Sunday, 3 April 2022

HUMAN RESOURCE MANAGEMENT - IIBM MBA EXAM ANSWER - WHATSAPP 91 9924764558

HUMAN RESOURCE MANAGEMENT - IIBM MBA EXAM ANSWER - WHATSAPP 91 9924764558

 Examination Paper of Human Resource Management

IIBM Institute of Business Management

Examination Paper MM.100

Human Resource Development & Training

Section A: Objective Type & Short Questions (30 marks)

 This section consists of Multiple Choi  ces and Short Notes Type Questions. 

 Answer all the questions. 

 Part one carries 1 mark each & Part Two carries 5 marks each. 

Part One:

Multiple choices:

1. HRD is the process of helping people to acquire________

a. Competition

b. Completeness

c. Competencies

d. None of the above

2. Techniques of human resource development are also called_______

a. HRD Methods

b. HRD Instruments

c. HRD Mechanism

d. All of above

3. In India HRD began only in______

a. 1970s

b. 1980s

c. 1910s

d. 1990s

4. BARS Stand for______

a. Behaviorally Anchored Rating Scale

b. Behaviorally Anchoring Rating Scale

c. Behaviorally Appraisal Rating Scale

d. None of the above

5. Levels of evaluations of Training programme are:

a. 7

b. 6

c. 5

d. 10

6. Performance appraisal in a _________process of identifying, planning, developing

employee Performance.

a. Multi-Stages

b. Single-Stages

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

c. Dual-Stages

d. All of the above

7. Halo effect is the tendency to the judge all aspects of a________

a. Person’s behaviour

b. Perspective behaviour

c. Performance appraisal

d. All of the above

8. QWL Stand for_______

a. Quality of work life

b. Quality of worker life

c. Quantity of work life

d. None of the above

9. 360- degree feedback can be used s a tool for performance_______

a. Appraisal

b. Analyze

c. Assessment

d. None of the above

10. Career planning is a _______that constitute what a person does for a living.

a. Sequence of career

b. Sequence of jobs

c. Sequence of sum

d. None of the above

Part Two:

1. Discuss the various methods of Appraisal?

2. Briefly explain ‘On the job and Off the job’ methods of Training and Development.

3. Explain the objectives of ‘Performance Appraisal’.

4. Differentiate between HRM and HRD concept.

END OF SECTION A

Section B: Case lets (40 marks)

 This section consists of caselets. 

 Answer all the questions. 

 Each Caselets carries 20 marks. 

 Detailed information should from the part of your answer ( Word limit 150 to 200 words.) 

Case let 1

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

Introduction to the Organization:

XYZ Company was established 20 years ago, to manufacture gearbox components for diesel engines.

It employs around 250 people, having a head office, which employs a wide range of personnel who

are generally well educated and enthusiastic about their work, and a factory, which employs semiskilled

local people who are generally disinterested in the products of the company and who have an

instrumental attitude to work, seeing salary as the only reward.

Brief Description of the Problem:

The performance of the company has not been good and the records revealed the following facts:

  Wastage within the factory was costing the company approximately Rs.100,000 a month. 

  There was wide spread differences in individual work standards. 

  Processes were non-standardized resulting in repeated problems. 

 Management made all decisions and cascaded the results down to employees. 

 The top management become concerned about the performance of the factory and they hired.

Mr. Tanmoy Deb, an OD consultant to study the problem and suggest specific changes to

 relationship and tasks with the following objectives: 

  To review and improve communication systems. 

  To restructure the organization and to review teamwork and quality practices. 

 To review leadership issues across all levels. 

Mr. Tanmoy Deb carried out discussions, interviews and surveys and made the following

 observation: 

  There’ and ‘us’ attitude was widely prevalent between head office and factory personnel. 

  Production personnel lacked technical skills. 

  Factory employees felt alienated from sharing the Company’s success. 

  Production systems were adhoc and defective because of frequent variation in standards set. 

  Many times raw material was found to be of inferior quality. 

 Rigidly defined job descriptions. 

Questions:

1. What in your view are the central human resource issues involved in this case?

2. What Strategy should Mr. Tanmoy Deb develop and implement for improving the present system?

Case let 2

Introduction to the Organization:

XYZ Company is an existing profit making FMCG Company. The company has 600 personnel and

has branches all other the country. It has a separate training department with a Training Manager, Mr.

A.P. Mohan as its head who is supported by two qualified training officers. Mr. Mohan has been in

the company for the last 8 years and is very efficient.

Brief Description of the problem:

Mr. Mohan wants to have the organization. He is fed up with organization politics. He is dissatisfied and

in fact frustrated. There are several reasons attachment to it. First and foremost is that he is not paid

adequately despite the fact that he has brought 12% growth in revenue to the company. Second reason is

that he is not consulted and constantly neglected while making decision on training aspects. Lastly, he

considers himself to be a victim of politics played in the organization. Production Manager

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

is constantly hurting him and interferes with the work. Dr. Ashok Sarao, boss of Mr. A.P. Mohan does

not want him to leave the organization, as he known that the effectively will come down if he leaves

Dr. Ashok tries to convince Mohan that he should adjust himself with the environment and also talk of

how Mohan is constantly neglected. He talks of how politics is played in the organization and

strengths and weaknesses of Mohan but does nothing to convince Mohan. Rather he says that they

have to adjust, as they are part of family run business. In this setting, personal equation rather than

merit works. Mohan is not convinced and says he is leaving.

Questions:

1. Why a high performer like Mr. Mohan decided to leave the organization he has been long part of?

2. Do you think Mr. A.P. Mohan took the right decision to leave the organization? What would you

have done if you were in his shoes?

END OF SECTION B

Section C: Applied Theory (30 marks)

 This section consists of Applied Theory Questions. 

 Answer all the questions. 

 Each questions carry 15 marks. 

 Detailed information should from the part of your answer (Word limit 200 to 250 words). 

1. What do you mean by Quality of Work Life? Discuss the various techniques for improving

the Quality of work life with the principles of QWL?

2. Discuss the basic concepts of management development. What is the important of

management development in the changing business?

END OF SECTION C

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

IIBM Institute of Business Management

Examination Paper MM.100

Industrial Relations & Labour Laws

Section A: Objective Type & Short Questions (30 marks)

 This section consists of Multiple choices a  nd Short Notes type questions. 

 Answer all the questions. 

 Part one carries 1 mark each & Part Two carries 5 marks each. 

Part One:

Multiple choices:

1. Workers participation in management decision-making is a highly________ concept.

a. Duplex

b. Complex

c. Simplex

d. None of the above

2. The origin of industrial relations in India can be traced in to the:

a. Second world war

b. First world war

c. Third world war

d. British rule

3. Under the payment of wages act, 1936, no wages period shall exceed for one.

a. Four month

b. Two month

c. One month

d. None of the above

4. Collective bargaining is the process of bargaining between________

a. employees & employer

b. workers & workers

c. employees & employees

d. None of the above

5. Layoff can also cause a ________

a. Retirement

b. Grievance

c. Conflict

d. None of the above

6. As per payment of bonus act, accounting year for a company is ________

a. One year

b. Period for which balance sheet is prepared

c. Period for which cash flow is prepared

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

d. Period for which profit and loss account is prepared

7. WPM stands for_________

a. Workers’ Participation in Management

b. Workers’ Payment of Management

c. Well fare Payment of Management

d. None of the above

8. Causes of Industrial disputes are_________

a. Economic causes

b. Political causes

c. Technological causes

d. All of the above

9. Trade unions of workers in an organization formed by workers to protect their________

a. Working condition

b. Interest

c. Both a & b

d. None of the above

10. A grievance causes in any organization are_________

a. Work environment

b. Supervision

c. Work group

d. All of the above

Part two:

1. What are the steps of Grievances handling Process? Explain it.

2. What are the objectives of ‘Industrial Relations’?

3. Briefly explain the term ‘evolution of Trade unions in India’.

4. Explain the ‘workers’ participation in management’.

END OF SECTION A

Section B: Case lets (40 marks)

 This section consists of Caselets. 

 Answer all the questions. 

 Each Caselet carries 20 marks. 

 Detailed information should form the part of your answer (Word limit 150 to 200 words). 

