isbe -a iipm - iind semester - ss 2010 -12 course ware

ISBE-A & IIPM (SS 2010 -12)PGP_II_SEMESTER

PROGRAMME STRUCTURE FOR

ISBE - A & IIPM

S No Subject Credit

1. Operations Research & Decision Models 3

2. Consumer Behaviour 2

3. OB & HRD 2

4. Financial Management 2

5. Welfare Economics & CES 2

6. Advertising Management & IMC 3

7. Sales Management 2

8. Product & Brand Management 2

9. Management Information System & KM 2

10. Economics for Managerial Decision Making – II

2

11. Executive Communication 2

12. National Economic Planning 2

13. Global Economics & International Planning 2

14. Macro Economics 2


OPERATIONS RESEARCH & DECISION MODELS

COURSE DURATION: 3 HRS PER WEEK FOR 12 WEEKSCOURSE CREDITS: 03

1. OPERATIONS RESEARCH (3 HRS) Meaning and scope Relevance of O.R. techniques for solving business problems in the fields of

marketing, production, HR, and Finance (concrete examples)

2. DYNAMIC PROGRAMMING (3 HRS) Deterministic dynamic programming Selected applications of dynamic programming

3. INTEGER PROGRAMMING (3 HRS) Cutting plane algorithm Integer programming model

4. INVENTORY MODELS (3 HRS) Deterministic models Economic order quantity Permissible strategies

5. SUPERVISING MODELS (SEQUENCING) (3 HRS) Simple case of two machines and their allocation through graphical techniques

6. REPLACEMENT MODEL (2 HRS) 7. DECISION THEORY (4 HRS)

Decision making and the parameters involved, including probabilistic situations Decision making under certainty, risk and uncertainty; criteria for decision making

under each Expected monetary value as an aid to decision making Decision tree and its managerial application

8. GAME THEORY (4 HRS) Business games and strategies adopted by players Game matrix Pure strategies and saddle point Mixed strategies Dominance theory and linear programming as tools for determining outcomes Application of game theory for pricing advertising and similar managerial decisions

9. ASSIGNMENT PROBLEM (2 HRS) Job opportunity cost and its resolution Applications of assignment models for solving business issues


10. TRANSPORTATION PROBLEM (3 HRS) Transportation problems and their solutions using LCM, NWCM, Vogel’s method Transportation problem and optimum solutions through stepping stone method and

modified distribution method Special cases of demand/supply inequality, degeneracy, etc. Application of transportation models in marketing management.

11. CRITICAL PATH METHOD AND PROGRAM EVALUATION AND REVIEW TECHNIQUES (6 HRS)

Monitoring and control of time and project cost using critical path ;float of activities(total, free and independent float);estimation of time of completion/duration

of project Variance analysis for estimating probability of project completion in scheduled time Midcourse correction and crashing of duration of activities ;arresting delays; optimal

time cost trade off Resource and manpower allocation and leveling to match the required schedules of

project.

BASIC TEXTS ANDERSON, SWEENEY, WILLIAMS: An Introduction to Management Science

(South Western: 2005) only relevant chapters J.K. SHARMA: Operations Research (Macmillan:2008): Relevant chapters

CONSUMER BEHAVIOR



1. FOUNDATIONS OF CONSUMER BEHAVIOR (2 HRS) Customer oriented Marketing Consumer Buying Behavior & Decision Making Models

- Influences on buying behavior- Consumer buying and consumption process- Consumer decision making models

Researching the Consumer

2. PERSONAL FACTORS (2 HRS) Demographics: Age, gender, occupation, education Economic status and logic Needs and motivation Level of involvement and kind of decision making Psychographics: Personality, lifestyle and self concept

3. INTERPERSONAL FACTORS (6 HRS) Culture, subculture and value system Social Group Influences

Social classReference groups and opinion leadersFamily and FLCRole and status

Interpersonal factors and symbolic consumption

4. ENVIRONMENTAL FACTORS (2 HRS) Product offerings and innovations Time, place and other factors Public policy issues

5. INFORMATION RECEIPT, PROCESSING AND OUTCOMES (6 HRS) Stimulus, Exposure and Attention Encoding and decoding of message processing: Ability, opportunity and willingness

to process information Outcomes of Processing: Comprehension

- Perception- Learning and comprehension- Belief- Attitude formation- Memory and retrieval- Habit formation

