MANAGEMENT:- The organization and coordination of the activities of a business in order to achieve

defined objectives. Management is often included as a factor of production along with Machines, materials,
and money. According to the management guru Peter Drucker (1909-2005), the basic task of management
includes both marketing and innovation. Practice of modern management originates from the 16th century
study of low-efficiency and failures of certain enterprises, conducted by the English statesman Sir Thomas
More (1478-1535). Management consists of the interlocking functions of creating corporate policy and
organizing, planning, controlling, and directing an organization's resources in order to achieve the objectives
of that policy. NATURE:- **It is a purposeful activity. **Concerned with efforts of a group. **It applies
economic principles. **Involves decision making. **It is getting things done through others. **Is an
integrating process. **It is a universal activity. **It is dynamic and not rigid. FUNCTIONS OF
MANAGER:- Planning: This step involves mapping out exactly how to achieve a particular goal. Organizing:
After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning
work and granting authority are two important elements of organizing. Staffing: After a manager discerns his
area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing
employees. A manager in a large organization often works with the company's human resources department
to accomplish this goal. Leading: A manager needs to do more than just plan, organize, and staff her team to
achieve a goal. She must also lead. Leading involves motivating, communicating, guiding, and encouraging.
It requires the manager to coach, assist, and problem solve with employees. Controlling: After the other
elements are in place, a manager's job is not finished. He needs to continuously check results against goals
and take any corrective actions necessary to make sure that his area's plans remain on track. ROLE OF
INDUSTRIAL ACTIVITIES:- **Technical (Production). **Commercial (Trading). **Financial (Optimal
capitalisation). **Security (Protection of company’s personnel and assets). **Accounting (Statistics).
**Managerial (Planning, organising, command, coordination and control). MODERN MANAGEMENT
THEORY:- Modern view consists that a worker does not work for only money. They work for their
satisfaction and happiness with good living style. Here Non- financial award is most important factor. It is
based on three theories:- System Approach:- **It enables us to see the critical variables and constraints
and their interactions with one another. **A system must have some specific components, units or sub units.
**A change in one system affects the other subsystems. **Every system is influenced by super system. **All
systems along their subsystem must have some common objectives. **A system is goal-oriented. **A system
cannot survive in isolation. Contingency Approach:- **This approach accepts the dynamics and
complexities of the organization structure. **An organization is affected by its environment and environment
is composed by physical resources, climate, persons, culture, economic and market conditions and their laws.
**This approach argues that there is no one universally applicable set of rules by which to manage
organization. Quantitative Approach:- **It is a scientific method. **Emphasizes the use of statistical
model and systematic mathematical techniques to solving complex management problems. **Helps the
management to making decisions in operations. **It can only suggest the alternatives based on statistical
data. It cannot take final decision. **It helps the management for improving their decision making by
increasing the number of alternatives and giving faster decisions on any problem. **Management can easily
calculate the risk and benefit of various actions. ISSUES INVOLVED IN MODERN MANAGEMENT
PRACTICES:-Uncertainty:- **In global economy. **In the credit markets. **How new regulations will
affect business. **What competitors are doing? **How new technology will affect the business. **Leads to
a short-term focus. Globalisation:- **Understanding foreign cultures to penetrate new markets and
designing new products and services for new customers. **Recognize emergent and disruptive competitors.
**Understand international markets and cultures through better information gathering. **Incredible degree
of government intervention. Innovation:- **How to become more innovative while still maintaining a
sense of control over the organization. **Idea of a more innovative culture appears too frightening to many.
Government Policy and Regulation. Technology:- **Technological improvement is running at an
exponentially increasing rate. **Capital investment in technology is as much an asset as a handicap.
Diversity:- **Lack of agreement makes running a business very difficult. **lack of diversity within many
large company leadership teams leads to a narrow view. Complexity:- Problem is how to develop better
systems-thinking capability so you can design your business models, processes, products and services in a
way that minimizes unnecessary complexity. Information Overload:- To deal with this mountain of
information with both technology and human know-how, then to convert this information into valuable
knowledge. Supply Chain:- To develop a supply-chain strategy that not only ensures the lowest costs, but
also minimizes the risk of crippling supply-chain disruptions. Strategic thinking and problem solving are
the keys to successful business

MICKINSEY 7-S FRAMEWORK:-**Placing Shared Values in the middle of the model emphasizes that
these values are central to the development of all the other critical elements. **The original vision of the
company was formed from the values of the creators. As the values change, so do all the other elements.
ELEMENTS:- **Strategy:- the plan devised to maintain and build competitive advantage over the
competition. **Structure:- the way the organization is structured and who reports to whom. **Systems:- the
daily activities and procedures that staff members engage in to get the job done. **Shared Values:- called
"superordinate goals" when the model was first developed, these are the core values of the company that are
evidenced in the corporate culture and the general work ethic. **Style:- the style of leadership adopted.
**Staff:- the employees and their general capabilities. **Skills:- the actual skills and competencies of the
employees working for the company. MANAGEMENT BY OBJECTIVES (MBO):- also known
as Management By Results (MBR) **It aims to improve performance of an organization by clearly defining
objectives that are agreed to by both management and employees. **According to the theory, having a say in
goal setting and action plans should ensure better participation and commitment among employees, as well
as alignment of objectives across the organization. the system of management by objectives can be described
as a process whereby the superior and subordinate jointly identify common goals, define each individual's
major areas of responsibility in terms of the results expected of him or her, and use these measures as guides
for operating the unit and assessing the contribution of each of its members. PROCESS OF MBO:-
**Preliminary objectives placed on the top. **Clarifying organisational roles. **Setting a subordinates
objectives. **Recycling objectives. GUIDELINES FOR SETTING OBJECTIVES:- **Objectives should
be verifiable. **Should be reasonably challenging. **Should completely focus on the job. **Should be of
reasonable length and practical. **Certain objectives should be prioritized. **Should focus on improvement
and personal development. **Should be coordinated with those of other managers from different business
subunits, while focusing on the main objective of the company. **Should be i=finalized in writing and made
familiar to all those involved. **Short term objectives should be consistent with long term objectives.
**Should provide feedback to check effectiveness. **Subordinates should have control over their assigned
responsibilities.

