Answer:

Management Information System (MIS): It is a system or process that provides information

needed to manage organizations effectively. Management information systems are regarded to be
a subset of the overall internal controls procedures in a business, which cover the application of
people, documents, technologies, and procedures used by management accountants to solve
business problems such as costing a product, service or a business-wide strategy. Management
information systems are distinct from regular information systems in that they are used to
analyze other information systems applied in operational activities in the organization.

MIS characteristics

• It supports transaction handling and record keeping.

• It is also called as integrated database Management System which supports in major functional
areas.
• It provides operational, tactical, and strategic level managers with east access to timely but, for
the most, structured information.
• It supports decision –making function which is a vital role of MIS.
• It is flexible which is needed to adapt to the changing needs of the organization.
• It promotes security system by providing only access to authorized users.
• MIS not only provides statistical and data analysis but also works on the basis on MBO
(management by objectives). MIS is successfully used for measuring performance and making
necessary change in the organizational plans and procedures. It helps to build relevant and
measurable objectives, monitor results,
and send alerts.

• Coordination: MIS provides integrated information so that all the departments are aware of the
problem and requirements of the other departments. This helps in equal interaction of the
different centers and connects decision centers of the organization.
• Duplication of data is reduced since data is stored in the central part and same data can be used
by all the related departments.
• MIS eliminates redundant data.
• It helps in maintaining consistency of data. It is divided into subsystems. Handlings with small
systems are much easier than an entire system. This helps in giving easy access of data, accuracy
and better information production.
• MIS assembles, process, stores, Retrieves, evaluates and disseminates the information.

Function of MIS

The main functions of MIS are:

• Data Processing: Gathering, storage, transmission, processing and getting output of the data.
Making the data into information is a major task.
• Prediction: Prediction is based on the historical data by applying the prior knowledge
methodology by using modern mathematics, statistics or simulation. Prior knowledge varies on
the application and with different departments.
• Planning: Planning reports are produced based on the enterprise restriction on the companies
and helps in planning each functional department to work reasonably.
• Control: MIS helps in monitoring the operations and inspects the plans. It consists of
differences between operation and plan with respect to data belonging to different functional
department. It controls the timely action of the plans and analyzes the reasons for the differences
between the operations and plan. Thereby helps managers to accomplish their decision making
task successfully.
• Assistance: It stores the related problems and frequently used information to apply them for
relative economic benefits. Through this it can derive instant answers of the related problem.
• Database: This is the most important function of MIS. All the information is needs a storage
space which can be accessed without causing any anomalies in the data. Integrated Database
avoids the duplication of data and thereby reduces redundancy and hence consistency will be
increased.
• The major function of MIS lies in application of the above functions to support the managers
and the executives in the organization in decision-making.

Disadvantages of MIS :

The following are some of the disadvantages of MIS:

• MIS is highly sensitive: MIS is very helpful in maintaining logging information of an

authorized user. This needs to monitor constantly.
• Quality of outputs is governed by quality of inputs.
• MIS budgeting: There is difficulty in maintaining indirect cost and overheads.Capturing the
actual cost needs to have an accrual system having true costs of outputs which is extremely
difficult. It has been difficult to establish definite findings.
• MIS is not flexible to update itself for the changes.
• The changes in the decision of top level management decrease its effectiveness.
• Information accountability is based on the qualitative factors and the factors like morality,
confidence or attitude will not have any base.

Labels: MB0047, Semester 2

Answer:
1. Financial management: Financial management is the branch of the finance that concerns
itself with the managerial significance of finance techniques. It is focused on assessment rather
than technique. The difference between a managerial and a technical approach can be seen in the
questions one might ask of annual reports. One concerned with technique would be primarily
interested in measurement. One concerned with management though would want to know what
the figures mean. They might compare the returns to other businesses in their industry and ask:
are we performing better or worse than our peers? If so, what is the source of the problem? Do
we have the same profit margins? If not why? Do we have the same expenses? Are we paying
more for something than our peers? They may look at changes in asset balances looking for red
flags that indicate problems with bill collection or bad debt. They will analyze working capital to
anticipate future cash flow problems. Managerial finance is an interdisciplinary approach that
borrows from both managerial accounting and corporate finance. Sound financial management
creates value and organisational agility through the allocation of scarce resources amongst
competing business opportunities. It is an aid to the implementation and monitoring of business
strategies and helps achieve business objectives.

2. Financial planning: A financial planning or financial planner is a practicing professional who

helps people deal with various personal financial issues through proper planning, which includes
but is not limited to these major areas: cash flow management, education planning, retirement
planning, investment planning, risk management and insurance planning, tax planning, estate
planning and business succession planning (for business owners). The work engaged in by this
professional is commonly known as personal financial planning. In carrying out the planning
function, he is guided by the financial planning process to create a
financial plan; a detailed strategy tailored to a client's specific situation, for meeting a client's
specific goals. The key defining aspect of what the financial planner does is that he considers all
questions, information and advice as it impacts and is impacted by the entire financial and life
situation of the client.