Adoption and Diffusion of Innovation

6. PURCHASE, CONSUMPTION AND POST-PURCHASE BEHAVIOR (3 HRS) Problem recognition, types of problems and types of decisions


Information search Evaluation of alternatives Choice making and purchase decision Consumption and post consumption behavior:

- Consumption and post consumption response- Consumer care, satisfaction and loyalty

7. INDIAN CONSUMING CLASSES (3 HRS) Indian Market Demographics

- Economic groupings- Regional clusters- Age cohorts- Gender divides- Population density based segments

Market Segmentation

(Note: The marketing faculty must deal with this section exclusively)

BASIC TEXT BATRA & KAZMI: Consumer Behaviour (Excel: Latest Edition) RAMA BIJAPURKAR: We are Like That Only (Penguin Books India: Paperback

2009) BUSINESSWORLD: Marketing White book (BW: Latest Edition)

O.B. & HRD

COURSE DURATION: 2 HRS PER WEEK FOR 12 WEEKS


COURSE CREDITS: 02

SECTION-A: ORGANISATIONAL BEHAVIOUR(WEIGHTAGE: 16 HRS)

1. COMMUNICATION IN ORGANIZATION (2 HRS) Definition, components, process Methods, channels, and networks Barriers to communication Persuasive communication Transactional analysis

2. GROUP DYNAMICS (2 HRS) Meaning, types, and functions Models of group development Processes, roles, and cohesiveness Effectiveness and management Groups to teams

3. LEADERSHIP (2HRS) Leadership and management Perspectives on leadership: Trait, behavioural, and contingency Transactional vs. transformational leadership vs. charismatic leadership Leaders and mentorship

4. CONFLICT MANAGEMENT & NEGOTIATION (2 HRS) Meaning, types, and stages of conflict Attitudes towards conflict Sources of conflict Conflict management Negotiation process

5. POWER AND POLITICAL BEHAVIOUR (2 HRS) Power and control issues Sources of power Approaches to understanding power in organization Bases of power Organizational politics Conditions for the use of power and politics Power tactics

6. ORGANIZATIONAL CULTURE (2 HRS) Meaning and elements; types Functions of organizational culture Approaches to describing organizational culture Managing organizational culture Changing organizational culture


7. ORGANIZATIONAL CHANGE – 1: UNDERSTANDING IT (2 HRS) Meaning; importance; determinants Planned internal change Planned external change Unplanned internal change Unplanned external change

8. ORGANIZATIONAL CHANGE – 2: PLANNING IT (2 HRS) Meaning and characteristics of effective change program Models of planned charge Change and transition management: Effect; reactions; overcoming resistance

SECTION –B: HUMAN RESOURCES DEVELOPMENT(WEIGHTAGE: 8 HRS)

9. ROLE ANALYSIS (2 HRS) Meaning of task, job, position, role and work; match between role and man :selection

procedure and assessment centre approach

6. SOCIALISATION (1 HR) Objectives; methods; mentoring

7. DEVELOPMENT OF ROLES (1 HR) Performance and potential appraisal: Objective; components ;process

8. COUNSELLING AND FEEDBACK (2 HRS) Objectives; review of individuals and groups; effective counseling: conditions and

process

9. ADVANCEMENT AND DEVELOPMENT OF HUMAN RESOURCES (2 HRS) Career planning and development; training programme; job enrichment; role efficacy

(Important Note: The students might have been taught some of the above topics in the course on management of Trimester I. Such topics can be ignored for teaching purposes, though not for examination)

BASIC TEXT JERALD GREENBERG & ROBERT BARON: Behaviour in Organizations

(Pearson: Education: 2009) KAVITA SINGH: Organizational Behaviour(Pearson: 2010) Chs 8,9,10,11,14,15,16

,17 SANTOSH GUPTA & SACHIN GUPTA: Human Resource Development concepts

and practices(deep & deep)


FINANCIAL MANAGEMENT


1. NATURE AND SCOPE OF FINANCIAL MANAGEMENT (3 HRS)


Meaning, nature and scope; finance functions; job of a finance manager; organization of function.

