Why Patience Is Essential With an Online Business
One of the biggest reasons people fail with an online business is because they do not stick with one program long enough. While there are a number of opportunities to pursue online, you will never have success with any of them if you keep jumping from one to the next. Persistency is essential to have success with an online home business.
There are far too many entrepreneurs that expect to see results right away. And who can blame them with the numerous rumors and myths spread all across the internet claiming you can get rich over night. In reality, it takes time and patience before you will begin to see results.
After several weeks with little to show for the hard results, too many people quit hoping to find success with a different opportunity on the internet. The problem is that all you will find by doing this is the same thing as the last opportunity. It takes patience to see results.
The reason patience is essential with an online business is because it takes time to build up the business. Marketing and advertising alone takes a great deal of time to reel in visitors to the site. You have to work your way up from the bottom of the totem pole to gain people’s attention and respect. Without marketing nobody knows that you or your business even exists.
While marketing your business you have to find time to continuously add to and upgrade your website. This means constantly adding fresh and enticing content, making every web page appealing with graphics and animations, and doing whatever it takes to set your site apart from your competitors.
In the meantime, you have to take time to respond and follow up with each of your visitors and customers. Customer service can make or break your online business because it is the customer that decides whether or not to purchase from you. This alone can be considered a full job.
As you can see, there are multiple facets you take on having an online business. Therefore, it is preposterous to think that you can get rich over night. If you truly want to succeed with an online business, time and patience is crucial to making it work. Jumping from business to business is only going to delay the inevitable. It can be frustrating putting in a great amount of effort and seeing little to no results whatsoever in the beginning. But over time, the rewards will far outweigh the effort you put forth.
Choosing Good Employees For Your Business
No matter what kind of business you have, hiring the right people is the key to making it successful. You need good employees and if you start out with the right group of people, your business will become successful much quicker than if you have to go through a process of hiring and firing people because they just are not the right people to meet your needs.
One o the mistakes you want to avoid is hiring your friends and relatives just because they expect it. Certainly, if they are qualified to do the job, there is no reason not to hire them as long as you are capable of separating business relationships from personal relationships. In other words, there must be an understanding that they will be treated no differently at work than any other employee and that you will not make any special allowances.
If you fail to do that, you are setting yourself up for controversy from your friends and relatives because you do not treat them differently from your other employees. Most new business owners do not have a clue about hiring people to work for them, so you may have to consider getting some college credits on human resource education and tactics, choosing good employees or similar subjects. If you are not comfortable with the idea of hiring staff members, you might enlist the services of a recruitment firm to at least help you get some prospects into prospective.
It is important to remember that the agencies are not free, so you may not have the funding that is necessary to enlist their assistance. However, the state employment service is free and there is an office in every state and county within that state. You will learn by your mistakes but you also want to make sure to make those minimal by learning the right questions to ask and making it a point to check previous references. Do nt trust your gut or instincts, because they are not always correct.
When you hire people to help you with your business, do not hire them because they looked nice or talked nice but combine all of the qualities into forming a profile of each person you interviewed. At the same time, do not look past the person who comes to the interview dirty and unkempt because unless he or she is coming directly from another job, this is an indication of what to expect from that person.
Also, if someone is late for an interview with no valid excuse, it may be an indication of a poor record of punctuality. Even the person who came from another job unkempt must not be taken at face value. Consider whether they left the job in enough time to clean up or whether you could have scheduled the interview a little later. The first impression is the lasting one, so keep in mind your first impression when you make your choice.
Tuesday, January 20, 2009
Interim Management
Interim Management – The Dynamic Demographic
Forget the corporate ladder, increasing numbers of the most talented in the workforce are moving into the interim management market. Moreover, interim management as a career option is fast losing the ‘pale, male and stale’ reputation that was held ten or so years ago. The new generation of interim managers reflect a younger, more dynamic demographic. Those with talent have a wider arena to excel and succeed, regardless of age or gender.
The previous perception – that most interim managers were males, close to retirement age who wanted more time on the golf course and less time in the office, whilst still earning enough to pay for long lunches at the nineteenth hole – is now as outmoded as plus fours. With talent and skills in ever-increasing demand, interim management opens up the perfect playground to be recognized for key skills, whilst gaining a range of valuable experiences, and opportunities that might have been withheld in the past.
More women are taking the interim route, recognizing that there are key advantages to this freelance option. For women juggling a career with child-care obligations, interim management creates greater opportunities to have more control over home/work balance, or at least feel that they are able to priorities their needs on their terms to a greater extent. For example, timing the end of an assignment to coincide with long summer holidays offers an option to take time out without jeopardizing a career. There is also a growing recognition that some key elements of interim contracts can be undertaken at home, without the need to spend weeks in a hotel. So, it’s clear to see why a growing number of talented women are stepping in to this market.
There is, of course, a downside. As anyone who is essentially self-employed knows, life can feel precarious until the next work contract is negotiated. However, as more women step into interim management, they are also finding that it can provide a faster route to promotion and pushing the ‘glass ceiling’ of upper management, than remaining with one employer. Since interim managers are ‘judged’ purely on skills and expertise, many office bound prejudices lose momentum. What a relief to be free from office politics, or judgement about potential maternity leave and to be respected purely for the skills that you bring to an assignment.
With a recognised ‘war for talent’ acknowledged in every board room it’s not just women who are reaping the rewards as interim managers. As a career path, it can offer greater potential for those with drive and ambition, regardless of age. Talented thirty somethings can build an impressive CV, without stepping on toes; undertaking an assignment with a clear remit, won’t pose a threat to the established workforce, as, after all, they are only temporary.
Interim management is here to stay and doing well, in part, as a direct result of shaking up traditional corporate demographics. Perhaps the only threat it might pose is to the ‘old boys’ on the golf course.
Forget the corporate ladder, increasing numbers of the most talented in the workforce are moving into the interim management market. Moreover, interim management as a career option is fast losing the ‘pale, male and stale’ reputation that was held ten or so years ago. The new generation of interim managers reflect a younger, more dynamic demographic. Those with talent have a wider arena to excel and succeed, regardless of age or gender.
The previous perception – that most interim managers were males, close to retirement age who wanted more time on the golf course and less time in the office, whilst still earning enough to pay for long lunches at the nineteenth hole – is now as outmoded as plus fours. With talent and skills in ever-increasing demand, interim management opens up the perfect playground to be recognized for key skills, whilst gaining a range of valuable experiences, and opportunities that might have been withheld in the past.
More women are taking the interim route, recognizing that there are key advantages to this freelance option. For women juggling a career with child-care obligations, interim management creates greater opportunities to have more control over home/work balance, or at least feel that they are able to priorities their needs on their terms to a greater extent. For example, timing the end of an assignment to coincide with long summer holidays offers an option to take time out without jeopardizing a career. There is also a growing recognition that some key elements of interim contracts can be undertaken at home, without the need to spend weeks in a hotel. So, it’s clear to see why a growing number of talented women are stepping in to this market.
There is, of course, a downside. As anyone who is essentially self-employed knows, life can feel precarious until the next work contract is negotiated. However, as more women step into interim management, they are also finding that it can provide a faster route to promotion and pushing the ‘glass ceiling’ of upper management, than remaining with one employer. Since interim managers are ‘judged’ purely on skills and expertise, many office bound prejudices lose momentum. What a relief to be free from office politics, or judgement about potential maternity leave and to be respected purely for the skills that you bring to an assignment.
With a recognised ‘war for talent’ acknowledged in every board room it’s not just women who are reaping the rewards as interim managers. As a career path, it can offer greater potential for those with drive and ambition, regardless of age. Talented thirty somethings can build an impressive CV, without stepping on toes; undertaking an assignment with a clear remit, won’t pose a threat to the established workforce, as, after all, they are only temporary.
Interim management is here to stay and doing well, in part, as a direct result of shaking up traditional corporate demographics. Perhaps the only threat it might pose is to the ‘old boys’ on the golf course.
The Circle Manifesto: A New Economic Model
The Circle Manifesto: A New Economic Model Based On Ancient Wisdom
Most businesses are structured like pyramids. People and resources are used to benefit those at the top who set policy to achieve maximum profit. This narrow focus, mandated in publicly held companies by the law of our land, has turned our basic human need for exchange into a destructive pattern.
"Consumers" slowly undermine their own wellbeing by supporting companies that function within local economies as neo-colonial entities. Money, disconnected from a place, is exported up to shareholders, leading to the fragmentation of economy and community. A few people at the top of the pyramid get very rich while we buy ten-dollar jeans at Wal-Mart and wonder where the money is for local schools.
Triangles - which make up pyramids - serve a vital function in nature (look at the tips of feathers, shark fins, waves or teeth). Triangles are about movement toward goals. But in nature, this triangular movement nurtures relationships to find a greater balance based on radical equality and interdependence: the circle.
Over the last eleven years, my wife and I have attempted to run our company based on the circle wisdom teachings of indigenous elders. We knew nothing about business when we started but we saw how it is that everything around us is alive and has a right to exist. Like fools, we sought to bring this understanding into the business world.