Case let 1

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

Star Automobiles Ltd. Pimpary is in the field of manufacturing of two wheelers. They manufacture and

market mopeds. These are available in the brand names ‘arrow’ and ‘double arrow’ where ‘arrow’ is

their traditional product and ‘double arrow’ is the improved version. The company was started about 20

yrs ago. Their product ‘arrow’ enjoys a reasonably good reputation and they were comfortable in the

market. However, with the entry of the new generation of fuel-efficient mopeds the company started

loosing its market. They immediately started developing the improved ‘double arrow’ but by the time

they came out with this new model the competitors had already strengthened their position in the

market. The arrow model was still acceptable by a segment of the market as it was cheapest vehicle.

‘Double arrow’ is new generation vehicle. It was costlier than Jet but its performance was much

superior. It is compared favorably with the competitors’ products; however it was yet to gain a foot hold

in the market.

The company had to refurbish the marketing activities in order to get back their market share. They

employed young sales engineer to launch a strong sales drive. Mr. Ramesh Tiwari, Btech and a diploma

holder in marketing got selected and was put on the job. Mr. Ramesh Tiwari started well in his new job.

He was given a territory to contact the prospective customers’ and to book the orders. The company had

introduced a new financial assistance scheme. Under this scheme, buyers were given easy loans. It was

particularly advantageous for group booking by employees working in an organization. Mr. Ramesh

Tiwari was able to contact people in different organization, arrange for group bookings and facilitate

the loans. His performance was good in the first year and in the second year of his service. The

company had its own system of rewarding those whose performance happened to be good. They usually

arranged a paid holiday trip for the good performer along with his wife. Mr. Ramesh Tiwari was

accordingly informed by the marketing manager to go to Chennai with his wife on company expenses.

Mr. Ramesh Tiwari asked him as to how much it would cost to the company. The marketing manager

calculated and told him that it would cost about 8000/-. He quickly asked him whether he could get that

8000/- in cash instead of the trip as he had better plans. The marketing manager countered this saying

that it might not be possible to doso. It was not the trading of the company, however he would check

with the personnel manager. After a couple of days, Mr. Tiwari was informed that it would not be

possible to give him a cash reward. Mr. Tiwari grudgingly went for the trip and returned. On his return,

he was heard complaining to one of his colleagues his little daughter was also along with him. The

marketing manager and the personnel manager thought he was a bit too fusy about the money and some

of his colleagues also thought so. During the subsequent days Mr. Ramesh Tiwari’s performance was

not all that satisfactory this showed his lukewarm attitude towards his job and the subordinates.

Questions:

1. Did the personnel manager handle the issue properly?

2. What is your recommendation to avoid such situations in future?

Case let 2

In 1950, with the enactment of the Insurance Act, Government of India decided to bring all the

insurance companies under one umbrella of the Life Insurance Corporation of India (LIC). Despite the

monopoly of LIC, the insurance sector was not doing well. Till 1995, only 12% of the country’s people

had insurance cover. The need for exploring the insurance market was felt and consequently the

Government of India set up the Malhotra Committee. On the basis of their recommendation, Insurance

Development and Regulatory Authority (IRDA) Act was passed in parliament in 2000. This moved

allowed the private insurers in the market with the strong foreign partners with 74:26% stakes. XYZMoon

life was one of the first three private players getting the license to operate in India in the year

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

2000. XYZ Moon life Insurance was a joint venture between the XYZ Group and Moon Inc. of US.

XYZ started off its operations in 1965, providing finance for industrial development and since then it

had diversified in to housing finance, consumer finance, mutual funds and now its latest venture was

Life Insurance. Its foreign partner Moon Inc. had its presence in Asia since the past 75 years catering to

over 1 million customers across 11Asian countries. Within a span of two years, twelve private players

obtained the license from IRDA.IRDA had provided certain base policies like, Endowment Policies,

Money back Policies, Retirement Policies, Team Policies, Whole Life Policies, and Health Policies.

They were free to customize their products by adding on the riders. In the year 2003, the company

becomes one of the market leaders amongst the private players. Till 2003, total market share of private

insurers was about 4%, but Moon Life was performing well and had the market share of about 30% of

the private insurance business. In June 2002, XYZ Moon Life started its operations at Nagpur with one

Sales Manager(SM) and ten Development Officers (DO). The role of a DO was to recruit the agents and

sell a career to those who have an inclination towards insurance and could work either on part time or

full time basis. They were very specific in recruiting the agents, because their contribution directly

reflected their performance. All DOs faced three challenges such as Case Rate (number of policies),

case size (amount of premium), and recruitment of advisors by natural market, personal observations,

nominators, and centre of influence. Incentive of offered by the company to development officers and

agents were based on their performance, which resulted in to internal competition and finally converted

into rivalry. In August 2002, a branch manager joined along with one more sales manager and ten

development officers. Initially, the branch was performing well and was able to build their image in the

local market. As the industry was dynamic in nature, there were frequent opportunities bubbling in the

market. In order to capitalize the outside opportunities, one sales manager left the organization in

January 2003. As the sales manager was a real performer, he was able to convince all the good

performers at XYZ Moon Life Insurance to join the new company. In april 2004, the company faceda

grave problem, when the Branch Manager left the organization for greener pastures. To fill the position,

in May 2004, the company appointed a new branch manager, Shashank Malik, and a sales manager,

Rohit pandey. The branch manager in his early mthirties had an experience of sales and training of

about 12 years and was looking after two branches i.e., Nagpur and Nasik. Malik was given one

Assistant Manager and 25 Development Officers. Out of that, ten were reporting to him. He was given

the responsibility of handling all the operations and the authority to make all the decisions, while

informing the Branch Manager. Malik opined that the insurance industry is a sunrise industry where

manpower plays an important role as the business is based on relationship. He wanted to encourage

one-to-one interaction, transparency and discipline in his organization. While managing his team, he

wanted his co-workers to analyze themselves i.e., to understand their own strengths and weaknesses. He

wanted them to be result-oriented and was willing to extend his full support. Finally, he wanted to

introduce weekly analysis in his game plan along with inflow of new blood in his organization. Using

his vast experience, he began informal interactions among the employees, by organizing outings and

parties, to inculcate the feelings of friendliness and belonging. He wanted to increase the commitment

level and integrity of his young dynamic team by facilitating proper channelization of their energy. He

believed that proper training could give his team a proper understanding of the business and the

dynamics of insurance industry.

Questions:

1. If you were Malik, what strategies would you adopt to solve the problem?

2. With high employee turnover in insurance industry, how can the company retain a person like Malik?

END F SECTION B

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IIBM Institute of Business Management

Examination Paper of Human Resource Management

Section C: Applied Theory (30 marks)

 This section consists o  f Applied Theory Questions. 

 Answer all the questions. 

 Each question carries 15 marks. 

 Detailed information should form the part of your answer (Word limit 200 to 250 words). 

1. What is the Collective Bargaining? Explain the Characteristics and types of Collective

Bargaining and write down the different levels of Collective Bargaining?

2. Discuss the wage policy in India with reference to detailed evaluation of the act.

END F SECTION C

S-2-300813

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IIBM Institute of Business Management

MANAGERIAL ECONOMICS - IIBM MBA EXAM ANSWER - WHATSAPP 91 9924764558

 MANAGERIAL ECONOMICS - IIBM MBA EXAM ANSWER - WHATSAPP 91 9924764558

Examination Paper of Managerial Economics

IIBM Institute of Business Management

IIBM Institute of Business Management

Subject Code-B106

Examination Paper

Managerial Economics

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

I.Demand is determined by

(1)

a) Price of the product

b) Relative prices of other goods

c) Tastes and habits

d) All of the above

II. When a firm’s average revenue is equal to its average cost, it gets (1)

a) Super profit

b) Normal profit

c) Sub normal profit

d) None of the above

III. Managerial economics generally refers to the integration of economic theory with business

(1)

a) Ethics

b) Management

c) Practice

d) All of the above

IV. Which of the following was not immediate cause of 1991 economic crisis (1)

a) Rapid growth of population

b) Severe inflation

c) Expanding Fiscal deficit

d) Rising current account deficit

V.Money functions refers to : (1)

a) Store of value

b) Medium of Exchange

c) Standard of deferred payments

d) All of the above VI. Given the price, if the cost of production increases because of higher price of raw materials, the supply (1) a) Decreases b) Increases c) Remains same d) Any of the above

 This section consists of multiple choices and Short Notes type questions.

