, an electrical engineer, set up a small scale
industrial unit in !975' To start with' he undertook
assembly and sale of sewing machines under the name
'sunrise' and gradually started manufacture of certain
spare parts. Because of better quality' greater selling skills
and lower profit margin, his sales turnover touched the
figure of Rs' 1 crore during 7979 - 80'- The products
includedsewingmachines, irons,fans'geysers'etc '
In 1981, Kamaldeep entered into a partnership with
Ankit, an M.B.A., who contributed a lot of capital into
the business. The firm acquired a big industrial plot in the
New Industrial Area of Ludhiana and converted their
business into a company known as dunrise Industries Ltd'
in 1982. The brand name 'sunrise' was also registered in
t h e n a m e o f t h e c o m p a n y . T h e c o m p a n y s t a r t e d i h e
commercial production of single iub washing machines
and instant geysers in 1983' Kamaldeep looked a{ter
production and Ankit took care of marketing and finance'
They never looked back as they had a motivated work
force of 40 workers and 5 foremen who worked like a
big familY.
MS-10
;p
i
It was during 1990 that the company shified its head
office to New Delhi and entered into a technical
collaboration agreement with a foreign company. As a
result, new generation twin tub semi-automatic washing
machines and vacuum cleaners were launched in 1991
and the products were well received in the rnarket
because of latest technology and expanding market for
electrical gadgets. The sales turnover increased
tremendously every year.
During the first few years, the management and
employees of Sunrise Industries were nothing more than
a group of friends and relatives. There were no job
desciiptions, no formalized procedures and not much
division of labour. All the people worked together and
shared the problems of each other. The decision-making
was participative in the sense everyone was free to give
his opinion whenever any problem arose. Thus, there
were cordial relations between the management and the
employees. But after the collaboration agreement in
1990, the organisation structure of the company started
changing dramatically. Because of massive expansion, a
large number of workers, foremen, executives and
professionals were recruited and s'eparate departments
were created for the production ofl sewing machines,
irons, fans, geysers, washing machines and vacuum
cleaners. Formalization got momentum further with the
M S . 1 O P.T.O.
creation of separate Finance, Marketing and Human
Resource divisions. Now all the jobs in the company are
standardized, there are job descriptions, manuals, many
rules and procedures and also an elaborate management
information system. All the important decisions are taken
at the top and there are many layers between the top
management and tl,e workers because of vertical
differentiation that has taken place during the past five
years.
The quarterly reports of the last year reveal that
percentage of customer complaints is on the rise, the
morale of the workers is going down and commitment of
the workers to the organisation is on the decline.
Questions :
(a) What changes in structural dimensions have taken
place in Sunrise Industries ?
(b) Is the present structure organic ? Give reasons for
your answer.
(c) Which approach to organisation do you feel can help
the company tackle the current problems ?
t
il
4
I
M S - 1 0 8,000
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-11 : p re-Rev ised: CORpORATEPOLICIES AND PRACTICES
Revised : STRATEGTC MANAGEMENT
Time : 3 hoursMa.ximum Mqrks : 700
(Weishtage 70%)Note ' There qre three Secfions A, B and C. Section A is
meant for the students wha hque registered t'orMS-l1 : Corporate policies and prqctices prior toJonuary 20AS t.e. upto July 2004. Section B ismeqnt for the students who hque registered t'orMS 11 : Strategic Management from January2005 onwqrds. Attempt any three questions fromSection A or B. Att questi6ns carry 20 mqrkseach. Section C is compulsory for all, qnd. cqrries40 mqrks.
M S - 1 1
E
P . T . O .
SECTION A
(Pre-Revised)
CorPorate Policies and Practices
1. What are the Law-Related Fxpectations and
Managerially-Derived Expectations of the Board of
Director's role ? ExPlain' 20
2. How can the strengths and weaknesses of an organisation
be measured ? Explain the alternative formats to analyse
strengths and weaknesses, giving examples' 20
3. Explain the concept of Experience Curve' How is it
caused ? What are the additional 'considerations for using
Experience Curve Effect ? 20
4. Classify and explain the strategic alternatives and the20
strategic options available to a firm'
5. What do you understand by corporate sickness ? List the
danger signals for corporate sickness' Explain giving
20examPles.
M S - 1 1
SECTION B(Revised)
(Strategic Management)
l. What is a strategy ? Explain the different perspectives,levels and ways in which a strategy in an orgahisation canbe changed. Support your answer with relevant example. 20
2. Explain the focus strategy and give arguments for andagainst the focus strategy, giving examples. 20
3. Distinguish between strategic alliance and a joint_venture,giving examples. 20
' 4' (a) Do you think that a specified evaluation criteria issignificant in determining the effectiveness ofstrategies ? Explain giving relevant examples.
(b) Briefly explain the concept of balanced score_card asa measure for measuring the performance of anorganisation. 20
5' Briefly discuss the alternative routes to diversification.Explain different types of mergers giving examples. 20
M S - 1 1 P . T . O .
I
6 .
SECTION C
Read the following case carefully and answer the questions
given at the end t 40
BENETTON
Benetton was founded in ltaly in 1965 by a brother
and sister to distribute home made sweaters to retailers'
Luciano Benetton had wholesaling experlence' and his
sister, Guiliana, design skills. Two other brothers joined
later. The first Benetton store was opened in 1968' By
1978 there were 1000, and by 1988 over 5000
franchised outlets worldwide. Allet 1978 more and more
manufacturing was subcontracted' Benetton has also
diversified into related goods such as shirts, jeans, gloves'
shoes and perfume. The business is still run from a
headquarters in ltalY.
