ASSIGNMENT of ONE

YEAR MBA
BY
Hasini
SEMESTER I
Q.1.Explain the different activity levels of Management.
Management does not refer to a single individual but it refers to a group
of persons. In companies large number of persons are employed and
placed at different places to perform different managerial activities. To
carry on these activities these employees are given necessary authority
and responsibility. This grant of authority results in creation of chain of
authority. This chain is divided into three levels which result in creation of
three levels of management.

1. Top level management:

Top level management is concerned with the broad policy framework and
is related to develop attitude. It consists of board of directors, chairman,
managing directors, strategists and alike. They are responsible for the
welfare, and survival of the organization. In this level, the corporate goals,
missions and objectives are determined and a detailed action plan and
strategies for the same are formulated.
Functions of top level management:
To formulate and determine the objectives and define the goals of
the business.
To establish policies and prepare plans to attain goals.
To set up an organizational structure to conduct the operations as
per the plans.
To provide overall direction in the organization.
To assemble the resources necessary for the attainment of the policy
and execution of the plan.
To control effectively the business operations.
 To judge and evaluate the results.

2. Middle level management:

The middle level consists of departments, divisions and sections, in which
the respective chiefs, heads or managers are concerned with the tasks of
implementing the policies and plans prepared by the top level
management. They are the real subordinates to top managers. Being in
the middle, the managers have to perform as a link between top and lower
level management.
Functions of middle level management:
To implement the task set by top management.
To interpret the policies framed by the top management.
To run the organization effectively and efficiently.
To cooperate for the smooth functioning of the organization.
To coordinate between different departments.
To recruit, select and train the employees for better functioning of
the departments.
To issue the instructions to the lower level management.
To motivate the workers and staffs for higher productivity.
To lead the department and build-up and organizational spirit.
To report and make suitable recommendations to the top level
management for the better execution of the plans and policies.

3. Lower level management:

Lower level management is also known as supervisory level of
management in which the supervisors and foremen and others like sales
officers, accounts officers etc. take responsibilities of the implementation
and control of the operational plans developed by the middle level
managers. It is clear that the actual operations are performed in this level
of management. This level is concerned with actual implementation and
control of operational plans.

Functions of lower level management:

To issue the orders and instruction to the workers.
To supervise and control the performance.
To plan the activities of the sections.
To direct and guide the workers about the work procedures.
To provide on the job training to the workers.
To arrange necessary tools, equipment, materials for the workers
and look after their proper maintenance.
To solve the problems of workers.
 To develop sense of co-operation and high group spirit among the
workers.
To advise the middle level about the work environment.
To inform the unsolved problems of the workers to the middle level
management.

Q.2.Explain the functions of Human Resource

Management.
Human resource management is the strategic and coherent approach to
the management of an organization's most valued assets - the people
working there who individually and collectively contribute to the
achievement of the objectives of the business. Human Resource
Management is the organizational function that deals with issues related
to people such as compensation, hiring, performance management,
organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.

Human Resource Management Functions can be divided into the

following three main categories:
A. Personnel Administration
B. Employee welfare
C. Functional Areas
PERSONNEL ADMINISTRATION:
Personnel administration may be defined as the effective utilization of
human resources to achieve organizational objectives.
The activities of Human Resource Managers in this regard are as follows:

Recruitment: It is the process of seeking and attracting a qualified

pool of job applicants to fill job vacancies. A job vacancy may be
filled from within or outside the organization. Job descriptions and
job specifications are important in the recruiting process because
they specify the nature of the job and the qualifications required of
job candidates. Methods used to recruit employees include job
posting, advertising in various media and executive search.
Selection: It involves choosing from the available candidates the
individual who is most qualified to fill the position. Steps in the
selection process include reviewing the application forms,
psychological testing, employment interviews, reference checking,
and a medical examination. Based on the information gathered,
a selection decision is made.
Human Resource Development: This activity is also known as
Training and Development. Training helps the employee gain the
specific job-related skills that will ensure effective performance of
work. Development is the process of helping the employee grow in
his or her career and achieve his or her career goals. Training and
development is a means of achieving global competitiveness,
improving productivity and the capacity to adapt to changes in the
environment.
Performance Appraisal: This activity is concerned with determining
how well employees are doing their jobs, communicating that
information to employees and establishing a plan for performance
improvement. The information obtained from the appraisal process
is also used as a basis for making decisions on promotion, rewards or
compensation or salary increment, placement, dismissal and
training and development needs.
Industrial Relations: This is also called employee relations.
Maintaining positive relationships between employers
(management) and employees is an important aspect of human
resource management. The purposes of industrial relations are to
ensure open communication, fair and equitable personnel policies
and practices and high work and life satisfaction as these will result
in trust, cooperation, commitment and high performance.

