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Code No: RT42052 R 13 Set

No. 4
IV B.Tech. II Semester Regular Examinations, April-2017
(Common to computer science & Engineering, Information
Technology and Automobile Engineering)
Time:3 Hrs Max
marks :70

Note: 1. Question paper consists of two parts (Part-A and Part-B)

2. Answering ALL Sub question from Part-A
3. Answer any THREE questions from Part-B


1. a) Define free rein leadership? [4M]

Free-rein leadership, also called Laissez-Faire, is a type of leadership style in

which leaders are hands-off and allow group members to make the decisions. Mangers
set objectives and employees are free to do whatever is appropriate to accomplish
those objectives.

b) Write about inventory management?


Inventory management is the practice overseeing and controlling of the ordering, storage
and use of components that a company uses in the production of the items it
sells. Inventory management is also the practice of overseeing and controlling of quantities
of finished products for sale.

c) Define induction [3M]

An induction programme is the process used within many businesses to welcome

new employees to the company and prepare them for their new
role.Induction training should, according to TPI-theory, include development of
theoretical and practical skills, but also meet interaction needs that exist among the
new employees.

d) Write a short note on cost slope?

Cost Slope Analysis considers the following: direct, indirect cost, under normal and crashing
(shortened) duration. Specifically, it provides a logical way to determine which activities are the most
cost and time efficient to be shortened. While shortening any task would mostly increase its direct cost,
through the decreasing of the overall project duration, the proper decision could save on indirect cost
which in turn increases the projects overall profit. Moreover, through the Optimum Cost-Time Point
plotted on the Project Cost-Duration Graph, Project Manager can logically determine a crashing
decisions best point of maximum profit in time, plan for the least cost required, and stop crashing the
project duration at the point of a marked diminishing return. Cost Slope Analysis thus can help
discovering which critical path activities would be the most cost and time efficient to be shortened and
how much overall project duration could be crashed, in order to produce the maximum overall project

e) What do you mean by logistic alliance?


A logistics alliance is a group or team of trading experts who work together to help companies
competently and successfully manage and deliver their products. Companies can hire or join
logistic alliance groups to empower the alliance group to provide assistance, establish supply
chains and offer business advice for the company.

f) Mention about capability maturity model ?

The Capability Maturity Model (CMM) is a methodology used to develop and refine an
organization's software development process. The model describes a five-level evolutionary
path of increasingly organized and systematically more mature processes.

2. a) Explain Taylors experiment and what he was trying to
achieve with those experiments

F.Taylors Experiment with Pig Iron: A Start for Scientific Management

While working for Midvale Steel Company, Taylor needed to find ways to make
workers operate faster and better. In his experiment with pig iron he decided to
research whether it was possible to make them move 47 tons of pig iron instead
of 12 tons. It was, as it later turned out.

So, what did Taylor do? First of all, he selected a certain amount of physically fit,
enduring men who had strength enough to work more. In fact, he found out that
only about 12,5% of men already employed were really fit to work in the steel

Second of all, he ordered these men to follow instructions of their supervisors
precisely, no matter how strange they could have seemed have short rest
during the day, sit down for a while, distract from work, etc. (at that times
workers could hardly take frequent breaks or go for a stroll so these orders
seemed really weird to them).

Next, Taylor divided the work into several operations and tracked exact time
needed to perform them. Average rates for the whole industry were thus defined
and workers wishing to keep their jobs were obliged to follow them.

Also, Taylor found out that if the workers were left to decide how they could
organize their work on their own they failed to perform better. On the contrary, if
supervisors kept an eye on the work / rest ratio laborers could lift 47 tons a day
without tiring. Such system proved that what was previously done by 500
workers could instead be done by 140.

Results of the Experiment

Taylor concluded from the experiment with pig iron:

its absolutely necessary that only workers really capable of performing

each specific task were employed;
rule of thumb had to be substituted with a much more effective method
material reward;

workers should be allowed enough rest and better work conditions.

Generally this meant:

productivity of labor could be increased by 3 to 4 times;

wages for the remaining workers could be 60% higher.

