quest ans me

7/31/2019 Quest Ans Me

1/20

June-July 2009PART A

1. a. Define management? (02 Marks)

Art of getting things done through people.

b. With a neat sketch explain the functions of management. (12 Marks)

planning

organizing

actuating

controlling innovation

representation

POSDCORB explain.

c. Briefly explain the concept of modern management approaches. (06 Marks)

Quantitative approach

Behavioral approach

System approach

Contingency approach

2. a. Give any four concrete reasons for the paramount importance of the planning

functions. (04 Marks) Planning provides direction

Planning minimizes uncertainty

Planning ensures co-ordination

Planning encourages innovation and creativity

b. Briefly explain the steps involved in planning. (06 Marks)

establishing verifiable goals or set of goals o be achieved

establishing planning premises

deciding the planning period

finding alternative course of action

evaluating & selecting a course of action

developing derivative plans

c. What are the different types of decisions? Explain briefly. (10 Marks)

programmed & non-programmed

major &minor

routine & strategic

individual & group

simple & complex

3. a. Briefly explain the principles of organization. (10 Marks)

principle of unity of organization

principle of unity & responsibility

principle of span of control

principle of dividing 7 groping of activities

principle of delegation

principle of co-ordination

principle of communication

principle of line & staff relationship

principle of balance

principle of flexibility

principle of simplicity

principle of productivity

b. Write any four advantages of proper & efficient staffing. (04 Marks)


2/20

Any four of them

c. Write short note on the following : i) MBO ii)MBE iii) span of control(06Marks)

MBO :

Superior-subordinate participation: MBO requires the superior and the subordinate

to recognize that the development of objectives is a joint project/activity. They must bejointly agree and write out their duties and areas of responsibility in their respective jobs.

Joint goal-setting: MBO emphasizes joint goal-setting that are tangible, verifiable

and measurable. The subordinate in consultation with his superior sets his own

short-term goals. However, it is examined both by the superior and the

subordinate that goals are realistic and attainable. In brief, the goals are to be

decided jointly through the participation of all.

Joint decision on methodology: MBO focuses special attention on what must be

accomplished (goals) rather than how it is to be accomplished (methods). The

superior and the subordinate mutually devise methodology to be followed in the

attainment of objectives. They also mutually set standards and establish norms

for evaluating performance.

Makes way to attain maximum result: MBO is a systematic and rational technique

that allows management to attain maximum results from available resources by

focussing on attainable goals. It permits lot of freedom to subordinate to make

creative decisions on his own. This motivates subordinates and ensures good

performance from them.

Support from superior: When the subordinate makes efforts to achieve his goals,

superior's helping hand is always available. The superior acts as a coach and

provides his valuable advice and guidance to the subordinate. This is how MBO

facilitates effective communication between superior and subordinates for

achieving the objectives/targets set.

Management by objective is a method whereby managers and employees define

objectives for every department, project, and person and use them to control

subsequent performance. MBO involves four steps: setting objectives, developing

action plans, reviewing progress, and appraising overall performance.

MBE :

Perhaps the most fundamental of all control techniques is management by

exception (MBE), a control principle which suggests that managers should be

informed of situation only if control data show a significant deviation from

standards.

The use of MBE results in two advantages for organizations:

First, it means a better use of the manager's time. Particularly, use of MBE with

computers, helps managers save time by bringing to their attention only those

conditions that appear to need managerial action.

Second, MBE encourages workers to exercise judgment when doing their work.

As long as they are within the guidelines that have been established, they can

continue working as they see fit.

Therefore, management by exception is both a motivational and control

techniques


3/20

Span of control : The number of employees who can be effectively and efficientlysupervised by a manager.

Width of span is affected by:

Skills and abilities of the manager

Employee characteristics

Characteristics of the work being done

Similarity of tasks

Complexity of tasks

Physical proximity of subordinates

Standardization of tasks

4. a. With a neat sketch briefly explain Maslows theory of motivation. (06 Marks)

OR

Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs

Self-Actualization

Self-actualization is the summit of Maslow's motivation theory. It is about the quest of

reaching one's full potential as a person. Unlike lower level needs, this need is never fully

satisfied; as one grows psychologically there are always new opportunities to continue togrow.

Self-actualized people tend to have motivators such as:

Truth

Justice

Wisdom

Meaning
http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Self_Actualizationhttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Esteem_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Social_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Safety_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Physiological_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Self_Actualizationhttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Esteem_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Social_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Safety_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Physiological_Needs


4/20

Self-actualized persons have frequent occurrences ofpeak experiences, which areenergized moments of profound happiness and harmony. According to Maslow, only a

small percentage of the population reaches the level of self-actualization.

Esteem Needs

After a person feels that they "belong", the urge to attain a degree of importanceemerges. Esteem needs can be categorized as external motivators and internal

motivators.

Internally motivating esteem needs are those such as self-esteem, accomplishment, and

self respect. External esteem needs are those such as reputation and recognition.

