Assignment No : 1

Object : WRITE A SHORT NOTE ON FOLLOWING TOPICS

1. Organization structure 2. Profit maximization and other objective of industrial firms 3. Theory of profitability 4. Economics of scale

PROFIT MAXIMIZATION & OTHER OBJECTIVE OF INDUSTRIAL FIRMS

In economics, profit maximization is the short run or long run process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenuetotal cost perspective relies on the fact that profit equals revenue minus cost and focuses on minimizing this difference, and the marginal revenuemarginal cost perspective is based on the fact that total profit reaches its maximum point where marginal revenue equals marginal cost. Basic definitions Any costs incurred by a firm may be classed into two groups: fixed costs and variable costs. Fixed costs, which occur only in the short run, are incurred by the business at any level of output, including zero output. These may include equipment maintenance, rent, wages of employees whose numbers cannot be increased or decreased in the short run, and general upkeep. Variable costs change with the level of output, increasing as more product is generated. Materials consumed during production often have the largest impact on this category, which also includes the wages of employees who can be hired and laid off in the span of time (long run or short run) under consideration. Fixed cost and variable cost, combined, equal total cost. Revenue is the amount of money that a company receives from its normal business activities, usually from the sale of goods and services (as opposed to monies from security sales such as equity shares or debt issuances).

Marginal cost and revenue, depending on whether the calculus approach is taken or not, are defined as either the change in cost or revenue as each additional unit is produced, or the derivative of cost or revenue with respect to the quantity of output. For instance, taking the first definition, if it costs a firm 400 USD to produce 5 units and 480 USD to produce 6, the marginal cost of the sixth unit is 80 dollars. Total revenue - total cost perspective

Profit Maximization - The Totals Approach To obtain the profit maximising output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph. The profit-maximizing output is the one at which this difference reaches its maximum. In the accompanying diagram, the linear total revenue curve represents the case in which the firm is a perfect competitor in the goods market, and thus cannot set its own selling price. The profit-maximizing output level is represented as the one at which total revenue is the height of C and total cost is the height of B; the maximal profit is measured as CB. This output level is also the one at which the total profit curve is at its maximum. If, contrary to what is assumed in the graph, the firm is not a perfect competitor in the output market, the price to sell the product at can be read off thedemand curve at the firm's optimal quantity of output.

Marginal revenue-marginal cost perspective

An alternative perspective relies on the relationship that, for each unit sold, marginal profit (M) equals marginal revenue (MR) minus marginal cost (MC). Then, if marginal revenue is greater than marginal cost at some level of output, marginal profit is positive and thus a greater quantity should be produced, and if marginal revenue is less than marginal cost, marginal profit is negative and a lesser quantity should be produced. At the output level at which marginal revenue equals marginal cost, marginal profit is zero and this quantity is the one that maximizes profit. Since total profit increases when marginal profit is positive and total profit decreases when marginal profit is negative, it must reach a maximum where marginal profit is zero - or where marginal cost equals marginal revenue - and where lower or higher output levels give lower profit levels. In calculus terms, the correct intersection of MC and MR will occur when:[1]

The intersection of MR and MC is shown in the next diagram as point A. If the industry is perfectly competitive (as is assumed in the diagram), the firm faces a demand curve (D) that is identical to its marginal revenue curve (MR), and this is a horizontal line at a price determined by industry supply and demand. Average total costs are represented by curve ATC. Total economic profit are represented by the area of the rectangle PABC. The optimum quantity (Q) is the same as the optimum quantity in the first diagram. If the firm is operating in a non-competitive market, changes would have to be made to the diagrams. For example, the marginal revenue curve would have a negative gradient, due to the overall market demand curve. In a non-competitive environment, more complicated profit maximization solutions involve the use of game theory. Case in which maximizing revenue is equivalent In some cases a firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of production up to a certain maximum. In this case marginal profit plunges to zero immediately
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after that maximum is reached; hence the M = 0 rule implies that putput should be produced at the maximum level, which also happens to be the level that maximizes revenue. In other words the profit maximizing quantity and price can be determined by setting marginal revenue equal to zero, which occurs at the maximal level of output. Marginal revenue equals zero when the total revenue curve has reached its maximum value. An example would be a scheduled airline flight. The marginal costs of flying one more passenger on the flight are negligible until all the seats are filled. The airline would maximize profit by filling all the seats. The airline would determine the Changes in total costs and profit maximization A firm maximizes profit by operating where marginal revenue equal marginal costs. A change in fixed costs has no effect on the profit maximizing output or price. The firm merely treats short term fixed costs as sunk costs and continues to operate as before This can be confirmed graphically. Using the diagram illustrating the total costtotal revenue perspective, the firm maximizes profit at the point where the slopes of the total cost line and total revenue line are equal. An increase in fixed cost would cause the total cost curve to shift up by the amount of the change. There would be no effect on the total revenue curve or the shape of the total cost curve. Consequently, the profit maximizing point would remain the same. This point can also be illustrated using the diagram for the marginal revenuemarginal cost perspective. A change in fixed cost would have no effect on the position or shape of these curves. Marginal product of labor, marginal revenue product of labor, and profit maximization The general rule is that firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs. The profit maximization issue can also be approached from the input side. That is, what is the profit maximizing usage of the variable input? To maximize profit the firm should increase usage of the input "up to the point where the input's marginal revenue product equals its marginal costs" So mathematically the profit maximizing rule is MRPL = MCL, where the subscript L refers to the commonly assumed variable input, labor. The marginal revenue product is the change in total revenue per unit change in the variable input. That is MRPL = TR/L. MRPL is the product of marginal revenue and the marginal product of labor or MRPL = MR x MPL. Economies of scale conditions by maximizing revenues.

As quantity of production increases from Q to Q2, the average cost of each unit decreases from C to C1. Economies of scale in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producers average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase.[1] Diseconomies of scale is the opposite. Overview The common sources of economies of scale are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), financial (obtaining lower-interest charges when borrowing from banks and having access to a greater range of financial

instruments), marketing (spreading the cost of advertising over a greater range of output in media markets), and technological (taking advantage of returns to scale in the production function). Each of these factors reduces the long run average costs(LRAC) of production by shifting the short-run average total cost (SRATC) curve down and to the right. Economies of scale are also derived partially from learning by doing. Economies of scale is a practical concept that may explain real world phenomena such as patterns of international trade, the number of firms in a market, and how firms get "too big to fail." The exploitation of economies of scale helps explain why companies grow large in some industries. It is also a justification for free trade policies, since some economies of scale may require a larger market than is possible within a particular country for example, it would not be efficient for Liechtenstein to have its own car maker, if they would only sell to their local market. A lone car maker may be profitable, however, if they export cars to global markets in addition to selling to the local market. Economies of scale also play a role in a "natural monopoly." The management thinker and translator of the Toyota Production System for service, Professor John Seddon argues that attempts to create economies from building scale is a myth in the service sector. Instead, he believes that economies will come from improving the flow of a service, from first receipt of a customers
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demand to the eventual satisfaction of that demand. In trying to manage and reduce unit costs, firms often raise total costs by creating failure demand Economies of scale and returns to scale Economies of scale is related to and can easily be confused with the theoretical economic notion of returns to scale. Where economies of scale refer to a firm's costs, returns to scale describe the relationship between inputs and outputs in a long-run (all inputs variable) production function. A production function has constant returns to scale if increasing all inputs by some proportion results in output increasing by that same proportion. Returns are decreasing if, say, doubling inputs results in less than double the output, and increasing if more than double the output. If a mathematical function is used to represent the production function, and if that production function is homogeneous, returns to scale are represented by the degree of homogeneity of the function. Homegeneous production functions with constant returns to scale are first degree homogeneous, increasing returns to scale are represented by degrees of homogeneity greater than one, and decreasing returns to scale by degrees of homogeneity less than one. If the firm is a perfect competitor in all input markets, and thus the per-unit prices of all its inputs are unaffected by how much of the inputs the firm purchases, then it can be shown[3][4][5] that at a particular level of output, the firm has economies of scale if and only if it has increasing returns to scale, has diseconomies of scale if and only if it has decreasing returns to scale, and has neither economies nor diseconomies of scale if it has constant returns to scale. In this case, with perfect competition in the output market the long-run equilibrium will involve all firms operating at the minimum point of their long-run average cost curves (i.e., at the borderline between economies and diseconomies of scale). If, however, the firm is not a perfect competitor in the input markets, then the above conclusions are modified. For example, if there are increasing returns to scale in some range of output levels, but the firm is so big in one or more input markets that increasing its purchases of an input drives up the input's per-unit cost, then the firm could have diseconomies of scale in that range of output levels. Conversely, if the firm is able to get bulk discounts of an input, then it could have economies of scale in some range of output levels even if it has decreasing returns in production in that output range. The literature assumed that due to the competitive nature of reverse auction, and in order to compensate for lower prices and lower margins, suppliers seek higher volumes to maintain or increase the total revenue. Buyers, in turn, benefit from the lower transaction costs and economies of scale that result from larger volumes. In part as a result, numerous studies have indicated that the procurement volume must be

sufficiently high to provide sufficient profits to attract enough suppliers, and provide buyers with enough savings to cover their additional costs. THEORY OF PROFITABILITY: INTRODUCTION Profitability Analysis enables you to evaluate market segments, which can be classified according to

products, customers, orders or any combination of these, or strategic business units, such as sales organizations business areas, with respect to your company's profit or contribution margin.

The aim of the system is to provide your sales, marketing, product management and corporate planning departments with information to support internal accounting and decision-making. Two forms of Profitability Analysis are supported: costing-based and account-based. _ Costing-based Profitability Analysis is the form of profitability analysis that groups costs and revenues according to value fields and costing-based valuation approaches, both of which you can define yourself. It guarantees you access at all times to a complete, shortterm profitability report. _ Account-based Profitability Analysis is a form of profitability analysis organized in accounts and using an account-based valuation approach. The distinguishing characteristic of this form is its use of cost and revenue elements. It provides you with a profitability report that is permanently reconciled with financial accounting. You can also use both of these types of CO-PA simultaneously.

Features:
In the application component CO-PA, you can define your master data [Seite 39], the basic structures of this form of profitability analysis. This includes both units you want to evaluate (characteristics) and the categories in which you analyze values. In costing-based CO-PA, you define value fields in which to store your data for analysis. In account-based CO-PA, the values are structured by account.

Using the SAP master data (customer, product, customer hierarchy) or CO-PA derivation rules, the system can derive additional characteristics based on the ones entered manually or transferred from primary transactions. The combination of characteristic values forms a multidimensional profitability segment, for which you can analyze profitability by comparing its costs and revenues. If you reorganize parts of your company, such as your sales districts or customer hierarchies, you can change the assignments between characteristics for data that has already been posted. The actual postings represent the most important source information in CO-PA. You can transfer both sales orders and billing documents from the Sales and
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Distribution (SD) application component to CO-PA in realtime. In addition, an interface program is available to let you transfer external data to the R/3 System. You can also transfer costs from cost centers, orders and projects, as well as costs and revenues from direct postings (G/L account postings in FI, orders received in MM, and so on) or settle costs from CO to profitability segments. In costing-based CO-PA, you can valuate incoming sales orders or billing documents to automatically determine anticipated sales deductions or costs. You can also revaluate your data periodically to adjust the initial, realtime valuation or add the actual costs of goods manufactured. In CO-PA Planning you can create a sales and profit plan. Whereas both types of Profitability Analysis can receive actual data in parallel, there is no common source of planning data. Consequently, you always plan either in accounts (account-based CO-PA) or in value fields (costing-based COPA). In costing-based CO-PA you can use automatic valuation to calculate planned revenues, sales deductions and costs of goods manufactured based on the planned sales quantity. The manual planning function lets you define planning screens for your organization. With this you can display reference data in planning, calculate formulas, create forecasts, and more. Planning can be performed at any degree of detail. For example, you can plan at a higher level, and have this data distributed top-down automatically. In automatic planning, you can copy and revaluate actual or planning data for a large number ofprofitability segments at once. You can also transfer planned sales quantities from (costing-based) CO-PA to Sales and Operations Planning (SOP) for the purpose of creating a production plan there. The Information System lets you interactively analyze existing data from a profitability standpoint using the functions of the drilldown reporting tool. There you can navigate through a multidimensional data cube using a number of different functions (such as drilldown orswitching hierarchies). The system displays data in either value fields or accounts, depending on the currently active type of Profitability Analysis and the type to which the report structure is assigned. You can change the display parameters online directly from the displayed report. You can tore report structures with predefined sort orders, number formats and so on, and execute these online or in the background at any time.

