1. Define Management?

organizations to ensure that they are using their resources in the

Ans: Definition: “Management is knowing exactly what you most efficient and effective way possible.
want men to do and then seeing that they do it the best and
cheapest ways”. F.W.Taylor
“Management is an art of getting things done through and with
the people in formally organized groups. It is an art of creating
an environment in which people can perform and individuals
and can co-operate towards attainment of group goals”. Koontz
and O‟ Donell
Nature of Management: The study and application of
management techniques in managing the affairs of the
organization have changed its nature over the period of time.
Multidisciplinary: Management is a multidisciplinary discipline
that integrates knowledge from various disciplines like
psychology, sociology, anthropology, economics, ecology,
statistics, and operations research. It integrates these ideas and
concepts, presenting newer ones for effective organization 2. Organizing: This involves creating a structure for the
management, ensuring that management remains a separate organization, and assigning tasks and responsibilities to
discipline while incorporating diverse perspectives. individuals and groups. Organizing helps to ensure that
Dynamic nature of principle: Management principles, based on everyone in the organization knows what they are responsible
integration and practical evidence, are flexible and adaptable to for, and that they have the resources they need to do their job.
changes in an organization's environment. 3. Staffing: This involves recruiting, selecting, and training
Relative, not absolute principles: Management principles should employees. Staffing ensures that the organization has the right
be applied based on the organization's needs, considering factors people in the right jobs, with the right skills and knowledge.
like time, place, and sociocultural factors, as they may differ 4. Leading: This involves motivating and inspiring employees
from one another. to achieve the organization's goals. Leading is about creating a
Management - Science or Art: There is a controversy whether positive work environment where employees feel valued and
management is science or art. However, management is both a appreciated, and where they are motivated to do their best work.
science and art. 5. Controlling: This involves monitoring performance and
Management as profession: Management has been regarded as taking corrective action as needed. Controlling helps to ensure
profession by many while many have suggested that it has not that the organization is on track to achieve its goals, and that any
achieved the status of a profession. problems are identified and addressed quickly.

2. What is the Importance of Management? 4. What in detail about Scientific Management?

Ans: Management is the process of planning, organizing, Ans: Scientific management is a theory of management that
directing, and controlling the resources of an organization to emphasizes the systematic study of work and the application of
achieve its goals. It is a broad term that can be applied to any scientific principles to improve efficiency. It was developed by
type of organization, from businesses to governments to Frederick Winslow Taylor in the early 20th century.
nonprofits. The elements of scientific management include:
The importance of management can be summarized in three Work study: This involves breaking down the work into its
points: smallest components and then studying each component to find
1. It helps organizations achieve their goals. By effectively the most efficient way to perform it.
managing their resources, organizations can ensure that they are Time and motion study: This involves using stopwatches and
using them in the most efficient and effective way possible to other tools to measure the time and motion required to perform
achieve their desired outcomes. each component of a job.
2. It helps organizations adapt to change. The world is constantly Standardization: This involves establishing standard methods
changing, and organizations need to be able to adapt to these and procedures for performing jobs.
changes in order to survive and thrive. Management helps Selection and training: This involves selecting and training
organizations do this by providing a framework for decision- workers for the jobs they will be doing.
making and problem-solving. Functional foremanship: This involves dividing the
3. It helps organizations attract and retain talent. In today's responsibilities of foremanship into separate functions, such as
competitive marketplace, organizations need to be able to attract planning, scheduling, and inspection.
and retain the best talent. Management helps organizations do Differential piece rate: This is a pay system in which workers
this by creating a positive work environment and providing are paid a higher rate for each unit of output they produce above
opportunities for employees to develop and grow. a certain standard.

