CHAPTER 1- NATURE AND SIGNIFICANCE OF MANAGEMENT

1. Definition of Management - Management is a process of planning, organising, staffing , Directing and

Controlling the enterprise resources effectively and efficiently to achieve the goals of the organization.
According to Harold Koontz and Heinz Weihrich – “ Management is the process of designing and
maintaining an environment in which individual work together in groups and efficiently accomplish
selected aims.”

2. OBJECTIVE OF MANAGEMENT : (OSP)

(I) Organizational objective / Economic objective - (A)Survival : (B)Profit : (C)Growth (SPG)
(II) Social objectives :-Towards society
(III) Personal objectives :- Towards employees

3. IMPORTANCE / BENEFITS / SIGNIFICANCE OF MANAGEMENT (HHHIC) :

(i) Management helps in achieving group goals
(II) Management helps in achieving personal objectives
(III) Management help in the development of society
(Iv) Management increase efficiency
(V) Management creates a dynamic organization
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4. MANAGEMENT AS AN ART : (EPB):
Art is the skillful and personal application of existing knowledge to achieve desired results . it can be acquired
through study , observation and experience.(SOE)
(i) Existence of theoretical knowledge :
(II) Personalized application :
(III) Based on practice and creativity :
CONCLUSION - Management is an art, as it satisfies all the features of an art.

5. MANAGEMENT AS A SCIENCE: (SPU):

Science is a systematized body of knowledge that explains certain general truth or the operation of general
laws
(i) Systematized body of knowledge
(II) Principles based on experimentation :
(iii) Universal validity :
CONCLUSION :- Management. is not an exact science like physics or chemistry but it is an inexact science .

6. MANAGEMENT AS A PROFESSION : (WRPES):

A Profession has the following characteristics :
(I) Well defined body of knowledge:
(II) Restricted entry :
(III) Professional Association :
(iv) Ethical code of conduct :
(V) Service motive:
CONCLUSION :- Management is not a profession, but it is moving towards profession.
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7. LEVELS OF MANAGEMENT :
(i) TOP MANAGEMENT : It includes chairman, chief executive officer , Chief operating officer, president and vice
president , board of directors , managing Director. (WARFC)
(i) Welfare and survival of the organization
(ii) Analyze the business environment
(iii) Formulate overall organizational goals
(iv) Responsible for all the activities of the business
(v) Coordinate the activities of different departments

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(II) MIDDLE MANAGEMENT : It includes Branch manager; Production manager, Plant superintendent
(a) Interpret the polices framed by top management (IEAMC )
(b) Ensure that their department has the necessary personnel
(c) Assign necessary duties and responsibilities to the personnel
(d) Motivate the personal to achieve desired objective
(e). CO- operate with other department for smooth functioning of the organization
(III) SUPERVISORY OR OPERATIONAL MANAGEMENT – It includes Supervisor, Foreman, Inspector (ITQER)
(a) Interact with the actual work force
(b) Through their efforts quality of output is maintained, wastage of materials is minimized and safety
standards are maintained.
(c) Quality of workmanship, and Quantity of output depends on the hard work, discipline and loyalty of workers
(d) Ensure adequate Lighting, Ventilation and Orderliness in working area
(e) Represent the workers grievances before the management
8. (I) FUNCTIONS OF MANAGEMENT (POSDC)
(a) Planning
(b) Organizing
(c) Staffing-it includes Recruitment, selection, placement& orientation, training and development
(d) Directing – it includes - (a) Supervision (b) Motivation (c) Leadership (d) Controlling
(e) Controlling
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9. DEFFINTION OF COORDINATION: - Coordination means synchronizing the efforts by unifying , integrating and
harmonizing the activities of different department and individual for the achievement of common objectives.
10. CHARACTERISTICE / NATURE / FEATURES / ATTRIBUTES OF COORDINATION : (IE CPRD)
(a) Coordination integrates groups efforts
(b) Coordination ensure unity of action.
(c) Coordination is a continuous process
(d) Coordination is an all pervasive function
(e) Coordination is the responsibility of all managers
(f) Coordination is a deliberate function
11. IMPORTANCE / BENEFITS / SIGNICANCE OF COORDIANTION (GFS)
(a) Growth in size
(b) Functional differentiation
(c) Specialization
12. COORDINATION IS THE ESSENCE OF MANAGEMENT :
(a) Coordination is required in planning
(b) Coordination is required in organizing
(c) Coordination is required in staffing
(d) Coordination is required in directing
(e) Coordination is required in controlling
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13. EFFECTIVENESS VERSUS EFFICIENTCY: or effectiveness and efficiency are two sides of the same
coin Discuss.
EFFECTIVENESS – IN Management is concerned with doing the right task, completing activities and achieving
goals(DCA)
EFFICIENCY: - Means doing the task correctly with minimum cost. (DM)
14. CHARACTERISTICS / NATURE / FEATURES / ATTRIBUTES OF MANAGEMENT (GPM CDGI)
1. Mgt. is a goal-oriented process
2. Mgt. is all pervasive
3. Mgt. is multidimensional (a. Mgt. work, b. Mgt. of people, c, Mgt. of operation)
4. Mgt. is continuous process
5. Mgt. is a dynamic function
6. Mgt. is a group activity
7. Mgt. is an intangible force
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 CHAPTER 2- PRINCIPLES OF MANGMENT
1. DEFINITION OF PRINCIPLES OF MANAGEMENT :-
Principles of management are general guidelines which can be used for conduct in work
place under certain situations. They help managers to take and implement decisions.
They have been derived through .
(i) Deep observation and (II) Repeated experimentation.

2. Nature / Features / Characteristic / Attributes of P.O.M. (UGFF MCC)

(a) Universal applicability
(b) General guidelines
(c) Formed by Practice and experimentation
(d) Flexible
(e) Mainly behavioral
(f ) Contingent
(g) Cause and effect relationships

3. IMPORTANCE / SINGIFICANE / BENEFITS OF P.O.M. (POS MFM)

(a) Provide managers with useful insight into reality
(b) Optimum utilization of resource and effective administration
(c) Scientific decisions
(d) Meeting changing environment requirements
(f) Fulfilling social responsibility
(g) Management training, education and research
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4. DEFINITIONOF SCIENTIFIC MANAGEMENT:
Scientific Management means exactly what you want men to do and seeing that
they do it in the best & cheapest way- F.W. TAYLOR
5. PRINCIPLES OF SCIENTIFIC MANAGEMENT: (SHCD)
(a) Science, not rule of thumb
(b) Harmony, not discord
(c) Cooperation, not individualism
(d) Development of each & every person to his/ her greatest efficiency & prosperity

6. Techniques of scientific Management (FS MMTFD)

(a) Functional foremanship
(b) Standardization and Simplification of work
(c) Fatigue study
(d) Method study
(e) Motion study
(f) Time study
(g) Differential piece wage system.
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 7. FAYOL’S PRINCIPLES OF MANGEMENT- (DADUU SRC SS EE IO )

