MANAGEMENT PROGRAMME

Term.End Examination---- .

June, 2006F " ' "

r i i , '

MS-1 : MANAGEMENT FUNCTIONS AND. . . : ' . . I I:: BEHAVIOUR

Time : 3 hours Maximum Marks: 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 ? 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'

Advertising campaigns'feature simplif ied, unambiguous

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.

MS_93 3,000

MANAGEMENT PROGRAMME

Term-End Examination

June, 2006

MS-94 : TECHNOLOGY MANAGEMENT

Time : 3 hours Maximum Marks : 700

(Weightage 70%)

Note : Attempt aII questions. AII questions carry equalmarks.

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

MS-94 3,000

MANAGEMENT PROGRAMME

Term-End Examination

June, 2006

MS-95 : 'RESEARCH METHODOLOGY FORMANAGEMENT DECISIONS

Time : 3 hours Mqximum Msrks : 700

(Weightage 700/o)

Note :

(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 ?

7 .

MS-973,000