Some examples of esteem needs are:

Recognition (external motivator)

Attention (external motivator)

Social Status (external motivator)

Accomplishment (internal motivator)

Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteemneeds: the need for aesthetics and knowledge.

Social Needs

Once a person has met the lower level physiological and safety needs, higher

level motivators awaken. The first level of higher level needs are social needs. Socialneeds are those related to interaction with others and may include:

Friendship

Belonging to a group

Giving and receiving love

Safety Needs

Once physiological needs are met, one's attention turns to safety and security in order to

be free from the threat of physical and emotional harm. Such needs might be fulfilled by:

Living in a safe area

Medical insurance

Job security

Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid

will not receive attention until that need has been resolved.

Physiological Needs Physiological needs are those required to sustain life, such as:

Air Water

Food

Sleep

According to this theory, if these fundamental needs are not satisfied, then one will surelybe motivated to satisfy them. Higher needs such as social needs and esteem are not

recognized until one satisfies the needs basic to existence.

b. Define & explain the purpose of communication. (08 Marks)

c. Briefly explain the essentials of a sound control system. (06 Marks)


5/20

PART B

5. a. Who is an entrepreneur ? (02 Marks)

b. Briefly explain the characteristics of an entrepreneur. (06 Marks)

o Effective communication

o Negotiation skills

o Risk, resourceful , responsible

o Emotionally stable, ethical

o Problem solving, patient, passionate

o Realistic

o Endurance, energetic

o Networking ability

o Excellence in economics

o Real innovator

c. Explain in detail various types and functions of entrepreneur. (08

Marks)

innovative

imitative

fabian

droneBased on types of business

Business ER

Trading ER

Industrial ER

Corporate ER

Agricultural ER

Retail ER

Service ERBased on use of technology

Tech ER Non tech ER

Professional ER

High tech ER

Low tech ER

d. Distinguish between Entrepreneur & Intrapreneur. (04 Marks)

Difference between an entrepreneur and an intrapreneur:

An entrepreneur takes substantial risk in being the owner and operator of a

business with expectations of financial profit and other rewards that the business

may generate. On the contrary, an intrapreneur is an individual employed by an

organization for remuneration, which is based on the financial success of the unit

he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as

conviction, zeal and insight. As the intrapreneur continues to expresses his ideas

vigorously, it will reveal the gap between the philosophy of the organization and

the employee. If the organization supports him in pursuing his ideas, he succeeds.

If not, he is likely to leave the organization and set up his own business.


6/20

Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of

Adobe, John Warnock and Charles Geschke. They both were employees of Xerox.

As employees of Xerox, they were frustrated because their new product ideas were

not encouraged. They quit Xerox in the early 1980s to begin their own business.

6. a. What is a small scale industry? (02 Marks)

An industrial undertaking in which the investment in fixed assets in plant andmachinery whether held on ownership terms on lease or on hire purchase does

not exceed Rs 10 million.b. Briefly explain the rationale of small scale industry development in India.

(08 Marks)

c. List out various objectives of developing small enterprises in India. (06 Marks)

d. Explain briefly the government support for SSI during 5 year plan. (04 Marks)

7. a. With a neat sketch explain the activities of NSIC. (08 Marks)

b. Write short notes on the following :

i) SISI ii) SIDBI iii) DIC iv) TECKSOK (12 Marks)

Objectives OF SIDBIThe primary function and objectives of the Directorate of Industries are supervision

and control of District Level functionaries, i.e., the District Industries

Centres in implementation of the various schemes and programmes of theDepartment. The bas ic objective of the Department is al so to act as the

Nodal Promotional Agency in the development of industries and industries

activities in the State as a whole. And t o pr omo te and achi eve t heabove-ment ioned pu rpose , the Depar tment o rgan i ses and

implements various programmes and schemes to provide the basicinfr ast ruc tural fac ili ties for the creation of industrial awareness and

atmosphere viz. ,Investment Awareness Programmes.

Plans of SIDBI1. Development of Industrial Areas and Estates:

With the passing of time, there has been a steep rise in scarcity of suitable land forsetting up of industrial projects. Therefore, to meet the above demand clutched with

other basic Industrial Infrastructures, like road, water, power etc.,the Departmenthave acquired suitable plots of land almost in every district of the state and

developed them into industrial areas and estates. And for efficient maintenance ofthese Industrial Areas and Estates, the Department has a specific annual plan

scheme known as Development of Industrial Areas and Estates.

2.Man Power General Schemes :In order to create skill technical and managerial entrepreneurs the Department,

through the District Industries Centres (D.I.Cs.) and State Financial and IndustrialDevelopment Corporation, i.e., Meghalaya Industrial Development

Corporation(M.I.D.C.) sponsors local youths with suitable stipend to undergo training

studies so that they meet either the local demand or set up Industries of their ownas self-employment ventures after successful completion of their courses. These

schemes are: Manpower Training Scheme and Entrepreneurial Development Programme

THE DISTRICT INDUSTRIES CENTRE PROGRAMME(DIC)


7/20

This programme of District Industries Centre was launched at the National level on the 1stMay, 1978 to provide a District Level Set up for the promotion & development of Small

Scale, Village and Cottage Sectors of industries and to provide all services and support tothis Decentralised Sector of Industries, under SINGLE ROOF as far as practicable at Pre-

Investment, Investment and Post-Investment Stages.

