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gain a competitive advantage Q1 B Give an idea of the shape for future organization.

What would be the role of HRM in the future generations? Diversity


Workforce getting more heterogeneous sexually, racially, culturally, individually, etc. Source of both innovation and conflict/communication problems Need to cope with different styles of interaction, dress, presentation, physical appearance Due to:
o o

y y

changing demographics globalization of the labor market


Organizational systems and processes and people that can respond differently to different situations Fewer detailed rules and procedures Greater autonomy, encouragement for initiative Customizable employment relationships: telecommuting, job sharing, mommy tracks, pay for skills Lifetime employability, not lifetime employment Due to:

y y y

y y

differentiated customer needs -- filling them exactly is source of competitive advantage increasing diversity in workplace increased pace of change in technology and markets

o o

y y y y

Fewer levels of management, Workers empowered to make decisions Fewer differences in responsibility (not in pay) across levels Due to:

need for speed, which makes it helpful to empower employees to make decisions, which means fewer managers are needed changes in information technology mean less need for the communication and control functions of middle managers globalization means intensified competition, which increases the need to cut costs


Direct communication across unit & firm boundaries, ignoring chain of command Cross-unit team structures Outsourcing & downsizing Strategic alliances with competitors and others

y y y

Now have firms that are your competitors, customers and collaborators all at the same time

Close coordination among firms (e.g., JIT systems) and information sharing (open computer systems) Across the board contact with customers, not just official boundary spanners Customization Decentralization Due to:

y y y

new information technologies, especially groupware, client-server, distributed computing fast changing customer needs and competitor offerings more complicated products require better integration of manufacturing, design, and marketing functions

o o

Q3 A Explain the difference between recruitment andselection Basis Recruitment Selection


It is an activity of establishing contact between employers and applicants.

It is a process of picking up more competent and suitable employees.


It encourages large number of Candidates for a job.

It attempts at rejecting unsuitable candidates.


It is a simple

It is a complicated




The candidates have not to cross over many hurdles.

Many hurdles have to be crossed.


It is a positive approach.

It is a negative approach.


It proceeds selection.

It follows recruitment.


It is an economical method.

It is an expensive method.

Time Consuming

Less time is required.

More time is required.

Provides organization with a pool of qualified candidates The more qualified the pool the better the success rate in selection

Can help the organization meet affirmative action goals Can increase organizational effectiveness There is a danger that good selection can be viewed as a panacea, or a way of guaranteeing an effective workforce. Hopefully, you will already be aware that this is not the case. If it was there would be no need for any more modules in this course - which would make it easier, but less interesting!. No selection method is perfect. At best we can make use information gathered during selection to make some reasonably accurate predictions about future performance. In one sense, selection might be viewed as a risk management procedure that helps organisations to avoid hiring unsuitable applicants. It is important to recognise that there is much variability in work performance that is not directly related to selection scores.

Q 3 B what is induction? What purpose does it serve? Highlihgt the need for inductions the Indian context Induction training is training given to new employees. The purpose of the induction period (which may be a few hours or a few days) is to help a new employee settle down quickly into the job by becoming familiar with the people, the surroundings, the job and the business. It is important to give a new employee a good impression on the first day of work. However, the induction programme should not end there. It is also important to have a systematic induction programme, spread out over several days, to cover all the ground in the shortest effective time.

It has been proved in one of the survey conducted by the Centre for Creative Leadership (headquartered in Greensboro, North Carolina, US), that a fresh hire does not met the expectation of an organization for the first few months. The issue of productivity of new hires has to be defined individually by every organization. Fresh hires are able to learn the process as quickly as possible if the induction efforts are right and they can be very productive if their induction is been done in an proper manner. Induction training is very essential for any company because it helps an individual/new recruit to grow within a company and motivates him/her. It inculcates in the employee, more confidence to progress. It is during induction that a new recruit gets to know about the organization's employment philosophy, physical work environment, employee's rights, employee's responsibilities, organization, culture and values along with key business processes. Induction program must/should include all the aspects of the organization and present for the awareness of the new employee. Like emergency procedures, facilities, safety issues, right's of the employee, what to be paid, no harassment, equal opportunity, grievance procedures, employee responsibilities, times, conduct standards, job function, dress requirements, organisational structure, what it does, how they fit in, who is their Manager, the functions of different departments, how the employee will be managed, what the performance management process will involve, and his/her role in that process, are the few concern areas during an Induction program.


What is the meaning of performance appraiasal ? Describe the various

methods of performance appraisal. Point out their limitation A performance or(career) appraisal, employee discussion[1] is appraisal, performance a method by which review, the job


performanceof an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor.[2] A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivityalone. 1. Critical incident method This format of performance appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period. 2. Weighted checklist method In this style, performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs. 3. Paired comparison analysis This form of performance appraisal is a good way to make full use of the methods of options. There will be a list of relevant options. Each option is in comparison with the others in the list. The results will be calculated and then such option with highest score will be mostly chosen.

4. Graphic rating scales This format is considered the oldest and most popular method to assess the employees performance. In this style of performance appraisal, the management just simply does checks on the performance levels of their staff. 5. Essay Evaluation method In this style of performance appraisal, managers/ supervisors are required to figure out the strong and weak points of staffs behaviors. Essay evaluation method is a non-quantitative technique. It is often mixed with the method the graphic rating scale. 6. Behaviorally anchored rating scales This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff. 7. Performance ranking method The performance appraisal of ranking is used to assess the working performance of employees from the highest to lowest levels. Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards. 8. Management By Objectives (MBO) method MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them. 9. 360 degree performance appraisal The style of 360 degree performance appraisal is a method that employees will give confidential and anonymous assessments on their colleagues. This post

also information that can be used as references for such methods of performance assessments of 720, 540, 180 10.Forced ranking (forced distribution) In this style of performance appraisal, employees are ranked in terms of forced allocations. For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one.