Taylors fundamental research enabled managers to finally assess performance

and productivity on scientific grounds, with less guesswork and more facts. In
fact, we still continue to benefit from it even today.

b) Elaborate the importance of management in the

globalization era. [8M]

Globalization is causing businesses to rethink their human resources strategies. Organizations

can now recruit employees from all around the world and subsequently are able to sell products

and services across geographic and cultural boundaries. The effects of globalization on HR have
initiated a number of trends in the workplace. Globalization allows businesses to recruit and hire
employees from all around the world. This is particularly attract to smaller businesses who, while
may not be able to have more than a few employees, can fill their available positions with the
very best talent, even if that talent doesn't live locally. The HR trend of international recruitment
and hiring is focused on bringing diversity to the organization and it recognizes that employees
from abroad may be able to provide unique perspectives on customer service, marketing and
sales, among other areas of the business. Similar to the trend of recruiting abroad from a diverse
pool of applicants is a progressive approach to providing benefits and compensation to
employees. Federal laws mandate minimum wage and basic employee benefits however
globalization has brought new ideas to business owners and managers on how to reward their
employees both as a standard policy and as a reward for hard work. Taking their cues from
abroad, some U.S.-based businesses are now offering paternity leave, extended holiday time,
work-from-home programs and flexible childcare options for their employees. These approaches
to compensation allow employees to balance their work with their personal life and are aimed to
increase happiness and productivity among the staff.


Skill development => Awareness and management of skills

Communication effectiveness => Interactions and transparency

Confidence => In management and the organization

Sense of belonging => Values, vision and corporate strategies

Efficiency of local management => Departmental comparison and advancement tool

Orientation to the customer => Importance of the client in daily activities

Alignment => Convergence and coherence of activities

Empowerment and accountability => Roles, initiatives, latitude

Cultural link => Social fabric and organizational pride

3. a) What do you understand by economic order quantity? Derive

a formula to determine it

Economic order quantity. In inventory management,economic order quantity (EOQ)

is the order quantitythat minimizes the total holding costs and orderingcosts. It is one
of the oldest classical production scheduling models.
ABC Ltd. is engaged in sale of footballs. Its cost per order is $400 and its carrying cost unit is $10 per
unit per annum. The company has a demand for 20,000 units per year. Calculate the order size, total
orders required during a year, total carrying cost and total ordering cost for the year.


EOQ = SQRT(2 20,000 400/10) = 1,265 units

Annual demand is 20,000 units so the company will have to place 16 orders (= annual demand of
20,000 divided by order size of 1,265). Total ordering cost is hence $64,000 ($400 multiplied by 16).

Average inventory held is 632.5 ((0+1,265)/2) which means total carrying costs of $6,325 (i.e. 632.5

b) Explain the work study. Enlist the various application of

work study
Meaning of Work Study:

According to ILO International Labour Organisation work study is a term used to embrace the

techniques of method study and work measurement which are employed to ensure the best

possible use of human and material resources in carrying out a specified activity. In other words,

work study is a tool or technique of management involving the analytical study of a job or operation.

Work study helps to increase productivity.

Objectives of Work Study:

(i) Work study brings higher productivity;

(ii) Work study improves existing method of work for which cost becomes lower;

(iii) It eliminates wasteful elements;

(iv) It sets standard of performance;

(v) It helps to use plant and human more effectively;

(vi) It improves by saving in time and loss of material also.

4. a) What is performance appraisal? Why is it necessary to carry

out performance appraisal?

Performance Appraisal
Performance Appraisal is the systematic evaluation of the performance of employees and to understand
the abilities of a person for further growth and development. Performance appraisal is generally done in
systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets and plans.
2. The supervisor analyses the factors behind work performances of employees.

3. The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wage structure, salaries

raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.

3. To maintain and assess the potential present in a person for further growth and development.

4. To provide a feedback to employees regarding their performance and related status.

5. To provide a feedback to employees regarding their performance and related status.

6. It serves as a basis for influencing working habits of the employees.

7. To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by following

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes
for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensation packages for
employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to
give worth to a performance. Compensation packages which includes bonus, high salary rates,
extra benefits, allowances and pre-requisites are dependent on performance appraisal. The
criteria should be merit rather than seniority.

3. Employees Development: The systematic procedure of performance appraisal helps the

supervisors to frame training policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for efficient employees. It also helps
in framing future development programmes.