2.2. The main thrust of this Programme is on development of such industrial Units in

rural areas and small towns of the country and would create large employmentopportunities in these areas.

2.3. Initially, the District Industries Centre, at Nongpoh was started in March 1994, to

look after the Industrial Programme for the Ri- Bhoi District .2.4. The duties of the DIC. It acts as a single window interacting agency with the

entrepreneur at the district level, Services and supports to Small entrepreneurs areprovided through it. It is an mplementing arm of the Central and State Government of the

various schemes and programmes.

Functions of TESCOKTechnical Consultancy Services Organisation of Karnataka (TECSOK), is a

multidisciplinary technical, industrial and management consultancy organizationset up.It was established in the year 1976 by the Government of Karnataka. The

primary objective of founding TECSOK was to provide reliable consultancy supportfor entrepreneurs to start up self employment ventures in Karnataka, India.

TECSOK is a multidisciplinary management consultancy organization promoted bythe Government of Karnataka to provide reliable consultancy services in India.TECSOK has been excelling its expertise in a wide range of services. The package

of services includes feasibility studies, market research, valuation of assets,environment impact studies, energy management and audit, management studies

like corporate plan, reorganization and restructuring of enterprises, man powerplanning, budgetary control systems, mergers and acquisitions, investment

opportunities, technology transfers, diagnostic studies and also designing andorganizing training programmes in all related areas. Of late, TECSOK is also

concentrating on studies relating to Cleaner Production technologies and methods.

8. a. What are the criteria for selecting a particular project, an entrepreneur shouldconsider? (06 Marks)

b. Briefly explain the importance of project identification (06 Marks)

c. Give the meaning of project appraisal. (02 Marks)

d. What are the steps followed in project appraisal? (06Marks)

May-June 2010

PART A

1. a. Define management? What are the nature & characteristics of management?Explain its functions. (08 Marks)

Art of getting things done through people.

b. Is management science, arts r profession? Explain. (05 Marks)

c. What are the modern management approaches? Explain briefly the contingencyapproach of management. (06 Marks)

2. a. Give What is planning? Explain the steps involved in planning. Give the

importance & purpose of planning process. (06

Marks) Planning is an intellectual process


8/20

Steps in planning

Is a continuous process

Must be flexible

An all pervasive function

Is rational

Purpose

Minimizes risk

Leads to success

Focus attention

Facilitates control

b. Briefly explain the types of planning. (04 Marks)

objectives

strategies

single use

standing

c. Explain the process & steps involved in decision making. (06 Marks)

Recognizing the problem

Deciding the priorities

Diagnosing the problem

Developing the alternative course of action

Measuring &comparing the consequences of alternative solutions

Converting the decision into effective action & follow-up of action

d. Explain hierarchy of plans . (04 Marks)

3. a. What are the advantages & disadvantages of line & staff organization? (8

Marks)

b. Explain the following : i. types of departmentation ii. Principles ofcommittees

(04 Marks)Departmentalization by Type

Functional : Grouping jobs by functions performed

Product : Grouping jobs by product lineGeographic : Grouping jobs on the basis of territory or geographyProcess :Grouping jobs on the basis of product or customer flow

Customer : Grouping jobs by type of customer and needs

c. What are : i) MBO ii)MBE explain. (04 Marks)

d. What is recruitment ? Explain various sources of recruitment. (04Marks)

4. a. Give principles of directing. Differentiate between autocratic, participative andfree rein style of leadership. (07

Marks)b. Write about Maslows theory of motivation. Explain MC Gregors theory X and

theory Y. (07 Marks)

Self-Actualization

Esteem Needs

Social Needs

Safety Needs

Physiological Needs
http://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Self_Actualizationhttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Esteem_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Social_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Safety_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Physiological_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Self_Actualizationhttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Esteem_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Social_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Safety_Needshttp://www.envisionsoftware.com/articles/Maslows_Needs_Hierarchy.html#Physiological_Needs


9/20

McGregor concluded that the traits Theory X managers displayed were those of directionand control associated with the exercise of authority, while the traits Theory Y managers

displayed were facilitation and integration. McGregor's theory had a remarkable impact onmanagement and even today managers are sometimes referred to as X or Y managers.

cGregor and Maslow's hierarchy

Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior andmotivation is the main priority in the workplace in order to maximize output. In relations

to Theory Y the organization is trying to create the most symbiotic relationship between

the managers and workers which relates to Maslow's hierarchy of needs of SelfActualization and Esteem. For Self Actualization the manager needs to promote the

optimum workplace through morality, creativity, spontaneity, problem solving, lack ofprejudice, and acceptance of facts. It can relate to Esteem when the manager is trying to

promote self esteem, confidence, achievement, respect of others, and respect by others.

c. State & explain the steps in controlling. Explain the methods of establishingsound controlling. (06

Marks)

The Organizational Control Process

The control process involves carefully collecting information about a system, process,

person, or group of people in order to make necessary decisions about each. Managers set

up control systems that consist of four key steps:

1. Establish standards to measure performance. Within an organization's

overall strategic plan, managers define goals for organizational departments in

specific, operational terms that include standards of performance to compare with

organizational activities.