OUTSOURCING MANAGEMENT SERVICES PROCESS:-**Establish the baseline. **Assess goals

and alternatives. **Determine contract scope and terms. **Identify measures to support terms. **Negotiate
performance levels. **Measure, Audit and Report results. ATTRIBUTES OF SUCCESSFUL
CONSULTANTS:- **Powerful Negotiator **Effective Communicator **Reservoir of Self Control
**Understanding of Individual Psychology **Understanding of Group Psychology **Understanding of
Organizational Psychology **Complete mastery of the given “area”. BENEFITS FOR HIRING
CONSULTANTS:- **Swiftness and Expertise. **Concentrating on core process rather than the supporting
ones. **Increased productivity and Efficiency. **Risk-sharing. **Reduced Operational and Recruitment
costs. **Outsider perspective. **Terminate them easier than terminating employees.
DISADVANTAGES:- **Risk of exposing confidential data. **Synchronizing the deliverables. **Hidden
costs. **Loss of Control. **Lack of customer focus. **Provider may not understand business environment.
**Too dependent on service provider. **Provider slow to react to changes in strategy. **Quality control
might not be implemented. SKILL SET REQUIRED BY MANAGEMENT CONSULTANTS:-
**Discipline and motivation. **Analytical skills. **Creative skills. **Communication and people skills.
**Leadership skills. **Entrepreneurial attitude. **Process and technological skills. BARRIERS COMMON
TO CONSULTANTS:-**Know – it – all attitude **Inability to understand technical language **Inadequate
background or knowledge **Poor organization of ideas **Differences in perception **Prejudice or bias
**Personality conflicts **Tendency not to listen **Resistance to change **Lack of credibility **Inability to
understand Non-Verbal Communication **Hostile attitude **Lack of feedback **Differences in status or
position **Information Overload **Too many Gatekeepers **Overly Competitive Attitude.
PERFORMANCE COUNSELLING:- •Higher productivity is key to success in any organization specially
in business ones. This requires achieving higher performance by employees. •Performance counselling is the
process of Improving employees performance and productivity by providing employee with feedback
regarding areas where he is doing well and areas that may require improvement. •The basic purpose of
performance counselling is to improve the performance of employees or to maintain already existing desirable
level of performance. THE PROCESS OF COUNSELLING:- •Preparation:- **Schedule the counseling
session and notify the employee; suggest the employee write down or be ready to discuss expectations and
requirements. **Get a copy of the employee’s job description and appropriate counseling checklist & blank
evaluation form. **Think about how each outcome or critical element of the performance plan supports the
mission/objectives of the organization. **Decide what you consider necessary for success in each outcome
or critical element. Be specific **Make notes to help you with counseling. •During The Counseling Session:-
**Discuss mission/objectives of organization and how his/her performance contributes to success of
organization. **Discuss items that require top priority effort (areas of special emphasis)—realizing this may
change later. **Discuss what tasks and level of performance you expect for success. Review employee’s
written input if he/she provides it **Discuss competencies needed to perform duties. Ask employee for ideas
about what how he/she might perform assigned duties. •After Counseling:- **Summarize key points of the
counseling on relevant form **Give the employee the form to review/initial. **If the employee gave written
input, attach it. **Give the employee a copy and keep the original to use for the next counseling session.