Europe is seen as the home market, with production
and marketing in both the West and East' However'
Benetton is well established in the US and Canada' and
growing in Japan and the Pacific Rim'
ln IgT2Benetton started dyeing assembled garments
rather than just the yarn; and this has enabled it to
develop competitive advantage through a speedier
response to fashion changes. lf an item is selling
unexpectedly well in one particular shop, and additional
stocks are wanted, Benetton aims to provide the additional
stocks more quickly than its competitors could' Requests
are relayed through terminals to Benetton's mainframe
computer, which also carries comprehensive product
M S - 1 1
details and production requirements - the benefit of usingcomputer-aided design and manufacture (CAD and CAM)extensively. Production requirements can therefore be fedquickly into the manufacturing system, even though a lotof work is subcontracted. Finished products are stored inone central warehouse, run by robots and just a handful ofpeople. A quarter of a milion items can be handled daily.Benetton aims to replenish its shops with popular items inone week ex-stock, four weeks including production.Production costs are increased by dyeing finished goods,but stock management overall (raw materials, semi_finishedand finished items) is efficient.
Much hqs changed in the world since Benettonwqs started in 7965, but not our mission : tosatisf g people's needs with young, colourful,comfortable and easy-to-wear producfs. This hosbeen our route to world leaidership in the design,product.ion and distribution of clothing,accessories and t'ootwear lor men, women andchildren. Our range has been constantly enrichedouer time bg intensiue resesrch into new mqterialsand designs - qnd further additions wiil t 'ollow.
Benetton is an international company with a globalbrand image, which has been built around the theme ,The
United Colors of Benetton,. This international image isboosted by a strong association with motor racing.Benetton won both the Formula One drivers, andconstructors' championships in 1995.
M S - 1 1 P . T . O .
Colour mqkes Benetton unique. This secret l ies in
presenting a broqd spectrum of shades,
creatively mixed qnd mqtched new snd
different every time. The study ot' colour is our
greatest reseqrch commitment qs we constontly
seek out new tones.
Advertising features the same central message and
choice of media throughout the world, although the actual
themes of the advertisements vary. On occasions' some
examples have proved controversial in certain countries'
Benetton's approach is based on the premise that
customers in different countries use clothing and
accessories to express personal lifestyle preferences, with
a tendency to demand increasingly higher quality goods'
images thai convey meaning to the largest possible
number of peopie and cultures throughout the world':
Competencies and CaPabilities
Benetton provides a range of popular and attractive
garments and achieves some 20 per cent production cost
savings compared with its main competitors. Its franchised
retailers offer a high level of customer service with
responsive and helpful employees. There is some local
customization but, in the main, the same colourful,
fashionable and classic garments are available worldwide'
M S - 1 1
To achieve these outcomes, Benetton exploits a numberof important competencies and capabilifie; : "v q rrurrrvsr
r Dyeing skills are retained in_house.I The basic gray colour lends itself readily to latercolour changes.
r For many years Guiliana Benetton has controlled thedesign, activities, which have again been retainedin_house-
r Benetton retains classic designs and saves costs byavoiding too much variety.
r Eighty per cent of manufacturing is undertaken byindependent suppiiers.
r There are stronsuppriers u,o,n'j ilT::[] :]il'Tff#'l::;exclusively for Benetton.
r Benetton dictate tight technical specifications fortheir supplies.
Sophisticated IT systems are utilized in both designand manufacture.
Most suppliers are small businesses, and in manyinstances Benetton loans money to finance them.Benetton's success is frequently seen by theirsuppliers as their orn ,r..nr" u'r"L"rlorlrnip issuewhich clearly works in Benetton,s favour.Periodically Benetton ,releases,
suppliers, whichkeeps the rest on therr roes.
M S - 1 1P . T . O .
I
I
Purchasing is centralized and in bulk'
A small army of agents oversees the franchised
retailers and controls the company's image'
Retailers are comracted to stock only Benetton's
own brand products, although they have some local
autonomY on ranges and colours'
Benetton strictly controls the design' layout'
ambience and prices in every store'
r Sophisticated IT systems link retailers with Benetton
and in turn its suppliers to provide a fast response to
demand patterns without unnecessary stockholding'
r Standard worldwide advertising features 'The United
Colors of Benetton
r The company carefully sponsors events such as
Formula One which have a young and smart image'
All quototions extracted t'rom Benetton Annual
RePorts'
Questions '
(a) What is Benetton's competitive strategy ?
(b) How does it achieve competitive advantage ?
(c) How does Benetton use networks and partnerships
to great efled ?
(d) In what ways would it be di{ficult for competitors to
trY and coPY the success ?
9,000M S - 1 1
| '"%l
I
If
i
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-91 : pre-Revised : STRATEGICMANAGEMENT
Revised : ADVANCED STRATEGTCMANAGEMENT
Maximum Marks : iaTTime : 3 hours
(Weightage 70o/o)
Note : There are two Secfions A and B. Section A hastwo sets. ser I is meant t'or the students who hqueregistered t'or_MS_91 :.strategic Management priorto July dOOS i... upto ,lo,iuory 2005. Se, 11 ismeqnt for the students who hMs-sl:Aduqncedstrategic;:"r ';::: ir 'r^r,!"",1.,July 2005 onwards. Attempt any three questionsfrom Section A. AIt questions carry 2A markseqch..Section B is compulsory for all, and carries40 mqrks.
M S - g 1
E
P . T . O .
