1 what is managetment by exception

Management by exception is the practice of examining the financial and operational results of a business, and only bringing issues to the attention of management if results represent substantial differences from the budgeted or expected amount. For example, the company controller may be required to notify management of those expenses that are the greater of $10,000 or 20% higher than expected. The purpose of the management by exception concept is to only bother management with the most important variances from the planned direction or results of the business. Managers will presumably spend more time attending to and correcting these larger variances. The concept can be fine-tuned, so that smaller variances are brought to the attention of lower-level managers, while a massive variance is reported straight to senior management. 2 what is grapevine

A grapevine communication is a form of informal communication by which people communicates each other without any formal line of communication.Its called Grapevine because like that of a grape vine its impossible to find the origin of information which results in spread of rumours.

3 Organizational behavior

"Organizational behaviour is a field of study that investigates the impact that individuals, groups and structure have on behaviour within organization for the purpose of applying such knowledge toward improving an organization's effectiveness."

4 what is meant by delegation of authority

Authority is the key to managerial job. It denotes the right to make decision and command subordinates to conform these decisions. When the office manager is over burdened with official assignments, he may allocate or divide it among the subordinates to get the work done by them. The process of allocation of office work among the subordinates is called delegation of authority. So delegation of authority means giving the subordinate authority to do something which the executives do not have time to do. The process of delegation gives a gain to the subordinates because they become closer with the supervisor. 5 wat are the various management levels?
1. Top Level of Management

It consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions. The role of the top management can be summarized as follows a. b. c. d. e. f. g. h. Top management lays down the objectives and broad policies of the enterprise. It issues necessary instructions for preparation of department budgets, procedures, schedules etc. It prepares strategic plans & policies for the enterprise. It appoints the executive for middle level i.e. departmental managers. It controls & coordinates the activities of all the departments. It is also responsible for maintaining a contact with the outside world. It provides guidance and direction. The top management is also responsible towards the shareholders for the performance of the enterprise.

2. Middle Level of Management

The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions. In small organization, there is only one layer of middle level of management but in big enterprises, there may be senior and junior middle level management. Their role can be emphasized as a. b. c. d. e. f. g. h. They execute the plans of the organization in accordance with the policies and directives of the top management. They make plans for the sub-units of the organization. They participate in employment & training of lower level management. They interpret and explain policies from top level management to lower level. They are responsible for coordinating the activities within the division or department. It also sends important reports and other important data to top level management. They evaluate performance of junior managers. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management

Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc. According to R.C. Davis, Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of operative employees. In other words, they are concerned with direction and controlling function of management. Their activities include a. b. c. d. e. f. g. h. i. j. k. l. Assigning of jobs and tasks to various workers. They guide and instruct workers for day to day activities. They are responsible for the quality as well as quantity of production. They are also entrusted with the responsibility of maintaining good relation in the organization. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives to the workers. They help to solve the grievances of the workers. They supervise & guide the sub-ordinates. They are responsible for providing training to the workers. They arrange necessary materials, machines, tools etc for getting the things done. They prepare periodical reports about the performance of the workers. They ensure discipline in the enterprise. They motivate workers.

6 major functions of management

1. Planning
It is the basic function of management. It deals with chalking out a future course of action & deciding in advance the most appropriate course of actions for achievement of pre-determined goals. According to KOONTZ, Planning is deciding in advance - what to do, when to do & how to do. It bridges the gap from where we are & where we want to be. A plan is a future course of actions. It is an exercise in problem

solving & decision making. Planning is determination of courses of action to achieve desired goals. Thus, planning is a systematic thinking about ways & means for accomplishment of pre-determined goals. Planning is necessary to ensure proper utilization of human & non-human resources. It is all pervasive, it is an intellectual activity and it also helps in avoiding confusion, uncertainties, risks, wastages etc.

2. Organizing
It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnels. To organize a business involves determining & providing human and non -human resources to the organizational structure. Organizing as a process involves:

Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships. 3. Staffing
It is the function of manning the organization structure and keeping it manned. Staffing has assumed greater importance in the recent years due to advancement of technology, increase in size of business, complexity of human behavior etc. The main purpose o staffing is to put right man on right job i.e. square pegs in square holes and round pegs in round holes. According to Kootz & ODonell, Managerial function of staffing involves manning the organization structure through proper and effective selection, appraisal & development of personnel to fill the roles designed un the structure. Staffing involves:

Manpower Planning (estimating man power in terms of searching, choose the person and giving
the right place).

Recruitment, selection & placement. Training & development. Remuneration. Performance appraisal. Promotions & transfer. 4. Directing
It is that part of managerial function which actuates the organizational methods to work efficiently for achievement of organizational purposes. It is considered life-spark of the enterprise which sets it in motion the action of people because planning, organizing and staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect of management which deals directly with influencing, guiding, supervising, motivating sub-ordinate for the achievement of organizational goals. Direction has following elements:

Supervision Motivation Leadership Communication

Supervision- implies overseeing the work of subordinates by their superiors. It is the act of watching & directing work & workers. Motivation- means inspiring, stimulating or encouraging the sub-ordinates with zeal to work. Positive, negative, monetary, non-monetary incentives may be used for this purpose. Leadership- may be defined as a process by which manager guides and influences the work of subordinates in desired direction.

Communications- is the process of passing information, experience, opinion etc from one person to another. It is a bridge of understanding.

5. Controlling
It implies measurement of accomplishment against the standards and correction of deviation if any to ensure achievement of organizational goals. The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals a nd acting if necessary, to correct any deviation. According to Koontz & ODonell Controlling is the measurement & correction of performance activities of subordinates in order to make sure that the enterprise objectives and plans desired to obtain them a s being accomplished. Therefore controlling has following steps: a. b. c. d. Establishment of standard performance. Measurement of actual performance. Comparison of actual performance with the standards and finding out deviation if any. Corrective action.

7 what do u mean by coordination Coordination is the ability to repeatedly execute a sequence of movements smoothly and accurately. This may involve the senses, muscular contractions and joint movements. Everything that we participate in requires the ability to coordinate our limbs to achieve a successful outcome - from walking to the more complex movements of athletic events like the pole vault. 8 what do you mean organizing
n organizing is a social unit or human grouping, deliberately structured for the purpose of attaining specific goals. Thus, corporations, armies, schools, hospitals, churches, prisons etc. all are organizations. But tribes, ethnic and friendship groups and families are not organizations because they do not involve any significant amount of conscious planning pr deliberate structuring. The benefits of organization may be listed as follows: 1) 2) 3) 4) 5) A sound organization facilitates administration. Organization facilitates diversification and expansion of company. Adequate organization structure helps to accommodate technological improvement. Organization structure helps intensive use of human capital. Sound organization stimulates independent creative thinking initiatives.

9 planning

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. It is

rightly said Well plan is half done. Therefore planning takes into consideration available & prospective human and physical resources of the organization so as to get effective coordination, contribution & perfect adjustment. It is the basic management function which includes formulation of one or more detailed plans to achieve optimum balance of needs or demands with the available resources. According to Urwick, Planning is a mental predisposition to do things in orderly way, to think before acting and to act in the light of facts rather than guesses. Planning is deciding best alternative among others to perform different managerial functions in order to achieve predetermined goals.