 Answer all the questions.

 Part one questions carry 1 mark each & Part two questions carry 5 marks each.

Examination Paper of Managerial Economics

IIBM Institute of Business Management

VII. Total Utility is maximum when (1)

a. Marginal Utility is maximum

b. Marginal Utility is Zero

c. Both of the above

d. None Of The Above

VIII. Cardinal approach is related to (1)

a. Equimarginal Curve

b. Law of diminishing returns

c. Indifference Curve

d. All of the above

IX. Marginal Utility curve of a consumer is also his (1)

a) Supply Curve

b) Demand Curve

c) Both of above

d) None of above

X. Government of India has replaced FERA by (1)

a) The competition Act

b) FRBMA

c) MRTP Act

d) FEMA

Part Two:

1. What is Managerial Economics? What is its relevance to Engineers/Managers? (5)

2. “Managerial Economics is economics that is applied in decision making” Explain? (5)

3. Differentiate b/w, Micro economics vs. macroeconomics? (5)

4. Factors Affecting Price Elasticity of Demand? (5)

Section B: Caselets (40 marks)

END OF SECTION A

 This section consists of Caselets.

 Answer all the questions.

 Each Caselet carries 20marks.

 Detailed information should form the part of your answer (Word limit 150 to 200 words).

IIBM Institute of Business Management

Examination Paper of Managerial Economics

Caselet1

Dabur is among the top five FMCG companies in India and is positioned successfully on the specialist herbal platform. Dabur has proven its expertise in the fields of health care, personal care, home care and foods. The company was founded by Dr. S. K. Burman in 1884 as small pharmacy in Calcutta (now Kolkata), India. And is now led by his great grandson Vivek C. Burman, who is the Chairman of Dabur India Limited and the senior most representative of the Burman family in the company. The company headquarter is in Ghaziabad, India, near the Indian capital New Delhi, where it is registered. The company has over 12 manufacturing units in India and abroad. The international facilities are located in Nepal, Dubai, Bangladesh, Egypt and Nigeria. S.K. Burman, the founder of Dabur, was trained as a physician. His mission was to provide effective and affordable cure for ordinary people in far-flung villages. Soon, he started preparing natural remedies based on Ayurveda for diseases such as Cholera, Plague and Malaria. Due to his cheap and effective remedies, he became to be known as ‘Daktar’ (Indian izedversion of ‘doctor’). And that is how his venture Dabur got its name—derived from Daktar Burman. The company faces stiff competition from many multinational and domestic companies. In the Branded and Packaged Food and Beverages segment major companies that are active include Hindustan Lever, Nestle, Cadbury and Dabur. In case of Ayurvedic medicines and products, the major competitors are Baidyanath, Vicco, Jhandu, Himani and other pharmaceutical companies.

Vision statement of Dabur says that the company is “dedicated to the health and wellbeing of every household”. The objective is to “significantly accelerate profitable growth by providing comfort to others”. For achieving this objective Dabur aims to:

 Focus on growing core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.

 Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesizing deep knowledge of Ayurveda and herbs with modern science.

 Be a professionally managed employer of choice, attracting, developing and retaining quality personnel.

 Be responsible citizen with a commitment to environmental protection.

 Provide superior returns, relative to our peer group, to our shareholders.

Chairman of the company

Vivek C. Burman joined Dabur in 1954 after completing his graduation in Business Administration from the USA. In 1986 he was appointed as the Managing Director of Dabur and in 1998 he took over as Chairman of the Company.

IIBM Institute of Business Management

Examination Paper of Managerial Economics

Under Vivek Burman’s leadership, Dabur has grown and evolved as a multi-crore business house with a diverse product portfolio and a marketing network that traverses the whole of India and more than 50 countries across the world. As a strong and positive leader, Vivek C. Burman had motivated employees of Dabur to “do better than their best”—a credo that gives Dabur its status as India’s most trusted nature-based products company.

Leading brands

More than 300 diverse products in the FMCG, Healthcare and Ayurveda segments are in the product line of Dabur. List of products of the company include very successful brands like Vatika, Anmol, Hajmola, Dabur Amla Chyawanprash, Dabur Honey and Lal Dant Manjan with turnover of Rs.100 crores each.

Strategic positioning of Dabur Honey as food product, lead to market leadership with over 40% market share in branded honey market; Dabur Chyawanprash is the largest selling Ayurvedic medicine with over 65% market share. Dabur is a leader in herbal digestives with 90% market share. Hajmola tablets are in command with 75% market share of digestive tablets category. Dabur Lal Tail tops baby massage oil market with 35% of total share.

CHD (Consumer Health Division), dealing with classical Ayurvedic medicines, has more than 250 products sold through prescription as well as over the counter. Proprietary Ayurvedic medicines developed by Dabur include Nature Care Isabgol, Madhuvaani and Trifgol.

However, some of the subsidiary units of Dabur have proved to be low margin business; like Dabur Finance Limited. The international units are also operating on low profit margin. The company also produces several “me – too” products. At the same time the company is very popular in the rural segment.

Questions

1. What is the objective of Dabur? Is it profit maximisation of growth maximisation? (10)

2. Do you think the growth of Dabur from a small pharmacy to a large multinational company is an indicator of the advantages of joint stock company against the proprietorship form? Elaborate. (10)

Caselet2

The Regina Company„ one of the largest inakets of vacuum cleaners recent') had scv cfc ptollkins with the quality of its products. The market responsc to this 1ak of quality caused financial problems for Ow company. in late 1995. Regina began having return rates as high as 30 to 50 percent on some of its Housekeeper and Housekeeper Plus models. These models were sold primarily through discount stores. Further, Regina's Spectrum vacuum cleaner, an upgraded version sold in specialty stores, was introduced in 1995 with many quality problems. ef The specific problems identified for the Housekeeper and Housekeeper Plus models were associated with faulty belts and weak suction. In the Spectrum model, the agitator was melting; and making a loud noise, the foot pedals were breaking, and the steel-encased motor (which had been advertised as the

IIBM Institute of Business Management

Examination Paper of Managerial Economics

power source for the vacuum cleaner) had been replaced with a less desirable. less reliable motor.

As a result of these problems, Target stores discontinued Regina's Housekeeper Plus model after reporting that "at least half of those sold were returned." At Starmart, which accounts for about a quarter of the Housekeeper sales, I. out of every 5 machines sold was returned. To help service customer complaints, Regina set up an 800 telephone number for customers to contact the firm. directly. The sales returns caused Regina's shareholders to question the 1995 fiscal earnings report. Furthermore, both inventories and accounts receivable doubled during the 1995 fiscal year. At the end of that period, Regina's chairman and 40 percent stockholders

Resigned. The chairman’s resignation was closely followed by a company announcement stating that the financial results reported for the 1995 fiscal year were materially incorrect and had been withdrawn. This announcement brought a suit from shareholders who had bought Reoina stock on the basis of the 1995 camings report. It also prompted an audit of the 1995 results and a request to another accounting organization to work on Regina's business and accounting controls. A few months later, Regina 'agreed to be acquired by a unit of Magnum, a vacuum cleaner and Water-purification Company. Under Magnum, Regina shut down production while engineers worked to solve the problems inherent in the Housekeeper and Housekeeper Plus vacuums, particularly the suction difficulties. In September 1998, Magnum and Regina decided to separate the two companies again. Since then, Regina has been regaining market share with its Housekeeper models. The 'vacuums are popular because they carry on-board tools.

Questions:

1. What type of controls would you have established to preclude the major returns experienced by Regina? (10)

2. How would you have controlled the finished-goods -inventory to avoid its growing to twice the size that it was in the previous year. (10)

Section C: Applied Theory (30 marks)

1. What is the importance of demand analysis in business decision? (15)

2. Explain individual demand function and market demand function. (15)

S-2-010619

 This section consists of Applied Theory Questions.

 Answer all the questions.