SECTION A
Set I (Pre-Revised)
STRATEGIC MANAGEMENT
III
1. (a)
2. (a)
3. (a)
4. (a)
"StrategY and
interdePendent ' ' '
examples.
structure are mutuallY
Explain, citing some relevant
(b) "strategic choice involves generating alternative
.hoi.nr" and evaluating these choices to select the
final strategy for future'" Explain with examples'
Explain Selflessness and Courage as components of
the Universal Inner Structure of good leaders'
What tools could a member of an organization use in
improving his leadership potential ? Discuss'
Whai factors have made Technology Management as
an important subject in the present situation ? What
do these factors imply for management ?
What are the different models for acquisition of
technologY ? Discuss'
W h a t a r e s o m e o f t h e p r a c t i c a l p r o b l e m s i n s o c i a l
audit ?
(b)
(b)
(b) Discuss the status of social audit in lndia'
MS-91
5. Explain any three of the following :(a) Impact of technology on mankind(b) Leadership styles according to the model developed
by Tannenbaum and Schmidt(c) Environment_strategy interface(d) Financial Statement Format audit(e) Network structure
I
]
M S - g 1
-
P . T . O .
-
SET II (Revised)
ADVANCED STRATEGIC MANAGEMENT
1. (a) Who are strategists ? Assess their role in corporate
management'
(b) What are the different levels of corporate strategy
and how do strategic decisions dif{er at different
levels ?
2. Discuss the salient features of the code of Corporate
Governance, as it exists in India and offer your critical
comments'
3. (a) What are the choices available to a firm operating tn
a dynamic environment ? Discuss them briefly'
(b) What is the Experience Curve and how can it be
helPful to a business {irm ?
ise in service industry4. (a) What bene{its can an enterPr
derive from Information Technology ? Discuss'
(b) What is Value Chain analvsis and how -" l1':"
helpful to a business firm in gaining competitive
advantage ?
5. (a) Why should a business {irm/corporate involve itself
in Social Responsibility ? Explain'
(b) Discuss the objeciives and scope of Social Audit'
MS-91
SECTION B
6. Read the following case carefully and answer the questionsgiven at the end.
ING Vysya Bank
All those foreign banks that plan to enter India bytaking over one of the smailer private sector banks woulddo well to learn {rom the initial experiences of INGVysy?. In . 2002, the Dutch f inanc ia l serv icesgroup, ING, hiked its stake in 7O-year_oldBangalore-based Vysya Bank to 43.99 per cent Lna toor.over management control. If ING would make a successof its investment in Vysya, others would have beenemboldened to do similar deals.
Three years later though, the performance of INGVysya has been disappointing. Its latest quarterly resultsshow a net profit of just Rs. 9.15 crore. For the financialyear 2004-05, the bank suffered a Rs. 3g 1g crore loss(though it had an operating profit). Its return on assetswas 0.25 per cent, among the lowest in its peer groupof private sector banks (HDFC Bank,s return on assetswas 7-47 per cent while that of ICICI Bunk was1'59 per cent). "From a pure financial perspective, the
M S - g 1P . T . O .
bank has under-performed," admits Bart Flellemans'
managing director and CEO of the bank'
Even beyond the financial under-performance'
though, former insiders whom BW spoke to argue that
t h e b a n k h a s n o t h a d a c l e a r s t r a t e g y a n d n o c l e a r
direction from the top. "There is no clarity on how to
p o s i t i o n t h e b a n k i n t h e m a r k e t p l a c e . . . a n d e m p l o y e e
morale is low," says a former insider who quit the bank
recently. Also, the bank has still not been full integrated
i n t o l N G a n d i s n o t t r e a t e d a s p a r t o f t h e g r o u p ' h e r u e s '
ING Vysya was one of the many banks that made
loads of money during the three-year rise in bond prices'
H o w e v e r t h a t b u t l r u n l o s t s t e a m l a s t y e a r , l e a d i n g t o
losses. Other banks have managed to sustain their income
growth since their core banking business' driven by retail
{inance, has grown strongly' But ING Vysya has been
particularly badly hit because the profitability of its core
lending business has not been good enough to o{fset this'
ln the year ended March 2005, the bank saw a 46 per
cent rise in its net interest income (the difference between
the interest it earns on loans and investments and the
interest it pays to depositors) of Rs' 356'76 crore' Those
earnings from its core business fell short of its operating
M S - 9 1
expenditure by Rs. 21 crore (though that shorifall was
much higher for the previous year). Its interest income
grew by only 6.7 per cent in March 2OOS.
It was always going to be a tough task for ING, a
$81-billion Dutch financial services conglomerate, to
transform Vysya into a strong competitor against other
banks in the marketplace. At the time it was bought out
in 2OO2 by ING Vysya had for decades been a bank set
up and manned by the Vysya community in the South toprovide banking services to mainly small-time traders."Effectively, the bank was a trader's bank,,' says p.S.
lyer, a former executive vice-president, who handled
corporate banking and quit the bank in late 2003. '.Vysya
Bank customers were mainly those from the middle and
lower rung businesses." In 2001, the bank,s return on
assets was 0'38 per cent, far lower than the average. of
the other old private sector banks, which was around
0'72 per cent. On the positive side though, its gross
non-performing assets were 4.7 per cent of total
advances, much below the average of all private sector
banks at around 8'4 per cent.
The main shareholders in the bank were the GMR(G.M. Rao) group who, between December 1996 and
M S - 9 1 P . T . O .
