What is Capital Asset Pricing Model (CAPM) ? ANSWER -

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Project Management


Section A: Objective Type & Short Questions (30 marks)
„h This section consists of Multiples choice and Short Note Type questions.
„h Answer all the questions.
„h Part one carries 1 mark each and Part Two carries 4 marks each.
Part One: Multiple choices:
1. Liquidation value of the firm¡¦s assets could be considered as________________
a. The minimum wealth of shareholder
b. The maximum wealth of shareholder
c. The average wealth of shareholder
d. None
2. If ¡¥P¡¦ be the initial investment, ¡¥I¡¦ be the interest rate and ¡¥T¡¦ be the time period for which funds are invested then interest earned will be______________
a. P*I/T
b. P*T/I
c. (P*I*T)2
d. P*I*T
3. Following the above given conditions, compound Interest be given by___________
a. P*(1+I)1/T
b. P*(1+I)T
c. (P*I*T)T
d. Can not be calculated
4. Firms resorting to ¡¥Proactive Growth¡¦?
a. Do constant strategic planning
b. Watch things happening
c. Never plan but work on fortune
d. None
5. ¡¥SPACE¡¦ stands for___________________
6. Increasing marketing expenditure leading to an increased market share is known as________________
a. Market development
b. Market penetration
c. Market expansion
d. Market growth
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7. If profit after tax is ¡¥A¡¦ ,depreciation be ¡¥B¡¦ and interest be ¡¥I¡¦ then Interest cover ratio is given by______________
8. E-V rule is also called_____________
a. Mean co variance rule
b. Mean variance rule
c. Mean deviation rule
d. None
9. In case of internally generated funds the opportunity cost to the firm is____________
a. Zero
b. The lending rate
c. The borrowing rate
d. None
10. ¡¥PERT¡¦ stands for__________________
Part Two:
1. Write a note on ¡¥Sinking Fund Payment¡¦.
2. Differentiate between PERT and CPM Model?
3. What is ¡¥Capital Asset Pricing Model (CAPM)¡¦?
4. What do you understand by PBP (Payback Period Method)?
5. Briefly explain the planning for procurement?
END OF SECTION A
Section B: Caselets (40 marks)
„h This section consists of Caselets.
„h Answer all the questions.
„h Each caselet carries 20 marks.
„h Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1 Project partnering at British Airports Authority (BAA) The construction sector in recent times has not been noted for its high levels of performance. Firms like BAA, who own and operate airports including Heathrow and Gatwick ¡V London¡¦s two major airports ¡V rely heavily on their suppliers, including their construction suppliers, for their own
performance. Where construction projects are delayed, the financial consequences can be disastrous. Furthermore, the disciplines of working on airport premises, including the security issues, play a
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significant part in the daily working lives of project staff. New firms bringing new staff onto the airport sites invariably require time to bring them up to speed with the appropriate ways of working. Particular problems include:
„h Security ¡V all personnel with access to airside parts of the airport (i.e. past passport control) must be security vetted and trained. The vetting process takes six weeks, so firms must prepare project staff in advance;
„h Deliveries ¡V getting materials into the airport is problematic, due to significant congestion and lack of availability of areas for storage;
„h Constant use of terminal buildings by passengers ¡V the closing of areas causes problems with passenger capacity. The firms are required to work with the constraints of passengers using the areas around where the work is being carried out and physical and noise intrusion must be kept to a minimum;
„h The commercial activities (shops and restaurants) are the economic lifeblood of the business, with large ground-rents. The objective of projects involving these areas is not simply to complete works on time but as early as possible, so that the areas can start to generate rental incomes.
The traditional approach to managing fit-out projects (changing internal layouts to accommodate different facilities and in particular new retail facilities) was that every contract was different, and would be negotiated with different contractors. These would then employ their own sub-contractors to carry out parts of the work. The approach that has worked far better for all concerned has been through the appointment of lead contractors, with long-term contracts ¡V in most cases 10 years ¡V to be the prime supplier of fit-out services to B.A.A. This particular contract was awarded to MACE. As part of the agreement, BAA has paid for MACE staff to attend training programmes. This has extended further, with help being offered to their suppliers ¡V of both materials and labour ¡V for development. Where particular problems are identified, the supplier can be asked to take part in an improvement programme. Satisfactory completion can result in similar long-term deals (tied to continual improvement) being offered to those suppliers. In some cases the problems ¡V particularly with designs for areas ¡V have been the responsibility of BAA. The mechanisms are now in place to identify these problems and to introduce new practices to avoid them in future.