 Each question carries 15marks.

 Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

END OF SECTION B

COMPUTER FUNDAMENTAL - IIBM MBA EXAM ANSWER - WHATSAPP 91 9924764558

 COMPUTER FUNDAMENTAL - IIBM MBA EXAM ANSWER - WHATSAPP 91 9924764558

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

• This section consists of multiple choices and Short Notes type questions.

• Answer all the questions.

• Part one questions carry 1 mark each & Part two questions carry 5 marks each.

IIBM Institute of Business Management

Subject Code-B112

Examination Paper

Computer Fundamental

MM.100

Section A: Objective Type & Short Questions (30 marks)

Part one:

Multiple choice:

I.A Light Sensitive device that converts drawing, printed text or other image into digital from is (1)

a) Keyboard

b) Plotter

c) Scanner

d) OMR

II. The basic operations performed by a computer are (1)

e) Arithmetic operation

f) Logical operation

g) Storage and relative operation

h) All the above l

III. The two major types of computer chips are (1)

a. External memory chip

b. Primary memory chip

c. Microprocessor chip

d. Both b and c

IV. Microprocessors as switching devices are for which generation computers (1)

a. First Generation

b. Second Generation

c. Third Generation

d. Fourth Generation

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

END OF SECTION A

V.What is the main difference between a mainframe and a super computer?

a. A Super computer is much larger than the mainframe computers.

b. Super computers are smaller than the mainframe computers.

c. Supercomputers are focused to execute few programs as fast as possible while mainframe computers use its power to execute as many programs concurrently.

d. Supercomputers are focused to execute as many programs as possible while mainframe

VI. ASCII and EBCDIC are the popular character coding systems. What does EBCDIC stand for?

a) Extended Binary Coded Decimal Interchange Code

b) Extended Bit Code Decimal Interchange Code

c) Extended Bit Case Decimal Interchange Code

d) Extended Binary Case Decimal Interchange Code

VII. The brain of any computer system is

a) ALU

b) Memory

c) CPU

d) Control unit

VIII. Storage capacity of magnetic disk depends on

a) tracks per inch of surface

b) bits per inch of tracks

c) disk pack in disk surface

d) All of above

IX. The two kinds of main memory are:

a) Primary and secondary

b) Random and sequential

c) ROM and RAM

d) All of above

X. A storage area used to store data to a compensate for the difference in speed at which the different units can handle data is

a) Memory

b) Buffer

c) Accumulator

d) Address

Part Two:

1. What is Windows? (5)

2. What is Windows? (5)

3. What is Computer Virus? (5)

4. What is the meaning of ‘CC’ in case of E-mail? (5)

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

• This section consists of Caselets.

• Answer all the questions.

• Each Caselet carries 20 marks.

• Detailed information should form the part of your answer (Word limit 150 to 200 words).

Section B: Caselets (40 marks)

Caselet 1

Mr. and Mrs. Sharma went to Woodlands Apparel to buy a shirt. Mr. Sharma did not read the price tag on the piece selected by him. At the counter, while making the payment he asked for the price. Rs. 950 was the answer.

Meanwhile, Mrs. Sharma, who was still shopping came back and joined her husband. She was glad that he had selected a nice black shirt for himself. She pointed out that there was a 25% discount on that item. The counter person nodded in agreement.

Mr. Sharma was thrilled to hear that “It means the price of this shirt is just Rs. 712. That‟s fantastic”, said Mr. Sharma. He decided to buy one more shirt in blue color.In no time, he returned with the second shirt and asked them to be packed. When he received the cash memo for payment, he was astonished to find that he had to pay Rs.. 1,900 and Rs.1,424.

Mr. Sharma could hardly reconcile himself to the fact that the counter person had quoted the discounted price which was Rs. 950. The original price printed on the price tag was Rs.1,266.

Questions

1. What should Mr. Sharma have done to avoid them is understanding? (10)

2. Discuss the main features involved in this case. (10)

Caselet 2

I don’t want to speak to you. Connect me to your boss in the USA,” hissed the Alfred is a do-it yourself entrepreneur who built up his fortune in trading. He traded in anything and everything and kept close control of every activity. That was now he had grown rich enough to indulge in his own dream-to build a college in his home town. A college that would be at par to the ones in the better cities, the one in which he could not study himself.

Work started a year hack and the buildings were coming along well He himself did not use computers much and became hooked to the Internet and e-mail only recently. He was determined to provide a PC with Internet connectivity to every students and faculty member. He was currently engrossed in plans for the 100 seater computer lab.

What was confusing him was the choice of Internet connectivity. He had about a dozen quotations in front of him, Recommendations ranged from 64 Kbps ISDN all the way to 1 Gbps leased line to Guwahati which was almost 200 kms away. Prices ranged from slightly under a lakh all the way upto 25 lakh and beyond. He did not understand most of the equipment quoted firewall, proxy server, cache appliance, nor was he sure what the hidden cost were. Although it went against his very nature, he would have to identify a trustworthy consultant who would help him make sense of the whole thing.

Examination Paper of Computer Fundamental

IIBM Institute of Business Management

END OF SECTION B

• This section consists of Applied Theory Questions.

• Answer all the questions.

• Each question carries 15marks.

• Detailed information should form the part of your answer (Word limit 200 to 250 words).

END OF SECTION C

Questions

1. In the context of the given case, what managerial issues need to be addressed by Alfred. Why is It Important for managers to be tech savvy? (10)

2. What is the importance of a 'Systems consultant' to an organization? What skills should he/she possess? (10)

Section C: Applied Theory (30 marks)

1. What are Web sites & URL(s)? (15)

2. Explain how data is organized on a magnetic tape? (15)

S-2-010619

INTERNATIONAL HUMAN RESOURCE MANAGEMENT - XIBMS EXAM ANSWER - WHATSAPP 91 9924764558

 INTERNATIONAL HUMAN RESOURCE MANAGEMENT - XIBMS EXAM ANSWER - WHATSAPP 91 9924764558

International Human Resource Management

Total Marks: 80

Instructions:

1. Attempt all questions. 

2. Make suitable assumptions wherever necessary.

3. Figures to the right indicate full marks.

 

 

 

Q.1   Case Study: 

WHOM DO YOU SATISFY?  EXPATRIATE OR NATIONALS

Hi-Tech Electronics Limited was established in 2006 in Kualalampur, Malaysia. It produces and markets all types of electronics goods in most of the Asian and Pacific countries. It has been one among the top five companies as for the level of technology and one among the top three

Companies regarding marketing of the products in Malaysia. The company’s policy and practices concerning human resource management are top in the country. The company’s salary administration policies and practices were taken as guidelines not only by the other companies but

Also by various wage boards and pay commissions in the country. But this company has been struggling a lot because of a minor problem relating to administration of salary and benefits. The problem is stated hereunder.

 The company employed nearly 400 national young graduate and post graduate engineers and 20 expatriate engineers. This employees form the cream of the company’s present human resource. The expatriate employees occupied higher position in all the departments including Human Resource Department. The company’s salary policy and benefit policy were formulated mainly on the basis of the expatriate employee’s desire.  The base salary of the company is the same for both the expatriate and national employees. But expatriate receive additional allowances like international market allowance, educational allowance, settling-in allowance, car allowance, housing allowance and entertainment allowance. Thus, expatriate receives nearly 250% more salary than the nationals doing the same job.

 The national employees demanded the management to pay equally with that of expatriates immediately. According to them, the pocket frustrates them severely. 

(a) What is the crucial issue in this case? 

(b) If you were the HR manager of the company, whom do you satisfy? 

Q.2 (a) Explain stages of internationalization of firm and how does each stage affect the HR function?  

(b) What are main characteristics of the four approaches to international Staffing?  

OR 

(b) Explain the strength and weaknesses of workforce diversity with relevant examples.

 

Q.3 (a) Explain career cycle for expatriates and the factors that contribute for expatriate’s success.

(b) What are the objectives of international compensation management? 

OR 

Q.3 (a) what are the factors contributing to Expatriate’s Failure?

(b) What is global training? Explain in brief different areas of global training and development. 10

 

Q.4 (a) what is glass-ceiling? Why does it take place for women employees and employees belonging to minority groups?  