December 7ggg, sold 20 per cent of their shareholding
in the bank to Bank Brussels Lambert (BBL), a Belgian
bank. In 7998, BBL itself had been acquired by ING'
At the time, ING was very keen to enter the
insurance sector in the country. In 2000,'it inked a deal
with the GMR group to set up a life insurance business'
It saw Vysya 'Bank
as an ideal way to expand and
distribute life insurance products. "The acquisition initially
was driven by distribution and the ability of the bank to'
sell mutual funds and insurance products," says
Hellemans. "That's why the opportunity (to buy Vysya)
was grabbed." In September 2002, the ING group took
an additional 23'99 per cent in the bank, doing so at a
substantial premium to the price recommended by the
investment bankers who were valuing the deal for ING'
Hellemans, a former BBL executive, who has been with
ING Vysya since the initial stake was acquired, took over
as chief executive officer in October 2002'
The ING bank's operations in India till that time
were strongly focused on corporate and investment
banking, while Vysya's focus was towards retail banking'
"We were told thdt when ING comes in, it would want
to move to a strong retail and corporate focus, and bring
M S - 9 1
in the latest products from the group. It was seen as a
strong departure from the traditional small loans-to-traders
orientation of the bank," says lyer, who was part of a
group of executives hired in 2001 to help revamp Vysya.
On the loans side, the major change was to move
away from this focus on small advances and look towards
lending to large corporates. However, it couldn't compete
with the likes of SBtr or ICICI, which had much larger
balance sheets and could serve such companies .more
effectively.
This was at a time when other competitors in the
market were trying to sell services and lend to mid market
corporates and small and medium enterprises (SMEs). An
ex-employee says .that smaller accounts in the bank,
which involved loans of up to Rs. 50,000, resulted in as
much as Rs. 20 crore of net profit, given that borrowers
were paying a premium of as much as 100 basis
poinis to deal with the bank. Many of the small borrowers
barely maintained any real balance sheets to speak of and
most of the lending was based on collateral. Such loans
were handled by employees who had many years of
expierience with such borrowers.
MS.91 P . T . O .
Now, say employees, the bank is more bullish on the
SME sector again. Hellemans himself argues that though
the returns on loans to small customers at that time was
high, the servicing costs and the small loan size didn't
really make it economical. Fiftythree per cent of the
bank's loans - are , nor,r/ .to large- and medium-sized
corporates, down from 60 per cent in September 2003.
Hellemans wants retail loans and loans to SMEs to
comprise 55 per cent of all loans in three years.
Further, more systematic ways of judging the
creditworthiness of customers merely succeeded in driving
them away to competitors initially. The new rules required
large amounts of paperwork and took away all discretion
from bank officers. "They bought in their own risk
models and ways of functioning without trying to
understand the nuances of doing business with their core
customers," says an ex-employee. ''For instance, in the
case of partnership businesses, they required all partners
to walk into the office and sign the loan papers in the
presence of a bank officer. That's ridiculous when you
realise that some businesses had a large number of
partners, many of whom were inactive anyway and didn't
have a say in the day-to-day management."
M S - 9 1 1 0
What's added to the problem, say former insiders,
are disparate cultures within the bank. 'There are a few
expat staff from the ING group at senior levels in the
bank. At the second rung are hires from other private
sector banks. And finally, there are the long time ING
Vysya staff. "Another huge problem was bad hiring,,'
says a former employee who himself came from a private
sector bank. "Some of the new hires were terribly
incompetent or just inexperienced. One of them was a
branch manager in a foreign bank. He joined Vysya at
the second rung, reporting directly to Hellemans.',
Another senior executive, whose background was in HR,
was given responsibility of the entire bank's business in
one of the four regions. (Typically, HR executives rarely
handle businesses). Former executives also point out that
only around 250 of the around 4,000 employees are in
the front office assigned to raise business from
customers. This is another factor that hurts productivity.
Hellemans himself seems to feel that the main
problem is employees from the former Vysya Bank. He
points out that the staff's average age is well above that
of employees of other. private sector banks. Changing the
culture of the bank has been more difficult than he had
M S - 9 1
-
1 1 P . T . O .
thought, he admiis. "lf you look back five years and
compare it with today, there have been changes' But
there is still a long way to go....Remember that, unlike
other private sector or foreign banks, we do have an
employees union."
AII dsta lor financial year 2004-05
What about bancassurance, which was one of the
main aims of the merger in the first place ? Former
insiders say the target is to sell 25 per cent to 30 per
cent of all Vysya Life policies through the bank'
Hellemans says the bank currently sells 20 per cent of all
life insurance products sold by the insurance company'
Former employels point to a much larger factor
behind the'slowness to change. Since ING owns less than
ING-Vysya against the rest
BanksReturn onassets (%)
Net interestspread (%)
ING VYSYA
FEDERAL BANK
HDFC BANK
ICICI BANK
KOTAK MAH. BANK
UTI BANK
o-25
0'54
7.47
1 .59
7 .56
7 . 2 r
2-L5
3 .67
3 .69
r . 703.45
2 .88
M S - 9 1 1 2
tlII
Hellemans points
fifth in a row where
profitable : ,,The fact
M S = 9 1
a majority stake in the bank, Vysya is not treated as partof the global ING business. ,,While
clients see you as partof the ING group, internaly within ING, the bank istreated as a distinct entity, unlike, say, a bank like HSBCwhere the Indian operations are very much part of theglobal set-up with few distinctions;,, sals.an ex_executive."This means that products sold globally don,t necessarilycome to India. Whatever revenues are booked, ING ownsonly 44 per cent of them. Sometimes they would ratherdeal with India through their offshore branches, so thatthey can book all the revenue in INGs books.,, Iyer recallsthat when ING took over Vysya, customers askedwhether they could borrow in foreign currency. ,,But
those foreign currency lines from the group were neverforthcoming," he says.