Limitations LACK OF CLARITY:

The objective of performance appraisal is to evaluate and develop employees. An organization should avoid using one appraisal system to achieve both objectives. The particular system of the appraisal system should clarify before it is designed and should be discussed with all managers and employees to gain their commitment. Any performance appraisal system, however good the design, is unlikely to succeed if the managers and employees are suspicious of its objectives. It is extremely difficult if not impossible to device a system that will be able to satisfy both performance and reward. It happens because employees are likely to resist negative feedback and tend to be defensive when weakness in current performance is identified. It is because of this type of overlap in purposes that the appraisal loses its practically and increases the conflict between the manager 2. APPRAISAL and ERRORS: the These are as employees. follows;

Halo, Recency, Contrast effects: the Halo effect occurs when a manager rates an employee high or low on all teams, because of one characteristic. For instance; if

an employee has few absences, his manager might give him high rates in all other area of work. The recency effect happens when a rater gives greater weight to recent occurrence when appraising an employees performance. This sort of effect is an understandable raters error. It may not be easy for the manager to remember all events that happened like for instance; six months ago. Contrast error occurs when employees are rated relatively to other employees rather than to performance standards. For example; if everyone else in a group is doing mediocre job, an employee performing somewhat better may be rated as excellent because of the contrast effect. Rater biases: this occurs when manager values distort the rating. Reasons for bias differ, for instance, religion, age, sex, appearance or other arbitrary classifications. If a manager strongly dislikes a certain ethnic group, this will be negatively reflected in appraisal if the appraisal scheme is not properly designed. 3. UNEQUAL PERFORMANCE STANDARDS People differ from each other in the way they perceive things. What is good for some may be bad for others. Therefore managers have different judgments in appraising their employees. Managers attitudes to their employees differ, so different managers will appraise the same people quite differently which could make appraisal system subjective and manipulative.




Culture has profound impact on the appraisal system as it should be in consonance with the organizational culture. A system based on the employee participation and openness would be non-starter if the organizational culture is authoritarian and non-participative in its approach to other employee related policies. Readymade performance review system imported from other

organization rarely function satisfactorily. Their failure is partly due to culture differences. Thus culture is a vital factor to look after.

A Distinguish between training education and development ,why is training so important in HRD In HRD and Organisation Development context, these four terms are quite distinct: Training is event specific, of short term duration and with focussed objectives. example: training for sellling skills, training to operate a specific production system or process etc. Training is FORMAL.

Development is a larger canvass which envisages modification of behaviour and personality. For example we can have a project to develop the leadership skills of a selected group of persons. This may involve formal training sessions also but is more expanded and deeper than training. Development is mostly INFORMAL and at a behavioural plan.

Learning is a behavioural process which is continuous from birth to death. It is mostly informal, but there could be formal phases as well. From learning to talk, walk, run etc, to learning to operate a computer, fly a plane to learning to socialise, to lead a group, to move an idea....the list is infinite and touches upon all that we acquire from birth to death.

Education is the formal phase of learning described above. It is a combination of both training and development. The texts we study, th assignments we perform are part of the formal training phase, while the changes in our attitudes, values, ehaviour and culture is the informal, developmental part.

Training and development At the organizational level, a successful Human Resources Development program prepares the individual to undertake a higher level of work, "organized learning over a given period of time, to provide the possibility of performance change" (Nadler 1984). In these settings, Human Resources Development is the framework that focuses on the organization's competencies at the first stage, training, and then developing the employee, through education, to satisfy the organization's long-term needs and the individual's career goals and employee value to their present and future employers. Human Resources Development can be defined simply as developing the most important section of any business, its human resource, by attaining or upgrading employee skills and attitudes at all levels to maximize enterprise effectiveness.[2] The people within an organization are its human resource. Human Resources Development from a business perspective is not entirely focused on the individual's growth and development; "development occurs to enhance the organization's value, not solely for individual improvement. Individual education and development is a tool and a means to an end, not the end goal itself" (Elwood F. Holton II, James W. Trott Jr).[5] The broader concept of national and more strategic attention to the development of human resources is beginning to emerge as newly independent countries face strong competition for their skilled professionals and the accompanying braindrain they experience. Q6 What is the concept of external environment? Discuss the ways in which external environment affects the manager and their function? External Environment: introduction to the external environment Introduction

A business does not operate in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. Main Factors The main factor that affects most business is the degree of competition how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:

Social how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population. Legal the way in which legislation in society affects the business. E.g. changes in employment laws on working hours. Economic how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors. Political how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. Technological how the rapid pace of change in production processes and product innovation affect a business. Ethical what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights.

Changing External Environment Markets are changing all the time. It does depend on the type of product the business produces, however a business needs to react or lose customers. Some of the main reasons why markets change rapidly:
y y y y

Customers develop new needs and wants. New competitors enter a market. New technologies mean that new products can be made. A world or countrywide event happens e.g. Gulf War or foot and mouth disease. Government introduces new legislation e.g. increases minimum wage.