EMPLOYEE WELFARE

Staff welfare is an all-encompassing term covering a wide range of

facilities that are essential for the well-being of your employees.
 A comprehensive list of
welfare activities on labor
welfare into two broad
groups, namely:
1. Welfare measures inside
the work place; and
2. Welfare measures
outside the work place.

1. Welfare Measures inside the Work Place:

a) Conditions of the work Environment:
Safety and cleanliness: attention to approaches.
Housekeeping
Workshop sanitation and cleanliness.
Control of effluents
Distribution of work hours
Workmens safety measures
Supply of necessary beverages

b) Workers Heath Services:

Factory Health Center
Dispensary
Ambulance
Health Education
c) Economic services:
Co-operatives, loans, financial grants
Profit sharing and bonus schemes
Gratuity and pension
2. Welfare Measures outside the workplace:
Water, sanitation, waste disposal.
Roads, lighting, parks, recreation, playgrounds.
Schools: nursery, primary, secondary and high school.
Markets, co operatives, consumer and credit societies.
 Bank
Transport
Communication: post, telegraph and telephone.
Health and medical services: dispensary, emergency ward,
outpatient and in-patient care, family visiting etc.
Recreation: games; clubs; craft centers; cultural programs
Administration of community services and problems.
FUNCTIONAL AREAS
The functional areas of human resource management may be set forth as
follows:-
1. Organizational planning and Development: As the economy continues
to bounce back from the deepest recession in modern times, more and
more organizations are turning to Organizational Development (OD) to
help transform the business and support long-term growth. HR has an
increasingly important role in developing new blueprints and in helping
to implement change so that the right skills, behaviors, culture and
leadership style are in place to increase organizational effectiveness and
enhance business performance. Given that successful OD programs align
strategy, people, processes and systems.

2. Staffing and employment: One of the major tasks in HRM is

staffing. Staffing involves the entire hiring process from posting a job to
negotiating a salary package. Within the staffing function, there are four
main steps:

1. Development of a staffing plan

2. Development of policies to encourage multiculturalism at work
3. Recruitment
4. Selection
5. Promotion

3. Training and Development: Once we have spent the time to hire new
employees, we want to make sure they not only are trained to do the job
but also continue to grow and develop new skills in their job. This results
in higher productivity for the organization. Training is also a key
component in employee motivation. Examples of training programs might
include the following:
 Job skills training, such as how to run a particular computer
program
Training on communication

4. Wage and salary administration: One of the most important functions

of HR is the payment of proper salaries and wages to all employees. The
pay that the employee receives from the employer is the very reason for
their being in the job. The pay provides them with strong incentive to do
their jobs well and the rate of pay indicates their status in the company.

5. Motivation and incentives: Motivation- It is the process of stimulating

people to actions to accomplish the goals. In the work goal context the
psychological factors stimulating the peoples behavior can be -desire for
money, success, recognition, job-satisfaction, team work, etc. One of the
most important functions of management is to create willingness amongst
the employees to perform in the best of their abilities.
Incentives- Incentive is an act or promise for greater action. It is also
called as a stimulus to greater action. Incentives are something which is
given in addition to wages or salary. It means additional remuneration or
benefit to an employee in recognition of achievement or better work.
Incentives provide a spur or zeal in the employees for better performance.