3. Explain the Functions of Management? 5. 6. Write about Henry Fayol’s Principles?

Ans: The five generally accepted functions of management are: Ans: Henri Fayol was a French industrialist and mining engineer
1. Planning: This involves setting goals and objectives, and who is considered one of the founders of modern management.
developing strategies for achieving them. Planning is the He developed 14 principles of management.
foundation of all other management functions, and it helps The 14 principles of management by Henri Fayol are:
1. Division of work: This principle states that work should be Physiological needs - These are the basic needs of air, water,
divided into smaller tasks that can be performed more efficiently food, clothing and shelter. In other words, physiological needs
by individuals or groups. are the needs for basic amenities of life.
2. Authority and responsibility: This principle states that Safety needs - Safety needs include physical, environmental and
authority should be equal to responsibility. In other words, emotional safety and protection. For instance- Job security,
managers should have the authority to give orders, but they financial security, protection from animals, family security,
should also be held responsible for the results of those orders. health security, etc.
3. Discipline: This principle states that employees must obey the Social needs - Social needs include the need for love, affection,
rules and regulations of the organization. care, belongingness, and friendship.
4. Unity of command: This principle states that each employee Esteem needs - Esteem needs are of two types: internal esteem
should receive orders from only one supervisor. needs (self- respect, confidence, competence, achievement and
5. Unity of direction: This principle states that there should be freedom) and external esteem needs (recognition, power, status,
one plan for achieving each objective. attention and admiration).
6. Subordination of individual interests to the general interest: Self-actualization need - This includes the urge to become what
This principle states that the interests of the organization should you are capable of becoming / what you have the potential to
come before the interests of any individual or group. become. It includes the need for growth and self-contentment. It
7. Remuneration: This principle states that employees should be also includes desire for gaining more knowledge, social service,
paid fairly for their work. creativity and being aesthetic. The self- actualization needs are
8. Centralization: This principle states that the degree of never fully satiable.
centralization of decision-making should vary depending on the
circumstances. 8. Define Motivation? Explain about Theory X Theory Y?
9. Scalar chain: This principle states that there should be a clear Ans: Motivation is the word derived from the word ‟motive‟
line of authority from top to bottom in the organization. which means needs, desires, wants or drives within the
10. Order: This principle states that everything should have a individuals. It is the process of stimulating people to actions to
place, and everything should be in its place. accomplish the goals. In the work goal context, the
11. Equity: This principle states that managers should be fair and psychological factors stimulating the people’s behavior can be
just in their dealings with employees. desire for money
12. Stability of tenure of personnel: This principle states that  success
employees should be given a reasonable amount of job security.  recognition
13. Initiative: This principle states that employees should be  job-satisfaction
encouraged to take the initiative and be creative in their work.  team work, etc
14. Esprit de corps: This principle states that there should be a In 1960, Douglas McGregor formulated Theory X and Theory Y
spirit of cooperation and teamwork within the organization. suggesting two aspects of human behaviour at work, or in other
words, two different views of individuals (employees): one of
7. Discuss about Maslow’s Need Hierarchy? which is negative, called as Theory X and the other is positive,
Ans: Maslow’s Hierarchy of Needs Theory Abraham Maslow is so called as Theory Y
well renowned for proposing the Hierarchy of Needs Theory in Assumptions of Theory X
1943. This theory is a classical depiction of human motivation.  An average employee intrinsically does not like work
This theory is based on the assumption that there is a hierarchy and tries to escape it whenever possible.
of five needs within each individual. The urgency of these needs  Since the employee does not want to work, he must be
varies. These five needs are as follows. According to Maslow, persuaded, compelled, or warned with punishment so
individuals are motivated by unsatisfied needs. As each of these as to achieve organizational goals. A close supervision
needs is significantly satisfied, it drives and forces the next need is required on part of managers. The managers adopt a
to emerge. Maslow grouped the five needs into two categories - more dictatorial style.
Higher-order needs and Lower-order needs. The physiological
 Many employees rank job security on top, and they
and the safety needs constituted the lower-order needs. These
have little or no aspiration/ ambition.
lower order needs are mainly satisfied.
 Employees generally dislike responsibilities.
 Employees resist change.
 An average employee needs formal direction.
Assumptions of Theory Y
 Employees can perceive their job as relaxing and
normal. They exercise their physical and mental efforts
in an inherent manner in their jobs.
 Employees may not require only threat, external
control and coercion to work, but they can use self-
direction and self-control if they are dedicated and
sincere to achieve the organizational objectives.
 If the job is rewarding and satisfying, then it will result
in employees‟ loyalty and commitment to organization.
  An average employee can learn to admit and recognize Though this is similar to strategic and democratic leadership
the responsibility. In fact, he can even learn to obtain styles, the focus here is more on the individual.
responsibility.
 The employees have skills and capabilities. Their 10. Analysis Maslow’s Need Hierarchy theory of Motivation?
logical capabilities should be fully utilized. In other Ans: continuation of 7th answer.
words, the creativity, resourcefulness and innovative Analysis of Maslow's Hierarchy of Needs:
potentiality of the employees can be utilized to solve Sequential Nature: Maslow's theory emphasizes the sequential
organizational problems. nature of human behavior, where individuals ascend the
hierarchy as their lower-level needs are met, although this theory
9. Explain about Leadership? Explain various leadership styles? acknowledges that individuals may move between levels.
Ans: Leadership is a critical aspect of management science that Individual Differences: The theory's universal applicability is
involves guiding and influencing individuals or groups to debated due to the impact of cultural, social, and personal factors
achieve organizational goals. Various leadership styles have on individual needs prioritization and satisfaction.
been identified, each characterized by different approaches to Application in the Workplace: Maslow's theory is utilized in
decision-making, communication, and team interaction. Here organizational settings to understand and motivate employees,
are some prominent leadership styles: enabling managers to provide a safe working environment,
Autocratic Leadership: In an autocratic leadership style, the recognition, career development opportunities, and a positive
leader makes decisions unilaterally without consulting the team. work culture.
This approach is effective in situations requiring quick decisions Limitations: Critics argue that Maslow's Hierarchy simplifies
or in organizations with a hierarchical structure. human motivation, as not everyone follows the same path and
Democratic Leadership: A democratic leader makes decisions some prioritize higher-level needs even if lower-level needs are
based on their team’s opinion and feedback. In simpler words, not fully satisfied.
they get everyone involved in the decision-making process. Cultural Variations: The hierarchy may not be universally
However, this type of leadership cannot be used in the long run applicable across cultures, as cultural differences can affect the
because of drawbacks like losing the leader’s authority, debates, importance assigned to specific needs and their satisfaction
and miscommunication between team members. Here are some methods.
scenarios in which you can adopt a democratic leadership style:
 New project that requires constant brainstorming 11. Discuss in detail about the different levels management
 Solve complex business problems Ans: The term “Levels of Management‟ refers to a line of
 Small organizations like start-ups demarcation between various managerial positions in an
Laissez-Faire Leadership: Laissez-faire means “let them do”. organization. The number of levels in management increases
Laissez-faire leaders adopt a hands-off approach, allowing team when the size of the business and work force increases and vice
members considerable freedom to make decisions and manage versa. The level of management determines a chain of command,
their tasks independently. This style is effective in environments the amount of authority & status enjoyed by any managerial
with experienced and self-motivated individuals. position. The levels of management can be classified in three
Transformational Leadership: Transformational leaders inspire broad categories:
others to achieve the unexpected. They aim to transform and 1. Top level / Administrative level
improve team members’ and organizations’ functions and 2. Middle level / Executory
capabilities by motivating and encouraging them. 3. Low level / Supervisory / Operative / First-line managers
Transactional Leadership: This type of leadership is task- Managers at all these levels perform different functions. The role
oriented, which means team members who meet the leader’s of managers at all the three levels is discussed below:
expectations will be rewarded, and others will be punished. It is
a prevalent leadership style based on the action-and-reward
concept.
Servant Leadership: Servant leaders prioritize the well-being
and development of their team members. They focus on serving
others, fostering a collaborative and supportive environment.
The emphasis is on empowering employees and putting their
needs first.
Charismatic Leadership: Charismatic leaders influence and
inspire through their personal charm, confidence, and persuasive
communication. They often have a strong vision and the ability
to rally others around it. Top Level of Management
Situational Leadership: Situational leadership involves adapting It consists of board of directors, chief executive or managing
leadership style based on the specific circumstances and the director. The top management is the ultimate source of authority
developmental level of the team. Leaders may need to be more and it manages goals and policies for an enterprise. It devotes
directive in some situations and more supportive in others. more time on planning and coordinating functions.
Coach – style Leadership: This leadership style focuses on Middle Level of Management
identifying and nurturing a team member’s strengths and The branch managers and departmental managers constitute
weaknesses. A coaching leader develops strategies that middle level. They are responsible to the top management for
emphasize team members’ success. the functioning of their department. They devote more time to
organizational and directional functions. In small organization, system planning is separated from performance since the
there is only one layer of middle level of management but in big direction of work is divided by various function in the factory.
enterprises, there may be senior and junior middle level It has been found that this type of structure becomes ineffective
management. when the work of departments and individuals increases in
Lower Level of Management variety and complexity.
Lower level is also known as supervisory / operative level of
Line and Staff Organization:
management. It consists of supervisors, foreman, section
Line and Staff organization is the in which the line heads are
officers, superintendent etc. According to R.C. Davis,
assisted by specialist staff. If the firm is of large size, manager
“Supervisory management refers to those executives whose cannot give careful attention to every aspect of management.
work has to be largely with personal oversight and direction of They are busy with ordinary task of production and selling.
operative employees”. In other words, they are concerned with Hence staff is deputed to do the work of investigation, research,
direction and controlling function of management. recording, and advising to managers. Thus, the staff brings
advising to managers. Thus, the staff brings specialization by
12. Discuss in detail about different organizational structures assisting the line officers.
Ans: Type of organization: On the basis of authority “Line” means - Operating
relationships organization classified as follows “Staff” means – Service
1. Line organization or Military organization or Scalar
organization
2. Functional organization
3. Line and Staff organization
4. Project organization
5. Committee organization
6. Matrix organization

Line organization:
A line organiza on is a
structure where each
employee reports to a
single supervisor, with
authority and responsibility
Project Organization: A project organization is a special case
flowing from the top to the
where common service like finance, purchase etc. are organized
bo om. This is common in
at the functional level. But project resources are allocated to the
small businesses and project manager. Since the business responsibility rests with the
simple opera ons, as it project manager, necessary authority is given to him with the
ensures quick decision- requisite resources. This type of organization structure helps in
making and clear making decisions for project control in terms of cost, resource
accountability for results. and time. In a project organization some of the functions are
However, it can be inflexible and difficult to manage in large corporate responsibility and some of them are project manager’s
organiza ons, as well as coordina on between different responsibility
departments or divisions. The top manager holds the most
authority and responsibility, while subsequent levels have less.