Characteristics for Profitability Segments All the characteristics in the operating concern are used in the line item. However, you can restrict the characteristics for a profitability segment [Extern] that forms the basis for valuation. This is because it is unnecessary and impractical for a profitability segment to use characteristics that are almost always populated and each has a different value. You should deactivate such characteristics when creating a profitability segment. Otherwise the data volume of the profitability segments is too large and hampers system performance. One characteristic that should not be used in profitability segments is the sales order in repetitive manufacturing.
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REFRENCES :
1. Cobia, David, editor, Cooperatives in Agriculture, Prentice-Hall, Englewood Cliffs, NJ (1989), p. 50. 2. "Longo Mai, Costa Rica". Sonador.info. Retrieved 27 December 2011. 3. Why Nicaraguan Peasants Stay in Agricultural Production Cooperatives Ruerd Ruben and Zvi Lerman 4. John M. Staatz, "Farmers' incentives to take collective action via cooperatives: A transaction-cost approach," in: Cooperative Theory: New Approaches, ed. J.S. Royer, Washington, DC: USDA ACS Service Report 18 (July 1987), pp. 87-107. 5. Chambo, Suleman Adam (2830 April 2009).

RESULT :

Thus we have studied the Topic

1. Profit maximization and other objective of industrial firms 2. Theory of profitability 3. Economics of scale

ASSIGNMENT-2 (1) Location Analysis

Facility location, also known as location analysis, is a branch of operations research and computational geometry concerning itself with mathematical modeling and solution of problems concerning optimal placement of facilities in order to minimize transportation costs, avoid placing hazardous materials near housing, outperform competitors' facilities, etc Minsum facility location A simple facility location problem is the Fermat-Weber problem, in which a single facility is to be placed, with the only optimization criterion being the minimization of the sum of distances from a given set of point sites. More complex problems considered in this discipline include the placement of multiple facilities, constraints on the locations of facilities, and more complex optimization criteria. In a basic formulation, the Facility Location problem consists of a set of potential facility sites L where a facility can be opened, and a set of demand points D that must be serviced. The goal is to pick a subset F of facilities to open, to minimize the sum of distances from each demand point to its nearest facility, plus the sum of opening costs of the facilities. The Facility Location problem on general graphs is NP-hard to solve optimally, by reduction from (for example) the Set Cover problem. A number of approximation algorithms have been developed for the facility location (FP) problem and many of its variants. Without assumptions on the set of distances between clients and sites (in particular, without assuming that the distances satisfy the triangle inequality), the problem is known as Non-Metric Facility Location and is approximable within a factor O(log(n)). This factor is tight, via an approximation-preserving reduction from the Set Cover problem. If we assume distances between clients and sites are undirected and satisfy the triangle inequality, we are talking about a Metric Facility Location problem (MFL). The MFL is still NP-hard and hard to approximate within factor better than 1.46. The currently best known approximation algorithm achieves approximation ratio of 1.488. Minimax facility location: The minimax facility location problem seeks a location which minimizes the maximum distance to the sites.

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In the case of the Euclidean metric, it is known as the smallest enclosing sphere problem or 1-center problem. Its study traced a least to the year of 1860. The planar case (smallest enclosing circle problem) may be solved in optimal time [edit]Maxmin facility location The maxmin facility location or obnoxious facility location problem seeks a location which maximizes the minimum distance to the sites. In the case of the Euclidean metric, it is known as thelargest empty sphere problem. time REFRENCES: 1. D. S. Hochbaum. Heuristics for the fixed cost median problem. Math. Programming, 22:148-162, 1982. 2. Shi Li. A 1.488-approximation algorithm for the uncapacitated facility location problem. International Colloquium on Automata, Languages and Programming (ICALP), pages 77-88, 2011 [1] 3. Franco P. Preparata and Michael Ian Shamos (1985). Computational Geometry An The planar case (largest empty circle problem) may be solved in optimal .

Introduction. Springer-Verlag. 1st edition: ISBN 0-387-96131-3; 2nd printing, corrected and expanded, 1988: ISBN 3-540-96131-3; Russian translation, 1989: ISBN 5-03-001041-6., p. 256 4. G. T. Toussaint, "Computing largest empty circles with location constraints," International Journal of Computer and Information Sciences, vol. 12, No. 5, October, 1983, pp. 347-358.

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(2) Productivity Analysis

Productivity is a vital indicator of economic performance of an economic system. Productivity is not an end in itself. In fact, it is a mechanism for improving the material quality of life. Productivity is fundamental to progress throughout the world. It is at the heart of economic growth and development, improvements in standards of living and quality of life.

Definition
Productivity is defined as the goods and services produced per unit of labour, capital or both. The ratio of output to labour and capital is a total productivity measure. In simple words, productivity is the output per unit of input employed. The basic definition of productivity is: Total output Productivity = ----------------------------Total input Kopleman has defined productivity as the relationship between physical output of one or more of the associated physical inputs used in production. When single input is used to measure productivity, it is called factor productivity and when all factors are combined together for the purpose, it is known as total factor productivity. Concept of Productivity in Banking The concept and definition of productivity as applied in manufacturing industries cannot be applied as such in banking industry because it is primarily a service industry. In the field of banking, the various products are accounts, drafts, exchange remittances, cheques, travellers cheques, credit cards, debit cards, services for guarantees, various kinds of loans like housing loan, education loan, car loan etc. Identification and measurement of output in banking is very difficult exercise as it is not possible to bring various services to measure output. However, banking being an important economic activity cannot afford to loose sight of the concept of productivity. Application of the concept in the Indian banking industry becomes all the more difficult, as it gets associated with such diverse aspects like operational cost effectiveness, profitability, customer services, priority sector lending, mobilization of deposits, deployment of credit in rural and backward regions. Butas we know that banks are the mirror of an economy. Therefore better functioning of banking sector may lead to the overall improvement of the economy. In fact, banks act as a link between those who want to save and those who want to invest, so improvement in the productivity of the banking
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sector is very much needed who want to save and obviously, difficulty is not in applying the broader concept of productivity as ratio of output and input, but is in measuring output in the form of services. The concept of productivity analysis in banking sector may give misleading results, if not used carefully. If we see the productivity of PSBs in relation to the productivity of foreign banks, then it will be noticed that productivity of foreign banks (say business per employee) is much higher, but such comprise is misleading. Productivity at the national level is dependent on various factors like per capita income, saving habits and banking habits. In addition to it, there are regional variations which affect the productivity of various players in the banking field. So in order to have a reliable idea of productivity, it is necessary to analyze every segment, different sizes of banks and regionwise positioning of banks. As in banking industry in India, volume business became progressively imperative to secure more resources for meeting social objectives while maintaining viability of operations, business level may be preferred as being more representative of productivity.Productivity helps firms, industries and nations to achieve sustainable competitive advantage. Industry is a thrust area for countries in their quest for competitiveness. It must be noted that banks which have maintained the momentum of continuous growth, and profitability showed better ratio of manpower effectiveness. Each element has crucial sub- components which serve as building blocks for productivity. The Government policies effectively support competitiveness if they are structures around productivity driven reform mechanism, cost deflating tariff structure and technology and industry vision.

REFRENCES:

1. Kopleman, Richard E., Managing Productivity Organizations. McGraw Hill Book Company, New Delhi, 1986, p.3. 2. Singh, Jagwant, Productivity in the Indian Banking, A Thesis submitted to Panjab University, Chandigarh, Jan. 1990, p.54.

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(3) INPUT - OUTPUT ANALYSIS

Input - output analysis is a method of calculating income and employment multipliers which takes account of differences in technology between industries and of the linkages between industries. The data required is the input-output accounts for the region often referred to as the transactions matrix

Here just two industrial sectors are used. Their output and the income and employment generated in each sector is determined by the final demand for the output of each sector. Input-output analysis is a method for estimating how changes in final demand will affect these outputs, incomes and employment. Calculation of Gross Domestic Product 1. Use Y = household income + indirect taxes + CCA = 160 + (6 + 7) + 0 = 173 2. Use Y = C + I + G + X - M = (160 - 20) + 0 + (55 - 22) + 80 80=173

Technical Coefficients Matrix

I - O analysis assumes fixed coefficients in production. That is that in each sector the ratios of the various inputs to the output of the sector do not depend on the scale of production. Thus in the example, the inputs needed to produce one unit of output in each of the sectors is given by

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The top 2 x 2 portion of the table is the matrix of technical coefficients which will be referred to as A . The other coefficients will also be needed in the calculation of impacts

Calculation of Impacts Suppose there is an increase in final demand for the nonmanufacturing sector of 1. A round by round approach can be used to calculate the impact this will have on the outputs of each of the two sectors. The additional requirements are

The totals are the additional outputs manufacturing and nonmanufacturing must produce in order to have one more unit of nonmanufacturing output available for sale to final demand. They are called output multiplier.

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(4) Concentration of Economic Power No topic could be more timely .than that chosen for your discussions fo~ this meeting-Concentration of Economic Power. Nothing in my generl;ttiQn seems so striking as the bigness' of everything. There are certain advantages in size, readily appreciated when you are a part of that group, whether it is a business, a brotherhood, a political party or a nation. Our forefathers came into a trackless' land of forests, great plains and lofty moun- . tains, dotted here and there with a few unlettered, chiefly nomadic, savages. With our hands and brains we have changed that wild continent into this civilized land. What a series of concentrations that development has seen: from the wigwams of Manhattan to the Empire State Building; from Fort Dearborn to Chicago; from a few thousand scattered Indians to a multitude of inhabit'ants, numbered by the tens of millions; from a lone ironworker to the rolled-steel mill. Each' generation has gone through The population has almost ~ripled in my lifetime. My father saw the first railroad and the first aeroplane, with the telephone, the electric light and the automobile sandwiched iil between .. Today we deal with the wonders. of electroilics and atomic energy. The post-Revolution land speculations, the Bank of the United States under Nicholas Biddle, the transcontinental railroads, the tariff beneficiaries, the trusts, and labor' unions have in their turn raised fears because of their concentrated economic power. The shift from a rural to an urban economy not only ended Thomas Jefferson's .dream of an agricultural society, law-abiding and moral created apprehension as. to sickness. and crime in more congested areas. Nom me face Megalopolis, that concentration of humanity that crowds the Atlantic .littoral from Boston through Washington, and its western counterpart from the Golden Gate to the Mexican Border. The decreasing death rate has- assuaged our fears, of unhealthy cities, aided as it has been by improved sanitation. As for crime our best efforts have not slowed its increase in excess of the growth of population. Whatever the crime, wherever its scene, available reports emphasize the growth. But we should be neither surprised nor frightened. Such shifts and changes are normal. They are the natural social and economic evolutions, and they are accompanied by political adaptations- as well. It is Darwins theory of evolution as applied to institutions. Gone the rural society -of the eighteenth century, replaced by

qnechanization and urban concentration, but that very concentration has induced many of US to turn again. To the suburbs or to the villages, if not to the farms, to find space for our factories and our homes. We repeat the lament of Daniel Boone in departing from Kentucky in the 1790s for the then open prairies of Missouri, It is too crowded here. Fortunately perfection appears only in a mirage. of the future. Of. course, the individualism of the frontiersman has been swamped by organized groups. Though some deplore the change,
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it is hard to see how even a lot of Paul Bunyans could accomplish the myriad of tasks necessary for our present economy. With the concentration of economic power, there has proceeded step by -step an increasing exercise of governmental power-state and national. The use -of thatmpower has varied with the need. Political power was used to achieve federal supremacy and state control, as distinct from district,. pr,ecinct, township or county, over human safety and welfare, roads and schools. It is an ever-changing but never-ending force, made up of. The activities and influence of all, not of men in public life alone. As Americans, the circle' of our responsibilities 'cannot be narrower than the welfare of all our citizens, perhaps of all humanity, though each one's actual contribution is necessarily more limited. "No man, is an !land, intire of it selfe .. " Our broad aim is social welfare. In our Country -such concentrations seem the natural result of the growth of population and business. No personal leadership has created the situation, and the resolution of the difficulties inherent in their development depends upon the conclusions as to their social value. Generalizations are easy. ' Everyone admits the advantages of organizations. In industry they must be adequate for large-scaie economies and 'production, but they must not use theif power to command the market in any line of commerce. In nonpolitical associations their size should not be used so as to compel unfairly the adoption of measures they support. ,In public life we are happily spared the disadvantages. of government by splinter parties and we believe the varying points of view of members of the dominant' organizations give sufficientmcompetition in the luarket place 9f political ideas., An effective approach to the seething and, changing ,problems tendered by concentrations of power must be psychologically, philosophically and politically sound. No wonder one trembles 'to comment. There is fear and aggressiveness, selfishness and group pressures, stupidity and ignorance: 'All evils cannot be eradicated but at least they can be counterbalanced within ,tolerable limits. There will be shifts of interest and of facts. One gigantic effort will not produce a final solution for the problems arising from misuse of power. They are unending and change with the holders. This meeting invites reflection on how to handle our concel1trations of economic power to further the better ment of socie,ty in the approaching decades. 'Recognizing the truism that it is easier to criticize than to construc't, I am sure the points of view expressed during this conference will bear useful fruit.