1) Summarise the arguments for such a policy of partnering with a major supplier such as BAA and MACE have done here.
2) Carry out further research to identify further examples of partnering in projects. How well do they appear to be working?
Caselet 2 The Big Dig Any project that involves tunnelling is risky. Any project that involved tunneling under a city whilst trying to keep that city fully operational, is very risky. When that city is bottom in the USA, it is in a risk category all of its own. This does not, how ¡V ever, excuse the financial performance of this project, the results of which are exceptional and even make the performance of previous ¡¥stars of disaster¡¦ such as the Channel Tunnel, look good. During the 1950s, the Commonwealth of Massachusetts commissioned new roads as part of a national road-building frenzy that took place at that time. The result was a partly elevated freeway that cut the city off from its old harbour and over
time coped increasingly less well with the volumes of traffic that were trying to use it. For many years, the project had been the subject of much politicking and had been rejected by a number of national administrations. In 1993, it was given the go-ahead. At this time the budget was $US2.6
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billion, an enormous sum of money for an 8-mile tunnel, but given the technical complexity of the task, this was considered acceptable. Gradually the costs rose, until in 1998, the estimated final cost was 410.4 billion. By mid-2000 this had risen to $13 billion and by mid-2001 to over $15 billion. It was still considered a technical success, but both politically and economically, it was a disaster. In project management terms it is also a disaster ¡V a 500 per cent-plus overrun on budget can only be described as ¡¥talented¡¦. How did such a financial disaster occur? The first is a feature of many large ¡¥political¡¦ projects ¡V that the ¡¥real cost¡¦ would not be politically acceptable. The original budget was deliberately deflated to make the project happen. The second is technical risk ¡V that of the tunnelling process. The ground through which the tunnelling is being carried out is reclaimed land that was originally under the sea. The tunnelling process being used was also new, presenting a degree of technical novelty.
1) How might the project be considered a technical success but an economic, political and project management disaster?
2) Suggest how the 500 per cent-plus overrun might have come about.
END OF SECTION B
Section C: Applied Theory (30 marks)
„h This section consists of Long Questions.
„h Answer all the questions.
„h Each question carries 15 marks.
„h Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Define the term Integration Management? And how would you explain the Project plan in detail?
2. The funds and personnel requirements of the project change significantly with the stage of its life cycle. What are the stages in the life cycle of project? Describe them.
END OF SECTION C
S-2-300813



Principles and Practices of Management


Subject Code-B101 Section A: Objective Type & Short Questions (30 marks)
„h This section consists of multiples choice and short notes type questions ƒn
ƒn
„h Part one carries 1 mark each & part two carries 5 marks each. ƒn
„h Attempt all questions ƒn
Part One Multiple Choices:
1. A plan is a trap laid to capture the ________
a. Future
b. Past
c. Policy
d. Procedure
2. Which of the following is the function for employing suitable person for the enterprise?
a. Organizing
b. Staffing
c. Directing
d. Controlling
3. ___________ means ¡§ group of activities & employees into departments¡¨:
a. Orientation
b. Standardization
c. Process
d. Departmentation
4. This theory states that authority is the power that is accepted by others:
a. Acceptance theory
b. Competence theory
c. Formal authority theory
d. Informal authority theory
5. Which of the following means dispersal of decision-making power to the lower levels of the organization?
a. Decentralization
b. Centralization
c. Dispersion
d. Delegation
6. This chart is the basic document of the organizational structure:
a. Functional chart
b. Posts chart
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c. Master chart
d. Departmental chart
7. Communication which flow from the superiors to subordinates with the help of scalar chain is known as:
a. Informal communication
b. Downward communication
c. Upward communication
d. Oral communication
8. Needs for belongingness, friendship, love, affection, attention & social acceptance are comes under___________
a. Physiological needs
b. Safety needs
c. Ego needs
d. Social needs
9. A management function which ensures ¡§jobs to be filled with the right people, with the right knowledge, skill & attitude¡¨ is comes under__________
a. Staffing defined
b. Job analysis
c. Manpower planning
d. Recruitment
10. It is a process that enables a person to sort out issues and reach to a decisions affecting their life:
a. Selection
b. Raining
c. Reward
d. Counseling
Part Two:-
1. What do you understand by Maslow.s Theory of Motivation?
2. Define Management By Objective.
3. Differentiate between co- ordination and co-operation.
4. Write a short note on .Acceptance theory..
END OF SECTION A
Section B: Caselets (40 marks)
„h This section consists of Caselets. ƒn
ƒn
„h Answer all the questions. ƒn
„h Each Caselet carries 20 marks. ƒn
„h Detailed information should form the part of your answer (Word limit 150-200 words).