Business and Competition Though a business does not want competition from other businesses, inevitably most will face a degree of competition. The amount and type of competition depends on the market the business operates in:

Many small rival businesses e.g. a shopping mall or city centre arcade close rivalry. A few large rival firms e.g. washing powder or Coke and Pepsi. A rapidly changing market e.g. where the technology is being developed very quickly the mobile phone market.

y y

A business could react to an increase in competition (e.g. a launch of rival product) in the following ways:

Cut prices (but can reduce profits)

y y

Improve quality (but increases costs) Spend more on promotion (e.g. do more advertising, increase brand loyalty; but costs money) Cut costs, e.g. use cheaper materials, make some workers redundant

Social Environment and Responsibility Social change is when the people in the community adjust their attitudes to way they live. Businesses will need to adjust their products to meet these changes, e.g. taking sugar out of childrens drinks, because parents feel their children are having too much sugar in their diets. The business also needs to be aware of their social responsibilities. These are the way they act towards the different parts of society that they come into contact with. Legislation covers a number of the areas of responsibility that a business has with its customers, employees and other businesses. It is also important to consider the effects a business can have on the local community. These are known as the social benefits and social costs. A social benefit is where a business action leads to benefits above and beyond the direct benefits to the business and/or customer. For example, the building of an attractive new factory provides employment opportunities to the local community. A social cost is where the action has the reverse effect there are costs imposed on the rest of society, for instance pollution.

These extra benefits and costs are distinguished from the private benefits and costs directly attributable to the business. These extra cost and benefits are known as externalities external costs and benefits. Governments encourage social benefits through the use of subsidies and grants (e.g. regional assistance for undeveloped areas). They also discourage social costs with fines, taxes and legislation. Pressure groups will also discourage social costs.

Organizational change and intervention strategies Q8 ISTORY OF ORGANIZATIONAL DEVELOPMENT In the late 1960s organizational development was implemented in organizations via consultants, but was relatively unknown as a theory of practice and had no common definition among its practitioners. Richard Beckhard, an authority on organizational development and change management, defined organizational development as "an effort, planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's processes, using behavioral-science knowledge" (Beckhard 1969). Throughout the 1970s and 1980s organizational development became a more established field with courses and programs being offered in business, education, and administration curricula. In the 1990s and 2000s organizational development continued to grow and evolve and its influences could be seen in theories and strategies such as total quality management (TQM), team building, job enrichment, and reengineerin

2nd generation organization development We must embrace what French and Bell (in Organization Development) call second-generationconcepts like organizational transformation, visioning, learning organizations, and getting the whole system in the room. This evolution brings with it new and added complexity and requires expanded ways of thinking.Clients will need to better understand and successfully manage the interdependencies of structure, culture, processes, and strategy. What's really intriguing is that the nature of these interdependencies

is dynamic and non-linear, characterized by delays, feedback, and circular cause and effect (which tend not to be closely related in space and time). Traditional methods and tools often prove ineffective. We can't keep pushing harder and harder at the same old solutions. Applying Systems Thinking methodologies, within an OD context, greatly facilitates our ability to assess and resolve these challenges with our clients.As French and Bell state systems theory pervades all of the theory and practice of organization development, from diagnosis to intervention to evaluation.Applying OD intervention techniques with a systems thinking focus (including business system modeling and simulation where useful) expands the range and depth of new tools we can bring to bear when helping clients fix the growing number ofdynamically complex issues they will face. Value & assumptions in organization dvlpment Dealing with individuals Most individuals want to develop their potential and have drives towards personal growth and development if provided with supportive and challenging environment Most people desire to make, and are capable of making, a higher level of contribution to achieving organizational goals than is normally permitted. One of the most relevant reference group for individuals is the work group, including peers and boss. Most people desire to be accepted, and interact with one or more small reference groups.

Most people are capable of making greater contributions to the groups effectiveness and development Implication for managers Ask, listen, support, challenge, encourage risk-taking, permit failure, remove obstacles and barriers, give autonomy and responsibility, set high standards, reward success Grid organization development Grid Organization Development

One of the most Mouton (1964,1969)

structured and popular organization wise interventions

programs in OD is Grid OD, developed by psychologist Robert Blake and Jane

This approach to OD emphasizes the importance of both helping managers become more effective and systematically creating and ideal strategic model to guide organizational planning and actions. This OD intervention uses a variety of specially designed diagnostic instruments that enable individuals and groups to study their own behaviour and identify areas that need improvement. Grid and management Styles Grid OD proposes those two fundamental dimensions of leader behaviour are essential for understanding managerial effectiveness. a. Concern for people b. Concern for results

Concern for people refers to the consideration of social and interpersonal concern of others, concern for results involves issues of quality, quantity and overall effectiveness of work outputs. Q1 A What is ODn why change is necessary for the organization? Explain in detail with xample Organization development (OD) is a new[when?] term which means a conceptual, organization-wide effort to increase an organization's effectiveness and viability. Warren Bennis has referred to OD as a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, and structure of an organization so that it can better adapt to new technologies, markets, challenges, and the dizzying rate of change itself. OD is neither "anything done to better an organization" nor is it "the training function of the organization"; it is a particular kind of change process designed to bring about a particular kind of end result. OD can involve interventions in the organization's "processes," using behavioural science knowledge[1] organizational reflection, system improvement, planning and self-analysis. Change is important for any organization because, without change, businesses would likely lose their competitive edge and fail to meet the needs of what most hope to be a growing base of loyal customers. Technology Without change, business leaders still would be dictating correspondence to secretaries, editing their words and sending them back to the drawing board, wasting time for all involved. Change that results from the adoption of new technology is common in most organizations and while it can be disruptive at first, ultimately the change tends to increase productivity and service Technology also has affected how we communicate. No longer do business people dial a rotary phone, get a busy signal, and try again and again and again until they get

through. No longer do business people have to laboriously contact people, in person, to find out about other people who might be useful resources - they can search for experts online through search engines as well as through social media sites. Today's burgeoning communication technology represents changes that allow organizations to learn more, more quickly, than ever before. Growth Opportunities Change is important in organizations to allow employees to learn new skills, explore new opportunities and exercise their creativity in ways that ultimately benefit the organization through new ideas and increased commitment. Preparing employees to deal with these changes involves an analysis of the tools and training required to help them learn new skills. Training can be provided through traditional classroom settings or, increasingly, through online learning opportunities. Importantly, organizations need to do a good job of evaluating employees' capabilities and then taking steps to fill the gaps between current skills and the skills required to respond to growth. Q1 B What is the difference between survey and feedback? Explain their importance for a training institute. Design a feedback proformance for a training institute