3. Capital structure: In finance, capital structure refers to the way a corporation finances its
assets through some combination of equity, debt, or hybrid securities. A firm's capital structure is
then the composition or 'structure' of its liabilities. For example, a firm that sells $20 billion in
equity and $80 billion in debt is said to be 20% equity-financed and 80% debtfinanced.
The firm's ratio of debt to total financing, 80% in this example, is referred to as the firm's
leverage. In reality, capital structure may be highly complex and include dozens of sources.
Gearing Ratio is the proportion of the capital employed of the firm which come from outside of
the business finance, e.g. by taking a short term loan etc. The Modigliani-Miller theorem,
proposed by Franco Modigliani and Merton Miller, forms the basis for modern thinking on
capital structure, though it is generally viewed as a purely theoretical result since it assumes
away many important factors in the capital structure decision. The theorem states that, in a
perfect market, how a firm is financed is irrelevant to its value. This result provides the base with
which to examine real world reasons why capital structure is relevant, that is, a company's value
is affected by the capital structure it employs. Some other reasons include bankruptcy costs,
agency costs, taxes, and information asymmetry. This analysis can then be extended to look at
whether there is in fact an optimal capital structure: the one which maximizes the value of the
firm.

4. Cost of capital: The cost of capital is the cost of a company's funds (both debt and equity), or,
from an investor's point of view "the expected return on a portfolio of all the company's existing
securities". It is used to evaluate new projects of a company as it is the minimum return that
investors expect for providing capital to the company, thus setting a benchmark that a new
project has to meet. For an investment to be worthwhile, the expected return on capital must be
greater than the cost of capital. The cost of capital is the rate of return that capital could be
expected to earn in an alternative investment of equivalent risk. If
a project is of similar risk to a company's average business activities it is reasonable to use the
company's average cost of capital as a basis for the evaluation. A company's securities typically
include both debt and equity, one must therefore calculate both the cost of debt and the cost of
equity to determine a company's cost of capital. The cost of debt is relatively simple to calculate,
as it is composed of the rate of interest paid. In practice, the interest-rate paid by the company
can be modelled as the risk-free rate plus a risk component (risk premium), which itself
incorporates a probable rate of default (and amount of recovery given default). For companies
with similar risk or credit ratings, the interest rate is largely exogenous (need to explain use of
"exogenous" in this context). The cost of equity is more challenging to calculate as equity does
not pay a set return to its investors. Similar to the cost of debt, the cost of equity is broadly
defined as the risk-weighted projected return required by investors, where the return is largely
unknown. The cost of equity is therefore inferred by comparing the investment to other
investments (comparable) with similar risk
profiles to determine the "market" cost of equity.

5. Trading on equity: In finance, equity trading is the buying and selling of company stock
shares. Shares in large publicly-traded companies are bought and sold through one of the major
stock exchanges, such as the New York Stock Exchange, London Stock Exchange or Tokyo
Stock Exchange, which serve as managed auctions for stock trades. Stock shares in smaller
public companies are bought and sold in over-the-counter (OTC) markets. Equity trading can be
performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the
share's owner. Proprietary trading is buying and selling for the trader's own profit or loss. In this
case, the principal is the owner of the shares. Agency trading is buying and selling by an agent,
usually a stock broker, on behalf of a client. Agents are paid a commission for performing the
trade. Major stock exchanges have market makers who help limit price variation (volatility) by
buying and selling a particular company's shares on their own behalf and also on behalf of other
clients.

Labels: MB0045, Semester 2

Answer:
System Productivity:
Enhancement of productivity is achieved by either reducing the inputs for the same output or
increasing the output by using the same input. Productivity can be calculated for a:
• Single operation
• Functional unit
• Department or division
• Plant
Productivity is a measure of the efficiency of the system and looks at the economies achieved
during the processes. Every process will have a number of contributors which help in achieving
maximum productivity. The processes are: People, Machines, Facilitating goods, Ancillary
equipments, and Technology. Each of these elements attempts to enhance the contribution of
other elements.

