Академический Документы
Профессиональный Документы
Культура Документы
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 1 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 2 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 3 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 4 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 5 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Organisation structure refers to the formal system of task and reporting relationships
that controls, co-ordinates and motivates employees so that they work together to
achieve organisational goals.
23. What is Departmentation?
Departmentation is the process of classifying and grouping all the activities of an
enterprise into different units and sub-units.
24. What are the types of Departmentation?
Ans.
1. Functional Departmentation.
2. Product wise Departmentation.
3. Territorial or Geographical Departmentation.
4. Customer wise Departmentation.
5. Process or Equipment wise Departmentation.
6. Combined or Composite Form of Departmentation.
25. What is Centralization and Decentralization?
Centralization is the systematic and consistent reservation of authority at central
points within an organization. Decentralization applies to the systematic delegation of
authority in an organization-wide context.
26. What is an Organization chart?
A picture of the reporting structure and the division of labor in an organization
27. What is Delegation of Authority?
Delegation means conferring authority from one manager or organizational unit to
another in order to accomplish particular assignments.
28. What are the steps in Delegation?
Ans.
1) Determination of results expected
2) Assignment of duties (description of activities and results expected)
3) Authorization for actions (making commitments, use of resources and other
actions required to get work done)
4) Creation of obligation
29. What is Span of Management?
The number of subordinates who report directly to a manager
30. What is Line and staff authority?
Page 6 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Line authority is exercised by the superior over his immediate subordinates. Staff
managers assist line managers (in advisory capacity) in discharging their duties
efficiently.
31. What is Network and Virtual Organizations?
Virtual Organizations: A firm that contracts out almost all functions. The only function
retained by the organization is the name and the coordination among the parties. A virtual
organization might not have even have a permanent office.
Network Organizations : A network organization is a collection of autonomous firms or
units that behave as a single larger entity, using social mechanisms for coordination and
control.
32. What is Staffing?
It is the process of filling vacant position by appointing the right personnel at the right
job, at the right time.
33. What are Staffing functions?
Ans.
1) Procurement: manpower planning, Recruitment, Selection, Placement.
2) Development: Orientation, Training, Development, counseling.
3) Compensation: Job evaluation, performance appraisal, promotion, basic pay
and rewards.
4) Integration: Communication, grievance handling, discipline.
5) Maintenance: Welfare measures
34. What are the principles of staffing?
Ans.
1) Staffing objective: qualified personnel who are able and willing to occupy them
fill organization roles.
2) Staffing responsibility: every manager participates in the staffing process.
3) Job definition: The more precisely the results expected of managers are
identified, the more the dimensions of their positions can be defined.
4) Managerial appraisal: The more clearly variable objectives and required
managerial activities are identified, the more precise can be the appraisal of
managers against these criteria.
5) Open competition: The more an enterprise is committed to the assurance of
quality management, the more it will encourage open competition among all
candidates for management positions.
Page 7 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 8 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 9 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 10 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 11 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 12 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
BUSINESS COMMUNICATION
1. What do you understand by the term ‗communication.‘?
Communication is the activity of conveying information through the exchange of
thoughts and messages by speech, visuals, signals, writing or behavior.
2. Can you trace the origin of the word communication?
The word communication has come from the Latin words ‗Communis and
communicare.‘ ‗Communis‘ means common, communality or sharing and
‗communicare‘ means to make something common.
3. What are internal and external communications?
While internal communication takes place between and among employees within an
organization, external communication occurs between those within the company and
those in the outside world.
For internal communication, written media may be memos, reports, bulletins, job
descriptions, posters, notes, employee manuals, electronic bulletin boards etc. Oral
communications may take the form of staff meeting reports, face to face discussions,
presentations, audio tapes, telephone chats, conferences or video tapes. Grapevine
is another oral channel.
External written communication – letters, reports, proposals, e-mails, contracts,
advertisements, brochures, catalogues news releases etc.
External oral communication – face to face discussions, telephones, presentations
through teleconferences, video conferences etc.
4. What are the 7Cs of communication?
I. Completeness - Provide all necessary information-answering all the five W‘s-
who, what, when , where, why
II. Conciseness – Eliminate wordy expressions, include only relevant material
and avoid unnecessary repetition
III. Consideration – Focus on ‗you‘ instead of ‗I‘ and ‗we‘. Show interest in the
audience and in the receiver. Emphasize positive pleasant facts.
IV. Concreteness- Use specific facts and figures – put action in the words, vivid
image building words must be chosen
V. Clarity – Choose precise, concrete and familiar words – construct effective
sentences and paragraphs
Page 13 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 14 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Know the audience, to whom you are writing, avoid lengthy sentences, use simple
words, use of active and vivid words, use of positive ideas, avoid gender biased
words and finally review and revise the text to ensure the message is free from
spelling errors and grammatical mistakes.
11. What are the different types of interviews?
The word interview comes from Latin and French words meaning to ―see between‖ or
―see each other.‖
Person who answers the questions –interviewer
Person who asks the questions – interviewer
Personal interviews –for promotion, retirement and resignation
Evaluation interviews – to review the progress of the interviewee, Persuasive
interviews-to sell someone a product or an idea
Structured Interviews- a set of pre-determined agenda or questions are followed
Unstructured interview- when the interview does not follow the formal rules or
procedures. The discussion will be free flowing
Counseling interviews- to find out what has been troubling the workers and why work
is suffering etc...
Stress interview – to place the interviewee in a stress situation to observe the
interviewee‘s reaction.
Public interviews- political parties‘ radio-television and newspaper discussion
12. What are the characteristics of a good report?
A report is a document that presents information in an organized format for a specific
audience and purpose.
Precision, accuracy of facts, relevant matter, reader-oriented, simple language,
conciseness, grammatical accuracy, unbiased recommendation, clarity and attractive
presentation.
13. What are the characteristics of negotiation?
Minimum of 2 parties
Both parties must have pre-determined goals which they wish to achieve
There is a clash of pre-determined goals
There is an expectation of outcome by both the parties
Both the parities believe the outcome to be satisfactory
Both parties will be willing to compromise their position to a certain extent
Why is listening an important component of the communication process?
Page 15 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 16 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
MANAGERIAL ECONOMICS
1) Explain the difference between Micro Economics and Macro Economics
Microeconomics is the study of individuals, households and firms' behavior in decision making
and allocation of resources. It generally applies to markets of goods and services and deals with
individual and economic issues.
Macroeconomics is the branch of economics that studies the behavior and performance of an
economy as a whole. It focuses on the aggregate changes in the economy such as
unemployment, growth rate, gross domestic product and inflation.