(a) Division of work

(b) Authority and Responsibility
(c) Discipline
(d) Unity of Command
(e) Unity of Direction
(f) Subordination interest to general interest.
(g) Remuneration Employees
(h) Centralization and decentralization
(i) Scalar chain
(j) Stability of personnel
(k) Equity
(l) Espirit De Corps
(m) Initiative
(n) Order
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8. DIFFERENCE BETWEEN - HENRY FAYOL VS F.W. TAYLOR (PUB PAFE)
(a) Perspective
(b) Unity of command
(c) Basis of formation
(d) Personality
(e) Applicability
(f) Focus
(g) Expression

(ii) Unity of command vs Unity of Direction (AIM)

(a) Meaning
(b) Aim
(c) Implications

(III) Centralization Vs Decentralization (MAFS)

(a) Meaning
(b) Authority
(c) Freedom of action
(d) Suitability
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 CHAPTER -3 BUSINESS ENVIRONMENT
1. DEFINITION OF BUSINESS ENVIRONMENT :-
The term “ Business Environment ‘ means the Sum total of all individuals , institutions and other
forces that are outside the control of a business enterprise but that may affect its performance . Thus
Economic, social, political, Legal and technological and other forces which are outside the business but
are a part of its environment.
2. FEATURES/ CHARACTERISTIC / NATURE / ATTRIBUTES OF B.E.(TSI DUCR)
(a) Totality of external forces
(b) Specific and General Forces
(c) Interrelatedness
(d) Dynamic nature
(e) Uncertainty
(f) Complexity
(g) Relativity
3. IMPORTANCE / BENFITS / SIGNKIFACNE OF BUSINESS ENVIRONMENT (OT TC AI)
(a) It enables the firm to identify opportunities and getting the first mover advantages.
(b) It helps the firm to identify threats and early warning signals.
(c) It helps in tapping useful resources
(d) It helps in coping with rapid changes
(e) It helps in assisting in planning and policy formulation
(f) It helps in improving performance
4. DIMENSIONS / COMPONENTS OF BUSINESS ENVIRONMENT (ESPLT)
(a) Economic Environment
(b) Social Environment
(c) Political Environment
(d) Legal Environment
(e) Technological Environment
5. IMPACT OF GOVERNMENT POLICY CHANGES ON BUSINESS AND INDUSTRY (MM NN IRL)
(a) More demanding customers
(b) Market orientation
(c) Necessity for change
(d) Need for developing human resources
(e) Increasing competition
(f) Rapidly changing technological environment
(g) Loss of budgetary support to the public sector
6. IMPACT OF GOVERNMENT POLICY CHANGES OF BUSINESS: (LPG)
(a) Liberalization
(b) Privatization
(c) Globalization
7. MANAGERIAL RESPONSE TO CHANGES IN GUSINESS ENVIRONMENT (DJB USC) :
(a) Diversification spree
(b) Joint venture
(c) Brand building
(d) Use of latest technology
(e) Sharply improved compensation level
(f) Customer focus
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 CHAPTER 4 – PLANNING
1. DEFINIATION OF PLANNING :
Planning is the process of thinking before doing . it involves determination goals as well
as the activities to be undertaken to achieve these goals. It bridges the gap between
where we are and where we want to go. More specifically planning consist of what to
do, How to do, when to do and by whom it is to be done.
2. IMPORTANCE / BENEFITS / SIGNIFICANCE OF PLANNING (PRR PFE)
(a) Planning provides direction
(b) Planning reduces the risks of uncertainty
(c) Planning reduces overlapping and wasteful activities
(d) Planning promotes innovative ideas
(e) Planning facilitates decision making
(f) Planning establishes standards for controlling
3. LIMITATIONS/DRAWBACK/ OF PLANNING (LMR IID)
(a) Planning leads to rigidity
(b) Planning may not work in a dynamic environment
(c) Planning reduces creativity
(d) Planning involves huge costs
(f) Planning is a time consuming process
(g) Planning does not guarantee success
4. PLANNING PROCESS / STEPS / ELEMENTS (S DIES IF )
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses
(e) Selection an alternative
(f) Implementing the plan
(g) Follow up action
5. TYPE OF PLAN :-
(I) STANDING PLANS : (a) Policies (b) Methods (c) Procedures (d) Rules (PMPR)
(II) Other types of Plan : (a) Strategy (b) Objectives (SO)
(III) Single use Plan : (a) Budget (b) Programmers (BP)

6. FEATURE/CHARACTERISTIC/NATUR /ATTRIBUTES OF PLANNING (FF PP MCD)

1. Planning focuses on achieving objective
2. Planning is futuristic
3. Planning is pervasive
4. Planning is a primary function of Mgt.
5. Planning involves decision making
6. Planning is continuous
7. Planning is a mental exercise.

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 CHAPTER – 5 ORGANISING
1. DEFINITION OF ORGANISING: -
IT CAN BE DEFINED AS THE PROCESS OF IDENTIFYING AND GROUPING VARIOUS ACTIVITIES AND
BRINGING TOGETHER PHYSICAL, FINANCIAL AND HUMAN RESOURCES AND ESTABLISHING PRODUCTIVE
RELATIONSHIP AMONG THEM FOR THE ACHIEVEMENT OF SPECIFIC GOALS.

2. STEPS / PROCESS / ELEMENTS / OF ORGANISING (IDAE)

(I) IDENTIFICATION AND DIVISION OF WORK
(a) DEPARTMENTALIZATION
(b) ASSIGNMENT OF DUTIES
(c) ESTABLISHING REPORTING RELATIONSHIP:

3. IMPORTANCE / BENEFITS / SIGNIFANCE OF ORGANISING (ABCDEEO)

(A) ADAPTATION TO CHANGE
(B) BENEFITS OF SPECIALIZATION
(C) CLARITY IN WORKING RELATIONSHIPS
(D) DEVELOPMENT OF PERSONNEL
(E) EFFECTIVE ADMINISTRATION
(F) EXPANSION AND GROWTH
(G) OPTIMUM UTILIZATION OF RESOURCES
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4. ORGANISATION STRUCTURE :
IT CAN BE DEFINED AS THE FRAMEWORK WITHIN WHICH MANAGERIAL AND OPERATING TASKS ARE
PERFORMED . IT SPECIFIES THE RELATIONSHIP BETWEEN PEOPLE , WORK AND RESOURCES . IT
ALLOWS CORRELATION AND COORDINATION AMONG HUMAN, PHYSICAL AND FINANCIAL
RESOURCES AND THIS ENABLES A BUSINESS ENTERPRISE TO ACCOMPLISH DESIRED GOALS .
- SPAN OF MANAGEMENT REFERS TO THE NUMBER OF SUBORDINATES THAT CAN BE EFFECTIVELY
MANAGED BY A SUPERIOR. THIS DETERMINES THE LEVELS OF MANAGEMENT IN THE STRUCTURE

5. TYPES OF ORGANISATION STRUCTURE :

THE ORGANIZATIONAL STRUCTURE CAN BE CLASSIFIED UNDER TOW CATEGORIES WHICH ARE AS
FOLLOWS (A) FUNCTIONAL STRUCTURE AND (B). DIVISIONAL STRUCTURE

FUNCTIONAL STRUCTURE :
GROUPING OF JOBS OF SIMILAR NATURE UNDER FUNCTIONAL STRUCTURE AND ORGANIZING
THESE MAJOR FUNCTION AS SEPARATE DEPARTMENTS CREATES A FUNCTIONAL STRUCTURE. ALL
DEPARTMENTS REPORTS TO A COORDINATING HEAD.