Opportunities exist at all stages of the workflow in the entire system to introduce measures for
increasing productivity. However in actual manufacturing situations, the inefficiencies will have
cascading effect in hampering productivity. Communication, effective review processes and
innovative methods will ensure optimisation of resources. Building up reliability into the
equipments, managing the supply chain to economise on the cost factors improves productivity.
Quality circles are very efficient in incorporating low cost and non-intrusive methods of
improving productivity and quality throughout the organisation.
Quality circles:
• Involve all persons who are actually involved in the production system and the information
they elicit and bring about improvements that are highly cost effective.
• Unveil creativity and encourage team work and bring about improvements almost on a day to
day basis.
• Bring continuous incremental changes in a harmonious way instead of dramatic changes.
• Encourage identification of possible failures and seek methods of preventing things going
wrong
Computers in Design – CADDesigns of products are increasingly depending on Computer
Aided Design (CAD). It is an electronic system for designing new parts or products or altering
existing ones, replacing drafting traditionally done by hand. The designs are made using
powerful desktop computers and graphics software. Designer can create drawings and view them
from any angle on a display monitor. Images of different components can be seen as
‘assembled’; sections taken and relative positions can be checked to great accuracies. Views can
be made from different angles and positions, so that the visualisation process of the designed
component/product
helps the designer to suggest alternatives to the customer and the production department. The
drawings can be sent via intranet or internet to the concerned persons and their opinions taken.
Corrections and incorporations can be made very quickly. The computer can also simulate the
reaction of a part to strength and stress tests. Using the design data stored in the computer’s
memory, manufacturing engineers and other users can quickly obtain printouts of plans and
specifications for a part or product. The software can generate the volume, weights of
components as also other engineering parameters like centre of gravity, deflections under
estimated loads, and various other design parameters on complicate
forms, either for single components or assemblies. Laborious mechanical drawings or
complicated calculations need not be drawn for people using this software. The database can be
prepared, updated continuously and their access to executive. Analysts use CAD to store,
retrieve, and classify data about various parts.
CAD helps to increase the efficiency of a designer’s work. This aids in reducing the time
required for making a design or modifying a product and thus concept market period gets
drastically cut. This implementation also cuts the cost of product development and sharply
reduces the time to market new products. It saves time by enabling designers to access and
modify old designs quickly, rather than start from scratch.
Computer integrated manufacturing (CIM)
Integration occurs when a broad range of manufacturing and supporting activities are linked.
CIM is the complete automation of a manufacturing plant, with all processes functioning under
computer control and digital information tying them together. The three major functions in
manufacturing are production, design, and management function. Production function converts
resources into products. The design function transforms customer specifications into design.
Finally the management functions plan and control production
activities.
The three computer aids in CIM are:
• Computer aid to the production function (automated flow of materials)
• Computer aid to the design function (automated flow of technological information)
• Computer aid to the management function (automated flow of managerial
information)
When it comes to production, CIMs are included in different areas of production process such as
in engineering design, production planning, shop control, order processing, material control,
distribution and many other areas. Information flow across all the functions takes place with the
help of computers. Transmission, processing, distribution, and feedback
happen almost in real time so that intended activities are conducted apidly.
CIM process helps in rapid production and also reduces indirect costs. CIM uses computers to
control the entire production process. This integration allows the processes to exchange
information with each other and thus they become capable of initiating actions. As response
times decrease, customer satisfaction increases resulting in better business. CIM helps in
avoiding accumulation of materials resulting in better throughput and better utilisation of space.
Bar coded labels that accompany materials contain instructions for processing them which are
read by sensing devices and display the status on monitors. This information is available to all
concerned personnel responsible in planning, marketing and other activities
so that they will be aware of the status of any order. If expediting is needed to meet deadlines,
they will be able to seek intervention. Identifying shortages and ensuring faster deliveries
become easy with CIM.

Labels: mb0044, Semester 2

Answer:
a) Importance of DMAIS in project management cycle: The projectised mantras of
production management can be broadly identified as - Define Measure, Analyze, Improve,
Standardize (DMAIS). These projectised mantras help in identifying, evaluating, and selecting
the right improvement solutions for managing a project. The mantras also help in identifying the
critical issues thus assisting the organization to adapt to the changes introduced through the
implementation of different solutions.

The phases associated with each projectised mantra of production management are:

1. Define: benchmark, customer requirement, process flow map, quality function deployment,
project management plan
2. Measure: data collection, defect metrics, sampling
3. Analysis: cause and effect, failure modes and effect analysis, decision and risk analysis,root
cause analysis, reliability analysis
4. Improve: design of experiments, modeling, and robust design
5. Standardize: control charts, time series, procedural adherence, performance management,
preventive activities displays the various phases of DMIAS.

Labels: MB0049, Semester 2

Answer:
The objectives of tabulation are to:

i. Simplify complex data

ii. Highlight important characteristics
iii. Present data in minimum space
iv. Facilitate comparison
v. Bring out trends and tendencies
vi. Facilitate further analysis

Marital Status Sex Educated Non-Educated

Age: 20-40 Above 40 Below 20yrs 20-40 Above 40

Below 20yrs
Male
Married
Female
Male
Unmarried
Female
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Labels: FALL 2010, MB0040, Semester 1

Graphical representation is a good way to represent summarised data. However, graphs provide
us only an overview and thus may not be used for further analysis. Hence, we use summary
statistics like computing averages. to analyse the data. Mass data, which is collected, classified,
tabulated and presented systematically, is analysed further to bring its size to a single
representative figure. This single figure is the measure which can be found at central part of the
range of all values. It is the one which represents the entire data set. Hence, this is called the
measure of central tendency.
In other words, the tendency of data to cluster around a figure which is in central location is
known as central tendency. Measure of central tendency or average of first order describes the
concentration of large numbers around a particular value. It is a single value which represents all
units.
Statistical Averages: The commonly used statistical averages are arithmetic mean, geometric
mean, harmonic mean.