REFRENCES:

1. F. B. I:'Unifo& Crime Reports of 1956. See United States v. du Pont, 351 U. S.

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2.Relations Act, 61 Stat. 140, Q 8 (a) (3) ; Agricultural Adjust- .merit Act of 1938; Vickard v. Filburn,.317 U. s. 111; Schwartz, Competition in Regulated Industries, 67 Harv. I;. Rev.. 436. 8 12 Writings-Memorial Ed. 254.

3. Cf. Edwards v. California, 314 U. S: ,160.' Cf. Newcomer, Big Business Executive; Business leaders

W. L. Warner,

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(5) CRITICAL ANALYSIS

To write an effective critique you must first be a critical reader. You must carefully analyze a writer's argument, perspective, and/or information presented to determine strengths and weaknesses. You must look at the work objectively, using certain criteria to evaluate it. Because a critique is also personal, it will also include your own opinions and reactions. You may find the following three-stage procedure helpful when writing a critique.

Stage I: Prepare

1. Prepare to read. First, consider the title of the article. Reflect on what it means to you. What do you already know about this topic? What do you believe? What do you predict the article will cover?

2. Read the article actively. As you read each paragraph, hold these key questions in your mind: What's the main idea in this paragraph (or section)? What facts or details support the ideas? How do the important ideas relate to each other? During this reading you may want to mark major points and make a few brief marginal notes to remind you of the content, but do not spend too much time yet in notetaking activities. Your main focus should be on reading for the key questions.

3. Respond to the article subjectively. Freewrite for five minutes. Record any feelings, reactions, or thoughts you have about the article. Does it interest you? Excite you? Is it disturbing or provoking? Does it remind you of anything/anyone?

4. Respond objectively. Write a brief summary of the article. Do not include any of your own ideas or opinions. Stage II: Analyze Before you begin writing your critique, you may want to read it again with several critical questions in mind: a. Background: What is the nature of the article? Who wrote it and what are her/his qualifications for writing it?

b. Purpose: Why was the article written? What is its purpose? What are the objectives of the article?

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What kind of material is presented to achieve those objectives? What is the significance of the article? How does it relate to other materials on the same subject?

c. Thesis: What is the writer's position? Is it stated directly and clearly? What are the writer's key assumptions? Are they explicit or implicit? Do you detect biases? Are the assumptions and biases obvious, or are they hidden behind a stance of neutrality and objectivity? (An assumption is a belief about something. It is often not stated by a writer. Assumptions underlie all human behavior. For example, when you go to your classroom, you assume your teacher will show up. You should critically examine all assumptions, even those in sync with your own.)

d. Evidence: What does the writer provide to support her/his position? What are the writer's specific arguments? Is the evidence believable? Authoritative? Sufficient? Logical or emotional? Are you convinced?

e. Refutation: Does the writer present her/his thesis as the only reasonable position? Or has the writer clearly and fairly presented any opposing sides? Has the writer shown the opposing arguments to be invalid? Has the writer overlooked any possible opposition?

f. Appeal: What is the appeal of the article? What are some of its most striking or illuminating qualities? What, if any, are its striking deficiencies? What is the writer's style or tone? Authoritative? Speculative? Reasonable? Suggestive? What kind of language does the writer? Does it add to her/his credibility?

Stage III: Write the Critique 1. In your first paragraph state the subject of the article you are analyzing and its author. You might give some preliminary information about both. You may want to include the premise or main point of the article. Then write a statement that asserts your main point--your evaluation of the article--and shows the direction you will pursue in your discussion.

2. Review the information (including the author's key assumptions) that must be understood before the position you plan to take on the article can be appreciated.

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. 3. State your conclusions, reminding the reader of the points you've made and the reasons you have for making them. Remember, you have made judgments based upon a specific set of criteria you have discussed. What emerges from your analysis of the reading as a whole? Has your own thinking changed? What thoughts did it provoke? Did the article reinforce what you already knew or believed? Do you think differently about the world as a result of reading the article?

Writing Process Stragegy For the best writing product, follow these steps when writing your critique: 1. Prewrite: It's important before you begin writing a draft, to list ideas, mind map, brainstorm, freewrite, or do some kind of activity that lets your mind run loose with your thoughts. (If you have answered the questions in the "Analyze" section above, you will have many notes to help you get started.)

2. Draft: From your prewriting notes, consider the direction you want to take. What's your main idea (thesis)? How will you organize your points? Consider the steps in Stage III above and write a draft. DO NOT worry about perfect sentence structure, grammar, spelling, punctuation, etc. at this time! Just get your thoughts on paper.

3. Revise: It's useful to let some time pass between drafting and revising a paper. Your mind will incubate thoughts, and when you leave them alone for awhile and take a fresh look, you may think of new things or have a new perspective on what you've already written. What was a puzzle to you yesterday make be clearer today. When you revise your paper, you make sure that you have a clear thesis, that you have stayed focused on that idea with relevant details, and that you have ordered your ideas/analysis in a logical, interesting way. This is the time to make sure that the connections between sentences and paragraphs are clear. You should use transition words to make your connections clear.

4. Edit/Proofread: The final stage is for finesse. Check your spelling, punctuation, and sentence structure. Make sure you haven't left anything important out. REFRENCES: 1. Not in Our Classrooms: Why Intelligent Design Is Wrong for Our Schools by Eugenie Carol Scott, Glenn Branch. Beacon Press, 2006. Page 30.

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2. 'critical analysis of evolution' may be the new creationist battle cry." Ronald L. Ecker (August, 2006; updated July, 2007). "Critical Analysis of Evolution". (Or, What Will They Think of Next?). Hodge & Braddock. Retrieved 2007-08-17. 3. What Are Darwinists So Afraid Of?, Jonathan Witt, World Net Daily, July 27, 2006 RESULT:- Thus we have studied the (1) Location analysis (2) Productivity analysis (3) Input-Output analysis (4) Concentration of economics power (5) Critical analysis

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Assignment No : 3

Labour Legislation
Introduction:
The term `labour legislation is used to cover all the laws which have been enacted to deal with employment and non-employment wages, working conditions, industrial relations, social security and welfare of persons employed in industries.

Need for labour legislation in India:

1. Organized industry in a planned economy calls for the spirit of co-operation and mutual dependence for attaining the common purpose of greater, better and cheaper production. 2. Since this has not been happening voluntarily, the need for State intervention. 3.In India, labour legislation is treated as an arm of the State for the regulation of working and living conditions of workers. The need for labour legislation may be summarized as under: 1. Necessary for the health, safety, and welfare of workers; 2. Necessary to protect workers against oppressive terms as individual worker is economically weak and has little bargaining power; 3.To encourage and facilitate the workers in the organization; 4. To deal with industrial disputes; 5. To enforce social insurance and labour welfare schemes.

Objectives:
The objectives of labour legislations are two-fold: o Preservation of the health, safety and welfare of workers; and o Maintenance of good relations between employers and employees.

Principles of labour legislation:

Social Justice: 1. The essence of democracy is ensuring social justice to all sections of the community. 2. This demands the protection of those who cannot protect themselves. 3. In modern industrial set-up, workers, left to themselves, are unable to protect their interest. 4. Therefore, the State has to intervene to help them by granting them freedom of association, the power of collective bargaining and by providing for mediation or arbitration in the case of industrial conflict. Social Equity: 1. Legislation based on this principle provides for achievement of definite standards. Standards in terms of living, position in society etc. of the working population. These standards for the working class can be achieved by bringing about changes in the Law of our land. 2. Power to change the Law is exercised by the government.
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Existing laws may be amended to meet the changed standards.

National Economy:
1. Measures have to be provided through legislation to: Ensure normal growth of industry for the benefit of the nation as a whole; Satisfy the physical and intellectual needs of the citizens; Ensure the growth of industrial efficiency such as to adjust the wage system with a view to increase the productivity and prosperity of the workers.

International Uniformity:
1. Since its inception, securing minimum standards (for the working population worldwide) on a uniform basis in respect of all labour matters has been the main objective of ILO. 2.To this end, conventions are passed at the conferences of ILO. 3. As a member of the ILO, adopting these conventions would require appropriate legislation to be brought about. 4. The influence of international labour conventions has been significant in shaping the course of labour legislation in India.

Labour Legislation in India:

In India, we have many labour laws that affect the labour conditions. The main laws are: 1. The Factories Act, 1948. 2. The Trade Union Act, 1926. 3. The Industrial Disputes Act, 1947. 4. The Payment of Wages Act, 1936. 5. The Minimum Wages Act, 1948. 6. The Equal Remuneration Act, 1976. TRADE UNION LEGISLATION Background to Trade Union Legislation in India: In India, labour organizations came into existence in the last decade of the 19th Century. But they appeared in their modern form only in 1914. Their numbers increased, their membership expanded and they became active in seeking to promote and safeguard the interest of workers. But they had to face hostilities from the employers and the public authorities. 1. The legality of trade unions was doubted. 2. They were perceived as bodies trying to restrain others from exercising a lawful profession, trade, or business. 3. For example, the Indian Penal Code and the Indian Contract Act were interpreted against them. As a result, members of trade unions who were pursuing their rights were severely punished. The scenario was so because at that time, the Common Law was applicable to the trade unions. They did not have a separate legislation governing them.
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Strong demands were made for legislation recognizing workers right to organize and engage in concerted activities. In 1921, Mr. N.M. Joshi, the then General Secretary of AITUC, moved a resolution that the Legislative Assembly adopted. 4. The resolution urged the Government to take immediate steps for registration of trade unions and protection of the legitimate trade union activities. The local state Governments were requested to ascertain the view of public bodies and private persons on issues like the proposed legislation, recognition of strikes, protection of trade unions from civil and criminal liabilities, management of unions, etc. After receiving the feed-back from the local State Governments, the Government of India drew up a Bill that was introduced in the Legislative Assembly on 31-Aug-1925. The Bill was passed in 1926 and the Trade Union Act came into existence. 5. The Act came into force on 01-Jun-1927. The Act, with subsequent amendments, is still in force in the country.

Efforts at Amendments:
Trade Unions (Amendment) Act, 1947: 1. The issue of employers reluctance in recognizing trade unions was felt since the very enforcement of the Act. 2. To this end, in 1946, the Trade Unions (Amendment) Bill was put before the Central Legislature. The Bill provided for the compulsory recognition of registered trade unions. 3. The Bill was referred to the Select Committee for their vetting and suggestions. 4. On the basis of their recommendations, the Bill was passed on 13-Nov-1947. 5.The Governor General of India gave his consent on 20-Dec-1947. 6. The Indian Trade Unions (Amendment) Act, 1947: Introduced penalties for certain unfair labour practices by recognized trade unions as well as employers. Provided for compulsory recognition of trade unions on the basis of certain prescribed conditions. A registered trade union could apply for recognition to the employer. In case such recognition could not be received within three months, the trade union could approach the Labour Court. If the Labour Court believed that the trade union fulfilled conditions of recognition, it could pass an order directing such recognition. The executive of a recognized trade union was empowered to act as an authorized bargaining agent of the employees and negotiate with the employers. 7. However, the Act has not been brought into force so far.

Trade Unions Bill, 1950:

1. Further amendments were suggested at the Labour Ministers Conference in 1949. 2. On the basis of these discussions, the Trade Union Bill was introduced in the Parliament on 23-Feb-1950. 3. The Bill: Provided for the registration and recognition of trade unions;
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Defined the law relating to registered and recognized trade unions; Recognized unfair labour practices. 4. The Bill was discussed at the 10th session of the Indian Labour Conference in March 1950. 5. This Bill too was referred to the Select Committee who submitted their report on 01-Dec-1950. 6. The Bill lapsed owing to the dissolution of the Parliament. 7. Some minor amendments were introduced in 1960 and 1964. Industrial Relations Bill, 1978: 1. The first National Commission on Labour (1969) gave certain recommendations. 2. On the basis of these recommendations, the Central Government, in consultation with the State Governments, employers and workers organizations, formed a comprehensive Industrial Relations Bill in 1978. 3. But the Bill could not be passed. Trade Unions (Amendment) Bill, 1982: 1. This Bill contained: Provisions relating to machineries for the resolution of inter and intra-union disputes; Modifications in the procedures for registration and cancellation of registration; and Reduction in the proportion of outsiders in the executive of trade unions. 2. This Bill also could not be passed. Trade Unions (Amendment) Act, 2001: 1. The broad features of the amending Act of 2001 are: Requirement of 10% or 100 workmen (whichever is less) employed in an establishment or industry with a minimum of 7 workmen as members for being eligible for registration as workers trade union in place of only 7 persons provided for earlier, and subsequent maintenance of this membership after registration; Election of members of executive and office-bearers at an interval of not more than 3 years; Prescribing minimum subscriptions for rural, unorganized, and other workers; Designation of appellate courts; Limiting the proportion of outsiders to 1/3rd of the total number of office-bearers or 5, whichever is less, generally 50% in the organized sector; and Debarring members of Council of Ministers or persons holding office of profit in the Union or State (excluding those persons who are employed in an establishment or industry with which the trade union is connected) from membership of the executive or other office-bearer of a registered trade union.