CONSULTING REQUIREMENT IN PERFORMANCE COUNSELLING:- •The role of the consultant

is very important here as he helps the client to realize that performance appraisal should be concerned with
the actual performance rating. •On the basis of appraisal conducted, the consultant can counsel the employees
as to what they should do to improve their performance to the desired level, and if required, suggest for or
conduct necessary training programmes. **In the present context many firms are seeking the assistance of
external consultant for performance. Counselling. The trend is sure to continue in future. TYPES OF
OUTSOURCING:- **Business process outsourcing (BPO):- It involves the contracting of the operations
and responsibilities of specific business functions or processes to a third-party service provider. When
business process outsourcing began, it applied chiefly to manufacturing entities, such as soft drink
manufacturers that outsourced large segments of their supply chains. However, it is now applicable to the
outsourcing of services. **Knowledge process outsourcing (KPO):- It is the outsourcing of core, information-
related business activities, meaning that knowledge and information-related work is carried out by workers
in a different company or by a subsidiary of the same organization. This subsidiary may be in the same
country or in an offshore location to save costs or other resources. **Legal process outsourcing (LPO):- Is
the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal
support services company. It is the practice of outsourcing any activity except those where personal presence
or contact is required. **Recruitment Process Outsourcing (RPO):- is a form of business process outsourcing
(BPO) where an employer transfers all or part of its recruitment processes to an external service provider. An
RPO provider can provide its own or may assume the company's staff, technology, methodologies and
reporting. **Engineering process outsourcing (EPO):- EPO offers global consulting and outsourcing services
providing end-to-end services in the areas of Engineering and Technical Process Outsourcing. THINGS TO
BE KEPT IN MIND BEFORE OPTING FOR OUTSOURCING:- **Is outsourcing a valid alternative?
**What are the expected benefits and cost savings? **What functions should be considered for outsourcing?
**What terms need to be considered? **How will the relationship be managed? **What steps are necessary
to implement the process? **How will performance be measured? **What is the required infrastructure? If
outsourcing is an option you should consider:- **Increase management awareness of outsourcing issues.
**Evaluate and document current performance levels. **Determine contract resource requirements.
**Identify risk and benefits. **Develop accurate pricing. **Identify areas for improvement. **Assists in
contract negotiations. **Establish a process to capture critical contract data. **Provide a process to validate
results.
 ONSHORE VS OFFSHORE OUTSOURCING:-ONSHORE OUTSOURCING:- also called domestic
outsourcing **Limits the outsourced work within the locality or the country of origin, making outsourcing
providers more accessible and is nearer to the company itself. **No problem with traveling and it makes
communication between you and the outsourcing team more comfortable. **Does not impose as much risk
as offshore outsourcing, but the benefits that you would enjoy is not as great. **Organisation and outsourcing
company are covered by the same legal rules. **The geographical limits may allow outsourced employees to
come in contact with the team every day and supervise their operation. OFFSHORE OUTSOURCING:-
**It is the system of collaborating with an external organization and assigning that organization to carry out
some of your business roles. **Usually the product or the service which has been outsourced would not be
sold in the offshoring location; it would only be marketed in the outsourcer's country. **It gives organizations
access to high-quality services at lower operating costs. **It has three types:- BPO; infrastructure an
technology outsourcing; software outsourcing. ONSHORE OUTSOURCING:- **Onshore outsourcing
limits the outsourced work within the locality or the country of origin, making outsourcing providers more
accessible and is nearer to the company itself. **There will be no problem with traveling and it makes
communication between you and the outsourcing team more comfortable and available. **Onshore
outsourcing will not impose as much risk as offshore outsourcing, but the benefits that you would enjoy is
not as great and as rewarding as its foreign counterpart. **Aside from that, when it comes to intellectual
property rights, you and the outsourcing company that you are working with are covered by the same legal
rules while in the practice of legality and ownership of intellectual properties. **Onshore outsourcing
business can help your company (client) save on office space, cost and be more efficient. The geographical
limits may just allow you to come in contact with the team every day and supervise their operation.
OFFSHORE OUTSOURCING:-**Offshore outsourcing can be defined as the system of collaborating with
an external organization and assigning that organization to carry out some of your business roles. **Usually
the product or the service which has been outsourced would not be sold in the offshoring location; it would
only be marketed in the outsourcer's country. **Offshore outsourcing gives organizations access to high-
quality services at lower operating costs. **There are basically three main categories in offshore outsourcing;
business process outsourcing (BPO), infrastructure and technology outsourcing and software outsourcing.
Insourcing vs. Outsourcing – Managing the complexities of the global delivery model requires a deep
expertise in the local environments and experience with cross border business operation, making the
evaluation of whether to outsource a project or leave it in-house very different from a purely onshore sourcing
decision. Structure of the solution – The lack of maturity of the offshore industry requires a significant
commitment from the enterprise in supporting the development and growth of the outsourcing solution.
Making that commitment, keeping a eye on the long-view necessitates a strategic sourcing decision, distinctly
different from a domestic sourcing contract. Due diligence on operating models and supplier selection –
The level of due diligence required, and the types of issues to address during supplier selection are
substantially different. For example, in offshore sourcing for 24X7 process support, it is imperative to check
the availability of 100% captive power generation. Indeed, it’s imperative to check for the level of reserve
gasoline available. Resource deployment/redeployment – Offshore Outsourcing transactions rarely include
asset and resource transfers from the buyer to the service provider, whereas in onshore sourcing deals, that is
a common point of negotiation. Knowledge transfer – the transfer of information and training around the
buyer’s IT environment and other relationship parameters are very difficult to do in offshore sourcing. Since
this has a direct effect on path to productivity for service providers, it becomes an important evaluation
criterion, as well as a phase in the sourcing cycle. Portfolio Assessment and planning – the ‘offshoreability’
of an IT service or business process is dependent on many factors, and in most enterprises, transitioning to
an offshore model requires early planning. The portfolio assessment and planning phase is a critical
component of a successful offshore sourcing initiative. PERFORMANCE COUNSELLING:- It is the
process of improving employee’s performance and productivity by providing employee with feedback
regarding areas where he is doing well and areas that may require improvement. NEED:- **Realise his
potential as manager. **Understand his own strengths and weakness. **Acquire insight and to analyse his
own behaviour. **Better understanding of the environment.**Increase personal and interpersonal
effectiveness. **Encourages to set goals. **Encourages to generate alternatives for problems. **Develop
action plans for improvement. **Can review his progress through feedback. CONSTITUENTS OF
COUNSELLING:- **Communication:- Responding and initiation; Listening; Feedback. **Helping:-
Empathy; Development; Mutuality. **Influencing:- Identification; Autonomy; Positive reinforcement.
SEQUENTIAL OUTLOOK:- **Rapport Building:- Attending; Listening; Acceptance. **Exploration:-
Exploring; Problem identification; Diagnosis. **Action Planning:- Searching; Decision making; Supporting.

UNIT II

CONSULTING PROCESS:- **Consulting Proposals. **Identification and Definition of Problem. **Fact-

Finding Leading to Solution. **Development and Implementation. **Developing Strategic and Tactical
Plans and Subcontracting. **Pricing of Consultancy. **Acquiring and Developing Talents for Consulting.
ENTRY:- **First contacts with clients. **Preliminary problem diagnosis. **Assignment Planning.
**Assignment Proposals to clients. **Consulting contract. DIAGNOSIS:- **Purpose Analysis. **Problem
Analysis (Identification and definition of problem:- Description; Objective and expected result; Background
and supporting; Budget; Timetable; Inputs required; Exclusions; Constraints). **Fact Finding. **Fact
Analysis. **Feedback to client. ACTION PLANNING:-**Developing Solutions. **Evaluating
Alternatives. **Proposals to clients. **Planning for implementation. IMPLEMENTATION:- **Assisting
with implementation. **Adjusting proposals. **Training. TERMINATION:- **Evaluation. **Final
Report. **Settling commitments. **Plans for follow-up. **Withdrawal. SUBCONTRACTING:-**The
practice of assigning part of the obligations and tasks under a contract to another party known as
subcontractor. **Prevalent in areas where complex projects are the norm, such as construction and
information technology. **Subcontractors are hired by the project's general contractor, who continues to have
overall responsibility for project completion and execution within its stipulated parameters and deadlines.
**Subcontracting is a type of work contract that seeks to outsource certain types of work to other companies.
It is a contract overseeing a much broader project in many cases. **Subcontracting is done when the general
contractor does not have the time or skills to perform certain tasks. ADVANTAGES:- **First, it allows
work on more than one phase of the project to be done at once, often leading to a quicker completion.
**Second, because subcontractors already have the expertise and equipment to provide the service, it is often
much cheaper for them to do the work than a general contractor who may not have that special expertise.
**Finally, the subcontractor is usually able to work with a general contractor on more than one project, thus
creating a savings for both in the long run as a relationship is formed. ACQUIRING TALENT FOR
CONSULTING:-**Recruitment and selection programs. **Diversity and inclusion strategies. **Profiling
and sourcing practices. **On Board program design and implementation. DEVELOPING TALENT FOR
CONSULTING:-**Team effectiveness. **Global Leadership development. **Top talent strategy.
**Employee development strategies and programs. **Training program designs and delivery. **Virtual
executive coaching. **Mentoring programs.