Arithmetic mean is defined as the sum of all values divided by number of values and is
represented by X.
Before we study how to compute arithmetic mean, we have to be familiar with the terms such as
discrete data, frequency and frequency distribution, which are used in this unit.
If the number of values is finite, then the data is said to be discrete data. The number of
occurrences of each value of the data set is called frequency of that value. A systematic
presentation of the values taken by variable together with corresponding frequencies is called a
frequency distribution of the variable.
Median: Median of a set of values is the value which is the middle most value when they are
arranged in the ascending order of magnitude. Median is denoted by ‘M’.

Mode: Mode is the value which has the highest frequency and is denoted by Z.
Modal value is most useful for business people. For example, shoe and readymade garment
manufacturers will like to know the modal size of the people to plan their operations. For
discrete data with or without frequency, it is that value corresponding to highest frequency.
Appropriate Situations for the use of Various Averages
1. Arithmetic mean is used when:
a. In depth study of the variable is needed
b. The variable is continuous and additive in nature
c. The data are in the interval or ratio scale
d. When the distribution is symmetrical
2. Median is used when:
a. The variable is discrete
b. There exists abnormal values
c. The distribution is skewed
d. The extreme values are missing
e. The characteristics studied are qualitative
f. The data are on the ordinal scale
3. Mode is used when:
a. The variable is discrete
b. There exists abnormal values
c. The distribution is skewed
d. The extreme values are missing
e. The characteristics studied are qualitative
4. Geometric mean is used when:
a. The rate of growth, ratios and percentages are to be studied
b. The variable is of multiplicative nature
5. Harmonic mean is used when:
a. The study is related to speed, time
b. Average of rates which produce equal effects has to be found
4.9 Positional Averages
Median is the mid-value of series of data. It divides the distribution into two equal portions.
Similarly, we can divide a given distribution into four, ten or hundred or any other number of
equal portions.
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Labels: FALL 2010, MB0040, Semester 1

Answer:
Before the Meeting

As pointed out earlier, meetings need to be planned in advance, so that they are successful.
Before any planning can be done however, a basic question to be asked is whether to hold a
meeting at all. The answers to the following questions would help to decide whether a meeting is
necessary in the first place –
-Can the matter be decided or discussed over the telephone?
-Can the matter be expressed in writing, in the form of a memo, or an email message?
-Are key people available to attend the meeting and are they prepared?
-Is the time allotted for the meeting sufficient?

If the answers to the first two questions are yes and the answers to the other two questions are no,
there is no purpose in calling a meeting.
Once the need for a meeting has been determined, the next step is to start planning the meeting.
First of all, the type and number of participants should be decided. A problem solving meeting
should include representatives from all departments, since the decision would otherwise be
incomplete. Shareholders, who are the owners of the company, should also be included. In terms
of numbers, the size of the group could be anywhere between seven and eleven members. An
exception to this is an information sharing meeting, where the numbers could be larger, so that a
maximum number of people benefit from the information.

The second and most important step in planning a meeting is to indicate the purpose or agenda of
the meeting to the participants in advance. An agenda is essentially a list of topics that will be
discussed during a meeting. In the words of Adler and Elmhorst, “A meeting without an agenda
is like a ship at sea without a destination or compass: no one aboard knows where it is or where it
is headed.” An agenda is prepared by the Chairperson of the meeting, or the person who calls the
meeting.

During the Meeting:

The task of conducting and moderating the meeting rests with the chairperson. He or she must be
well versed with the procedures for opening the meeting, encouraging balanced participation,
and solving problems creatively, concluding the meeting and managing time efficiently. We shall
discuss each of these procedures in detail.

1. Opening the Meeting – The manner in which the meeting is opened is important, since a good
opening will ensure that the rest of the meeting will proceed smoothly. There are different ways
of opening a meeting. Generally, it is best to sum up what has been stated in the agenda –
including the goals, background information and expectations of the participants. It is also a
good idea to provide an outline of how the meeting will proceed, as well as a time budget.

2. Encouraging Balanced Participation – It is also the responsibility of the chairperson to

encourage silent members to contribute to the meeting and to moderate the dominant members,
so that they do not “hijack” the meeting. There are several techniques to encourage participation
–

• Encourage Participation in the Reverse Order of Seniority – This means getting the junior
members to speak or air their opinions first. If the senior people speak first, they may feel
suppressed or be afraid to disagree with their superiors.

• Nominal Group Technique – In this method, the meeting participants are encouraged to work
and contribute their ideas independently

3. Managing Time – There is no prescribed length for a meeting. The duration of a meeting will
depend on the type and purpose of the meeting. Generally, problem-solving meetings will take
longer than other routine meetings. In any case, the chairperson should set a time budget for the
meeting, depending on the agenda and ensure adherence to the time limit.
4. Keeping the Meeting Focused – Often, a lot of time is wasted during meetings by going off
track and by discussing topics that are irrelevant. In such situations, it is the responsibility of the
chairperson, or the person moderating the discussion to make sure that the discussion remains
focused on the topics mentioned in the agenda.