A survey is a data collection tool used to gather information about individuals. Surveys are commonly used in psychology research to collect self-report data from study participants. A survey may focus on factual information about individuals, or it might aim to collect the opinions of the survey takers. A survey can be administered in a couple of different ways. In one method known as a structured interview, the researcher asks each participant the questions. In the other method known as a questionnaire, the participant fills out the survey on his or her own.

Surveys are generally standardized to ensure that they have reliability and validity. Standardization is also important so that the results can be generalized to the larger population. Feedback describes the situation when output from (or information about the result of) an event or phenomenon in the past will influence an occurrence or occurrences of the same (i.e. same defined) event / phenomenon (or the continuation / development of the original phenomenon) in the present or future. When an event is part of a chain ofcause-and-effect that forms a circuit or loop, then the event is said to "feed back" into itself.
Disagree Disagree Strongly Strongly Agree Agree

Specific Highlights and/or sugge

New knowledge, ideas and learning: I feel that my personal learning objectives were met The training has equipped me with enhanced knowledge, understanding and/or skills The training covered everything I had expected it to Is there additional material you think the course should have covered? If so, what?







Specific Highligh


Applying the Learning: I will use the new learning, skills, ideas and knowledge. If so, how?

Effect on Work Performance: I believe that the new learning and knowledge I have will improve my performance at work Practicalities: I feel that the course was conducted well (e.g engaging form of training delivery, length of course, professionalism of trainers, good venue)?

Q2 A What is organizational development intervention? How cam one classify the organizational intervention? Explain OD interventions "Interventions" are principal learning processes in the "action" stage (see Figure 1) of organization development. Interventions are structured activities used individually or in combination by the members of a client system to improve their social or task performance. They may be introduced by a change agent as part of

an improvement program, or they may be used by the client following a program to check on the state of the organization's health, or to effect necessary changes in its own behavior. "Structured activities" mean such diverse procedures as experiential exercises, questionnaires, attitude surveys, interviews, relevant group discussions, and even lunchtime meetings between the change agent and a member of the client organization. Every action that influences an organization's improvement program in a change agent-client system relationship can be said to be an intervention.[12] There are many possible intervention strategies from which to choose. Several assumptions about the nature and functioning of organizations are made in the choice of a particular strategy. Beckhard lists six such assumptions: 1. The basic building blocks of an organization are groups (teams). Therefore, the basic units of change are groups, not individuals. 2. An always relevant change goal is the reduction of inappropriatecompetition between parts of the organization and the development of a more collaborative condition. 3. Decision making in a healthy organization is located where the information sources are, rather than in a particular role or level of hierarchy. 4. Organizations, subunits of organizations, and individuals continuously manage their affairs against goals. Controls are interim measurements, not the basis of managerial strategy. 5. One goal of a healthy organization is to develop generally opencommunication, mutual trust, and confidence between and across levels. 6. People support what they help create. People affected by a change must be allowed active participation and a sense of ownership in the planning and conduct of the change

Q2B Why team building is one of the important activity for the management of an organization? Also explain the points one should consider while building a team Reasons for team building include

Improving communication Making the workplace more enjoyable Motivating a team Getting to know each other Getting everyone "onto the same page", including goal setting Teaching the team self-regulation strategies Helping participants to learn more about themselves (strengths and weaknesses)


Identifying and utilizing the strengths of team members Improving team productivity Practicing effective collaboration with team members

eam Characteristics: There are three essential attributes that members of your team must have: talent, passion and dedication.

Talent: Each team member needs to have talent they all need to own their abilities and focus on their assets. Your team does not need to be comprised of jacks-of-all-trades. What you need are individual team members who are masters of their own craft. But while you are small and lean, take advantage of everyone skills; if someone on your team is a great writer, have them take charge of your press releases and marketing content. Just like in basketball, there are the various positions because each team member has their own set of skills. Find your forward and your point guard. Passion: Each team member needs to be passionate about what he or she is doing and the goal of the project. If your developer knows ruby-on-rails but

doesnt care about the application you are creating, then there is no guarantee that their work will be as precise or consistent as you need or that they will go the extra mile. People do their best work when they care about what they are doing. The passion must be there to excel. Startups can be stressful and there may be many times when people want to quit. If your team members are not passionate about the goal of the organization, whats going to keep them from leaving?

Dedication: At a typical organization, dedication of its employees is important. But at a startup, its critical. Members of the team must be dedicated to the mission and be willing to give what it takes in order to succeed and feel that each member is just as dedicated as they are. A new business hasnt proven itself to anyone yet so things like passion and dedication must shine through to make up for lack of history. And just like passion, dedication ensures that your deliverables will be met and your startup has a better chance of being funded. No investor will support an entrepreneur who is not full-heartedly dedicated to his or her project.