Functional organization: This structure most widely used, in the

medium and large organizations having limited number of
products. This was introduced by F.W.Taylor and is logical
extension of the division of labour cover departments as well as
men. In this authority is delegated to an individual or department

Committee Organization: A committee is formed when two or

more persons are appointed to work as a team to arrive at a
decision on the matters referred to it. It is intended to utilize the
knowledge, skills, and experiences of all the concerned parties.

to control specified processes, policies or other matter relating

to activities under taken by persons in other departments. In this
Particularly, in large organizations, problems are too big to be historical data and represent the acceptable range of variation in
handled by one single expert. the process mean. Data points falling outside these limits
indicate potential issues with the process.
Matrix Organization: This is also called as project organization R-Chart (Range Chart): The R-chart shows the range or
it is a combination of all relationships in the organization in variation within each sample of data points. It is used in
vertical, horizontal and diagonal. It is mostly used in complex conjunction with the X-Bar chart to monitor the consistency of
projects. It provides a high degree of operational freedom, the process. Similar to the X-Bar chart, the R-chart has UCL and
flexibility and adoptability for both the line and staff managers LCL. A sudden increase in range may suggest that the process
in performing their respective roles. The main objective of is becoming less consistent.
matrix organization is to secure a higher degree of coordination
than what is possible from the conventional organizational 3. Discuss ABC analysis, SDE and VED Analysis?
structure as the line and staff. Ans: ABC Analysis: ABC analysis is a technique of controlling
inventories based on their value and quantities. It is more
remembered as an
analysis for „Always
Better Control‟ of
inventory. Here all
items of the inventory
are listed in the order of
descending values,
showing quantity held
and their corresponding
value. Then, the
inventory is divided into
three categories A, B
and C based on their
1. Explain the control charts used for attributes?
respective values.
Ans: Control charts, also known as Shewhart charts or process
A – Refers to high value item
behavior charts, are used in statistical process control (SPC) to
B – Refers to medium value item
monitor and analyze the quality of a process over time. Control
C – Refers to low value item
charts for attributes are specifically designed for processes that
produce discrete, non-measurable outcomes or characteristics,
SDE Analysis: SDE analysis classifies inventory items based on
often referred to as "defects" or "non-conformities." Here's a
their demand variability and predictability. SDE stands for
brief explanation of control charts for attributes:
Scarce, Difficult, and Easy.
P-Chart (Proportion Chart): The P-chart is used when you want
to monitor the proportion or percentage of defective items in a
sample from a process. It is particularly useful for processes that
have variable sample sizes. The chart helps determine whether
the proportion of defects is consistent over time or if there are
significant variations.
NP-Chart (Number of Defective Items Chart): NP-charts are
suitable when you want to monitor the absolute number of
defective items in a sample, regardless of sample size. This type
of chart is useful for processes where the sample size remains
constant.
C-Chart (Count of Defects Chart): C-charts are used when you
Categories:
want to monitor the count of defects or non-conformities within
Scarce (S Items): Items with irregular and infrequent demand.
a fixed sample size. This chart is beneficial when you need to
These items are often critical, and stockouts should be avoided.
track how many defects occur within a specific unit or item.
Difficult (D Items): Items with somewhat predictable demand.
U-Chart (Defects per Unit Chart): The U-chart is employed
Management requires moderate attention, and inventory levels
when you want to monitor the average number of defects per
are maintained with a balanced approach.
unit or item. This chart is useful for processes where the sample
Easy (E Items): Items with stable and predictable demand. These
size can vary, and it helps in understanding the variation in
items are easier to manage, and inventory levels can be more
defects per unit.
standardized.
2. Discuss about Mean chart and Range chart?
Ans: Control charts for variables, also known as Shewhart charts
or process-behavior charts, are essential tools in statistical
process control (SPC) for monitoring and analyzing variation in
measurable data points from a manufacturing or process system,
with two common types.
X-Bar and R-Chart (Average and Range Chart):
X-Bar Chart (Average Chart): The X-Bar chart displays the
average (mean) of a series of data points collected at regular
intervals from a process. The central line (CL) on the chart
represents the process's historical average. Upper Control Limits
(UCL) and Lower Control Limits (LCL) are calculated based on
VED Analysis: VED analysis classifies items based on their one time to minimize the cost of ordering and carrying the stocks.
criticality in terms of the impact of their shortage on production In other words, it refers to size of each order that keeps the total
or operations. VED stands for Vital, Essential, and Desirable. cost low.
Inventory costs: The inventory costs can be classified into two
categories, 1) Inventory ordering cost 2) Inventory carrying cost.

Inventory Ordering
Costs (Co): The cost
refers to the cost
incurred to procure
the materials
particularly in large
organizations, these
costs are significant.
This is also called as
procurement cost.
Definition: It is the cost of placing an order from a vendor. This
includes all costs incurred from calling for quotation to the point
at which the item is taken into
stock.
Categories: Inventory Carrying cost:
Vital (V Items): Items that are critical for production and whose Carrying cost which are also
shortage can cause a halt in operations. These items require close known as holding costs are the
monitoring and strict control. costs incurred in maintaining
Essential (E Items): Items that are necessary for smooth the stores in the firm. They are
operations but can be substituted or managed in case of shortage. based on average inventory
These items receive moderate attention. and consist of
Desirable (D Items): Items that, while nice to have, are not
critical for ongoing operations. Management attention and 6. Define Work Study? Explain the types of Work Study?
control for these items are relatively lower. Ans: Work study refers to the method study and work
measurement, which are used to examine human work in all its
4. Compare A B C analysis and FSN Analysis? contexts by systematically investigating into all factors affecting
Ans: its efficiency and economy to bring forth the desired
improvement.

Method Study: The systematic recording and critical

examination of existing and proposed ways of doing work, as a
means of developing and applying easier and more effective
methods and reducing cost it is also called motion study.
Basic procedure for Method Study:
Select: The work to be studied
Record: All the relevant facts of the present or proposed method
study by observation
Examine: The recorded facts are critically examined,
considering the purpose, location, sequence, person, and means
of the activity, taking into account the overall process and its
execution.
Develop: The most practical, economical and effective method
considering all the circumstances.
Define: The new method so that it can always be identified.
Install: The method as standard practice
Maintain: That standard practice by regular routine checks.
5. Outline the EOQ Technique? Recording: The current process of doing the job has to be
Ans: Economic recorded, while doing so every detail however small it may be,
Order Quantity has to be identified.
(EOQ): Economic
order quantity is Work Measurement: Work measurement is the application of
defined that techniques designed to establish time for a qualified worker to
quantity of carry out a specified job at a defined level of performance.
materials, which Procedure for Work Measurement:
can be ordered at
Sect: The work to be studied and determine the objectives of the The importance of inventory control in short can be summarized
study as follows:
Record: All the relevant data relating to circumstances in which Cost Management: Efficient inventory control helps minimize
the work is being done, the methods to be used breakdown the holding costs, reduce the risk of stockouts, and optimize order
job into its elements quantities, contributing to overall cost management.
Examine: The recorded data and the detailed breakdown Customer Satisfaction: Maintaining optimal inventory levels
critically to ensure the most effective method and motions are ensures timely product availability, preventing stockouts and
being used and that unproductive elements are separated from backorders, which enhances customer satisfaction and loyalty.
productive elements. Cash Flow Optimization: Proper inventory control prevents
Measure: The time required to complete each element using the excess tying up of capital in unsold goods, optimizing cash flow
appropriate work measurement techniques and calculate the for other critical business operations and investments.
time required to compete the work cycle which is known as basic Operational Efficiency: Effective inventory management
time. streamlines operations, reduces lead times, and enhances
Compile: The standard time for the operation or work place, in production and distribution efficiency, contributing to a
case of stop watch time study the various allowances to cover smoother workflow.
relation, personal needs etc. are added to the basic time to Risk Reduction: Inventory control helps mitigate the risk of
estimate the standard time. overstocking or stockouts, minimizing financial losses, and
ensuring the business can adapt to changes in demand and
8. Explain the ABC Analysis with graphical representation? market conditions.
Ans: ABC Analysis: ABC analysis is a technique of controlling Accurate Financial Reporting: Maintaining accurate and up-to-
inventories based on their value and quantities. It is more date inventory records is essential for precise financial reporting,
remembered as an analysis for “Always Better Control” of aiding in budgeting, forecasting, and decision-making.
inventory. Here all Order Fulfillment: Timely and accurate order fulfillment is
items of the inventory facilitated by maintaining the right inventory levels, improving
are listed in the order the overall responsiveness of the business to customer demands.
of descending values, Supplier Relationships: Proper inventory control allows for
showing quantity held better management of relationships with suppliers, ensuring
and their timely replenishment and negotiating favorable terms.
corresponding value. Seasonal Demand Management: Businesses can adjust
Then, the inventory is inventory levels based on seasonal variations in demand,
divided into three preventing excess stock during slow periods and shortages
categories A, B and C during peak seasons.
based on their Regulatory Compliance: Proper inventory management helps
respective values. ensure compliance with regulations related to inventory
accounting, traceability, and reporting.
A – Refers to high value item
B – Refers to medium value item 10. Define Material Management and Explain its objectives?
C – Refers to low value item Ans: Material management deals with controlling and regulating
A category comprises of inventory, which is very costly and the flow of materials in relation to changes in variables like
valuable. Normally 70% of the funds are tied up in such costly demand, prices, availability, quality, delivery schedules etc.
stocks, which would be around 10% of the total volume of Objects of materials management:
stocks. Because the stocks in this category are very costly, these 1.Minimization of materials cost s
require strict monitoring on a day-to-day basis. B category 2.To reduce inventory for use in production process and to
comprises of inventory, which is less costly. Twenty percent of develop high inventory turnover ratios.
the funds are tied up in such stocks and these accounts for over 3.To procure materials of desired quality when required, at
20% of the volume of stocks. These items require monitoring on lowest possible overall cost of the country.
a weekly or fortnightly basis. C category consists of such stocks, 4.To reduce paper work procedure in order to minimize delays
which are of least cost. Volume-wise, they form 70% of the total in procuring materials.
stocks but value-wise, they do not cost more than 10% of the 5.To note changes in market conditions and other factors
investment in the stocks, this category of stocks can be affecting the concern.
monitored on a monthly or bimonthly basis. 6.The purchase, receive, transport, store materials efficiently
7.To reduce cost, through simplification, standardization, value
analysis etc.
8.To conduct studies in new areas e.g., equality consumption
and cost of materials so as to minimize cost of production.