4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity
and importance of the selection procedure. The supervisors come to know the validity and
thereby the strengths and weaknesses of selection procedure. Future changes in selection
methods can be made in this regard.

5. Communication: For an organization, effective communication between employees and

employers is very important. Through performance appraisal, communication can be sought for in
the following ways:

a. Through performance appraisal, the employers can understand and accept skills of

b. The subordinates can also understand and create a trust and confidence in superiors.

c. It also helps in maintaining cordial and congenial labour management relationship.

d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance

of employees, a persons efficiency can be determined if the targets are achieved. This very well
motivates a person for better job and helps him to improve his performance in the future.

b) Analyze the advantages of training and development
Programmes [8M]

Training is a program that helps employees learn specific knowledge or skills to

improve performance in their current roles. Development is more expansive and
focuses on employee growth and future performance, rather than an immediate job role.

5. a) Describe the use of computers in project management [8M]

Project Management plays a vital role in the success of any project. It encompasses the entire
life cycle of the project, which includes initiation, planning, execution, control and closing of the
project Good Project Management involves successful completion of the project in time within
budget and without compromising on quality poor coordination, monitoring and communication
among the project team results in wastage of resources, excessive costs and delays.

Any construction project involves a team of Structure Consultants, Architects, Designers, Site
Engineers, Contractors, Quality Control Personnel and Project Managers, who offer professional
service at various stages of the project. However the role of the Project Manager begins at the
time of inception and ends only after the completion of the project. He is responsible for taking
various decisions, which influence the project directly.

A construction project involves the designing the structure, preparation of quality and cost
estimates, planning and scheduling of the work, team mobilization, resource allocation, inventory
management, tendering and procuring material, monitoring and controlling the project, involving
and billing. During the actual execution of the project, a number of activities are carried out
simultaneously. The Project Manager has to keep track of all the processes in order to monitor
the project closely.

Using conventional methods it is not only difficult for the Project Manager to monitor the
progress of the entire process but it also prevents him from getting upto date information about
the exact status of the project. This lack of upto date information about the status of various
activities prevents the Project Manager from taking informed decisions leading to wastage of time
and resources. This process complicates further when the Project Manager has to handle a
number of projects spread over various geographic locations simultaneously.

In recent years, technological innovation in construction project management has significantly

changed the entire scenario. Computers with the Internet have started playing a vital role in
various aspects of construction. Various software tools and products act as means to foster

collaboration among professionals on a project, to communicate for bids and results, and to
procure necessary resources materials goods and services. While generalized Project
Management Software tools like Microsofts MS Project are available, specialized Project
Management Software Products like BuildPROJECT are available to manage Construction
Project exclusive.

For a project manager, effectively balancing a projects scope, cost, time and resources is an
ongoing challenge. BuildPROJECT, the construction project-management tool, helps to view,
analyze, and manage these project coordinates concurrently, all from a desktop. This enables the
Project Manager to create schedules, plan resources, collect and document actual data and
generate project status reports and MIS. The Construction Project Management Software deals
with every aspect of the Life Cycle of the Construction facility. It automates various operations
like Planning, Execution and Control, Resource Management, Inventory Management, Safety
Management, Quality Control and Finance Management.

The software is especially helpful when multiple projects need to be managed in different

b) Enumerate the time estimates in PERT. [8M]

There are three estimation times involved in PERT; Optimistic Time Estimate (TOPT),
Most Likely Time Estimate (TLIKELY), and Pessimistic Time Estimate(TPESS).
In PERT, these three estimate times are derived for each activity.

The Three Chances

There are three estimation times involved in PERT; Optimistic Time Estimate (TOPT), Most Likely

Time Estimate (TLIKELY), and Pessimistic Time Estimate (TPESS).

In PERT, these three estimate times are derived for each activity. This way, a range of time is given

for each activity with the most probable value, TLIKELY.

Following are further details on each estimate:


This is the fastest time an activity can be completed. For this, the assumption is made that all the

necessary resources are available and all predecessor activities are completed as planned.


Most of the times, project managers are asked only to submit one estimate. In that case, this is the

estimate that goes to the upper management.


This is the maximum time required to complete an activity. In this case, it is assumed that many

things go wrong related to the activity. A lot of rework and resource unavailability are assumed when

this estimation is derived.