6. ADVANTAGES OF FUNCTIONAL STRUCTURES : (FB EMI P )

(A) FUNCTIONAL SPECIALIZATION
(B) BETTER CONTROL AND COORDINATION
(C) IMPROVES EFFICIENCY
(D) MINIMIZES COST
(E) EASE IN TRAINING OF EMPLOYEES
(F) PROPER ATTENTION

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7. DISADVANTAGES OF FUNCTIONAL STRUCTURE: (FPII)
(A) FUNCTIONAL EMPIRES
(B) PROBLEMS IN COORDINATION
(C) INTER – DEPARTMENTAL CONFLICTS
(D) INFLEXIBILITY

SUITABILITY:
IT IS MOST SUITABLE WHEN THE SIZE OF THE ORGANIZATION IS LARGE, HAS A DIVERSIFIED
ACTIVITIES AND OPERATION REQUIRE A HIGH DEGREE OF SPECIALIZATION.
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8. DIVISIONAL STRUCTURE:
IN MANY LARGE DIVERSIFIED ORGANIZATION ACTIVITIES AND PERSONNEL ARE GROUPED ON THE
BASIS OF DIFFERENT PRODUCTS MANUFACTURED .

9. ADVANTAGES OF DIVISIONAL STRUCTURE (PGFE)

(A) PRODUCT SPECIALIZATION
(B) GREATER ACCOUNTABILITY
(C) FLEXIBILITY AND INITIATIVE
(D) EXPANSION AND GROWTH

10. DISADVANTAGES OF DIVISIONAL STRUCTURE : (CCI)

(A) CONFLICT
(B) COSTLY
(C) IGNORE ORGANIZATIONAL INTERESTS

SUITABILITY :
DIVISIONAL STRUCTURE IS SUITABLE FOR THOSE BUSINESS ENTERPRISE WHERE A LARGE VARIETY
OF PRODUCT ARE MANUFACTURED USING DIFFERENT PRODUCTIVE RESOURCES . WHEN AN
ORGANIZATION GROWS IT NEEDS TO ADD MORE EMPLOYEES, CREATE MORE DEPARTMENTS AND
INTRODUCE NEW LEVELS OF MANAGEMENT

11. DIFFERENCE - FUNCTIONAL AND DIVISIONAL STRUCTURE (FSR MCC)

(A) FORMATION
(B) SPECIALIZATION
(C) RESPONSIBILITY
(D) MANAGERIAL DEVELOPMENT
(E) COST
(F) COORDINATION
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12. FORMAL ORGANISATION :
IT REFERS TO THE ORGANIZATION STRUCTURE WHICH IS DESIGNED BY THE MANAGEMENT TO
ACCOMPLISH A PARTICULAR TASK.

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 FEATURES / CHARACTERSTIC / NATURE OF FORMAL ORGANISATION (RACDE)
(a) RELATIONSHIP
(b) ACHEIVMENT OF OBJECTIVE
(c) COORDINATION
(d) DESIGNED BY TOP MANAGEMENT
(e) EMPHASIS

13. ADVANTAGES OF FORMAL ORGANIZATION (FEAUP )

(A) FIXATION OF RESPONSIBILITY
(B) AVOIDING DUPLICATION OF WORK
(C) UNITY OF COMMAND
(D) EFFECTIVE ACCOMPLISHMENT OF GOALS
(E) PROVIDE STABILITY TO THE ORGANIZATION

14. LIMITATIONS OF FORMAL ORGANIZATION (DIP )

(A) DIFFICULT TO UNDERSTAND HUMAN RELATIONSHIPS
(B) INADEQUATE RECOGNITION TO CREATIVE TALENT
(C) PROCEDURAL DELAYS

15. INFORMAL ORGANIZATION:

INTERACTION AMONG PEOPLE AT WORK GIVES RISE TO A NETWORK OF SOCIAL RELATIONSHIP
AMONG THEM IS CALLED INFORMAL ORGANIZATION

FEATURES / CHARACTERSTIC / NATURE OF INFORMAL ORGANISATION (SNOBI )

(a) SPONTANEOUS
(b) ORIGINATES
(c) BEHAVIOR
(d) NO DEFINITE STRUCTURE
(e) INDEPENDENT CHANNELS OF COMMUNICATION

16. ADVANTAGES OF INFORMAL ORGANIZATION (FFF)

(A) FASTER SPREAD OF INFORMATION
(B) FULFILMENT OF SOCIAL NEEDS
(C) FILLS INADEQUACIES OF FORMAL ORGANIZATION STRUCTURE

17. DISADVANTAGES OF INFORMAL ORGANIZATION (SIR)

(A) SPREADS RUMORS
(B) RESISTANCE TO CHANGE
(C) IGNORES ORGANIZATIONAL INTEREST

18. FORMAL AND INFORMAL ORGANIZATION : A COMPARATIVE VIEW (MOAB FNL)

(A) MEANING
(B) ORIGIN
(C) AUTHORITY
(D) BEHAVIOR
(E) FLOW OF COMMUNICATION
(F) NATURE
(G) LEADERSHIP
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 19. DELEGATION OF AUTHORITY :-
DELEGATION REFERS TO THE DOWNWARD TRANSFER OF AUTHORITY FROM A SUPERIOR TO A
SUBORDINATE. DELEGATION OF AUTHORITY MERELY MEANS THE GRANTING OF AUTHORITY TO
SUBORDINATES TO OPERATE WITHIN PRESCRIBED LIMITS

20. ELEMENTS / STEPS / PROCESS OF DELEGATION OF AUTHORITY (ARP)

(A) AUTHORITY
(B) RESPONSIBILITY
(C) ACCOUNTABILITY

21. DIFFERENCE BETWEEN AUTHORITY,RESPONSIBILITY AND AUTHORITY (MDOF)

(A) MEANING
(B) DELEGATION
(C) ORIGIN
(D) FLOW

22 IMPORTANCE / BENEFITS / SIGNIFACNE OF DELEGATION : (BBM FEE)

(A) BASIS OF MANAGEMENT HIERARCHY
(B) BETTER COORDINATION
(C) MOTIVATION OF EMPLOYEES
(D) FACILITATION OF GROWTH
(E) EFFECTIVE MANAGEMENT
(F) EMPLOYEE DEVELOPMENT
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23. DECENTRALIZATION OF AUTHORITY :
DECENTRALIZATION REFER TO SYSTEMATIC DELEGATION OF AUTHORITY AT ALL LEVELS OF
MANAGEMENT AND IN ALL DEPARTMENTS OF THE ORGANIZATION FOR TAKING DECISION AND
ACTION APPROPRIATE AT THEIR RESPECTIVE LEVELS.