1. Explain the concept of HRM? Explain its Nature?

Ans: Human resource (HR) managers play a crucial role in any
organization, overseeing a wide range of functions that
contribute to the overall success of the company. They are
9. What is the importance of Inventory Control? responsible for attracting, developing, and retaining top talent,
Ans: Inventory: It defined as a comprehensive list of movable ensuring compliance with employment laws, and fostering a
items which are required for manufacturing the products and to positive and productive work environment.
maintain the plant facilities in working conditions. Nature of HRM:
Inventory Control: The systematic location, storage and People-oriented: HRM is all about people and their
recording of goods in such a way the desired degree of service contributions to the organization. It focuses on attracting,
can be made to the operating shops at minimum ultimate cost.
developing, retaining, and motivating a high-performing job. Four primary methods of job evaluations used to set
workforce. compensation levels are point factor, factor comparison, job
Action-oriented: HRM is not just about policies and procedures; ranking and job classification. Management uses the job
it is about taking action to improve employee performance and evaluation method to achieve equity in pay and formulate a
organizational effectiveness. formal wage and salary program that is accepted by all
Future-oriented: HRM anticipates future organizational needs employees and compensates all employee effort and hard work
and develops strategies to ensure a skilled and adaptable they put into their service.
workforce.
Continuous process: HRM is an ongoing process that adapts to 6. Define Marketing Management? What are the functions of
changing business conditions, technological advancements, and Marketing?
employee needs. Ans: Marketing management involves planning, executing, and
Universal application: HRM principles are applicable to all controlling marketing activities to achieve organizational goals,
types of organizations, regardless of their size, industry, or involving understanding customer needs, developing strategies,
location. and creating targeted campaigns.
The functions of marketing are:
2. Discuss the Functions of H.R. Manager?  Identifying customer needs: The first step in marketing
Ans: Human resource (HR) managers play a crucial role in any is to understand the needs and wants of customers. This
organization, overseeing a wide range of functions that can be done through market research, surveys, and
contribute to the overall success of the company. They are focus groups.
responsible for attracting, developing, and retaining top talent,  Developing marketing strategies: Once customer needs
ensuring compliance with employment laws, and fostering a are understood, marketing managers can develop
positive and productive work environment. strategies to reach and satisfy those needs. This
key functions of an HR manager: involves developing a marketing mix of product, price,
Recruitment and Selection: HR managers are responsible for place, and promotion.
recruitment and selection, which includes creating job  Creating marketing campaigns: Marketing campaigns
descriptions, advertising open positions, screening resumes, and are designed to promote products, services, or brands
conducting interviews. to target customers. They can include advertising,
Training and Development: HR managers offer various training public relations, social media, and direct marketing.
and development opportunities to employees, including  Managing marketing budgets: Marketing managers
classroom, on-the-job, and mentoring programs, aimed at must allocate resources to various marketing activities.
fostering skill growth and development. This involves developing a marketing budget and
Performance Management: HR managers are responsible for tracking expenses.
setting performance expectations, providing feedback,  Measuring marketing performance: It is important to
conducting performance reviews, and helping employees measure the effectiveness of marketing campaigns.
develop and achieve their career goals. This can be done through sales data, website traffic,
Compensation and Benefits: HR managers manage and social media engagement.
compensation and benefits programs, including salary structures,
bonuses, and retirement plans, ensuring competitiveness and 7. What is Product Life Cycle? Explain the Strategies based on
attractiveness through market research. Product Life Cycle?
Compliance: HR managers ensure compliance with employment Ans: Product Life cycle: Any product introduced to the market
laws and regulations by conducting audits, investigating is bound to have a shelf life. In essence, the journey of a product
complaints, and providing advice on compliance issues. - from its introduction to its decline is called the product life
cycle. As is often the case, every product goes through these
4. What is the difference between HRM and HRD analyse? stages of the product life cycle:
Ans: 1.Introduction Stage
2.Growth Stage
3.Maturity Stage
4.Decline Stage
The product life cycle offers distinct opportunities for marketers,
influencing sales. However, poor product life cycle management
has led to brand withdrawals in India. Therefore, an effective
strategy following these stages is crucial for determining a
product's success chances.
Introduction Stage: During this stage, the product is developed
through market research and is introduced to the market, with
sales increasing gradually as consumer demand and awareness
build.
Growth Stage: Consumers recognize the brand and its popularity
rise, forming a loyal consumer base as customers associate the
brand identity with the product, leading to upward trending
popularity.
5. What is job evaluation?
Maturity Stage: This stage signifies the peak of product
Ans: Job Evaluation can be defined as “a systematic and orderly
acceptance, with the market exhibiting signs of saturation and
process of determining the worth of a job in relation to other
sales slowing down frequently due to increased competition.
jobs”. – Edwin B.Flippo
Decline Stage: During the product life cycle, sales, popularity,
Job evaluation is the process of comparing a job with other jobs
consumer demand, and competitors' efforts often decline,
in an organization to determine an appropriate pay rate for the
despite companies' efforts to expand the product's lifespan, 7 P’s Marketing: The 4 P's marketing mix, introduced by Jerome
which is almost inevitable due to the common occurrence. McCarthy in his book "Basic Marketing: A Managerial
Approach," is a strategic blend of strategies used by a company
Key Strategies of Product Life Cycle: Understanding a product's to drive business and successful product promotion. The initial
life cycle stage aids businesses in developing effective elements were Product, Price, Place, and Promotion, later
marketing strategies, enabling management and marketing expanded to include People, Packaging, and Process, now
professionals to make informed decisions on advertising costs, known as the "7 P's" mix elements.
pricing strategies, expansion, and redesigning.
Strategy for Introduction Stage (Promotional Campaigns): The 7 elements of the marketing mix include the following:
Promoting a product before it enters the market is crucial for a Product: Product-led marketing prioritizes the benefits of your
company to build awareness, ensure product acceptance, and product or service to your customers, optimizing product lines
secure a monopoly, as it helps build awareness and reach the accordingly. This approach involves considering design, quality,
target audience, ultimately boosting the product's success. features, options, packaging, and market positioning in a
Strategy for Growth Stage (Loyalty Marketing Strategies): marketing mix, ensuring the best possible product for your
During this stage, competition rises with other brands vying for customers.
consumer attention. However, the first-born business maintains Price: A pricing model is influenced by various factors,
its reputation as the originator, necessitating various brand including the brand's target audience, market conditions, and the
retention strategies to build and maintain a loyal customer base. strategy to attract consumers. Brands can price their products
Strategy for Maturity Stage (Augmentation and Innovation): higher to create a higher-quality impression, similar to
Market saturation during this stage is crucial for augmentation competitors to highlight features or benefits, lower to break into
and innovation, as it allows for the removal of unpopular a crowded market, or raise prices to highlight updated models.
attributes and the addition of new features to surprise consumers. Promotion: Promotion is a crucial part of the marketing mix,
This shifts the product back into the growth stage, enhancing its encompassing advertising, content marketing, discounts, social
longevity and reversing the product's trajectory. media, email, display ads, digital strategies, marketing
Strategy for Decline Stage (Upcycling and Repurposing of communication, search engine marketing, and public relations,
Products): The product life cycle's decline stage is not the end, forming an omnichannel strategy for a unified customer
as companies can explore alternative avenues such as experience.
discontinuation or buy-outs, tapping into new markets, and Place: Market research and price decisions will guide product
creating renovated and adapted products. This allows for a placement, which extends beyond physical locations.
resumption of the product life cycle based on sales and strategies Considerations for placement include:
acquired during the decline stage. People: Recruit top talent at all levels, including customer
service and sales force, as people refer to anyone who indirectly
8. Define Channel of Distribution and explain various functions contacts your customer.
of channel of Distribution? Packaging: The text suggests ways to enhance a company's
Ans: Definition of channels of distribution - Channels of packaging to attract new buyers and retain returning customers
distribution (or a distribution channel) are channels of in a competitive marketplace.
businesses or intermediaries which a product or service travels Process: Prioritize processes that align with customer
through before reaching the final customer. These channels experience for smoother staff performance, allowing them to
often include: Wholesalers, distributors, retailers, online stores focus on providing exceptional customer experiences rather than
Direct: Manufacturer → Consumer navigating procedures.
Direct channels of distribution involve the manufacturer selling
the product directly to customers through a website or physical 10. Explain various wage payment Plans?