We noticed how decisions are based on a hierarchy of values that is often determined by societal patterns. A pyramidal business model becomes a story that is often constellated around war, competition and hierarchy. A circle-based approach, however, requires considering community and the right of all that is to exist in the center of one's decision making. One asks, is my action going to strengthen our interdependence or not?
Over time, we came up with this definition of purpose for a business based on circle wisdom to test our decision making processes:
The purpose of a circle-based business is to benefit community through relationships that are nurtured by fair and equitable exchange. Every person inside and outside of the business is viewed as equal in their humanity.
Our initial attempt to make our company circle-based brought contradictory results. Before I went into business I was a service volunteer, monk and high school teacher. Focus on money and numbers were both corrosive and grounding to my idealism, yet as I put my house on the card table and watched our company plummet into debt, I saw how it was entirely necessary. We could not actualize many of our values because we were just trying (praying) to forge relationships (sales) that would allow us to pay the next bill.
Yet we saw how nature's circles build prosperity and abundance. The foundation of any circle-based business is generosity toward employees. If one person takes more than their share out of the circle, you begin to become a pyramid. As soon as we began to feel some stability, we were able to implement a strong benefit package and pay ourselves.
Compensation is only one part of being circle-based. You also have to attend to how the energy flows around an organization. Ten employees means one hundred and twenty possible relationships.
A few years ago we learned how just one unhealthy, platonic relationship between two employees can create a situation that painfully impacts the entire organization. Emotional and spiritual well being of everyone in the circle viewed equally in their humanity requires a lot of vigilance and skill from all who form the company.
Circle-based business is a paradigm shift for everyone involved. The employee says, "You're the boss," which is correct. But a circle is strengthened by everyone taking responsibility for their arc. We avoid top-down unilateral decisions, and empower everyone to hold their own arc so that we can focus, as business leaders responsible for the flow of the whole, on prosperity for everyone.
Studies in the Harvard Business Review1 back the notion of how attending to the well being of employees is a best business practice. Increased commitment from employees who love their job can lead to a 57% increase in an employees' discretionary effort, a 20% increase in individual productivity and an 87% reduction in the desire to leave. (We've had three people quit in ten years.) The greatest indicator of business success is repeat business that comes from customer satisfaction. The greatest indicator of customer satisfaction is employee investment.
From a strong inner company circle, the circle-based businesses must also serve the greater Circle of Life, which is where this model becomes even more challenging.
Despite my efforts to be as green as we can, my business has a negative impact simply because our industry is not yet adequately supported by a market and supply chain. I finally have a supplier for recycled gold and silver, but can I afford to print our catalog on recycled paper when it doubles our cost? Not this year.
Since it costs more money to run a business in a way that serves the greatest good, the circle-based approach is ultimately a "spiritual" endeavor. Survival (ideally prosperity...) must be weighed against fair and equitable exchange. One lives in ethical gray areas. Finding the balance between money, humanity and sustainability becomes a kind of koan. Yet breaking free of current internal and external structures that no longer serve the common good can free a huge amount of human spiritual potential.
Ultimately, economy is either leading toward supportive interconnection, or toward our continued fragmentation. If we are to survive, we must begin to see how giving back is the only way to generating prosperity and abundance for all.
Most businesses are structured like pyramids. People and resources are used to benefit those at the top who set policy to achieve maximum profit. This narrow focus, mandated in publicly held companies by the law of our land, has turned our basic human need for exchange into a destructive pattern.
"Consumers" slowly undermine their own wellbeing by supporting companies that function within local economies as neo-colonial entities. Money, disconnected from a place, is exported up to shareholders, leading to the fragmentation of economy and community. A few people at the top of the pyramid get very rich while we buy ten-dollar jeans at Wal-Mart and wonder where the money is for local schools.
Triangles - which make up pyramids - serve a vital function in nature (look at the tips of feathers, shark fins, waves or teeth). Triangles are about movement toward goals. But in nature, this triangular movement nurtures relationships to find a greater balance based on radical equality and interdependence: the circle.
Over the last eleven years, my wife and I have attempted to run our company based on the circle wisdom teachings of indigenous elders. We knew nothing about business when we started but we saw how it is that everything around us is alive and has a right to exist. Like fools, we sought to bring this understanding into the business world.
We noticed how decisions are based on a hierarchy of values that is often determined by societal patterns. A pyramidal business model becomes a story that is often constellated around war, competition and hierarchy. A circle-based approach, however, requires considering community and the right of all that is to exist in the center of one's decision making. One asks, is my action going to strengthen our interdependence or not?
Over time, we came up with this definition of purpose for a business based on circle wisdom to test our decision making processes:
The purpose of a circle-based business is to benefit community through relationships that are nurtured by fair and equitable exchange. Every person inside and outside of the business is viewed as equal in their humanity.
Our initial attempt to make our company circle-based brought contradictory results. Before I went into business I was a service volunteer, monk and high school teacher. Focus on money and numbers were both corrosive and grounding to my idealism, yet as I put my house on the card table and watched our company plummet into debt, I saw how it was entirely necessary. We could not actualize many of our values because we were just trying (praying) to forge relationships (sales) that would allow us to pay the next bill.
Yet we saw how nature's circles build prosperity and abundance. The foundation of any circle-based business is generosity toward employees. If one person takes more than their share out of the circle, you begin to become a pyramid. As soon as we began to feel some stability, we were able to implement a strong benefit package and pay ourselves.
Compensation is only one part of being circle-based. You also have to attend to how the energy flows around an organization. Ten employees means one hundred and twenty possible relationships.
A few years ago we learned how just one unhealthy, platonic relationship between two employees can create a situation that painfully impacts the entire organization. Emotional and spiritual well being of everyone in the circle viewed equally in their humanity requires a lot of vigilance and skill from all who form the company.
Circle-based business is a paradigm shift for everyone involved. The employee says, "You're the boss," which is correct. But a circle is strengthened by everyone taking responsibility for their arc. We avoid top-down unilateral decisions, and empower everyone to hold their own arc so that we can focus, as business leaders responsible for the flow of the whole, on prosperity for everyone.
Studies in the Harvard Business Review1 back the notion of how attending to the well being of employees is a best business practice. Increased commitment from employees who love their job can lead to a 57% increase in an employees' discretionary effort, a 20% increase in individual productivity and an 87% reduction in the desire to leave. (We've had three people quit in ten years.) The greatest indicator of business success is repeat business that comes from customer satisfaction. The greatest indicator of customer satisfaction is employee investment.
From a strong inner company circle, the circle-based businesses must also serve the greater Circle of Life, which is where this model becomes even more challenging.
Despite my efforts to be as green as we can, my business has a negative impact simply because our industry is not yet adequately supported by a market and supply chain. I finally have a supplier for recycled gold and silver, but can I afford to print our catalog on recycled paper when it doubles our cost? Not this year.
Since it costs more money to run a business in a way that serves the greatest good, the circle-based approach is ultimately a "spiritual" endeavor. Survival (ideally prosperity...) must be weighed against fair and equitable exchange. One lives in ethical gray areas. Finding the balance between money, humanity and sustainability becomes a kind of koan. Yet breaking free of current internal and external structures that no longer serve the common good can free a huge amount of human spiritual potential.
Ultimately, economy is either leading toward supportive interconnection, or toward our continued fragmentation. If we are to survive, we must begin to see how giving back is the only way to generating prosperity and abundance for all.
Certificate Of Deposits
All about CDs (Certificate Of Deposits)
When the richest people in the world are asked to give advice about how to earn and retain money, their response almost always resounds with the same principles: Your money should always be working for you, instead of you working for it.
The ideal situation is to put your money into something with a high rate of return. Then, while you are enjoying life, your money is constantly returning more. One option is to put your money in a CD (Certificate of Deposit), which is a type of account offered by many banks. They don't work like regular bank accounts. So if you've been contemplating ways to make your money work for you, read on.
CDs are characterized by being registered for at a fixed amount of time. When you put your money in, you tell the bank that you are going to leave it for a certain amount of time. The most common amounts are 3 months, 6 months, or any amount of years up to 5. The specific interest rate is set at the beginning, and does not change over the period of time.
The money in the CD is held until it 'matures', at which point the customer can withdraw it without bringing about any fees (which are applied if he or she withdraws before the date of maturation).
This may sound like a bad deal, but consider this: since the customer has to put up with having their cash unavailable for so long, they have their diligence rewarded with a particularly high interest rate. This is the aspect that attracts people to using CDs. Since they are offered by regular banks, they are completely insured. This makes them an almost entirely risk free investment, as long as you know you won't need the money.
If you've got a large sum of money sitting around and you're not doing anything else with it, then you should make every effort to put it to work. Some people are not cut out for high risk investments like the stock market. If this is the case, then the calm assuredness of CDs could be perfect for you.
Talk to people at your local banks to find their specific terms and conditions for CDs. Look for things like flexible liquidity, high interest rates, and time periods that suit your needs. Hopefully you will find something that is perfect for your finances, and will put your money to good use.
