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1.1 PRINCIPLES OF MANAGEMENT

1. Scientific management involves in its essence a
complete revolution on the part of workers and an
equally complete revolution on the part of those
on the management side. Explain.
2. Outline Taylor’s Scientific Management and
examine its relevance to management in present
– day business.
3. Decision making is the selection from among
alternatives of a course of action, at the core of
planning, and an essential part of modern
management. – Discuss.
4. Take any country with which you are familiar and
discuss how a factor in the educational
environment imparts on managing an enterprise.
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1.2 HUMAN RESOURCE MANAGEMENT

1. “An organisation becomes more global, HRP
becomes more important and complex”.
Elucidate.
2. Design a process for promoting internal
candidates. How does the process differ from the
one used for selecting external applicants?
3. Training programmes are frequently the first
items eliminated when management wants to cut
costs. Why is it so? Explain the importance of
investing in human resource.
4. Many managers describe performance appraisal
as the responsibility which they like the least.
Why is this so? What could be done to improve
the perception?
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1.3 PRODUCTION AND MATERIALS MANAGEMENT

1. Discuss the various inventory models used in
industries. Do you think JIT inventory is
successful in India? Explain.
2. Critically evaluate different maintenance
techniques used in heavy industries. Which is
more effective? Why
3. How do production managers’ co-ordinate the
machining process? Discuss the difficulties
involved in it?
4. A company plans to start a mineral water plant
in Tamilnadu. What factors would you consider
in selecting the site location. Draw layout for this
project.
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1.4 MARKETING MANAGEMENT

1. Discuss the difficulties in developing new

products. What steps are involved in developing a
mobile phone?
2. Evaluate the pricing strategies adopted by
washing machine manufacturers. Prepare a table
showing the salient aspects of each company.
3. How will you measure the effectiveness of
distribution set up of home based battery
chargers (Inverters).
4. What kinds of sales promotion techniques are
available for laptop computers? Based on the
schemes available in the market, suggest a
suitable scheme for a company planning to
launch a Lap Top Computer.
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1.5 FINANCIAL MANAGEMENT

1. Assume you are newly appointed as Finance Executive
in a Manufacturing firm. What guidelines you will to
follow in financial planning?
2. What measures you will take towards maintenance of
liquid assets to ensure that the firm has adequate cash
in hand to meet its obligations at all times?
3. Due to over capitalization the company may collapse
which would certainly affect its employees, society,
consumers and its shareholders. What remedies you
would suggest? Give suitable examples.
4. i) You plan to purchase some properties costing
500,000. Stamp duty is 2 percent of the
purchase price and legal expenses will be
5,500. The property will be financed by
80,000 of your own savings and a mortgage
loan from your bank at 6% p.a. The loan will be
amortised by monthly instatements over the
next fifteen years.
a. What is the amount of the monthly installment?
b. How much is the principal value of your loan after
six (6) years of repayment?
c. If the interest rate after 6 years increases to 8%
p.a. calculate the new monthly repayment?

ii) You just inherited a large amount of money to

deposit for one year and you have approached
the following three banks:
Bank Fee pays 8.60% p.a. compounded semi-
annually
Bank fee pays 8.00% p.a. compounded monthly

Bank fee pays 7.90% p.a. compounded weekly

a. Calculate the effective interest rate
for each of the three Banks?
b. Which bank offers you the highest
effective deposit rate and which bank offers
you the lowest effective deposit rate?
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1.6 BUSINESS MATHEMATICS AND STATISTICS

1. a) Write clearly the relationship between binomial

Poisson distribution.
b) Five hundred television sets are inspected as

they come off the production line and the

number of defects per set is reordered
below:
No.of defects : 0 1 2 3 4
No.of Television:368 72 52 7 1
Estimate the average number of defects per
set and the expected frequencies assuming
Poisson distribution.
2. a) Explain correlation using scatter diagram.
b) A study of wheat price at two cities yielded
the
following data :
City A City A
Average price 2463
2797
Standard Deviation 0.326 0.267
Co-efficient of correlation is 0.774. Estimate
from the above data the most likely price of
wheat i) at City ‘A’- when it is 2334 at city ‘B’.
ii) at city ‘B’- where the price is 3.052 at city
‘A’.
3. a) Discuss in detail the theory of estimation and

also the methods used.

b) A life insurance company has 1500 policies
with an average of 2000/- on lives at age
40. From the experience table it is found
that
of 1,00,000 above alive at age 30;90,000
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were
alive at age 31. Find the lower and upper

values of the amount the company will have

to payout in insurance during the year.
4. a) Explain utility concept. State the
assumptions
of utility function.
b) Matrix Company is planning to launch a new
product, which can be introduced initially in
Western Indian or in the entire country. If the
product is used only in Western India, the
investment outlay will be 12 million. After two
years, matrix can evaluate the project to
determine whether it should cover the entire
country for such expansion, it will have to incur
as additional investment of 10 million. To
introduce the product in the entire country right
on the beginning would involve an outlay of
20 million. The product in any case, will have a
life of 5 years, after which the plant will have
zero net value. If the product is introduced only
in Western India, demand would be high or low
with the probabilities of 0.8 and 0.2
respectively and annual cash flow of 4 million
and
2 million respectively. If the product is
introduced in the entire country, right in the
beginning, the demand would be high or low
with probabilities of 0.6 and 0.4 respectively
and annual cash inflows of 8 million and
Rs. 5 million respectively.
Based on the observed demand in Western India,
if the product is introduced in the entire country.
The following probabilities would exist for high
and low demand on all India basis:
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Whole country
Western
India High Low
Demand Demand
High 0.90 0.10
Demand
Low 0.40 0.60
Demand
The hurdle rate applicable to this project is
12 per cent
a) Set up a decision tree for the investment
situation.
b) Advise Matrix Company on the investment
policy it should follow.
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1.7 ORGANISATIONAL BEHAVIOUR

1. Heredity determines personality (a) Build an
argument to support this statement (b) Build an
argument against this statement.
2. Stress illness often proves very costly to
organization in terms of employee absence and
the cost of administering health insurance plans.
What steps can companies take to reduce stress
among their employees?
3. Do you agree (or) disagree that the need for
achievement can be learned? Do you think it
might be earlier to learn it as a young child (or)
as an adult?
4. “Behaviour is basically dissimilar” How will you
try to ensure uniformity in behaviour towards
achieving conformity with organizational goals.
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1.8 MANAGERIAL COMMUNICATION

1. How are business reports different from business
letters? In your opinion, which is the most
important step in report preparation and why?
2. State the barriers of communication and describe
the ways to overcome these barriers.
3. Elaborate on the merits and demerits of using
technology in business communication.
4. Briefly describe about interpersonal communication
and discuss how interpersonal communication
helps you in your business.