(b) How domestic HRM does differ from global HRM? 

OR

Q.4 (a) what are the factors affecting standardization of work practices? 

(b)   What are the significant shifts in HRM practices in recent time?  

 

Q.5 (a) what are the challenges of performance appraisal in international human resource management?

(b) In what ways trade union influence the HRM functions of multinationals?

OR

Q.5 (a) what is participative management? Discuss the practices of participative management in different countries. 

(b) How do you make the performance management in multinationals effective?  

 

PSYCHOLOGY - XIBMS EXAM ANSWER - WHATSAPP 91 9924764558

 PSYCHOLOGY - XIBMS EXAM ANSWER - WHATSAPP 91 9924764558

logo

Xaviers Institute of Business Management Studies

 

Psychology

 

 

Marks: 80 Marks

 

 

SECTION A — (4 × 5 = 20 marks)

Answer any Four of the following.

1. Discuss the merits and limitations of naturalistic observation.

2. Discuss the functions of endocrine system.

3. Discuss the role of constancy in perception.

4. Explain the types of memory.

5. Explain the role of reward and punishment in learning.

6. Define stress and its reaction to stress.

7. What are the factors influencing the severity of stress?

8. Explain proactive and retroactive interference.

 

 

SECTION B — (4 × 15 = 60 marks)

Answer any FOUR questions.

9. Discuss about the various schools of psychology.

10. Explain the principles of classical conditioning in detail.

11. Evaluate the various techniques of assessing personality.

12. Explain the trait that characterizes a creative person.

13. Explain Fechner's law in detail.

14. Elucidate the historical development of intelligence testing.

15. Explain about meditative techniques.

GENERAL MANAGEMENT - IIBMS EXAM ANSWER - WHATSAPP 91 9924764558

 GENERAL MANAGEMENT - IIBMS EXAM ANSWER - WHATSAPP 91 9924764558

CONTACT

DR. PRASANTH BE MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

The Indian Institute Of Business Management & Studies

Subject: General Management Marks: 100

1

Attempt All Case Study

CASE NO - 1 -Health or Work

Mr. Victor is the marketing manager, looking after two sensitive products-Max and Priya (both are luxury

soaps) - produced by Hindustan Trading Company. After a service of fifteen years, Mr. Victor now enjoys the

second position in the marketing department of his company.

Recently the company introduced a new soap for the elite class of customers. It was launched in all the big

cities of India, under the overall supervision of Mr. Victor.

Mr. Victor now travels twenty days a month and works for fourteen hours a day. His work is well

appreciated by the chairman of the company. And was also rewarded with three direct increments.

As an obvious result of this new development, Mr. Victor now looks after all the three sensitive soaps.

Looking at his dashing approach to marketing, the company’s chairman now wants to give him the additional

responsibility of an ‘international launch’ of these products.

Unfortunately, Mr. Victor is now suffering from high blood pressure and has gone for medical treatment.

Although he is on leave now, he has to resume his duties within a week. As per the doctor’s advice, Mr. Victor was

supposed to take one month’s rest.

Mr. Victor’s wife works in the government department and they are blessed with two school going sons.

Required

What is your advice for Mr. Victor?

CASE NO – 2 - Wanted a Leader

Bombay Steel Limited is the market leader in raw steel, with 40% market share. The company has a work

force of 35,000 employees including 6,000 officers. The chairman of the company Mr. Rangtha retired recently and

could not place his successor immediately. The company is now facing severe competition from new entrants,

especially foreign companies. The moral of employees’ is down due to the absence of proper allocation of

responsibilities, support from superiors and wage revision.

The company is also expecting a non-cooperation movement to be carried out by its two unions. Export

orders are pending. The export market now expects better quality of product. The government has allowed BSL to

expand its capacity, acquire new technology and also raise capital from the open market.

Three senior executives of the company are in the race of becoming the new chairman. Two senior

bureaucrats from the central government departments are also aspiring for the same position.

Required.

1. What type of leader/chairman is required for this company?

2. Who should be made the chairman?

3. What should be the priorities of the new chairman?

The Indian Institute Of Business Management & Studies

Subject: General Management Marks: 100

2

CASE NO – 3 Assessment of Leadership Performance

Assess your present leader, using the following scale and factors (with respective weightages)

Scale

0 - Nil 1 - Poor

2 - Marginal 3 - Good

4 - Very Good 5 - Excellent

Factor Weightage

Decision Making 8

Understanding Subordinates 7

Delegation of Power 6

Supporting Subordinates 5

Dynamism and Risk caring 4

Vision and knowledge 3

Communication 2

Transparency 1

Required

Select your group leader. Also decide the next leader and the method for transfer of leadership.

The Indian Institute Of Business Management & Studies

Subject: General Management Marks: 100

3

CASE NO – 4 Value Approach to Productivity

Falcon International Limited is a well-known company for electrical and electronic products. It is the

market leader for various electrical products and enjoys the second position for electronic products. The company

has realized the 80 million strong middle-class market of India now wants world-class products and after-salesservices.

These customers are now ready to pay higher price for better product. On the other side, the lower

middle-class customers have become very price-sensitive, with decreasing real income and increasing inflation.

So far, this company has been selling ‘same quality products’ to all income groups of customers. But now, it

has realized that ‘product differentiation’ if required, and ‘value for money’ on one side and ‘reasonable value for

reasonable money’ on the other side are going to be the future ‘product strategies’ of the company.

Product differentiation is to be effected very carefully, without disturbing ‘customer sentiments’. This

requires suitable change in ‘employee skills’. If employees are ready to change their style of operations, the

required change in ‘product design’ or ‘product quality’ can be achieved and the customers could be completely

satisfied.

Employees are to be exposed to ‘real market realities’ through live product demonstrations and effective

workshops. Careful study of ‘customer’s ideas on product value’ should be carried out. New designs, new contents,

new utilities require new technology and new ideas. Ultimately, all this requires flexibility in productivity. Change

in operations or style should not have a negative effect on productivity. If changed design or quality of product

demands improvement in productivity, it should be achieved by the employees. The company should properly

reward such an improvement.

Falcon has appointed a committee to find out ways and means for redefining productivity, based on

redefined ‘product value’.

Required

1. Discuss the significance of timely change in ‘product value.’

2. Discuss the significance of timely changes in’ productivity’ to suit the ‘change in product value.’

3. How would you bring in such a change in the productivity.’

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CONTACT

DR. PRASANTH BE MBA PH.D. MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

Attempt Any Four Case Study

Case 1: Zip Zap Zoom Car Company

Zip Zap Zoom Company Ltd is into manufacturing cars in the small car (800 cc) segment. It was set up 15 years back and

since its establishment it has seen a phenomenal growth in both its market and profitability. Its financial statements are shown in

Exhibits 1 and 2 respectively.

The company enjoys the confidence of its shareholders who have been rewarded with growing dividends year after year.

Last year, the company had announced 20 per cent dividend, which was the highest in the automobile sector. The company has never

defaulted on its loan payments and enjoys a favorable face with its lenders, which include financial institutions, commercial banks and

debenture holders.

The competition in the car industry has increased in the past few years and the company foresees further intensification of

competition with the entry of several foreign car manufactures many of them being market leaders in their respective countries. The

small car segment especially, will witness entry of foreign majors in the near future, with latest technology being offered to the Indian

customer. The Zip Zap Zoom’s senior management realizes the need for large scale investment in up gradation of technology and

improvement of manufacturing facilities to pre-empt competition.

Whereas on the one hand, the competition in the car industry has been intensifying, on the other hand, there has been a

slowdown in the Indian economy, which has not only reduced the demand for cars, but has also led to adoption of price cutting

strategies by various car manufactures. The industry indicators predict that the economy is gradually slipping into recession.