How to negotiate a better salary
If you want to make the most of your career you'll want to negotiate your salary in the best way possible. Where a lot of people make a mistake with that is, they talk about the salary that they expect to get on their resume or cover letter and that, can get them weeded out of the applicant pool before they ever even get an interview. You'll want to avoid any mention of how much you expect the company to pay you when you submit your application, resume, or cover letter to them. It's not a good idea, because you might set your expectations too high and be turned down right away. If you set them too low you could end up making your prospective employer think that you really aren't worth anything or that you have no confidence in yourself. Neither one of these scenarios is likely to get you an interview, much less get you the job. If you're specifically asked about a salary requirement you can state that you are looking for the market rate, or that your salary requirements are open but you're sure a company such as that one would pay market rate.
Those are nice ways to say that you expect to be paid well without coming out and putting a dollar figure on your employment opportunity. Once you've been through the entire recruitment process and have been hired is the time to start discussing dollar figures, because then you have a position of strength. The employer probably doesn't want to spend a lot of time going through the recruitment process with someone else, so he or she will be more willing to negotiate as long as you don't get greedy. Know in advance what the salary range is for your job in that area of the country and understand that you'll need to stay within that. An employer isn't going to want to pay more for what is essentially still an unknown quantity. You should also stick with the old adage that you won't get anything unless you ask. If you've shown the employer what you have to offer, ask for what you really think is fair and then negotiate from that point.
When the richest people in the world are asked to give advice about how to earn and retain money, their response almost always resounds with the same principles: Your money should always be working for you, instead of you working for it.
The ideal situation is to put your money into something with a high rate of return. Then, while you are enjoying life, your money is constantly returning more. One option is to put your money in a CD (Certificate of Deposit), which is a type of account offered by many banks. They don't work like regular bank accounts. So if you've been contemplating ways to make your money work for you, read on.
CDs are characterized by being registered for at a fixed amount of time. When you put your money in, you tell the bank that you are going to leave it for a certain amount of time. The most common amounts are 3 months, 6 months, or any amount of years up to 5. The specific interest rate is set at the beginning, and does not change over the period of time.
The money in the CD is held until it 'matures', at which point the customer can withdraw it without bringing about any fees (which are applied if he or she withdraws before the date of maturation).
This may sound like a bad deal, but consider this: since the customer has to put up with having their cash unavailable for so long, they have their diligence rewarded with a particularly high interest rate. This is the aspect that attracts people to using CDs. Since they are offered by regular banks, they are completely insured. This makes them an almost entirely risk free investment, as long as you know you won't need the money.
If you've got a large sum of money sitting around and you're not doing anything else with it, then you should make every effort to put it to work. Some people are not cut out for high risk investments like the stock market. If this is the case, then the calm assuredness of CDs could be perfect for you.
Talk to people at your local banks to find their specific terms and conditions for CDs. Look for things like flexible liquidity, high interest rates, and time periods that suit your needs. Hopefully you will find something that is perfect for your finances, and will put your money to good use.
How to negotiate a better salary
If you want to make the most of your career you'll want to negotiate your salary in the best way possible. Where a lot of people make a mistake with that is, they talk about the salary that they expect to get on their resume or cover letter and that, can get them weeded out of the applicant pool before they ever even get an interview. You'll want to avoid any mention of how much you expect the company to pay you when you submit your application, resume, or cover letter to them. It's not a good idea, because you might set your expectations too high and be turned down right away. If you set them too low you could end up making your prospective employer think that you really aren't worth anything or that you have no confidence in yourself. Neither one of these scenarios is likely to get you an interview, much less get you the job. If you're specifically asked about a salary requirement you can state that you are looking for the market rate, or that your salary requirements are open but you're sure a company such as that one would pay market rate.
Those are nice ways to say that you expect to be paid well without coming out and putting a dollar figure on your employment opportunity. Once you've been through the entire recruitment process and have been hired is the time to start discussing dollar figures, because then you have a position of strength. The employer probably doesn't want to spend a lot of time going through the recruitment process with someone else, so he or she will be more willing to negotiate as long as you don't get greedy. Know in advance what the salary range is for your job in that area of the country and understand that you'll need to stay within that. An employer isn't going to want to pay more for what is essentially still an unknown quantity. You should also stick with the old adage that you won't get anything unless you ask. If you've shown the employer what you have to offer, ask for what you really think is fair and then negotiate from that point.
The Risks of Investment
The Risks of Investment
No investment goes without risk. In fact, the two go hand in hand. Risk is the possibility of loss to an investment. With all investments there are risks.
There is no guarantee that you will receive all if any, of your maximum possible return. Fortunately there are varying degrees of risk in different
Investments and understanding these risks give one better chances are being able to mitigate their effects. The simplest risk is the loss of principle,
which is the original money invested. When buying stocks, mutual funds, even real estate there is no guarantee that all of the principle will be
regained. However, there are ways to avoid this risk. Putting money into a savings account is a surefire way to ensure the return of a principle
investment. Buying fixed term deposits, and investment grade surety bonds are also ways of ensuring the return of a principle investment. Market risk
is another type of risk to potential investors. This risk is the risk one takes when investing in a particular market, i.e. the United States Market. The idea
of market risk is based on the fact that if the an market will fall. When that happens all investments in that particular market will begin to slide, much
like what is happening today in the US market. To lessen the effects of market risk, the best idea is to diversify investments into many different
markets. This way, if one market fails, there are a few other to back up one’s investments. Of course investing in foreign market introduces
new risks such as currency risk, but the effects of these new risks are significantly lowered because of the investments are diversified. Inflation is
another type of risk to potential investors. Inflation risk involves the risk that the money of an investment will hold less value than it currently does. This
risk has the biggest effect on people who do not invest their money and instead leave it in a savings account gaining a small percentage each year. If
the money is invested in the stock market, as inflation grows so will the money invested. Unfortunately, inflation is a risk that never goes away. These
three are just a few basic risks to investments, there are many more. Risks like political risk, liquidity risk, reinvestment risk, manager risk, opportunity
risk, concentration risk, the list goes on. There are many risks out there, too many to list, but understanding these risks and playing the market right
can help diminish the effects of such risks.
No investment goes without risk. In fact, the two go hand in hand. Risk is the possibility of loss to an investment. With all investments there are risks.
There is no guarantee that you will receive all if any, of your maximum possible return. Fortunately there are varying degrees of risk in different
Investments and understanding these risks give one better chances are being able to mitigate their effects. The simplest risk is the loss of principle,
which is the original money invested. When buying stocks, mutual funds, even real estate there is no guarantee that all of the principle will be
regained. However, there are ways to avoid this risk. Putting money into a savings account is a surefire way to ensure the return of a principle
investment. Buying fixed term deposits, and investment grade surety bonds are also ways of ensuring the return of a principle investment. Market risk
is another type of risk to potential investors. This risk is the risk one takes when investing in a particular market, i.e. the United States Market. The idea
of market risk is based on the fact that if the an market will fall. When that happens all investments in that particular market will begin to slide, much
like what is happening today in the US market. To lessen the effects of market risk, the best idea is to diversify investments into many different
markets. This way, if one market fails, there are a few other to back up one’s investments. Of course investing in foreign market introduces
new risks such as currency risk, but the effects of these new risks are significantly lowered because of the investments are diversified. Inflation is
another type of risk to potential investors. Inflation risk involves the risk that the money of an investment will hold less value than it currently does. This
risk has the biggest effect on people who do not invest their money and instead leave it in a savings account gaining a small percentage each year. If
the money is invested in the stock market, as inflation grows so will the money invested. Unfortunately, inflation is a risk that never goes away. These
three are just a few basic risks to investments, there are many more. Risks like political risk, liquidity risk, reinvestment risk, manager risk, opportunity
risk, concentration risk, the list goes on. There are many risks out there, too many to list, but understanding these risks and playing the market right
can help diminish the effects of such risks.
Monday, January 19, 2009
QB -16 marks pom
ANAND INSTITUTE OF HIGHER TECHNOLOGY
KAZIPATTUR , CHENNAI
QUESTION BANK
PRINCIPLES OF MANAGEMENT /MG1351
PART –B SIXTEEN MARKS QUESTION
UNIT – I – HISTORICAL DEVELOPMENT
1. Explain the principle of F.W. Taylor theory.
2. Explain the Henry Fayol management theory.
3. What are the major functions of management explain?
4. Indicate the levels and skills of management.
5. Explain management is an art or science both science and art.
6. Indicate the roles of management by Henry Mintzberg.
7. Explain the contributions of Elton mayo and max Weber.
8. Explain the contributions of Mary porker Follett.
9. Describe the social responsibilities of management.
10. Explain the different types of Business organization.
UNIT –II – PLANNING
1. Describe the various elements in planning.
2. What are different types of plans? Explain.
3. Give an account of various steps involved in planning.
4. Describe the different objectives of planning.
5. Define MBO. List out the features of MBO.
6. Explain briefly the benefits and weakness of MBO.
7. State and explain the eight recommendations that should considered by managers for successful implementation of strategies.