2) State the law of demand. What are the determinants of demand?
Definition: The law of demand states that other factors being constant (cetris peribus), price and
quantity demand of any good and service are inversely related to each other. When the price of a
product increases, the demand for the same product will fall.
Price of the commodity, Income of the consumer Prices of related goods Consumers tastes and
preferences, Consumers‘ expectations Size and composition of population Government policy
3) What are the factors of production? How are they remunerated?
Land labour capital and entrepreneurship
Rent wages interest and profit
4) What do you mean by opportunity cost
The value of the next-best alternative is called opportunity cost. The opportunity cost of any
action is the value of what is given up—the next-highest-ranked alternative—because a choice
was made. When you study one more hour, there may be many alternatives available for the use
of that hour, but assume that you can do only one other thing in that hour—your next-highest-
ranked alternative.
5) Define utility.
Utility is the satisfaction a person receives from the consumption of a good or service or from
participation in an activity. Happiness, joy, contentment, or pleasure might all be substituted for
satisfaction in the definition of utility
6) How do you explain Gross National Product and Gross Domestic Product
Gross domestic product: - Gross domestic product is the money value of all final good and
services produced in the domestic territory of a country during an accounting year
Gross national product: - Gross national product is defined as the sum of the gross domestic
product and net factor incomes from abroad. Net factor income from abroad =Factor income
earned from abroad by residents – Factor income of non-residents in domestic territory.
Page 17 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Fiscal policy is the use of government revenue collection and expenditure to influence the
economy. Fiscal policy is the government programme of making discretionary changes in the
pattern and levels its expenditure, taxation and borrowings in order to achieve intended
economic growth, employment, income equality and stabilization of the economy on a growth
path
Objectives of the Fiscal policy
•To mobilise adequate resources for financing various programmes and projects adopted for
economic development.
•To raise the rate of savings and investment for increasing the rate of capital formation.
•To promote necessary development in the private sector through fiscal incentive
•To arrange an optimum utilisation of resources
•To control the inflationary pressures in economy in order to economic stability.
•To remove poverty and unemployment
•To attain the growth of public sector for attaining the objective of socialistic pattern of society
•To reduce regional disparities
8) What is monetary policy and what are its objectives?
Monetary policy is the macroeconomic policy laid down by the central bank. It involves
management of money supply and interest rate and is the demand side economic policy used by
the government of a country to achieve macroeconomic objectives like inflation, consumption,
growth and liquidity.
RBI-Monetary policy refers to the use of monetary instruments under the control of the central
bank to regulate magnitudes such as interest rates, money supply and availability of credit with a
view to achieving the ultimate objective of economic policy.
Objectives of Monetary Policy
• Maintain Price stability as a pre-condition for sustainable growth
• Flexible inflation rate
• Maximum feasible output
• Ensuring adequate flow of credit to the productive sectors of the economy to support
economic growth
• High rate of economic growth
• Full employment
• Greater equality in the distribution of income and wealth
Page 18 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 19 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Elasticity measures permit comparisons among diverse products because they are based on
percentages.
14) Define Law of Supply
Definition: Law of supply states that other factors remaining constant, price and quantity supplied
of a good are directly related to each other. In other words, when the price paid by buyers for a
good rises, then suppliers increase the supply of that good in the market.
15) Define Law of diminishing marginal utility
As we consume more of a given product, the added satisfaction we get from consuming an
additional unit declines
16) What is Consumer Surplus?
Consumer surplus is the difference between what consumers are willing to pay and what they
actually pay for a product in the market.
17) What is Indifference curve?
An indifference curve is a graph showing combination of two goods that give the consumer
equal satisfaction and utility. Each point on an indifference curve indicates that a consumer
is indifferent between the two and all points give him the same utility.
1) What is you understanding on Economies of scale
As a firm‘s output increases, its Long Run Average Total Cost tends to decline. This results from
specialization of labor and management, and potentially a better use of capital and
complementary production techniques.
19) What is perfect competition and what are the characteristics of perfect competition?
Perfect competition describes a market structure where competition is at its greatest possible
level. To make it more clear, a market which exhibits the following characteristics in its structure
is said to show perfect competition:
■ Many buyers and sellers
■ Homogeneous (standardized) products
■ No barriers to market entry or exit
■ No long-run economic profits
■ No control over price
20) What is Monopolistic competition and What are the characteristics of Monopolistic
competition?
Page 20 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Monopolistic competition is a market structure where, like perfect competition, there are many
firms and freedom of entry into the industry, but where each firm produces a differentiated
product and thus has some control over its price.
■ Many buyers and sellers
■ Differentiated products
■ No barriers to market entry or exit
■ No long-run economic profits
■ Some control over price
21) What are the characteristics of Oligopoly?
• Fewer firms (such as the auto industry)
• Mutually interdependent decisions
• Substantial barriers to market entry
• Potential for long-run economic profits
• Shared market power and considerable control over price
22) What is monopoly and what are the characteristics of monopoly?
Monopoly is a market structure where there is only one firm in the industry.
■ One firm
■ No close substitutes for product
■ Nearly insuperable barriers to entry
■ Potential for long-run economic profit
■ Substantial market power and control over price
23) What do you mean by Marginal Revenue
The change in total revenue from selling an additional unit of output.
24) What is price discrimination?
Charging different consumer groups different prices for the same product
25) What you mean by marginal utility?
The change in total utility that comes from consuming one additional unit of a good or service
26) What is production function?
Production function the relationship between quantity of inputs and the resulting quantity of
outputs
27) What is marginal cost?
Marginal Cost is (MC) the additional cost incurred by a firm when it produces one additional unit
of output.
Page 21 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 22 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
The factors that are responsible for bringing about changes in a time series, also
called the components of time series, are as follows:
Page 23 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Irregular Fluctuations.
10. Define Index numbers
A number showing the variation in a price or value compared with the price or
value at a specified earlier time (often represented by the number 100).
11. Define parametric and non parametric Test
The parametric test is the hypothesis test which provides generalizations for
making statements about the mean of the parent population. A t-test based on Student‘s
t-statistic, which is often used in this regard.
The t-statistic rests on the underlying assumption that there is the normal distribution of
variable and the mean in known or assumed to be known. The population variance is
calculated for the sample. It is assumed that the variables of interest, in the population
are measured on an interval scale.
The nonparametric test is defined as the hypothesis test which is not based on
underlying assumptions, i.e. it does not require population‘s distribution to be denoted by
specific parameters.