Financial goal of a business: profit v/s wealth maximization; implications; conflict of goals among various stakeholders

Concept of time value: Concepts of discounting, compounding, present value, future value; methods of estimation.

2. EQUITY VALUATION (6 HRS) Concepts of equity and its valuation Beta estimation and cost of equity Cost of capital: Dividend growth v/s CAPM; WACC

3. CAPITAL BUDGETING & CASHFLOW INVESTMENT ANALYSIS (5 HRS) Investment decisions: nature; criteria for evaluation Methods of evaluation: NPV, IRR, PI, ARR; their relative superiority and

shortcomings Cash flow v/s profit; components of cash flow Incremental approach for cash flow estimation Depreciation: concept; tax treatment of depreciation

4. OPERATING LEVERAGE AND CAPITAL STRUCTURE (4 HRS) Financial and combined leverage; impact of leverage on risk taking Planning an optimum capital structure: Capital structure determination theories; net

income approach; net operating income approach; Modigliani-Miller approach; designing capital structure

5. WORKING CAPITAL MANAGEMENT (6 HRS) Concept and planning for working capital; financing of working capital; approaches

for determining the financing mix; management of inventory, receivables, and cash.

BASIC TEXT I. M. PANDEY: Financial Management (Vikas: 2010)

WELFARE ECONOMICS & COMPARATIVE ECONOMIC SYSTEM


SECTION – A: WELFARE ECONOMICS(WEIGHTAGE: 12 HRS)


1. MACRO PERSPECTIVE ON ECONOMY (2 HRS) Interdependencies and the general equilibrium approach The Walrasian system The Neo – Classical excess demand approach

2. SOCIAL WELFARE CRITERIA (3 HRS) GNP and economic welfare Cardinalist, Pareto, Kaldor – Hicks, and the Bergsen criteria for social welfare Maximization of social welfare

3. MARKET ECONOMY AND SOCIAL WELFARE – 1 (3 HRS) Perfect competition and welfare maximization: Myths and realities Cases of market failure and loss of social welfare

4. MARKET ECONOMY AND SOCIAL WELFARE – 2 (4 HRS) Market regulations and working of regulators Regulations in India and real situation Reduction in Welfare compromising policies, processes, and institutions. Govt. and Welfare enhancement schemes

(Note: The theoretical part of topics 3 and 4 shall be covered in paper on EMDM; hence the teaching can be skipped. The faculty must concentrate on Indian context and its teachings)

SECTION – B: COMPARATIVE ECONOMIC SYSTEM(WEIGHTAGE: 12 HRS)

5. ECONOMIC SYSTEMS: AN INTRODUCTION (2 HRS) Basic Concepts: Factors of production (labour and capital) and their organization; mode

of production. Meaning of economic systems; basis of classification; alternative economic systems.

6. CAPITALISM (5 HRS) Genesis, nature, and logic of capitalism Institutions of capitalism: Markets, price mechanism; innovation; their interaction. Historical evolution of capitalism: Laissez faire-competition-monopoly capitalism-

transnational corporations- globalized operations. Culmination of capitalism into Imperialism Role of state: Planner, entrepreneur, facilitator, regulator; their effectiveness.

7. SOCIALISM (3 HRS) Marxian interpretation: Destruction of Capitalism and arrival of socialism and

communication. Institutions of socialism: Visible hand of planning; presence of of market with limited

functioning; role of price mechanism. Failure and collapse of socialism: Case study of U.S.S.R; recent developments in Cuba

8. ALTERNATIVE PATHS AMONG DEVELOPING ECONOMIES (2 HRS) India: The Mixed Economy


China: Socialist Market Economy

BASIC TEXTS:

KOUTSOYANNIS: Modern Microeconomics (Macmillan: 2nd Edition) Chs 23, 24 SAMPAT MUKHERJEE: Analytical Microeconomics (Relevant pages already

provided) ECONOMIC SURVEY: (Govt. of India, Ministry of Finance: Latest year) Chs on

Welfare Schemes K.K. SEN: Comparative Economic Systems (Sultan Chand and Sons: 4th Edition)

Relevant Chapters IVON PING: Managerial Economics(Blackwell: 2001): Chs on Efficiency,

Externality, Market Failure, etc.