shop. Ans: Wages are fixed payments made to employees for a
Example: A good example is a farmer who would rather sell his specific period, usually hourly or daily, and are primarily
products directly to his customers through a farm stand instead associated with production workers. They are a variable cost for
of selling produce wholesale to a market. firms and vary with factors like demand and labor market
Indirect: Manufacturer → Wholesaler → Consumer fluctuations.
This channel introduces a new type of intermediary: the Governments in most countries mandate minimum wage levels
wholesaler. A wholesaler is a business that purchases products for workers, and employers are required to comply. They are
in bulk and sells them to retailers in bulk. only two types of wage payment plans.
Example: Since they benefit from economies of scale, they can 1. Time rate system: The time rate system pays workers based
profit by selling to various retailers at a slightly higher price than on their time spent, disregarding their production during a
the manufacturer. specific time period.
Hybrid: Manufacturer → retailer → Consumer Wages= number of hours worked* rate per hour
Suppose the worker is paid Rs 10 per hour and he worked for 15
A hybrid channel of distribution is a mix of direct and indirect
hours so his wages will be 15* 10 = Rs 150
distribution channels.
High wage rate: The plan offers a higher wage rate for workers
compared to the industry, requiring them to maintain high
9. How Marketing mix is important to business enterprise?
performance levels.
Explain its essential functions?
Graduated time rate: The wage rate in India fluctuates with the
Ans: Marketing mix: It is a selection of marketing tools that
general cost of living index, making it a preferred system for
include several areas of focus that can be combined to create a
workers during rising prices. The average graduated salary in
comprehensive plan. The term refers to a classification that
India is 130/- Rs per hour.
began as the 4 P’s: product, price, placement, and promotion,
2. Piece rate system: The piece wage system pays wages based
and has been expanded to Product, Price, Promotion, Place,
on output, regardless of time spent on the job. Efficient workers
People, Packaging, and Process.
earn higher wages due to their speed, as they produce more units
compared to inefficient workers. success in their strategy formulation and implementation
Wages= number of units produce* rate per unit process.
Suppose the worker is paid Rs 50 for per unit produced and he  Set Goals: Ensure realistic goals are set within timeframe
made 5 units then he will be paid wages= 5* 50= Rs 250. and resource allocation, determine company-specific or
Straight piece rate system: The payment system relies on the department-specific goals, identify potential obstacles,
fixed piece rate, where the wage is calculated by multiplying the and create contingency plans.
output by the fixed rate, such as 15/- per unit.  Determine Roles: Effective communication of your
Wage = (15)(50) = 750/- implementation strategy is crucial for defining
Piece rate with guarantee time rate: This wage payment system departmental responsibilities and outlining an action plan
is based on the quantity of output produced by workers, for colleagues and stakeholders.
calculated using time and piece rates, with higher wage rates  Assign Work: Effectively assign tasks to team members,
provided to those with more output. Standard output is 5 units ensuring they understand the project's goal and its support,
per hour, piece rate is 3/- and hourly rate applicable to all and clearly communicate deadlines to maintain project
workers is 15/- timelines.
Differential piece rate system: The system assigns different  Execute and Monitor: Implement your strategic plan,
wages to efficient and inefficient employees, with higher wages ensure team members have necessary resources, and
for those performing better, serving as a powerful motivator for regularly monitor progress to address any roadblocks.
workers to achieve standard performance.  Complete the job: Maintain team member monitoring to
3. Incentive System: Incentives are additional to normal wages ensure project progress, avoid additional resources, and
paid to efficient workers through various methods. inform stakeholders about job details or delays.
Halsey Premium Scheme: The Halsey Plan sets a fixed standard
time for job completion and a rate per hour. If a worker exceeds 4. Discuss the key elements of effective Strategic Management?
this time, they are paid according to the time rate, which is the Ans: Effective strategic management is crucial for organizations
time saved multiplied by the rate per hour. The typical bonus to navigate the complex and dynamic business environment,
share is 50% of the time saved. achieve their objectives, and sustain long-term success. Here are
This scheme can be further illustrated by the examples given key elements of effective strategic management:
below: Vision and Mission: Clearly defined vision and mission
Standard Time: 8 hrs statements provide a sense of purpose and direction for the
Rate per Hour: Rs 2 organization.
Case (1): Time Taken = 8 hrs Environmental Analysis: Thoroughly assessing the external
Earnings = 8 x 2 = Rs 16 environment, including industry trends, competitor actions, and
Case (2): Time Taken = 10 hrs economic factors, to identify opportunities and threats.
Earnings = 10 x 2 = Rs 20 Internal Analysis: Evaluating the organization's strengths and
Case (3): Time Taken= 6 hrs weaknesses, such as its resources, capabilities, and core
Earnings: competencies.
Time wages = 6x 2 = Rs 12 Goal Setting: Establishing specific, measurable, achievable,
Bonus = ½ x 2 x 2 = Rs Rs 2 relevant, and time-bound (SMART) goals to guide the strategic
Thus, in the above example, the worker’s total earnings are Rs14 planning process.
Strategy Formulation: Developing strategies that leverage
1. Define Goals? strengths, address weaknesses, capitalize on opportunities, and
Ans: Goal is defined as an objective, condition or something you mitigate threats.
desire to achieve or attain at any given period. Goals are Strategy Implementation: Executing the chosen strategies
outcome statements that outline an organization's programmatic effectively, involving the allocation of resources, organizational
and organizational objectives, consisting of related programs, structure adjustments, and aligning processes.
major actions, and rallying points for managers. Monitoring and Evaluation: Regularly assessing the progress of
For example, Wal-Mart's financial goals, such as increasing the strategic plan, making adjustments as needed, and ensuring
revenues by 20% annually or expanding its international empire, alignment with changing internal and external conditions.
can be viewed as a large umbrella with multiple spokes, with the Leadership and Communication: Strong leadership ensures
umbrella itself being a goal. They are different types of goals. commitment and alignment throughout the organization, while
Individual goals, Group goals, short term goals, Intermediate effective communication conveys the strategic vision to all
goals, long term goals. stakeholders.
Risk Management: Identifying and managing potential risks
2. Elaborate Objectives? associated with the strategic plan to minimize negative impacts
Ans: Objectives are the specific and measurable steps you take on the organization.
to achieve a larger goal. They provide direction and focus, and Adaptability: Recognizing the dynamic nature of the business
they help you stay on track and motivated. environment and being flexible in adapting strategies to meet
Example of an objective: Goal: Increase sales by 10% in the next evolving challenges and opportunities.
quarter. Objective: Increase website traffic by 20% in the next Organizational Culture: Fostering a culture that supports and
quarter. The objective is specific, measurable, achievable, reinforces the strategic objectives, encouraging innovation,
relevant, and time-bound, aiming to increase website traffic by collaboration, and continuous improvement.
20% in a quarter, thereby contributing to sales, and has a Ethical Considerations: Ensuring that strategic decisions and
deadline of the next quarter. actions align with ethical principles and social responsibility.
3. Explain how setting of Goals important to an organization? 5. What is Corporate Planning process?
Ans: There are seven key steps for an organization to achieve Ans: Corporate planning process: Corporate planning is a
strategic approach to setting and achieving organizations' goals,
enabling them to identify opportunities and methods that 1) General environment: The general environment comprises six
enhance the efficiency of their entire process. segments: political, economic, social, technical or technological,
A successful corporate plan has the six elements mentioned environmental, and legal, influencing an industry and its firms
below: within it.
Information: To create a successful corporate plan, gather data 2) Industry environment: The competition conditions affecting
on the company's current status and competitors to identify areas businesses offering similar products and services necessitate
for improvement and gain a larger market share, regardless of businesses to consider industry changes in their marketing
the data's quality. strategies.
Objectives and Strategies: Objectives are the overall plan's 3)International environment: The international business
outcome, while strategies are specific steps taken to achieve environment is a crucial ecosystem for businesses trading
organizational goals. For instance, a strategy could be boosting goods/services globally, encompassing cultural differences,
sales by 25% or ensuring a product becomes market leader by political affairs, taxation, and legal issues that shape a country's
the end of the financial year. economy.
Devising a plan of action: The company must create a
comprehensive plan that educates employees on its intricacies, 7. Discuss the SWOT Analysis in detail with examples?
which may involve employee training, a new production Ans: SWOT (strengths, weaknesses, opportunities, and threats)
approach, or a change in marketing strategy. analysis is a framework used to evaluate a company's
Implementation: The organization's growth strategy is executed competitive position and to develop strategic planning. SWOT
to achieve its objectives, but it only yields average results if analysis assesses internal and external factors, as well as current
executed flawlessly, with implementation varying depending on and future potential.
the specific plan's details. Definition: A frame work used to evaluate a company’s
Monitoring: The corporate planning manager oversees the competitive position and to develop strategic planning.
implementation process, monitoring progress and decline, as the Components:
plan is not a one-time action and requires regular supervision. Strengths: Strengths are unique qualities that distinguish an
Evaluation: The manager can review the progress, decline, or organization from competitors, such as a strong brand, loyal
stagnancy towards organizational goals after implementing the customer base, robust balance sheet, or unique technology. They
corporate planning strategy after a certain period. help organizations attract new investors and maintain market
dominance.
6. Explain about Environmental Scanning Process? Weaknesses: Weaknesses stop an organization from performing
Ans: Environmental scanning: It is the process of gathering at its optimum level. They are areas where the business needs to
information about events and their relationships within an improve to remain competitive: a weak brand, higher-than-
organization's internal and external environments. The basic average turnover, high levels of debt, an inadequate supply
purpose of environmental scanning is to help management chain, or lack of capital.
determine the future direction of the organization. Opportunities: Opportunities refer to favorable external factors
that could give an organization a competitive advantage. For
example, if a country cuts tariffs, a car manufacturer can export
its cars into a new market, increasing sales and market share.
Threats: Threats are potential harms to an organization, such as
drought, rising material costs, increased competition, and tight
labor supply, which can potentially destroy or reduce crop yield.
Steps to do SWOT Analysis: A SWOT analysis can be broken
into several steps with actionable items before and after
analyzing the four components are strengths, weakness,
opportunities, threats. In general, a SWOT analysis will involve
the following steps.
Step 1: Determine Your Objective - A SWOT analysis can be
broad, but more value is generated when focused on an objective.
For instance, if the objective is deciding whether to roll out a
Environmental analysis new product, the SWOT analysis can guide a company on the
It is a strategic technique used to identify all internal and desired outcome, helping them decide whether to introduce the
external factors that could affect a company’s success. Internal product.
components reveal the strengths and shortcomings of a company, Step 2: Gather Resources - A SWOT analysis requires a
while external components represent the opportunities and risks. company to understand its available information, data
This exists outside of the company. limitations, and the reliability of its external data sources to
Environmental Diagnosis create different tables and analyze different aspects.
It consists in a systematic identification of all environmental Step 3: Compile Ideas - The assigned group should begin listing
factors related with the activities of a given organization. The ideas within each category for each of the four components of
main goal is to verify the environmental performance of the the SWOT analysis.
organization.
External environmental analysis or evaluation External 8. What are the steps in Generic Formulation and
environmental analysis is a strategic planning process where Implementation?
entrepreneurs assess economic, social, official, supply, Ans: Strategy formulation involves creating plans and decisions
technological, and market conditions to identify opportunities to achieve an organization's strategic goals, while strategy
and challenges, subsequently adjusting their strategy and implementation involves successfully executing these plans to
objectives. These factors can be grouped under three parts of the achieve the desired outcome.
environment. Strategic planning process consists of the following stages:
There are seven key steps for an organization to achieve success It is an action that managers take to attain one or more of the
in their strategy formulation and implementation process. organization’s goals. Strategy is a detailed planning process that
1. Set Goals - Ensure realistic goals are set within timeframe and sets a general direction for a company to achieve a desired state
resource allocation, determine company-specific or department- in the future.
specific goals, identify potential obstacles, and create Corporate Strategy: Corporate strategy is a crucial aspect of a
contingency plans. company's success, involving high-level plans to manage
2. Determine Roles - Effective communication of your business units, allocate resources, identify growth opportunities,
implementation strategy is crucial for defining departmental and optimize organizational efforts. Vertical integration is a
responsibilities and outlining an action plan for colleagues and popular strategy, involving expanding operations into core
stakeholders. businesses to create cost efficiencies, secure supply chains, and
3. Assign Work - Effectively assign tasks to team members, enhance value proposition.
ensuring they understand the project's goal and its support, and Business Strategy: Business strategy is an organization's plan to
clearly communicate deadlines to maintain project timelines. gain a competitive edge in a market, driving growth, sales, and
4. Execute and Monitor - Implement your strategic plan, ensure customer attraction. It focuses on capturing market share,
team members have necessary resources, and regularly monitor streamlining operations, reducing expenses, and generating
progress to address any roadblocks. beneficial outcomes, with four key aspects: objective, vision,
5. Adjust and Revise - Staying agile during strategic resource allocation, and evaluation.
implementation is crucial for improving project outcomes. Shift Functional Strategy: Functional-level strategy involves
your approach as challenges arise, take corrective action, and departmental actions and decisions within an organization to
share updates with your team and stakeholders. align with long-term objectives and support the overall strategy.
6. Complete the Job - Maintain team member monitoring to It encourages businesses to utilize unique capabilities and
ensure project progress, avoid resource requirements, and resources, updating processes, tools, technology, and structure
inform stakeholders about job details or progress delays. for market entry, customer service enhancement, and revenue
7. Review and Reflect- The final step involves conducting a generation.
retrospective of strategy implementation, reflecting on the
overall process and evaluating what went well and what didn't. 1. Explain the concept of Management Information System?
Ans: Management Information Systems are computer-based
9. Discuss about Generic Strategy alternatives? systems that process data into information, communicating it to
Ans: Michael Porter's 1985 book Competitive Advantage various departments within an organization to support
introduced generic strategy, which consists of cost leadership, operations, management, and decision-making.
differentiation, and focus as three competitive methods for a According to G.B Davis: Management Information System is an
firm. integrated man or machine system for providing information to
Strategy alternatives, as per GLUECK, involve a company's hold up the operations, management and decision-making
decision to continue or change its current business or enhance functions in an organization.
its efficiency and effectiveness in achieving its corporate objectives of MIS:
objectives in its chosen sector, including stability, expansion, Data Capturing: MIS capture data from various internal and
retrenchment, and any combination thereof. external sources of the organization. Data capturing may be
manual or through computer terminals.
1.Stability strategy - The strategy entails continuous Processing of Data: The captured data is processed to convert
enhancement of functional performance in relation to customer into the required information. Processing of data is done by such
groups to ensure business success. activities as calculating, sorting, classifying, and summarizing.
Example: The photocopier machine company enhances its Storage of Information: MIS stores the processed or
company image and product sales by providing superior after- unprocessed data for future use. If any information is not
sales service to its existing customer groups. immediately required, it is saved as an organization record, for
2 Expansion strategy - A company expands its customer base to later use.
enhance its performance, either individually or in partnership Retrieval of Information: MIS retrieves information from its
with another company. stores as and when required by various users.
Example: A printing firm transitions from traditional letter press Dissemination of Information: Information, which is a finished
printing to desktop publishing to enhance production and product of MIS, is disseminated to the users in the organization.
efficiency. It is periodic or online through a computer terminal.
3. Retrenchment strategy - A company significantly reduces its
scope to its customer groups to enhance its performance 2. What is Material Resource Planning? Explain?
individually or jointly. Ans: It is an approach to inventory management in which a
Example: A corporate hospital aims to increase revenues by company uses a computer to predict the timing and quantity of
focusing solely on specialty treatment and reducing its the material needed to complete a production process.
commitment to less profitable general cases. Definition: The Material Requirements Planning or MRP is a
4 Combination strategy - A company combines stability, subset of the Inventory Control System. It determines the exact
expansion, and retrenchment simultaneously or at different quantity of dependent demand items required for production as
times in different businesses to enhance performance. specified in the Mater Production Schedule.
Example: A paint company expands its product range to Objectives of MRP: When it comes to the MRP inventory
industrial and automotive paints, offering a wider variety to management system, there are three primary objectives that the
customers, while retrenchment involves closing a division that software seeks to provide.
handles large-scale painting jobs.  To ensure that raw materials are readily available for
production and products are readily available for delivery
10. What is Strategy? Explain various types of Strategies? to consumers.
Ans:
  To sustain the lowest raw materials and finished product 7. Refine: Reduce the number of parts and steps in production
levels in store. by refining, standardizing and reviewing the entire process.
 To organize manufacturing, delivery schedules, and 8. Review: Implement quality measures and metrics, analyze
purchasing activities. root causes of issues, focus on improvements, and track trends
to enhance every aspect of JIT.