Hellemans vehemently denies that the bank,s foreignparent is disinterested in Vysya. ,,lNG
would not havelent their brand name to Vysya if they had any doubts atall about the acquisition,,' he says. ,,They
cannot do anybusiness in India without our OK.,,
out that the latest quarter is thethe core business of the bank isthat we are an underperformer
1 3
-
P . T . O .
-
compared to other banks in the peer group these last few
years, is not something we didn't expect' We look at it
from a medium to long term perspective""lt's taken years
to clean up the balance sheet but that's been done' About
putting in place tools to manage risk and changing the
culture within, that's taken more time"
Even he admits, though, that the performance of the
bank 'had better' match the performance of its peers
w i t h i n t h e n e x t t h r e e y e a r s ' Y e t t h e n ' h e s a y s ' : " W e a r e
currently not too concerned about the [financial]
underperformance compared with our peer group though
that underperlormance cannot continue much longer'"
What does that mean ? Hellemans points out that
the $ank has seen an asset growth of over 30 per cent
in 'the last year -- a performance that he believes is
'unlikely' to slow down' At that pace' assets will more
than double in the next three years to over Rs' 31'000
crore. The current retum ori assets for the top private
sector banks is over 1'2 Per cent'
Even if ING Vysya Bank were to match that
performance over the next three years' it means making
M S - 9 1 1 4
rIF
well over Rs. 316 crore of profit by March 200g. Adifficult task indeed.
Questions ..
(a) What islare the reason(s) for underperformance ofthe Bank ? What is wrong with the Bank ?
(b) List and analyze the strengths and weaknesses of theBank.
(c) What changes did the Bank see in its operationsduring the last three years and how did the changesaffect its business and profits ?
(d) What are the reasons for Hellemans' optimism aboutthe future of the Bank ? Do you agree ?
M S - 9 1 t 5 7,000
II
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-92 : MANAGEMENT OF PUBLICENTERPRISES
Time :3 hours Maximum Mqrks : 700
Note :
There are two Sections A and B.
Section A hos two sets. Set / is meant for thestudents who haue registered t'or MS-92 prior toJuly, 2004 i.e. upto Januory, 2004.
Sef lI is meant for the students who haueregistered for MS-92 lrom July, 2004 onwards.
Attempt any three questions.from Section A. AIIquestions carry 20 msrks eqch.
Section B is compulsory t'or qll and cqrries40 marks.
MS-92 P . T . O .
SECTION A
Set I
(Pre-revised)
1. Describe the concept of PE and briefly discuss the role ofGovernment in PEs. 20
2. Explain the concept of public accountability. Describe themethods by which PEs are held accountable. 20
3. (a) Discuss the characteristic features of recruitmentpolicies in a PE.
(b) Discuss the role of Technology Management in PEs. 20
4. What are the objectives of State Level Public Enterprises(SLPEs) ? Brietly discuss the sectoral performance ofSLPEs. 20
5. What is the criteria for the evaluation of performance ofPEs ? Discuss. 20
MS-92
It
i
l .
2 .
3 .
4.
D .
Set II(Revised)
Describe the Global and Indian pE scenario in detail.
Why is social responsibility important for business ? Explainthe various strategies of social responsibiliry.
Briefly explain various types of legislative committees toenforce accountability and control over pEs. What is theimpact of such committees on the performance of pEs ?
Discuss the role and performance of postal system in thepresent context.
20
20
20
20
What are the policydisinvestment ? Brieflydisinvestment.
objectives of privatisation anddiscuss the strategic issues in
20
MS-92P . T . O .
Ii1li
6 .
7 .
SECTION B
Discuss in detail the rationale for nationalisation in India'
Was the reason economic or was it based on ideological
considerations ? Discuss'
The financing of PEs in lndia is based on many sources'
Critically analyzethe various sources of financing and their
implications on the performance of PEs'
MS-923,000
MANAGEMENT PROGRANME
Term-End Examination
June, 2006
MS-93 : MANAGEMENT OF NEW AND
SMALL ENTERPRISES
Time :3 hours Maximum Marks : 700
(Weightase 70%)
Note : This paper consists of two Sections A and B'
Attempt any three questions from Section A'
Section B is compulsory. All questions carry
equal marks.
SECTION A
1. (a) Briefly discuss the role of entrepreneurship in
, economic develoPment.
(b) Explain the term "enlrepreneurial competency" and
briefly describe the identified entrepreneurial
competencies.
2. What are the basic inputs required for analysis of
competitive situation and market assessment by an
entrepreneur planning to set up a small unit for making
Iow cost detergent ? Discuss.
MS-93 P.T.O.
3. Describe the factors that influence the make or buydecision in case of small enterprises. Also, discuss the
factors influencing the technology selection for any smallmanufacturing enterprise of your choice.
4. What are the training and development practices used by
small enterprises ? A small entrepreneur has set up a
computer education centre employing about fifteen people.
How would you advise him in respect of the processes he
should use for training his own staff ?
5. Write short notes on any three of the following :
(a) Managerial challenges- at different stages of the
enterprise
(b) Growth strategies for small enterprises
(c) Issues in managing family enterprises
(d) Use of financial ratios in measuring enterpriseperformance
(e) Common errors in business plan preparation
MS-93
SECTION B
6. Read the case study given below and answer the questions
at the end of the case.
MUSHROOM MARKETING
Sanjay & Vilay are two enterprising youth. Having
learnt of the future world-wide scarcity of conventional
foods, they decided to venture into the cultivation of the
mushrooms. The mushrooms are known to be the best
alternative food of vegetarian origin. For Sanjay & Vijay,
fund-raising remains a serious handicap. However, the
first trial-batch of mushrooms that they produced, was
instantly bought by a star-hotel in the city. Further the
hotel has placed an order for 10'0 kg, every day.