PRICING OF CONSULTANCY:-**Ask for the budget. **Trade off scope for price. **Be creative with
pricing negotiations. **Make first time discounts explicit. **Don’t leave money on the table. **Regulate
demand with pricing. **Track your results. REMUNERATION METHODS:-**Commissions.**Retainer
Fees. **Retainer with performance related incentive payment (PRIP). **Project fees. PRICING MODELS:-
FIXED PRICE:- **It is suited to projects where the consultants have already worked on something similar
and hence becomes applicable to where toolkits may be used. **ADVANTAGES:- (To Clients) **Know
how much the project shall cost at the start of the project. **Change management is handled by consultants.
**Ability to compare with other bids. (To Consultants) **Efficiently managed projects tend to make profits.
**Project management lies in the hands of consultants. **DISADVANTAGES:- (To Clients)
**Inexperienced clients may not have explored the market well, may accept expensive quotations. **Client
has minimal authority over resources assigned. **Arguments on scope changes after scope lockdown. (To
Consultants) **Risk of project budget overruns. **If objectives are not clear, project may run astray. TIME
AND MATERIAL:- **It best suits a project where neither the consultant nor the client are completely sure
of what the client needs are or how complex the project may be - which makes estimations difficult.
**ADVANTAGES:- (To Clients) **Greater control over the project. **Simple and transparent method of
calculating the total fees of the consultants. (To Consultants) **Minimal risk in project. **Provides an
opportunity to create trust with clients. **DISADVANTAGES:- (To Clients) **Risk of budget overruns.
**Responsibility to carefully manage scope creep. (To Consultants) Revenue is limited to the time that the
consultancy works for the client. RISK REWARD:- **The best solution to motivate consultants to bring
about radical changes in the client business. **ADVANTAGES:- (To Clients) **Consultancies objectives
are aligned with business objectives. **If desired results are not achieved, clients can retain a part of the
agreed reward. (To Consultants) **Opportunity to gain a large reward sum. **DISADVANTAGES:- (To
Clients) **Wrong performance metrics lead to wrong behaviour. **Tedious process to decide on the mode
of reward to be paid to consultants. **Difficult to isolate results that have been achieved solely due to the
success of the project. (To Consultants) **Risk of losing major part of income from the project. **Disputes
may arise when deciding whether consultancies should be paid their reward or not. PRICING METHOD:-
**Many new consultants underestimate operating costs when pricing their services. Bill Mooney, founder of
William Mooney Associates, a consultant to consultancies, offers a simple formula for calculating your daily
rate. The Magic Formula: Start from the bottom of your income statement and build up to get to your top
line (i.e. the fees that you will charge). Profit + Labor Costs + Overhead = Daily Fee Revenue Labour: Your
time is money. If you plan to take home an annual salary of $200,000 and work 260 days per year (365 days,
minus Sundays, a few Saturdays, holidays and two weeks’ vacation), you will pay yourself $769 per working
day. Overhead: Overhead includes recurring expenses associated with running your business, such as rent,
a secretary, phone bills, postage, benefits, insurance and equipment. Say all of that equals $15,000 per month,
or $180,000 per year. Next, divide your annual costs by the number of working days per year. Market-research
firm Kennedy Information figures most consultants spend 58% to 62% of their time working directly for their
clients; 62% of those 260 days equals 161 days per year. Grand total: $1,120 per day. Profit Margin:- By
Mooney’s estimates, a consultancy’s profit margin averages between 15% and 25% of its total expenses.
Continuing from the previous slide, 20% of $1,120 is $224. Adding It All Up: Plug those numbers back into
the fee formula. Your daily fee equals $769 + $1,120 + $224. That’s $2,113 per day–or $211 per hour for a
ten-hour day. CONSULTING FEE MODELS:-**Doubling/tripling your hourly wage. **Using a daily rate
for consulting. **Setting consultant fees by the project. **Setting consulting fees based on performance.
**Setting consultant fees strategically using real-life data. **Charging what everyone else charges. **Moving
to Solution-based Fees.