2. Measure actual performance. Most organizations prepare formal reports

of performance measurements that managers review regularly. Thesemeasurements should be related to the standards set in the first step of the control

process. For example, if sales growth is a target, the organization should have a

means of gathering and reporting sales data.

3. Compare performance with the standards. This step compares actual

activities to performance standards. When managers read computer reports or walk

through their plants, they identify whether actual performance meets exceeds, or

falls short of standards.
http://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needshttp://en.wikipedia.org/wiki/Maslow's_hierarchy_of_needs


10/20

4. Take corrective actions. When performance deviates from standards, managers

must determine what changes, if any, are necessary and how to apply them. In the

productivity and quality-centered environment, workers and managers are often

empowered to evaluate their own work. After the evaluator determines the cause

or causes of deviation, he or she can take the fourth stepcorrective action. The

most effective course may be prescribed by policies or may be best left up to

employees' judgment and initiative.

These steps must be repeated periodically until the organizational goal is achieved.

PART B

5 a. What is an entrepreneurship ? Explain its model & types of entrepreneurs.(07Marks)

Entrepreneurship is the act of being an entrepreneur or "one who undertakes

innovations, finance and business acumen in an effort to transform innovations intoeconomic goods". This may result in new organizations or may be part of revitalizingmature organizations in response to a perceived opportunity.

Entrepreneurship Model

Types of entrepreneurs

innovative

imitative

fabian

drone

b. Differentiate between Entrepreneur & Intrapreneur & manager. (07

Marks)

Difference between an entrepreneur and an intrapreneur:

An entrepreneur takes substantial risk in being the owner and operator of a business with

expectations of financial profit and other rewards that the business may generate. On the

contrary, an intrapreneur is an individual employed by an organization for remuneration,
http://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Innovationshttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Innovationshttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Organization


11/20

which is based on the financial success of the unit he is responsible for. Intrapreneurs

share the same traits as entrepreneurs such as conviction, zeal and insight. As the

intrapreneur continues to expresses his ideas vigorously, it will reveal the gap between

the philosophy of the organization and the employee. If the organization supports him in

pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his

own business.

Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of

Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As

employees of Xerox, they were frustrated because their new product ideas were not

encouraged. They quit Xerox in the early 1980s to begin their own business. Currently,

Adobe has an annual turnover of over $3 billion.

Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take

risk and creativity. An entrepreneur will be able to look at things in novel ways. He will

have the capacity to take calculated risk and to accept failure as a learning point. An

intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the

organization. Intrapreneurship is a novel way of making organizations more profitable

where imaginative employees entertain entrepreneurial thoughts. It is in the interest of an

organization to encourage intrapreneurs. Intrapreneurship is a significant method for

companies to reinvent themselves and improve performance.

c. What are the barriers of entrepreneurship ? Explain the role of entrepreneur in

economic development. (06 Marks)

More than 90 percent of entrepreneurs fail. The top 3 barriers to entrepreneurship are

the following:

1. Procrastination: Procrastination they say is the thief of time. There is notomorrow because it never comes. What you do today will affect how yourtomorrow will be. Out of laziness, resistance and complacency entrepreneurs areforced to shift activities.

If you want to draw a business plan it must be now; if you want to write aproposal, it must be now; if you must register your business, it must be now; ifyou must quit a job and start your own business it must be now.

A lot of entrepreneurs have great vision and dreams but a lot are in the somedayisland. They hope to achieve them someday. They never get there in actual fact.Write the dream on paper, figure out areas of strength and areas of resistance,set time against your dreams. When you have done this, employ your passionand go get it.


12/20

2. Tying your dreams to age: Age is nothing but a number. Whatever youwant to do has nothing to do with your age. Its all about attitude, level ofexposure, knowledge and the self-will. The fact that the CEO of a companyachieved success at the age of 50 does not mean entrepreneurial success istied to age 50.

Today there are a lot of young entrepreneurs who have become billionaires.Mark Zuckerberg of facebook.com is a typical example; a billionaire at age 24as at 2010. Dont allow your age to limit you in the kinds of dreams you haveand your pursuit for achievement. Dream as wide as you can, dont bedeterred by how insufficient you may be. As you step out to achieve yourgoals, all you need shall fall into place.