Q3 What do u understand by total quality management? What are basic constituents of total quality management Total quality management or TQM is an integrative philosophy of managementfor continuously improving the quality of products and processes. [1] 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 cross-functional product

design,process management, supplier quality management, customer involvement, information and feedback, committed leadership, strategic planning, cross-functional training, and employee involvement. [2 Put Customers First

A quality product or service satisfies customers needs and expectations. Whether a product or service is of high or low quality, will be decided by how it made the consumer feel and whether consumer expectations were satisfied or exceeded. See quality. If customers are not put first, then customer expectations will be difficult to satisfy and consequently quality will not be achieved. Customers can be put first through a variety of initiatives including Undertaking market research to discover consumer needs so that the organisation can develop products and services that exceed their consumers needs. Looking after all customers whether internal or external. Internal customers are employees of the organisation and are known as customers when they approach each other for a service. External customers are all non-employees (of the organisation) that approach the organisation in connection with a service or product. Effective customer care systems. Ensuring that all service standards are met. Listening to customer views and opinions. Responding to customer views including resolving customer complaints in a manner that satisfies their expectations. Once customer complaints are resolved they should be analysed to prevent future recurrence. Make Continuous Improvement

The Japanese term kaizen has contributed to this component. Kaizen believes that there are no limits to continuous improvement. This means that a TQM organisation will continuously strive to improve their product/service and increase the quality standards. A TQM organisation will also view change positively whether the change involves a process change or a change in customer needs and expectations. This is because changes will enable the organisation to develop and explore quality. Aim for Zero Defects There are a number of reasons behind the aim to eradicate defects. Defects are expensive because they will lower the customers confidence in the product. Also it is more expensive to rectify defects than it is to prevent them occurring in the first place. Zero defects can be achieved through a combination of quality assurance and quality control ( visit the relevant sections by clicking on the links). Training and Development An organisation will need to train their employees to ensure that they understand the principles of TQM. A TQM organisation employee will need to understand how TQM is to be achieved or maintained and how they as an employee will ensure that the organisation emulates TQM. Unless each employee accepts and believes in TQM it will be difficult for the organisation to practice TQM. Q4 What are strategic management activities related with organizational development? Strategic management involves planning a business at the highest level. Strategic management activities are usually planned by the CEO, top management and even board of directors of a company. The strategic management plans are usually long term and focus on macro issues. Strategic management activities involve various methods of planning

strategy. Objectives

Many companies who have not engaged in strategic management practices start with a very simple question, "what do we want?" That is an expansive question that encompasses both short and long term objectives. It has roots in both the possible and the probable. Depending on who in the company is asked, the answers can vary. The company must first decide what it wants before it can take the next steps. For example, a line employee at shoe manufacturer may answer the question with "to sell more shoes," whereas the CEO may answer "increase market share and develop new product line while lowering overheard." Suitability and Feasibility

Once the objectives have been determined and clear goals established the management team must then decide on how to best go about achieving them. Still, before that occurs the team must conduct suitability and feasibility studies. Suitability basically means looking at whether the strategy makes sense. In the shoe company example, suitability for their objective of expanding product lines may be,"are these new products in line with our branding?" Feasibility is more practical and means taking an account of whether the strategy can actually be implemented. Again in the example, feasibility may be "Can we afford to expand? Do we have the necessary distribution channels?" Supervene Implementation

Implementation can be very detailed or simple. The implementation plan is an action plan to bring the strategy from concept to reality. It can be simple; the CEO may go to her head of product development and say "we want three new product lines," or it can be more complex and involve a number of departments.

The CEO may have very specific requirements based on her research, "we need three new lines in our women's department, target market 14-25, athletic, dress and casual. Cost of manufacturing must not exceed $1.00 a pair." The criteria can be exhaustive. The level of autonomy departments have in their implementation depends on those making the plans. Execution

Execution not only involves bringing the plan into fruition but also monitoring that plan to ensure that any variances or obstacles are dealt with immediately and contingencies are planned for. Even the best laid plans never turn out exactly as they were designed to. Successful management teams know this and plan for all possible scenarios. Q6 What do u u

Business Legislation

Q1a An agreement enforceable by law is a contract, Explain this statement and discuss the essentials of a vailid contract

n our regular day to day life we make several comments and statements. We say several things to people whom we talk to. Most of these are not with any intention to create any legal obligation. For example, if we say to someone that we will go to lunch with him, it is not a legal obligation. But some, which are related to business or civil matters, are understood to be in a serious mood and have a potential to be legally enforceable. For example, when we hire an Auto-rickshaw for going from point A to point B, we are legally bound to pay and the driver is legally bound to take us from A to B. Indian Contract Act 1872 defines these activities in precise terms in Section 2.

Definition of Terms Sec. 2 (a) When a person signifies to the other, to do something or to abstain from doing something, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a Proposal. Sec. 2 (b) When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. An accepted proposal becomes a promise. Sec. 2 (c) The person making the promise is called Promisor, while the person accepting the promise is called Promisee.

Sec. 2 (d) When, at the desire of the Promisor, the Pomisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing, something, such act or abstinence is called a consideration for the promise. Sec. 2 (e) Every Promise and every set of Promises forming a consideration for each other, is an Agreement. Sec. 2 (f) Promises which form the consideration or part of consideration for each other are "Reciprocal Promises". Sec. 2 (g) An agreement not enforceable by law is void. Sec. 2 (h) An agreement enforceable by law is a Contract. Sec. 2 (i) An agreement that is enforceable by law at the option of one or more of the parties thereto but not at the other or others is a voidable Contract. Sec. 2 (j) A Contract that ceases to be enforceable by law becomes void when it ceases to be enforceable by law. From sec 2(e) and 2(h), it is clear that Agreement and Contract are two different things. For an agreement to become a contract, it has to be enforceable by law. Section 10 states that all agreements that are made by free consent of the people who are competent to contract, for a legal object and legal consideration, and are not hereby expressly declared to by void, are contracts and are thus legally enforceable. Thus, there are five factors that determine whether an agreement can be legally enforced or not. These are discussed below:

1B Two are more person are said to consent when they agree upon the same thing in the same sense Explain this statement with illustration. It is another essential of a valid contract. Consent means that the parties must have agreed upon the same sense. For a valid contract it is necessary that the consent of parties to the contract must be free. According to section 14 consent is free when it is not obtained by coercion, under influence, fraud, misappropriation or mistake. If the consent of either of the parties is not free the agreement cannot become a contract. A compels B to enter into a contract on the point of pistol. It is not a valid contact as the consent between the parties is not free.