Now, the mushroom industry consists of s5nall
entrepreneurs like Sanjay & Vtjay. One big player,
M/s Shibani Mushrooms, equipped with cold storage
facility is more interested in the export market.
Sanjay & Vijay have set their sights high. They aim
to sell mushrooms in a big way, all over the nation' The
thing to remember is that the mushrooms have a great
market potential, though latent at present. Also
remember that mushroom is a rather fast-perishing food.
MS-93 P.T.O.
Quesfions :
(a) Kindly advise Sanjay & Vijay, as to how to increasethe consumer awareness about this new foodproduct.
(b) Also give your suggestions for the design of thedistribution channels for mushrooms.
(c) Piepare a detailed business plan for the abovebusiness idea, making the necessary assumptions.
l. (a) "Technological innovation has been a powerful forcefor industrial development, productivity growth andindeed, our rising standard of living throughouthistory. " Elucidate the statement with suitableexamples,
(b) What are the options available to a business firm fortechnology development ? What factors woulddetermine its choice for a particular option ?
OR
Discuss the major changes that have been brought aboutby developments in IT. What implications do they have forbusiness firms ?
MS-94 P.T.O.
2. (a) What factors should the licensor of technology take
into consideration before transferring his technology
to a licensee ?
(b) Explain the Delphi technique of Technology
Forecasting, pointing out its merits and demerits'
OR
Explain the various approaches to development of
technology, pointing out the suitability of each for a
particular business enterPrise.
3. (a) Differentiate between :
(i) AdoPtion,
(iil AdaPtation, and
(iil) AbsorPtion,
pointing out the situations under which each of
these would be used.
(b) "lmproving the linkage between R & D and
marketing is very much related to successful
technology diffusion." Explain'
OR
(a) What is Technology Assessment ? Describe the
stages in the technology assessment process'
(b) What factors, do you think, would be helpful to a
firm in developing successful diffusion strategy ?
ExPlain brieflY'
MS_94
4. (a) Is the Technology Mission approach useful ? Does itneed to be pursued in India more vigorously infuture ? Support your answer with reasons.
(b) Differentiate between technological self-reliance andtechnological self-sufficiency. What should India aimat and why ?
OR(a) Briefly explain International S & T Cooperation
Programmes in India. How far, in your opinion, havethey been elfective in strengthening nationaltechnological capabilities ?
(b) Describe the technological research informationsystem in India and offer vour commenrs.
5. Explain any three of the following :
(a) R &D expenditure inlndia
(b) Criteria for evaluatinS R & D projects
(c) Monitoring technology transfer process
(d) Technologystrategy
(e) Morphological analysis for Technology Forecasting
(i) This paper contqins two Sections, Section A' and
Section B.
(ii) Section A contqins fiue questions. Attempt any
four questions from Section A.
(iii) Section B is compulsory.
(iu) Sfofisficq/ tsbles wil l be prouided on demand.
(u) Use of personal non-programmable calculator is
s l lowed.
SECTION A
l. Discuss the steps involved in the process of research.
Clearly mention the issues addressed in each of these
1 5steps.
MS-95 P . T . O .
2.
3.
What do you mean by sampling design ? What points
should be taken into consideration while developing the
sampling design for studying the problems of domestic
airline passengers ?
What do you understand by the term decision-making ?
What is the role of models in managerial decision-making ?
Explain. Also, briefly review the different types of models
along with their characteristics.
Define a research report and explain its purpose. What arethe characteristics of a research report ? What function
does it perform ?
Write short notes on any threeof the following :
(a) Characteristics of interest and unit of analysis
. (b) Advantages of sampling over census
(c) Simulation models
(d) DiscriminantAnalysis
(e) Difference between Bibliographical and Footnote
entries
1 5
1 5
4 .
1 5
1 55 .
MS-95
SECTION B
6. What is Semantic Differential Scale ? What does it
measure ? Describe the steps involved in the construction
of a Semantic Differential Scale'
7. The following data is the number of units contributed by
the faculty of two schools at IGNOU.
Use the sign test to test the null hypothesis 1t' = 27'5
against the alternative hypothesis p < 27'5 at a level of
significance of 0'01.
Given, the tabulated value of the test statistic at 0'01 is
- 2 .33 .
20
20
7 7 1 5 20 29 19 1 8 22 25 27 9
24 20 1 7 6 24 I4 1 5 23 24 26
7 9 23 28 T 9 t6 22 24 1.7 20 1 3
T 9 10 23 18 3 1 t 3 20 1 7 24 14
M S - 9 5 8,000
MANAGEMENT PROGRAMME
Term-End Examination
June, 2006
MS-96 : TOTAL OUALITY MANAGEMENT
Time :3 hours Maximum Marks : 700
(Weightage 700/o)
Note :
(i) There are two Sections r Section A and Section B.
(ii) Attempt any three questions lrom Section A,
which carry 20 marks each.
(iii) Section B is compulsory qnd carries 40 mqrks.
SECTION A
l. (a) What are the three elements of Juran's Quality
Trilogy ? What does the Trilogy aim at ?
(b) What are the key success factors for TQM ? Explain
briefly.
2. (a) Examine the relationship between quality and low
cost, explaining the logic behind low cost'
(b) How can an organization instill customer
orientation ? What actions need to be initiated ?
Discuss.
M5.96 P.T.O.
3. (a) Discuss the four steps that a Steering Committeemust take to promote TQM.
(b) Discuss the work practices in the context of TQMthat promote learning in the organization.
4. (a) Discuss the responsibility of management under therequirements of ISO 9001.
(b) What are the core elements of EnvironmentalManagement System (EMS) ?