24. IMPORTANCE /BENEFITS / ADVANTAGES OF DECENTRALISATION OF AUTHORITY

(DDQ RFB)
(A) DEVELOPS INITIATIVE AMONG SUBORDINATES
(B) DEVELOPMENT MANAGERIAL TALENT FOR THE FUTURE
(C) QUICK DECISION MAKING
(D) RELIEF TO TOP MANAGEMENT
(E) FACILITATES GROWTH
(F) BETTER CONTROL

25. DELEGATION AND DECENTRALIZATION: A COMPARATIVE VIEW (NFSSP)

(A) NATURE
(B) FREEDOM OF ACTION
(C) STATUS
(D) SCOPE
(E) PURPOSE
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 CHAPTER – 6 STAFFING
1. DEFINITION OF STAFFING : has been described as the managerial function of
filling and keeping filled the position in the organization structure.
2. IMPORTANCE OF STAFFING (HHEI)
1. Helps in discovering and obtaining competent personnel for various jobs.
2. Ensures the continuous survival and growth of the enterprise
3. Helps to ensure optimum utilization of the human resources
4. Improves job satisfaction and morale of employees
3. STAFFING PROCESS /STEPS / ELEMENTS (ERSP ) (TPPC)
1. Estimating the manpower Requirements
(a) Workload analysis (b)Workforce analysis
2. Recruitment
3. Selection
4. Placement
5. Training and Development
6. Performance appraisal
7. Promotion and career planning
8. Compensation
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4. DEFINITION OF RECRUITMENT :
It is a positive process which aims at attracting a large number of candidates to
apply for a given job.
5. (I) SOURCES OF RECRUITMENT :
(A) INTERNAL SOURCES OF RECRUITMENT (TP)
1. Transfers
2. Promotions
(II) MERITS OF INTERNAL SOURCES OF RECRUITMENT (SLAMB)
1. Simplifies the process of selection and placement
2. Less costly
3. A tool of training
4. Motivation to employee to improve their performance
5. Benefits of shifting workforce
(III) LIMITATIONS OF INTERNAL SOURCES OF RECRUITMENT (NLS) (EC)
1. Not suitable for a new enterprise
2. Lack of competition
3. Stopping infusion of new blood
4. Effect on production and productivity
5. Conflict

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 (B) EXTERNAL SOURCES OF RECURITMENT : (CCD) (AA) (RPL) (WE)
1. Campus recruitment
2. Casual callers
3. Direct recruitment :
4. Advertising
5. Advertising on Tv
6. Recommendation of employees
7. Placement agencies and Management Consultants
8. Labor contractors
9. Web publishing
10. Employment exchange
(C) MERITS OF EXTERNAL SOURCES OF RECRUITMEN (QWFC)
1. Qualified personnel
2. Wider choice
3. Fresh talent
4. Competitive Spirit
(D) LIMITATION OD EXTERNAL SOURCES OF RECRUITMENT (LCD)
1. Dissatisfaction among existing employees
2. Costly process
3. Length process
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6. DEFINITION OF SECTION :-
it is a negative process of identifying and choosing the best persons out of a
number of candidates who have applied for the jobs.
SELECTION PROCESS / STEPS / ELEMENTS : (PSER) (SMJC)

1. Preliminary screening
2. Selection tests (IAPTI)
(a) Intelligence test
(b) Aptitude test
(c) Personality test
(d) Trade test
(e) Interest test
3. EMPLOYMENT INTERVIEW
4. REFERENCE AND BACNKGROUND CHECKS
5. SELECTION DECISION
6. MEDICAL EXAMINATION
7. JOB OFFER
8. CONTRACT OF EMPLOYMENT
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(7) DEFINITION OF TRAINING :-
it is the process by which the aptitudes , skills and abilities of the employees to perform
specific job are improved.(ASA)

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(8) IMPORTANCE / BENEFITS OF TRAINING AND DEVELOPING :
A. To the organization (SHE )(DRM)
1. Systematic learning
2. Higher profits
3. Effective response to fast changing environment
4. Develops future managers
5. Reduces absenteeism and employee turnover
6. Minimies the need of supervision

(B) TO THE EMPLOYESS (BIEMM ) :-

1. Better career
2. Increase morale of employees
3. Essential for new employees
4. More earning
5. More efficient
(9) METHODS OF TRAINING (AIIV)
1. Apprenticeship training
2. Internship training
3. Vestibule training
4. Induction training
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(10) DIFFERENCE BETWEEN -RECRUITMENT VS SELECTION (NAS)
1. Nature / Process
2. Aim Purpose
3. Sequence
(11) DIFFERENCE BETWEEN- TRAINING VS DEVELOPMENT (MUM ) (DOL)
1. Meaning
2. Use / Depth of knowledge
3. Orientation focus
4. Methods used
1. Duration / Process
2. Level of Trainees involved
(12) SATAFFING AS A PART OF HUMAN RESCOURCE MANAGEMENT (HRM)
HRM Includes many specialized activities ( RADTMHPD)
1. Recruitment
2. Analyzing job
3. Developing compensation and incentive plans
4. Training and development of employees
5. Maintaining labour relation
6. Handling grievance and complaints
7. Providing for social security and welfare of employees
8. Defending the company in law suits and avoiding legal complications.

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 CHAPTER – 7 DIRECTING
1. DEFINITION OF DIRECTING :
Directing refers to the process of instructing , guiding , motivating , leading, counseling and coaching
people in the organization to achieve its objectives.(IGMLCC)

2. FEATURES / CHARATERSTIC / NATURE OF DIRECTING ( ITCF )

1. Directing initiates action
2. Directing takes place at every level of management
3. Directing is a continuous process
4. Directing flows from top to bottom

3. IMPORTANCE / SINIFICANCE / BENEFITS OF DIFRECTING ( HHIGF)

1. Directing helps to initiate action by people in the organization
2. Directing integrates employees efforts in the organization
3. Directing guides employees to fully realise their potential
4. Directing facilitates introduction of needed changes in the organization
5. Directing helps to bring stability and balance in the organization

4. ELEMETNS /STEPS / PROCESS OF DIRECTING (SMLC)

1. Supervision
2. Motivation
3. Leadership
4. Communication
____________________________________________________________________________________
5. MOTIVATION :-
Motivation is the process of stimulating people to action to accomplish desired Goals.
Motivation depends upon satisfying needs of people.
6. MASLOW’S NEED HIERACHY THEORY OF MOTIVATION : ( B SA ES)
1. Basic physiological needs
2. Safety / Security needs
3. Affiliation / Belonging Needs
4. Esteem needs
5. Self Actualization Needs

7. FINANCIAL AND NON – FINANCIAL INCETIVES

(A) Financial incentives : T (PPPP BCR)
1. Pay and allowances
2. Productivity linked wages incentives
3. Perquisites
4. Profits sharing
5. Bonus
6. Co- Partner ship / Stock option
7. Retirement Benefits

(B) Non – Financial Incentives

1. Status
2. Organizational climates
3. Career Advancement opportunity

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 4. Job Enrichment
5. Job Security
6. Employee Recognition programmes
7. Employee participation
8. Employee Empowerment
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8. DEFINITION OF LEADERSHIP : The process of influencing people to strive willing for group objective
QUALITIES OF A GOOD LEADER : Knowledge and competence , high level of integrity
and honesty , courage and initiative good communication and motivational skills
confidence decisiveness .