6. Employee services and benefits: Employers can offer a wide variety of

benefits to their employees. Benefits are designed to help employees meet
basic needs they might not otherwise be able to meet on their own.
Services-Employee services can include anything an employer deems
necessary to provide as a perk for employees. Some companies provide
cafeterias and event catering services for employees. Others have coffee
shops. Employee services are more of a convenience than a true benefit.
Busy corporate offices, for example, might provide dry cleaning pickup
services for employees. Employers in remote locations might offer shuttle
services to and from work. The types of services depend upon each
employer. Small business owners can use employee services such as on-
site childcare to make their positions more attractive to potential
employees.
Benefits-Employee benefits differ from employee services in that benefits
tend to be necessities for many people. Basic insurance needs are covered
by many employee benefit plans. Insurance options provided by
employers can include health insurance, but they can also include life
insurance, accidental death and disability insurance, dental insurance and
unemployment insurance also. Other types of benefits usually include a
retirement plan in the form of a 401(k) or some other qualified tax-
deferred plan.
7. Employee records: Human Resource Managers maintain detailed
information on every employee within the organization. Employee data is
organized around a central screen containing information that provides
an overview of the employee. An employee becomes more than just a
number. Numerous sub-screens can be accessed from the central
employee details screen, which contain additional information on the
employee.

8. Labor or Industrial Relations: By labor relations is meant the

maintenance of healthy and peaceful labor-management relations
So that production/work may go on undisturbed.

9. Personnel Research and Personnel Audit: Personnel audit is a term

used for a case study of human resources in the organization. This is a
kind of audit; its subject is an objective and independent review and
assessment of the condition and suggestion of solutions to increase the
effectiveness of individuals, organizational units and whole organization.
Personnel research can be defined as a systematized investigation into the
matters of employees with an objective to solve their problems. According
to Dale Yoder, personnel research implies searching, investigation, re-
examination, reassessment and revaluation.

Q. 3. Explain the inter-phase between finance and other

functions.
Financial management is an integral part of overall management and not
merely a staff function. It is not only confined to fund raising operations
but extends beyond it to cover utilization of funds and monitoring its
uses. These functions influence the operations of other crucial functional
areas of the firm.
Marketing-Finance Interface- There are many decisions, which the
Marketing Manager takes which have a significant location, etc. In all
these matters assessment of financial implications is inescapable impact
on the profitability of the firm. For example, he should have a clear
understanding of the impact the credit extended to the customers is going
to have on the profits of the company. Otherwise in his eagerness to meet
the sales targets he is liable to extend liberal terms of credit, which is
likely to put the profit plans out of gear.
Production-Finance Interface- As we all know in any manufacturing
firm, the Production Manager controls a major part of the investment in
the form of equipment, materials and men. He should so organize his
department that the equipments under his control are used most
productively, the inventory of work-in-process or unfinished goods and
stores and spares is optimized and the idle time and work stoppages are
minimized. Similarly, he would have to make decisions regarding make or
buy, buy or lease etc. for which he has to evaluate the financial
implications before arriving at a decision.
Top Management-Finance Interface- The finance function also has a
strong linkage with the functions of the top management. Strategic
planning and management control are two important functions of the top
management. Finance function provides the basic inputs needed for
undertaking these activities.
Economics Finance Interface- The field of finance is closely related to
economics. Financial managers must understand the economic
framework and be alert to the consequences of varying levels of economic
activity and changes in economic policy. They must also be able to use
economic theories as guidelines for efficient business operation.
Accounting Finance Interface- The firms finance (treasurer) and
accounting (controller) activities are typically within the control of the
financial vice president (CFO). These functions are closely related and
generally overlap; indeed, managerial finance and accounting are often
not easily distinguishable. In small firms the controller often carries out
the finance function, and in large firms many accountants are closely
involved in various finance activities. However, there are two basic
differences between finance and accounting; one relates to the emphasis
on cash flows and the other to decision making.
Q. 4. Explain the different Marketing Environments and
the role of culture and sub culture.
The business environment is a marketing term and refers to factors and
forces that affect a firm's ability to build and maintain successful
customer relationships. The general marketing environment, therefore,
consists of all the factors and forces influencing the marketing function.
This includes both internal and external forces. Internal forces, i.e., the
intra firm environment, are largely within the control of the firm. It is
the generally uncontrollable forces outside the firm in the macro-
environment that pose the most important sources of opportunities and
threats to the company.