5. Write explanatory notes on any four oI the following :
(a) Elements of Safety Programme
(b) Fundamental concepts of Excellence
(c) Secrets of creating 'Robust Design'
(d) The Deming Prize criteia
(e) Dimensions of Quality
(f) Benefits of Standardization
M5-96
SECTION B
6. Read the following case carefully and answer the questionsgiven at the end.
VYSYA BANK
Believe it or not, two years ago, when the top
managers of the Vysya Bank (lgg3 - 94 deposits :
Rs 3,619 crore) - the country's largest private sector
bank - realised that the liberalisation of the banking
sector was imminent, they responded in the most
unexpected fashion : they turned to TQM. Explains
G. l-axminarayana, 50, senior general manager, Vysya
Bank : "We felt that our bank should have some edge
with which to face the competition. That can be managed
only by an improvement in the quality of our services to
customers, both internal and external."
So, Vysya Bank hired the Michigan (US)-based
quality consultant, Nirdosh Reddy, to train its bankers to
manage for quality. Imparting 72 hours of training to 30
senior executives and 30 senior managers in the
corporate office in Bangalore, Reddy turned some of
them into facilitators. And they, in turn, trained 50 more
people in the bank as a prelude to taking the TeM
movement across all branches. Next, senior managers in
M5-96 P.T.O.
35 branches - which account for 60 percent of the
bank's deposits, 70 per cent of its advances and profits,
and 80 per cent of its fee-based businesses - will be
educated in TQM techniques'
"Vysya Bank has taken the right step by going in for
TQM," says K.S. Shetty, 62, the former chairman and
managing director of the Vijaya Bank. "To remain
competitive, banks will have to improve customer service,
housekeeping, and the quality of their assets. TQM is the
best tool for this." Immediately, Vysya Bank tumbled on
to the fact that customer focus is the name of the quality
game.
And it is changing its outlook from product-out to
market-in. "Customers of banks are becoming more
discerning and quality-conscious," says C' Mahalingam,
35, senior manager (human resources development),
Vysya Bank. "They have begun to scout for options that
are more in tune with their needs, provide more
satisfaction, and cost less."
As a first step, Vysya Bank decided to classify all the
complaints listed by its customers in the complaints
register, which is kept in the customer service cell in
M5_96
every branch, under nine heads. They range from
quantifiable procedural issues, like delays in the clearance
of bills and the non-payment of interest, to softer
problems like customer service and staff behaviour.
At the end of each financial year, the bank plots a
frequency distribution table of these complaints to spot
where customer dissatisfaction is the highest. The aim :
to identify patterns of customer dissatisfaction across its
branch network. Once it emdrges, the bank initiates a
process of tackling the problem. Invariably, Vysya Bank's
TQM projects are all being thrown up by this customer
feedback system.
TQM AND CUSTOMER FOCUS
CUSTOMERFoCUS
b9\z\a
/ \/ . -/s/oY
/,{/^o*q^q
M5-96
TOTAL QUALITY MANAGEMENT
P.T.O.
VYSYA BAI\K'S TQM PROJECT
Value addition
Eliminate non-valueadding activity
Until now, Vysya Bank has identified 22 TQM
projects which will help it, among other things, develop
Corporateplansldentification of processes
lost ofqualityPrioritisation
Process ownership
functionalSelect team membels
riticalareas
Flow chart ofexisting plocess
ldentify customelexpectations
Examine each activity
lmprove the process
lmplementDocument the plocess
M5-96
tt new deposit and loan products, upgrade staff skills,
improve loan recoveries, and profitability. "ln the banking
process, there are lots of redundant activities which have
been going on for years. But most of them can be done
away with," points out Pradeep Das, 41, assistant general
manager, economic research and corporate planning,
Vysya Bank. "Under TQM projects, we try and eliminate
all such activities where value-addition is nil or very low."
Then, a revised process is prepared, which is presented
to the TQM steering committee for its approval before it
is taken up for implementation. On an average, Vysya
Bank takes between 15 and 120 days to complete each
TQM project.
Last year, delays in clearing inward bills - local and
outstation cheques and drafts - was identified as the
single-biggest customer complaint. A TQM project was
initiated and the result is a new cheque clearing service
that Vysya Bank soon plans to unveil.
Called Vyswift, it will offer three options : 24-hour
clearing, four-day clearing, and seven-day clearing, each
camying a different charge. What the TQM team that
developed Vyswift discovered was that outstation cheque
clearances were taking upto 25 days because the bank's
branches did not have a system to follow. As the team
went into the details, they discovered that the clearing
delays were not only between the semi-urban branches,
MS-96 P.T.O.
I
tI
but also between the four metros themselves because
some branches sent cheques by post while others sent
them through the Reserve Bank of India's clearing house.
So, the TQM team devised a new process that works
thus :
I Branches under a particular regional collection
centre (RCC) - the 320 branches are divided under six
RCCs - will send all outstation instruments to the RCC
by courier.
I The day they receive the cheques, the RCCs will
send them by courier to the branches in the cities where
the cheques have been drawn. These branches will
present the cheques for local clearing the next day.
I As soon as the cheques are cleared, the branches
will telex the details to the RCC. And the RCC will
communicate them to the branches that had sent the
cheques.
While the process actually takes anything upto four
days, the team argued that the bank must offer to credit
the account of its high-value customers one day after they
deposit a cheque - well before it has actually been
cleared. And while a penalty could be charged if the
cheque later bounced, they pointed out that apart from
increasing the satisfaction levels of its current account
M5-96
holders, Vysya Bank would also benefit from the higherservice fee that it would eam when the customer optedfor one-day clearing.