The test is mainly based on differences in medians. Hence, it is alternately known as the
distribution-free test. The test assumes that the variables are measured on a nominal or
ordinal level. It is used when the independent variables are non-metric
12. Define ANOVA
Analysis of variance is a collection of statistical models and their associated
estimation procedures used to analyze the differences among group means in a sample.
Page 24 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
ENVIRONMENT MANAGEMENT
A. Use products that reduce your reliance on natural resources (e.g. rainwater tanks, solar
hot water systems)
B. Use products that are made from recycled material (e.g. office supplies made from
recycled plastic, furniture made from recycled rubber)
C. Look at all your business activities to see if you can do anything differently (e.g. reducing
air travel by holding conference calls instead of interstate meetings).
Making your business environmentally friendly not only benefits the environment but can also
save you money.
The concept of green marketing has come into existence in response to the growing concern.
There is growing concern about the greenhouse gases in the environment due to the burning of
fossil fuels, about the depletion of ozone layer due to certain chemicals and global warming.
Environmentalists in India and abroad are voicing their concern and are campaigning against
pollution caused by industries.
Clean technologies are poised for dramatic growth in a manner that will offer significant and
tangible economic, environmental, and social benefits. Furthermore, it will be an added
advantage to show case to the world about the fact that we are responsible citizens of the world.
For the business enterprise, sustainable development means adopting business strategies and
activities that meet the needs of the enterprise and its stakeholders today while protecting,
sustaining and enhancing the human and natural resources that will be needed in the future. This
definition captures the spirit of the concept as originally proposed by the World Commission on
Environment and Development, and recognizes that economic development must meet the
needs of a business enterprise and its stakeholders. The latter include shareholders, lenders,
customers, employees, suppliers and communities who are affected by the organization‘s
activities. It also highlights business‘s dependence on human and natural resources, in addition
to physical and financial capital. It emphasizes that economic activity must not irreparably
degrade or destroy these natural and human resources.
Page 25 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Many organisations implement an EMS to meet the requirements of certification not necessarily
to become a better environmental corporate citizen. However, they soon discover that
implementing a robust EMS is beneficial and adds value to their business.
Eco- or environmentally friendly manufacturing protects the planet from exploitation and
conserves natural resources. Products are made from sustainable materials, while waste is
reduced through re-manufacturing, reuse and recycling. Besides being a friend of the earth,
being eco-friendly can reduce a business costs through reduced energy use, for example, or
lower transportation costs.
Business can be a significant driver of biodiversity conservation but it must have a seat at the
table and be allowed to have a constructive role in designing and implementing sustainable
policy solutions with governments. Potential ecosystem degradation and biodiversity loss are
material considerations for all investment decisions. Not because they make for good public
relations, but because companies and investors realized that these are fundamental for business
success in our carbon and natural resource constrained world.
Fair Trade movement seeks to promote greater equity in international trading partnerships
through dialogue, transparency, and respect. It promotes sustainable development by offering
better trading conditions to, and securing the rights of, marginalized producers and workers in
developing countries. Fair trade is grounded in three core beliefs; first, producers have the power
to express unity with consumers. Secondly, the world trade practices that currently exist promote
the unequal distribution of wealth between nations. Lastly, buying products from producers in
developing countries at a fair price is a more efficient way of promoting sustainable development
than traditional charity and aid.
Carbon credit came about in response to the Kyoto Protocol. Signed in Kyoto, Japan, by some
180 countries in December 1997, the Kyoto Protocol calls for 38 industrialized countries to
reduce their greenhouse gas emissions. Carbon is an element stored in fossil fuels such as coal
and oil. When these fuels are burned, carbon dioxide is released and acts as what we term a
"greenhouse gas".
The idea behind carbon trading is quite similar to the trading in a marketplace. Carbon would be
given an economic value, allowing people, companies or nations to trade it. If a nation bought
carbon, it would be buying the rights to burn it, and a nation selling carbon would be giving up its
rights to burn it. The value of the carbon would be based on the ability of the country owning the
carbon to store it or to prevent it from being released into the atmosphere. (The better you are at
storing it, the more you can charge for it.)
Page 26 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
The waste hierarchy, typically displayed as an inverted triangle, offers a hierarchical approach to
showing most preferred versus least preferred approaches to solid waste generation and
management. The actual categories may vary in specific name and number, depending upon the
particular group using this model, but the essential thought process is that the avoidance of
consumption and source reduction, along with reuse, are preferable to recycling.
11. What are the components of ISO 14000 Environment Management System?
• Environmental Policy
The environmental policy and the requirements to pursue this policy via objectives, targets, and
environmental programs.
• Planning
The analysis of the environmental aspects of the organization (including its processes, products
and services as well as the goods and services used by the organization).
Implementation and organization of processes to control and improve operational activities that
are critical from an environmental perspective (including both products and services of an
organization).
Checking and corrective action including the monitoring, measurement, and recording of the
characteristics and activities that can have a significant impact on the environment.
• Management Review
Review of the EMS by the organization's top management to ensure its continuing suitability,
adequacy and effectiveness.
• Continual improvement
The three pillars of sustainability are a powerful tool for defining the economic, social, and
environmental pillars. If anyone pillar is weak then the system as a whole is considered
unsustainable.
Page 27 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Our world's climate is changing, and with it comes changing weather patterns. Of particular
concern are changes that are subtle, on average, but more severe in the extremes. These are
the changes that have the greatest potential to produce natural catastrophes affecting
businesses, jobs and economies on a regional or global scale. Weather can have a positive or
negative impact on the flow of commerce, affecting a wide range of businesses. Heavy rain or
severe snowstorms can shut down transportation networks or flood buildings, and thus impact a
company's bottom line.
Extreme wet or dry conditions can affect buildings, machinery, data centers, transportation
networks, supply chains, people and sales. When businesses in the United States are
significantly affected by extreme precipitation and flooding, the ramifications can be felt
throughout the global supply chain.
Page 28 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 29 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
aount and, essentially, the benefits are not consumed within the same
accounting period. Example: Large Amount spent on advertisement.
10. What is the financial impact of buying a fixed asset?
Financial impact of buying a fixed asset- The purchase of fixed assets for cash
affects the balance sheet it will allows increase in the Asset values mainly fixed
asset along with decrease in the cash balances. If it is a credit purchase, then it will
increase the accounts payable or creditors along with increase in the Assets
amount.