Exhibit 1 Balance sheet as at March 31,200 x

(Amount in Rs. Crore)

Source of Funds

Share capital 350

Reserves and surplus 250 600

Loans :

Debentures (@ 14%) 50

Institutional borrowing (@ 10%) 100

Commercial loans (@ 12%) 250

Total debt 400

Current liabilities 200

1,200

Application of Funds

Fixed Assets

Gross block 1,000

Less : Depreciation 250

Net block 750

Capital WIP 190

Total Fixed Assets 940

Current assets :

Inventory 200

Sundry debtors 40

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

Cash and bank balance 10

Other current assets 10

Total current assets 260

-1200

Exhibit 2 Profit and Loss Account for the year ended March 31, 200x

(Amount in Rs. Crore)

Sales revenue (80,000 units x Rs. 2,50,000) 2,000.0

Operating expenditure :

Variable cost :

Raw material and manufacturing expenses 1,300.0

Variable overheads 100.0

Total 1,400.0

Fixed cost :

R & D 20.0

Marketing and advertising 25.0

Depreciation 250.0

Personnel 70.0

Total 365.0

Total operating expenditure 1,765.0

Operating profits (EBIT) 235.0

Financial expense :

Interest on debentures 7.7

Interest on institutional borrowings 11.0

Interest on commercial loan 33.0 51.7

Earnings before tax (EBT) 183.3

Tax (@ 35%) 64.2

Earnings after tax (EAT) 119.1

Dividends 70.0

Debt redemption (sinking fund obligation)** 40.0

Contribution to reserves and surplus 9.1

* Includes the cost of inventory and work in process (W.P) which is dependent on demand (sales).

** The loans have to be retired in the next ten years and the firm redeems Rs. 40 crore every year.

The company is faced with the problem of deciding how much to invest in up gradation of its plans and technology. Capital

investment up to a maximum of Rs. 100 crore is required. The problem areas are three-fold.

 The company cannot forgo the capital investment as that could lead to reduction in its market share as technological

competence in this industry is a must and customers would shift to manufactures providing latest in car technology.

 The company does not want to issue new equity shares and its retained earning are not enough for such a large investment.

Thus, the only option is raising debt.

 The company wants to limit its additional debt to a level that it can service without taking undue risks. With the looming

recession and uncertain market conditions, the company perceives that additional fixed obligations could become a cause of financial

distress, and thus, wants to determine its additional debt capacity to meet the investment requirements.

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

Mr. Shortsighted, the company’s Finance Manager, is given the task of determining the additional debt that the firm can raise. He

thinks that the firm can raise Rs. 100 crore worth debt and service it even in years of recession. The company can raise debt at 15 per

cent from a financial institution. While working out the debt capacity. Mr. Shortsighted takes the following assumptions for the

recession years.

a) A maximum of 10 percent reduction in sales volume will take place.

b) A maximum of 6 percent reduction in sales price of cars will take place.

Mr. Shorsighted prepares a projected income statement which is representative of the recession years. While doing so, he

determines what he thinks are the ―irreducible minimum‖ expenditures under recessionary conditions. For him, risk of insolvency is

the main concern while designing the capital structure. To support his view, he presents the income statement as shown in Exhibit 3.

Exhibit 3 projected Profit and Loss account

(Amount in Rs. Crore)

Sales revenue (72,000 units x Rs. 2,35,000) 1,692.0

Operating expenditure

Variable cost :

Raw material and manufacturing expenses 1,170.0

Variable overheads 90.0

Total 1,260.0

Fixed cost :

R & D ---

Marketing and advertising 15.0

Depreciation 187.5

Personnel 70.0

Total 272.5

Total operating expenditure 1,532.5

EBIT 159.5

Financial expenses :

Interest on existing Debentures 7.0

Interest on existing institutional borrowings 10.0

Interest on commercial loan 30.0

Interest on additional debt 15.0 62.0

EBT 97.5

Tax (@ 35%) 34.1

EAT 63.4

Dividends --

Debt redemption (sinking fund obligation) 50.0*

Contribution to reserves and surplus 13.4

* Rs. 40 crore (existing debt) + Rs. 10 crore (additional debt)

Assumptions of Mr. Shorsighted

 R & D expenditure can be done away with till the economy picks up.

 Marketing and advertising expenditure can be reduced by 40 per cent.

 Keeping in mind the investor confidence that the company enjoys, he feels that the company can forgo paying dividends in

the recession period.

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

He goes with his worked out statement to the Director Finance, Mr. Arthashatra, and advocates raising Rs. 100 crore of debt to

finance the intended capital investment. Mr. Arthashatra does not feel comfortable with the statements and calls for the company’s

financial analyst, Mr. Longsighted.

Mr. Longsighted carefully analyses Mr. Shortsighted’s assumptions and points out that insolvency should not be the sole criterion

while determining the debt capacity of the firm. He points out the following :

 Apart from debt servicing, there are certain expenditures like those on R & D and marketing that need to be continued to

ensure the long-term health of the firm.

 Certain management policies like those relating to dividend payout, send out important signals to the investors. The Zip Zap

Zoom’s management has been paying regular dividends and discontinuing this practice (even though just for the recession phase)

could raise serious doubts in the investor’s mind about the health of the firm. The firm should pay at least 10 per cent dividend in the

recession years.

 Mr. Shortsighted has used the accounting profits to determine the amount available each year for servicing the debt

obligations. This does not give the true picture. Net cash inflows should be used to determine the amount available for servicing the

debt.

 Net Cash inflows are determined by an interplay of many variables and such a simplistic view should not be taken while

determining the cash flows in recession. It is not possible to accurately predict the fall in any of the factors such as sales volume, sales

price, marketing expenditure and so on. Probability distribution of variation of each of the factors that affect net cash inflow should be

analyzed. From this analysis, the probability distribution of variation in net cash inflow should be analysed (the net cash inflows

follow a normal probability distribution). This will give a true picture of how the company’s cash flows will behave in recession

conditions.

The management recognizes that the alternative suggested by Mr. Longsighted rests on data, which are complex and require

expenditure of time and effort to obtain and interpret. Considering the importance of capital structure design, the Finance Director

asks Mr. Longsighted to carry out his analysis. Information on the behaviour of cash flows during the recession periods is taken into

account.

The methodology undertaken is as follows :

(a) Important factors that affect cash flows (especially contraction of cash flows), like sales volume, sales price, raw materials

expenditure, and so on, are identified and the analysis is carried out in terms of cash receipts and cash expenditures.

(b) Each factor’s behaviour (variation behaviour) in adverse conditions in the past is studied and future expectations are

combined with past data, to describe limits (maximum favourable), most probable and maximum adverse) for all the factors.

(c) Once this information is generated for all the factors affecting the cash flows, Mr. Longsighted comes up with a range of

estimates of the cash flow in future recession periods based on all possible combinations of the several factors. He also estimates the

probability of occurrence of each estimate of cash flow.

Assuming a normal distribution of the expected behaviour, the mean expected value of net cash inflow in adverse conditions

came out to be Rs. 220.27 crore with standard deviation of Rs. 110 crore.

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

Keeping in mind the looming recession and the uncertainty of the recession behaviour, Mr. Arthashastra feels that the firm

should factor a risk of cash inadequacy of around 5 per cent even in the most adverse industry conditions. Thus, the firm should take

up only that amount of additional debt that it can service 95 per cent of the times, while maintaining cash adequacy.

To maintain an annual dividend of 10 per cent, an additional Rs. 35 crore has to be kept aside. Hence, the expected available

net cash inflow is Rs. 185.27 crore (i.e. Rs. 220.27 – Rs. 35 crore)

Question:

Analyse the debt capacity of the company.

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

CASE – 2 GREAVES LIMITED

Started as trading firm in 1922, Greaves Limited has diversified into manufacturing and marketing of high technology

engineering products and systems. The company’s mission is ―manufacture and market a wide range of high quality products, services

and systems of world class technology to the total satisfaction of customers in domestic and overseas market.‖

Over the years Greaves has brought to India state of the art technologies in various engineering fields by setting up

manufacturing units and subsidiary and associate companies. The sales of Greaves Limited has increased from Rs 214 crore in 1990 to

Rs 801 crore in 1997. The sales of Greaves Limited has increased from Rs 214 crore in 1990 to Rs 801 crore in 1997. Profits before

interest and tax (PBIT) of the company increased from Rs 15 crore to Rs 83 crore in 1997. The market price of the company’s share

has shown ups and downs during 1990 to 1997. How has the company performed? The following question need answer to fully

understand the performance of the company:

 Exhibit 1

GREAVES LTD.