Following the status quo: There is no perfect system. What worked out tenyears ago has no place today. The world is fast-changing and so is the businessenvironment. The Internet has made the world smaller than was thoughtdecades ago. Businesses are using the power of the Internet to reach out to theirclients. As an entrepreneur, consider the use of social media platforms likeFacebook, Twitter, and Myspace to reach out to your prospective clients at no

cost. Flow with the time and make the necessary adjustment to be able to enjoythe benefits that comes with the change.

Role of entrepreneur in economic development.The most important factor for economic development of a country is itsindustrialization. In the process of industrialization, emphasis is given to the three

major groups of industries; large-scale industries, small-scale industries andcottage industries.

development is vitally linked with various programmes and policies designed toremove poverty, unemployment and backwardness of the rural people.

small-scale industrial sector plays a dominant role in the economic development of

both developed and developing countries. In developing countries cottage and

small-scaleindustries are especially important in context of employment opportunities,equitable distribution of national income, balanced regional growth and

development of rural and semi urban areas.

They provide immediate large-scale employment, offer a method of ensuring amore equitable distribution of the national income and facilitate effective

mobilization of resources of capital and skill which might otherwise remainunutilized.

Small scale industries, including traditional cottage and village industries andmodern small enterprises have been given an important place in Indias economic

planning for ideological and economic reasons. Our late Prime Minister Mrs. IndiraGandhi once

remarked, Small scale industries offer many opportunities; besides adding toproduction, they broaden the industrial base. They enable the process of

modernization as well as entrepreneurship to spread to more regions and layers ofsociety. Father of our Nation,

Mahatma Gandhiji had strongly advocated the development of Indian villages bymaking them financially viable through small and village industrial units. The small

scale and cottage industrial sector have found their economic rationale inMahalanobis model of

economic development, which was the basis for Indias second and subsequentFive Year Plans. This sector has emerged as a vibrant and dynamic sector of Indian

economy, which contributes nearly 40 percent of the total industrial production andover 34 percent of


13/20

the national exports by providing employment to over 250lakh persons. This sectorenjoys the pride of being second largest employer in the country and offers a wide

variety of products.

6. a. Define small scale industry, ancillary industry & tiny industry with at least 4advantages of each. (08 Marks)

Small Scale Industrial Undertakings

The following requirements are to be complied with by an industrial undertaking to

be graded as Small Scale Industrial undertaking w.e.f. 21.12.1999

An industrial undertaking in which the investment in fixed assets in plant andmachinery whether held on ownership terms on lease or on hire purchase does not

exceed Rs 10 million.

(Subject to the condition that the unit is not owned, controlled or subsidiary of any

other industrial undertaking)

Ancillary Industrial Undertakings

The following requirements are to be complied with by an industrial undertaking for

being regarded as ancillary industrial undertaking: -

An industrial undertaking which is engaged or

is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates,

or

the rendering of services and the undertaking supplies or

renders or proposes to supply or

render not less than 50 per cent of its production or services, as the casemay be, to one or more other industrial undertakings and whose investment

in fixed assets in plant and machinery whether held on ownership terms oron lease or on hire-purchase, does not exceed Rs 10 million.

Tiny Enterprises

Investment limit in plant and machinery in respect of tiny enterprises is Rs 2.5 million

irrespective of location of the unit.

b. Explain the objective of SSIs and its role in economic development. (06 Marks)

The most important factor for economic development of a country is its industrialization.In the process of industrialization, emphasis is given to the three major groups of

industries; large-scale industries, small-scale industries and cottage industries.development is vitally linked with various programmes and policies designed to remove

poverty, unemployment and backwardness of the rural people.

small-scale industrial sector plays a dominant role in the economic development of both

developed and developing countries. In developing countries cottage and small-scaleindustries are especially important in context of employment opportunities, equitable

distribution of national income, balanced regional growth and development of rural andsemi urban areas.

They provide immediate large-scale employment, offer a method of ensuring a more

equitable distribution of the national income and facilitate effective mobilization ofresources of capital and skill which might otherwise remain unutilized.

Small scale industries, including traditional cottage and village industries and modernsmall enterprises have been given an important place in Indias economic planning for

ideological and economic reasons. Our late Prime Minister Mrs. Indira Gandhi onceremarked, Small scale industries offer many opportunities; besides adding to production,they broaden the industrial base. They enable the process of modernization as well as

entrepreneurship to spread to more regions and layers of society. Father of our Nation,


14/20

Mahatma Gandhiji had strongly advocated the development of Indian villages by makingthem financially viable through small and village industrial units. The small scale and

cottage industrial sector have found their economic rationale in Mahalanobis model ofeconomic development, which was the basis for Indias second and subsequent Five Year

Plans. This sector has emerged as a vibrant and dynamic sector of Indian economy, whichcontributes nearly 40 percent of the total industrial production and over 34 percent of

the national exports by providing employment to over 250lakh persons. This sector enjoys

the pride of being second largest employer in the country and offers a wide variety ofproducts.