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Caselet 1 Mr. Vincent, the Manager of a large supermarket, was taking a management course in the evening programme at the local college. The Professor had given an interesting but disturbing lecture the previous night on the various approaches to management. Vincent had always thought that management involved just planning, organizing and controlling. Now this Professor was saying that management could also be thought of as quantitative models, systems theory and analysis, and even something called contingency relationships. Vincent had always considered himself a good manager, and his record with the supermarket chain had proved it. He thought of himself, ¡§I have never used operations research models, thought of my store as an open system, or developed or utilized any contingency relationship. By doing a little planning ahead, organizing the store, and making some things got done, I have been a successful manager. That other stuff just does not make sense. All the professor was trying to do was complicate things. I guess I will have to know it for the test, but I am sticking with my old plan, organize and control approach to managing my store.¡¨ Questions:
1. Critically analyze Mr. Vincent.s reasoning.
2. If you were the professor and you knew what was going through Vincent.s mind, what would you say to Vincent?
Caselet 2 The Regional Administration Office of a company was hastily set up. Victor D.Cuhna a young executive was directly recruited to take charge of Data Processing Cell of this office. The data processing was to help the administrative office in planning and monitoring. The officer cadre of the administrative office was a mix of directly recruited officers and promote officers (promotion from within the organization). Females dominated the junior clerical cadre. This cadre was not formally trained. The administrative office had decided to give these fresh recruits on-the-job training because when results were not upto the expectations blame was brought on the Data Processing Cell. Victor D.Cuhna realized that the administrative office was heading for trouble. He knew that his task would not be easy and that he had been selected because of his experience, background and abilities. He also realized that certain functional aspects of the administrative office were not clearly understood by various functionaries, and systems and procedures were blindly and randomly followed. Feedback was random, scanty and controversial, and Data Processing Cell had to verify every item of feedback. Delays were inevitable. D.Cuhna sought the permission of senior management to conduct a seminar on communication and feedback of which he was an expert. The permission was grudgingly given by the senior management. Everyone appreciated the seminar. Following the first seminar, D.Cuhna conducted a one week training course for the clerical cadre, especially for the junior, freshly recruited clerks. Amongst other
topics, D.Cuhna laid emphasis onfiling system, information tracking, communication, and feedback. This helped reorient attitudes to some extent. But the female clerks preferred to ignore the theme and widely circulated the belief that D.Cuhna was an upstart and a show off. Within a short time, considerable friction had been generated in the administrative office While directly recruited officers supported D.Cuhna.s initiative and the specialist officers admired him, senior management became cautious and uncomfortable. The junior promotee officers were prejudiced against him. The grand finale followed swiftly. D.Cuhna happened to get annoyed with a female clerk. During the absence of her officer, who was on sick leave and had not been substituted by another officer, she began submitting nil returns. D.Cuhna took pains to explain to her that for certain topics a nil feedback was
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not tenable. The current status had to be reported¡X the stage at which the matter was pending, what had been done, and what would be done about it? The lady reported that it was none of his business to tell her this. He should talk to her officer when the officer reports back from leave. D.Cuhna said he would, but in the meanwhile she should present the correct picture. When D.Cuhna called for the files, she refused to part with them. D.Cuhna fired her and reported the situation to the Chief Regional Manager. The other ladies were up in the arms against D.Cuhna. The lady also complained to higher management that D.Cuhna had made passes at her. Other ladies supported her complaint. She also complained that D.Cuhna had no business to scold her. D.Cuhna countered that had there been a male clerk in her place he would have scolded him too. When females enjoyed equal rights with males, D.Cuhna felt he must remain impartial. Nevertheless, D.Cuhna was transferred to another place. The transfer to another place, rather than to another department in same place, was particularly humiliating to him. A shocked and disillusioned D.Cuhna quit the enterprise Questions:
1. Diagnose the problem and enumerate the reasons for the failure of D.Cuhna?
2. What could D.Cuhna have done to avoid the situation in which he found himself?
END OF SECTION B
Section C: Applied Theory (30 marks)
„h This section consists of Applied Theory Questions. ƒn
„h Answer all the questions. ƒn
„h Each question carries 15 marks. ƒn
„h Detailed information should form the part of your answer (Word limit 200-250 words).
ƒnƒn
1. What are the common drawbacks in classical and Neo classical theories of management?
2. What is Training? Explain the different methods of training.
END OF SECTION C S-2-250613