11. Is there any difference between management accounting & financial accounting?
Following are main differences between Management accounting & Financial
Accounting:
ial accounting serves interest of external users whereas management
accounting serves the interest of internal users.
accounting is optional.
to provide financial information to
outsiders, meanwhile management accounting helps to assist the
management in planning and decision making process.
Financial accounting reports consist of financial statements like Income
statement and Position statement covers entire organization. Management
accounting reports are monthly, weekly or yearly which can cover entire as
Page 30 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 31 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
direct expenses related with production whereas Net Profit is the excess of
gross profit and indirect income over all indirect expenses.
whereas net profit shows the net earnings of the business over a period of
time.
shares rate is not fixed, which can vary depends upon the availability of
profit.
Page 32 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
equity capital.
Page 33 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
FINANCIAL MANAGEMENT
1. What is meant by Financial Planning?
Ans. Financial planning means deciding in advance, the financial activities to be carried
on to achieve the basic objective of the firm. The basic objective of the firm is to get
maximum profits out of minimum efforts.
Ans. The capital required for day to day operations of the business is called Working
capital.
5. State the difference between gross working capital and net working capital.
Gross working capital is the sum/ aggregate of the current assets, whereas Net working
capital = Current assets – current liabilities.
Financial leverage is considered favorable when return on investment is higher than the
cost of debt.
Capital structure is the relative proportion of different sources of long term finance. In
other words Capital structure of a company refers to the make up of its capitalization.
Page 34 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
The long term Investment decision is called capital budgeting. It is more important due to
the following reasons-
a)Long term growth and affects : As capital budgeting decisions involve investment in
long term fixed assets, it affects the long term growth.
b) Large amount of funds involved : As huge amount of fund is blocked for a long period,
the decision should be taken rationally.
c)Risk involved : As such a decision affects the returns of the firm as a whole, it involves
more risk.
d)Irreversible decisions : These long term decisions taken once cannot be reversed back,
without incurring heavy losses. It will lead to waste of fund, if reversed. Thus capital
budgeting decisions should be taken after careful study and deep analysis.
The risk-return tradeoff is the principle that potential return rises with an increase in risk.
Low levels of uncertainty or risk are associated with low potential returns, whereas high
levels of uncertainty or risk are associated with high potential returns.
Diversification is the process of allocating capital in a way that reduces the exposure to any
one particular asset or risk. Diversification is one of two general techniques for reducing
investment risk. The other is hedging.
The time value of money (TVM) is the idea that money available at the present time is worth
more than the same amount in the future due to its potential earning capacity.
Leverage is the use of various financial instruments or borrowed capital, such as margin, to
increase the potential return of an investment.
Payback Period, Discounted Payback Period, Net Present Value, Accounting Rate of Return,
Internal Rate of Return, Profitability Index.
Page 35 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Internal rate of return (IRR) is a metric used in capital budgeting measuring the profitability
of potential investments. Internal rate of return is a discount rate that makes the net present
value (NPV) of all cash flows from a particular project equal to zero.
Capital rationing is a process through which a limited capital budget is allocated between
different projects in a way that maximizes the shareholder's wealth.
Capital rationing is a method used to select a project mix in a situation when the total funds
available for investment are less than total net initial investment needed by all the projects
under consideration. It involves calculation of profitability indices for all projects and
selecting projects that lead to highest combined net present value.
Net present value (NPV) is the difference between the present value of cash inflows and the
present value of cash outflows over a period of time. NPV is used in capital budgeting to
analyze the profitability of a projected investment or project.
The optimal capital structure indicates the best debt-to-equity ratio for a firm that maximizes
its value. Putting it simple, the optimal capital structure for a company is the one which
proffers a balance between the idyllic debt-to-equity ranges thus minimizing the firm's cost of
capital.
Dividend decision refers to the policy that the management formulates in regard to earnings
for distribution as dividends among shareholders. Dividend decision determines the division
of earnings between payments to shareholders and retained earnings.
1) Regular dividend policy: in this type of dividend policy the investors get dividend at usual
rate. Here the investors are generally retired persons or weaker section of the society who
want to get regular income. This type of dividend payment can be maintained only if the
company has regular earning.
2) Stable dividend policy: here the payment of certain sum of money is regularly paid to the
shareholders. It is of three types:
Page 36 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
a) Constant dividend per share: here reserve fund is created to pay fixed amount of dividend
in the year when the earning of the company is not enough. It is suitable for the firms
having stable earning.
b) Constant pay out ratio: it means the payment of fixed percentage of earning as dividend
every year.
c) Stable rupee dividend + extra dividend: it means the payment of low dividend per share
constantly + extra dividend in the year when the company earns high profit.
3) Irregular dividend: as the name suggests here the company does not pay regular dividend
to the shareholders. The company uses this practice due to following reasons:
4) No dividend: the company may use this type of dividend policy due to requirement of
funds for the growth of the company or for the working capital requirement.
The primary purpose of the statement of cash flows is to provide information about cash
receipts, cash payments, and the net change in cash resulting from the operating, investing,
and financing activities of a company during the period. It is the financial statement that
presents the cash inflows and outflows of a business during a given period of time. It is
equally as important as the income statement and balance sheet for cash flow analysis.
25. What is the difference between Cash flow and Fund flow statement?
Cash Flow statement shows the changes in the cash position (Inflows and outflows) of a
firm. It is an analytical reconciliation statement which explains the reasons for the
differences between the opening and closing cash balances over a period. On the other
hand, Fund Flow statement is a statement that shows the ups and downs of the financial
position or the changes in working capital of the entity between the two financial years.
Page 37 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
MARKETING MANAGEMENT
1. List the various orientations in marketing.
Marketing orientation
Selling Orientation
Production Orientation
Product Orientation
2. Define Production orientation
An organization which focuses on production specializes in producing a maximum number of
units to avail the benefits of volumes of scale without considering the quality.
3. Define Product orientation:
An organization which focuses on product orientation is mainly concerned with the quality of the
products and focuses on developing new and improved features.
4. Define Selling orientation
An organization which uses sales orientation mainly focuses on the selling or promoting a
particular product, and not determining customer needs or caring about quality
5. What is segmented market?
Segmenting market is to divide the customers on the basis of certain criteria so that each
segment needs can be recognized and fulfilled properly. The advantage is that there is no need
of selling the product to all the segments of market. A particular segment can be targeted
according to their requirements.
6. What do you understand by ‘target market’?
A segment which gives maximum profitability is the target market. Products are launched in the
target segment with the needs of the customer‘s in mind.