UNIT III
 IN-HOUSE MANAGEMENT:-**In-house refers to conducting an activity or operation within a company,
instead of relying on outsourcing. a firm uses its own employees and time to keep a division or business
activity, such as financing or brokering, in-house. ** An in-house operation is an activity performed within
the same business, using the company’s assets and employees to perform the necessary tasks, whereas
outsourcing involves hiring outside assistance, often through another business, to perform those activities
instead of using internal assets or employees. MANAGEMENT OUTSOURCED:-**Outsourcing is the
business practice of hiring a party outside a company to perform services and create goods that traditionally
were performed in-house by the company's own employees and staff. Usually done as a cost-cutting measure,
it can affect jobs ranging from customer support to manufacturing to the back office. IN-HOUSE
MANAGEMENT VERSUS MANAGEMENT OUTSOURCED:-OUTSOURCED:- **PROS:-
**Specialized:- you can get the best. **Personal attention from a senior practitioner. **Each campaign treated
uniquely. **Holistic view:- consultant is intimately aware of all aspects of the campaign. **Relationship:- it
is easier to form a long term relationship with the owner/operator than an account rep that may change jobs.
**CONS:- **Specialized:- yet another vendor to manage. **Has to wear many hats (eat what they kill).
**Physical limitations on number of clients that can be serviced. **Can be more expensive per hour.
**Limited in the number of things that can be done well. IN-HOUSE:- **PROS:- **Strong connection to
the product / service offering and in depth understanding of the industry and top competitors. **Concentrated
focus on servicing just one client. **Less expensive to maintain internal resources. **Timely and complete
access to forecasts, sales data, inventory, etc. **Better integration and coordination with other internal
departments. **CONS:- **Internal positions do not usually foster competitive spirit. **A sense of boredom
and eventual lack of motivation due to continually working. **Lack of informal learning opportunities which
inhibits the ability to deliver in a rapidly changing environment. **Professionals are rarely equally trained
or experienced in both organic optimization and paid search marketing. **Difficult to drive organizational
change from within. **External resources are needed to justify priorities, directional change, and budgets.
COST VERSUS VALUE OF ADVICE USING OUTSOURCING CONSULTANT:-**If an outsourcing
consultant warns of danger zones as a buyer steps into uncharted territory, the advice is invaluable. **If the
advice ties up dangling loose ends, gathers and analyses relevant input from the right sources, and prevents
costly mistakes, the value is easy to measure. **If the consultant provides a systematic way of making things
predictable and understanding implications of decisions, the value of advice is far more than its price. **An
outsourcing advisory firm’s value includes crucial expertise in designing an effective RFP, service levels,
pricing components, and other contractual elements. **An advisory firm has daily insight into the
marketplace and can provide valuable advice on strategic and cultural fit of potential providers. **An
advisory firm knows the pitfalls of outsourcing relationships and can construct an implementation/transition
phase that comes in on time and on budget. SEPARATING CONSULTING SUCCESS FROM
CONSULTING DISASTER:-FOR CONSULTANTS:- **Listen to your clients. **Quickly establish
rapport with your clients. **Be direct and honest. **Be flexible and responsive. **Don’t overprice your
services. **Don’t under-price your services. **Have more than one primary client. **Accept as much work
as you can without compromising quality. **Treat your current clients like gold. **Constantly market to
bring in future business. FOR CLIENTS:- **Best for companies to engage consultant for a specific task.
**Consultants are not a substitute for vision and good management. **Bringing in consultants without any
clear idea of the help that is needed is a waste of time and money. **Companies should not allow the
consultant to make highly subjective judgment about the complexity of the problem to be addressed before
studying the problem itself. **Strong dialogues between the consultant and the client. **Conviction for
correct course of action and change.

UNIT IV

ORGANIZATION CULTURE:-Organization culture refers to the beliefs and principles of a particular

organization. The culture followed by the organization has a deep impact on the employees and their
relationship amongst themselves. ELEMENTS:- **Artefacts. **Values. **Heroes.
CHARACTERISTICS:- 1. Individual Autonomy:- The degree of responsibility, freedom and
opportunities of exercising initiative that individuals have in the organisation. 2. Structure:- The degree to
which the organisation creates clear objectives and performance expectations. It also includes the degree of
direct supervision that is used to control employee behaviour. 3. Management Support: The degree to
which, managers provide clear communication, assistance; warmth and support to their subordinates.
4. Identity: The degree to which, members identify with the organisation as a whole rather than with their
particular work group or field of professional expertise. 5. Performance Reward System: The degree to
which reward system in the organisation like increase in salary, promotions etc. is based on employee
performance rather than on seniority, favouritism and so on. 6. Conflict Tolerance: The degree of conflict
present in relationships between colleagues and work groups as well as the degree to which employees are
encouraged to air conflict and criticisms openly. 7. Risk Tolerance: The degree to which, employees are
encouraged to be innovative, aggressive and risk taking. 8. Communication Patterns: The degree to which,
organisational communications are restricted to the formal hierarchy of authority. 9. Outcome Orientation:
The degree to which, management focuses on results or outcomes rather than on the techniques and processes
used to achieve these outcomes. 10. People Orientation: The degree to which, management decisions take
into consideration the impact of outcomes on people within the organization. LIMITATIONS:- **Barriers
to change. **Barriers to diversity. **Barriers to acquisitions and mergers. TYPES OF
ORGANIZATIONAL CULTURE:- Normative Culture:- **Norms and procedures of the organization
are predefined. **Employees behave in an ideal way and strictly adhere to the policies of the organization.
Pragmatic Culture:- **More emphasis on the clients and the external parties. **Customer satisfaction is
the main motive. **Such organizations do not follow any set rules. Academy Culture:- **Roles and
responsibilities are delegated according to their skill set. **Training to upgrade the knowledge and to improve
their professional competence. **The employees stick to the organization for a longer duration and grow
within it. **Educational Institutions. Baseball team Culture:- **Employees are the most treasured
possession of the organization who have a major role in its successful functioning. **Individuals always have
an upper edge and they do not bother much about their organization. **Advertising agencies, event
management companies, financial institutions. Club Culture:- **Individuals are hired as per their
specialization, educational qualification and interests. **Appraisals are a regular feature of such a culture.
Fortress Culture:- **Employees are not very sure about their career and longevity. **The employees are
terminated if the organization is not performing well. **Stock broking industries. Tough Guy Culture:-
**Feedbacks are essential. Team managers are appointed to discuss queries with the team members and guide
them whenever required. **Employees are under constant watch in such a culture. Bet your company
Culture:- **Take decisions which involve a huge amount of risk. **The principles and policies are formulated
to address sensitive issues and it takes time to get the results. Process Culture:- **Adherence to the
processes and procedures of the organization. **Feedbacks and performance reviews do not matter much.
**Government organizations. Cultural Values and Behavioral Norms within organizations:
**Organization’s mission and image **Seniority and authority **Relative importance of different
management positions and functions **Treatment of people **Role of women in management and other jobs
**Selection criteria for managerial and supervisory positions **Work organizations and discipline
**Management and leadership style **Decision making process **Circulation and sharing of information
**Communication patterns **Socialization patterns **Ways of handling conflict **Identification with the
organization. CROSS CULTURAL MANAGEMENT:- It management involves managing work teams in
ways that considers the differences in cultures, practices and preferences of consumers in a global or
international business context. Many businesses have to learn to modify or adapt their approaches in order to
compete on a level in fields no longer bound by physical geography with online interactions more common
in business and other situations. Functions:-**Recruiting candidates that can be effective in cross-cultural
environments **Handling differing regulatory environments for business **Training employees to handle
intercultural communication issues **Facilitating cross-cultural teams **Aligning HR policies and
procedures across corporate entities in different nations