5. Ensuring “Convergence” – Convergence means hearing the points of view of all the members
and then arriving at a decision. It is again the responsibility of the chairperson to bring the
meeting to a point where an opinion emerges on each item of the agenda.

6. Summing Up – This means summing up the different points of view, the decisions and the
actions to be taken. This should be done by the chairperson, identifying the role of each person
on each item of the agenda, along with a specified deadline.

Example – Chris will take the responsibility of contacting the media and sending material for
advertisements and press releases by March 13th.

7. Concluding the Meeting – The way a meeting is concluded is as important as the opening,
since it will influence the follow-up action taken on decisions made during the meeting. The
chairperson should know when and how to conclude the meeting.

The meeting should normally be concluded at the scheduled closing time, unless important issues
still remain to be discussed and members are willing to extend the meeting. Sometimes meetings
may be concluded before the closing time, when key decision makers are not present, or when
important information such as cost figures are not available.

8. Keeping “Minutes” of the Meeting – Since meetings are called to take important decisions
concerning the organization, it is important to maintain a permanent written record of the
proceedings, which can be referred to at a later stage, or serve as a guide for action. Such a
record is known as “minutes” of the meeting and may be done in an informal or formal manner,
depending on the type of meeting.

After the Meeting:

A meeting that proceeds smoothly will still not be successful, unless proper follow-up measures
are taken to ensure that the goals are fully accomplished. Follow-up may involve the following
steps –

1. Plan for the Next meeting – Very few meetings is conclusive and cover all the items in the
agenda completely. It is the chairperson’s responsibility to make a note of the items that have not
been discussed and to schedule the next meeting, along with a fresh agenda. All participants
must be informed that a follow-up meeting is being planned.

2. Check Progress on Follow-up Actions – Members of the meeting may have been assigned
different responsibilities and deadlines for completion of tasks. Therefore, it is important to
monitor their progress every now and then, after the meeting is over, to ensure that the deadlines
are met.
3. Do your own Groundwork – Apart from monitoring the progress of meeting participants, it is
also important that you as the chairperson finish any pending work before the next meeting.
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Labels: FALL 2010, MB0039, Semester 1

Answer:
World Markets Rise As Double-Dip Fears Ease: World stock markets advanced modestly
Monday as investors rode momentum from Friday, when an upbeat U.S. jobs report eased fears
that the global economy could slip back into recession.
With Wall Street closed for a holiday, however, trading was expected to remain light.
Markets took heart after official data last week showed private employers in the U.S. added
67,000 jobs in August, more than analysts expected.

The figure bolstered optimism that the U.S. will maintain a slow but steady recovery from last
year's recession and avoid another economic contraction later this year.

By mid-afternoon in Europe, Britain's FTSE 100 index was up 0.3 percent at 5,446.17,
Germany's DAX was 0.3 percent higher at 6,153.31 and France's CAC-40 was up 0.3 percent at
3,684.20. Asian indexes closed higher and trading on Wall Street was to remain shut for Labor
Day weekend after closing higher on Friday.

With most major governments reining in economic stimulus measures and many pushing through
austerity spending cuts to reduce deficits, investors worry the global economy would be pushed
into a double dip recession, particularly as the U.S. slows down quickly.
Because the U.S. economy is the world's largest and consumer spending there accounts for a fifth
of global economic activity, the stronger-than-expected jobs data on Friday helped calm
investors' frayed nerves after weeks of worrying indicators.

"The renewed flight to safety we have witnessed over the past month is overdone and risks an
equally large reversal when the worries over a double dip subside," analysts from Rabobank said
in a report.

"As the unexciting, steady and below-trend global recovery continues, it's important not to
confuse it with a double dip recession."

Japan's benchmark Nikkei 225 stock index climbed 2.1 percent, or 187.19, to 9,301.32 and South
Korea's Kospi rose 0.7 percent to 1,792.42.

Hong Kong's Hang Seng index added 1.8 percent to 21,355.77. Australia's S&P/ASX 200 gained
0.8 percent at 4,575.50. Markets in mainland China, Taiwan, India, Indonesia and Singapore
were also higher.

The Dow Jones industrial average jumped 1.2 percent to close at 10,447.93 on Friday. The
broader Standard & Poor's 500 Index rose 1.3 percent to 1,104.51.

Shares in the U.S. ended the week in the positive, the first time that has happened in a month.
The early gains in September mark a stark turnaround from August trade, when shares fell on
doubts about the global economic recovery.

The dollar fell to 84.24 yen from 84.27 yen on Friday. The euro was slightly lower at $1.2880
from $1.2895.

Benchmark oil for October delivery was down 40 cents at $74.20 a barrel in electronic trading on
the New York Mercantile Exchange. The contract fell 42 cents to settle at $74.60 on Friday.

Jargon refers to technical terms or specialized vocabulary. Some of the technical terms
mentioned above are “rode momentum, Kospi, FTSE, CAC, DAX, calm investors' frayed nerves,
etc.” More complex words and phrases are written in the above article and this reduces the level
of readability when read by a common man. The above article is well written, however, the
reader of the article should have a certain amount of knowledge in the field of stock trading and
world financial markets.
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Labels: FALL 2010, MB0039, Semester 1

ield of stock trading and world financial markets.