7. What is the objective of market segmentation?
The main essence of segmentation analysis is:
a. To choose the most appropriate customer group whose needs match with that of
organization‘s marketing capability.
b. To maximize marketing efficiency and effectiveness by providing focus in marketing activities
and by developing customer relevant value offerings.
8. What are the major factors influencing consumer behaviour?
Demographic, Cultural, Social and Psychological factors
9. Mention the various steps of a new product development process.
Stage 1: Idea Generation
Page 38 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 39 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Basic product
Expected product
Augmented product &
Potential products
14. What is a product mix?
Product Mix (product assortment): is the set of all products and items that a particular seller
offers for sale.
15. What are the factors affecting price?
Company‘s costs
Competition
Customers
Market structure
Marketing environment
16. Briefly describe BCG Matrix
BCG matrix is a portfolio analysis tool that helps the company classifies their product line
based on ‗market share‘ & ‗growth‘ of the various brands in the product line. It helps the
company develop suitable & separate strategy for each of the product brand.
17. What is ‘value’ as in Marketing
‗Value‘ is an ability to satisfy a customer ‗need‘.
18. What is need & what are the different types of needs?
‗Needs‘ felt states of deprivation which may be physiological or psychological
The different needs are physiological/ physical, safety & security, love & belongingness, self-
esteem needs & self-actualization needs.
19. What does a marketing plan consist of?
A marketing plan consists of ‗marketing strategy‘ (which involves STP) and ‗marketing
program‘ (involving the 4Ps)
20. What are the commonly seen customer buying roles?
Initiator
Influencer
Decider
Buyer
User
21. What is ‘differentiation’ & ‘positioning’?
Page 40 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Differentiation is the act of making a marketer‘s product distinct from that of its direct
competitors.
The act of designing a company‘s offering & image to occupy a distinctive position in the
minds of the target customer/ differentiating your offer in the minds of the customer
22. What are the functions of a distribution channel?
Information function
Communication function
Financial function
Ownership function
Risk bearing
Storage function
Assortment building
Bulk breaking
23. What is retailing & wholesaling?
Retailing: All activities involved in selling G/S to final consumers for their personal non-
business use.
Wholesaling: Includes all activities primarily involved in selling G/S to those buying for resale
or business use
24. What are the various elements of a promotional mix?
Advertising
Sales promotion (consumer & Trade)
Direct Marketing
Interactive marketing (digital)
PR/ Publicity
WoM/ Viral
Personal selling
Events
25. What is communication?
Meaningful ‗exchange of information‘, to induce attitudinal change. Attitude consist cognition,
affection & conation (awareness, interest & desire, action).
26. What are PoPs & PoDs?
Page 41 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
PoPs are ‗points of parity‘ which are the common features that a product shares with its
competitors and ensures its category membership. PoDs are ‗points of difference‘ which are
features that make the product distinct from its competitors.
Page 42 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. HRM refers to acquisition, retention, motivation and maintenance of Human Resources in
an organization.
Ans. Strategic HRM is the process of defining how the organization‘s goals will be achieved
through people by means of HR strategies and integrated HR policies and practices.
Ans.
HRM: 'people are (treated as) a significant cost and should be managed accordingly
HCM: 'people are value adders, not overheads
Ans. Human resource planning is the process by which the management strives to have the right
number and the right kinds of people at the right places, at the right time, to do things which
result in both the organization and the individual receiving the maximum long-range benefit.
Page 43 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. A skills inventory is an assessment of the knowledge, skills, abilities, experience and career
aspirations of each of the current employees.
Ans. The procedure for determining the duties and skill requirements of a job and the kind of
person who should be hired for it. Job analysis produces information used for writing job
description (a list of what the job entails) and job specification (what kind of people to hire for
the job).
Ans. Job performance, Personal observation, Critical incidents, Interview, Panel of experts, Diary
method, Questionnaire method
Ans. Job Description: A written statement of what the job holder does, how it is done, under what
conditions it is done and why it is done.
Job Specification: Job specification summarises the human characteristics needed for
satisfactory job completion.
Ans. Recruitment: Recruitment is the process of locating and encouraging potential applicants to
apply for existing or anticipated job openings.
Selection: Selection is the process of picking individuals who have relevant qualifications to fill
jobs in an organisation.
External sources: Employees working in other organisations; job aspirants registered with
employment exchanges; students from reputed educational institutions; candidates referred by
unions, friends, relatives and existing employees; candidates forwarded by search firms and
contractors; candidates responding to ads; unsolicited applications
Page 44 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
14. What is a selection test? What are the types of Selection Tests?
Types of tests: Intelligence tests, Aptitude tests, Personality tests, Achievement test, Simulation
test, Assessment centre.
Ans: Interviewer tries to obtain and synthesize information about the abilities of the interviewee
and the requirements of the job.
Types:
Non-directive interview
Directive or structure interview
Situational interview
Behavioural interview
Stress interview
Panel interview
Page 45 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
deficit
Specific job related General knowledge
Immediate Long term
Ans. Any relatively permanent change in behaviour that occurs as a result of experience.
Page 46 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans.
1. Skills training
2. Refresher training
3. Cross-functional training
4. Team training
5. Creativity training
6. Diversity training
7. Literacy training
Ans.
Ans.
Page 47 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans.
Training evaluation: Any attempt to obtain information on the effects of training performance and
to assess the value of training in the light of that information.
Ans.
Page 48 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. Career: A career is a sequence of positions held by a person during the course of a lifetime.
Career planning: Process by which one selects career goals and the path to these goals.
Career development: Personal actions one undertakes to achieve a career plan.
Career management: Includes both organisational actions and individual efforts aimed at setting
career goals, formulating and implementing strategies and monitoring the results.
Ans. The process of ensuring a suitable supply of successors for current and future senior or key
jobs arising from business strategy, so that the careers of individuals can be planned and
managed to optimise the organisations‘ needs and the individuals‘ aspirations.
Ans. Performance management is a strategic and integrated process that delivers sustained
success to organisations by improving the performance of the people who work in them and by
developing the capabilities of individual contributors and team.
Ans. Performance appraisal is the systematic evaluation of the individual with regard to his or her
performance on the job and his potential for development.
Page 49 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
4. Appraise performance
5. Performance interview
6. Use appraisal data for appropriate purpose
Ans.
Ans. The employee gets useful feedback information about how effectively and efficiently he is
able to discharge the assigned duties.
Page 50 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 51 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
method
Ans. Wage: a fixed regular payment earned for work or services, typically paid on a daily or
weekly basis.
Salary: a fixed regular payment, typically paid on a monthly basis, made by an employer to an
employee, especially a professional or white-collar worker.