IMPORTANCE OF ORGANISATIONAL CULTURE:- **Effective control. **Promotion of innovation.

**Strategy formation and implementation. **Strong commitment from employees. **Internalisation.
**Performance and satisfaction. **Culture decides the way employees interact at their workplace. **Culture
of the workplace also goes a long way in promoting healthy competition at the workplace. **Represents
certain predefined policies which guide the employees and give them a sense of direction at the workplace.
**The work culture goes a long way in creating the brand image of the organization. **Work culture unites
the employees who are otherwise from different back grounds. FUNCTION OF ORGANISATIONAL
CULTURE:-External Adaptation:- **Mission and strategy:- shared understanding of primary tasks.
**Goals:- derived from mission. **Means:- how goals should be achieved. **Measurement:- determining
how well the group is doing. **Correction:- remedial and repair strategies. Internal Integration:-**Creating
a common language and conceptual categories. **Defining group boundaries and criteria for inclusion and
exclusion. **Distributing power and status. **Developing norms of intimacy. **Defining and allocating
rewards and punishments. **Explaining the unexplainable, ideology and religion. CULTURAL VALUES
AND BEHAVIOURAL NORMS:-**Organization’s mission and image. **Seniority and authority.
**Relative importance of different management positions and functions. **Treatment of people. **Role of
women in management and other jobs. **Selection criteria for managerial and supervisory positions. **Work
organizations and discipline. **Management and leadership style. **Decision making process. **Circulation
and sharing of information. **Communication patterns. **Socialization patterns. **Ways of handling
conflict. **Identification with the organization. CONSULTING FIRMS CULTURE:- **Consulting
methods and practices. **Commitment to clients. **Responsibilities and rights of junior and senior
consultants. **Career progression. **Transfer of know-how to clients. **Code of ethics. HOW
EMPLOYEES LEARN CULTURE:- **Stories. **Rituals. **Language. **Ceremonies. **Material
Symbols. **Statement of principles. CREATING ETHICAL ORGANISATIONAL CULTURE:- **Being
a visible role model. **Communicating ethical expectations. **Providing ethical training. **Rewarding
ethical acts and punishing unethical ones. **Providing protective mechanisms.
 CULTURAL MODELS:-1) Hofstede Model of Cultural Dimensions:- Power Distance: The extent to
which the people of a particular culture are willing to accept unequal power distribution. **High Power
Distance:- **Centralized decision making. **Management and superiors are highly respected and have the
last say in decisions. **Low Power Distance:- **Everyone expects to share in decision making.
**Management hierarchies are flatter and more open to questioning. Uncertainty Avoidance:- The extent
to which a society fears and avoids uncertainty and uncertain outcomes. **High Uncertainty Avoidance:-
**Strictly defined rules of behaviour and formality. **Things that are different or unexplained can be viewed
as dangerous. **Low Uncertainty Avoidance:- **Willingness to take risks. **More experimentation and / or
innovative behaviour. Individualism vs. Collectivism:- The extent to which people in the society define
themselves as part of larger groups. **High Individualism:- **Social ties are loose. **Individuals expected
to look after themselves. **High Collectivism:- **Individuals are strongly incorporated into groups of family,
clan, school. **Government policies often favour the group over individual rights. Masculinity vs.
Femininity:- The extent to which a society favours certain gender traits. **High Masculinity:- **Favours
assertiveness. **Emphasis on competition. **High Femininity:- **Focused on quality of life. **Importance
placed on the well-being of relationships. Long vs. Short-term Time Orientation:- The extent to which
society is focused on the future as opposed to the past and present. **Long-term:- **Promotes virtue and
persistence. **Focus towards future rewards. **Short-term:- **Emphasize the past and present. **Fosters a
respect for tradition. 2) Edgar Schein Model:- ** Organizations do not adopt a culture in a single day, instead
it is formed in due course of time as the employees go through various changes, adapt to the external
environment and solve problems. ELEMENTS:- **Artefacts:- The characteristics of the organization
which can be easily viewed, heard and felt by individuals collectively known as artefacts. **Values:- values
of the individuals working in the organization play an important role in deciding the organization culture.
The thought process and attitude of employees have deep impact on the culture of any particular organization.
**Assumed Values:- assumed values of the employees which can’t be measured but do make a difference to
the culture of the organization. There are certain beliefs and facts which stay hidden but do affect the culture
of the organization. 3)Robert A Cooke Model:- Every employee has a way of behaving at the workplace
which he feels is the correct way and would help him survive in the organization for a longer duration. Such
perceptions of employees form the culture of the organization. **TYPES:- Constructive Culture:- Certain
organizations which encourage healthy interaction amongst the employees. **Achievement. **Self
actualisation. **Encouragement. **Affiliation. Passive Culture:- The main motive of the employee is to
please the superiors and make his position safe and secure in the organization. **Approval. **Conventional.
**Dependent. **Avoidance. Aggressive Culture:- The culture promotes competition amongst the
employees. **Opposition. **Power. **Perfectionist. **Competitive. 4) Charles Handy Model:- **Power
culture. **Task Culture. **Person Culture. **Role culture. 5) Open Door Policy:- The doors of the offices
of superiors or the management (including the CEO) must remain open for the employees to have an easy
access in cases of queries. **Encourages effective communication between the employee and the
management. **No room for confusion when the employees directly interact with their superiors.
**Encourages healthy discussion at the workplace. **Enables the employees to seek their boss’s help and
freely discuss things with them for better clarity. CULTURAL INTEGRATION:-Cultural integration is the
blending of two or more different cultures that happens without one of the cultures sacrificing the
characteristics that make it unique. The exchanges include a culture's popular beliefs, rituals and practices.
Cultural integration in a workplace setting makes it easier for everyone to work together, as noted by Mighty
Recruiter. This type of integration helps to close the gap between worker's cultures. It benefits a company's
brand by creating an environment of workplace diversity. It's more comfortable for both current and new
workers when differences are embraced as part of a company's culture.