Steps in Planning Function Planning function of management involves following steps:Establishment of objectives Planning requires a systematic approach. Planning starts with the setting of goals and objectives to be achieved. Objectives provide a rationale for undertaking various activities as well as indicate direction of efforts. Moreover objectives focus the attention of managers on the end results to be achieved. As a matter of fact, objectives provide nucleus to the planning process. Therefore, objectives should be stated in a clear, precise and unambiguous language. Otherwise the activities undertaken are bound to be ineffective. As far as possible, objectives should be stated in quantitative terms. For example, Number of men working, wages given, units produced, etc. But such an objective cannot be stated in quantitative terms like performance of quality control manager, effectiveness of personnel manager. Such goals should be specified in qualitative terms. Hence objectives should be practical, acceptable, workable and achievable. Establishment of Planning Premises Planning premises are the assumptions about the lively shape of events in future. They serve as a basis of planning. Establishment of planning premises is concerned with determining where one tends to deviate from the actual plans and causes of such deviations. It is to find out what obstacles are there in the way of business during the course of operations. Establishment of planning premises is concerned to take such steps that avoids these obstacles

to a great extent. Planning premises may be internal or external. Internal includes capital investment policy, management labour relations, philosophy of management, etc. Whereas external includes socio- economic, political and economical changes. Internal premises are controllable whereas external are non- controllable. Choice of alternative course of action When forecast are available and premises are established, a number of alternative course of actions have to be considered. For this purpose, each and every alternative will be evaluated by weighing its pros and cons in the light of resources available and requirements of the organization. The merits, demerits as well as the consequences of each alternative must be examined before the choice is being made. After objective and scientific evaluation, the best alternative is chosen. The planners should take help of various quantitative techniques to judge the stability of an alternative. Formulation of derivative plans Derivative plans are the sub plans or secondary plans which help in the achievement of main plan. Secondary plans will flow from the basic plan. These are meant to support and expediate the achievement of basic plans. These detail plans include policies, procedures, rules, programmes, budgets, schedules, etc. For example, if profit maximization is the main aim of the enterprise, derivative plans will include sales maximization, production maximization, and cost minimization. Derivative plans indicate time schedule and sequence of accomplishing various tasks. Securing Co-operation After the plans have been determined, it is necessary rather advisable to take subordinates or those who have to implement these plans into confidence. The purposes behind taking them into confidence are :Subordinates may feel motivated since they are involved in decision making process. The organization may be able to get valuable suggestions and improvement in formulation as well as implementation of plans. Also the employees will be more interested in the execution of these plans. Follow up/Appraisal of plans After choosing a particular course of action, it is put into action. After the selected plan is implemented, it is important to appraise its effectiveness. This is done on the basis of feedback or information received from departments or persons concerned.

This enables the management to correct deviations or modify the plan. This step establishes a link between planning and controlling function. The follow up must go side by side the implementation of plans so that in the light of observations made, future plans can be made more realistic.

Paper2

1 what is financial analysis

The process of evaluating businesses, projects, budgets and other finance-related entities to determine their suitability for investment. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to be invested in. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. In addition, one key area of financial analysis involves extrapolating the company's past performance into an estimate of the company's future performance. 2 what are financial statement

Financial statements are records that provide an indication of an individuals, organizations, or business financial status. There are four basic types: balance sheets, income statements, cash-flow statements, and statements of retained earnings. Typically, they are used in relation to business endeavors. Balance sheets are used to provide insight into a companys assets and debts at a particular point in time. Information about the companys shareholder equity is included as well. Typically, a company lists its assets on the left side of the balance sheet and its debts and liabilities on the right. Sometimes, however, this statement has assets listed at the top, debts in the middle, and shareholders equity at the bottom. Income statements present information concerning the revenue earned by a company in a specified time period. Income statements also show the companys expenses in attaining the income and shareholder earnings per share. At the bottom of the income statement, a total of the amount earned or lost is included. Often, income statements provide a record of revenue over a years time. Cash-flow statements provide a look at the movement of cash in and out of a company. Thesefinancial statements include information from operating, investing, and financing activities. The statement can be important in determining whether or not a company has enough cash to pay its bills, handle expenses, and acquire assets. At the bottom of a cash-flow statement, the net cash increase or decrease can be found.

3 composite cost of capital

Weighted average of the component costs of common stock (ordinary shares), preferred stock (preference shares), and debt. Each component of capital is given a relative importance (weight) on the basis of its associated interest rate, management's loss of control, risk exposure, etc., to compute weighted average cost of capital. It shows the cost of each additional dollar of capital, as opposed to the average cost of the total capital raised. Read more: http://www.businessdictionary.com/definition/composite-cost-of-capital.html#ixzz2R7tEFtdU

inventory turn over ratio

A ratio showing how many times a company's inventory is sold and replaced over a period. The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand or "inventory turnover days."

5 factors which influence the dividend decision

Meaning: Dividend is that part of the profits of a company which is distributed amongst its shareholders. Definition: According to ICAI, "Dividend is a distribution to shareholders out of profits or reserves available for this purpose."

Nature of Dividend Decision The dividend decision of the firm is crucial for the finance manager because it determines: 1. the amount of profit to be distributed among the shareholders, and 2. the amount of profit to be retained in the firm. There is a reciprocal relationship between cash dividends and retained earnings. While taking the dividend decision the management take into account the effect of the decision on the maximization of shareholders' wealth. Maximizing the market value of shares is the objective. Dividend pay out or retention is guided by this objective.

Dividend Policy Factors Affecting Dividend Policy: 1. External Factors

2. Internal Factors

External Factors Affecting Dividend Policy 1. General State of Economy:

In case of uncertain economic and business conditions, the management may like to retain whole or large part of earnings to build up reserves to absorb future shocks. In the period of depression the management may also retain a large part of its earnings to preserve the firm's liquidity position. In periods of prosperity the management may not be liberal in dividend payments because of availability of larger profitable investment opportunities. In periods of inflation, the management may retain large portion of earnings to finance replacement of obsolete machines. 2. State of Capital Market:

Favourable Market: liberal dividend policy. Unfavourable market: Conservative dividend policy. 3. Legal Restrictions: Companies Act has laid down various restrictions regarding the declaration of dividend:

o o

Dividends can only be paid out of: ** Current or past profits of the company. Money provided by the State/ Central Government in pursuance of the guarantee given by the Government. Payment of dividend out of capital is illegal. A company cannot declare dividends unless: ** It has provided for present as well as all arrears of depreciation. Certain percentage of net profits has been transferred to the reserve of the company. Past accumulated profits can be used for declaration of dividends only as per the rules framed by the Central Government 4. Contractual Restrictions: Lenders sometimes may put restrictions on the dividend payments to protect their interests (especially when the firm is experiencing liquidity problems) Example: A loan agreement that the firm shall not declare any dividend so long as the liquidity ratio is less than 1:1. The firm will not pay dividend more than 20% so long as it does not clear the loan.

Internal Factors affecting dividend decisions 1. Desire of the Shareholders: Though the directors decide the rate of dividend, it is always at the interest of the shareholders. Shareholders expect two types of returns:

[i] Capital Gains: i.e., an increase in the market value of shares. [ii] Dividends: regular return on their investment. Cautious investors look for dividends because, [i] It reduces uncertainty (capital gains are uncertain). [ii] Indication of financial strength of the company. [iii] Need for income: Some invest in shares so as to get regular income to meet their living expenses. 2. Financial Needs of the Company: If the company has profitable projects and it is costly to raise funds, it may decide to retain the earnings. 3. Nature of earnings: A company which has stable earnings can afford to have an higher divided payout ratio 4. Desire to retain the control of management: Additional public issue of share will dilute the control of management. 5. Liquidity position: Payment of dividend results in cash outflow. A company may have adequate earning but it may not have sufficient funds to pay dividends

Stability of Dividends The term stability of dividends means consistency in the payment of dividends. It refers to regular payment of a certain minimum amount as dividend year after year. Even if the company's earnings fluctuate from year to year, its dividend should not. This is because the shareholders generally value stable dividends more than fluctuating ones. Stable dividend can be in the form of: 1. Constant dividend per share 2. Constant percentage 3. Stable rupee dividend plus extra dividend

Significance of Stability of Dividend 1. Desire for current income 2. Sign of financial stability of the company 3. Requirement of institutional investors 4. Investors confidence in the company

Danger of Stable Dividend Policy Stable dividend policy may sometimes prove dangerous. Once a stable dividend policy is adopted by a company, any adverse change in it may result in serious damage regarding the financial standing of the company in the mind of the investors.