Ans.
External Internal
Demand and supply Ability to pay
Cost of living Job requirements
Trade union‘s bargaining Managerial strategy
power
Government legislation The employee (performance,
seniority, experience, potential,
luck)
Social factors
Economy
Technological development
Prevailing market rates
Page 52 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. Time wage system: Wages are paid according to the time spent by the workers irrespective
of his output of work done.
Piece wage system: Wages are based on output and not on time.
Ans. Minimum wage: the minimum amount of remuneration that an employer is required to
pay wage earners for the work performed during a given period, which cannot be reduced
by collective agreement or an individual contract.
Fair wage: Fair wage is the wage which is above the minimum wage but below the living wage.
The lower limit of the fair wage is obviously the minimum wage; the upper limit is set by the
capacity of the industry to pay.
Living wage: A living wage is one which should enable the earner to provide for himself and his
family not only the bare essentials of food, clothing and shelter but a measure of frugal comfort
including education for his children, protection against ill-health, requirement of essential social‘
needs and a measure of insurance against the more important misfortunes, including old-age.
Ans. Incentive refers to performance linked compensation paid to improve motivation and
productivity of employees.
Page 53 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. A method of remuneration under which an employer undertakes to pay his employees a
share in the net profits of an enterprise in addition to regular wages.
Ans. Fringe benefits are indirect compensation because they are usually extended as a condition
of employment and are not directly related to performance.
Types:
1. Payment for time not worked: Paid holidays, Shift premium, holiday pay, paid vacation.
2. Employee security: Retrenchment compensation and Lay off compensation
3. Safety and health
4. Workmen‘s compensation
54. What is Employee Welfare?
Ans. Employee welfare means anything done for the comfort and improvement, intellectual or
social, of the employees over and above the wages paid which is not a necessity of the industry.
Ans. Internal: Drinking water, Toilets, Crèches, Washing facility, Rest rooms, Uniform and
protective clothing, Recreation facility, Canteen, First aid.
External: Housing, Education facility, Maternity benefits, Transportation, Sports facility, Leave
travel, Vocational training, Holiday homes, Co-operative stores, Social insurance.
56. What are the Statutory Welfare measures given in Factories Act, 1948?
Ans.
1. Washing facilities to male and female workers separately.
2. Facilities for storing and drying clothes.
3. Facilities for occasional rest for workers who work in standing position for long hours.
Page 54 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
4. First aid boxes for every 150 workers and an ambulance facility for more than 500
workers.
5. Canteens, where there are more than 250 workers.
6. Shelters, rest-rooms and lunch rooms where over 150 workers are employed.
7. Creche, if 30 or more workers are employed.
8. Welfare officer, if 500 or more workers are employed
Ans. A cafeteria plan, also called a flexible benefit plan, allows employees to choose from a
menu of optional benefits the ones that best fit their individual needs. Thus, employees can
customize their benefit packages.
Ans. Quality of work life (QWL) refers to the favourableness or unfavourableness of a job
environment for the people working in an organisation.
Ans.
Page 55 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. The Industrial Relations or IR encompasses the relationship between the management
and workmen and the role of a regulatory body to resolve any industrial dispute.
63. What are the reasons for Poor Industrial Relations in India?
Ans. Unitary approach, Systems approach, Pluralistic approach, Marxist approach, Strategic
management approach, HRD approach
Ans. Industrial dispute means any dispute or difference between employers and employers or
between employers and workmen or between workmen and workmen, which is connected with
the employment or non-employment or the terms of employment or with the conditions of labour
of any person.
Page 56 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. Economic causes include: (i) Wages, (ii) Bonus, (iii) Dearness allowance, (iv) Conditions of
work and employment, (v) Working hours, (vi) Leave and holidays with pay, and (vii) Unjust
dismissals or retrenchments.
Non-economic causes include: (i) Recognition of trade unions, (ii) Victimisation of workers, (iii) Ill-
treatment by supervisory staff, (iv) Sympathetic strikes, (v) Political causes, etc.
Preventive measures: Grievance Settlement Authority, Welfare Officers, Standing orders, Profit
sharing, Collective bargaining, Recognition of an Union, Code of Discipline.
Page 57 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Stage 1: The aggrieved employee shall represent his grievance either in person or in writing to
the Welfare Officer or any other Officer in the Dept, which should be acknowledged. A written
reply should be sent to the worker
Stage 2: If the employee is not satisfied then he can submit his grievance to the HOD who has to
study the matter and reply to the employee.
Stage 3: If the employee is not satisfied, he may request the Manager/HoD to forward his
Grievance to the Grievance Committee. The recommendations of the Grievance Committee shall
be communicated to the concerned workmen.
Stage 4: If the employee is not satisfied with the reply given by the Grievance Committee, he can
represent the matter to the Corporate level.
74. What is discipline?
Ans. Discipline is a force that prompts an individual or a group to observe the rules, regulations
and procedures which are deemed to be necessary to the attainment of an objective.
75. What are the types of Discipline?
Negative discipline: (enforced, corrective, punitive or autocratic discipline): involves the use of
external force or the threat of its use to restrain employees from engaging in behaviours which
are contrary to rules and standards.
Ans. The departure from the prescribed disciplined behaviour. It is an act of engagement in
behaviours that have been specified as undesirable.
Page 58 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. Indiscipline: the departure from the prescribed disciplined behaviour. It is an act of
engagement in behaviours that have been specified as undesirable.
Ans.
Ans. Disciplinary actions means taking corrective actions including administration of punishment
for indisciplined behaviour so that the employee concerned does not repeat the same in future.
Social benefits are those benefits which are provided during and after retirement. These provide
social security to employee at the event of accident, sickness and child birth, and financial
security during the services and after retirement.
Ans.
Page 59 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans. Participative management is a system where workers and management share important
information with each other and participate in decision making
Ans.
1. Discussions : on specific problems
2. Group decision making: delegation of power to the group
3. Labour management co-operation: The representatives of the management and workers
discuss the issues involved and find suitable solutions (Collective bargaining).
4. Suggestion system: Workers submit their suggestions in writing to the management
which are scrutinised in their absence.
5. Employee representatives on Board of Directors
6. Profit sharing and share ownership.
Ans. HR Analytics is the application of mathematical, statistical and data mining techniques to
Human Resources and business data to explore concepts and ideas and solve or respond to HR
related business problems.
Ans. Human Resource metrics are measurements that help to track key areas in HR data. Some
metrics are as follows:
Page 60 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
1. Resignation rate: How many employees resigned in a given period, as a percentage of the
overall workforce?