The Trade Unions Act, 1926 Introduction: The Act came into force on 01-June-1927. The Act was passed to regulate: 1. Conditions governing the registration of trade unions; 2. Obligations imposed on registered trade unions; and
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3. Rights and liabilities of registered trade unions. The Act extends to the whole of India, and since 1970 also includes Jammu and Kashmir. Definitions: Appropriate Government [Sec. 2]: 1. Trade Unions whose objectives are not confined to one state, the appropriate government means the central government. 2 In relation to other trade unions, the appropriate government means the state government. Trade Dispute [Sec. 2(g)]: Means any dispute 3 Between employers and workmen, or 4 Between workmen and workmen, or 5 Between employers and employers, which is connected with The employment or non-employment, or The terms of employment, or The conditions of labour, Of any person. Trade Union [Sec. 2(h)]: It means any combination, whether temporary or permanent, formed 6 Primarily for the purpose of regulating the relations Between workmen and employers, or Between workmen, or Between employers and employers, or 7 For imposing restrictive conditions on the conduct of any trade or business. 8 It includes any federation of two or more trade unions. Appointment of Registrars: [Sec.3] The state government appoints the Registrar, and if need be, the Additional Registrar and Deputy Registrar for the state. The state government also defines the local limits within which these persons will exercise and discharge the powers and functions so specified. Registration of trade unions: [Sec. 4-5] Application: Any seven or more members of a trade union may by subscribing their names to the rules of the trade union and by otherwise complying with the provisions of the Act with respect to registration, apply for registration. 9 The application has to be made to the registrar of trade unions. 10 The application has to be accompanied by: A copy of the rules of the trade union; The names, occupations and addresses of the members making the application; The name of the trade union and the address of its head office; The titles, names, ages, addresses and occupations of the officers of the trade union; and If the trade union has been in existence for more than one year before making such application, then a general statement of its assets and liabilities prepared in the prescribed form has also to be delivered. Registration: [Sec.8]
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11 The Registrar, on being satisfied as to the compliance of all the requirements for registration, shall register the trade union. 12 The Registrar does this by entering the details relating to the trade union in his register. Certificate of Registration: 1 This is the conclusive evidence that the trade union is duly registered under the Act. 2 Now the trade union acquires the characteristics of a Body Corporate. Separate legal entity, perpetual existence and a common seal, power to acquire and hold both movable and immovable properties, power to contract, and it can, by the name under which it is registered, sue and be sued Rules of trade union: [Sec.6] Rules are to be prepared by the trade unions as a pre-condition to registration. The following points must be included: 1 The name of the trade union; 2The whole of its objects; 3The whole of the purposes for which the general funds of the trade union shall be applicable; 4 The maintenance of a list of the members of the trade union and adequate facilities for the inspection thereof by the office-bearers and the members of the trade unions; 5 The admission of ordinary members (persons actually working in the establishment or industry with which the trade union is associated) and also the admission and the number of the number of honorary or temporary 6ffice bearers to the executive of the trade union. 7 The payment of subscription by the members of trade union; Rural workers Re.1/yr. Workers in other unorganized sectors Rs.3/yr. Remaining workers Rs.12/yr. 8The conditions for receiving any benefit assured by the rules and conditions for imposition of fines on the members; 9 The manner in which the rules shall be amended, varied or cancelled; 10 The manner in which the members of the executive and other office-bearers shall be appointed and removed (keeping in mind that elections have to be held within a gap of three years); 11 The safe custody of the funds of the trade union and annual audit of the accounts, and facilities for the inspection of the account books by the office-bearers and members of the trade union; and 12 The manner in which the trade union may be dissolved.

Change of name: [Sec. 23, 25 and 26] Consent of not less than 2/3rd of the total number of members is required Notice of the change has to be sent to the registrar in writing. The notice has to be signed by the secretary and by seven members of the trade union. On being satisfied as to the compliance of the regulations regarding change of name, the Registrar will record the changes in his register.
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The change in name does not affect any rights or obligations of the trade union or render defective, legal proceedings by or against the trade union. Cancellation of registration: [Sec. 10] The Registrar could take this step in the following situations: 1 On application of the trade union; 2 If the Registrar is satisfied that the certificate has been obtained by fraud or mistake; or 3 If the Registrar is satisfied that the trade union has: Ceased to exist; Willfully contravened any provisions of the Act; Allowed any rule to continue in force, which is inconsistent with any provision of the Act; or Cancelled any rule that ought to be there. Appeal against cancellation of Registration: [Sec.11] The aggrieved party or the trade union may appeal to the court within 60 days of such a cancellation order. Appeal has to be made to: 1 The High Court, if the registered office of the trade union lies within the limits of a presidency town; 2 The Labour Court or to the Industrial Tribunal, if the registered office of the trade union lies within its limits; 3 To such a Court (as appointed by the appropriate government) that is equivalent or superior to the Court of Additional or Assistant Judge of a principal Civil Court, if the registered office is situated in any other area. The orders of such an appellate court have to be complied with. The aggrieved party can still resort to the High Court if a Government appointed Court has passed the order. Rights and privileges of a Registered Trade Union: Body Corporate [Sec.13] Separate fund for political purposes: [Sec.16] This fund would be specially constituted for the promotion of the civil and political interest of its members. Immunity from punishment for criminal conspiracy: [Sec.17] 1This immunity is granted under sec. 120B(2) of the IPC. 2 This immunity is in respect of the actions of the members of registered trade unions, taken in the pursuit of their interests on which general funds may be spent. 3 Immunity is not available in case of say a strike is accompanied by violence, assault, intimidation, threat etc. 4 Similarly, a union leader is not entitled to claim immunity from punishment for breach of discipline. Immunity from civil suits: [Sec.18] 1 Civil suit shall not be maintainable against a registered trade union in respect of: Act that is done as an indicator of, or as a result of a trade dispute arising out of employment and conditions of employment. Following arguments against the above action(s) will not be considered: Convincing employees to break their employment contracts. Interference with the trade, business, or employment or somebody else. It is a persons right to use his capital or his labour in any manner he wishes. 2 A registered trade union is not liable in any suit or other legal proceedings in any civil court in respect of any
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tortuous act done in contemplation of or furtherance of a trade dispute by an agent of the trade union, if it is proved that such person acted without the knowledge of, or contrary to the express instructions given by the executive of the trade union. Enforceability of agreements: [Sec.19] 1 Whatever the laws applicable at the time, an agreement between the members of a registered trade union shall not be void or void able merely by reason of the fact that any of the objects of the agreement is in restraint of trade. Right to inspect books of trade union: [Sec.20] 1 The accounts books, the list of members is to be kept open for inspection by an office bearer or member of the trade union. 2 The inspection time will be provided for in the rules of the trade union. Right of minors to be members: [Sec.21] 3 Unless the rules of the trade union mention otherwise, any person who has attained the age of 15 years may be a member of a registered trade union. 4 This member will enjoy all the rights of a full-fledged member. Duties and Liabilities of a Registered Trade Union: Change of registered office: [Sec.12] 1 Any change in the address of the registered office of a trade union takes place; notice of change must be given to the Registrar in writing. Object on which general funds may be spent: [Sec.15] 2 If the union funds are spent on any object other than those enumerated in Sec.15, the expenditure will be considered unlawful and ultra vires the Act and the Union can be restrained by injunction from applying its funds for any such object. 3 Some purposes for which this fund may be used: Payment of salaries, allowances and expenses of the office-bearers; Administrative expenses and audit expenses; Expenses for any legal proceeding against the trade union or any member while they were securing or protecting any right of the trade union; Compensation to members for loss arising out of trade disputes, or even on account of death, old age, sickness, accident or unemployment; Payment of contributions to any cause intended to benefit workmen in general; Provision of educational, social or religious benefits for members. Constitution of a fund for political purposes: [Sec.16] 4 This fund may be created by a registered trade union only. 5 From this fund, payments may be made for the promotion of the civic and political interests of its members. 6 This fund may be utilized for objects like: Any expenses incurred by a candidate or prospective candidate for election as a member of any legislative body constituted under the constitution of India or of any local authority;
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Holding of any meeting or the distribution of any literature or documents in support of any such candidate or prospective candidate; Maintenance of any person who is a member of any legislative body constituted under the constitution of India or of any local authority; Holding of political meeting of any kind or the distribution of political literature or political documents of any kind. 7 Expenditure for political purposes will never be permitted out of the general funds. 8 There are certain conditions for the creation of political funds: Fund to be created only from the contributions separately levied or made to that fund; No member to be compelled to contribute to this fund; A member who does not contribute to the fund must not be excluded from any benefits of the trade union; No ill treatment or unfair treatment of such a member; Contribution to the political fund not to be made a condition for admission to the trade union.

Miscellaneous Provisions:
Proportion of Office-Bearers to be connected with the Industry: [Sec.22] 1 Unorganized Sector: This sector to be specified by the appropriate government by notification in the official gazette. Not less than the total number of office-bearers of every registered trade union must be persons engaged or employed in the industry with which the trade union is connected. But the appropriate government may grant exemptions. 1 All other cases: Not more than 1/3rd of the total number of office-bearers or five (whichever is less) can be outsiders. 2 Retired and retrenched employees are considered outsiders for this purpose. 3 We already know the provision regarding Council of Ministers and other persons who hold offices of profit (not employment) in an establishment or industry with which the trade union is connected. Disqualifications of the Executive or any other office-bearers of Trade Unions: [Sec.21A] 4 Not attained the age of 18 years; 5 Convicted by a court in India of an offence involving moral turpitude and sentenced to imprisonment. Five years have not elapsed since his release.

Returns: [Sec.28]
1 A registered trade union is required to send annually: A general statement of all receipts and expenditure, of the assets and liabilities as on 31-Dec.; A statement showing all changes in office-bearers during the year; A copy of the up-to-date rules. A copy of every alteration made in the rules has to be sent to the Registrar within 15 days of making the alteration. 2 The Registrar or any of his authorized officers may examine the documents of a registered trade union at its registered office or may require their production at a place to be specified by him. Such a place should be up to ten miles from the registered office of the trade union.

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Penalties: [Sec.31-32]
1 In case of a default in sending returns required under the Act: Every office-bearer or the responsible person(s) is/are punishable with a fine of up to Rs.5/week after the first week of default; Total fine not to exceed Rs.50/. 2 In case of a person making or causing false entry in, or any omission from the general statements or rules sent to the Registrar: Punishable with a fine of up to Rs.500/. 3 In case of a person who, with the intent to deceive, gives false information in the form of a document purporting to be copy of its rules etc. to a person intending to become a member, or 4 In case of a person knowingly projecting an unregistered trade union as a registered trade union: Punishable with a fine of up to Rs.200/. Regulations: [Sec.29-30] 5 The Central and State governments are empowered to make regulations with respect to: Registration of trade unions, rules of trade unions, fees payable on registration; Transfer of registration in case of a registered trade union changing its head office from one state to another; The qualifications of the auditors and the manner in which the accounts of such trade unions are to be audited; The conditions subject to which inspection of documents kept by the Registrar are to be allowed, and the fees chargeable in respect of such inspection; Any matter which may be prescribed. 6 Regulations so made, shall be published in the Official Gazette of the appropriate government. Amalgamation of Trade Unions: [Sec.25-26] 7 Any two or more registered unions may be amalgamated together as one trade union with or without dissolution of the funds of such trade unions. 8 This process will take place only when: Votes of at least one-half of the members of each trade union entitled to vote, are recorded; and At least 60% of the recorded votes are in favour of the proposal of amalgamation. 9 Notice of amalgamation (in writing), signed by the secretary and by seven members of each and every trade union that is a party to this amalgamation, shall be sent to the Registrars of the individual trade unions. If the head-office of the amalgamated trade union is situated in a different state, such notice shall be sent to the Registrar of such state also. If the Registrar of the state in which the registered head-office of the amalgamated trade union is situated, is satisfied that all the necessary formalities are completed, he may register the amalgamated trade union and the amalgamation shall have effect from the date of such registration. 10 Effect of amalgamation: Amalgamation shall not prejudice any right of any such trade unions or any right of a creditor on any of them.