ADVERTISING MANAGEMENT AND INTEGRATED MARKETING COMMUNICATION (IMC)


1. INTEGRATED MARKETING COMMUNICATION: BASICS (3 HRS) Overview of the IMC and the Marcom process Challenges of Marcom: Brand equity enhancement, influencing behaviour; other

goals


2. FUNDAMENTAL MARCOM DECISIONS (5 HRS)

Targeting and positioning Objectives setting Budgeting the marketing communication

3. ADVERTISING MANAGEMENT (18 HRS) Objective setting Overview: Message, media, and measurement Creating effective and creative messages Selecting Message appeals and picking endorsers Assessing ad message effectiveness Planning for and analyzing advertising media:- Traditional Media- New Media

4. PROMOTION AND OTHER TOOLS (5 HRS) Sales promotion and trade promotions Consumer oriented promotions: Sampling, couponing, premiums, etc. Marketing oriented P.R and sponsorships

5. MARCOM AND OTHER TOOLS (5 HRS) Facilitation of product adoption, brand naming, and packaging On and off premises signals Point of purchase communications Exhibition and event management

BASIC TEXT: CLOW & BAACK: Integrated Advertising, promotion, and marketing (EEE:

Latest edition). BATRA & KAZMI: Advertising and promotion (Excel: Latest Edition)

SALES MANAGEMENT


1. OVERVIEW OF SALES MANAGEMENT (4 HRS) Marketing and sales: Meaning and linkages; selling, salesmanship and personal

selling : Comparison and contrasts; myths about selling ;characteristics of a sales job Selling theories; buyer-seller dyads Personal selling:

- Types of selling jobs (development, maintenance); sales force objectives


- Sales force strategies: Market access; account relationship - Theories of personal selling - Approaches to personal selling: stimulus response approach, need satisfaction

approach, problem situation approach- Process of personal selling :Prospecting , preapproach ,approach, presentation

,handling objectives/resistance, close, post sales follow up

2. PLANNING THE SALES EFFORT -1: SALES PLANNING (2 HRS) Need for planning; sales manager as planner Sales planning process: Selling objectives, determining operations to meet

objectives , organizing for action, implementing ,measurement of results ,reevaluating and control

Unsuccessful sales planning and reasons thereof (viz, absence of proper planning ,lack of systematic communication ,absence of sales force involvement ..)

3. PLANNING THE SALES EFFORT - 2: SALES BUDGET (2 HRS) Purpose, benefits, and principles of setting sales budget Various types of sales budgets :sales, expenses, administrative ,profit budgets Methods of budgeting for sales force Requirements for successful budgeting Developing a sales budget ,from situation analysis till actual preparation

4. PLANNING THE SALES EFFORT - 3: SALES POTENTIAL AND FORECAST (3 HRS)

Market potential and assessment: importance ,need and analysis of potential Sales forecasts: Significance, qualitative methods , quantitative methods Selection of a forecast method for accuracy and effectiveness Difficulties associated with forecasting

5. PLANNING THE SALES EFFORT - 4: SALES QUOTA (1 HR) Purpose and importance ;characteristics of a good sales quota Types of sales quota Methods of setting sales quota Administering sales quota

6. PLANNING THE SALES EFFORT - 5: SALES AND COST ANALYSIS (2 HRS) Sales controls: Objectives; process and difficulties Sales analysis: Steps, problems in analysis, sales audits Cost analysis :Types ;procedure Marketing audit: Meaning; procedure; components

7. ORGANISING AND DIRECTING THE SALES EFFORT -1: HIRING AND TRAINING (2 HRS)

Recruitment: Setting requirements; selection process (upto making offer) Sales training :Importance; types :initial ,follow up Kinds: Manufacturer to distributor’s sales force ;manufacturer to customer Sales training: Designing a program ;implementation; evaluation


8. ORGANISING AND DIRECTING - 2: TIME AND TERRITORY MANAGEMENT (2 HRS)

Importance of time management Territory management :Importance; criteria for territory design ;methods for design ; procedure for developing territories ; assigning sales force Operating territory management :Routing ;scheduling

9. ORGANISING AND DIRECTING - 3: COMPENSATING (2 HRS) Compensation plans and their purpose ;characteristics ;types Designing of compensation plan Implementation of plan