8. Discuss the factors for strategies policies and planning premises..
9. Explain modern approaches to decision making under uncertainty.
10. Write short notes on any 2 important modern approaches to decision making under uncertainty.
11. Define Decision Making and explain the process of decision making that affects the efficiency of the business decisions.
12. Define forecasting. Explain the techniques of forecasting.
UNIT-III – ORGANISING
1.Define organization. Explain the nature of an organization.
2. Give a brief account of at least six mistakes in organizing.
3. Explain how formal organization is different from informal organization. Illustrate.
4. How does a leader influence organization culture?
5. Discuss about the factors determining an effective span of control.
6. Define Departmentation. Explain the various Departmentation.
7. Explain the line organization with a neat sketch.
8. Explain the concept of functional authority. How do you delegate it/
9. Explain the concept of decentralization.
10. Briefly explain the factors determining the degree of decentralization of authority.
11. Define HRP. Explain the steps involved in HRP.
12. What is recruitment? Explain the sources of recruitment.
13. Define selection. Explain the steps involved in selection process.
14. What do you mean by performance appraisal? Discuss its need and importance in an organization.
15. Explain the different methods of appraisal system.
16. What are the methods of training?
17. Explain the ten steps in formulating career strategy.
18. What is peter principle? What do you think of it?
19. Explain in detail the various types of conflict. Give examples that are relevant to each type of conflict.
20. Explain the role and characteristics of OD.
UNIT- IV - DIRECTING
1. Discuss the scope of directing.
2. What are the human factors in managing? Explain briefly each.
3. Discuss the various steps involved in creative process.
4. Describe theory X and theory Y.
5. What are some possible implications of theories X and Y, staffing, leading and controlling.
6. Enumerate the assumptions of Mc Gregor’s theory X and Y.
7. Define Motivation. Explain the maslow’s hierarchy needs.
8. Explain the concept Hertzberg two factor motivation theories.
9. What are the various types of motivation and explain each in detail.
10. Explain how motivation helps an organization to improve productivity?
11. Explain vroom,s expectancy theory.
12. Explain with neat flow diagram the porter and Lawler expectancy theories.
13. Briefly explain about the three types of basic motivating needs proposed by Mc cleeland.
14. Write short notes on the managerial grids.
15. Explain the different styles of leadership based on authority.
16. Explain the importance of strong leadership in the creation of cohesive work in an industrial organization.
17. Explain the qualities required for effective leadership.
18. What are the barriers to effective communication? Explain them.
19. Discuss the importance communication in a modern industrial organization.
20. What are communication barriers and suggest measures how communication be made effective?
UNIT-V – CONTROLLING
1. What is controlling? Discuss its needs. What do you think about the characteristics of good control system?
2. Explain the steps in the process of controlling.
3. Explain the types of control.
4. Explain the steps involving the implementations of Budgetary control.
5. Explain the classification of Budget.
6. PERT is management technique of planning and control. Explain
7. planning and control are the inseparable twins of management. Explain.
8. Explain the role of MIS play at various levels of management.
9. What tools generally found in operation research have been widely used in production and operations management?
10. What are the effective steps for direct control and preventive control?
11. What are the factors affect the operations of the multi national enterprises? Explain.
12. What advantages do multinational corporations have? What are the advantages of MNC?
13. Explain a unified global theory of management?
14. Discuss about the general steps involved in the operation research procedure?
15. Discuss the factors determining span of control.
KAZIPATTUR , CHENNAI
QUESTION BANK
PRINCIPLES OF MANAGEMENT /MG1351
PART –B SIXTEEN MARKS QUESTION
UNIT – I – HISTORICAL DEVELOPMENT
1. Explain the principle of F.W. Taylor theory.
2. Explain the Henry Fayol management theory.
3. What are the major functions of management explain?
4. Indicate the levels and skills of management.
5. Explain management is an art or science both science and art.
6. Indicate the roles of management by Henry Mintzberg.
7. Explain the contributions of Elton mayo and max Weber.
8. Explain the contributions of Mary porker Follett.
9. Describe the social responsibilities of management.
10. Explain the different types of Business organization.
UNIT –II – PLANNING
1. Describe the various elements in planning.
2. What are different types of plans? Explain.
3. Give an account of various steps involved in planning.
4. Describe the different objectives of planning.
5. Define MBO. List out the features of MBO.
6. Explain briefly the benefits and weakness of MBO.
7. State and explain the eight recommendations that should considered by managers for successful implementation of strategies.
8. Discuss the factors for strategies policies and planning premises..
9. Explain modern approaches to decision making under uncertainty.
10. Write short notes on any 2 important modern approaches to decision making under uncertainty.
11. Define Decision Making and explain the process of decision making that affects the efficiency of the business decisions.
12. Define forecasting. Explain the techniques of forecasting.
UNIT-III – ORGANISING
1.Define organization. Explain the nature of an organization.
2. Give a brief account of at least six mistakes in organizing.
3. Explain how formal organization is different from informal organization. Illustrate.
4. How does a leader influence organization culture?
5. Discuss about the factors determining an effective span of control.
6. Define Departmentation. Explain the various Departmentation.
7. Explain the line organization with a neat sketch.
8. Explain the concept of functional authority. How do you delegate it/
9. Explain the concept of decentralization.
10. Briefly explain the factors determining the degree of decentralization of authority.
11. Define HRP. Explain the steps involved in HRP.
12. What is recruitment? Explain the sources of recruitment.
13. Define selection. Explain the steps involved in selection process.
14. What do you mean by performance appraisal? Discuss its need and importance in an organization.
15. Explain the different methods of appraisal system.
16. What are the methods of training?
17. Explain the ten steps in formulating career strategy.
18. What is peter principle? What do you think of it?
19. Explain in detail the various types of conflict. Give examples that are relevant to each type of conflict.
20. Explain the role and characteristics of OD.
UNIT- IV - DIRECTING
1. Discuss the scope of directing.
2. What are the human factors in managing? Explain briefly each.
3. Discuss the various steps involved in creative process.
4. Describe theory X and theory Y.
5. What are some possible implications of theories X and Y, staffing, leading and controlling.
6. Enumerate the assumptions of Mc Gregor’s theory X and Y.
7. Define Motivation. Explain the maslow’s hierarchy needs.
8. Explain the concept Hertzberg two factor motivation theories.
9. What are the various types of motivation and explain each in detail.
10. Explain how motivation helps an organization to improve productivity?
11. Explain vroom,s expectancy theory.
12. Explain with neat flow diagram the porter and Lawler expectancy theories.
13. Briefly explain about the three types of basic motivating needs proposed by Mc cleeland.
14. Write short notes on the managerial grids.
15. Explain the different styles of leadership based on authority.
16. Explain the importance of strong leadership in the creation of cohesive work in an industrial organization.
17. Explain the qualities required for effective leadership.
18. What are the barriers to effective communication? Explain them.
19. Discuss the importance communication in a modern industrial organization.
20. What are communication barriers and suggest measures how communication be made effective?
UNIT-V – CONTROLLING
1. What is controlling? Discuss its needs. What do you think about the characteristics of good control system?
2. Explain the steps in the process of controlling.
3. Explain the types of control.
4. Explain the steps involving the implementations of Budgetary control.
5. Explain the classification of Budget.
6. PERT is management technique of planning and control. Explain
7. planning and control are the inseparable twins of management. Explain.
8. Explain the role of MIS play at various levels of management.
9. What tools generally found in operation research have been widely used in production and operations management?
10. What are the effective steps for direct control and preventive control?
11. What are the factors affect the operations of the multi national enterprises? Explain.
12. What advantages do multinational corporations have? What are the advantages of MNC?
13. Explain a unified global theory of management?
14. Discuss about the general steps involved in the operation research procedure?
15. Discuss the factors determining span of control.
QB 2 marks
ANAND INSTITUTE OF HIGHER TECHNOLOGY
KAZIPATTUR , CHENNAI
QUESTION BANK
MERCHANT BANKING AND FINANCIAL SERVICES/BA728
PART –A TWO MARKS QUESTION AND ANSWER
UNIT – I – HISTORICAL DEVELOPMENT
1. What is Management?
Management is the process of giving direction and controlling the various activities of the people to achieve the objectives of an organization.
2. Define Management.
According to Knootz and Weihrich “Management is the process of designing and maintaining of an environment in which individuals working together in groups, efficiently accomplish selected aims”.
3. Write some characteristics of Management.
Management is a continuous process.
Manager use the resources of the organization both physical as well as human to
Achieve goals.
Management aims act achieving the organization goals by ensuring effective use of Resources.
4. What are the roles of management in organization?
1. Management helps in determination of the objectives of an organization.
2. Economic and social development takes place through management.
5. Write any 2 points favor for management as a science.
1) Management principles should be verifiable.
2) Reliable basis through management.
6. Write any 2 points favor for management as an art.
i. Management is creative.
ii. Management includes the use of practical knowledge and personal skill.
7. Who is the father of Scientific management?
Frederick Winslow Taylor.
8. What is Time Study?
The movements which takes the minimum time is the best one.
9. What is Motion Study?
Taylor suggested that eliminating wasteful movements and performing only necessary movements.