Dissolution of Trade Union:

1 When the trade union is dissolved (process to be mentioned in the rules), notice of the dissolution signed by seven members and by the secretary of the trade union shall be sent to the Registrar within 14 days of the dissolution.
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2 If the Registrar is satisfied that the dissolution has been effected according to the rules of the trade union, he shall register the fact of the dissolution. 3 The dissolution shall take effect from the date of such registration. 4 Where the dissolution of a registered trade union has been registered and the rules of the trade union do not provide for the distribution of funds of the trade union on dissolution, the Registrar shall divide the funds amongst the members in such manner as may be prescribed. Assessment of the Act: This Act can be assessed on the following points: 5 Registration of a Trade union is not compulsory and the duties, liabilities are applicable only to registered trade unions. 6 Encouragement to formation of small sized unions. 7 No time limit to the Registrar for registration. 8 Encouragement to persistence of outsiders. 9 Light punishment for violations. 10 Absence of provision for recognition. 11 No mention of unfair labour practices.

REFRENSES: 1. Parul Sharma (February 2007). "Split Legal Regime in Indias Labour Laws". 2. "India Country Overview 2008". World Bank. 2008. 3. "World Bank criticizes India's labor laws". 4. "India may boast of 25% of world's workforce by 2025: Survey". The Times Of India. 21 June 2010. 5. Aditya Gupta. "How wrong has the Indian Left been about economic reforms?". 6. "IMF calls for urgent reform in Indian labour laws".

RESULT: Thus we have studied the LABOUR LEGISLATION

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ASSIGNMENT -4 PRODUCTION MANAGEMENT (1) Total quality management Total quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. Considering the practices of TQM as discussed in six empirical studies, Cua, McKone, and Schroeder (2001) identified the nine common TQM practices as crossfunctional product design, process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement. The TQM concept was developed by a number of American management consultants, including W. Edwards Deming, Joeseph Juran, and A.V. Feigenbaum. Originally, these consultants won few converts in the United States. However, managers in Japan embraced their ideas enthusiastically and even named their premier annual prize for manufacturing excellence after Deming. The Six Sigma management strategy originated in 1986 from Motorolas drive towards reducing defects by minimizing variation in processes. The main difference between TQM and Six Sigma (a newer concept) is the approach. At its core, Total Quality Management (TQM) is a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services and the culture in which they work. The methods for implementing this approach come from people such as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran REFRENCES: 1. Ahire, S. L. 1997. Management Science- Total Quality Management interfaces: An integrative framework. Interfaces 27 (6) 91-105.

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2. Cua, K. O., K. E. McKone, and R. G. Schroeder. 2001. Relationships between implementation of TQM, JIT, and TPM and manufacturing performance. Journal of Operations Management 19 (6) 675-694. 3. 'How to Build Quality,' Economist, September 23, 1989, 91-92.' 4. Anand, G., P. T. Ward, and M. V. Tatikonda. 2010. Role of explicit and tacit knowledge in six sigma projects: An empirical examination of differential project success. Journal of Operations Management 28 (4) 303-315. 5. "Six Sigma vs. Total Quality Management". Retrieved April 19, 2010.

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(2) Just in time (JIT)

Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban (Kanban?) between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT. This saves warehouse space and costs. However, the complete mechanism for making this work is often misunderstood. For instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can "...end up with the opposite of the desired result."[1] In recent years manufacturers have continued to try to hone forecasting methods such as applying a trailing 13 week average as a better predictor for JIT planning; however, some research demonstrates that basing JIT on the presumption of stability is inherently flawed.

Philosophy The philosophy of JIT is simple: inventory is waste. JIT inventory systems expose hidden cost of keeping inventory, and are therefore not a simple solution for a company to adopt. The company must follow an array of new methods to manage the consequences of the change. The ideas in this way of working come from many different disciplines including statistics, industrial engineering, production management, and behavioral science. The JIT inventory philosophy defines how inventory is viewed and how it relates to management. Inventory is seen as incurring costs, or waste, instead of adding and storing value, contrary to traditional accounting. This does not mean to say JIT is implemented without an awareness that removing inventory exposes pre-existing manufacturing issues. This way of working encourages businesses to eliminate inventory that does not compensate for manufacturing process issues, and to constantly improve those processes to require less inventory. Secondly, allowing any stock habituates management to stock keeping. Management may be tempted to keep stock to hide production problems. These problems include backups at work
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centers, machine reliability, process variability, lack of flexibility of employees and equipment, and inadequate capacity. In short, the Just-in-Time inventory system focus is having the right material, at the right time, at the right place, and in the exact amount-Ryan Grabosky, without the safety net of inventory. The JIT system has broad implications for implementers. Transaction cost approach JIT reduces inventory in a firm. However, a firm may simply be outsourcing their input inventory to suppliers, even if those suppliers don't use Just-in-Time (Naj 1993). Newman (1994) investigated this effect and found that suppliers in Japan charged JIT customers, on average, a 5% price premium. Environmental concerns During the birth of JIT, multiple daily deliveries were often made by bicycle. Increased scale has required a move to vans and lorries (trucks). Cusumano (1994) highlighted the potential and actual problems this causes with regard to gridlock and burning of fossil fuels. This violates three JIT waste guidelines: 1. Timewasted in traffic jams 2. Inventoryspecifically pipeline (in transport) inventory 3. Scrapfuel burned while not physically moving Price volatility JIT implicitly assumes a level of input price stability that obviates the need to buy parts in advance of price rises. Where input prices are expected to rise, storing inventory may be desirable. Quality volatility JIT implicitly assumes that input parts quality remains constant over time. If not, firms may hoard high-quality inputs. As with price volatility, a solution is to work with selected suppliers to help them improve their processes to reduce variation and costs. Longer term price agreements can then be negotiated and agreed-on quality standards made the responsibility of the supplier. Fixing up of standards for volatility of quality according to the quality circle Demand stability Karmarker (1989) highlights the importance of relatively stable demand, which helps ensure efficient capital utilization rates. Karmarker argues that without significantly stable demand, JIT becomes untenable in high capital cost production.

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Problems (Within a JIT system) Just-in-time operation leaves suppliers and downstream consumers open to supply shocks and large supply or demand changes. For internal reasons, Ohno saw this as a feature rather than a bug. He used an analogy of lowering the water level in a river to expose the rocks to explain how removing inventory showed where production flow was interrupted. Once barriers were exposed, they could be removed. Since one of the main barriers was rework, lowering inventory forced each shop to improve its own quality or cause a holdup downstream. A key tool to manage this weakness is production levelling to remove these variations. Just-intime is a means to improving performance of the system, not an end. Very low stock levels means shipments of the same part can come in several times per day. This means Toyota is especially susceptible to flow interruption. For that reason, Toyota uses two suppliers for most assemblies. As noted in Liker (2003), there was an exception to this rule that put the entire company at risk because of the 1997 Aisin fire. However, since Toyota also makes a point of maintaining high quality relations with its entire supplier network, several other suppliers immediately took up production of the Aisin-built parts by using existing capability and documentation. Thus, a strong, long-term relationship with a few suppliers is better than short-term, price-based relationships with many competing suppliers. Toyota uses this long-term relationship to send Toyota staff to help suppliers improve their processes. These interventions have been going on for twenty years and have created a more reliable supply chain, improved margins for Toyota and suppliers, and lowered prices for customers. Toyota encourages their suppliers to use JIT with their own suppliers

REFRENCES: 1. A study of the Toyota Production System, Shigeo Shingo, Productivity Press, 1989, p 187 2. Gilliland, Michael. "Is Forecasting a Waste of Time?" Supply Chain Management Review, July/August 2002. 3. Ruffa, Stephen A., (2008). Going Lean: How the Best Companies Apply Lean Manufacturing Principles to Shatter Uncertainty, Drive Innovation, and Maximize Profits, AMACOM (American Management Association) 4. Alan Pilkington, Manufacturing Strategy Regained: Evidence for the Demise of Best-Practice, California Management Review, (1998) Vol. 41, No.1, pp.3142

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(3) Quality Circle

A quality circle is a volunteer group composed of workers (or even students), usually under the leadership of their supervisor (but they can elect a team leader), who are trained to identify, analyze and solve workrelated problems and present their solutions to management in order to improve the performance of the organization, and motivate and enrich the work of employees. When matured, true quality circles become self-managing, having gained the confidence of management. Quality circles are an alternative to the dehumanizing concept of the division of labor, where workers or individuals are treated like robots. They bring back the concept of craftsmanship, which when operated on an individual basis is uneconomic but when used in group form can be devastatingly powerful. Quality circles enable the enrichment of the lives of the workers or students and creates harmony and high performance. Typical topics are improving occupational safety and health, improving product design, and improvement in the workplace and manufacturing processes. The term quality circles derives from the concept of PDCA (Plan, Do, Check, Act) circles developed by Dr. W. Edwards Deming. Quality circles are not normally paid a share of the cost benefit of any improvements but usually a proportion of the savings made is spent on improvements to the work environment. They are formal groups. They meet at least once a week on company time and are trained by competent persons (usually designated as facilitators) who may be personnel and industrial relations specialists trained in human factors and the basic skills of problem identification, information gathering and analysis, basic statistics, and solution generation. Quality circles are generally free to select any topic they wish (other than those related to salary and terms and conditions of work, as there are other channels through which these issues are usually considered). Quality circles have the advantage of continuity; the circle remains intact from project to project. (For a comparison to Quality Improvement Teams, see Juran's Quality by Design History Quality circles were first established in Japan in 1962; Kaoru Ishikawa has been credited with their creation. The movement in Japan was coordinated by the Japanese Union of Scientists and Engineers (JUSE). The first circles were established at the Nippon Wireless and Telegraph Company but then spread to more than 35 other companies in the first year. By 1978 it was claimed that there were more than one million quality circles involving some 10 million Japanese workers. They are now in most East Asian countries; it was recently claimed that there were more than 20 million quality circles in China.
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Quality circles have been implemented even in educational sectors in India, and QCFI (Quality Circle Forum of India) is promoting such activities. However this was not successful in the United States, as it (was not properly understood and) turned out to be a fault-finding exercise although some circles do still exist. ref Don Dewar who together with Wayne Ryker and Jeff Beardsley first established them in 1972 at the Lockheed Space Missile Factory in California.

In a structures-fabrication and assembly plant in the south-eastern US, some quality circles (QCs)were established by the management (management-initiated); whereas others were formed based on requests of employees (self-initated). Based on 47 QCs over a three-year period, research showed that managementinitiated QCs have fewer members, solve more work-related QC problems, and solve their problems much faster than self-initiated QCS. However, the effect of QC initiaion (management- vs. self-initiated) on problem-solving performance disappears after controling QC size. A high attendence of QC meetings is related to lower number of projects completed and slow speed of performance in management-initiated QCS QCs with high upper-management support (high attendance of QC meetings) solve significantly more problems than those without. Active QCs had lower rate of problem-solving failure, higher attendance rate at QC meetings, and higher net savings of QC projects than inactive QCs. QC membership tends to decrease over the three year period. Larger QCs have a better chance of survival than smaller QCs. A significant drop in QC membership is a precursor of QC failure. The sudden decline in QC membership represents the final and irreversible stage of the QC's demise . Attriutions of quality circles' problem-solving failure vary across participants of QCs: Management, supporting staff, and QC members There are different quality circle tools, namely:

The Ishikawa or fishbone diagram - which shows hierarchies of causes contributing to a problem The Pareto Chart - which analyses different causes by frequency to illustrate the vital cause, Process Mapping, Data gathering tools such as Check Sheets and graphical tools such as histograms, frequency diagrams, spot charts and pie chart

Student quality circles Student quality circles work on the original philosophy of Total Quality Management. The idea of SQCs was presented by City Montessori School (CMS) Lucknow India at a conference in Hong Kong in October 1994. It was developed and mentored by duo engineers of Indian Railways PC Bihari and Swami Das in association with Principal Dr. Kamran of CMS Lucknow India. They were inspired and facilitated by Jagdish Gandhi, the

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founder of CMS after his visit to Japan where he learned about Kaizen. The world's first SQC was made in CMS Lucknow with then 13-year- old student, Ms. Sucheta Bihari as its leader. CMS conducts international conventions on student quality circles which it has repeated every 2 years to the present day. After seeing its utility, the visionary educationalists from many countries started these circles. The World Council for Total Quality & Excellence in Education was established in 1999 with its Corporate Office in Lucknow and head office at Singapore. It monitors and facilitates student quality circle activities to its member countries which are more than a dozen. SQCs are considered to be a co-curricular activity. The have been established in India, Bangladesh, Pakistan, Nepal, Sri Lanka, Turkey, Mauritius, Iran, UK (Kingston University), and USA. In Nepal, Prof. Dinesh P. Chapagain has been promoting this innovative approach through QUEST-Nepal since 1999. He has written a book entitled "A Guide Book on Students' Quality Circle: An Approach to prepare Total Quality People", which is considered a standard guide to promote SQCs in academia for students' personality development

REFRENCES: 1. Montana, Patrick J.; Bruce H. Charnov (2008). Management (4th ed.). Barron's. ISBN 9780764139314. 2. Hutchins, David C. (1985). The Quality Circles Handbook. New York: Pitman

Press. ISBN 9780893972141. 3. Hutchins, David C. (September 2008). Hoshin Kanri : the strategic approach to continuous improvement. Burlington, Vermont: Gower. ISBN 9780566087400. 4. Juran, Joseph M. (1992). Juran on quality by design : the new steps for planning quality into goods and services. New York: Free Press. ISBN 9780029166833. 5. Hutchins, David C. (1999). Just In Time. Farnham, Surrey: Gower Publishing.

p. 148. ISBN 9780566077982.