Forms of Dividend 1. Cash Dividend: The normal practice is to pay dividends in cash.

The payment of dividends in cash results in cash outflow from the firm. Therefore the firm should have adequate cash resources at its disposal before declaring cash dividend. 2. Stock Dividend: The company issues additional shares to the existing shareholders in proportion to their holdings of equity share capital of the company. Stock dividend is popularly termed as 'issue of bonus shares.' This is next to cash dividend in respect of its popularity. 3. Bond Dividend: In case the company does not have sufficient funds to pay dividends in cash it may issue bonds for the amount due to shareholders. The main purpose of bond dividend is postponement of payment of immediate dividend in cash. The bond holders get regular interest on their bonds besides payment of the bond money on the due date. [Bond dividend is not popular in India] 4. Property Dividend: This is a case when the company pays dividend in the form of assets other than cash. This may be in the form of certain assets which are not required by the company or in the form of company's products. [This type of dividend is not popular in India]

Bonus Shares When the additional shares are allotted to the existing shareholders without receiving any additional payment from them, is known as issue of bonus shares. Bonus shares are allotted by capitalizing the reserves and surplus. Issue of bonus shares results in the conversion of the company's profits into share capital. Therefore it is termed as capitalization of company's profits. Since such shares are issued to the equity shareholders in proportion to their holdings of equity share capital of the company, a shareholder continues to retain his/ her proportionate ownership of the company. Issue of bonus shares does not affect the total capital structure of the company. It is simply a capitalization of that portion of shareholders' equity which is represented by reserves and surpluses. It also does not affect the total earnings of the shareholders 6 Definition

of 'Modigliani-Miller Theorem - M&M'

A financial theory stating that the market value of a firm is determined by its earning power and the risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute dividends. Remember, a firm can choose between three methods of financing: issuing shares, borrowing or spending profits (as opposed to dispersing them to shareholders in dividends). The theorem gets much more complicated, but the basic idea is that, under certain assumptions, it makes no difference whether a firm finances itself with debt or equity.

8 A-b-c analysis

The ABC classification process is an analysis of a range of objects, such as finished products ,items lying in inventory or customers into three categories. It's a system of categorization, with similarities to Pareto analysis, and the method usually categorizes inventory into three classes with each class having a different management control associated :
A - outstandingly important; B - of average importance; C - relatively unimportant as a basis for a control scheme. Each category can and sometimes should be handled in a different way, with more attention being devoted to category A, less to B, and still less to C. Popularly known as the "80/20" rule ABC concept is applied to inventory management as a rule-of-thumb. It says that about 80% of the Rupee value, consumption wise, of an inventory remains in about 20% of the items. This rule , in general , applies well and is frequently used by inventory managers to put their efforts where greatest benefits , in terms of cost reduction as well as maintaining a smooth availability of stock, are attained. The ABC concept is derived from the Pareto's 80/20 rule curve. It is also known as the 80-20 concept. Here, Rupee / Dollar value of each individual inventory item is calculated on annual consumption basis. Thus, applied in the context of inventory, it's a determination of the relative ratios between the number of items and the currency value of the items purchased / consumed on a repetitive basis :

Paper 3

1 define economic planning economic planning, control and direction of economic activity by a central public authority. In its modern usage, economic planning tends to be pitted against the laissez-faire philosophy which developed in the 18th cent. Proponents of laissez faire believed that an economy works best when there is little government interference. The contemporary economic model of rational expectations offers perhaps the strongest critique of economic planning in its assertion that economic forecasting, both by individuals and competing businesses, is generally rational. In this model, government control of economic policy can only lead to complication, since any change instituted by central authorities has already been anticipated by the market. The level and type of central planning in any economy is generally connected to the sort of political regime that dominates. In recent years, heavily structured economic programs have been associated in particular with socialism, communism, and fascism. Economic planning also became an important part of public policy in nations that did not adopt those doctrines, even in Western capitalist societies where the notion of a free market is a fundamental tenet. Central planning under the Western capitalist governments came into particular importance to combat the economic hardships that existed in many nations between World War I and World War II. In most societies, the occurrence of war tends to subordinate all private activity to a unified national effort and thus increases national economic planning. Central planning increases in importance during a recession, or any serious economic decline. Planning can involve the use of direct controlssuch as rationing and price, rent, and wage limits or indirect controls, such as monetary and fiscal policy. Since the 1930s the U.S. government has used a variety of direct and indirect controls. The limited economic success and ultimate collapse of Communism in Eastern Europe has opened up intense debate about the perils of total central planning.

2 planning commission It was set up by the Union government to promote a rapid rise in the standard of living of the Indian people by efficient exploitation of national resources, increasing production and offering opportunities to all for employment in the service of the community. The Planning Commission is charged with the responsibility of making assessment of all resources in the country, augmenting deficient resources, formulating plans for the most effective and balanced utilisation of resources and determining priorities. The prime minister is the chairman of the Planning Commission, but the Commission is actually run by the deputy chairman (who enjoys the rank of Cabinet minister or minister of state, depending on his years in public life; for instance, K C Pant, deputy chairman during the NDA government, had the rank of Cabinet minister; Dr Montek Singh Ahluwalia too enjoys the status of a Cabinet minister), and members of the Commission. 3

Definition of 'Gross Domestic Product - GDP'

The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. GDP = C + G + I + NX

where: "C" is equal to all private consumption, or consumer spending, in a nation's economy "G" is the sum of government spending "I" is the sum of all the country's businesses spending on capital "NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports) 4 what is foreign exchange

Foreign exchange, or Forex, is the conversion of one country's currency into that of another. In a free economy, a country's currency is valued according to factors of supply and demand. In other words, a currency's value can be pegged to another country's currency, such as the U.S. dollar, or even to a basket of currencies. A country's currency value also may be fixed by the country's government. However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.

7 discus the vaious sectors sectors of an economy

External Environment: Economic sectors Business activity is the process of transforming inputs into outputs by adding value. There are three main sectors of business activity: Primary sector Involves the extraction and production of raw materials, such as coal, wood and steel. A coal miner and a fisherman would be workers in the primary sector. Secondary sector Involves the transformation of raw materials into goods e.g. manufacturing steel into cars. A builder and a dressmaker would be workers in the secondary sector. Tertiary sector Involves the provision of services to consumers and businesses, such as cinema and banking. A shopkeeper and an accountant would be workers in the tertiary sector. Goods move through a chain of production. The chain of production follows the construction of a good from its extraction as a raw material through to its final sale to the consumer. So a piece of wood is cut from a felled tree (primary sector), made into a table by a carpenter (secondary) and finally sold in a shop (tertiary).