9. COMPARISION BETWEEN AUTHORITATIVE, DEMOCRATIC AND LAISSEZ FAIRE LEADERSHIP

STYLES (MCD FORD)
1. Decision making
2. Motivation technique
3. Focus
4. Delegation of authority
5. Opportunity to subordinate
6. Role of leader
7. Communication
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10. COMMUNICATION :-
Communication is process by which people create and share information with one another in order
to reach common understanding Classification of formal Communication
1. Vertical communication
(a) Downward communication
(b) Upward communication
(2) Horizontal / lateral communication .

11. BARRIERS TO EFFECTIVE COMMUNICATION

The barriers to communication in the organization can be broadly grouped into four Categories
1. Semantic barriers
2. Psychological barriers
3. Organizational barriers
4. Personal barriers

12. SEMANTIC / LINGUISTIC BARRIERS (STUFBB)

Semantic barriers are concerned with problems and obstruction in the process of encoding and
decoding of message into words or impression.
1. Symbols with different meanings
2. Technical jargon
3. Unclarified assumption
4. Faulty translations
5. Badly expressed message
6. Body language and gesture decoding

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13. PSYCHOLOGICAL / EMOTIONAL BARRIIERS (PLLD)
These barriers are related at the state of mind of the both the sender and the receiver of
communication .
1. Premature evaluation
2. Lack of attention / poor listening
3. Loss by transmission and poor retention
4. Distrust

14. ORGANISATIONAL BARRIERS (SCORO)

These barriers are related to organizational structure, authority relationship, rules and regulation
1. Organizational policy
2. Rules and regulations
3. Status
4. Complexity in organization structure
5. Organisational facilities

15. PERSONAL BARRIERS (FULL)

These barriers are related to the personal factors of both the sender and the receiver of
communication
1. Fear of challenge to authority
2. Lack of confidence of superior on his / her subordinates
3. Unwillingness to communicate
4. Lack of proper incentives

16.. MEASURES TO IMPROVE COMMUNICATION EFFECTIVENESS (CCC) (BBE)

1. Clarify the ideas before communication 2. Consult others before communicating
2. Communicate according to the needs of receiver
3. Be aware of language , tone and content of message
4. Consult other before communicating
5. Be a good listener
6. Ensure proper feedback

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 CHAPTER – 8 CONTROLLING
1. DEFINITION OF CONTROLING :-
Controlling as function of management is concerned with taking the necessary
preventive and corrective action to ensure that organizational goals are achieved as
effectively and efficiently as possible .

2. STEPS / PROCESS / ELEMENTS OF CONTROLLING (SM CAT) :

(A) Setting performance standards
(B) MEASUREMENT OF ACTUAL PERFORMANCE (PSPA)
(a) Personal observation
(b) Sample checking
(c) Performance reports
(d) Accounting ratios
(C) COMPARING ACTUAL PERFORMANCE WITH STANDARDS
(D) ANALYSING DEVIATION (MC):
(a) Management by exception / control by exception
(b) Critical point control
(E) TAKING CORRECTIVE ACTION

(C) NATURE/ FEATURES/ CHARACTERSTICS /ATTRIBUTES OF CONTROLLING (PIGBC)

(a) Controlling is a pervasive function
(b) Controlling improves futures planning
(c) Controlling is a goal oriented function
(d) Controlling is both a backward looking as well as forward looking function
(e) Controlling is a continuous process.

(D) IMPORTANCE / BENEFITS /SIGNIFICANE /ADVANTAGES OF CONTROLLING (JAM EFI)

(a) Judging accuracy of standards
(b) Accomplishing organisational goals
(c) Making efficient use of resources
(d) Ensures order and discipline
(e) Facilitates coordination in action
(f) Improving employee motivation

(E) REALATIONSHIP BETWEEN PLANNING AND CONTROLLING

(a) Controlling is blind without planning
(b) Planning without controlling is meaningless
(c) Planning and controlling are both backward and forward looking
(d) Planning is an intellectual process

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 CHAPTER – 9 FINANCIAL MANAGEMENT
1. FINANCIAL MANAGEMENT : Is concerned with optimal procurement as well as the
usage of finance. For optimal procurement , different available sources of finance are
identified and compared in terms of their costs and associated risks.
2. OBJECTIVES OF FINANCIAL MANAGEMENT :
The Primary aim of financial management is to maximise shareholder’s wealth which
is referred to as the wealth maximisation concept. It means maximization of the
market value of equity shares. The market price of equity share increases , if the
benefit from a decision exceeds the cost involved.
(I) Ensuring availability of sufficient fund at a reasonable cost
(II) Ensuring effective utilization / deployment of such funds
(III) Ensuring safety of funds
(Iv) Avoiding idle finance
3. TRADING ON EQUITY / FINANCIAL LEVERAGE / CAPITAL GEARING :
The use of more debt along with equity shares in the capital structure with
a view to increase Earnings per share (EPS ) is called Trading on equity.
In other words shareholders are likely to gain if there is a debt in the capital structure
Provided the following two condition are satisfied.
(a) The rate of return on investment should be more than the rate of interest paid on
Loan.
(b) The interest paid on loan should be a tax deductible expense.
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4. FINANCIAL DECISIONS (IFD)
The Finance function is concerned with three broad decision which are explained
below :
INVESTMENT DECISION:
Investment decision can be long term or short term
long term investment decision is also called a capital budgeting decision. It
Involves committing the finance on a long – term basis. For example making
Investment in a new machine to replace and existing one or acquiring a new
Fixed asset or opening a new branch etc.
Short term investment decision (also called working capital decision are concerned
With the decisions about the levels of cash, inventory and receivables. These decision
Affect the day to day working of a business.
Factors affecting capital budgeting decision (CRI)
(a) Cash Flows of the project
(b) The rate of return
(c) Investment criteria involved

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5. Financing Decision
It involves identification of various available sources.
-The shareholders funds refer for a firm are shareholder’s funds and borrowed
funds.
The shareholders funds refer to the equity capital and the retained earnings.
- Borrowed funds refer to the finance raised through debentures or other forms of
Dept.
A firm has to decided the proportion of funds to be raised from either sources

FACTORS AFFECTING FINANCING DECISION (CCC FLRS)

(a) Cost
(b) Control considerations
(C) Cash flow position of the company
(d) Floatation cost
(e) Level of fixed operating Costs
(f) Risk
(g) Sate of capital market
6. DIVIDEND DECISION : Dividend is that portion of profit which is distributed to
shareholders. The Decision involved here is how much of the profit earned by
company (after paying tax) is to be distributed to the shareholders and how much
of it should be retained in the business .
FACTORS AFFECTING DIVIDEND DECISION : (ESSSS CCLAT G)
(a) Earnings
(b) Stability of Earning
(c) Stability of dividends
(d) Shareholder’s Preference
(e) Stock Market Reaction
(f) Cash Flow Position
(g) Contractual Constraints
(h) Legal constraints
(I) Access to capital Market
(j) Taxation Policy
(k) Growth Opportunities
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7. FINANCIAL PLANNING :
Financial planning is essentially the preparation of a financial blueprint of an
organization’s future operation.
The objective of financial planning is to ensure that enough funds are available at
the right time. Thus , Financial planning strivers to achieve the following twin
objective
(a) To ensure availability of funds whenever required
(b) To see that the firm does not raise resources unnecessarily
Financial planning is done for three to five years.