c. Explain GATT & WTO and its impact on trade. (06 Marks)

7. a. Explain the aims & objectives of KIADB & KSSIDC. (08 Marks)Objective functions of KIADB

K a r n a t a k a I n d u s t r i a l A r e a s D e v e l o p m e n t B o a r d ( K I A D B ) i sa w h o l l y o w n e d infrastructure agency of Government of Karnataka, set up

under Karnataka Industrial Areas Development Act of 1966.This Board functions asper statutory provisions, rules and regulations enacted there under. The B oard

compr i ses o f sen io r government o f f i ce rs in the i r ex -o f f i c i o capac i t i e s .The Board of members meet regularly to take decisions and monitor the

funct ions. KIADB hol ds pr ide in being the first government organisation in Karnatakato obtain ISO 9001 certification in the year 1997.Aims and Objectives :

Promote rapid and orderly development of industries in the state. Assist in implementation of policies of government within the purview of KIAD Act.

Facilitate for establishing infrastructure projects. Function on corporate lines, with No Profit No Loss policy.

Functions :

Acquire land and form industrial areas. Provide all infrastructure to such industrial areas.

Acquire land for Single Unit Complexes. Acquire land for Government agencies for their schemes and infrastructure projects

Karnataka State Small Industries Development Corporation Limited.(KSSIDCL)The programme of establishment of industrial estates, which has been carried out by the

Sta te Government invo lved in cons t ruc t i on o f i ndus t r i a l sheds o f var ious d imens ions and p rov id ing them w i th essen t ia l amen i t i e s such

as roads, water supply, sewerage line and electricity. The maintenance and

upkeep of the sheds also became a part of the responsibility of the Corporation. Besidesconstructing and letting out the industrial sheds, developed plots were also offered to the

entrepreneurs to put up their own factory sheds. The company also established exclus iveand prominent ancillary industrial estates in the vicinities of large and medium

scale

b. Explain the following :i) NSIC ii) KSFC iii) DIC single window agency (12 Marks)

The National Small Industries Corporation Ltd (NSIC) was set up in 1955 as a central governmentundertaking, the main aim of which is to fulfill the requirement of machinery and equipment forthe development of the small entrepreneurs. It is observed that the main constraint faced by theentrepreneurs is the dearth of investible funds to purchase machinery and equipment. Non-availability of finance deprives many new entrepreneurs from availing entrepreneurialopportunities.

NSIC is established to cater to this need of the entrepreneur. NSIC provides plant, machinery andequipment on a hire-purchase basis. Under its special scheme, entrepreneurs can procureindigenous as well as imported machinery.

Functions of National Small Industries Corporation Ltd. (NSIC)


15/20

The Head office of NSIC is situated at New Delhi with four regional offices at New Delhi, Mumbai,Kolkata and Chennai and eleven branch offices at important cities spread over the entire country.

They provide a wide range of services mostly promotional in character to small scale industries.The important functions NSIC performs are grouped as under:

1. Provides financial assistance by way of hire-purchase scheme for purchase of machinery andequipment, required for the setting up industries.

2. Provides various equipments on lease basis.

3. Assists in marketing of the products of SSIs.

4. Helps in exporting the product of SSIs.

5. Provides training to workers of SSIs in various trades.

6. Helps in the development and upgradation of technology and modernisation of the industries.

7. Undertakes construction of industrial estates.

8. Purchases huge quantity of important raw materials and distribute the same to SSIs atreasonable rates.

9. Develops prototype machines and equipments to pass on to SSIs for commercial production.

10. Sets up small scale industries in other developing countries on turn-key basis.

Karnataka state finance corporation (KSFC)KSFC is one of the fast track Term Lending Financial Institutions in thecountry, with assistance to more than 1,59,225 units amounting to nearly

8,537 crore rupees over the last 49years in the State of Karnataka. It ison e o f t he ro bu st an d p ro fe ss io na ll y m an ag ed St at e Financial Corporations.

Infrastructure Related Activities : For establ ishing commercial complexes ,

residential apartments, development of residential layouts, group housing,industr ia l estate s, so f t ware parks, go downs, warehou ses, acqu is i t ion

of ready built offices/new office building, sales outlets/showrooms and other other

infrastructure projects like flyovers, bridges etc and construction, development andmaintenance of roads.

Assistance To Hotels/Restaurants: For setting up of medium and star category standardhotels in the state capital, district ad taluk HQ, important tourist centres. The hotels

should have boarding, lodging and restaurant facilities and building plan approved by localauthorities. Assistance for mobile canteens is also available.

Assistance To Tourism Related Activities: For Setting up of amusement parks, conventioncentres, travel and transport, tourist service agencies and restaurants.

Assistance ToDoctors/NursingHomes/Hospitals/ Electro Medical Equipments: For setting upclinic, nursing homes, hospitals, and for acquiring electro- medical equipment Assistance

To Entertainment Industry: For construction and purchase of cinema halls andmultiplexes, production of short TV serials and feature films, software for visual media

publicity.