Some businesses have elements of all sectors in their chain of production. Others businesses choose to specialise. Specialisation occurs when a producer concentrates on making a small number of products, or on providing a narrowly defined service. Examples of specialisation:

Baker only baking bread Machinery that only cuts sheet metal Lawyer dealing only with criminal law

Advantages of specialisation Producer becomes more efficient because they learn the best way (all the short cuts) to produce at the lowest cost A producer may be able to charge a higher price from a customer the customer is prepared to pay more for expert/specialist knowledge (e.g. a cosmetic surgeon)
8 Fundamental economic problems are
1) What to Produce: This arises directly out of scarcity of resources among alternative uses. Should the resources be used in production of consumer goods or capital goods. So the problem is what to commodities produce and in what quantities. 2) How to Produce: Most goods can be produced in more that one ways using resources in different combinations. Which resources and technical process will be employed to produce these goods and services? So the problem after determining what to produce is by what methods are these commodities produce? 3) For Whom to Produce: How is the society to allocate the goods and services produced when the supply is never able to satisfy total demand. Who is to receive what share of the economic goods and services. So the questions is for whom shall the goods and services be produced? Is the rich or the poor? These questions are of importance because an economic system is often judged by the way in which it distributes its goods and services. it is also a question of direct concern to each of us because the answer determines not only the nation's well being but our individual standard of living as well.

9 various concept of national income There are various concepts of National Income. The main concepts of NI are: GDP, GNP, NNP, NI, PI, DI, and PCI. These different concepts explain about the phenomenon of economic activities of the various sectors of the various sectors of the economy. Gross Domestic Product (GDP)

The most important concept of national income is Gross Domestic Product. Gross domestic product isthe money value of all final goods and services produced within the domestic territory of a country during a year. Algebraic expression under product method is, GDP=(P*Q) where, GDP=Gross Domestic Product P=Price of goods and service Q=Quantity of goods and service denotes the summation of all values. According to expenditure approach, GDP is the sum of consumption, investment, government expenditure, net foreign exports of a country during a year. Algebraic expression under expenditure approach is, GDP=C+I+G+(X-M) Where, C=Consumption I=Investment G=Government expenditure (X-M)=Export minus import GDP includes the following types of final goods and services. They are:

1. 2. 3. 4.

Consumer goods and services. Gross private domestic investment in capital goods. Government expenditure. Exports and imports.

Gross National Product (GNP) Gross National Product is the total market value of all final goods and services produced annually in a country plus net factor income from abroad. Thus, GNP is the total measure of the flow of goods and services at market value resulting from current production during a year in a country including net factor income from abroad. The GNP can be expressed as the following equation: GNP=GDP+NFIA (Net Factor Income from Abroad) or, GNP=C+I+G+(X-M)+NFIA Hence, GNP includes the following:

1. 2. 3. 4. 5.

Consumer goods and services. Gross private domestic investment in capital goods. Government expenditure. Net exports (exports-imports). Net factor income from abroad.

Net National Product (NNP) Net National Product is the market value of all final goods and services after allowing for depreciation. It is also called

National Income at market price. When charges for depreciation are deducted from thegross national product, we get it. Thus, NNP=GNP-Depreciation or, NNP=C+I+G+(X-M)+NFIA-Depreciation National Income (NI) National Income is also known as National Income at factor cost. National income at factor cost means the sum of all incomes earned by resources suppliers for their contribution of land, labor, capital and organizational ability which go into the years net production. Hence, the sum of the income received by factors of production in the form of rent, wages, interest and profit is called National Income. Symbolically, NI=NNP+Subsidies-Interest Taxes or,GNP-Depreciation+Subsidies-Indirect Taxes or,NI=C+G+I+(X-M)+NFIA-Depreciation-Indirect Taxes+Subsidies Personal Income (PI) Personal Income i s the total money income received by individuals and households of a country from all possible sources before direct taxes. Therefore, personal income can be expressed as follows: PI=NI-Corporate Income Taxes-Undistributed Corporate ProfitsSocial SecurityContribution+Transfer Payments Disposable Income (DI) The income left after the payment of direct taxes from personal income is called Disposable Income.Disposable income means actual income which can be spent on consumption by individuals and families. Thus, it can be expressed as: DI=PI-Direct Taxes From consumption approach, DI=Consumption Expenditure+Savings Per Capita Income (PCI) Per Capita Income of a country is derived by dividing the national income of the country by the total population of a country. Thus, PCI=Total National Income/Total National Population

Paper 5 1 micor envirounment

Factors or elements in an organization's immediate area of operations that affect its performance and decisionmaking freedom. These factors include competitors, customers, distribution channels, suppliers, and the general public

2 internal envirounment

The Internal Environment

An organization's internal environment is composed of the elements within the organization, including current employees, management, and especially corporate culture, which defines employee behavior. Although some elements affect the organization as a whole, others affect only the manager. A manager's philosophical or leadership style directly impacts employees. Traditional managers give explicit instructions to employees, while progressive managers empower employees to make many of their own decisions. Changes in philosophy and/or leadership style are under the control of the manager. The following sections describe some of the elements that make up the internal environment.

5 what is credit creation

A bank differs from other financial institutions because it can create credit. Banks have the ability to expand their demand deposits as a multiple of their cash reserves. This is because of the fact that demand deposits of the banks serve as the principal medium of exchange, and, in this way, the banks manage the payments system of the country. In short, multiple expansion of deposits is called credit creation and the ability of the banks to expand the deposits makes them unique and distinguish them from other non-bank financial institutions. Demand deposits are an important constituent of money supply and the expansion of demand deposits means expansion of money supply. The whole structure of banking is based on credit. Credit means getting the purchasing power (i.e., money) now by a promise to pay at some time in future. In the words of Kent, "Credit may be defined as the right to receive payment or the obligation to make payment on demand or at some future tune on account of an immediate transfer of goods." In a sense, the words credit, debt and loan are synonymous; credit or loan is the liability of the debtor and the asset of the bank. The word credit is derived from a Latin word 'credo', which means 'I believe'. The creditor believes that the debtor will return the loan and so decides to give the loan. Advancing credit or loan essentially depends upon the (a) confidence, (b) character, (c) capacity, (d) capital, and (e) collateral of the debtor. Bank credit means bank loans and advances. A bank keeps a certain proportion of its deposits as minimum reserve for meeting the demand of the depositors and lends out the remaining excess reserve to earn income. The bank loan is not paid directly to the borrower but is only credited hi his account. Every bank loan creates an equivalent deposit in the bank. Thus, credit creation means multiple expansions of bank deposits. The word 'creation' refers to the ability of the bank to expand deposits as a multiple of its reserves. In nutshell, credit creation refers to the unique power of the banks lo multiply loans and advances, and hence deposits. With a little cash in hand, the banks can create additional purchasing power lo a

considerable degree. It is because of the multiple credits creating power that the commercial banks have been aptly called the 'factories of credit' or 'manufactures of money'. In the words of Newlyn. "Credit creation refers to the power of commercial banks to expand secondary deposits either through the process of making loans or through investment in securities." According to Halm, "The creation of derivative deposits is identical with what is commonly called the creation of credit.
6 fiscal policy Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nation's economy. It is the sister strategy to monetary policy with which a central bank influences a nation's money supply. These two policies are used in various combinations in an effort to direct a country's economic goals. Here we take a look at how fiscal policy works, how it must be monitored and how its implementation may affect different people in an economy. (For background on fiscal policies, see Formulating Monetary Policy.), Before the Great Depression in the United States, the government's approach to the economy waslaissez faire. But following the Second World War, it was determined that the government had to take a proactive role in the economy to regulate unemployment, business cycles, inflation and the cost of money. By using a mixture of both monetary and fiscal policies (depending on the political orientations and the philosophies of those in power at a particular time, one policy may dominate over another), governments are able to control economic phenomena. 11,industrial sicknes Industrial sickness specially in small-scale Industry has been always a demerit for the Indian economy, because more and more industries like cotton, Jute, Sugar, Textiles small steel and engineering industries are being affected by this sickness problem. As per an estimate 300 units in the medium and large scale sector were either closed or were on the stage of closing in the year 1976. About 10% of 4 lakhs unit were also reported to be ailing. And this position also remain same in the next decades. At the end of year 1986, the member of sick units in the portfolio of scheduled commercial banks stood at 1.47,740 involving an out standing bank credit of Rs. 4874 crores. Where the total number of large Industries which are sick were 637 units at the end of year 1985 increased to 714 units in the end of next year 1986. Likewise on the other hand the number of sick small scale units were also increased 1.18 lacks at the end of 1985 to 1.46 lakhs at the end of 1986.