10. Write Fayol’s 14 principles of management.
Division of work
Authority and Responsibility
Discipline
Unity of Command
Unity of direction
Individual interest to general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability
Initiative
ESprite de crops.
11. What is Authority?
It is the power given to a person to get work from the subordinates.
12. What is Responsibility?
It is the amount of work expected of from a man by his superior.
13. Comment: Management is both- A science and an art.
Management is a science because it contains general principles. It is also an art because it requires certain personal skills to be achieve desired results.
14. What is Centralization?
The organization is centralized when the power is concentrated with one person.
15. What is Decentralization?
If the power is fully distributed to the subordinates of the organization.
16. What is Esprit – de- crops?
This means union is strength. In organization employees should be harmony and unity.
17. What are Management Levels?
Top level
Middle level
Lower level
18. Write the functions of management.
Planning
Organizing
Staffing
Coordinating
Controlling
19. What are the essential skills need for the managers?
Technical skill
Human skill
Conceptual skill.
20. Define Sole trading.
The sole proprietorship is that form of business organization which is owned and controlled by a single individual.
21. What is Partnership?
A partnership is an association of two or more persons to carry on business and to share its profit and lossess.
22. What is Joint stock company?
A private limited company is a company which has a minimum paid up capital destroyed be prescribed.
24. What is a Co-operative society?
It is a voluntary association of persons for mutual benefit and it aims accomplished through self help and collective effort.
25. What is a social responsibility?
Society is the parts of the management to interact actions wither to protect social interest a society.
UNIT –II - PLANNING
1.Define planning.
Planning is the process of selecting the objectives and the determining the course of action required to achieve these objectives.
2. What are the objectives of planning?
Planning is the primary function of an organization
It helps in achieving objectives
It is done to cope with uncertainty and change
It helps in facilitating control
It helps in coordination
It increases organizational effectiveness.
It guides in decision making.
3. List out the features of planning.
Planning –a primary function
Planning – a dynamic process
Planning – based on objectives and policies
Planning – a selective process
Pervasiveness of planning.
4. What are the different types of planning?
STANDING PLANS SINGLE USE PLANS
Mission or purpose Programmes
Objectives Budgets
Strategies Schedules
Policies Methods
Procedures projects
Rules
5.Define Mission.
Mission may be defined as “as a statement which defines the role that an organization plays in the society ”.
6. Define objectives.
The term objectives or goals are often used interchangeably. Objectives are the end results towards which the activities of firm are aimed or directed.
7.What is meant by strategy?
Strategy of an organization is the programmes of action and deployment of resources to attain its objectives.
8. What are the factors to be considered while formulating strategies?
1. Mission and objectives of an organization.
2. Values, aspirations and prejudices of top level management
3. Opportunities and threads of the external environment.
4. Strength and weakness of the firm in various aspects such as funds, organization structure, human talent, technology, etc.
9.Define policies.
Policies are general statements or understandings which provide guidance in decision making to various managers.
10. What is procedure?
Procedure is a chronological order of actions required to implement a policy and to achieve an objectives.
11. How rules can be defined?
Rules are plans in which they suggest the required course of action .
12. What is programme?
Programme is a broad term which includes goals, policies, procedure, rules, task assignment, steps to be taken, resources to be employed to carry out a given course of action.
13. Define Budgets.
A budget is a statement of expected results in numerical terms and therefore, it may be referred as a numerical programme.
14. Classify budgets.
i. Variable budgets or Flexible budgets
ii. Programme budgets
iii. Zero-base budget
15. Give the flow diagram of planning steps.
SERIAL NUMBER PLANNING STEPS
1 Identification of opportunities
2 Establishment of objectives
3 Developing planning premises
4 Identification of alternatives
5 Evaluation of alternatives
6 Selecting an alterative
7 Formulating derivative plans
8 Establishing sequence of activities
16. What is objective?
Objectives are the aims, purposes or goals that an organization wants to achieve over varying periods of time.
17. List down the guidelines for the objective setting.
1. objective should cover the main features of the job
2. objectives must be clearly specified in writing
3. The list of objectives should not be too long. Wherever it is possible, combine some objectives to make the list reasonable.
4. objectives should be verifiable.
18. Mention the different areas of an organization towards objective setting.
Market standing
Innovation
Productivity
Resources- physical and financial
Profitability
Manager performance and development
Public responsibility
Worker performance, attitude and development.
19. What are the benefits of objective setting?
i. It sets specific targets for the employee to achieve which are liked to business/ development plan.
ii. It states how the performance of the employee is to be measured to assess progress.
iii. It provides direction of the employee.
iv. It allows progress, targets, and successes to be monitored and measured by the manager.
v. It helps build working relationships between the employee and the manager and improves overall communications.
20. What is MBO?
MBO is a process where by the superior and the subordinate managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and the contribution of each of its members is assessed.
21. What are the benefits of MBO?
o Improvement of managing
o Clarification of organization
o Personnel satisfaction
o Team work
o Development of effective control.
22. Explain the term decision and decision making.
A decision may be a direction to other to do or not to do. Decision making is defined as the process of choosing a course of action from among alternatives to achieve a desired goal. It is one of the functions of management and also a core process of planning. The management executive takes a number of decisions every day. Thus, a decision may be rational or irrational. There are number of alternatives available to the management. The best one is selected out of the available alternatives.
23. Write down the process followed in decision – making process.
SERIAL NUMBER DECISION MAKING PROCESS- STEPS
1 Identification of problem
2 Diagnosis and analysis the problem
3 Search for alternatives
4 Evaluation of alternatives
5 Selecting an alternatives
6 Implementation and follow up
7 Feed back
24. What is planning premises?
The assumptions about future derived from forecasting and used in planning are known as planning premises.
25. How would you evaluate the importance of a decision?
Decision making is a selection process. The best alternative is selected out of many available alternatives.
Decision-making is a goal –oriented process.
Decision making is the end process.
Decision making is a human and rational process involving the application of intellectual abilities.
Decision making is a dynamic process.
UNIT-III - ORGANISING
1. Define organizing.
Organizing is the process of identifying and grouping of activities required to attain the objectives, delegating authority, creating the responsibility and establishing relationships for the people to work effectively.
2. What do you understand by effective organizing?
Effective organizing focuses on finding mistakes in present organizing and avoiding such mistakes by proper planning. Effective organizing avoids organizational inflexibility and makes the staff work effectively by avoiding conflicts by clarification.
3. Mention any 4 characteristics of an organization.
Common objectives
Specialization or division of labor
Authority of structure
Group of persons.
4. State the kinds of organizational charts.
Vertical chart
Horizontal or left to right chart
Circular or concentric chart.
5. What is Span of control?
Span of control means the number of people managed effectively by a single superior in an organization. The term “span of control” is also known as “SPAN OF MANAGEMENT”, “SPAN OF AUTHORITY” and “SPAN OF RESPONSIBILITY.” But span of management is a better term because control and supervision are elements of management.
6. Mention the 3 categories of span of management.
1. Direct single relationship
2. Direct group relationship
3. Cross relationship.
7. State the important factors in determining an effective span.
SERIAL NUMBER FACTORS DETERMINING AN EFFECTIVE SPAN
1 Capacity of superior
2 Capacity of subordinate
3 Nature of work
4 Type of technology
5 Delegation of authority
8. What are the types of Departmentation?
SERIAL NUMBER TYPES OF DEPARTMENTATION
1 Departmentation by numbers
2 Departmentation by time
3 Departmentation by Enterprise function
4 Departmentation by Territory
5 Departmentation by Customers
6 Departmentation by equipment or process
7 Departmentation by product or service
9. What is a matrix structure?
Matrix structure is a hybrid organizational form, containing characteristics of both project and functional structures.
10. How can we define power?
“power is the probability that one actor within the relationship will be in a position to carry out his own despite resistance”.
11. What is Staff authority?
The relationship between a staff manager and the line manager with whom he works depends in part on the staff duties.
12. Define Staffing.
Staffing is the part of the management process which is concerned with the procurement utilization, maintenance and development of a large satisfied work force on the organization.
13. Define HRP.
“HRP is the process by which an organization ensures that it has the right number and kind of people at the right place at the right time, capable of effectively and efficiently completion, those tasks that will help the organization achieve its overall objectives”.
14. What are the steps involved in man power planning?
Forecasting man power needs
Forecasting man power inventory
Identifying man power gaps
Man power programme.
15. What is job analysis?
Job analysis is a detailed study of job to identify the skills, experience and aptitude required for the job.
16. What is job design?
The job design is usually broad enough to accommodate people’s, need and desires.
17. What is job rotation?
The job rotation refers in the movement of an employee from the job to another.
18. Define Recruitment.
B. FIPPO defined recruitment as “the process of searching for prospective employees and stimulating to apply for jobs in the organization”.
19. What is selection?
Selection is the process of finding out the most suitable candidate to the job out of the candidates attached.