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Labels: FALL 2010, MB0039, Semester 1

MB0039– BC - Q 1. Describe any situation that you experienced where the

communication went wrong because the listening was faulty. Analyze the
situation by explaining the type of listening barrier. . How could this barrier be
overcome?

Answer:The following example illustrates an organizational barrier to communication.

By the time the message is passed down from the Chief to the lower level Executives, it is
distorted completely, so much so that the original message is interpreted differently by each level
in the organization.

Memo from CEO to Manager: Today at 11 o’clock there will be a total eclipse of the sun. This is
when the sun disappears behind the moon for 2 minutes. As this is something that cannot be seen
every day, time will be allowed for employees to view the eclipse in the parking lot. Staff should
meet in the lot at ten to eleven, when I will deliver a short speech introducing the eclipse, and
giving some background information. Safety goggles will be made available at a small cost.
Memo from Manager to Department Head: Today at ten to eleven, all staff should meet in the car
park. This will be followed by a total eclipse of the sun, which will appear for 2 minutes. For a
moderate cost, they will be made safe with goggles. The CEO will deliver a short speech
beforehand to give us all some information. This is not something that can be seen everyday.

Memo from the Department Head to Floor Manager: The CEO will today deliver a speech to
make the sun disappear for 2 minutes in the form of an eclipse. This is something that cannot be
seen everyday so staff will meet in the car park at ten or eleven. This will be safe, if you pay a
moderate cost.

Memo from Floor Manager to Supervisor: Ten or eleven staff are to go to the car park, where the
CEO will eclipse the sun for 2 minutes. This does not happen everyday. It will be safe, and as
usual it will cost you.

Memo from Supervisor to Staff: Some staff will go to the car park today to see the CEO
disappear. It is a pity this doesn’t happen everyday.

Communication was filtered or misinterpreted because of the following barriers:

Organizational Barriers – In organizations that are too hierarchical, that is, where there are
multiple “layers”, messages may have to pass through many levels before they finally reach the
receiver. Each level may add to, modify or completely change the message, so much so that it
becomes distorted by the time it reaches the intended receiver. In other words, there is likely to
be loss of meaning and the message may not reach the receiver in the same way as it was
intended by the sender.

Another type of organizational barrier is a departmental barrier. This means that each department
in an organization functions in isolation and there is no co-ordination or communication between
them.

This barrier could be overcome by the following methods:

1. Encourage Feedback – Organizations should try to improve the communication system by
getting feedback from the messages already sent. Feedback can tell the managers whether the
message has reached the receiver in the intended way or not.

2. Create a Climate of Openness – A climate of trust and openness can go a long way in
removing organizational barriers to communication. All subordinates or junior employees should
be allowed to air their opinions and differences without fear of being penalized.

3. Use Multiple Channels of Communication – Organizations should encourage the use of

multiple channels of communication, in order to make sure that messages reach the intended
receivers without fail. This means using a combination of both oral and written channels, as well
as formal (official) and informal (unofficial) channels of communication. The types of channels
will be discussed in detail later, in a separate unit.
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channels will be discussed in detail later, in a separate unit.
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MB0038 - Q.4 What are the factors influencing perception?