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(4)ISO 9000
ISO 9000 is a family of standards related to quality management systems and designed to help organizations ensure that they meet the needs of customers and other stakeholders The standards are published by ISO, the International Organization for Standardization, and available through National standards bodies. ISO 9000 deals with the fundamentals of quality management systems, including the eight management principles on which the family of standards is based. ISO 9001 deals with the requirements that organizations wishing to meet the standard have to fulfill. Third party certification bodies provide independent confirmation that organizations meet the requirements of ISO 9001. Over a million organizations worldwide are independently certified, making ISO 9001 one of the most widely used management tools in the world today. Despite widespread use, however, the ISO certification process has been criticized as being wasteful and not being useful for all organizations. Reasons for use The ISO family of standards is the only international standard that addresses systemic change. The global adoption of ISO 9001 may be attributable to a number of factors. A number of major purchasers require their suppliers to hold ISO 9001 certification. In addition to several stakeholders benefits, a number of studies have identified significant financial benefits for organizations certified to ISO 9001, with a 2011 survey from the British Assessment Bureau showing 44% of their certified clients had won new business. Corbett et al showed that certified organizations achieved superiorreturn on assets compared to otherwise similar organizations without certification. Heras et al found similarly superior performance and demonstrated that this was statistically significant and not a function of organization size. Naveha and Marcus claimed that implementing ISO 9001 led to superior operational performance in the US motor carrier industry. Sharma identified similar improvements in operating performance and linked this to superior financial performance. Chow-Chua et al showed better overall financial performance was achieved for companies in Denmark. Rajan and Tamimi (2003) showed that ISO 9001 certification resulted in superior stock market performance and suggested that shareholders were richly rewarded for the investment in an ISO 9001 system. While the connection between superior financial performance and ISO 9001 may be seen from the examples cited, there remains no proof of direct causation, though longitudinal studies, such as those of Corbett et al (2005) may suggest it. Other writers, such as Heras et al (2002), have suggested that while there is some evidence of this, the improvement is partly driven by the fact that there is a tendency for better performing companies to seek ISO 9001 certification.
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The mechanism for improving results has also been the subject of much research. Lo et al (2007) identified operational improvements (cycle time reduction, inventory reductions, etc.) as following from certification. Internal process improvements in organizations lead to externally observable improvements. The benefit of increased international trade and domestic market share, in addition to the internal benefits such as customer satisfaction, interdepartmental communications, work processes, and customer/supplier partnerships derived, far exceeds any and all initial investment Contents of ISO 9001 ISO 9001:2008 Quality management systems Requirements is a document of approximately 30 pages which is available from the national standards organization in each country. It is supplemented by two other standards, ISO 9000:2005 Quality management systems Fundamentals and vocabulary and ISO 9004:2009 Managing for the sustained success of an organization A quality management approach, which do not contain specific requirements and are not used directly in certification. Outline contents for ISO 9001 are as follows:

Page iv: Foreword Pages v to vii: Section 0 Intro Pages 1 to 14: Requirements Section 1: Scope Section 2: Normative Reference Section 3: Terms and definitions (specific to ISO 9001, not specified in ISO 9000) Section 4: Quality Management System Section 5: Management Responsibility Section 6: Resource Management Section 7: Product Realization Section 8: Measurement, analysis and improvement

In effect, users need to address all sections 1 to 8, but only 4 to 8 need implementing within a QMS.

Pages 15 to 22: Tables of Correspondence between ISO 9001 and other standards Page 23: Bibliography

The standard specifies six compulsory documents:

Control of Documents (4.2.3)

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Control of Records (4.2.4) Internal Audits (8.2.2) Control of Nonconforming Product / Service (8.3) Corrective Action (8.5.2) Preventive Action (8.5.3)

In addition to these, ISO 9001:2008 requires a quality policy and Quality Manual (which may or may not include the above documents). Summary of ISO 9001:2008 in informal language

The quality policy is a formal statement from management, closely linked to the business and marketing plan and to customer needs.

The quality policy is understood and followed at all levels and by all employees. Each employee works towards measurable objectives.

The business makes decisions about the quality system based on recorded data. The quality system is regularly audited and evaluated for conformance and effectiveness. Records show how and where raw materials and products were processed to allow products and problems to be traced to the source.

The business determines customer requirements. The business has created systems for communicating with customers about product information, inquiries, contracts, orders, feedback, and complaints.

When developing new products, the business plans the stages of development, with appropriate testing at each stage. It tests and documents whether the product meets design requirements, regulatory requirements, and user needs.

The business regularly reviews performance through internal audits and meetings. The business determines whether the quality system is working and what improvements can be made. It has a documented procedure for internal audits.

The business deals with past problems and potential problems. It keeps records of these activities and the resulting decisions, and monitors their effectiveness.

The business has documented procedures for dealing with actual and potential nonconformances (problems involving suppliers, customers, or internal problems).

The business: 1. makes sure no one uses a bad product,

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2. 3. 4. Certification

determines what to do with a bad product, deals with the root cause of problems, and keeps records to use as a tool to improve the system.

ISO does not itself certify organizations. Numerous certification bodies exist, which audit organizations and, upon success, issue ISO 9001 compliance certificates. Although commonly referred to as 'ISO 9000' certification, the actual standard to which an organization's quality management system can be certified is ISO 9001:2008. Many countries have formed accreditation bodies to authorize ("accredit") the certification bodies. Both the accreditation bodies and the certification bodies charge fees for their services. The various accreditation bodies have mutual agreements with each other to ensure that certificates issued by one of the Accredited Certification Bodies (CB) are accepted worldwide. Certification bodies themselves operate under another quality standard, ISO/IEC 17021 while accreditation bodies operate under ISO/IEC 17011. An organization applying for ISO 9000 certification is audited based on an extensive sample of its sites, functions, products, services and processes. A list of problems ("action requests" or "non-compliance") is first made known to management. If there are no major problems on this list, or after it receives a satisfactory improvement plan from the management in the form of corrective action reports showing how any problems will be resolved, the certification body will issue an ISO 9001 certificate. The certificate is limited by a certain scope (e.g. production of golf balls) and names the locations covered. An ISO certificate is not a once-and-for-all award, but must be renewed at regular intervals recommended by the certification body, usually around three years. There are no grades of competence within ISO 9001: either a company is certified (meaning that it is committed to the method and model of quality management described in the standard) or it is not. In this respect, ISO certification contrasts with measurement-based quality systems such as the Capability Maturity Model. REFRENCES: 1. Poksinska, Bozena; Dahlgaard, Jens Jrn; Antoni, Marc (2002). "The state of ISO 9000 certification: A study of Swedish organizations". The TQM Magazine 14 (5): 297.doi:10.1108/09544780210439734. 2. Tsim, Y.C.; Yeung, V.W.S.; Leung, Edgar T.C. (2002). "An adaptation to ISO 9001:2000 for certified organisations".Managerial Auditing Journal 17 (5): 245.doi:10.1108/02686900210429669. 3. Beattie, Ken R. (1999). "Implementing ISO 9000: A study of its benefits among Australian organizations". Total Quality Management 10: 95. doi:10.1080/0954412998090. 4. http://www.iso.org/iso/iso_9000_selection_and_use.htm
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(5) ISO 14000

ISO 14000 is a family of standards related to environmental management that exists to help organizations (a) minimize how their operations (processes etc.) negatively affect the environment (i.e. cause adverse changes to air, water, or land); (b) comply with applicable laws, regulations, and other environmentally oriented requirements, and (c) continually improve in the above. ISO 14000 is similar to ISO 9000 quality management in that both pertain to the process of how a product is produced, rather than to the product itself. As with ISO 9000, certification is performed by third-party organizations rather than being awarded by ISO directly. The ISO 19011 audit standard applies when auditing for both 9000 and 14000 compliance at once. The requirements of ISO 14000 are an integral part of the European Unions environmental management scheme EMAS. EMASs structure and material requirements are more demanding, foremost concerning performance improvement, legal compliance and reporting duties A brief history of environmental management systems The concept of an environmental management system evolved in the early nineties and its origin can be traced back to 1972, when the United Nations organised a Conference on the Human Environment in Stockholm and the United Nations Environment Programme (UNEP) was launched (Corbett & Kirsch, 2001). These early initiatives led to the establishment of the World Commission on Environment and Development (WCED) and the adoption of the Montreal Protocol and Basel Convention. In 1992, the first Earth Summit was held in Rio-de-Janeiro (Jiang & Bansal, 2001), which served to generate a global commitment to the environment (RMIT University). In the same year, BSI Grouppublished the world's first environmental management systems standard, BS 7750. This supplied the template for the development of the ISO 14000 series in 1996, by the International Organization for Standardization, which has representation from committees all over the world (ISO) (Clements 1996, Brorson & Larsson, 1999). As of 2010, ISO 14001 is now used by at least 223 149 organizations in 159 countries and economies. Development of the ISO 14000 series The ISO 14000 family includes most notably the ISO 14001 standard, which represents the core set of standards used by organizations for designing and implementing an effective environmental management system. Other standards included in this series are ISO 14004, which gives additional guidelines for a good environmental management system, and more specialized standards dealing with specific aspects of

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environmental management. The major objective of the ISO 14000 series of norms is "to promote more effective and efficient environmental management in organizations and to provide useful and usable tools ones that are cost effective, system-based, flexible and reflect the best organizations and the best organizational practices available for gathering, interpreting and communicating environmentally relevant information". Unlike previous environmental regulations, which began with command and control approaches, later replaced with ones based on market mechanisms, ISO 14000 was based on a voluntary approach to environmental regulation (Szymanski & Tiwari 2004). The series includes the ISO 14001 standard, which provides guidelines for the establishment or improvement of an EMS. The standard shares many common traits with its predecessor ISO 9000, the international standard of quality management (Jackson 1997), which served as a model for its internal structure (National Academy Press 1999) and both can be implemented side by side. As with ISO 9000, ISO 14000 acts both as an internal management tool and as a way of demonstrating a companys environmental commitment to its customers and clients (Boiral 2007). Prior to the development of the ISO 14000 series, organizations voluntarily constructed their own EMS systems, but this made comparisons of environmental effects between companies difficult and therefore the universal ISO 14000 series was developed. An EMS is defined by ISO as: part of the overall management system, that includes organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving and maintaining the environmental policy (ISO 1996 cited in Federal Facilities Council Report 1999).