The bank amount which was outstanding in case of large industries for the same period also increased from Rs.2,900 crores to Rs. 3287 crores at the end of year 1986 Dues of Small Scale sector also increased from Rs.1071 crores to Rs.1306 at the end of the year 1986. Of the 147, 740 sick industrial units which contains large medium as well as small scale involving the total bank loan (credit) of Rs. 4874 at the end of the year 1986.

[edit]Causes

of sickness in small scale industry

The different types of industrial sickness in Small Scale Industry (SSI) fall under two important categories. They are as follows: [edit]Internal

causes for sickness

We can say pertaining to the factors which are within the control of management. This sickness arises due to internal disorder in the areas justified as following: a) Lack of Finance: This including weak equity base, poor utilization of assets, inefficient working capital management, absence of costing & pricing, absence of planning and budgeting and inappropriate utilization or diversion of funds. b) Bad Production Policies : The another very important reason for sickness is wrong selection of site which is related to production, inappropriate plant & machinery, bad maintenance of Plant & Machinery, lack of quality control, lack of standard research & development and so on. c) Marketing and Sickness : This is another part which always affects the health of any sector as well as SSI. This including wrong demand forecasting, selection of inappropriate product mix, absence of product planning, wrong market research methods, and bad sales promotions. d) Inappropriate Personnel Management: The another internal reason for the sickness of SSIs is inappropriate personnel management policies which includes bad wages and salary administration, bad labour relations, lack of behavioural approach causes dissatisfaction among the employees and workers. e) Ineffective Corporate Management: Another reason for the sickness of SSIs is ineffective or bad corporate management which includes improper corporate planning, lack of integrity in top management, lack of coordination and control etc. [edit]External

causes for sickness

a) Personnel Constraint: The first for most important reason for the sickness of small scale industries are non availability of skilled labour or manpower wages disparity in similar industry and general labour invested in the area. b) Marketing Constraints: The second cause for the sickness is related to marketing. The sickness arrives due to liberal licensing policies, restrain of purchase by bulk purchasers, changes in global marketing scenario, excessive tax policies by govt. and market recession. c) Production Constraints: This is another reason for the sickness which comes under external cause of sickness. This arises due to shortage of raw material, shortage of power, fuel and high prices, importexport restrictions.

d) Finance Constraints: The another external cause for the sickness of SSIs is lack of finance. This arises due to credit restrains policy, delay in disbursement of loan by govt., unfavorable investments, fear of nationalization. Paper 6

1 what is null hypothesis

At the heart of the scientific method is the process of hypothesis testing. Given an observable phenomenon in the world, a scientist will construct a hypothesis which seeks to explain that phenomenon. Hypothesis testing is used by pharmaceutical companies to ascertain whether a drug is effective against a certain disease, by neuroscientists to determine whetherneuroplasticity-based therapy helps stroke patients, by advertising businesses to decide whether a new campaign is worthwhile, and so on. The way hypothesis testing works is by setting up two opposing hypotheses. One, the null hypothesis, is the reference or baseline hypothesis. If the null hypothesis is supported, nothing unusual is going on; the factor under investigation has no explanatory power; the drug being tested has no effect; the advertising campaign doesnt work. But dont be misled this hypothesis is crucial. In reality it is the only hypothesis actually being tested.
2 what is sampling?

Sampling is a method of studying from a few selected items,instead of the entire big number of units. The small selection is called sample. The large number of items of units of particular characteristic is called population. Example: We check a sample of rice to see whether the rice well boiled or not. We check a small sample of solution to decide how much a given solution is concentrated. Thus with the sample we infer about a population. Some of the types of sampling are (1) simple random sampling. Mostly used for the type of population which is homogeneous.(2) Stratified sampling. Stratas help us classify the population when the population is heterogeneous and take simple random samples from each classes. (3) Sequential sampling is don by selection of

the samples sequentially at regular intervals. The purpose of all the sampling techniques is to give the equal chance of any item to be selected without bias. 4 type 1 and 11 error
The process of hypothesis testing can seem to be quite varied with a multitude of test statistics. But the general process is the same. Hypothesis testing involves the statement of a null hypothesis, and the selection of a level of significance. The null hypothesis is either true or false, and represents the default claim for a treatment or procedure. For example, when examining the effectiveness of a drug, the null hypothesis would be that the drug has no effect on a disease. After formulating the null hypothesis and choosing a level of significance, we acquire data through observation. Statistical calculations tell us whether or not we should reject the null hypothesis. In an ideal world we would always reject the null hypothesis when it is false, and we would not reject the null hypothesis when it is indeed true. But there are two other scenarios that are possible, each of which will result in an error.

6 research design

esigning of the research is done mainly to solve the problem of getting the various stages of the research under control. This control factor is very important for the researcher during any of the research operation. Preparation of the design for the research forms a very critical stage in the process of carrying out some research work or a research project. Research Design in general terms can be referred to as the scheme of work to be done or performed by a researcher during the various stages of a research project. With the help of the research design, one can very easily handle and operate research work as research design acts as a working plan, which is made by a researcher even before he starts working on his research project. By this, researcher gets a great help and guidance in achieving his aims and goals. According to Russell Ackoff, research design is the process of making decisions before a situation arises in which the decision has to be carried out. It is actually a process of deliberate anticipation directed towards bringing an unexpected situation under control.

Russell Ackoff has in a great way explained about the research design in his book Designs of Social Research. Meaning of research design

Like an architect prepares a blue print before he approves a construction in the same way researcher makes or prepares a plan or a schedule of his own study before he starts his research work. This helps the researcher to save time and also save some of his crucial resources. This plan or blue print of study is referred to as the research design. Research design is also called as the research strategy and the various steps or stages that 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Interpretation 11. Report writing Collection of Hypothesis of the the Literature a research design may include can be summarized as follows Research Problem Hypothesis Conceptual problem selection presentation formulation clarity Methodology survey Bibliography data testing result

9 Contents of a research report: A template

inShar e0

By Dr. Brian Kinnaird For whatever research you intend to do in your law enforcement profession, always plan to record enough information so that people outside of your agency can understand and interpret what youre researching, why, and how. Title Page (name of the agency, product, program, or service that is being researched; date) Table of Contents Executive Summary (one-page, concise overview of findings and recommendations) Purpose of the Report (what type of research was conducted, what decisions are being aided by the findings of the research, who is making the decision, etc.) Background About Agency/Product/Service/Program that is being researched a) Organization Description/History b) Product/Service/Program Description (that is being researched)

i) Problem Statement ii) Overall Goal(s) of Product/Service/Program iii) Outcomes (or client/customer impacts) and Performance Measures (that can be measured as indicators toward the outcomes) iv) Activities/Technologies of the Product/Service/Program (general description of how the product/service/program is developed and delivered) v) Staffing (description of the number of personnel and roles in the organization that are relevant to developing and delivering the product/service/program) Overall Evaluation Goals (what questions are being answered by the research?) Methodology a) Types of data/information that were collected b) How data/information were collected (what instruments were used, etc.) c) How data/information were analyzed d) Limitations of the evaluation (cautions about findings/conclusions and how to use the findings/conclusions, etc.) Interpretations and Conclusions (from analysis of the data/information) Recommendations (regarding the decisions that must be made about the results) Appendices (content of the appendices depends on the goals of the research report) a) Instruments used to collect data/information b) Data (tabular format, etc.) c) Testimonials, comments made by users of the product/service/program d) Case studies of users of the product/service/program e) Any related literature

What are the methods of Sampling and Probability Sampling?