20. What are the steps involved in selection process?
SERIAL NUMBER SELECTION PROCESS
1 Screening of applications
2 Selection tests
3 Preliminary interview
4 Reference check
5 Medical examination
6 Final interview
7 Approved by appropriate authority
8 Placement
21. What is performance appraisal?
Performance appraisal evaluates the performance of worker also his potential for development.
22. What is Halo effect?
It is tendency of rather to depend excessively on the rating of one. Trait or behavioral consideration in rating all other traits or behavioral considerations.
23. What is assessment centre?
In this approach individuals from various departments are brought together to spend two or three days working on an individual or group assignment similar to the ones they would be handling when promoted.
24. Define Training.
According to B.FIPPO “training is the act of increasing the knowledge and skills of an employee for doing a particular job”.
25. What are the methods of Training?
SERIAL NUMBER ON THE JOB TRAINING SERIAL NUMBER OFF THE JOB TRAINING
1 Job rotation 1 Lecture
2 Apprenticeship and coaching 2 Seminars
3 Committee assignments 3 Case studies
4 Experience 4 Business game
5 Temporary promotions 5 In basket method
26. What is basket training method?
Basket contains a number of correspondences like memo, circulars, lectures and reports. The trainees are required to solve ach problem and to record their decisions within a specified tie period. This training is promotes the skills like logical thinking, time management skill and decision making skill.
UNIT- IV - DIRECTING
1. What is meant by the term directing?
Directing may be defined as the process of instructing, guiding and inspiring human factors in the organization to achieve organization objectives. It is not only issuing orders and instruction by a superior to his subordinates but also including the process of guiding and inspiring them to work effectively.
2. List down the human factors in managing.
Multiplicity of roles
Individuality
Personal dignity
3. Define creativity.
Creativity is defined as the ability to produce new and useful ideas through the combination of know principles and components in novel and non obvious ways. Creativity exists throughout the population, largely independent of age, sex, and education.
4. What are the steps involved in creative process?
Saturation
Preparation
Frustration and incubation
Inspiration or illumination
Verification.
5. How are problems solved by creative tool?
Creativity tools are designed to help you devise, creative and imaginative solutions to problems. It helps you spot opportunities that you might otherwise miss.
6. What does SCAMPER stand for?
S - Substitute
C - Combine
A - Adapt
M - Modify
P - Put to another use
E - Eliminate
R - Reverse
7. What are the steps involved in simplex tool?
1. problem finding
2. fact finding
3. problem identification
4. idea finding
5. selection and evaluation
6. planning
7. sell data
8. Action.
8. How can be harmonizing objectives achieved?
1. Mutual trust
2. Cooperation and understanding.
3. Workers participation in management, and
4. Balancing the objectives of the organization with those of individuals.
9. Define “multiplicity of roles”.
Individuals are not only the productive factor in management’s plans. They are members of social system of many organizations.
10. What is meant by brain storming?
Brain storming is an excellent way of developing many creative solutions to a problem. It works by focusing on a problem, and then coming up with very many radical solutions to it. The essence of brainstorming is a creative conference, ideally of 8 to 12 people meeting for less than an hour to develop a long list of 50 or more ideas. Suggestions are listed without criticism on a black board or news print as they are offered.
11. Define Motivation.
Motivation is a general term applying to the entire class of drives, desires, needs wishes and similar forces that induce an individual or a group of people to work.
12. What are the steps involved in motivation process?
Analysis of situation
Preparing, selecting and applying a set of appropriate motivating tools.
Follow up.
13. What are the types of motivation?
Positive motivation
Negative motivation
Extrinsic motivation
Intrinsic motivation
14. List out the basic needs in a hierarchy.
1. Physiological needs
2. Safety needs
3. Social needs
4. Esteem needs
5. Self- actualization needs.
15. What is job enrichment?
Job enrichment is therefore based on the assumptions that in order to motivate personnel, the job itself must provide opportunities for achievement, recognition, responsibility, advancement and growth.
16. Define leadership.
Leadership is the process of influencing the behavior of others towards the accomplishment of goals in a given situation.
17. Mention the importance of leadership.
i. Motivating employees
ii. Leader develops team work
iii. Better utilization of manpower
iv. Creating confidence to followers
v. Directing group activities
vi. Building morale
vii. Maintaining discipline.
18. List out few leadership traits.
• The Michigan studies
• The ohio state university studies
• The managerial grid.
19. Name the various leadership styles.
• Autocratic or Dictatorial leadership
• Participative or Democratic leadership.
• Laissez- faire or Free- rein leadership.
20. What is communication?
Communication is the passing of information from one person to another person.
21. Mention the various elements in the process of communication?
1. sender
2. communication channels
3. symbols
4. receiver
5. noise and feedback in communication.
22. Name the various types of communication.
1. Down ward communication
2. Upward communication
3. Horizontal or lateral communication.
23. Note down the various communicating networks.
1. simple chain
2. wheel
3. circular
4. free flow
5. inverted v
24. What are the physical barriers involved in effective communication.
1. physical barriers
2. socio-psychological or personal barriers
3. organizational barriers
4. semantic barriers
5. mechanical barriers.
25. List out the various effective media in communication.
A large bank supplies hardware and software to its customers
Several banks now make bank – by – phone services available even to individuals.
E- mail service making easy delivery of documents.
UNIT-V – CONTROLLING
1. Define Control.
According to koontz “controlling to the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished”.
2. What are the characteristics of control?
Control process is universal
Control is a continuous process
Control is action based
Control is forward looking.
3. Why need of control in the organization?
Control can minimize the mistakes
To discover the deviations in the management
To minimize dishonest behavior of employees.
4. Give some critical point standards of control.
Cost standards
Revenue standards
Goals standards
Program standards.
5. What are the types of control?
Feedback control
Concurrent control
Feed forward control
6. What are the requirements for effective control?
i. The control should be economical
ii. It must be simple
iii. It should be flexible
iv. It should be clear objectives.
7. What is management by exception?
Actual performance compare with the standard performance deviations which cannot significant should be avoid.
8. What are traditional techniques of control?
i. Personal observation
ii. Break –even analysis
iii. Statistical reports
iv. Budgetary control.
9. What are modern techniques of control?
i. Management audit
ii. Return on investment
iii. PERT& CPM
iv. MIS
10. Define Budgetary control.
According to J. Batty “A system which uses budgets as a means of planning and controlling all aspects of producing and or selling commodities and services”.
11. What are the different types of Budgets?
FUNCTIONAL BUDGET TIME CLASSIFICATION ACTIVITY LEVEL
i. Sales budget Short term budget Fixed budget
ii. Production budget Current term budget Flexible budget
iii. Purchase budget Long term budget
iv. personnel budget
v. Cash budget
vi. Research and Development budget
vii. Capital budget
viii. Master budget
ix. Profit budget
x. Cost budget
12. Define MIS.
“A system of obtaining abstracting , storing and analyzing data, to productions information for use in planning, controlling and decision making by managers at the time they can most effectively use it”.
13. What are the MIS Resources?
Computer hardware
Software
Data
People.
14. Define productivity.
Productivity is a measure of how much input is required to produce a given output i.e. the ratio(output/input ) is called productivity.
15. What are the factors consider for product design?
Marketing
Government policy
Production
Technology
Product quality
16. Define OR.
OR is a systematic analysis of a problem through scientific methods, carried out by appropriate specialists, working together as a team, finding an optimum and the most appropriate solution to meet the given objective under a given set of constraints.
17. What is Inventory control?
The inventory control refers to the control of raw materials, and purchased materials in store and regulation of investment in them.
18. What is Economic order Quantity?
Formula , EOQ = 2DS/ C
Where,
D- Demand per year
C- Annual carrying cost of one unit.
S- Ordering cost.
19. What is JIT?
Just In Time inventory system. In this method the suppliers delivers the materials to the production spot just in time to be assembled. This method reduces cost of inventory.
20. What are the objectives of value engineering?
Modify and improve product design
Reduce the product cost
Increase the profit
Simplify the product.
21. What is quality circle?
To improving productivity and quality everyone in the organization. The circles presents the solutions to the top management.
22. What are the steps in value engineering?
Blast
Create
Refine.
23. What is Gantt chart?
It involves the representation of work progress over a period of time in the form of a bar chart.
24. Define MNC.
“An enterprise which own or control production or service facilities outside the country in which they are based”.
25. What are the attitudes need by MNC manager?
Ethnocentric attitude
Polycentric attitude
Geocentric attitude
26. What are global theory of Management?
1. situational and contingency approach
2. motivation and leadership theory
3. organizational behavior.
KAZIPATTUR , CHENNAI
QUESTION BANK
MERCHANT BANKING AND FINANCIAL SERVICES/BA728
PART –A TWO MARKS QUESTION AND ANSWER
UNIT – I – HISTORICAL DEVELOPMENT
1. What is Management?
Management is the process of giving direction and controlling the various activities of the people to achieve the objectives of an organization.
2. Define Management.
According to Knootz and Weihrich “Management is the process of designing and maintaining of an environment in which individuals working together in groups, efficiently accomplish selected aims”.
3. Write some characteristics of Management.
Management is a continuous process.
Manager use the resources of the organization both physical as well as human to
Achieve goals.