S i n g l e W i n d o w S c h e m e T o p r o v i d e l o a n b o t h : f o r f i x e d a s s e t sa n d w o r k i n g c a p i t a l t o t i n y and small-scale units whose project cost does not

exceed Rs. 35lakhs and working capital requirement does not exceed Rs. 15lakhs.


16/20

C o r p o r a t e L o a n S c h e m e S h o r t t e r m l o a n s t o t h e e x i s t i n gs u c c e s s f u l u n i t s w h o r e q u i r e urgent working capital funds either to meet gap

in the working capital requirements or funds required for executing the rush of orders andalso for meeting statutory dues to government like payment of income tax, sales tax

excise duty etc. This loan is also considered for developing/expanding new markets andopening LC for purchase of new equipments till a term loan is sanctioned and released.

Rehabilitation For Sick Assistance for rehabilitation of potentially viable sick units.

THE DISTRICT INDUSTRIES CENTRE PROGRAMME

This programme of District Industries Centre was launched at the National level on the 1stMay, 1978 to provide a District Level Set up for the promotion & development of Small

Scale, Village and Cottage Sectors of industries and to provide all services and support tothis Decentralised Sector of Industries, under SINGLE ROOF as far as practicable at Pre-

Investment, Investment and Post-Investment Stages.

2.2. The main thrust of this Programme is on development of such industrial Units inrural areas and small towns of the country and would create large employment

opportunities in these areas.2.3. Initially, the District Industries Centre, at Nongpoh was started in March 1994, to

look after the Industrial Programme for the Ri- Bhoi District .2.4. The duties of the DIC. It acts as a single window interacting agency with the

entrepreneur at the district level, Services and supports to Small entrepreneurs areprovided through it. It is an implementing arm of the Central and State Government of the

various schemes and programmes.

2.5. ACTIVITIES :REGULATORY

a) Registration of Units.b) Activities connected with policy implementation.

c) Administrative work.RECOMMENDATORY FOR ASSISTANCE FROM GOVERNMENTAGENCIES FOR

a) Machinery.

b) Finance.c) Procurement of materials.

IMPLEMENTATION AND MONITORING OF PROGRAMMES OF BOTH CENTRAL AND STATEGOVERNMENTS.

PROMOTIONAL FOR :

a) Preparation of Project Reports.b) District Action Plans.

8. What are the criteria for selecting a particular project, an entrepreneur should

consider? (06 Marks)

b. Explain the phases of project identification with its sources. (05 Marks)c. Explain Network analysis. What are the various techniques used for Network

analysis. (05 Marks)d. Explain both PERT & CPM with its advantages & disadvantages. (10 Marks)

June-July 20011

PART A

1. a. Explain different skills and their importance at different levels of management.(08 Marks)


17/20

b. What is the nature & characteristics of management. (07 Marks)c. Distinguish between management & administration. (05 Marks)

2. a. Briefly explain the general principles of management as laid down by Henry

Fayol. (08 Marks)b. State explain the steps in decision making. (07 Marks)

c. differentiate between strategic & tactical planning. (05 Marks)Strategic and operational planning : Strategic planning sets future direct ions of the

organization in which it wants to proceed in future. Strategic planning involves a time

horizon of more than one year and for most of the organization it ranges between3 and 5years. Examples of strategic planning may be diversification of business into

new lines, planned grown rate in sales etc. Operational planning also known of tacticalplanning on the other hand involves deciding the most effective use of resources already

a l l o ca ted to ach ieve the o rgan i za t i ona l ob jec t i ves . The t ime ho r i zon inoperat iona l planning is less than one year. Operational planning is undertaken out of

the strategic planning. The examples of operational planning may be adjustment ofproduction within available capacity, increasing the efficiency of the operating activity by

analyzing past pe rf or ma nc e et c.

Differences between strategic and operational planning

S t ra t e g i c p la n n in g O p e ra t io n a l p la n n in g

1 . I t d e c id e s m a j o r g o a l s a n d p o l ic i e s o f

a l lo c a t i o n o f r e s o u r c e sf o r a c h i e v i n g t h e s eg o a l s

1 . I t d e c id e s t h e d e t a i le d u s e o f r e s o u r c e

t o a c h i e v e t h e s e g o a l s

2 . I t i s c a r r ie d a t h i g h e r l e v e l o f m a n a g e m e n t

2 . I t i s c a r r i e d a t l o w e r l e v e l o f m a n a g e m e n t

3 . I t i s l o n g t e r m . 3 . I t i s s h o r t t e rm .

4 . I t is b a s e d o n l o n g t e r m f o r e c a s t in g4 . I t is g e n e r a l ly b a s e d o n p a s tp e r f o r m a n c e o f c o n s i d e r i n g t h e p o s s i b l ei m p a c t o f t h e o r g a n i z a t io n a n d i s l e s s

u n c e r t a i n p o l i t i c a l , e c o n o m i c a l ,t e c h n o l o g i c a l a n d c o m p e t i ti v e f a c t o r s a n d

i s m o r e u n c e r t a i n .