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 IMPORTANCE / BENEFITS OF FINANCIAL PLANNING (TAC RLLM)
(a) It tries to forecasting what may happen in future
(b) It helps in avoiding business shocks and surprises
(c) It helps in coordinating various business function
(d) Reduce waste , duplication of efforts and gaps in planning.
(e) it tries to link the present with the future
(f) It provides a link between investment and financing decision
(g) Makes the Evaluation of actual performance easier
8. CAPITAL STRUCTURE :
On the basis of ownership the sources of business finance can be broadly classified
into two categories viz.” Owner’s funds and borrowed funds’.
Owners’ funds consist of equity share capital , preference share capital and
reserves and surpluses or retained earnings
Borrowed funds can be in the form of loans , debentures , publics deposit etc.
Capital structure refers to the mix between owners and borrowed funds.
FACTORS AFFECTING THE CHOICE OF CAPITAL STRUCTURE (CIDR FFC SRCC TR)
(a) Cash flow position
(b) Interest coverage ratio (ICR)
(c) Debt service coverage ratio (DSCR)
(d) Return on investment (ROI)
(e) Floatation Costs
(f) Flexibility
(g) Cost of debt
(h) Cost of equity
(i) Stock market condition
(j) Risk consideration
(k) Control
(l) Capital structure of other companies
(m) Tax rate
(n) Regulatory Framework
_______________________________________________________________________
9. MANAGEMENT OF FIXED CAPITAL / CAPTIAL BUDETING
Fixed capital refers to investment in long – term assets. Management of fixed
Capital Involves allocation of firm’s capital to different project or assets with
long term Implication for the business. These decision are called investment
decision or Capital budgeting decision and affect the growth , profitability and risk
of the business in the long run.
IMPORTANCE / BENEFITS OF MANAGEMENT OF FIXED CAPITAL OR CAPITAL
BUDGETING DECISION (LLIR)
(a) Long – term growth
(b) Large amount of funds involved
(c) Irreversible decisions
(d) Risk involved

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 10. FACTORS AFFECTING THE REQURIMENT OF FIXED CAPITAL (NSCT GDFL)
(a) Nature of business
(b) Scale of operation
(c) Choice of Technique
(d) Technology Up gradation
(e) Growth prospects
(f) Diversification
(g) Financing alternatives
(h) Level of collaboration
11. WORKING CAPITAL
Current assets are usually more liquid but contribute less to the profits than
fixed assets. Examples of current assets , in order of their liquidity , are as under.
(a) Cash in hand cash in bank (b) Marketable securities (c) Bills receivable
(d) Debtors (e) Finished goods inventory (f) Work in progress
(g) Raw materials (h) Prepaid expense
Current liabilities are those payment obligation which are due for payment
Within one year: Such as bills payable , creditors , outstanding expenses and
Advances received from customer etc.
NWC = CA -CL (i.e. Current Assets – Current Liabilities )
Thus net working capital may be defined as the excess of current assets over
current
17. FACTORS AFFECTING WORKING CAPITAL REQUIREMENT (NSBS PCC GOALI)
(a) Nature of Business
(b) Scale of operations
(c) Business cycle
(d) Seasonal Factors
(e) Production cycle
(f) Credit allowed
(g) Credit availed
(h) Growth prospects
(i) Operating efficiency
(j) Availability or Raw material
(k) Level of competition
(l) Inflation
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 CHAPTER - 10 FINANCIAL MARKETS
1. FINANCIAL MARKET:
It is a market for creation and exchange of financial Assets. It helps in mobilising
of saving and channelizing the saving into the most productive uses. It also helps
in prices discovery and provides liquidity to financial assets.
It includes A. Capital Market B. Money Market
A. CAPITAL MARKET: It includes facilities and institutional arrangement through
which long term fund both debt and equity are raised and invested.
B. MONEY MARKET: It is market for short term funds which deals in monetary
assets whose period of Maturity is up to 1 years. They are close substitute for
money.

2. FUNCTION OF FINANCIAL MARKET (MRFP)

(a) Mobilising of saving and channelizing the saving into the most productive uses
(b) Reduce the cost of transaction
(c) Facilities Price discovery
(d) Provides liquidity to financial assets

3. DIFFERENCE BETWEEN - CAPITAL MARKET VS MONEY MARKET (DPII) (LSE)

(a) Duration
(b) Participants
(c) Instruments traded
(d) Investment outlay
(e) Liquidity
(f) Safety
(g) Expected Returns
4. MONEY MARKET INSTRUMENTS: (TCCCC)
(a) Treasury bill
(b) Call money
(c) Commercial Bill
(d) Commercial paper
(e) Certificate of deposit
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5. METHOD OF FLOATING NEW ISSUES IN THE PRIMARY MARKET (OOPRE)

(a) Offer through prospectus
(b) Offer for sale
(c) Private placement
(d) Right issue
(e) e- IPOs

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 6. DIFFERENCE BETWEEN- PRIMARY VS SECONDARY MARKET (SPP BCL)
(a) Securities traded
(b) Buying / selling
(c) Purpose
(d) Capital Formation
(e) Price determination
(f) Location
____________________________________________________________________________________________________
7. STOCK EXCHANGE: The stock exchange is an institution which provides a
platform for buying and selling of existing securities.
FUNCTION OF STOCK EXCHANGE: (PPP SSC)
(a) Provides liquidity and marketability of existing securities
(b) Provides scope for speculation
(c) Pricing of securities
(d) Safety of transaction
(e) Spreading of equity cult
(f) Contributes to economic growth
8. DEPOSITORY SERVICES AND DEMAT ACCOUNT:
Depository is an institution /organization which holds securities (eg. Shares,
Debentures, bonds, mutual funds ) in electronic form in which trading is done.
(a) NSDL (NATIONAL SECURITES DEPOSITORY LTD)
(b) CDSL (CENTRAL DEPOSITORY SERVICES LTD)
DEPOSITORY SERVICES:
(a) Dematerialization (usually known as Demat)
(b) Intimates the status of securities holding from time to time
(c) Maintains securities account balances
(d) Pledging / Hypothecation of dematerialized securities against bank loan
(e) Electronic settlement of trades in stock exchange
(f) Electronic transfer of securities
9. TRADING PROCEDURE ON A STOCK EXCHANGE (SOPES) (GROUP)
(a) Selection of a broker
(b) Opening Demat account with depository
(c) Placing the order
(d) Executing the order
(e) Settlement
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 10. SECURITEIS AND EXCHANGE BOARD OF INDIA (SEBI):
It was established by the govt. of India on 12 April 1988 to promote orderly and
Healthy growth of securities market and investor protection
OBJETIVES OF SEBI (PPPRR)
(a) To protect the right and interests of investors, particularly individual investors
to guide and educate them.
(b) To prevent trading malpractices like prices rigging, inside trading making
misleading Statements in prospectus etc.(PIM)
(c) To provide a market place in which the issuers can raise finances in any easy
fair and Efficient manner (EFE)
(d) To regulate stock exchange and the securities market to promote their orderly
functioning.
(e) To regulate and develop a code of conduct and fair practices by intermediaries
Like brokers, merchant bankers, etc. with a view to make them competitive and
Professional

11. FUNCTIONS OF SEBI

A. PROTECTIVE FUCNTION (PPUC)
(a) Prohibitions of fraudulent and unfair trade practices in the securities market, e.g
Prices rigging, making misleading statement in prospectus etc(PM).
(b) Promotion of fair practices and code of conduct in securities market
(c) Undertaking steps for investor’s protection
(d) Controlling insider trading and imposing penalties for such practices

B. REGULATORY FUNCTION (RRRR CL)

(a) Registration of brokers and sub brokers and other players in the market (SUM)
(b) Registration of collective investment schemes and mutual funds. (CM)
(c) Registration of stock brokers, portfolio exchange underwriters and merchant
Bankers (SUM)
(d) Regulation of takeover bids by companies
(e) Calling or information, by undertaking inspection, conducting enquiries and
audit of Stock exchange and intermediaries
(f) Levying fee or other charge for carrying out the purposes of the Act.