2. Time to recruit: How long did a vacancy stand empty before a new hire accepted an offer
of employment?
3. First-year staff turnover rate: How many new hires left in year one, as a percentage of the
number of new hires that year?
Page 61 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
OPERATIONS MANAGEMENT
1. What is Operations Management?
2. Differentiate between a product and a service
3. Name the different types of Productive systems
4. What is a Product layout and a Process Layout?
5. What is Time study?
6. What is Method Study?
7. What is Value Analysis? What is the difference between Value Analysis and Value
Engineering?
8. What do you mean by Hazard? What are the different types of Industrial Hazards?
9. What do the 3 sides of a fire triangle represent?
10. What are the different types of Maintenance
11. What is the difference between ISI and ISO
12. What is the full form of ISO?
13. What are control charts? Why do firm make control charts
14. When do you say that a process is in control and when not in control from Quality
management perspective?
15. What are the factors to be considered while making a factory location decision?
Answers
1. Operations management is defined as the design, operations and improvement of the
transformation process, which converts the various inputs to the desired outputs of
products and services.
2. Difference between an manufactured product and a service
Product Service
Tangible Intangible
Longer life Perishable
Inventoriable Availability ensure by keeping the system
open for service
Minimum or no contact with customer High contact
Large units can take advantage of Not possible
economies of Scale
Demand can be shifted from one Demand cannot be shifted
Page 62 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
c. Under Intermittent
i. Job productive system
ii. Batch productive system
4. Product and process layout – Layout is how machines are arranged
a. Product layout –All the machines required for manufacture of that particular
product is only is made available and arranged (layout) in the sequence of its
requirement in the manufacturing process. Also called line layout
b. Process layout – All the machines doing a specific type of work (functions) are
grouped together in one place. Also called the functional layout.
5. Time study – A study to establish the time for a qualified worker to carry out a specified
job at a desired level of performance. In other word a study to determine how long it
would take to perform a particular job
6. Method study - Is the systematic recording and critical examination of existing and
proposed ways of doing work as to develop / apply easier/ more effective methods and to
reduce costs.
7. Value Analysis - Value Analysis is an organized procedure for efficient identification of
and elimination of unnecessary costs. Developed by Lawrence D Miles in 1947. Value
analysis is done for an existing job while Value engineering is done during the design of a
new job.
Page 63 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
8. Hazard – Is a situation that poses a level of threat to life, Property or environment. Types
of Hazards are – Physical, Chemical, biological, Electrical, Fire, mechanical hazard etc.
9. The three sides of a fire triangle represent the three ingredients essential for a fire
incident to happen. They are a fuel, air (O2) and Heat (Temperature).
10. Different types of Maintenances are –
a. Break down maintenance
b. Preventive Maintenance
c. Predictive Maintenance
d. Advanced Maintenance types like- Reliability centered Maintenance, Total
Productive maintenance, Design out maintenance etc.
11. ISI – is a Product certificate while ISO is a system certificate
ISI ISO
Is a Product certificate ( Given to one Is a System certificate. Is a certificate of
product of an organization) quality given to the Organization system
that produces the products
Bureau of Indian Standard is the authority Certified by ISO and international
for issuing the certificate. Issued after organization on recommendation by
inspection by BIS officials. authorized third certifying agencies.
Certificate valid till for the valid shelf life of Certificate valid only for 3 years
the product.
12. Full form of ISO – ISO does not have a full form – It is a Greek word meaning equal and
is adopted by the international Organization for standardization, a Geneva based non-
governmental and non-profitable organization to represent itself and the standards
developed by them.
13. Control charts are pictorial representations of the variations in value of sample data from
a process. It is used in quality management to evaluate whether the process is in control
or out of control.
14. A process is said to be in control when the variations in the parameters of the sample
data from the process is due to non-assignable causes, i.e. they are purely random. It is
out of control if the variations can be attributed to assignable causes
15. Factors to be considered for location decision of a production facility are
a. Proximity to raw materials
Page 64 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
b. Proximity to markets
c. Availability of Skilled labour
d. Availability of Good transportation facility and Infrastructure
e. Favourable Government Policies
f. Availability of cheap land
g. Availability of power
h. Low construction cost.
Page 65 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
OPERATIONS RESEARCH
Page 66 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 67 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans: A data warehouse is a particular type of database, which focus on a very specific
application: storing, filtering, retrieving and analyzing huge volumes of information. It is a
central repository of data & is mostly used to facilitate reporting and analysis. Used for Online
Analytical Processing (OLAP)
Databases are usually structured. It is an organized collection of data. DBMS is designed to
allow the definition, creation, querying, update, and administration of database. Used for
Online Transactional Processing (OLTP)
6. What is BPR?
Ans: BPR is the Fundamental rethinking and Radical redesign of Business Processes to
achieve Dramatic improvements in critical measures of performance such as Cost, Quality,
Service and Speed.
8. What is encryption?
Page 68 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Ans: Encryption is the process of encoding a message or information in such a way that only
authorized parties can access it. In an encryption scheme, the intended information or
message, referred to as plaintext, is encrypted using an encryption algorithm – a cipher–
generating cipher text that can be read only if decrypted
Symmetric encryption uses the same key for enciphering and deciphering the message to be
transmitted . Asymmetric encryption has 2 pairs of keys
Ans: Data is unprocessed facts and figures without any added interpretation or analysis.
Information is data that has been interpreted so that it has meaning for the user
Knowledge is a combination of information, experience and insight that may benefit the
individual or the organization
Page 69 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
ORGANIZATIONAL BEHAVIOUR
1. What is Perception?
Perception is a process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment. Act of seeing what is there to be seen.
Depends on the individual, object and the situation.
2. Explain Maslows Hierarchy of Needs?
Needs were categorized as five levels of lower- to higher-order needs. Individuals must
satisfy lower-order needs before they can satisfy higher order needs. Satisfied needs will no
longer motivate. Motivating a person depends on knowing at what level that person is on the
hierarchy. Lower-order (external): physiological, safety
Higher-order (internal): social, esteem, self-actualization
3. What is personality?
Sum total of ways in which an individual reacts and interacts with others. Unique
combination of an individual‘s characteristics that remain stable over time, influences a
person‘s behavior and determines individual styles. Personality determinants are heredity,
environment, social, and situational factors.
4. What is Attitude?
Evaluative statements – either favorable or unfavorable about objects, people or events.
Reflects how an individual feels about things.