4. What is Six Sigma?

Ans: Six Sigma is a methodology for process improvement
developed by a scientist at Motorola in the 1980s. Six Sigma
practitioners use statistics, financial analysis, and project
management to achieve improved business functionality and
better-quality control by identifying and then correcting
mistakes or defects in existing processes.
Advantages:
 Six Sigma is a customer-driven approach that focuses on
maximizing customer satisfaction, minimizing defects, and
delivering innovative solutions to exceed customer expectations.
 The Six Sigma methodology leads to increased profitability
and cost reduction, indicating that the improvements achieved
directly impact financial outcomes.
Step 1: Estimation of Net Requirements to meet demand – The  Six Sigma is effectively applied across various business
process involves determining demand, disintegrating end sectors, resulting in significant growth in return on sales, return
product into items, acquiring required materials from BOM, and on investment, employment, and stock value.
converting gross requirements from MPS into net requirements.  Six Sigma targets Variation in the processes and focuses on
Step 2: Evaluate existing Inventory against demand – The the process improvement rather than final outcome.
existing inventory was compared to the demand received after
assessing the net requirement check. Using this formula Total 5. Define Total Quality Management?
number of units needed – Available stock Ans: Definition: Total Quality Management is a customer-
Step 3: Scheduling Production - The next step involves oriented process aimed at continuous improvement of business
scheduling production, allocating workers, and determining operations, focusing on improving product or service quality,
delivery times and dates for the required quantity. MRP involves production processes, and service rendering. It emphasizes fact-
two-way scheduling, i.e. Forward or Backward Scheduling based decision making and performance metrics for monitoring
Backwards scheduling: It begins with ascertaining the on-shelf progress.
date of the product. And the scheduling takes place in the Total Quality Management (TQM) is a management technique
backward direction. that encourages employees to continuously enhance their ability
Forward Scheduling: In this, scheduling is based on the starting to provide high-quality products and services to customers.
date of the manufacturing process.
Step 4: Monitoring and Review - The last step is keeping track 6. Give a brief account of the evolution of Enterprise Resource
of the complete process. In addition, taking necessary corrective Planning (ERP).
measures as and when required. Ans: A business management process that integrates various
aspects of a company, often using software, such as planning,
3. Analyse Just-In-Time? purchasing, inventory, sales, marketing, finance, and human
Ans: Just-in-time (JIT) is an inventory management system that resources.
involves working closely with suppliers to ensure raw materials The evolution of Enterprise Resource Planning (ERP) can be
arrive on time for production. The goal is to have the minimum summarized in the following key stages:
inventory on hand to meet demand, improving efficiency, Early MRP Systems (1970s): ERP's origins can be traced back
controlling production, and reducing wastage during production. to 1970s Material Requirements Planning (MRP) systems,
1. Design: The JIT process involves a thorough review of which were designed to manage manufacturing processes by
product design, process design, personnel, and manufacturing tracking and planning material use.
planning, implementing strategies to minimize disruption, waste, MRP II (1980s): In the 1980s, MRP II expanded beyond
and create a flexible system. materials to include labor and machine capacity, promoting
2. Manage: A TQM review is a management process that integrated planning for broader business functions.
ensures continuous improvement by defining workers' roles, ERP Emergence (1990s): ERP systems in the 1990s integrated
implementing statistical quality control, stabilizing schedules, MRP II with finance, HR, and supply chain management to offer
and checking load and capacity levels. a comprehensive view of an organization's resources.
3. Pull: The team will be educated on production and withdrawal Internet and Web-Based ERP (2000s): The internet
methods using signaling methods like Kanban, and lot size revolutionized ERP systems by transitioning them to web-based
policies will be reviewed and reduced accordingly. platforms, enhancing accessibility and enabling real-time
4. Establish: Effective vendor relationships are crucial for JIT collaboration across different geographies.
success. Review vendor lists, choose preferred suppliers, Cloud-Based ERP (2010s - Present): Cloud computing
negotiate contracts, discuss lead times, and learn to maximize revolutionized ERP solutions, offering increased flexibility,
usage metrics in the supply chain. reduced infrastructure costs, and easier scalability due to its
5. Fine-tune: Determine inventory needs, policies, controls and increased prominence.
reduce inventory movements. Mobile ERP and User Experience (2010s - Present): ERP
6. Build: Inform your team about the necessary skills and systems have been optimized for mobile use, enabling users to
capabilities for their work and conduct team education and
empowerment sessions to educate them.
access crucial business information on smartphones and tablets, 2. Customer perspective: The customer perspective evaluates a
while also improving user experience and interfaces. company's value to customers and their satisfaction with its
products or services, indicating its success and profitability. The
7. Explain the concept of Bench Marking and Balanced Score balanced scorecard helps organizations view themselves from
Card? the customer's perspective, allowing them to improve their
Ans: Definition: Benchmarking is a strategy that involves reputation. Strategies to enhance customer satisfaction include
comparing a company's performance to its competitors to improving product quality, enhancing the shopping experience,
identify areas for improvement. and adjusting prices of main products and services.
8 steps in the benchmarking process 3. Internal business processes perspective: A balanced scorecard
1. Select a subject to benchmark: Benchmarking processes is helps businesses evaluate their internal processes and products
crucial for a company's success. Executives and senior or services, assessing their effectiveness and conformity to
management should determine critical processes and prioritize customer standards. It helps formulate marketing strategies and
them based on key metrics, focusing on easily quantifiable pursue innovations, ultimately leading to improved customer
functions. After prioritizing, define the measures to be collected. satisfaction. The scorecard also helps answer the question,
2. Decide which organizations or companies you want to "What are we good at?", guiding the company towards better
benchmark: To benchmark processes within your company, a customer service.
competitor, or an outside company, choose multiple 4. Organizational capacity perspective: Organizational capacity
organizations to study to gather comprehensive data. Gather is crucial for achieving goals and objectives with positive results.
information from multiple sources to obtain detailed High-performing personnel in departments demonstrate
information about the chosen organization, as direct leadership, culture, knowledge application, and skill sets. Proper