REFRENCES: 1. BSI Group Fast Facts 2. ISO Press Release 25 October 2010 3. ISO 14000 essentials 4. (Source: ISO 14001: 2004, Clause 1: Scope c) 5. Reference: ISO/IEC 17000:2004(E/F/R)

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(6) Kanban
Kanban literally meaning "signboard" or "billboard", is a concept related to lean and just-in-time (JIT) production. According to its creator, Taiichi Ohno, Kanban is one means through which JIT is achieved. Kanban is not an inventory control system. It is a scheduling system that helps determine what to produce, when to produce it, and how much to produce. The need to maintain a high rate of improvement led Toyota to devise the Kanban system. Kanban became an effective tool to support the running of the production system as a whole. In addition, it proved to be an excellent way for promoting improvements because reducing the number of Kanban in circulation highlighted problem areas. Origins In the late 1940s, Toyota began studying supermarkets with a view to applying store and shelf-stocking techniques to the factory floor, based on the idea that in a supermarket, customers get what they need at the needed time, and in the needed amount. Furthermore, the supermarket only stocks what it believes it will sell, and customers only take what they need because future supply is assured. This led Toyota to view a process as being a customer of preceding processes, and the preceding processes as a kind of store. The customer process goes to this store to get needed components, and the store restocks. Originally, as in supermarkets, signboards were used to guide "shopper" processes to specific restocking locations. Kanban uses the rate of demand to control the rate of production, passing demand from the end customer up through the chain of customer-store processes. In 1953, Toyota applied this logic in their main plant machine shop Operation An important determinant of the success of production scheduling based on "pushing" the demand is the quality of the demand forecast that can receive such "push." Kanban, by contrast, is part of an approach of receiving the "pull" from the demand. Therefore, the supply or production is determined according to the actual demand of the customers. In contexts where supply time is lengthy and demand is difficult to forecast, the best one can do is to respond quickly to observed demand. This is exactly what a Kanban system can help with: It is used as a demand signal that immediately propagates through the supply chain. This can be used to ensure that intermediate stocks held in the supply chain are better managed, usually smaller. Where the supply response cannot be quick enough to meet
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actual demand fluctuations, causing significant lost sales, then stock building may be deemed as appropriate which can be achieved by issuing more Kanban. Taiichi Ohno states that to be effective Kanban must follow strict rules of use (Toyota, for example, has six simple rules, below) and that close monitoring of these rules is a never-ending task to ensure that the Kanban does what is required. Kanban cards Kanban cards are a key component of Kanban that uses cards to signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier to the production facility. The Kanban card is, in effect, a message that signals depletion of product, parts or inventory that when received will trigger the replenishment of that product, part or inventory. Consumption drives demand for more. Demand for more is signaled by Kanban card. Kanban cards therefore help to create a demand-driven system. It is widely by proponents of Lean production and manufacturing that demand-driven systems lead to faster turnarounds in production and lower inventory levels, helping companies implementing such systems to be more competitive. Kanban cards, in keeping with the principles of Kanban, should simply convey the need for more materials. A red card lying in an empty parts cart would easily convey to whomever it would concern that more parts are needed. In the last few years, electronic Kanban systems, which send Kanban signals electronically, have become more widespread. While this is leading to a reduction in the use of Kanban cards in aggregate, it is common in modern Lean production facilities to still find widespread usage of Kanban cards. In Oracle ERP, Kanban is used for signalling demand to vendors through email notifications. When stock of a particular component is depleted by quantity assigned on Kanban card, A "Kanban trigger" is created which may be manual or automatic, a purchase order is released with predefined quantity for the vendor defined on the card, and the vendor is expected to dispatch material within lead This system is also available in enterprise resource planning software such as Infor ERP LN, SAP ERP or Microsoft Dynamics REFRENCES: 1. Waldner, Jean-Baptiste (September, 1992). Principles of Computer-Integrated Manufacturing [1]. London: John Wiley & Sons. pp. 128-p132. ISBN 0-471-93450-X. 2. "Kanban". Random House Dictionary. Dictionary.com. 2011. Retrieved April 12, 2011. 3. Ohno, Taiichi (June 1988). Toyota Production System - beyond large-scale production. Productivity Press. pp. 29. ISBN 0-915299-14-3.

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(7)Benchmarking Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/or best practices from other industries. Dimensions typically measured are quality, time and cost. In the process of benchmarking, management identifies the best firms in their industry, or in another industry where similar processes exist, and compare the results and processes of those studied (the "targets") to one's own results and processes. In this way, they learn how well the targets perform and, more importantly, the business processes that explain why these firms are successful. The term benchmarking was first used by cobblers to measure people's feet for shoes. They would place someone's foot on a "bench" and mark it out to make the pattern for the shoes. Benchmarking is used to measure performance using a specific indicator (cost per unit of measure, productivity per unit of measure, cycle time of x per unit of measure or defects per unit of measure) resulting in a metric of performance that is then compared to others. Also referred to as "best practice benchmarking" or "process benchmarking", this process is used in management and particularly strategic management, in which organizations evaluate various aspects of their processes in relation to best practice companies' processes, usually within a peer group defined for the purposes of comparison. This then allows organizations to develop plans on how to make improvements or adapt specific best practices, usually with the aim of increasing some aspect of performance. Benchmarking may be a one-off event, but is often treated as a continuous process in which organizations continually seek to improve their practices Benefits and use In 2008, a comprehensive survey on benchmarking was commissioned by The Global Benchmarking Network, a network of benchmarking centers representing 22 countries. Over 450 organizations responded from over 40 countries. The results showed that: 1. Mission and Vision Statements and Customer (Client) Surveys are the most used (by 77% of organizations of 20 improvement tools, followed by SWOT analysis(72%), and Informal Benchmarking (68%). Performance Benchmarking was used by 49% and Best Practice Benchmarking by 39%. 2. The tools that are likely to increase in popularity the most over the next three years are Performance Benchmarking, Informal Benchmarking, SWOT, and Best Practice Benchmarking. Over 60% of

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organizations that are not currently using these tools indicated they are likely to use them in the next three years. Collaborative benchmarking Benchmarking, originally described as a formal process by Rank Xerox, is usually carried out by individual companies. Sometimes it may be carried out collaboratively by groups of companies (e.g.subsidiaries of a multinational in different countries). One example is that of the Dutch municipally-owned water supply companies, which have carried out a voluntary collaborative benchmarking process since 1997 through their industry association. Another example is the UK construction industry which has carried out benchmarking since the late 1990s again through its industry association and with financial support from the UK Government. Procedure: There is no single benchmarking process that has been universally adopted. The wide appeal and acceptance of benchmarking has led to the emergence of various benchmarking methodologies. One seminal book on benchmarking is Boxwell's Benchmarking for Competitive Advantage (1994). The first book on benchmarking, written and published by Kaiser Associates, is a practical guide and offers a 7-step approach. Robert Camp (who wrote one of the earliest books on benchmarking in 1989) developed a 12-stage approach to benchmarking. The 12 stage methodology consists of: 1. Select subject 2. Define the process 3. Identify potential partners 4. Identify data sources 5. Collect data and select partners 6. Determine the gap 7. Establish process differences 8. Target future performance 9. Communicate 10. Adjust goal

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Types:

Process benchmarking - the initiating firm focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration.

Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity.

Benchmarking from an investor perspective- extending the benchmarking universe to also compare to peer companies that can be considered alternative investment opportunities from the perspective of an investor.

Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with those of target firms.

Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses.

Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries.

Functional benchmarking - a company will focus its benchmarking on a single function to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison.

Best-in-class benchmarking - involves studying the leading competitor or the company that best carries out a specific function.

Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures performed.

Energy benchmarking - process of collecting, analysing and relating energy performance data of comparable activities with the purpose of evaluating and comparing performance between or within entities[6]. Entities can include processes, buildings or companies. Benchmarking may be internal between entities within a single organization, or - subject to confidentiality restrictions - external between competing entities.

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References: 1. http://www.globalbenchmarking.org/newsitems/findings_global_survey_on_business_imporvement_and_benchmarking.pdf. 2. Benchmarking for Competitive Advantage. Robert J Boxwell Jr, New York: McGraw-Hill. 1994. pp. 225. ISBN 0-07-006899-2. 3. Beating the competition: a practical guide to Benchmarking. Washington, DC: Kaiser Associates. 1988. pp. 176. ISBN 978-1-56365-018-5. 4. Camp, R. (1989). The search for industry best practices that lead 2 superior performance. Productivity Press. RESULT:- Thus we have studied the following topic (1)Total Quality Management (2) JIT (3) Quality Service (4)Quality-ISO 9000;ISO 14000 (5)KANBAN (6)Benchmarking

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ASSIGNMENT -5 MANAGEMENT

(1) Principal of Management

Management is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning, organizing, staffing,leading directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human

resources, financial resources, technological resources and natural resources. Since organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to 'manage' oneself, a pre-requisite to attempting to manage others History: The verb manage comes from the Italian maneggiare (to handle, train, control horses), which in turn derives from the Latin manus (hand). The French word mesnagement (later mnagement) influenced the

development in meaning of the English word management in the 15th and 16th centuries. Some definitions of management are:

Organization and coordination of the activities of an enterprise in accordance with certain policies and in achievement of clearly defined objectives. Management is often included as a factor of production along with machines, materials and money. According to the management guru Peter Drucker (1909 2005), the basic task of a management is twofold: marketing and innovation.

Directors and managers have the power and responsibility to make decisions to manage an enterprise when given the authority by the shareholders. As a discipline, management comprises the interlocking functions of formulating corporate policy and organizing, planning, controlling, and directing the firm's resources to achieve the policy's objectives. The size of management can range from one person in a small firm to hundreds or thousands of managers in multinational companies. In large firms the board of directors formulates the policy which is implemented by the chief executive officer.

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Theoretical scope: At first, one views management functionally, such as measuring quantity, adjusting plans, meeting goals,foresighting/forecasting. This applies even in situations when planning does not take place. From this perspective, Henri Fayol (18411925) considers management to consist of six functions: forecasting, planning, organizing, commanding, coordinating and controlling. He was one of the most influential contributors to modern concepts of management. Another way of thinking, Mary Parker Follett (18681933), defined management as "the art of getting things done through people". She described management as philosophy. Some people, however, find this definition useful but far too narrow. The phrase "management is what managers do" occurs widely, suggesting the difficulty of defining management, the shifting nature of definitions and the connection of managerial practices with the existence of a managerial cadre or class. One habit of thought regards management as equivalent to "business administration" and thus excludes management in places outside commerce, as for example in charities and in the public sector. More realistically, however, every organization must manage its work, people, processes, technology, etc. to maximize effectiveness. Nonetheless, many people refer to university departments which teach management as "business schools." Some institutions (such as the Harvard Business School) use that name while others (such as the Yale School of Management) employ the more inclusive term "management." English speakers may also use the term "management" or "the management" as a collective word describing the managers of an organization, for example of a corporation. Historically this use of the term was often contrasted with the term "Labor" referring to those being managed Levels of management: Most organizations have three management levels: low-level, middle-level, and top-level managers. These managers are classified in a hierarchy of authority, and perform different tasks. In many organizations, the number of managers in every level resembles a pyramid. Each level is explained below in specifications of their different responsibilities and likely job titles Top-level managers: Consists of board of directors, president, vice-president, CEOs, etc. They are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company policies, and make decisions on the direction of the business. In addition, top-level managers play a significant role in the mobilization of outside resources and are accountable to the shareholders and general public.
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According to Lawrence S. Kleiman, the following skills are needed at the top managerial level.

Broadened understanding of how: competition, world economies, politics, and social trends effect organizational effectiveness .

Middle-level managers: Consist of general managers, branch managers and department managers. They are accountable to the top management for their department's function. They devote more time to organizational and directional functions. Their roles can be emphasized as executing organizational plans in conformance with the company's policies and the objectives of the top management, they define and discuss information and policies from top management to lower management, and most importantly they inspire and provide guidance to lower level managers towards better performance. Some of their functions are as follows:

Designing and implementing effective group and intergroup work and information systems. Defining and monitoring group-level performance indicators. Diagnosing and resolving problems within and among work groups. Designing and implementing reward systems supporting cooperative behavior.

low-level managers: Consist of supervisors, section leads, foremen, etc. They focus on controlling and directing. They usually have the responsibility of assigning employees tasks, guiding and supervising employees on day-to-day activities, ensuring quality and quantity production, making recommendations, suggestions, and upchanneling employee problems, etc. First-level managers are role models for employees that provide:

Basic supervision. Motivation. Career planning. Performance feedback. supervising the staffs. REFRENCES: 1. Oxford English Dictionary of Management 2. Administration industrielle et gnrale - prvoyance organization - commandment, coordination contrle, Paris : Dunod, 1966 Vocational Business: Training, Developing and Motivating People by Richard Barrett - Business & Economics - 2003. - Page 51.
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(2) Organization
An organization (or organisation see spelling differences) is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job. There are variety of legal types of organizations, including: corporations, governments, non-governmental organizations, organizations, armed, not-for-profit corporations, partnerships, cooperatives, and universities. A hybrid organization is a body that operates in both thepublic sector and the private sector, simultaneously fulfilling public duties and developing commercial market activities. As a result the hybrid organization becomes a mixture of a government and a corporate organization. In the social sciences, organizations are the object of analysis for a number of disciplines, such as sociology, economics, political science, psychology,management, and organizational communication. The broader analysis of organizations is commonly referred to as organizational structure, organizational studies, organizational behavior, or organization analysis. A number of different perspectives exist, some of which are compatible:

From a process-related perspective, an organization is viewed as an entity is being (re-)organized, and the focus is on the organization as a set of tasks or actions.

From a functional perspective, the focus is on how entities like businesses or state authorities are used.