10. ORGANISING AND DIRECTING - 4: MOTIVATING (2 HRS) Concept and theories of motivation ;link between motivation and productivity Motivating the sales force at different stages of their career ,right upto disengagement

stage

11. ORGANISING AND DIRECTING - 5: LEADING (1 HR) Leadership: Characteristics of an effective sales team leader Leadership styles Skills needed foe effective leadership

12. CONTROLLING THE EFFORT: EVALUATION (1 HR) Performance and its determinants Performance evaluation :Why, who, when, how to evaluate Monitoring and reviewing performance

BASIC TEXTS S L GUPTA: Sales & Distribution Management (Excel: Latest Edition) R. VENUGOPAL: Sales Management (Response Books: Latest Edition)

PRODUCT AND BRAND MANAGEMENT


SECTION – A: PRODUCT MANAGEMENT

1. PRODUCT PLANNING & MANAGEMENT (12 HRS) Product planning, development, and launch: Introduction Product development: Strategy and process Opportunity identification


Concept generation Concept evaluation Technical development Market planning Commercialization and launch

SECTION – B: BRAND MANAGEMENT

2. BRAND MANAGEMENT (12 HRS) Brands and brand management Brand equity, positioning, and values Building brand equity through brand elements Building brand equity through marketing tactics Building brand equity through leveraging brand associations Designing and implementing branding strategies Brand extension; multiple branding strategy

BASIC TEXTS: KENNETH P. KAHN: New Product Planning (Response: 2001) chs. 1,2,4,5,6,7,8,9 KEVIN LANE KELLER: Strategic Brand Management (Pearson: 2nd Edition) Chs.

1,2,3,4,5, 7,11,12

MANAGEMENT INFORMATION SYSTEM & KM


SECTION-A: MANAGEMENT INFORMATION SYSTEM(WEIGHTAGE: 12 HRS)

1. CONCEPT, ROLE AND COMPONENTS OF MIS (4 HRS) Concept of information system and information flow; role and importance of

information systems in management process; strategic role of I.T. in M.I.S ; information systems for competitive advantage


Components of MIS: Design and maintenance of M.I.S and Decision support systems ;development and implementation of MIS :systems analysis and design ;alternative application developments, financing issues (basic idea)

BPR: Concept; role of I.T. for BPR ERP: Meaning; importance; applications; enterprise management systems (basic idea

Only) 2. INFORMATION SYSTEM: THE HARDWARE & THE SOFTWARE (2 HRS)

Computer: Machine, types and components Hardware standards; acquisition of hardware :selection criteria and other

considerations Information system - the software:

- Programming :Meaning, types; programming languages- Systems and application soft wares- Processing of information

3. DBMS (2 HRS) Data hierarchy: field, record, file, database; models and main components of DBMS ;

RDBMS; processing through DBMS

4. APPLICATIONS OF MIS (4 HRS) Applications in functional areas: Manufacturing, production, materials, personnel,

finance, marketing, etc.

(Note: The faculty must deal with this section exclusively; the end term examination will have applications based questions)

SECTION-B: KNOWLEDGE MANAGEMENT(WEIGHTAGE: 12 HRS)

5. BASICS OF KNOWLEDGE MANAGEMENT (2 HRS) Concept: Data, information and knowledge; knowledge types; knowledge cycle;

benefits

6. KNOWLEDGE MANAGEMENT: STRATEGIC DIMENSIONS (3 HRS) Knowledge value proposition; capturing knowledge ;using knowledge ;leveraging

knowledge ;capital for competitive advantage Creation and codification of knowledge; architecture of knowledge systems

7. KNOWLEDGE MANAGEMENT AND TECHNOLOGY SUPPORT (4 HRS) Role of I T in knowledge management Data capturing, mining and warehousing; processing and sharing of knowledge using

I T

8. LEARNING ORGANISATIONS (3 HRS) Concept of a learning organization and relevance of KM


(Note: The paper will be taught with the help of Indian case studies using KM successfully, both from manufacturing and service sector. End term examination paper will have case based questions.)