5. What do you mean by Big five model?
Many contemporary personality psychologists believe that there are five basic dimensions of
personality, often referred to as the "Big 5" personality traits. The five broad personality traits
described by the theory are extraversion, agreeableness, openness, conscientiousness, and
neuroticism.
6. Explain the Need hierarchy theory
Maslow's hierarchy of needs is a motivational theory in psychology comprising a five-tier
model of human needs, often depicted as hierarchical levels within a pyramid. Physiological
needs, Safety needs, Love and belongingness needs, Esteem needs, Self-actualization
needs
Page 70 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
that leaders develop an exchange with each of their subordinates, and that the quality of
these leader–member exchange relationships influences subordinates' responsibility,
decisions, and access to resources and performance. Relationships are based on trust and
respect and are often emotional relationships that extend beyond the scope of employment.
Leader–member exchange may promote positive employment experiences and augment
organizational effectiveness. It is widely used by many managers and is replacing many of its
predecessors.
8. What is FIRO B Technique? Why is it used?
Fundamental Interpersonal Relations Orientation (FIRO) is a theory of interpersonal relations,
introduced by William Schutz in 1958. This theory mainly explains the interpersonal
interactions of a local group of people. The theory is based on the belief that when people get
together in a group, there are three main interpersonal needs they are looking to obtain –
affection/openness, control and inclusion. Schutz developed a measuring instrument that
contains six scales of nine-item questions, and this became version B (for "Behavior"). This
technique was created to measure how group members feel when it comes to inclusion,
control, and affection/openness or to be able to get feedback from people in a group.
9. What is Johari window?
The Johari window is a technique that helps people better understand
their relationship with themselves and others. It was created by
psychologists Joseph Luft (1916–2014) and Harrington Ingham
(1916–1995) in 1955, and is used primarily in self-help groups and
corporate settings as a heuristic exercise. Luft and Ingham called
their Johari Window model 'Johari' after combining their first names, Joe and Harrington.
10. Explain the concept of Transactional Analysis
Transactional analysis (TA) is a psychoanalytic theory and method of therapy wherein social
transactions are analyzed to determine the ego state of the patient (whether parent-like,
child-like, or adult-like) as a basis for understanding behavior.In transactional analysis, the
patient is taught to alter the ego state as a way to solve emotional problems. The method
deviates from Freudian psychoanalysis which focuses on increasing awareness of the
contents of unconsciously held ideas. Eric Berne developed the concept and paradigm of
transactional analysis in the late 1950s.
11. What do you mean by Halo effect?
The halo effect, at the most specific level, refers to the habitual tendency of people to rate
attractive individuals more favorably for their personality traits or characteristics than those
Page 71 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
who are less attractive. Halo effect is also used in a more general sense to describe the
global impact of likable personality, or some specific desirable trait, in creating biased
judgments of the target person on any dimension. Thus, feelings generally overcome
cognitions when we appraise others."
12. Explain the steps in group formation
Groups are a common arrangement in today's business environments. Any manager who
works with or supervises groups should be familiar with how they develop over time. Perhaps
the best-known scheme for a group development was advanced by Bruce Tuckman in 1965.
Initially, Tuckman identified four stages of group development, which included the stages of
forming, storming, norming and performing. A fifth stage was later added by Tuckman about
ten years later, which is called adjourning. It is believed that these stages are universal to all
teams despite the group's members, purpose, goal, culture, location, demographics and so
on.
13. What is kinesics?
Kinesics is the interpretation of body motion communication such as facial expressions and
gestures, nonverbal behavior related to movement of any part of the body or the body as a
whole.
14. What do you mean by emotional intelligence?
Emotional intelligence is the ability to identify and manage your own emotions and the
emotions of others. It is generally said to include three skills: emotional awareness; the ability
to harness emotions and apply them to tasks like thinking and problem solving; and the ability
to manage emotions, which includes regulating your own emotions and cheering up or
calming down other people.
15. Explain the classical conditioning and operant conditioning
Classical Conditioning
First described by Ivan Pavlov, a Russian physiologist
Involves placing a neutral signal before a reflex
Focuses on involuntary, automatic behaviors
Operant Conditioning
First described by B. F. Skinner, an American psychologist
Involves applying reinforcement or punishment after a behavior
Focuses on strengthening or weakening voluntary behaviors
Page 72 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 73 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 74 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
4. Ecological appraisal.
11. What are the different means available for financing a project?
1. Share Capital
2. Term loans
3. Debentures
4. Deferred capital
5. Incentives and miscellaneous sources like Government incentives, promotional
Capital.
12. What is cost of capital, Cost of equity, and Cost of debt?
Cost of Capital – Cost of money used by the company to finance a project
Cost of Equity – Is the rate of return expected by the equity shareholders of the
company?
Cost of debt – Is the average interest rate payable for the money borrowed by the
company (debt payable by the company)
13. Define Risk
Risk is the negative consequence of an uncertain event. It is the adverse effect of
uncertainty on the expected outcome of an event.
14. What are the different approaches to managing risks?
1. Ignore the risk
2. Mitigate the risk
3. Remove the risk
4. Transfer the risk – means take insurance.
15. What are the different types of risks in a project
1. Project specific risks
2. Competitive risks
3. Industry specific risks
4. Market risks.
5. International risks
16. What are the different measures used in assessing the risks?
1. Range
2. Standard deviation
Page 75 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
3. Coefficient of variance
4. Semi variance
17. What is Systematic or Market risks
Is a risk that affects all projects alike and not limited to any specific project industry?
18. What is SCBA?
Is the short form of Social cost benefit analysis? It is a methodology developed for
evaluation of investment projects from the point of view of society or economy as a
whole.
19. Why is SCBA better method for evaluation of project?
Commercial evaluation of projects has the following discrepancies that affect the
accuracy of the project evaluation. The imperfections are
1. Market imperfections
2. Externalities
3. Taxes and subsidies
4. Concern for savings
5. Concern for re distribution
6. Merit wants
20. What is EIA? What are the steps in EIA
EIA is Environmental Impact Assessment. The steps in doing an EIA are
1. Screening
2. Scooping
3. Impact Identification
4. Impact prediction
5. Mitigation and enhancement
6. Reporting
21. What the five stages through which groups move while developing itself to successful
teams.
1. Forming
2. Storming
3. Norming
4. Performing
5. Adjourning
22. What is PERT and CPM?
Page 76 of 77
SCMS SCHOOL OF TECHNOLOGY AND MANAGEMENT
SCMS Campus, Prathap Nagar, Muttom, Aluva, COCHIN- 683 106. KERALA
Page 77 of 77