MACRO-ENVIRONMENT
Marketing concept is more an attitude of mind or a customer-oriented
business philosophy, rather than merely a functional area of
management. The marketing firm operates within a complex, dynamic,
external macro-environment. The company is not alone in doing business.
It is surrounded by and operates in a larger context. This context is called
the Macro Environment. It consists of all the forces that shape
opportunities, but also pose threats to the company.
Cyclical industries, for example,
are heavily influenced by the
macro environment, while
consumer staples are less
influenced. The macro
environment can also greatly
affect consumers directly,
affecting their ability and
willingness to spend.
Consumers reactions to the
broad macro environment are
closely monitored by businesses
and economists as a gauge for
an economys health.

COMPETITIVE ENVIRONMENT
In the business plan of every small enterprise is a section analyzing the
competitive environment. The competitive environment encompasses all
the external factors that compete with the services or products of the
small business. Ignoring any of these factors results in having an
incomplete picture that can lead to poor decision-making. The most
obvious examples of elements in a competitive environment are a
business's direct competitors, but other examples are regulatory sources,
indirect competitors and social and technological changes.
SUPPLIER ENVIRONMENT
The suppliers to a firm can also alter its competitive position and
marketing capabilities. These are raw material suppliers, energy
suppliers, suppliers of labor and capital. According to Michael Porter, the
relationship between suppliers and the firm epitomizes a power equation
between them. This equation is based on the industry condition and the
extent to which each of them is dependent on the other. The buyer-
supplier relationship is one of economic interdependence. Both parties
rely on each other for their commercial well being.

DISTRIBUTIVE ENVIRONMENT
Distributors are the intermediaries between the manufacturer and the
consumer. Distributors are marketing companies too, and participate in
the marketing process. Distributors are important channels since large
manufacturing brands do not wish to distribute all the way to the final
consumer. For example Coca-Cola cannot have a direct supplier
relationship with every consumer (although it does have a strong brand
relationship with consumers). Intermediaries perform this important
distribution role.

There are a number of different levels of distribution. A window

manufacturer might sell directly to the homeowner whereby there are no
intermediaries. Often intermediaries would be a wholesaler, a retailer, or
an agent.

POLITICAL ENVIRONMENT

The political factors affecting business are often given a lot of importance.
Several aspects of government policy can affect business. All firms must
follow the law. Managers must find how upcoming legislations can affect
their activities. The political environment can impact business
organizations in many ways. It could add a risk factor and lead to a major
loss. Increase or decrease in tax could be an example of a political
element.

TECHNOLOGICAL ENVIRONMENT

Technology, particularly the availability of big data coupled with a wide

variety of digital marketing channels, offers substantial opportunity for
marketing professionals. From the organizational perspective, technology
has impacted the ability to collect and organize marketing data, the
channels the organization can use to reach consumers, and the process of
developing different types and formats of advertising assets.
Organizations have more data, more marketing formats, and more online
places to communicate with consumers. Identifying the
ideal target market from the data, figuring out which channels this market
tends to use (social networks, etc.), and which products fill their needs is a
strategic necessity in the modern technological era for organizational
success.

ECONOMIC ENVIRONMENT

The economic factors of the business environment are all the variables
that impact how the consumer spends their money and the power of that
purchase. There are multiple factors that exist at any time. An example of
an economic factor is the recent recession influenced people to spend less
and save more which has impacted current consumer spending patterns.
The economic development of a country is an important element when
scanning the economic environment. The exchange rate of a country can
have an extensive impact on the profitability of a business. Relatively
small changes in the exchange rate may be the difference between profit
and loss. When promoting, selling a product it is important for an
organization to consider the extra financial information including current
rates, taxes etc. in the economy of the country.

THE ROLE OF CULTURE

Culture is the characteristics or behavior patterns of a group of people.

This is defined by many factors such as religion, language and social
habits. Basically anything that you encounter on a daily or regular basis
can influence your culture. Companies that are growing are always on the
lookout for new opportunities. Some of these opportunities present
themselves in new countries. Product diversification and growth may
demand a product to be introduced on a global level. To develop a
successful marketing strategy, an organization must take into
consideration the cultural influences of the society where a new product is
being introduced. People make decisions about consumption of a product
based on these cultural influences. For example, some countries, such as
the United States, are more individualistic, with citizens making
purchasing decisions based on personal preferences. In other countries,
such as Japan, people tend to make purchasing decisions based on the
welfare of a group, such as the family. The way this plays out in marketing
strategies is that ads focused on individuals do better in individualistic
countries while group advertising works better in countries with collective
group values.