benchmarking may be challenging to collect. infrastructure, such as the use of technology, is necessary for
3. Document your current processes Identify areas for management expectations and smooth activity flow.
improvement by mapping out your current processes, allowing
for easier comparison with the chosen organization. 8. Explain the levels of CMM Levies?
4. Collect and analyze data Gathering data from competitors can Ans: The Capability Maturity Model (CMM) is a software
be challenging due to potential confidentiality. Methods include development methodology developed by the Software
research, interviews, casual conversations, formal interviews, Engineering Institute (SEI), a research and development center
and questionnaires. Secondary information can be obtained from sponsored by the U.S. Department of Defense (DOD). SEI aims
websites, reports, marketing materials, and news articles. After to optimize the process of developing, acquiring, and
gathering data, gather stakeholders for analysis. maintaining heavily software-reliant systems for the DOD. The
5. Measure your performance against the data you’ve collected model is promoted by SEI and is still widely used today,
Comparing collected data with performance metrics from describing a five-level evolutionary path of increasingly
analysis can help identify areas of improvement. Layering organized and mature processes.
metrics on process diagrams or mapping competitor processes CMM's five levels of maturity for software processes
can help visualize gaps. There are five levels to the CMM development process. They
6. Create a plan Develop a comprehensive plan to address are the following:
performance gaps, requiring top-down buy-in, clearly defined 1.Initial: Initial processes are disorganized, chaotic, and
goals, and a company culture-friendly approach to minimize dependent on individual efforts, making them unrepeatable due
employee resistance and ensure smooth implementation. to inadequate definition and documentation.
7. Implement the changes Monitor changes and employee 2.Repeatable: The repeatable level involves establishing,
performance closely, identifying areas for improvement. Ensure defining, and documenting necessary processes, thereby
all employees understand their roles, are well-trained, and have establishing basic project management techniques and enabling
the necessary expertise. Document all processes and ensure the repetition of successes in key process areas.
access to necessary instructions to ensure everyone is working 3.Defined: An organization establishes its own standard
towards the same goal. software development process, focusing on documentation,
8. Repeat the process After implementing a new process, it's standardization, and integration at the defined level.
crucial to continue improving through the benchmarking 4.Managed: At the managed level, an organization effectively
process. Review the new processes and identify any necessary monitors and manages its processes through data collection and
changes. If everything runs smoothly, consider other areas or analysis.
ambitious projects to benchmark and start the process again. 5.Optimizing: At the optimizing level, processes are
continuously enhanced by continuously monitoring feedback
Balanced Scorecard: A balanced scorecard is a strategic and introducing innovative processes and functionality.
planning tool used by companies to assign priorities,
communicate goals, and plan routine activities, enabling 9. Explain the concept of Business Process Re-engineering and
monitoring and measurement of the success of their strategies. Balanced Score Card in detail?
Ans: Business process reengineering (BPR) is a significant
Four Perspectives of the Balanced Scorecard transformation of business processes to enhance quality, output,
1. Financial perspective: A company's financial goal is to earn a cost, service, and speed, thereby reducing enterprise costs and
return on investments and manage risks, satisfying the needs of redundancies.
shareholders, customers, and suppliers. Shareholders are crucial Five steps of Business Process Re-engineering (BPR)
as they provide capital and should be happy when the company Stakeholders must understand key steps in business process re-
achieves financial success. They want the company to generate engineering to maintain fairness, transparency, and efficiency,
revenues, improve profitability, and develop new revenue despite organizational differences.
sources. To achieve these goals, companies may introduce new 1. Map the current state of your business processes: Gather data
products, enhance their value proposition, and reduce business from all resources–both software tools and stakeholders.
costs. Understand how the process is performing currently.
2. Analyze them and find any process gaps or disconnects:
Identify errors and delays affecting process flow, ensuring all
details are available for stakeholders to make quick decisions.
3. Look for improvement opportunities and validate them:
Ensure all steps are necessary and remove any step solely for
person information, then add an automated email trigger.
4. Design a cutting-edge future-state process map: Develop a
new, effective process that addresses identified issues, ensuring
it works well and assigning Key Performance Indicators (KPIs)
for each step.
5. Implement future state changes and be mindful of
dependencies: The new process should be communicated to all
stakeholders, and only proceed after everyone is fully educated
and aware of its functionality.

10. What are the Components of Supply Chain Management?

Ans: Supply chain management involves optimizing a
company's productivity, ensuring production sustainability,
market growth, and delivering a convenient customer
experience.
Supply chain managers have two key responsibilities:
1.Ensure that customers can obtain products.
2.Ensure that the manufacturer can obtain the materials they
need to create the product.

Areas of supply chain management: Supply chain managers are

responsible for planning, sourcing, organizing, delivering, and
managing, each with specific tasks for each critical area.
1. Planning the supply chain network: Before signing contracts
or launching a product, meticulously plan each link in the supply
chain to ensure seamless transitions and clear stakeholder
responsibilities. Efficiency is crucial, as a lag in one component
can cause a "kink" in the chain, causing production delays and
downstream production issues.
2. Sourcing materials: The next step involves sourcing materials
for a product or service, including determining the supplier,
determining the quantity to order, tracking supply, and paying
suppliers. Ensure suppliers meet regulations for production and
consumer safety. Supply chain managers monitor price changes
and alternative supplier pricing to maintain anticipated product
prices.
3. Organizing manufacturers: The next step is to find the right
manufacturer, who turns raw materials into the final product.
Supply chain managers ensure quality testing, and the
manufacturer handles packaging and delivery. Effective
communication between material sourcing, manufacturing, and
delivery is crucial for maintaining production flow.
4. Delivery of the product: Effective supply chain logistics is
crucial for managing product delivery, as damaged products,
delayed delivery, or incorrect orders can damage the company's
reputation and lead to customer loss.
5. Managing return services: Implementing an efficient and
convenient return service is crucial for reducing product waste
and ensuring that customers can easily exchange or return their
items.