BASIC TEXTS AVADH GHAZIRI: Knowledge Management (Pearson Education) LAUDON AND LAUDON: Management Information System (Pearson Education) MARY SUMMER & ROBERT SCHULTHEIS: MIS – A Managers View (TMH:

Latest Edition)

ECONOMICS FOR MANAGERIAL DECISION MAKING - II


1. INTRODUCTION (2 HRS) Economics And Managerial Decision Making

- Managerial decision making under perfect information, risky and uncertain situations.

- Economics: Scope of economics; economics as a tool for decision making.- Managerial Economics: Definition and scope; distinction between economics

and managerial eco.


2. CONSUMER DECISION MAKING (4 HRS) Demand Side Of The Market

- Factors influencing demand; managerial implications.- Demand elasticities and lessons for a manager.- Demand estimation and fore casting: Basic methods.

Logic of Buying And Consumption- Conventional explanation for consumer behavior: Review- Attributes approach for explaining consumer choices

3. ECONOMICS OF SUPPLY AND PRODUCTION (3 HRS) Supply Side of The Market

- Factors determining after of a supplier.- Supply elasticities and lessons for a manager.

Production: Conceptual Framework- Production concepts: review- Cost concepts; their role in decision making; incrementation; engineering cost

curves.- Economies and diseconomies in production and supply.

4. PRICING DECISIONS AND IMPLEMENTATION (12 HRS) Alternative Paradigms Of Decision Making By A Firm

- The neoclassical model of firm: revenue, equilibrium, and profit positions.- Boumols’s sales revenue maximization model.- Behavioral approach of Cyert and March.- Marris’ model of managerial enterprise.

Various Market Models And Market Power- Market classification based on number of players and extent of competition;

contestable markets.- Power of the marketer regarding price setting in each of the situations.

Pricing Decisions And Implementations-1: Price Determination- Pricing decisions when competitors would not react.- Pricing under mutual dependence conditions- Pricing for attaining long term objectives.

Pricing Decisions And Implementation-2: Specific Models Of Pricing- Situation of multiplant operations- Cartelization- Price discrimination- Transfer pricing

Pricing Decisions And Implementation-3: Decisions In Practice- Pricing under uncertainty.- Rule of thumb pricing.- Mark up pricing.- Product line pricing.- Price as quality indicator.- Pricing of product bundles- Promotional pricing.

Pricing Decisions And Implementation-4: New Product Pricing- Setting the initial price.


- Adjusting price overtime

5. PRICING IN A REGULATORY FRAMEWORK (3 HRS) Market Failures And Price Regulations

- Market failures and need for regulation.- Regulations and market structure, firm behavior etc.- Price regulation

Important Note: Treatment shall be nonmathematical and applications oriented. Teaching shall be

case/real life situations based. End term examination will have application based questions.

Topics already covered under EMDM -1 may be skipped and discussion should be carried forward from where it was concluded in EMDM – I course.

BASIC TEXTS IVON PING: Managerial Economics (Blackwell Publishers) All chapters except

Ch.6 and 10 D N SENGUPTA AND ANINDYA SEN: Economics of Business Policy (OUP)

Chs.4,5,6,7,14 & 15

NATIONAL ECONOMIC PLANNING (NEP-I)


1. DEVELOPMENT OF INDIAN ECONOMY (10 HRS) Economic development and underdevelopment: Basic concepts Human development Ecological environment and development: Concept of sustainable development Indian Economy on the threshold of Independence. Indian economy today Explicit and implicit costs of economic growth: Illusion of rising prosperity and the

Americanization of India.


2. INDIAN ECONOMIC DEVELOPMENT IN FUTURE (6 HRS) Potential for economic growth and development in the New Millennium. Alternative thinking on India’s economic progress: Growth with social justice

3. INSTITUTIONAL SETUP FOR ECONOMIC DEVELOPMENT (8 HRS) Role- positive and negative – of the state in economic development. Role- positive and negative – of capitalism / market model in economic development. Democracy, power groups, and the inherently iniquitous world under market

capitalism. Reforms needed in capitalism.