10 Posted in Research Methodology | Email This Post The process which involves the selection of the sample but does not involve its composition is called as the sampling method. There are different methods for carrying out the sampling process and these methods can be categorized as follows a. Probability Sampling Studying different methods for the sampling is very important as its study helps in the improvement of the precision, accuracy, efficiency etc. of the different sample results, as these are very much dependent on the actual method that is being used. This method of sampling, as the name suggests, depends on the theory of the probability. The selection of the units from a population is done depending on the probabilities that are known. Probability sampling is a process of sample selection in which the elements are chosen by chance methods through tables of the random numbers.

The probability sampling method is also referred to as the random sampling method and is mainly used in the cases involving significant decisions, not giving much importance to the budget and the time. Probability sampling methods are of the following types 1. equal can one Very is useful the in the simple cases Is chance obtained Simple free of is Random from being referred be involving a homogeneous without the included to as in the Sampling personal the Random bias. sample. Sample. made. population. replacement.

Sample is drawn in such a way that the every member of the population has an Sample

Very suitable, if the population is small or if the list of the elements in the population

Is further of two types simple random sampling with replacement and the other random sampling If the units of a sample are drawn one by one from the population in such a way that after every drawing the selected unit is returned to the population then this is called as the simple random sampling with replacement. And if the units of a sample are drawn one by one from the population in such a way that after every drawing the selected unit is not returned to the population then this is called as the simple random sampling without replacement. Random sampling can be performed with the help of certain specific methods and some of these methods are A. putting container. Those picked are taken up for the sampling. B. Tippets Numbers method Was evolved by L.H.C Tippet, name of this method comes from his name. He made a list of 10, 4000 four digit number s written at random on each page. From these numbers, samples are drawn at random. Is a very reliable and a dependable method. Lottery them in method a container. A lottery is drawn by writing a number or the names of various units and then They are completely mixed and then certain numbers are picked up from the

C. D. Names Then

Selection are from the Grid Involves drawing

from arranged list, serially any

Sequential in a may

List specific be

pattern.

Pattern may be alphabetical, geographical or it may be serial in nature. number taken up. the entire area. Selection can be started from anywhere. System of the map of

Then screen with the squares placed on the map of the entire area is drawn. After this the screen with the squares placed upon the map and some of the squares are is taken as the sample. 2. Stratified random sampling This type of probability sampling method is one of the most commonly used methods and involves the division of the whole population into a number of strata. These strata are very much exclusive and also very exhaustive in the nature. From each of these strata, a simple random sample is drawn, by this; the number of the samples drawn from each of the sample becomes proportional to their respective strata size. When the population is heterogeneous in nature, this type of sampling plays a very critical role. The stratification in this method is performed in such an elegant way that the variance between the strata is high and data within each stratum is very small. Types of Stratified Random Sampling selected at random. Then the screen is placed upon the map and the area falling in the selected squares

A. Disproportionate Stratified Random Sampling In this type of sampling, equal number of the units are drawn from each stratum, not depending on the size of the strata. B. Proportionate Stratified Random Sampling in this type of sampling, the number of units in each stratum is proportionate to its number in the universe. 3. Systematic random sampling This method involves the formation of a sample in a very systematic manner, involves the arrangement of the units in the population in a serial manner. A major point to be kept in mind here is that the population should be finite in nature and also should be defined very clearly. After this, from the first K units, one unit is selected at random, this unit and also every K th unit onwards from the serially listed populations forms a systematic sample. This method is very simple and convenient in use as it saves a lot of time.

4. Multi Stage sampling As the name suggests, this method takes place in a number of stages population consists of first stage units and each of these first stage units consist of a number of second stage units. These second stage units further consist of the third stage units and this is followed till the ultimate unit is achieved. One of the major positive points of such a sampling method is that the frame of the second stage units is needed only for the selected first stage units. In this sampling procedure, sample from the first stage units is chosen with the help of any method that is suitable or correct. After this the sample of the second stage is chosen by suitable method from first stage units and then this procedure is followed until the ultimate units are reached. 5. Cluster Sampling This type of method is very useful in lowering the filed cost as this method is a very practical and easily opera table method. Here the population is divided into a number of groups and these groups are referred to as the clusters and further these clusters are referred to as the primary sampling units. This method involves first of all the identification of the cluster, according to which clusters may be units like districts, talukas, city blocks, schools etc. Clusters should be homogeneous in the internal characteristics.Then further in this method, determination of the number of the stages is to be done. It may involve single stage or two stage or multi stage sampling. b. Non Probability Sampling This type of method does not provide any type of ground for estimating the probability for each item in the population process to be included in the sample. Here sampling error is not measurable and such methods are used widely to contact the respondents in this case as the primary objective involves the probing for the possible range of the answers. Non 1. 2. Also Probability Sampling Convenience Representatives Not suitable Suitable for of use in for Judgment called as the the the samples descriptive the methods are mainly sampling cannot and the be casual classified as known. studies. studies. sampling.

Selection of the samples is done according to the convenience of the researcher. So as a result of this, results that are received are biased in nature. exploratory Sampling Purposive

Very useful in testing of the questionnaire.

 Firstly, a sample is drawn from the population, which a researcher thinks to be a representative of the population. All the members do not get the chance to get selected in the sample. 3. Form Quota Used in Quota of is the the selected marketing Sampling Stratified in research sampling. advance. studies.

Number to be selected from each stratum is referred to as the Quota.

Sample is selected on the basis of parameters like the age, sex, income etc. Field workers mainly choose the sample and are assigned quotas. Paper 7 1 What do you mean by Information Resource Management Information Resource Management (IRM) is a core competency in an Information-Age enterprise. This function directly supports the strategic business objectives through applying management principles to the data resource. It establishes and assures information policies, standards and processes for managing the organization's data, information and knowledge as strategic business resources.

2 Executive Support System

Executive Support System (ESS) is a reporting tool (software) that allows you to turn your organization's data into useful summarized reports. These reports are generally used by executive level managers for quick access to reports coming from all company levels and departments such as billing, cost accounting , staffing, scheduling, and more. In addition to providing quick access to organized data from departments, some Executive Support System tools also provide analysis tools that predicts a series of performance outcomes over time using the input data. This type of ESS is useful to executives as it provides possible outcomes and quick reference to statistics and numbers needed for decision-making. The exact reporting tools and outcome of an Executive Support System completely depends on the ESS developer and it's intended industry use. For example, Cambridge Systematics has ESS to support the investment planning process for the Ministry of Transportation. The features and functions of this Executive Support System are entirely different from the Executive Support System developed by Meditech, which is useful to health care organizations. Several companies offer pre-designed Executive Support System packages (usually suited to one particular industry), while others offer packages which can be customized your your organization's needs.

What is functional programming?