Profit and Loss Account ending on 31 March (Rupees in crore)

1990 1991 1992 1993 1994 1995 1996 1997

Sales

Raw Material and Stores

Wages and Salaries

Power and fuel

Other Mfg. Expenses

Other Expenses

Depreciation

Marketing and Distribution

Change in stock

214.38

170.67

13.54

0.52

0.61

11.85

1.85

4.86

1.18

253.10

202.84

15.60

0.70

0.49

15.48

1.72

5.67

3.10

287.81

230.81

18.03

1.11

0.88

16.35

1.52

5.14

4.93

311.14

213.79

37.04

3.80

2.37

25.54

4.62

5.17

0.48

354.25

245.63

37.96

4.43

2.36

31.60

5.99

9.67

- 1.13

521.56

379.83

48.24

6.66

3.57

41.40

8.53

10.81

5.63

728.15

543.56

60.48

7.70

4.84

45.74

9.30

12.44

11.86

801.11

564.35

69.66

9.23

5.49

48.64

11.53

16.98

- 5.87

Total Op Expenses 202.72 239.40 268.91 291.85 338.77 493.41 672.20 731.75

Operating Profit

Other Income

Non-recurring Income

11.61

2.14

1.30

13.70

3.69

2.28

18.90

4.97

0.10

19.29

4.24

10.98

15.48

7.72

16.44

28.15

14.35

0.46

55.95

11.35

0.52

69.36

13.08

1.75

PBIT 15.10 19.67 23.97 34.51 39.64 42.98 65.67 82.64

Interest 5.56 6.77 11.92 19.62 17.17 21.48 28.25 27.54

PBT 9.54 12.90 12.05 14.89 22.47 21.50 37.42 55.10

Tax

PAT

Dividend

Retained Earnings

3.00

6.54

1.80

4.74

3.60

9.30

2.00

7.30

4.90

7.15

2.30

4.85

0.00

14.89

4.06

10.83

4.00

18.47

7.29

11.18

7.00

14.50

8.58

5.92

8.60

28.82

12.85

15.97

15.80

39.30

14.18

25.12

 Exhibit 2

GREAVES LTD.

Balance Sheet (Rupees in crore)

1990 1991 1992 1993 1994 1995 1996 1997

ASSETS

Land and Building

Plant and Machinery

Other Fixed Assets

Capital WIP

Gross Fixed Assets

Less: Accu. Depreciation

Net Tangible Fixed Assets

3.88

11.98

3.64

0.09

19.59

12.91

6.68

4.22

12.68

4.14

0.26

21.30

14.56

6.74

4.96

12.98

4.38

10.25

23.57

15.79

7.78

21.70

33.49

5.18

11.27

71.64

19.84

51.80

30.82

50.78

6.95

34.84

123.39

25.74

97.65

39.71

75.34

8.53

14.37

137.95

33.90

104.05

42.34

92.49

8.87

13.92

157.62

42.56

115.06

43.07

104.45

10.35

14.36

172.23

53.87

118.86

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

Intangible Fixed Assets 0.21 0.19 0.05 4.40 22.03 22.45 20.04 21.11

Net Fixed Assets 6.89 6.93 7.83 56.20 119.68 126.50 135.10 139.97

Raw Materials

Finished Goods

Inventory

Accounts Receivable

Other Receivable

Investments

Cash and Bank Balance

Current Assets

Total Assets

LIABILITIES AND CAPITAL

Equity Capital

Preference Capital

Reserves and Surplus

5.26

29.37

34.63

38.16

32.62

3.55

8.36

117.32

124.21

9.86

0.20

27.60

6.91

33.72

40.63

53.24

40.47

14.95

8.91

158.20

165.13

9.86

0.20

32.57

7.26

38.65

45.91

67.97

49.19

15.15

12.71

190.93

198.76

9.86

0.20

37.42

21.05

53.39

74.44

93.30

24.54

27.58

13.29

233.15

289.35

18.84

0.20

100.35

28.13

52.26

80.39

122.20

59.12

73.50

18.38

353.59

473.27

29.37

0.20

171.03

44.03

58.09

102.12

133.45

64.32

75.01

30.08

404.98

531.48

29.44

0.20

176.88

53.62

69.97

123.59

141.82

76.57

75.07

33.46

450.51

585.61

44.20

0.20

175.41

50.94

64.09

115.03

179.92

107.31

76.45

48.18

526.89

666.86

44.20

0.20

198.79

Net Worth 37.66 42.63 47.48 119.39 200.60 206.52 219.81 243.19

Bank Borrowings

Institutional Borrowings

Debentures

Fixed Deposits

Commercial Paper

Other Borrowings

Current Portion of LT Debt

14.81

4.13

4.77

12.31

0.00

2.33

0.00

19.45

3.43

16.57

14.45

0.00

3.22

0.00

26.51

9.17

19.99

15.03

0.00

3.10

0.08

24.82

38.09

4.56

14.08

0.00

3.18

0.12

55.12

38.76

4.37

15.57

15.00

17.08

15.08

64.97

69.69

4.37

17.75

0.00

1.97

0.02

70.08

89.26

2.92

20.81

0.00

2.36

1.49

118.28

63.60

1.49

19.29

0.00

2.57

1.57

Borrowings 38.35 57.12 73.72 84.61 130.82 158.73 183.94 203.66

Sundry Creditors

Other Liabilities

Provision for tax, etc.

Proposed Dividends

Current Portion of LT Dept

37.52

5.70

3.18

1.80

0.00

49.40

10.16

3.82

2.00

0.00

59.34

10.70

5.14

2.30

0.08

77.27

3.59

0.31

4.06

0.12

113.66

1.42

4.40

7.29

15.08

148.13

1.99

7.70

8.58

0.02

153.63

1.70

12.19

12.85

1.49

179.79

3.04

21.43

14.18

1.57

Current Liabilities 48.20 65.38 77.56 85.35 141.85 166.42 181.86 220.01

TOTAL LIABILITIES

Additional information:

Share premium reserve

Revaluation reserve

Bonus equity capital

124.21

8.51

165.13

8.51

198.76

8.51

289.35

47.69

8.91

8.51

473.27

107.40

8.70

8.51

531.67

107.91

8.50

8.51

585.61

93.35

8.31

23.25

666.86

93.35

8.15

23.25

 Exhibit 3

GREAVES LTD.

Share Price Data

1990 1991 1992 1993 1994 1995 1996 1997

Closing share price (Rs)

Yearly high share price (Rs)

Yearly low share price (Rs)

Market capitalization (Rs crore

EPS (Rs)

Book value (Rs)

27.19

29.25

26.78

65.06

4.79

35.64

34.74

45.28

21.61

67.77

6.82

37.22

121.27

121.27

34.36

236.56

9.73

42.54

66.67

126.33

48.34

274.84

1.93

57.75

78.34

90.00

42.67

346.35

2.66

40.61

71.67

100.01

68.34

316.87

7.16

64.98

47.5

90.00

45.00

210.02

5.03

45.35

48.25

85.00

43.75

213.34

9.01

50.73

Questions

1. How profitable are its operations? What are the trends in it? How has growth affected the profitability of the company?

2. What factors have contributed to the operating performance of Greaves Limited? What is the role of profitability margin,

asset utilization, and non-operating income?

3. How has Greaves performed in terms of return on equity? What is the contribution of return on investment, the way of the

business has been financed over the period?

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

CASE – 3 CHOOSING BETWEEN PROJECTS IN ABC COMPANY

ABC Company, has three projects to choose from. The Finance Manager, the operations manager are discussing and they are not

able to come to a proper decision. Then they are meeting a consultant to get proper advice. As a consultant, what advice you will give?

The cash flows are as follows. All amounts are in lakhs of Rupees.

Project 1:

Duration 5 Years

Beginning cash outflow = Rs. 100

Cash inflows (at the end of the year)

Yr. 1 – Rs 30; Yr. 2 – Rs 30; Yr. 3 – Rs 30; Yr.4 – 10; Yr.5 – 10

Project 2:

Duration 5 Years

Beginning Cash outflow Rs. 3763

Cash inflows (at the end of the year)

Yr. 1 – 200; Yr. 2 – 600; Yr. 3 – 1000; Yr. 4 – 1000; Yr. 5 – 2000.