UNIT VI

STAKEHOLDER:-**A stakeholder is anyone with an interest in a business. Stakeholders are

individuals, groups or organisations that are affected by the activity of the business. TYPES:- **Internal:-
Internal Stakeholders are engaged in economic transactions with the business (Owners; Managers; Workers).
** External:- These are affected by or can affect a business's actions without being directly engaged in the
business (Activist groups, communities, general public). STAKEHOLDERS AND THEIR
OBJECTIVES:-Directors:- **To direct the strategies and major decision making of the business. **To
retain control. **To increase their own power and status from business growth. Shareholders:- **To
receive dividends from after tax profits. **To share in the success / profitability of the business through an
appreciating share price. Workforce:- **To receive a fair wage. **To ensure good working conditions.
**To secure their jobs through the survival and expansion of the business. Customers:- **To obtain good
value for money from the goods and services purchased. **To receive high levels of customer service. **To
receive after sale services and supply of spares from businesses which survives into the future. Suppliers:-
**To continue to sell profitably to the business. **To be paid promptly and fully for the goods supplied.
Bank Lenders:- **To be paid back in full when repayments are due. **To receive interest on loans when
due. Community:- **To benefit from employment, the business creates. **To be free from environmental
disadvantages the firm might create. Government:- **To receive tax revenues from profitable firms. **To
direct the operations of the business for the benefit of the nation. **To control business operations and
performance to ensure it remains within national laws. **To assist businesses in accordance with national
and local policies. Competitors:- **To compete by all lawful means. **To differentiate its products from
those of other businesses. **To compare and contrast performances with other businesses. RELATIONSHIP
AMONG STAKEHOLDERS:-Higher quality environment. Continuous improvements / Breakthrough
innovations. Higher quality products and services. Customer satisfaction. Growth / Profits
Stockholder Satisfaction. CONFLICT OF INTERESTS AMONG STAKEHOLDERS:-
**Shareholders and management:- Profit maximisation is often the over-riding objective of shareholders -
resulting in large dividend payments for them. However, it is far more likely that the managers of the business
will aim to profit satisfy rather than profit maximise. **Customers and the business:- Customers are unlikely
to remain loyal and repeat purchase from the business if the product that they have purcha sed is of poor
quality and/or is poor value for money. **Suppliers and the business:- Suppliers are often quoted as
complaining about the lack of prompt payments. **The community and the business:- the local community
can often suffer through the negative externalities of pollution.

CORPORATE GOVERNANCE:-**It is the system of rules, practices and processes by which a company
is directed and controlled. Corporate governance essentially involves balancing the interests of the many
stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers,
government and the community. Since corporate governance also provides the framework for attaining a
company's objectives, it encompasses practically every sphere of management, from action plans and internal
controls to performance measurement and corporate disclosure. OBJECTIVES:- **That a properly
structured Board capable of taking independent and objective decisions is in place at the helm of affairs.
**That the Board is balanced as regards the representation of adequate number of non-executive and
independent directors who will take care of the interests and wellbeing of all the stakeholders. **That the
Board adopts transparent procedures and practices and arrives at decisions on the strength of adequate
information. **That the Board has an effective machinery to sub serve the concerns of Stakeholders. **That
the Board keeps the shareholders informed of relevant developments impacting the company. **That the
Board effectively and regularly monitors the functioning of the management team. **that the Board remains
in effective control of the affairs of the company at all times. BENEFITS:- **Good corporate governance
ensures corporate success and economic growth. **Strong corporate governance maintains investors’
confidence, as a result of which, company can raise capital efficiently and effectively. **It lowers the capital
cost. **There is a positive impact on the share price. **It provides proper inducement to the owners as well
as managers to achieve objectives that are in interests of the shareholders and the organization. **Good
corporate governance also minimizes wastages, corruption, risks and mismanagement. **It helps in brand
formation and development. **It ensures organization in managed in a manner that fits the best interests of
all. CORPORATE GOVERNANCE INITIATIVES BY GOVERNMENT:- **New Companies Act –
inducing good CG practices through self-regulation, responsive legal framework based on shareholders’
democracy; disclosure based regime; rational penal provisions with built-in deterrence and effective
protection. **Amendments to the Acts governing three professional institutes (ICAI/ICSI/ICWAI) with a
view to strengthen the disciplinary mechanism and bring transparency in their working. **Notification of
Accounting Standards with a view to bring the disclosure norms in tune with the international reporting
standards. **SEBI – Clause 49 – Appointment of IDs, Audit committee, Code of conduct, disclosures of
related party transactions, remunerations, compliance of accounting standards, certifications of CEO & CFO,
Compliance Certification & Whistle-blower policy (optional). **Introduction of LLPs; transformation in the
service delivery mechanism for transparency and certainty – low-cost, easy compliance. **Setting up of
Investor Education and Protection Fund. **Empowering investors through the medium of education and
information with the help of investor associations, VOs, NGOs. **Launching of websites –
www.investorhelpline.in and www.watchoutinvestors.com.