Answer: Factors Influencing Perception

Perception is our sensory experience of the world around us and involves both the recognition of
environmental stimuli and actions in response to these stimuli. Through the perceptual process,
we gain information about properties and elements of the environment that are critical to our
survival. Perception not only creates our experience of the world around us; it allows us to act
within our environment.
A number of factors operate to shape and sometimes distort perception. These factors can reside:
i) In the perceiver.
ii) In the object or target being perceived or
iii) In the context of the situation in which the perception is made.
1. Characteristics of the Perceiver: Several characteristics of the perceiver can affect perception.
When an individual looks at a target and attempts to interpret what he or she stands for, that
interpretation is heavily influenced by personal characteristics of the individual perceiver. The
major characteristics of the perceiver influencing perception are:
a) Attitudes: The perceiver’s attitudes affect perception. For example, suppose Mr. X is
interviewing candidates for a very important position in his organization – a position that
requires negotiating contracts with suppliers, most of whom are male. Mr X may feel that
women are not capable of holding their own in tough negotiations. This attitude will doubtless
affect his perceptions of the female candidates he interviews.
b) Moods: Moods can have a strong influence on the way we perceive someone. We think
differently when we are happy than we do when we are depressed. In addition, we remember
information that is consistent with our mood state better than information that is inconsistent
with our mood state. When in a positive mood, we form more positive impressions of others.
When in a negative mood, we tend to evaluate others unfavourably.
c) Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence
on their perceptions. For example, in an organizational context, a boss who is insecure perceives
a subordinate’s efforts to do an outstanding job as a threat to his or her own position. Personal
insecurity can be translated into the perception that others are out to "get my job", regardless of
the intention of the subordinates.
d) Self-Concept: Another factor that can affect social perception is the perceivers’ self-concept.
An individual with a positive self-concept tends to notice positive attributes in another person. In
contrast, a negative self-concept can lead a perceiver to pick out negative traits in another person.
Greater understanding of self allows us to have more accurate perceptions of others.
e) Interest: The focus of our attention appears to be influenced by our interests. Because our
individual interests differ considerably, what one person notices in a situation can differ from
what others perceive. For example, the supervisor who has just been reprimanded by his boss for
coming late is more likely to notice his colleagues coming late tomorrow than he did last week.
If you are preoccupied with a personal problem, you may find it hard to be attentive in class.
f) Cognitive Structure: Cognitive structure, an individual’s pattern of thinking, also affects
perception. Some people have a tendency to perceive physical traits, such as height, weight, and
appearance, more readily. Others tend to focus more on central traits, or personality dispositions.
Cognitive complexity allows a person to perceive multiple characteristics of another person
rather than attending to just a few traits.
g) Expectations: Finally, expectations can distort your perceptions in that you will see what you
expect to see. The research findings of the study conducted by Sheldon S Zalkind and Timothy
W Costello on some specific characteristics of the perceiver reveal
• Knowing oneself makes it easier to see others accurately.
• One’s own characteristics affect the characteristics one is likely to see in others.
• People who accept themselves are more likely to be able to see favourable aspects of other
people.
• Accuracy in perceiving others is not a single skill.
These four characteristics greatly influence how a person perceives others in the environmental
situation.
Characteristics of the Target: Characteristics in the target that is being observed can affect what
is perceived. Physical appearance plays a big role in our perception of others. Extremely
attractive or unattractive individuals are more likely to be noticed in a group than ordinary
looking individuals. Motion, sound, size and other attributes of a target shape the way we see
it.The perceiver will notice the target’s physical features like height, weight, estimated age, race
and gender. Perceivers tend to notice physical appearance characteristics that contrast with the
norm, that are intense, or that are new or unusual. Physical attractiveness often colours our entire
impression of another person. Interviewers rate attractive candidates more favourably and
attractive candidates are awarded higher starting salaries.
Verbal communication from targets also affects our perception of them. We listen to the topics
they speak about, their voice tone, and their accent and make judgements based on this input.
Non-verbal communication conveys a great deal of information about the target. The perceiver
deciphers eye contact, facial expressions, body movements, and posture all in an attempt to form
an impression of the target .As a result of physical or time proximity, we often put together
objects or events that are unrelated.
For example, employees in a particular department are seen as a group. If two employees of a
department suddenly resign, we tend to assume their departures were related when in fact, they
might be totally unrelated. People, objects or events that are similar to each other also tend to be
grouped together. The greater the similarity, the greater the probability we will tend to perceive
them as a group.
Characteristics of the Situation: The situation in which the interaction between the perceiver and
the target takes place, has an influence on the perceiver’s impression of the target. E.g. meeting a
manager in his or her office affects your impression in a certain way that may contrast with the
impression you would have formed, had you met the manager in a restaurant. The strength of the
situational cues also affects social perception. Some situations provide strong cues as to
appropriate behaviour. In these situations, we assume that ±ie individual’s behaviour can be
accounted for by the situation, and that it may not reflect the individual’s disposition. This is the
discounting principle in social perception. For example, you may encounter an automobile
salesperson who has a warm and personable manner, asks you about your work and hobbies, and
seems genuinely interested in your taste in cars. Can you assume that this behaviour reflects the
salesperson’s personality? You probably cannot, because of the influence of the situation. This
person is trying to sell you a car, and in this particular situation, he probably treats all customers
in this manner.
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manner.
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MB0038 - Q.3 Explain the classification of personality types given by Myers

-Briggs.

Answer:The Myers-Briggs Type Indicator

The MBTI classifies human beings into four opposite pairs (dichotomies), base on their
psychological opposites. These four opposite pairs result into 16 possible combinations. In
MBTI, Individuals are classified as (McCrae and Costa, 1989) :
a. Extroverted or introverted (E or I).
b. Sensing or intuitive (S or N).
c. Thinking or feeling (T or F).
d. Perceiving or judging (P or J).
• These classifications are then combined into sixteen personality types. For example:
a. INTJs are visionaries. They usually have original minds and great drive for their own ideas
and purposes. They are characterized as skeptical, critical, independent, determined, and often
stubborn.
b. ESTJs are organizers. They are realistic, logical, analytical, decisive, and have a natural head
for business or mechanics. They like to organize and run activities.
c. The ENTP type is a conceptualizer. He or she is innovative, individualistic, versatile, and
attracted to entrepreneurial ideas. This person tends to be resourceful in solving challenging
problems but may neglect routine assignments.
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routine assignments.
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MB0038 - Q.2 Discuss the methods of shaping behavior in detail. - Fall 2010