Project 3:

Duration 15 Years

Beginning Cash Outflow – Rs. 100

Cash Inflows (at the end of the year)

Yrs. 1 to 10 – Rs. 20 (for 10 continuous years)

Yrs. 11 to 15 – Rs. 10 (For the next 5 years)

Question:

If the cost of capital is 8%, which of the 3 projects should the ABC Company accept?

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

CASE – 4 STAR ENGINEERING COMPANY

Star Engineering Company (SEC) produces electrical accessories like meters, transformers, switchgears, and automobile

accessories like taximeters and speedometers.

SEC buys the electrical components, but manufactures all mechanical parts within its factory which is divided into four

production departments Machining, Fabrication, Assembly, and Painting—and three service departments—Stores, Maintenance, and

Works Office.Though the company prepared annual budgets and monthly financial statements, it had no formal cost accounting

system. Prices were fixed on the basis of what the market can bear. Inventory of finished stocks was valued at 90 per cent of the

market price assuming a profit margin of 10 per cent.

In March, the company received a trial order from a government department for a sample transformer on a cost-plus-fixed-fee

basis. They took up the job (numbered by the company as Job No 879) in early April and completed all manufacturing operations

before the end of the month.

Since Job No 879 was very different from the type of transformers they had manufactured in the past, the company did not

have a comparable market price for the product. The purchasing officer of the government department asked SEC to submit a detailed

cost sheet for the job giving as much details as possible regarding material, labour and overhead costs.SEC, as part of its routine

financial accounting system, had collected the actual expenses for the month of April, by 5th of May. Some of the relevant data are

given in Exhibit A.The company tried to assign directly, as many expenses as possible to the production departments. However, It was

not possible in all cases. In many cases, an overhead cost, which was common to all departments had to be allocated to the various

departments using some rational basis. Some of the possible bases were collected by SEC’s accountant. These are presented in Exhibit

B.He also designed a format to allocate the overhead to all the production and service departments. It was realized that the expenses of

the service departments on some rational basis. The accountant thought of distributing the service departments’ costs on the following

basis:

a. Works office costs on the basis of direct labour hours.

b. Maintenance costs on the basis of book value of plant and machinery.

c. Stores department costs on the basis of direct and indirect materials used.

The accountant, who had to visit the company’s banker, passed on the papers to you for the required analysis and cost

computations.

REQUIRED

Based on the data given in Exhibits A and B, you are required to:

1. Complete the attached ―overhead cost distribution sheet‖ (Exhibit C).

Note: Wherever possible, identify the overhead costs chared directly to the production and service departments. If such direct

identification is not possible, distribute the costs on some ―rational basis.

2. Calculate the overhead cost (per direct labour hour) for each of the four producing departments. This should include share of

the service departments’ costs.

The Indian Institute Of Business Management & Studies

Subject: Finance Management Marks: 100

3. Do you agree with:

a. The procedure adopted by the company for the distribution of overhead costs?

b. The choice of the base for overhead absorption, i.e. labour-hour rate?

Exhibit A

STAR ENGINEERING COMPANY

Actual Expenses(Manufacturing Overheads) for April

RS RS

Indirect Labour and Supervisions:

Machining

Fabrication

Assembly

Painting

Stores

Maintenance

Indirect Materials and Supplies

Machining

Fabrication

Assembly

Painting

Maintenance

Others

Factory Rent

Depreciation of Plant and Machinery

Building Rates and Taxes

Welfare Expenses

(At 2 per cent of direct labour wages and Indirect labour and supervision)

Power

(Maintenance—Rs 366; Works Office Rs 2,200, Balance to Producing

Departments)

Works Office Salaries and Expenses

Miscellaneous Stores Department Expenses

33,000

22,000

11,000

7,000

44,000

32,700

2,200

1,100

3,300

3,400

2,800

1,68,000

44,000

2,400

19,400

68,586

1,30,260

1,190

1,49,700

12,800

4,33,930

5,96,930

The Indian Institute Of Business Management & Studies

Subject: Human Resources Analytics Marks: 100

Exhibit B

STAR ENGINEERING COMPANY

Projected Operation Data for the Year

Department Area

(sq.m)

Original

Book of Plant &

Machinery

Rs

Direct

Materials

Budget

Rs

Horse

Power

Rating

Direct

Labour

Hours

Direct

Labour

Budget

Rs

Machining

Fabrication

Assembly

Painting

Stores

Maintenance

Works Office

Total

13,000

11,000

8,800

6,400

4,400

2,200

2,200

48,000

26,40,000

13,20,000

6,60,000

2,64,000

1,32,000

1,98,000

68,000

52,80,000

62,40,000

21,60,000

10,80,000

94,80,000

20,000

10,000

1,000

2,000

33,000

14,40,000

5,28,000

7,20,000

3,30,000

30,18,000

52,80,000

25,40,000

13,20,000

6,60,000

99,00,000

Note

The estimates given in this exhibit are for the budgeted year January to December where as the actuals in Exhibit A are just one month—April of the budgeted year.

Exhibit C

STAR ENGINEERING COMPANY

Actual Overhead Distribution Sheet for April

Departments

Overhead Costs

Production Departments Service Departments Total

Amount

Actuals for

April (Rs)

Basis for

Distribution

A. Allocation of Overhead to all

departments

A.1 Indirect Labour and

Supervision

1,49,700

A.2 Indirect materials and

supplies

12,800

A.3 Factory Rent 1,68,000

The Indian Institute Of Business Management & Studies

Subject: Human Resources Analytics Marks: 100

A.4 Depreciation of Plant and

Machinery

44,000

A.5 Building Rates and Taxes 2,400

A.6 Welfare Expenses 19,494

A.7 Power 68,586

A.8 Works Office Salaries and

Expenses

1,30,260

A.9 Miscellaneous Stores

Expenses

1,190

A. Total (A.1 to A.9) 5,96,430

B. Reallocation of Service

Departments Costs to Production

Departments

B.1 Distribution of Works Office

Costs

B.2 Distribution of Maintenance

Department’s Costs

B.3 Distribution of Stores

Department’s Costs

Total Charged to Producing

C. Departments (A+B)

5,96,430

D. Labour Hours Actuals for

April

1,20,00

0

44,000

60,

000

27,

500

E. Overhead Rate/Per Hour (D)

The Indian Institute Of Business Management & Studies

Subject: Human Resources Analytics Marks: 100

Case 5: EASTERN MACHINES COMPANY

Raj, who was in charge production felt that there are many problems to be attended to. But Quality Control was the main

problem, he thought, as he found there were more complaints and litigations as compared to last year. With the demand increasing,

he does not want to take any chances.

So he went down to assembly line, but was greeted by an unfamiliar face. He introduced himself.

Raj: I am in charge of checking the components, which we use, when we assemble the machines for customers. For most of

the components, suppliers are very reliable and we assume that there will not be any problem. When we generally test the end

product, we don’t have failures.

Namdeo: I am Namdeo. I was in another dept. and have been transferred recently to this dept.

Raj: Recently we have been having problems, and there has been some complaint or other about the machines we have

supplied. I am worried and would like to check the components used. I would like to avoid lot of expensive rework.

Namdeo: But it would be very expensive to test every one of them. It will take at least half an hour for each machine. I neither

have the staff nor the time. It will be rather pointless as majority of them will pass the test.

Raj: There has been more demand than supply for these machines in last 2 years. We have been buying many components

from many suppliers. We have been producing more with extra shifts. We are trying to capture the market and increase our market

share.

Namdeo: We order for components from different places, and sometimes we do not have time to check all. There is a time lag

between order and supply of components, and we cannot wait as production will stop. We use whatever comes soon as we want to

complete our orders.

Raj: Oh! Obviously we need some kind of checking. Some sampling technique to check the quality of the components. We

need to get a sample from each shipment from our component suppliers. But I do not know how many we should test.

Namdeo: We should ask somebody from our statistics dept. to attend to this problem.

As a Statistician, advice what kind of Sampling schemes can we consider, and what factors will influence choice of

scheme. What are the questions we should ask Mr. Namdeo, who works in the assembly line?