C. DEVELOPMENT FUNCTION (TUCI)

(a) Training of intermediaries of the securities market.
(b) Conducting research and publishing information useful to all market
participants
(c) Undertaking measures to develop the capital markets by adopting a flexible
Approach.
(d) Investor education.
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 CHAPTER – 11 MARKETING MANAGEMENT
1. CONCEPT OF MARKETING
Marketing is the process of exchange of goods and services for money or for
something of value of them.
Marketing is a social process by which individual groups obtain what they need
and want through creating offering and freely exchange products and service of
value with others”.-PHILIP KOTLER

2. FEATURES/CHARACTERSTIC/NATURE OF MARKETING (NCCE)

(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism
3. MARKETING MANAGEMENT PHILOSOPHIES / CONECPTS / ORIENTATIONS
PRODUCTION, PRODUCT, SELLING, MARKETING, SOCIETTAL MARKETING
(a) Meaning
(b) Focus
(c) Means
(d) Ends
(e) Starting Point
4. MARKETING MIX
“Marketing mix is the set of marketing tools that the firm used to pursue its
marketing objectives in the target market”.
(a) Product Mix – Branding, Packaging, Labelling
(b) Price Mix – (PPTGEM)
(c) Promotion Mix – Advertising , Personal selling, Sales promotion, Public relation
(d) Place or Physical distribution – Transportation, Order processing, Warehousing,
inventory control
5. FUNCTION OF MARKTING / MARKETING ACTIVITIES: GM) ( PPPPP) (BCS)
(a) Gathering and analyzing market information
(b) Marketing planning
(c) Product designing and development
(d) Standardisation and grading
(e) Packaging and labeling
(f) Branding
(g) Pricing of products
(h) Physical distribution
(i) Promotion
(j) Customer support services

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 6. BRANDING: -
Generic name refers to the name of the class of the product e.g. shoes, Pen, Car,
television, etc. Branding is the process of giving a name or a sign or a symbol, etc.
to a product.
7. VARIOUS TERMS RELATING TO BRANDING:
(a) Brand:
A brand is a name, term sign, Symbol, design or some combination of them, used
to identify the products of one firm and to different them from those of the
competitors. Brand is a comprehensive term, which has two components-brand
name and brand mark.
(b) Brand name- That part of a brand which can be spoken is called a brand name.
For example , Asain paints, Maggie are brand names.
(c) Brand mark – That part of a brand which can be recognized is called brand mark.
(d) Trade mark - A brand on part of a brand that is given legal protection against
Its use by other firm is called trade mark.

8. ADVANTAGE OF BRANDING
(I) TO THE MARKETERS: (HEED)
(a) Helps in advertising and display programmes
(b) Enables making product differentiation
(c) Ease in introduction of new production
(d) Differential pricing
(II) TO THE CUSTOMERS (SHE)
(a) Status symbols
(b) Helps in product identification
(c) Ensures quality
9. CHARACTERISTICS OF GOOD BRAND NAME (SSSSAD)
(a) Short
(b) Suggestive
(c) Staying power
(d) Sufficiently versatile
(e) Adaptable to packing or labeling requirements
(f) Distinctive
10. PACKAGING:
Packaging refers to the act of designing and producing the container or wrapper of
a product.
(I) LEVELS OF PACKAGING :(PST)
(a) Primary package
(b) Secondary package
(c) Transportation package

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 11. FUNCTION OF PACKAGING –(PPPF )
(a) Production identification
(b) Product Protection
(c) Product promotion
(d) Facilitating use of the product

12. IMPORTANCE OF PACKAGING (SIR P)

(a) Rising standards of health and sanitation
(b) Self service Outlets
(c) Product Differentiation
(d) Innovational Opportunity

13. LABELLING – REFERS TO DESIGNING THE LABLE TO BE PUT ON THE PACKAGE

FUNCTION OF LABELLING (DIGPH)
(a) Describe the product and specify its contents
(b) Identification of the product or brand
(c) Grading of product
(d) Providing information required by law
(e) Help in promotion of product
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14. PRICE MIX - FACTORS AFFECTING PRICE DETERMINATION (PPT GEM)
1. PRICING OBJECTIVES: Pricing objectives of a firm may include(SOAP)
(a) Profit maximization
(b) Obtaining market share leadership
(c) Surviving in a competitive market
(d) Attaining product quality leadership
2. Product Cost
3. Extent of competition in the market
4. The utility and demand
5. Government and legal regulation
6. Marketing methods used
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15. TYPES OF CHANNELS OF DISTRIBUTION

(a) Direction channel (zero level)
(b) Indirect channels
(i) One Levels Channels
(ii) Two Levels channels
(iii) Three level channels
16. COMPONENTS OF PHYSICAL DISTRIBUTION (TOIW)
(a) Transportation
(b) Order processing
(c) Inventory Control
(d) Warehousing
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 17. PROMOTION MIX
DEFINITION OF ADVERSTISING:” Advertising is any paid form of non-personal
Presentation and promotion of ideas, goods or services by an identified sponsor

18. FEATURES OF ADVERTISING (PII)

(a) Paid form
(b) Impersonal method of promotion
(c) Identified sponsor

19. BENEFITS / ADVANTAGES / MERITS OF ADVERTISING (MEEEHHG)

(a) Mass reach
(b) Expressiveness
(c) Enhancing customer satisfaction and confidence
(d) Economy
(e) Help in introduction of new products
(f) Help in educating consumer and making shopping easier
(g) Growth of the economy

20. CONCEPT OF SALES PROMOTION:

Sales promotion refers to short term incentives which are designed to encourage the
Buyers to make immediate purchase of a product or service. e.g discount, contest
Free samples offering extra quantity etc.