Lawful Object: it is also necessary that agreement should be made for a lawful object. The object for which the agreement has been entered into must not be fraudulent or illegal or immoral or apposed to public policy or must not imply injury to the person or property of another. For an agreement or contract by which the any consideration is against the law the agreement is termed as void.
Writing and registration: according to contract act a contract may be oral or in writing. Although in practice it is always in the interest of the parties that the contract should be made in writing so that it may be convenient to prove in the court

A had two scooters one green and the other white, and offered to sell his green scooter to B for Rs. 10,000. B accepted the offer believing it to be for white. In this case, no contract. Arises between A and B as there is no
A.consensus ad idem B.error in consensus

Q2 a What do you understand by breach of contract? Describe the remedies for the breach of contract?

Breach of contract is a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party's performance. If the party does not fulfill his contractual promise, or has given information to the other party that he will not perform his duty as mentioned in the contract or if by his action and conduct he seems to be unable to perform the contract, he is said to breach the contract.[1] Typically, the judicial remedy for breach of contract is monetary damages (see damages). Where the failure to perform cannot be adequately redressed by money damage, the court may enter an equity decree awarding an injunction or specific performance. The aggrieved person has a duty to mitigate or reduce damages by reasonable means. Liquidated Damages may be limited to a specific amount. In the United States, punitive damages are generally not awarded for breach of contract but may be awarded for other causes of action in a lawsuit. Main purpose of damages is to enable the innocent party to receive MONETARY COMPENSATION. Damages are a common law remedy and awarded as of right. They are calculated on the basis of looking at what the position of the plaintiff would have been if the contract had been properly performed. They are assessed on a once and for all basis at the date of breach. Rescission A right available to an injured party. Does not require the intervention of the court. Entitles the injured party to set the contract aside and is only available for breach of a condition. Substantial restoration must be possible as the injured party is restored to their pre-contractual position.

The right to rescission is lost if the injured party: continues with the transaction; fails to act or act within a reasonable time; or if an innocent third party acquires an interest in the subject matter. Specific Performance A remedy compelling performance. It is only granted at the courts discretion where the court can supervise the implementation of the contract. It is not available in contracts involving personal services because the court is unable to adequately supervise the task Q2 b What is bailment? State its essentials, describe the duties of a bailee
Bailment describes a legal relationship in common law where physical possession of personal property, or chattel, is transferred from one person (the 'bailor') to another person (the 'bailee') who subsequently has possession of the property. It arises when a person gives property to someone else for safekeeping. Bailment is distinguished from a contract of sale or a gift of property, as it only involves the transfer of possession and not itsownership. To create a bailment, the bailee must both intend to possess, and actually physically possess, the bailable chattel. Bailment is a typical common law concept although similar concepts exists in civil law (Spain- Depsito). In addition, unlike a lease or rental, where ownership remains with the lessor but the lessee is allowed to use the property, the bailee is generally not entitled to the use of the property while it is in his possession. Moreover, unlike a security agreement or pawn at a pawnbroker, where the secured party is entitled to the possession and use of the property only on default of payment, a bailor can demand the return of the property at any reasonable time, without prior notice. A common example of bailment is leaving your car with a valet. Leaving your car in a parking garage is typically a license, as the car park's intent to possess your car cannot be shown. However, it arises in many other situations, including terminated leases of property, warehousing (including store-it-yourself) or in carriage of goods.

A bailee owes a duty to protect the property, and to return the property promptly. Bailments apply to items which have been borrowed or loaned, items being transported by couriers, and customer goods in the possession of repairmen.

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Q4 a What do you understand by prospectus of a company? What particulars are given in a company prospectus explain in detail

A company prospectus is released by businesses to inform the public and investors of the various securities that are available. These documents describe to buyers and participants about mutual funds, bonds, stocks and other forms of investments offered by the company. A prospectus is generally accompanied by basic performance and financial information about the company. Read more: What Is a Company Prospectus? |

FORM NO. 2A COMPANIES ACT, 1956 Memorandum containing salient features of prospectus [See section 56(3)] I GENERAL INFORMATION (a) Name and address of registered office of the company (b) Issue listed at: [name(s) of the stock exchanges] (c) Opening, closing and earliest closing dates of the issue (d) Name and address of lead managers (e) Name and address of trustees under debenture trust deeds (in case of debenture issue) (f) Rating for the debenture/preference shares, if any, obtained from CRISIL or any recognised rating agency.

II CAPITAL STRUCTURE OF THE COMPANY (a) Issued, subscribed and paid-up capital (b) Size of present issue giving separately reservation for preferential allotment to promoters and others (c) Paid-up capital (i) after the present issue, (ii) after conversion of debentures (if applicable). III TERMS OF THE PRESENT ISSUE(a) Authority for the issue, terms of payments and procedure and time schedule for allotment and issue of certificates (b) How to apply ------ availability of forms, prospectus and mode of payment (c) Special tax benefits to company and shareholders under the Income-tax Act, if any. IV PARTICULARS OF THE ISSUE. (a) Object of the issue (b) Project cost Means of financing (including contribution of promoters)

V COMPANY, MANAGEMENT AND PROJECT (a) History, main objects and present business of the company. (b) Background of promoters, managing director/whole-time director and names of nominees of institution, if any, on the board of directors. (c) Location of the project. (d) Plant and machinery, technology, process, etc. (e) Collaboration, performance guarantee, if any, or assistance in marketing by the collaborators. (f) Infrastructure facilities for raw materials and utilities like water, electricity, etc. (g) Schedule of implementation of the project and progress made so far, giving details of land acquisition. Execution of civil works, installation of plant and machinery, trial production, date of commercial production, if any. (h) The products_____ (i) Nature of product(s)__ consumer/industrial and end-users.