ANSWER: Shaping Behavior

When a systematic attempt is made to change individuals’ behaviour by directing their learning
in graduated steps, it is called shaping behavior. There are four methods of Shaping Behavior.
They are as follows:
1. Positive reinforcement – This is the process of getting something pleasant as a consequence of
a desired behavior, to strengthen the same behavior. For example, one get a commission, if
he/she achieves sales target.
For example,
i) Bonuses paid at the end of a successful business year are an example of positive
reinforcement.
ii) Employees will work hard for a raise or a promotion.
iii) Salesmen will increase their efforts to get rewards and bonuses.
iv) Students will study to get good grades, and
v) In these examples, the rises, promotions, awards, bonuses, good grades, are positive
reinforces.
2. Negative reinforcement – This is the process of having a reward taken away as a consequence
of a undesired behavior. For example, scholarship is withdrawn from the student who has not
done well on the examination. Just as people engage in behaviours in order to get positive
reinforces, they also engage in behaviours to avoid or escape unpleasant conditions. Terminating
an unpleasant stimulus in order to strengthen or increase the probability of a response is called
negative reinforcement.
3. Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable
behavior. This is the process of getting a punishment as a consequence of a behavior.
According to B. F. Skinner, punishment is still the most common technique of behaviour control
in today’s life. When a child misbehaves, he is spanked. If a person does not behave as the
society or law wants him to do, he is punished by arrest and jail.
Example: Loss of pay for coming late to office. Punishment can be accomplished either by
adding an unpleasant stimulus or removing a pleasant stimulus. The added unpleasant stimulus
might take the form of criticism, a scolding, a disapproving look, a fine, or a prison sentence.
The removal of a pleasant stimulus might consist of withholding affection and attention,
suspending a driver’s license, or taking away a privilege such as watching television.
Accordingly, in situations where punishment is desirable as a means of behaviour modification,
certain guidelines would make it more effective thus minimizing its dysfunctional consequences.
a) Praise in public; punish in private.
b) Apply punishment before the undesirable behaviour has been strongly
reinforced. Thus, the punishment should immediately follow the undesirable
behaviour.
c) The punishment should focus on the behaviour and not on the person.
4. Extinction – An alternative to punishing undesirable behaviour is extension – the attempt to
weaken behaviour by attaching no consequences (either positive or negative) to it. It is
equivalent to ignoring the behaviour. The rationale for using extinction is that a behaviour not
followed by any consequence is weakened. However, some patience and time may be needed for
it to be effective.
This type of reinforcement is applied to reduce undesirable behaviour, especially when such
behaviours were previously rewarded. This means that if rewards were removed from behaviours
that were previously reinforced, then such behaviours would become less frequent and
eventually die out. For example, if a student in the class is highly mischievous and disturbs the
class, he is probably asking for attention. If .the attention is given to him, he will continue to
exhibit that behaviour.
Both positive and negative reinforcement result in learning. They strengthen a response and
increase the probability of repetition. Both punishment and extinction weaken behavior and tend
to decrease its subsequent frequency
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subsequent frequency
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MB0038 – Q.1 Write a note on the managerial roles and skills.

Answer:
FALL 2010
According to Mintzberg (1973), managerial roles are as follows:
1. Informational roles
2. Decisional roles
3. Interpersonal roles

1. Informational roles: This involves the role of assimilating and disseminating information as
and when required. Following are the main sub-roles, which managers often perform:
a. Monitor – collecting information from organizations, both from inside and outside of the
organization
b. Disseminator – communicating information to organizational members
c. Spokesperson – representing the organization to outsiders
2. Decisional roles: It involves decision making. Again, this role can be sub-divided in to the
following:
a. Entrepreneur – initiating new ideas to improve organizational performance
b. Disturbance handlers – taking corrective action to cope with adverse situation
c. Resource allocators – allocating human, physical, and monetary resources
d. Negotiator – negotiating with trade unions, or any other stakeholders
3. Inter`personal roles: This role involves activities with people working in the organization. This
is supportive role for informational and decisional roles. Interpersonal roles can be categorized
under three sub-headings:
a. Figurehead – Ceremonial and symbolic role
b. Leadership – leading organization in terms of recruiting, motivating etc.
c. Liaison – liasoning with external bodies and public relations activities.

Management Skills: Katz (1974) has identified three essential management skills: technical,
human, and conceptual.
Technical skills: The ability is to apply specialized knowledge or expertise. All jobs require
some specialized expertise, and many people develop their technical skills on the job. Vocational
and on-the-job training programs can be used to develop this type of skill.
Human Skill: This is the ability to work with, understand and motivate other people (both
individually and a group). This requires sensitivity towards others issues and concerns. People,
who are proficient in technical skill, but not with interpersonal skills, may face difficulty to
manage their subordinates. To acquire the Human Skill, it is pertinent to recognize the feelings
and sentiments of others, ability to motivate others even in adverse situation, and communicate
own feelings to others in a positive and inspiring way.
Conceptual Skill: This is an ability to critically analyze, diagnose a situation and forward a
feasible solution. It requires creative thinking, generating options and choosing the best available
option.
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