Management aims act achieving the organization goals by ensuring effective use of Resources.
4. What are the roles of management in organization?
1. Management helps in determination of the objectives of an organization.
2. Economic and social development takes place through management.
5. Write any 2 points favor for management as a science.
1) Management principles should be verifiable.
2) Reliable basis through management.
6. Write any 2 points favor for management as an art.
i. Management is creative.
ii. Management includes the use of practical knowledge and personal skill.
7. Who is the father of Scientific management?
Frederick Winslow Taylor.
8. What is Time Study?
The movements which takes the minimum time is the best one.
9. What is Motion Study?
Taylor suggested that eliminating wasteful movements and performing only necessary movements.
10. Write Fayol’s 14 principles of management.
Division of work
Authority and Responsibility
Discipline
Unity of Command
Unity of direction
Individual interest to general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability
Initiative
ESprite de crops.
11. What is Authority?
It is the power given to a person to get work from the subordinates.
12. What is Responsibility?
It is the amount of work expected of from a man by his superior.
13. Comment: Management is both- A science and an art.
Management is a science because it contains general principles. It is also an art because it requires certain personal skills to be achieve desired results.
14. What is Centralization?
The organization is centralized when the power is concentrated with one person.
15. What is Decentralization?
If the power is fully distributed to the subordinates of the organization.
16. What is Esprit – de- crops?
This means union is strength. In organization employees should be harmony and unity.
17. What are Management Levels?
Top level
Middle level
Lower level
18. Write the functions of management.
Planning
Organizing
Staffing
Coordinating
Controlling
19. What are the essential skills need for the managers?
Technical skill
Human skill
Conceptual skill.
20. Define Sole trading.
The sole proprietorship is that form of business organization which is owned and controlled by a single individual.
21. What is Partnership?
A partnership is an association of two or more persons to carry on business and to share its profit and lossess.
22. What is Joint stock company?
A private limited company is a company which has a minimum paid up capital destroyed be prescribed.
24. What is a Co-operative society?
It is a voluntary association of persons for mutual benefit and it aims accomplished through self help and collective effort.
25. What is a social responsibility?
Society is the parts of the management to interact actions wither to protect social interest a society.
UNIT –II - PLANNING
1.Define planning.
Planning is the process of selecting the objectives and the determining the course of action required to achieve these objectives.
2. What are the objectives of planning?
Planning is the primary function of an organization
It helps in achieving objectives
It is done to cope with uncertainty and change
It helps in facilitating control
It helps in coordination
It increases organizational effectiveness.
It guides in decision making.
3. List out the features of planning.
Planning –a primary function
Planning – a dynamic process
Planning – based on objectives and policies
Planning – a selective process
Pervasiveness of planning.
4. What are the different types of planning?
STANDING PLANS SINGLE USE PLANS
Mission or purpose Programmes
Objectives Budgets
Strategies Schedules
Policies Methods
Procedures projects
Rules
5.Define Mission.
Mission may be defined as “as a statement which defines the role that an organization plays in the society ”.
6. Define objectives.
The term objectives or goals are often used interchangeably. Objectives are the end results towards which the activities of firm are aimed or directed.
7.What is meant by strategy?
Strategy of an organization is the programmes of action and deployment of resources to attain its objectives.
8. What are the factors to be considered while formulating strategies?
1. Mission and objectives of an organization.
2. Values, aspirations and prejudices of top level management
3. Opportunities and threads of the external environment.
4. Strength and weakness of the firm in various aspects such as funds, organization structure, human talent, technology, etc.
9.Define policies.
Policies are general statements or understandings which provide guidance in decision making to various managers.
10. What is procedure?
Procedure is a chronological order of actions required to implement a policy and to achieve an objectives.
11. How rules can be defined?
Rules are plans in which they suggest the required course of action .
12. What is programme?
Programme is a broad term which includes goals, policies, procedure, rules, task assignment, steps to be taken, resources to be employed to carry out a given course of action.
13. Define Budgets.
A budget is a statement of expected results in numerical terms and therefore, it may be referred as a numerical programme.
14. Classify budgets.
i. Variable budgets or Flexible budgets
ii. Programme budgets
iii. Zero-base budget
15. Give the flow diagram of planning steps.
SERIAL NUMBER PLANNING STEPS
1 Identification of opportunities
2 Establishment of objectives
3 Developing planning premises
4 Identification of alternatives
5 Evaluation of alternatives
6 Selecting an alterative
7 Formulating derivative plans
8 Establishing sequence of activities
16. What is objective?
Objectives are the aims, purposes or goals that an organization wants to achieve over varying periods of time.
17. List down the guidelines for the objective setting.
1. objective should cover the main features of the job
2. objectives must be clearly specified in writing
3. The list of objectives should not be too long. Wherever it is possible, combine some objectives to make the list reasonable.
4. objectives should be verifiable.
18. Mention the different areas of an organization towards objective setting.
Market standing
Innovation
Productivity
Resources- physical and financial
Profitability
Manager performance and development
Public responsibility
Worker performance, attitude and development.
19. What are the benefits of objective setting?
i. It sets specific targets for the employee to achieve which are liked to business/ development plan.
ii. It states how the performance of the employee is to be measured to assess progress.
iii. It provides direction of the employee.
iv. It allows progress, targets, and successes to be monitored and measured by the manager.
v. It helps build working relationships between the employee and the manager and improves overall communications.
20. What is MBO?
MBO is a process where by the superior and the subordinate managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and the contribution of each of its members is assessed.
21. What are the benefits of MBO?
o Improvement of managing
o Clarification of organization
o Personnel satisfaction
o Team work
o Development of effective control.
22. Explain the term decision and decision making.
A decision may be a direction to other to do or not to do. Decision making is defined as the process of choosing a course of action from among alternatives to achieve a desired goal. It is one of the functions of management and also a core process of planning. The management executive takes a number of decisions every day. Thus, a decision may be rational or irrational. There are number of alternatives available to the management. The best one is selected out of the available alternatives.
23. Write down the process followed in decision – making process.
SERIAL NUMBER DECISION MAKING PROCESS- STEPS
1 Identification of problem
2 Diagnosis and analysis the problem
3 Search for alternatives
4 Evaluation of alternatives
5 Selecting an alternatives
6 Implementation and follow up
7 Feed back
24. What is planning premises?
The assumptions about future derived from forecasting and used in planning are known as planning premises.
25. How would you evaluate the importance of a decision?
Decision making is a selection process. The best alternative is selected out of many available alternatives.
Decision-making is a goal –oriented process.
Decision making is the end process.
Decision making is a human and rational process involving the application of intellectual abilities.
Decision making is a dynamic process.
UNIT-III - ORGANISING
1. Define organizing.
Organizing is the process of identifying and grouping of activities required to attain the objectives, delegating authority, creating the responsibility and establishing relationships for the people to work effectively.
2. What do you understand by effective organizing?
Effective organizing focuses on finding mistakes in present organizing and avoiding such mistakes by proper planning. Effective organizing avoids organizational inflexibility and makes the staff work effectively by avoiding conflicts by clarification.
3. Mention any 4 characteristics of an organization.
Common objectives
Specialization or division of labor
Authority of structure
Group of persons.
4. State the kinds of organizational charts.
Vertical chart
Horizontal or left to right chart
Circular or concentric chart.
5. What is Span of control?
Span of control means the number of people managed effectively by a single superior in an organization. The term “span of control” is also known as “SPAN OF MANAGEMENT”, “SPAN OF AUTHORITY” and “SPAN OF RESPONSIBILITY.” But span of management is a better term because control and supervision are elements of management.
6. Mention the 3 categories of span of management.
1. Direct single relationship
2. Direct group relationship
3. Cross relationship.
7. State the important factors in determining an effective span.
SERIAL NUMBER FACTORS DETERMINING AN EFFECTIVE SPAN
1 Capacity of superior
2 Capacity of subordinate
3 Nature of work
4 Type of technology
5 Delegation of authority
8. What are the types of Departmentation?
SERIAL NUMBER TYPES OF DEPARTMENTATION
1 Departmentation by numbers
2 Departmentation by time
3 Departmentation by Enterprise function
4 Departmentation by Territory
5 Departmentation by Customers
6 Departmentation by equipment or process
7 Departmentation by product or service
9. What is a matrix structure?
Matrix structure is a hybrid organizational form, containing characteristics of both project and functional structures.
10. How can we define power?
“power is the probability that one actor within the relationship will be in a position to carry out his own despite resistance”.
11. What is Staff authority?
The relationship between a staff manager and the line manager with whom he works depends in part on the staff duties.
12. Define Staffing.
Staffing is the part of the management process which is concerned with the procurement utilization, maintenance and development of a large satisfied work force on the organization.
13. Define HRP.
“HRP is the process by which an organization ensures that it has the right number and kind of people at the right place at the right time, capable of effectively and efficiently completion, those tasks that will help the organization achieve its overall objectives”.
14. What are the steps involved in man power planning?
Forecasting man power needs
Forecasting man power inventory
Identifying man power gaps
Man power programme.