In functional programming, programs are executed by evaluating expressions, in contrast with imperative programming where programs are composed of statements which change global state when executed. Functional programming typically avoids using mutable state. Functional programming requires that functions are first-class, which means that they are treated like any other values and can be passed as arguments to other functions or be returned as a result of a function. Being first-class also means that it is possible to define and manipulate functions from within other functions. Special attention needs to be given to functions that

reference local variables from their scope. If such a function escapes their block after being returned from it, the local variables must be retained in memory, as they might be needed later when the function is called. Often it is difficult to determine statically when those resources can be released, so it is necessary to use automatic memory management.
5 difference between information and data

Data is raw material for data processing. data relates to fact, event and transactions. Data refers to unprocessed information. Information is data that has been processed in such a way as to be meaningful to the person who receives it. it is any thing that is communicated.

For example,researchers who conduct market research survey might ask a member of the public to complete questionnaires about a product or a service. These completed questionnaires are data; they are processed and analyze in order to prepare a report on the survey. This resulting report is information.

The Various Types of Information Systems Analysis Projects

Contact Martin Modell Table of Contents
CHAPTER SYNOPSIS

There are three types of information systems projects: manual, manual to automated, and reautomation. The last, reautomation, has four subtypes: system rewrite, system redesign and redevelopment, system enhancement, and system maintenance. Each of these involves different, and yet similar, work. The work is similar in that the development activities which are involved in each follow the same general phases and approach. They are different in that the environment that the analyst must examine has substantially different characteristics. This chapter examines each of the various types of analysis projects, along with a brief discussion of the GibsonNolan electronic data processing (EDP) stages of growth theory and its impact on the analysis process. In addition there is a brief discussion of the Anthony model of organizational structure. A definition Personal Computer (PC) - also known as microcomputers or workstations, by the model name of the specific vendor (i.e. Apple [1], Macintosh [2], or PS/2 [3]) or by the brand name, model and speed of the processor (i.e. Pentium, Intel or 486/33 [4]) Any combination of processor, input device and output device designed for use by a single individual. Personal computers may also be called workstations. Personal computers may have a character orientation, a graphical orientation, may be connected to other personal computers, or may operate in a stand alone mode, and may or may not have connectivity to a mainframe.

Personal computer software is normally characterized by an operating system which provides basic file access, management and display services and well as application scheduling and management. Reasons For Initiating Information Systems Analysis Projects Information systems analysis projects are initiated for a variety of reasons. These include: 1. As part of a program of System Modernization. Many firms undertake a series of projects to upgrade all data processing technology - both hardware, operating system and support software and automated business applications. This is usually initiated as part of a desire to eliminate the older centralized applications and to replace them with newer personal computer based system. 2. A change in the basic aspects of the user's functional role As the companies redesign their basic processes either as a result of a continuous improvement effort, or a more radical Business Process Reengineering effort 3. A change in company strategic objectives Increased competition, both in the local and international markets have forced many firms to rethink not only how they do business but also what business they should be in. In some instances, manufacturing firms are becoming service firms, primary producers are becoming assemblers of components produced by others, companies are changing their lines of business, and reexamining the customer base they are focused on. Large firms are divesting themselves of divisions and whole product lines and reverting back to what they feel are their core businesses. 4. A need for increased performance, greater or different functionality, different operating characteristics, or increased user friendliness from the automated systems As business conditions change, there are increased user demands for greater or in some cases different functionality from the exiting systems. Increased user computer literacy, and exposure to PC applications with Graphical User Interfaces (GUI) have changed user expectations for and tolerance of sometimes awkward, character based systems. 5. A need for more direct and immediate access to the firm's automated files. The exposure to the wide variety of workstation based tools and systems. Most user workstations or PCs have extensive files of their own. The data in these files may have come from information keyed in by the user, transferred to the users machine from another user machine via diskette, or d own-loaded to the users machine from either another workstation or from a mini-computer or mainframe via a file transfer mechanism. These transfers are time consuming and awkward. Users are increasingly looking for faster access to data regardless of where it resides. 6. A need to upgrade the system to take advantage of more current technology. Vendors are increasing the power (speed and capacity) of their offerings. Capacity includes both Random Access Memory (RAM) and hard drive storage. The speed, capacity and variety of peripheral equipment (printers, plotters, scanners, fax, CD-ROM (Compact Disk - Read Only Memory), high resolution monitors, etc.) continues to expand as well. As capacity and speed increase and as more and

more peripheral capability becomes available the variety of applications available increases as well and users rush to acquire these new tools. 7. A need to clean up the system All computer systems tend to get cluttered over time with a patchwork of add-on modules, files, and processes. These pieces do not work together in a harmonious manner but rather interact awkwardly and inefficiently. Given the above, we can no long assume that a systems analysis project has been undertaken as the first step toward developing a new or improved .application. Nor can we assume that many of the constraints that applied to the development of mainframe systems are still in effect. In fact we can no longer assume that we will be developing a mainframe resident system at all. Todays systems can reside on a variety of hardware platforms and take a variety of forms. The Three Types of Information Systems Analysis Projects The scope and magnitude of the functional and procedural changes may be fairly narrow or wide ranging. In some cases, aside from re-coding the system, there may be no changes in functionality at all. Given the variety of reasons for a project being undertaken, the starting point may also be quite different from project to project. These starting points reflect the differences in current user processing environments and the current level of user automation. Because of these differences in current user processing environments and user automation, information systems projects can be categorized into three types. 1. 2. 3. 4. Manual Manual to automated Reautomation The last, reautomation, has four subtypes. a) System rewrite b) System redesign and redevelopment c) System enhancement d) System maintenance

1 DEFINE MIS AND IMPORTANCE

CONCEPT, ROLE AND IMPORTANCE OF MIS

CONCEPT The MIS is an idea which is associated with man, machine, marketing and methods for collecting informations from the internal and external source and processing this information for the purpose of facilitating the process of decision-making of the business.

MIS is not new, only the computerization is new , before computers MIS techniques existed to supply managers with the information that would permit them to plan and control business operations. The computer has added on more dimensions such as speed, accuracy and increased volume of data that permit the consideration of more alternatives in decision-making process. The scope and purpose of MIS is better understood if each part of them is defined individually, thus 1. MANAGEMENT: Management has been define in process or activities that describe what managers do in the operation for their organization plan, organize, initiate and control operations. They plan by setting strategies and goals and selecting the best course of action to achieve the goals. They organize the necessary tasks for the operational plan, set these tasks up into homogenous groups and assign authority delegation; they control the performance standards and avoiding deviation from standard.

The decision-making is a fundamental prerequisite of each of the foregoing process, the job of MIS is facilitating decisions necessary for planning, organizing and controlling the work and functions of the business so that specified goals of business are achieved.

2.

INFORMATION: Data must be distinguished from information and the distinction is clear and important for present purpose. Data are facts and figures that are not currently being used in a decision-making process and usually are taken from the historical records that are recorded and filled without immediate intent to retrieve for decision-making.

Information consists of data that have been retrieved, processed or otherwise used for information or interference purpose, argument or as a basis forecasting or decision-making regarding any business unit. Information is knowledge that one derives from facts for effective functioning of systems placed in the right context with the purpose of reducing uncertainty regarding the alternative courses of action as they are based on description and measurement of attributes of various entities associated with the enterprise.

3.

SYSTEM: The system can be described as a set of elements joined together for a common objective. A subsystem is a part of a larger system with which one is concerned. All systems for our purpose the organization is the system and the parts (divisions, departments, functions, unit etc) are the subsystem.

The system concept of MIS is, therefore one of optimizing the output of the organization by connecting the operating subsystems through the medium of information exchange.