(ii) Exiting, licensed and installed capacity of the product, demand of the product existing, and estimated in the coming years estimated by a Government authority or by any other reliable institution, giving source of the information. (iii) Approach to marketing and proposed marketing and proposed marketing set up. In case of company providing services, relevant information in regard to nature/extent of services , etc. , to be furnished (i) Further prospectus___ the expected year when the company would

be able to earn net profit, declare dividend. VI FINANCIAL PERFORMANCE OF THE COMPANY FOR THE LAST FIVE YEARS: (figures to be taken from the audited annual accountants in tabular from)\ (a) Balance sheet data; equity capital, reserves (state revaluation reserve, the year of revaluation and its monetary effect on assets ) and borrowings. (b) Profit and loss data: sales, gross profit, net profit, dividend paid , if any.

(c) Any change in accounting policies during the last three years and their effect on the profits and reserves of the company. (d) Stock market quotation of shares/debentures of the company, if any (high/low price in each of the last three years and monthly high/low price during the last six months). VII WHETHER ALL PAYMENTS/ REFUNDS, DEBENTURES, FIXED DEPOSITS, INTEREST ON FIXED DEPOSITS, DEBENTURE INTEREST, INSTITUTIONAL DUES HAVE BEEN PAID UP TO DATE. IF NOT, DETAILS OF THE ARREARS, IF ANY, TO BE STATED. VIII FOLLOWING PARTICULARS IN REGARD TO THE LISTED COMPANIES UNDER THE SAME MANAGEMENT WITHIN THE MEANING OF SECTION 370(1B) WHICH MADE ANY CAPITAL ISSUE IN THE LAST THREE YEARS: (a) Name of the company. (b) Year of issue. (c) Type of issue (public/rights/composite). (d) Amount of issue.

(e) Date of closure of issue. (f) Date of despatch of share/debenture certificate completed. (g) Date of completion of the project. (h) Rate of dividend paid. IX MANAGEMENT PERCEPTIONS OF RISK FACTORS (E.G. SENSITIVITY TO FOREIGN EXCHANGE RATE FLUCTUATIONS, DIFFICULTY IN AVAILABILITY OF RAW MATERIALS OR IN MARKETING OF PRODUCTS, COST/TIME OVERRUN.) Note: Term year wherever used, hereinbefore, means financial year. If the company does not receive application money for at least 90% of the issued amount, the entire subscription will be refunded to the applicants within ninety days from the date of closure of the issue. If there is delay in the refund of application money by more than 8 days after the company becomes liable to pay the excess amount, the company will pay interest for the delayed period, at

prescribed rates in sub-sections (2) and (2A) of section 73. No statement made in this form shall contravene any of the provisions of the companies Act, 1956, and the rules made thereunder. Place: Date: Directors Signatures of

Q4b What do you understand by Share cpital? What are its kinds? Explain the difference between share capital and debenture capital
The amount of share capital a company reports on its balance sheet only accounts for the initial amount for which the original shareholders purchased the shares from the issuing company. Any price differences arising from price appreciation/depreciation as a result of transactions in the secondary market are not included.

For example, suppose ABC Inc. raised $2 billion from its initial public offering. Over the next year, the total value of its shares increases to $5 billion. In this case, the value of the share capital is still only $2 billion because ABC Inc. had received only $2 billion from the sale of its securities to the investing public.

What are the different types of share capital? A public limited companymay have different types of shares carrying varying rights and conditions. See below:

1) Authorised Share Capital - This is also known as registered capital. It is the maximum amount of capital that the limited company is authorised to issue to its shareholders. However, the maximum amount can be changed by some legal formalities.

2) Subscribed Capital - This is the amount of money that the investors agree to subscribe in return for their shares.

3) Issued Share Capital - This is the part of capital which has been alloted or issued to shareholders.

4) Called up Share Capital - This is the total amount of issued capital for which the holders of shares are required to pay.

5) Paid up Share Capital - This is the actual amount paid by theshareholders on called-up capital. The amount remaining unpaid on the called-up capital is known as "call in arrears".

Difference:A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different from stocks and bonds, although all three are types of investment. Below are descriptions of the different types of investment options for small investors and entrepreneurs. Debentures and Shares When you buy shares, you become one of the owners of the company. Your fortunes rise and fall with that of the company. If the stocks of the company soar in value, your investment pays off high dividends, but if the shares decrease in value, the investments are low paying. The higher the risk you take, the higher the rewards you get. Debentures are more secure than shares, in the sense that you are guaranteed payments with high interest rates. The company pays you interest on the money you lend it until the maturity period, after which, whatever you invested in the company is paid back to you. The interest is the profit you make from debentures. While shares are for those who like to take risks for the sake of high returns, debentures are for people who want a safe and secure income.
Q7 a Define resolutions and explain the types of resolutions
A resolution is a written motion adopted by a deliberative body. The substance of the resolution can be anything that can normally be proposed as a motion. For long or important motions, though, it is often better to have them written out so that discussion is easier or so that it can be distributed outside of the body after its adoption. An alternate term for a resolution is a resolve. Resolutions are commonly used in corporations and houses of legislature.