21. PUBLIC RELATION - Public relation involve a variety of programmes to protect and
protect a company’s images and its individual products in the eyes of the Public.
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 CHAPTER 12 – CONSUMER PROTECTION
1. MEANING OF ‘CONSUMER’
A consumer is generally understood as a person who uses or consumes goods or avails
of any services. Under the Consumer Protection Act, 1986, a consumer is defined as:
1. Any person who buys any goods for a consideration, which has been paid or promised,
or partly paid and partly promised, or under any scheme of deferred payment. It
includes any user of such goods, when such use is made with the approval of the
buyer, but does not include a person who obtains goods for re-sale or any commercial
purpose.
2. Any person who hires or avails of any service for a consideration which has been paid
or promised, or partly paid and partly promised, or under any system or deferred
payment. It includes any beneficiary of services when such services are availed of with
the approval of the person concerned but does not include a person who avails of such
services for any commercial purposes.
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2. AGAINST WHOM A COMPLAINT CAN BE FILED
Thus, a complaint can be filed against:
1. The seller manufacturer or dealer of goods which are defective. ‘Defect’ means any
fault, imperfection or shortcoming in the quantity, or purity of goods.
2. The provider of services if they are deficient in any manager, ‘Deficiency’ means any
imperfection, shortcoming or inadequacy in the quality, nature and manner of
performance of services.
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3. CONSUMER RIGHTS (SS)(CC)(IH)
1. Right to safety:
2. Right to be informed.
3. Right to Choose.
4. Right to be Heard.
5. Right to seek Redresssal
6. Right to Consumer Education
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4. WHO CAN FILE A COMPLAINT UNDER THE CONSUMER PROTECTION ACT, 1986
1. Any consumer;
2. Any registered consumer’s association;
3. The Central Government or any State Government;
4. One or more consumers on behalf of numerous consumers having the same interest;
5. A legal heir or representative of a deceased consumer.
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5. CONSUMER RESPONSIBILTIES (BBB RR LOAF)
1. Buy only standardized goods as they provide quality assurance
2. Be honest in his/ her dealings
3. Be aware about various goods and services available in the market
4. Read labels carefully
5. Respect the environment
6. Learn about the risks associated with products and services
7. Organize themselves in the form of consumer associations
8. Ask for a cash memo on purchase of goods and services
9. File a complaint in an appropriate consumer court
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6. CONSUMER RESPONSIBILITIESROLE OF CONSUMER ORGANISATIONS AND

NGO - Important Consumers Organization and NGOs in India
1. Consumer Coordination Council, Delhi
2. Consumer Protection Council, Ahemdabad.
3. Consumer’s Association, Kolkata
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7. ROLE AND FUNCTIONS OF CONSUMER ORGANSATION AND NGOs

(EEPP) (FFC)
1. Educating the general public about consumer rights
2. Encouraging consumers to strongly protest
3. Providing legal assistance of consumers
4. Publishing periodicals and other publication to impart knowledge
5. Filling complaints in appropriate consumer court on behalf of consumer
6. Filing case in consumer courts on behalf of general public interest
7. Carrying out comparative testing of consumer products in accredited laboratories
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8. REMEDIES / RELIEF AVAILABLE TO A CONSUMER (RRR PD NWC PIP)
1. Remove the defect in goods or deficiency in services
2. Replace the defective products with new one
3. Refund the prices paid for the product
4. Pay a reasonable amount of compensation
5. Discontinue the exploitative / unfair trade practice
6. Not to offer hazardous good for sale.
7. Withdraw the hazardous good for sale.
8. Cease manufacture of hazardous goods
9. Pay any amount not less than 5% of the value of the defective goods or deficient
Service provided) to be credited to the consumer Welfare fund
10. Issue corrective advertisement
11. Pay adequate costs to the appropriate party.

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9. MEANING OF COMPLAINT/UNDER WHAT CIRCUMSTANCE A COMPLAINT CAN BE FILED
A ‘Complaint means any allegation made by complainant that:
1. An unfair trade practice has been adopted by a trader or manufacture, e.g. offered
goods hazardous to life and health
2. The goods bought suffer from any defect
3. The services hired suffer from any deficiency
4. A trader has charged for goods a price in excess of the prices displayed on the
label/Package
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10. WITHIN WHAT PERIOD A COMPLAINT MUST BE FILED

The complaint must be filed within 2 years from the day of course of action.
Three tier redressal machinery
1. District consumer Dispute Redressal Forums (briefly referred to as District Forums)
2. State consumer Dispute Redressal Commission (State Commission)
3. The National Consumer Disputes Redressal Commission (National Commission
It is required that every complaint must be disposed off as speedily as possible and
Within 3 months or , if the complaint requires analysis or testing of goods within 5
months.
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11. IMPORTANCE OF CONSUMER PROTECTION (IMP)

A) FROM CONSUMER’S POINT OF VIEW (CUW)
1. Consumer ignorance:
2. Unorganized Consumers:
3. Widespread exploitation of Consumers

B) FROM THE POINT OF VIEW OF BUSINESS (LG) (SMB)

1. Long term interest of business:
2. Government of Intervention:
3. Social responsibility:
4. Moral justification:
5. Business uses society’s resources
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 12.THREE TIER REDRESSAL MACHINERY

DISTRICT FORUM STATE COMMISION NATIONAL COMMISION

1.District forums are set up in 1. The state commission are set 1. The National Commission
Each district by the state up in each state by the set up by the central
government concerned (SET UP) state government government
concerned
2. The district forum consists of a 2. Each state commission 2. The National Commission
president and two other members consists of a president and consists of a president and
, one of whom should be a women not less than two other at least four other
. They all are appointed by the members one of whom members one of whom
state Govt. Concerned should be a woman. They should be a woman. They
are appointed by the state are appointed by the
(MEMBER ) govt. Concerned. central Govt.
3. A complaint can be made to the 3. A complaint can be made 3. A Complaint can be made
appropriate district Forum when to the appropriate state to the National
the value of the goods or services commission when the Commission when the
in question along with the value of the goods or value of the goods or
compensation claimed ,does note services in question, along services in question along
exceed 20 lakhs with the compensation with the compensation
(COMPENSATION) claimed exceed 20 lakhs claimed exceeds 1 crore
but does not exceed 1
crore
4. On receiving the complaint 4. On receiving the complaint 4. One receiving the
The District forum shall refer the state commission shall compliant to the party
the complaint to the party refer the complaint top against whom the
against whom the complaint is the party against whom complaint is field. If
filed . If required the goods or a the complaint is filed . if required the foods or a
sample there of shall be sent for required the goods or a sample thereof shall be
testing in a laboratory sample there of shall be sent for testing in a
sent for testing in a laboratory .
(COMPLAINT) laboratory.
5. The district forum shall pass an 5. The state Commission Shall 5. The National order
order after considering the test pass an order after commission shall pass an
report the form the laboratory considering the test report after considering the test
and hearing the party against form the laboratory and report the forum the
whom the complaint is filed hearing the party against laboratory and hearing the
whom the complaint is party against whom the
(ORDER) filed complaint is filled
6. In case the aggrieved party 6. In case the aggrieved party 6. Only those appeals
Is not satisfied with the order of is not satisfied with the appeal where the value of
the district forum , he/she can order of the state goods and service in
appeal before the state commission commission he/ she can question along with the
within 30 days of the passing of the appeal before the national compensation claimed
order commission with in 30 exceeded 1 crore and
days of the passing of the where the aggrieved party
(APPEAL) order was not satisfied with the
order national commission
can go to supreme court

PREPARED BY NARENDRA SIR: 9911222247, 9811222258.