ETHICS:-**A set of standards derived from Social Values, to choose what is good and evil, Right or
wrong, ought to do and not to do is Ethical Standards. These are the set of values in accordance to the Social
norms which helps to survive in the community. The Behaviour values which are considered
important presently for the existence, acts as a standard for the future ethical organization decision making.
FACTORS LEADING TO UNETHICAL DECISION MAKING:-One of the reason why there is been an
increasing unfair practices are because of Competition Driven Performance Management, where the
possibilities of Violation of rules are higher. **Since the objective of any organization is Profit maximization,
the concentration of the mangers tends to be more on short term goals rather than long term,
which thrust them for taking unethical norms just to meet the performance targets. **Intrinsic
Factors, like lack of Moral Awareness about the nature of decision, can make the decision
go wrong and other Individual Factor values can also arises problem in making decision as per
organization Ethical standards which influences greatly where the intensity depends on how strong one
is at, at their own values. **Even after the implementation of Ethics policy it has been observed that, the
subordinates follow what their supervisors likes rather than, what the policy says. So, if the manager is
unethical, the subordinates follow the manager in such unfair practices. **Problems in Ethical decision
making may occur not only when the intentions are evil, but also when there is a conflict between Individual
Interest and social norm.
 POWER:- Power is the ability to:- **Get someone to do something you want done. **Make things happen
in the way you want. INFLUENCE is:- **What you have when you exercise power. **Expressed by
others’ behavioural response to your exercise of power. TYPES OF POWER:-Reward power:- **The
extent to which a manager can use extrinsic and intrinsic rewards to control other people. **Success in
accessing and utilizing rewards depends on manager’s skills. Coercive power:- **The extent to which a
manager can deny desired rewards or administer punishments to control other people. **Availability varies
from one organization and manager to another. Legitimate power:- **Also known as formal hierarchical
authority. **The extent to which a manager can use subordinates’ internalized values or beliefs that the “boss”
has a “right of command” to control their behavior. **If legitimacy is lost, authority will not be accepted by
subordinates. Expert power:- **The ability to control another person’s behavior through the possession of
knowledge, experience, or judgment that the other person needs but does not have. **Is relative, not absolute.
Referent power:- **The ability to control another’s behavior because the person wants to identify with the
power source. **Can be enhanced by linking to morality and ethics and long-term vision.
ORGANISATIONAL POLITICS:-**Politics refers to the structure and process of the use of authority and
power to affect definition of goals, direction and the other major parameters of the organization. Decisions
are not made in a rational way but rather through compromise, accommodation and bargaining. **Political
behavior is outside one’s specified job requirements. **It generates efforts to influence the goals, criteria or
processes used for decision making that will result in the distribution of advantages and disadvantages within
the organization. FEATURES:- **Organizational politics involves the use of some kind of authority,
power or pressure over other person or groups. Rewards and punishment are commonly used for this purpose.
**Basically political behavior is self-serving in nature. Attempts are made to use organizational resources for
personal benefits or to give some benefits to others. **Political behavior is outside ones specified job
requirements. It involves getting things accomplished that are not formally recognized practices or
procedures. **Political decisions may not be rational from the organizational point of view. They are usually
made to acquire more power. HANDLING ORGANIZATIONAL POLITICS:- **Clearly defined jobs.
**Proper managerial behavior. **Effective communication. **Fair evaluation system. **Judicial distribution
of resources.

UNIT V

ECONOMIC GROWTH AND CHANGE AREAS:-** Economics growth is nothing but a rise in the
inflation and adjusted market value of the goods and services produced by an economy over a period of time.
**It is usually measured in per capita terms, it is the percent rate of increase in real GDP (Gross Domestic
product). ** The rate of economic growth speaks about the Geometric yearly rate of growth in the GDP
between the first and the most recent year over time frame. Certainly this development rate is the pattern in
the normal level of GDP over the period, which invariably overlooks the changes in the changes in the GDP
around this pattern. POLICY REFORMS:-**A process in which changes are made to the formal “rules of
the game”- including laws, regulations and institutions- to address a problem or achieve a goal such as
economic growth, environmental protection or poverty alleviation. Policy reforms play a very important role
in both the domestic and international scenario. FACTOR AFFECTING GROWTH:- 1. POLITICAL
INSTITUTIONS:- As institutions influence behaviour and incentives in real life, they forge the success or
failure of nation. 2. CAPITAL:- Capital in economics ordinarily refers to physical capital, which consists of
structures and equipment used in business up to a point increases in the amount of capital per worker are an
important cause of economic output growth. 3. NEW PRODUCTS AND SERVICES:- It is one of the major
cause of economic growth to introduce new products & services and the improvement of existing products.
4. PHASES OF GROWTH IN ECONOMCY:- The transition from an agricultural economy to a
manufacturing economy has increased the size of the sector with the highest output per hour in the process
reducing the size of the sector with relatively less output per hour. 5. GLOBALIZATION:- It implies the
opening of local and nationalist perspectives to a broader outlook of an interconnected and interdependent
world with free transfer of capital, goods and services across national frontiers. EMERGING
OPPORTUNITIES IN VARIOUS SECTORS:- 1. Social Sector:-**Social Entrepreneurship ** Larger
funding pool **skills training & development **job creation **Partnerships. 2. Political republicanism:-
Democratic republicanism **Foreign relations **Role in international politics 3. Economics sector:-
**Booming economy **Primary sector **Secondary sector **Tertiary and quaternary sector. 4.
Environmental sector

BARRIERS TO CROSS CULTURAL:- Language Barriers:-**A common cross cultural barrier in business
communication is of course, language. Although English is regarded as the common international language
of business, not every business globally uses English on a regular basis. Employees may have more difficulty
when communicating in English, which can lead to misunderstandings when taking direction, understanding
level of urgency and communicating issues or concerns. Cultural Barriers:-**Every culture has a different
set of values, business ethics, accepted behavior and decorum− even different facial expressions and gestures.
It is important to understand these differences – to show genuine respect for other cultural mores –when
communicating with professionals from other cultures. Presentation Style:-**Culture influences how people
in different countries prefer to receive information.