BASIC TEXTS ARINDAM CHAUDHURI: Planning India DR. M. K. CHAUDHURI & PROF. ARINDAM CHAUDHURI: Great Indian

Dream (Macmillan) UMA KAPILA: Indian Economy since Independence (Academic Foundation: Latest

Edition) TODARO & SMITH: Economic Development (Pearson Education: Latest Edition):

Relevant chapters BUSINESS STANDARD(edited): India 2010(Business Standard Publication:2010)

Note: Additional readings will be announced by the faculty in the class

GLOBAL ECONOMICS & INTERNATIONAL PLANNING


1. LOGIC OF PLANNING IN INDIA (10 HRS) Evolution of planning Structural constraints and development strategy Role of state as visualized in the 1950’s Evolution of strategy over the planning period: 1950’s till date: changing perceptions. The three basic imbalances and their solutions by the state and the market. Mixed economy: India’s Experience

2. FINANCING OF INDIA’S GROWTH (6 HRS)


Role of foreign capital Foreign direct investment Other forms of resources Domestic resources Financial sector: Structure, performance, and reforms

3. INDIA AND THE INTERNATIONAL CONTEXT (8 HRS) Integration of Indian economy into world economic system

- Financial integration- Integration through trade and commerce

Advantages and pitfalls of integration Globalisation and tribalisation of economic systems Emergence of Indian economy on world stage

BASIC TEXTS ARINDAM CHAUDHURI: Planning India DR. M. K. CHAUDHURI & PROF. ARINDAM CHAUDHURI: Great Indian

Dream (Macmillan) UMA KAPILA: Indian Economy since Independence (Academic Foundation: Latest

Edition) TODARO & SMITH: Economic Development (Pearson Education: Latest Edition):

Relevant chapters Note: Additional readings will be announced by the faculty in the class

MACRO ECONOMICS


1. INTRODUCTION (1 HR) Definition & scope of macroeconomics Income and its measurement; their interpretation Circular flow of income, output, and spending NI and allied measures for India

2. INCOME DETERMINATION IN SHORT RUN: BASIC MODEL (2 HRS) Determinants of aggregate spending Equilibrium income Changes in income


Concepts of inflation, unemployment, business cycle, multiplier, etc.

3. INCOME DETERMINATION IN A FOUR SECTOR MODEL (2 HRS) Introduction of govt. in income determination model Income determination in an open economy Changes in income in a four sector model Govt. and external sector in Indian economy

4. PRICE SETTING IN AD-AS FRAMEWORK (2 HRS) Aggregate demand, aggregate supply, and equilibrium Changes in income and price level

5. INCOME AND PRICES IN THE LONG RUN (3 HRS) Induced changes in input prices Aggregate demand shocks and their consequences on income Income in short run and long run Business cycle and fiscal operations Fiscal policy in India and its implications for income determination & change

6. INSTITUTION OF MONEY IN A MODERN ECONOMY (2 HR) Definition, nature, role, and function of money Money and credit Banking system: A preliminary idea of credit creation Working of monetary and credit policy in India

7. MONEY IN MACROECONOMICS (4 HRS) Demand for money: General and in India Supply of money: General and in India (monetary aggregated) Monetary forces and aggregate demand Macroeconomic cycles and aggregate shocks

8. BALANCE OF PAYMENTS AND EXCHANGE RATES (2 HRS) Balance of payments: Concept; Indian BOP Foreign exchange: Market; determination Foreign exchange markets and systems in India

9. MACROECONOMIC POLICY IN AN OPEN ECONOMY (2 HRS) Meaning of an open economy and openness Macro policy in a world with perfect capital mobility Implications of an open economy; Indian case

10. MACROEONOMIC ISSUES: INFLATION (1 HR) Inflation in the macro model The Philips curve The Lucas AS function Inflation in India

11. UNEMPLOYMENT (1 HR)


Meaning, types, and characteristics of unemployment Unemployment in India: Nature. Causes, and consequences Cyclical and structural unemployments Policies to reduce unemployment

12. INTERNATIONAL TRADE (2 HRS) Basis of trade Trade theories for the nations Trade theories at the firm level Gains from trade

BASIC TEXTS LIPSEY AND CHRYSTAL: Economics (11th – Indian Edition): Chs. 15-25 (OUP) MINISTRY OF FINANCE: Economic Survey (Latest Edition): All Chapters (OUP)

V. IMPORTANT NOTES: All the case studies given in Lipsey & Chrystal are in course. The questions in examination will be application (of macroeconomics concepts)

based.

isbe -a iipm - iind semester - ss 2010 -12 course ware

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