n corporations

Main article: Corporate resolution In corporations, a written resolution is especially useful in the case of the board of directors of a corporation, which usually needs to give its consent to real estate purchases or sales by the corporation. Such a resolution, when certified by the corporation's secretary, gives assurance to the other side of the transaction that the sale was properly authorized. Other examples include resolutions approving the opening of bank accounts or authorizing the issuance of shares in the corporation. [edit]Houses

of legislature

When greater formality is desired, a motion may be made in the form of a resolution, which is always submitted in writing. Houses of a legislature often adopt non-binding resolutions. However, a legislature also uses resolutions to exercise one of its binding powers that isn't a lawmaking power. For example, the United States Congress declares war or proposes constitutional amendments by adopting a joint resolution. A house of a legislature can also use a resolution to exercise its specific powers, as the British House of Commons does to elect its Speaker or as the United States House of Representatives does to impeach an officer of the government. [edit]Types [edit]Non-binding Main article: Non-binding resolution In a house of a legislature, the term non-binding resolution refers to measures that do not become laws. This is used to differentiate those measures from a bill, which is also a resolution in the technical sense. The resolution is often used to express the body's approval or disapproval of something which they cannot otherwise vote on, due to the matter being handled by another jurisdiction, or being protected by a constitution. An example would be a resolution of support for a nation's troops in battle, which carries nolegal weight, but is adopted for moral support. [edit]Substantive

and procedural

Substantive resolutions apply to essential legal principles and rules of right, analogous to substantive law, in contrast to procedural resolutions, which deal with the methods and means by which substantive items are made and administered.

Q7B What do you understand by value added tax? Explain its merits and demerits.
A value added tax or value-added tax (VAT) is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its manufacture or distribution. The manufacturer remits to the government the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs. The "value added" to a product by a business is the sale price charged to its customer, minus the cost of materials and other taxable inputs. A VAT is like a sales tax in that ultimately only the end consumer is taxed. It differs from the sales tax in that, with the latter, the tax is collected and remitted to the government only once, at the point of purchase by the end consumer. With the VAT, collections, remittances to the government, and credits for taxes already paid occur each time a business in the supply chain purchases products


Deed of partnership Agreement

A deed of partnership is a legally binding agreement between partners who are in business together. It describes how the partnership will be run and the rights and duties of the partners themselves. It's not necessary to have a deed in order to set up a partnership, but it's a good idea, as it can help to prevent misunderstandings and disputes. It may be a good idea to enlist a solicitor to ensure that each partner understands their responsibilities before the deed is finalised. As well as giving basic information about the partnership, such as its business name and the names of the partners, the type of business and business address, the deed will usually set out:

y y y y

the amount of capital that each partner is to contribute to the business the way in which partners will share profits or losses, and whether any of the partners should be paid a salary working arrangements, such as how much time each partner should contribute to the business, who does what management tasks and what type of decisions need collective agreement between the partners changes to the partnership, such as how new partners can be appointed and what happens if a partner dies or wishes to leave

If the partnership does not have a deed, it will be governed by the terms of the Partnership Act 1890. This does not offer solutions to many of the problems that can arise and may not suit the way that you and your partners want to work together. Read about the Partnership Act 1890 on the HM Revenue & Customs

B Appointment of company auditors

The directors appoint the first auditor of the company. The auditor then holds office until the end of the first meeting of the company at which its accounts are laid before the members. At that meeting the members of the company can re-appoint the auditor, or appoint a different auditor, to hold office from the end of that meeting until the end of the next meeting at which accounts are laid. However, private companies can pass an 'elective resolution' not to lay accounts before the members in a general meeting. If this is done, then the auditor has to be re-appointed, or a new one appointed, at another meeting of the company's members that must be held within 28 days of the accounts being sent to the members. Private companies can also pass an elective resolution dispensing with the need to appoint an auditor every year. If that happens, the auditor already appointed remains in office without further formality until a resolution is passed to re-introduce annual appointment or to remove him or her as auditor.

C Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. A portion of the sale may be exempt from the calculation of tax, because sales tax laws usually contain a list of exemptions. Laws governing the tax may require it to be included in the price (tax-inclusive) or added to the price at the point of sale. Most sales taxes are collected from the buyer by the seller, who remits the tax to a government agency. Sales taxes are commonly charged on sales of goods, but many sales taxes are also charged on sales of services. Advantages that a sales tax generally has over other forms of taxation are that it is difficult to avoid, and simple to calculate and collect.

D Contract of indeminity
As per Section 124 of the Indian Contract Act, the contract of indemnity is defined as, a contract by which one party promises to save other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person. Does this sound like a lot of mumbo jumbo?

Well, this section is not so difficult to understand when you relate it to practical house. Suppose you are hired by a newspaper to write articles for them as a freelancer. Typically, your contract would have an indemnity clause so that if you write something against a very important person and that person files a suit against the newspaper for defamatory material, the newspaper can show the indemnity clause that you signed, protecting them from any form of loss caused due to your conduct. Then, the onus of fighting the defamation suit becomes your responsibility. Thats not all about the contract of indemnity as it is incorporated in most contracts, particularly in real estate purchase and bank loans. A person who promises to bear the loss is known as indemnifier and the person whose loss is covered is known as indemnified. These types of contracts are mainly formed between insurance companies and their customers. Under Section 126, of the Act, a contract of guarantee is defined as, a contract to perform the promise, or discharge the liability of a third person in case of his default. This type of contract is formed mainly to facilitate borrowing and lending money. The three parties involved in this type of contract are:

y y y

Surety: is the person by whom the guarantee is given Principal Debtor: is the person from whom the assurance is given. Creditor: is the person to whom the guarantee is given.