Another area where a TeM initiative has shownresults is the bank,s credit appraisal system. When theteam assigned to a credit delivery project studied thesystem, it found that it was a hierarchical one with largecredit proposals having to go through several layers forsanction. In most cases the credit appraisal process wouldtake anywhere between 30 to 45 days.
STRUCTURE FOR IMPLEMENTING TQM
HRD DEPARTMENTCoordinating Agency
r Coordinatorr Support staff
INTEBNATRESOURCEPEBSONS
TOM TEAMS
r Sponsorsr Leaders
r Members
M5-96P.T.O.
So, the team has devised a system whereby Vysya
Bank can complete an appraisal and sanction credit in
just 24 hours for high-value loans and credit
enhancements of above Rs. 2 crore' Even in the case of
normal applications, the process has been truncated to
reduce the average appraisal time to just 15 days'
Under the old sYstem :
I The branch would collect the necessary documents
and send them to the divisional office'
I The divisional office would route the papers to the
credit appraisal department in the head office'
I The credit appraisal department would pass on the
papers to the concerned general manager'
I The general manager woutd send the papers to the
chairman.
I The chairman, in consultation with the credit
appraisal working committee or the board of directors'
would then take a decision.
I The decision would travel to the customer through
the divisional and branch offices'
I Communications would be through the postal
system.
M5-96 1 0
/
Under the new system :
I The branch faxes the documents to the creditappraisal department at the head office and sends a copyto the divisional office for information.
I The credit appraisal department immediately handsover the papers to the concerned general manager.
I The general manager, after scrutinising theapplication, passes the papers to the chairman.
I The chairman conveys his decision to the generalmanager within the next 24 hours.
I And the general manager faxes the decision to thebranch office.
11M5_96P.T.O.
\
HOW VYSYA BANK'SCREDIT APPROVAL WORKS
@
30 -45Days
#Ea=, r = =
/ A r e \documentscomplete !Gonsults credlt
appmisalwo*lng
/ A r e \documents
Checksdocuments
/ A r e \documents
documentsand sends to
0ivisionat 0llice
M5-96 12
HOW VYSYA BANK'SCREDIT APPROVAL WORKS
llE[RBv?il
Takes declslonimmedlately
-=E4E(J
Ghecls documenls,sends lo Chalrman
Fllesinformation
' Bv Fax
Sends documentslo Divisional 0flice
lor inlormation
Gollects documenls asper standardisedrequitements. No
additional documentswill be needed
M5-96 1 3 D T . \
\
If the new process is faster than the old one' it is
because the TQM team has helped to standardise the
information that is required for an appraisal' eliminating
the time lost in asking for additional information' In
add i t ion , thebankhasempoweredmanagersdownthe
line in the divisional and head office to take credit
decisions uPto certain limits'
While the bank's customers are benefiting the most
from this, Vysya Bank too is getting more business' ln
fact, the chairman of the bank, l' Sada Siva Gupta points
out that in the first six months of 1994-95' the bank's
advances have gone up by 38 per cent over the same
period last year : from Rs' 1,450 crore to Rs' 2'000
crore 'L i t t |ewonder , then, tha tVysyaBank isshowing
more than a passing interest in TQM'
Questions :
(a) (i) What are the central points of the TQM
strategic aPProach at VYsYa Bank ?
(ii) What would you describe as the main features
of the Quality System at the Bank ? How did
the bank go about the quality programme ?
M5-96 1 4
What do you regard as the Best practices at workin the Bank that have a bearing on quality ?
What would be your further suggestions to theBank for improving the quality environment ?
M5-96 1 5 3,000
7
MANAGEMENT PROGRAMME
Term-End Examination
June, 2OOG
MS-97 : INTERNATTONAL BUSTNESS
Time :3 hours Mqximum Mqrks : 700
(Weightage 70%)
Note :
(i) . There qre two Secfions : A and B.
(ii) Attempt any three questions from Section A.which carry 20 msrks each.
(iii) Section B is compuls;ory qnd carries 40 msrks.
SECTION A
l. Discuss the stages in the Corporate Life Cycle Theory of
international marketing and critically examine it in the light
of the present business scenario, with special relerence to
lormation of joint ventures and FDI.
MS-97 P,T.O.
2. (a)
3. (a)
4. (a)
(b)
(b)
"A multi-focal strategy requires multiple tools to build
new perspectives." How can these perspectives be
built ?
Differentiate . between the Ethnocentric and
Polycentric approaches to internationalization of
business, pointing out their merits and demerits'
Why is the need for control felt particularly in
multinational enterprises ? What key questions in
relation to control arise in international business ?
What do you understand by intra-firm trade ? In what
way does this affect the host country ?
MNEs transfer managers across national and cultural
boundaries. Elaborate, and discuss.
What are the sources of bargaining power of the
parties in the process of intemational negotiations ?
How can a party maintain its bargaining strength
over the entire period of the contract ?
(b)
5. Write notes on any thtee of the following '
(a) Negotiations on code of conduct in TNCs
(b) Motivations for and benefits of Regional Trade
GrouPings
(c) UNCTAD and its role
(d) Labour intensity vs. labour productivity
(e) Ownership strategy in international business
MS-97
6.
SECTION B
As a management consultant, you have to be approachedby a diversified MNC to prepare a report on the politicaland economic environment, including the risks involved, inIndia. The corporation wants to open one or twomanufacturing facilities in india. what wourd be the maincontents of your report, including your suggestions,/adviceon how the corporation could handle,/manage those risks ?
Several Indian companies have internationalized theiroperations and some of them have even become globalcompanies. Why have they been motivated to expand theiroperations this way ?