From an institutional perspective, an organization is viewed as a purposeful structure within a social context

Organizational structures: Main article: Organizational structure: The study of organizations includes a focus on optimizing organizational structure. According to management science, most human organizations fall roughly into four types:

Pyramids or hierarchies Committees or juries Matrix organizations Ecologies

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Organization theories: Among the theories that are or have been most influential are:

Enterprise architecture, is the conceptual model that defines the coalescence of organizational structure and organizational behavior.

Actor-Network Theory Agency theory (sometimes called principal - agent theory) Contingency theory Complexity theory and organizations Critical management studies Economic sociology Garbage Can Model Human Relations Studies (going back to the Hawthorne studies, Maslow and Herzberg) Labour Process Theory Marxist organization analysis Network analysis New institutionalism and new institutional economics Organizational culture Organization ecology (or demography of organizations) Scientific management (mainly following Frederick W. Taylor) Social entrepreneurship Transaction cost economics Weberian organization theory (refer to Max Weber's chapter on Bureaucracy in his book 'Economy and Society') REFRENCES:

Richard Scott. Organizations. ISBN 0-13-266354-6 Richard Scott. Organizations and Institutions Charles Handy.Understanding Organizations Laurence J. Peter and Raymond Hull. The Peter Principle Pan Books 1970 ISBN 0-330-02519-8 Ronald Coase (1937). "The Nature of the Firm" Economica, 4(16), pp. 386405. Julie Morgenstern (1998). Organizing from the Inside Out. Owl Books ISBN 0-8050-5649-1
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(3)DIRECTING:

While managing an enterprise, managers have to get things done through people. In orderto be able to do so, they have to undertake many activities, like guide the people who work under them, inspire and lead them to achieve common objectives. An office manager, for instance, has to supervise the activities of his subordinates, i.e., typists, office assistants,dispatchers, accounts clerks, etc. He has to issue instructions to them and describe and illustrate the work and related activities. He has to tell them what to do, and how to do it.

The office manager can plan, organise and appoint people, but he can not get things done, unless he assigns specific duties to his subordinates and motivates them to perform well. All these activities of a manager constitute the directing function. Thus, directing is concerned with instructing, guiding, supervising and inspiring people in the organisation to achieve its objectives. It is the process of telling people what to do and seeing that they do it in the best possible manner. The directing function thus, involves:

1. telling people what is to be done and explaining to them how to do it; 2. issuing instructions and orders to subordinates to carryout their assignments as scheduled; 3. supervising their activities; 4. inspiring them to meet the mangers expectation and contribute towards the achievement of organisational objectives; and .

IMPORTANCE OF DIRECTING

Plans remain mere plans unless they are put into action. In the absence of direction, subordinates will have no idea as to what to do. They will probably not be inspired to complete the job satisfactorily. Implementation of plans is, thus, largely the concern of directing function. As a function of management, directing is useful in many ways. 1. It guides and helps the subordinates to complete the given task properly and as per schedule.

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2. It provides the necessary motivation to subordinates to complete the work satisfactorily and strive to do them best. 3. It helps in maintaining discipline and rewarding those who do well. 4. Directing involves supervision, which is essential to make sure that work is performed according to the orders and instructions. 5. Different people perform different activities in the organisation. All the activities are interrelated. In order to co-ordinate the activities carried out in different parts and to ensure that they are performed well, directing is important. It thus, helps to integrate the various activities and so also the individual goals with organisational goals. environment and build up team spirit.

ELEMENTS IN DIRECTING

Communication, Supervision, Motivation and Leadership are the four essential elementsof directing. In the subsequent sections we shall discuss about the nature and significance of each of these component

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(4) Controlling Controlling is one the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization desired According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action. Thus, control comprises these three main activities Definitions According to Henri Fayol Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring. According to EFL Breach Control is checking current performance against pre-determined standards contained in the plans, with a view to ensure adequate progress and satisfactory performance. According to Harold Koontz Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished. According to Stafford Beer Characteristics of Control

Control is a continuous process Control is a management process Control is embedded in each level of organizational hierarchy Control is forward looking Control is closely linked with planning Control is a tool for achieving organizational activities

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The elements of control

The four basic elements in a control system (1) the characteristic or condition to be controlled, (2) the sensor, (3) the comparator , and (4) the activator occur in the same sequence and maintain a consistent relationship to each other in every system The first element is the characteristic or condition of the operating system which is to be measured. We select a specific characteristic because a correlation exists between it and how the system is performing. The characteristic may be the output of the system during any stage of processing or it may be a condition that has resulted from the output of the system. For example, it may be the heat energy produced by the furnace or the temperature in the room which has changed because of the heat generated by the furnace. In an elementary school system, the hours a teacher works or the gain in knowledge demonstrated by the students on a national examination are examples of characteristics that may be selected for measurement, or control. The second element of control, the sensor, is a means for measuring the characteristic or condition. The control subsystem must be designed to include a sensory device or method of measurement. In a home heating system this device would be the thermostat, and in a quality-control system this measurement might be performed by a visual inspection of the product. The third element of control, the comparator, determines the need for correction by comparing what is occurring with what has been planned. Some deviation from plan is usual and expected, but when variations are beyond those considered acceptable, corrective action is required. It is often possible to identify trends in performance and to take action before an unacceptable variation from the norm occurs. This sort of preventative action indicates that good control is being achieved. The fourth element of control, the activator, is the corrective action taken to return the system to expected output. The actual person, device, or method used to direct corrective inputs into the operating system may take a variety of forms. It may be a hydraulic controller positioned by a solenoid or electric motor in response to an electronic error signal, an employee directed to rework the parts that failed to pass quality inspection, or a school principal who decides to buy additional books to provide for an increased number of students. As long as a plan is performed within allowable limits, corrective action is not necessary; this seldom occurs in practice, however. Information is the medium of control, because the flow of sensory data and later the flow of corrective information allow a characteristic or condition of the system to be controlled. To illustrate how information flow facilitates control, let us review the elements of control in the context of information

Process of Controlling

Setting performance standards. Measurement of actual performance. Comparing actual performance with standards.
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Analysing deviations. Correcting deviations.

Kinds of control Control may be grouped according to three general classifications: (1) the nature of the information flow designed into the system (that is, open- or closed-loop control), (2) the kind of components included in the design (that is man or machine control systems), and (3) the relationship of control to the decision process (that is, organizational or operational control).
Open- and Closed-Loop Control

A street-lighting system controlled by a timing device is an example of an open-loop system. At a certain time each evening, a mechanical device closes the circuit and energy flows through the electric lines to light the lamps. Note, however, that the timing mechanism is an independent unit and is not measuring the objective function of the lighting system. If the lights should be needed on a dark, stormy day the timing device would not recognize this need and therefore would not activate energy inputs. Corrective properties may sometimes be built into the controller (for example, to modify the time the lights are turned on as the days grow shorter or longer), but this would not close the loop. In another instance, the sensing, comparison, or adjustment may be made through action taken by an individual who is not part of the system. For example, the lights may be turned on by someone who happens to pass by and recognizes the need for additional light. If control is exercised as a result of the operation rather than because of outside or predetermined arrangements, it is a closed-loop system. The home thermostat is the classic example of a control device in a closed-loop system. When the room temperature drops below the desired point, the control mechanism closes the circuit to start the furnace and the temperature rises. The furnace-activating circuit is turned off as the temperature reaches the preselected level. The significant difference between this type of system and an open-loop system is that the control device is an element of the system it serves and measures the performance of the system. In other words, all four control elements are integral to the specific system. An essential part of a closed-loop system is feedback; that is, the output of the system is measured continually through the item controlled, and the input is modified to reduce any difference or error toward zero. Many of the patterns of information flow in organizations are found to have the nature of closed loops, which use feedback. The reason for such a condition is apparent when one recognizes that any system, if it is to achieve a predetermined goal, must have available to it at all times an indication of its degree of attainment. In general, every goal-seeking system employs feedback

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REFRENCES: 1. Henri Fayol (1949). General and Industrial Management. New York: Pitman Publishing. pp. 107109. . 2. Robert J. Mockler (1970). Readings in Management Control. New York: Appleton-Century-Crofts. pp. 1417. 3. Richard Arvid Johnson (1976). Management, systems, and society : an introduction. Pacific Palisades, Calif.: Goodyear Pub. Co.. pp. 148142. 4. Samuel Eilon (1979). Management control. Boston, Mass.: Harvard Business School Press. 5. James G March; Herbert A Simon (1958). Organizations. New York: Wiley. pp. 911.

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(5)Coordination
Coordination is the act of organizing, making different people or things work together for a goal or effect to fulfill desired goals in an organization. Coordination is a managerial function in which different activities of the business are properly adjusted and interlinked. Coordination may also refer to:

Coordination bond, a type of chemical bond Coordination number, a measure of an atom's nearest neighbors Coordination problem, a social situation in which there are mutual gains if participants make mutually consistent decisions

Coordination game, a game-theoretic model of a coordination problem Coordination (linguistics), a compound grammatical construction Coordination (political culture), a Utopian form of political regime Motor coordination, in animal motion

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(6)Decision making Decision making can be regarded as the mental processes (cognitive process) resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice Decision-Making Stages Developed by B. Aubrey Fisher, there are four stages that should be involved in all group decision making. These stages, or sometimes called phases, are important for the decision-making process to begin Orientation stage- This phase is where members meet for the first time and start to get to know each other. Conflict stage- Once group members become familiar with each other, disputes, little fights and arguments occur. Group members eventually work it out. Emergence stage- The group begins to clear up vague opinions by talking about them. Reinforcement stage- Members finally make a decision, while justifying themselves that it was the right decision. It is said that critical norms in a group improves the quality of decisions, while the majority of opinions (called consensus norms) do not. This is due to collaboration between one another, and when group members get used to, and familiar with, each other, they will tend to argue and create more of a dispute to agree upon one decision. This does not mean that all group members fully agree--they may not want argue further just to be liked by other group members or to "fit in". Decision-making steps

Each step in the decision making process may include social, cognitive and cultural obstacles to successfully negotiating dilemmas. It has been suggested that becoming more aware of these obstacles allows one to better anticipate and overcome them. The Arkansas Program presents eight stages of moral decision making based on the work of James Rest: 1. Establishing community: creating and nurturing the relationships, norms, and procedures that will influence how problems are understood and communicated. This stage takes place prior to and during a moral dilemma 2. Perception: recognizing that a problem exists
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3. Interpretation: identifying competing explanations for the problem, and evaluating the drivers behind those interpretations 4. Judgment: sifting through various possible actions or responses and determining which is more justifiable 5. Motivation: examining the competing commitments which may distract from a more moral course of action and then prioritizing and committing to moral values over other personal, institutional or social values 6. Action: following through with action that supports the more justified decision. Integrity is supported by the ability to overcome distractions and obstacles, developing implementing skills, and ego strength 7. Reflection in action 8. Reflection on action When in an organization and faced with a difficult decision, there are several steps one can take to ensure the best possible solutions will be decided. These steps are put into seven effective ways to go about this decision making process (McMahon 2007). The first step - Outline your goal and outcome. This will enable decision makers to see exactly what they are trying to accomplish and keep them on a specific path. The second step - Gather data. This will help decision makers have actual evidence to help them come up with a solution. The third step - Brainstorm to develop alternatives. Coming up with more than one solution enables you to see which one can actually work. The fourth step - List pros and cons of each alternative. With the list of pros and cons, you can eliminate the solutions that have more cons than pros, making your decision easier. The fifth step - Make the decision. Once you analyze each solution, you should pick the one that has many pros (or the pros that are most significant), and is a solution that everyone can agree with. The sixth step - Immediately take action. Once the decision is picked, you should implement it right away. The seventh step - Learn from, and reflect on the decision making. This step allows you to see what you did right and wrong when coming up, and putting the decision to use.

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REFRENCES: 1. James Reason (1990). Human Error. Ashgate. ISBN 1-84014-104-2 2. Daniel Kahneman, Amos Tversky (2000). Choice, Values, Frames. The Cambridge University Press. ISBN 0-521-62172-0. 3. Triantaphyllou, E. (2000). Multi-Criteria Decision Making: A Comparative Study. Dordrecht, The Netherlands: Kluwer Academic Publishers (now Springer). pp. 320. ISBN 0-7923-6607-7. 4. Kepner, Charles H.; Tregoe, Benjamin B. (1965). The Rational Manager: A Systematic Approach to Problem Solving and Decision-Making. McGraw-Hill. 5. Monahan, G. (2000). Management Decision Making. Cambridge: Cambridge University Press. pp. 33 40. ISBN 0-521-78118-3. RESULT:- Thus we have studied the (1) Principle of Management (2) Organization (3) Directing (4) Controlling (5) Co- Ordination (6) Decision making

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