The Management information system (MIS) is a concept of the last two decade or two. It has been understood and described in a number of ways. It is also known as the Information System, the Information and Decision System, the computer based Decision System.

Information is the life blood of an organization, particularly in the case of system approach management. The MIS or Information system can be define as the knowledge communicated by others or obtained from investigation or study. It is a system providing needed information to each manager at the right time in the right form and relevant one which aids understanding and stimulates the action. MIS is an organized method of providing past, present and projection information relating to internal operations and externals intelligence. It supports the planning, control and operational functions of an organization by furnishing uniform information in proper time frame to help the process of decision-making. Management Information System is generally defined as an integrated user-machine system for providing information to support operations, management and decision-making functions in an organization. The system utilizes computer hardware and software, manual procedure, models for analysis. Information is viewed as a resource much like land, labor and capital. It must be obtained processed, stored, manipulated and analyzed, distributed etc. An organization with a well-defined information system will generally have a competitive advantage over organization with poor MIS and no MIS. The MIS has more than one definition, some of which are given below: I. II. The MIS is defined as a system which provides information support for decision-making in the organization. The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision-making function in the organization. The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. The MIS is defined as a computer-based information system. Though there are a number of definitions all of them converge on a single point, i.e. the MIS is a system that support the decision-making function of the organization. The difference lies in defining the elements of MIS. However, in todays world, the MIS is a computerized business processing system generating information for the people in the organization to meet the information needs for decision-making to achieve the corporate objective of the organization. MIS is a computer-based system that provides flexible and speedy access to accurate data. The organizational information system which in general relates to the planning, operation and control of an enterprise are the most important among them. MIS refers primarily to such an organizational system which is generally large, sophisticated, structured and dynamically evolving and of immense commercial values. A large number of programmers and system analysts are employed by many organizations to build a variety of MIS. Thus, the education of programmers and system analysts as well as general manager, the subject of MIS, has occupied a key position. Thus, MIS is a set of computer-based system and procedures implemented to help managers in their routine job of decision-making and planning, expansion and development. The objective of MIS is to provide information for a decision support process of management. It should help in such a way that the business goals are achieved in the most efficient manner. Since the decision-making is not restricted to a particular level, the MIS is expected to support all the levels of the management in conducting the business operations. Unless the MIS becomes a management aid, it is not useful to the organization.

III.

IV.

Modern management system relies on MIS, the complexity of business management and competitive nature of business requires handling of business operations with skill and foresight to advert the crisis. The management process is executed through a variety of decisions taken at each step of planning, organizing, staffing, directing, coordinating and controlling. If the management is able to spell out the decision required to be taken, then the MIS is designed suitably. The actual MIS process relates to: A. B. C. D. E. Collection Organization Distribution Storage of wide information Managerial control and analysis of data Hence MIS focuses on: i. ii. iii. iv. Organization-wide information Decision-making process Managerial control and analysis Computer-based system

CONCLUSION: Management Information Systems is sets of inter-related procedures using information system infrastructure in a business enterprise to generate and disseminate the desired information. Such systems are designed to support decision-making by the people associated with the enterprise in the process of attainment of its objectives. The MIS gets data and other resources of IT infrastructure as inputs from the environment and process them to satisfy the information needs of different entities associated with the business enterprise. There are subsystems of control over the use of IT resources and feedback system offers useful clues for increasing the benefits of information system to business. The MIS are subsystem of business system and by themselves serve the function of feedback and control in business system.

ROLE OF MANAGEMENT INFORMATION SYSTEM

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart work faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processed it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis.

The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is collected from the various sources, processed and send further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and top management. Here are some of the important roles of the MIS: i. The MIS satisfies the diverse needs through variety of systems such as query system, analysis system, modeling system and decision support system. The MIS helps in strategic planning, management control, operational control and transaction processing. The MIS helps in the clerical personal in the transaction processing and answers the queries on the data pertaining to the transaction, the status of a particular record and reference on a variety of documents. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control , and helps them further in decision-making at the operation level to correct an out of control situation. The MIS helps the middle management in short term planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top level management in goal setting, strategic planning and evolving the business plans and their implementation. The MIS plays the role of information generation, communication, problem identification and helps in the process of decision-making. The MIS, therefore, plays a vital role in the management, administration and operation of an organization. IMPACT OF THE MANAGEMENT INFORMATION SYSTEM MIS plays a very important role in the organization; it creates an impact on the organizations functions, performance and productivity. The impact of MIS on the functions is in its management with a good MIS supports the management of marketing, finance, production and personnel becomes more efficient. The tracking and monitoring of the functional targets becomes easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by providing certain information indicating and probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning. The managers attention is bought to a situation which is expected in nature, inducing him to take an action or a decision in the matter. Disciplined information reporting system creates structure database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away by blending and analysis, saving the managers valuable time. The MIS creates another impact in the organization which relates to the understanding of the business itself. The MIS begins with the definition of data, entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is common understanding of terms and terminology in the organization bringing clarity in the communication and a similar understanding of an event in the organization.

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The MIS calls for a systematization of the business operations for an effective system design. This leads to streaming of the operations which complicates the system design. It improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism in the business operations. The goals and objectives of the MIS are the products of business goals and objectives. It helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the organization. A well designed system with a focus on the manager makes an impact on the managerial efficiency. The fund of information motivates an enlightened manager to use a variety of tools of the management. It helps him to resort to such exercises as experimentation and modeling. The use of computers enables him to use the tools and techniques which are impossible to use manually. The ready-made packages make this task simple. The impact is on the managerial ability to perform. It improves decision-making ability considerably high. Since, the MIS work on the basic system such as transaction processing and database, the drudgery of the clerical work is transferred to the computerized system, relieving the human mind for better work. It will be observed that lot of manpower is engaged in this activity in the organization. Seventy (70) percent of the time is spent in recording, searching, processing and communicating. This MIS has a direct impact on this overhead. It creates information based working culture in the organization.

IMPORTANCE OF MIS It goes without saying that all managerial functions are performed through decision-making; for taking rational decision, timely and reliable information is essential and is procured through a logical and well structured method of information collecting, processing and disseminating to decision makers. Such a method in the field of management is widely known as MIS. In todays world of ever increasing complexities of business as well as business organization, in order to service and grow , must have a properly planned, analyzed, designed and maintained MIS so that it provides timely, reliable and useful information to enable the management to take speedy and rational decisions. MIS has assumed all the more important role in todays e nvironment because a manager has to take decisions under two main challenges: First, because of the liberalization and globalization, in which organizations are required to compete not locally but globally, a manager has to take quick decisions, otherwise his business will be taken away by his competitors. This has further enhanced the necessity for such a system. Second, in this information age wherein information is doubling up every two or three years, a manager has to process a large voluminous data; failing which he may end up taking a strong decision that may prove to be very costly to the company. In such a situation managers must be equipped with some tools or a system, which can assist them in their challenging role of decision-making. It is because of the above cited reasons, that today MIS is considered to be of permanent importance, sometimes regarded as the name centre of an organization. Such system assist decision

makers in organizations by providing information at various stages of decision making and thus greatly help the organizations to achieve their predetermined goals and objectives. On the other hand, the MIS which is not adequately planned for analyzed, designed, implemented or is poorly maintained may provide developed inaccurate, irrelevant or obsolete information which may prove fatal for the organization. In other words, organizations today just cannot survive and grow without properly planned, designed, implemented and maintained MIS. It has been well understood that MIS enables even small organizations to more than offset the economies of scale enjoyed by their bigger competitors and thus helps in providing a competitive edge over other organizations.