THE ROLE OF SUB-CULTURE

Subculture is defined as a distinct cultural group that exists as an

identifiable segment within a larger, more complex society. Subcultures
are typically based on a number of factors taken singly or in
combination. Some of the more obvious foundations for sub-cultural
variation are (1) nationality (2) ethnicity, (3) age (4) geographic
region and (5) religion. Marketers classify market segments according
to identification with sub-cultural groups. By understanding how
identification with one or more subcultures influences attitudes and
behavior, marketers can better target to specific groups. Marketers
should develop product mixes, marketing strategies, and promotions
that appeal to targeted groups.

Q. 5. Explain Organizational Behavior and its different

major aspects.
Organizational behavior (OB) is the study of the way people interact
within groups. Normally this study is applied in an attempt to create more
efficient business organizations. The central idea of the study of
organizational behavior is that a scientific approach can be applied to the
management of workers. Organizational behavior theories are used for
human resource purposes to maximize the output from individual group
members.
Organizational Behavior (frequently abbreviated as OB) is a field of study
that investigates the impact that individuals, groups, and structure have
on behavior within organizations, for the purpose of applying such
knowledge toward improving an organizations effectiveness. Thats a lot
if words, so lets break it down. Organizational Behavior is a field of study.
This means that it is a distinct area of expertise with a common body of
knowledge. What does it study? It studies three determinants of behavior
in organizations: individual, groups, and structure. Additionally, OB
applies the knowledge gained about individuals, groups and the effect of
structure on behavior in order to make organizations work more
effectively.
To sum up our definition, OB is concerned with the study of what people
do in an organization and how that behavior affects the performance of
the organization. And because OB is especially concerned with
employment related situation, you should not be surprised to find that it
emphasizes behavior as related to jobs, work, absenteeism, employment
turnover, productivity, human performance, and management. There is
increasing agreement as to the components or topics that constitute the
subject are of OB. While there is still considerable debate as to the relative
importance of each, there appears to be general agreement that OB
includes the core topics of motivation, leader behavior and power
interpersonal communication, group structure and process, learning,
attitude development and perception change processes, conflict, job
design, and work stress.
Work-force Diversity, Declining Loyalty, Labor Shortages, Skill
Deficiencies, Psychology, Sociology, Social Psychology, Anthropology and
Political Science contribute to the Organizational Behavioral field.
Biographical characteristics such as Age, Gender, Marital Status, Number
of Dependents and Tenure affect the Organizational Behavior. Ability in
different areas like Intellectual, Physical, and Job Fit contribute to
activities in OB.

Q. 6. How economics work and discuss the relations

between the main economic players and institutions?
The primary function of an economy is integrating the 4 factors of
production - Land, Labor, Enterprise and Capital - to produce goods
profitably. This is made possible through the interactions between the
consumers (also the labor), private firms, financial sector and the
government sector. Furthermore, economics is concerned with solving
the basic economic problem, which is the existence of unlimited wants in
relation to the limited resources available on our planet. This leads us
making choices (which wants to satisfy through production and
consumption) and making sacrifices (which wants to give up as there only
a limited amount of resources available). Economics in general deals with
attempting to get the most out of the resources available. It deals with
anticipating consumer behavior, trends and using this analyzed
information to make decisions.

The last thing you should know is that economics is most broadly
categorized into two fields - Macroeconomics and Microeconomics.

Microeconomics deals with the interaction between individuals, i.e.,

individuals firms/industries, consumers. This deals with such things as
factors affecting the demand of goods, the concept of elasticity, factor
affecting supply of goods, the marginal utility theory and so forth.

Macroeconomics deals with the economy as a whole - this includes

concepts such as national income (GDP), aggregate demand and supply,
the multiplier effect, the factors affecting consumption, investment,
government expenditure and net exports, the exchange rate systems and
Balance of Payments.