15. What is job analysis?
Job analysis is a detailed study of job to identify the skills, experience and aptitude required for the job.
16. What is job design?
The job design is usually broad enough to accommodate people’s, need and desires.
17. What is job rotation?
The job rotation refers in the movement of an employee from the job to another.
18. Define Recruitment.
B. FIPPO defined recruitment as “the process of searching for prospective employees and stimulating to apply for jobs in the organization”.
19. What is selection?
Selection is the process of finding out the most suitable candidate to the job out of the candidates attached.
20. What are the steps involved in selection process?
SERIAL NUMBER SELECTION PROCESS
1 Screening of applications
2 Selection tests
3 Preliminary interview
4 Reference check
5 Medical examination
6 Final interview
7 Approved by appropriate authority
8 Placement
21. What is performance appraisal?
Performance appraisal evaluates the performance of worker also his potential for development.
22. What is Halo effect?
It is tendency of rather to depend excessively on the rating of one. Trait or behavioral consideration in rating all other traits or behavioral considerations.
23. What is assessment centre?
In this approach individuals from various departments are brought together to spend two or three days working on an individual or group assignment similar to the ones they would be handling when promoted.
24. Define Training.
According to B.FIPPO “training is the act of increasing the knowledge and skills of an employee for doing a particular job”.
25. What are the methods of Training?
SERIAL NUMBER ON THE JOB TRAINING SERIAL NUMBER OFF THE JOB TRAINING
1 Job rotation 1 Lecture
2 Apprenticeship and coaching 2 Seminars
3 Committee assignments 3 Case studies
4 Experience 4 Business game
5 Temporary promotions 5 In basket method
26. What is basket training method?
Basket contains a number of correspondences like memo, circulars, lectures and reports. The trainees are required to solve ach problem and to record their decisions within a specified tie period. This training is promotes the skills like logical thinking, time management skill and decision making skill.
UNIT- IV - DIRECTING
1. What is meant by the term directing?
Directing may be defined as the process of instructing, guiding and inspiring human factors in the organization to achieve organization objectives. It is not only issuing orders and instruction by a superior to his subordinates but also including the process of guiding and inspiring them to work effectively.
2. List down the human factors in managing.
Multiplicity of roles
Individuality
Personal dignity
3. Define creativity.
Creativity is defined as the ability to produce new and useful ideas through the combination of know principles and components in novel and non obvious ways. Creativity exists throughout the population, largely independent of age, sex, and education.
4. What are the steps involved in creative process?
Saturation
Preparation
Frustration and incubation
Inspiration or illumination
Verification.
5. How are problems solved by creative tool?
Creativity tools are designed to help you devise, creative and imaginative solutions to problems. It helps you spot opportunities that you might otherwise miss.
6. What does SCAMPER stand for?
S - Substitute
C - Combine
A - Adapt
M - Modify
P - Put to another use
E - Eliminate
R - Reverse
7. What are the steps involved in simplex tool?
1. problem finding
2. fact finding
3. problem identification
4. idea finding
5. selection and evaluation
6. planning
7. sell data
8. Action.
8. How can be harmonizing objectives achieved?
1. Mutual trust
2. Cooperation and understanding.
3. Workers participation in management, and
4. Balancing the objectives of the organization with those of individuals.
9. Define “multiplicity of roles”.
Individuals are not only the productive factor in management’s plans. They are members of social system of many organizations.
10. What is meant by brain storming?
Brain storming is an excellent way of developing many creative solutions to a problem. It works by focusing on a problem, and then coming up with very many radical solutions to it. The essence of brainstorming is a creative conference, ideally of 8 to 12 people meeting for less than an hour to develop a long list of 50 or more ideas. Suggestions are listed without criticism on a black board or news print as they are offered.
11. Define Motivation.
Motivation is a general term applying to the entire class of drives, desires, needs wishes and similar forces that induce an individual or a group of people to work.
12. What are the steps involved in motivation process?
Analysis of situation
Preparing, selecting and applying a set of appropriate motivating tools.
Follow up.
13. What are the types of motivation?
Positive motivation
Negative motivation
Extrinsic motivation
Intrinsic motivation
14. List out the basic needs in a hierarchy.
1. Physiological needs
2. Safety needs
3. Social needs
4. Esteem needs
5. Self- actualization needs.
15. What is job enrichment?
Job enrichment is therefore based on the assumptions that in order to motivate personnel, the job itself must provide opportunities for achievement, recognition, responsibility, advancement and growth.
16. Define leadership.
Leadership is the process of influencing the behavior of others towards the accomplishment of goals in a given situation.
17. Mention the importance of leadership.
i. Motivating employees
ii. Leader develops team work
iii. Better utilization of manpower
iv. Creating confidence to followers
v. Directing group activities
vi. Building morale
vii. Maintaining discipline.
18. List out few leadership traits.
• The Michigan studies
• The ohio state university studies
• The managerial grid.
19. Name the various leadership styles.
• Autocratic or Dictatorial leadership
• Participative or Democratic leadership.
• Laissez- faire or Free- rein leadership.
20. What is communication?
Communication is the passing of information from one person to another person.
21. Mention the various elements in the process of communication?
1. sender
2. communication channels
3. symbols
4. receiver
5. noise and feedback in communication.
22. Name the various types of communication.
1. Down ward communication
2. Upward communication
3. Horizontal or lateral communication.
23. Note down the various communicating networks.
1. simple chain
2. wheel
3. circular
4. free flow
5. inverted v
24. What are the physical barriers involved in effective communication.
1. physical barriers
2. socio-psychological or personal barriers
3. organizational barriers
4. semantic barriers
5. mechanical barriers.
25. List out the various effective media in communication.
A large bank supplies hardware and software to its customers
Several banks now make bank – by – phone services available even to individuals.
E- mail service making easy delivery of documents.
UNIT-V – CONTROLLING
1. Define Control.
According to koontz “controlling to the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are accomplished”.
2. What are the characteristics of control?
Control process is universal
Control is a continuous process
Control is action based
Control is forward looking.
3. Why need of control in the organization?
Control can minimize the mistakes
To discover the deviations in the management
To minimize dishonest behavior of employees.
4. Give some critical point standards of control.
Cost standards
Revenue standards
Goals standards
Program standards.
5. What are the types of control?
Feedback control
Concurrent control
Feed forward control
6. What are the requirements for effective control?
i. The control should be economical
ii. It must be simple
iii. It should be flexible
iv. It should be clear objectives.
7. What is management by exception?
Actual performance compare with the standard performance deviations which cannot significant should be avoid.
8. What are traditional techniques of control?
i. Personal observation
ii. Break –even analysis
iii. Statistical reports
iv. Budgetary control.
9. What are modern techniques of control?
i. Management audit
ii. Return on investment
iii. PERT& CPM
iv. MIS
10. Define Budgetary control.
According to J. Batty “A system which uses budgets as a means of planning and controlling all aspects of producing and or selling commodities and services”.
11. What are the different types of Budgets?
FUNCTIONAL BUDGET TIME CLASSIFICATION ACTIVITY LEVEL
i. Sales budget Short term budget Fixed budget
ii. Production budget Current term budget Flexible budget
iii. Purchase budget Long term budget
iv. personnel budget
v. Cash budget
vi. Research and Development budget
vii. Capital budget
viii. Master budget
ix. Profit budget
x. Cost budget
12. Define MIS.
“A system of obtaining abstracting , storing and analyzing data, to productions information for use in planning, controlling and decision making by managers at the time they can most effectively use it”.
13. What are the MIS Resources?
Computer hardware
Software
Data
People.
14. Define productivity.
Productivity is a measure of how much input is required to produce a given output i.e. the ratio(output/input ) is called productivity.
15. What are the factors consider for product design?
Marketing
Government policy
Production
Technology
Product quality
16. Define OR.
OR is a systematic analysis of a problem through scientific methods, carried out by appropriate specialists, working together as a team, finding an optimum and the most appropriate solution to meet the given objective under a given set of constraints.
17. What is Inventory control?
The inventory control refers to the control of raw materials, and purchased materials in store and regulation of investment in them.
18. What is Economic order Quantity?
Formula , EOQ = 2DS/ C
Where,
D- Demand per year
C- Annual carrying cost of one unit.
S- Ordering cost.
19. What is JIT?
Just In Time inventory system. In this method the suppliers delivers the materials to the production spot just in time to be assembled. This method reduces cost of inventory.
20. What are the objectives of value engineering?
Modify and improve product design
Reduce the product cost
Increase the profit
Simplify the product.
21. What is quality circle?
To improving productivity and quality everyone in the organization. The circles presents the solutions to the top management.
22. What are the steps in value engineering?
Blast
Create
Refine.
23. What is Gantt chart?
It involves the representation of work progress over a period of time in the form of a bar chart.
24. Define MNC.
“An enterprise which own or control production or service facilities outside the country in which they are based”.
25. What are the attitudes need by MNC manager?
Ethnocentric attitude
Polycentric attitude
Geocentric attitude
26. What are global theory of Management?
1. situational and contingency approach
2. motivation and leadership theory
3. organizational behavior.
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