6. a) Explain the strategy at different levels of a business


Top management's overall plan for the entire organization and its strategic business units.
Corporate level strategy occupies the heights levelof DECISION MAKING. the nature of the
decisions tends to be value oriented, conceptual than theBusiness level, and Operational or

b) What is the procedure of formulation of the mission statement?
Explain? [8M]

Mission Formulation
For any given firm, organizational mission is normally summarized and documented in a mission

The titles of the mission statements are quite varied. They include "corporate philosophy,"
"objectives," "credo," "our way," "guidelines," "our purpose," and so on. For example, the Figure
presents Ford Motor Company's "Mission, Values, and Guiding Principles".

But despite the variety of names, the idea is the same: to define what is important to the
company. Therefore, in formulating its mission, an organization must base on the four elements
of mission described by Campbell and Nash: purpose, strategy, values, and behavioral standards
(see above).

In practice, mission statements take on a variety of forms and lengths. But each mission
statement has a personality which is unique and reflective of the individuals ideals of the
corporate directors. Although there are differences in the mission statements of various
companies, there are also many similarities.

The kinds of information contained in mission statement vary somewhat from organization to
organization. Most mission statements cover the following major topics:

Company product or service



Company objective

Company philosophy

Company self-concept

Public image

The need to assess the quality of a mission statement is a problem that is being faced by many
management teams and consultants.

Goodstein, Nolan and Pfeipher provide the following ten criteria for evaluating mission

1. The mission statement is clear and understandable to all personnel, including rank-and-
file employees.
2. The mission statement is brief enough for most people to keep it in mind. This typically
means one hundred words or less, which is possible.

3. The mission statement clearly specifies what business the organization is in. This includes
a clear statement about:

o "What" customer or client needs the organization is attempting to fill, not what
products or services are offered;

o "Who" the organization's primary customers or clients are;

o "How" the organization plans to go about its business, that is, what its primary
technologies are; and

o "Why" the organizations exists, that is, the overriding purpose that the
organization is trying to serve and its transcendental goals.

4. The mission statement should identify the forces that drive the organization's strategic

5. The mission statement should reflect the distinctive competence of the organization.

6. The mission statement should be broad enough to allow flexibility in implementation but
not broad enough to permit a lack of focus.

7. The mission statement should serve as a template and be the means by which
mananagers and others in the oragnization can make decisions.

8. The mission statement must reflect the values, beliefs, and philosophy of operations of
the organization.

9. The mission statement should be achievable. It should be realistic enough for

organization members to buy into it.

10. The wording of the mission statement should help it serve as an energy source and
rallying point for the organization.

All ten criteria must met for the mission statement to fully accomplish all that such statements.
The process of writing a mission statement can be broken down into several distinct steps; these

1. Establish the basic parameters;

2. Collect and assemble possible ideas for inclusion;

3. Determine the limits;

4. Set the priorities of each statement;

5. Carefully express each of the ideas;

6. Add explanatory statements;

7. Establish the document's apperance;

8. Gain final approval.

The principal value of mission statement as guide to strategic action is derived from its
specification of the ultimate aims of the firm.


7. Write a short note on a) Total Quality Management, b)
Management Information systems.

Total Quality Management TQM, also known as total productive maintenance,

describes a management approach to long-term success through customer
satisfaction. In a TQM effort, all members of an organization participate in
improving processes, products, services, and the culture in which they work.

Total Quality Management Principles: The 8 Primary Elements of TQM

Total quality management can be summarized as a management system for a

customer-focused organization that involves all employees in continual
improvement. It uses strategy, data, and effective communications to integrate
the quality discipline into the culture and activities of the organization. Many of
these concepts are present in modern Quality Management Systems, the
successor to TQM. Here are the 8 principles of total quality management:

Management information system (MIS) refers to the processing of information through computers
to manage and support managerial decisions within an organization. The concept may include
systems termed transaction processing system, decision support system, expert system,
or executive information system. The term is often used in the academic study of businesses and
has connections with other areas, such as information systems, information
technology, informatics, e-commerce and computer science; as a result, the term is used
interchangeably with some of these areas.

# # # #
1A 4 2A 8 4A 8 7 16
1B 4 2B 8 4B 8
1C 3 5A 8

1 4 3A 8 5B 8
1E 4 3B 8 6A 8

1F 3 6B 8

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