5 . I t i s l e s s d e t a i l e d . 5 . I t i s m o re d e t a i le d

3. a. What is line & staff organization?. (08 Marks)

b. Explain the nature & importance of staffing. (07 Marks)c. What is MBO ? Explain. (05 Marks)

4. a. What are the essentials of a sound controlling? (08 Marks)

b. Explain the importance of leadership in organization. (07 Marks)c. What are the barriers of successful communication? (05 Marks)

PART B

5. a. What are the qualities of an entrepreneur ? (08 Marks)

b. Differentiate between Entrepreneur & Intrapreneur & manager. (07Marks)

c. What are the various stages in Entrepreneurship process. (05

Marks)

6. a. Explain the steps involved in setting up a small scale industry? (08Marks)

b. Briefly What is the influence of LPG in SSIs ? Explain. .(07 Marks)c. Explain the role of SSI in the economic development. (05 Marks)


18/20

The most important factor for economic development of a country is its industrialization.In the process of industrialization, emphasis is given to the three major groups of

industries; large-scale industries, small-scale industries and cottage industries.development is vitally linked with various programmes and policies designed to remove

poverty, unemployment and backwardness of the rural people.

small-scale industrial sector plays a dominant role in the economic development of both

developed and developing countries. In developing countries cottage and small-scaleindustries are especially important in context of employment opportunities, equitable

distribution of national income, balanced regional growth and development of rural and

semi urban areas.

They provide immediate large-scale employment, offer a method of ensuring a moreequitable distribution of the national income and facilitate effective mobilization of

resources of capital and skill which might otherwise remain unutilized.Small scale industries, including traditional cottage and village industries and modern

small enterprises have been given an important place in Indias economic planning forideological and economic reasons. Our late Prime Minister Mrs. Indira Gandhi once

remarked, Small scale industries offer many opportunities; besides adding to production,they broaden the industrial base. They enable the process of modernization as well as

entrepreneurship to spread to more regions and layers of society. Father of our Nation,Mahatma Gandhiji had strongly advocated the development of Indian villages by making

them financially viable through small and village industrial units. The small scale andcottage industrial sector have found their economic rationale in Mahalanobis model of

economic development, which was the basis for Indias second and subsequent Five YearPlans. This sector has emerged as a vibrant and dynamic sector of Indian economy, which

contributes nearly 40 percent of the total industrial production and over 34 percent ofthe national exports by providing employment to over 250lakh persons. This sector enjoys

the pride of being second largest employer in the country and offers a wide variety ofproducts.

7. a. What are the objectives & functions of NSIC. (08 Marks)

The National Small Industries Corporation Ltd (NSIC) was set up in 1955 as a central governmentundertaking, the main aim of which is to fulfil the requirement of machinery and equipment for

the development of the small entrepreneurs. It is observed that the main constraint faced by theentrepreneurs is the dearth of ingestible funds to purchase machinery and equipment. Non-availability of finance deprives many new entrepreneurs from availing entrepreneurialopportunities.

NSIC is established to cater to this need of the entrepreneur. NSIC provides plant, machinery andequipment on a hire-purchase basis. Under its special scheme, entrepreneurs can procureindigenous as well as imported machinery.

Functions of National Small Industries Corporation Ltd. (NSIC)

The Head office of NSIC is situated at New Delhi with four regional offices at New Delhi, Mumbai,Kolkata and Chennai and eleven branch offices at important cities spread over the entire country.

They provide a wide range of services mostly promotional in character to small scale industries.The important functions NSIC performs are grouped as under:

1. Provides financial assistance by way of hire-purchase scheme for purchase of machinery andequipment, required for the setting up industries.

2. Provides various equipments on lease basis.

3. Assists in marketing of the products of SSIs.

4. Helps in exporting the product of SSIs.


19/20

5. Provides training to workers of SSIs in various trades.

6. Helps in the development and upgradation of technology and modernisation of the industries.

7. Undertakes construction of industrial estates.

8. Purchases huge quantity of important raw materials and distribute the same to SSIs atreasonable rates.

9. Develops prototype machines and equipments to pass on to SSIs for commercial produ.

10. Sets up small scale industries in other developing countries on turn-key basis. ction

So in the above way NSIC plays a prominent role for the development of entrepreneurship well asas industrialisation, in the country.

b. Narrate the function of SIDO for the growth of SSIs. (07 Marks)

c. What are the objectives of SFC. (05 Marks)

8 a. Write the need & significance of project report. (08 Marks)

b. hat do you mean by project feasibility study? Explain. (07 Marks)c. Define the project. What is its nature? (05 Marks)

More than 90 percent of entrepreneurs fail. The top 3 barriers to entrepreneurship are

the following:

3. Procrastination: Procrastination they say is the thief of time. There is notomorrow because it never comes. What you do today will affect how yourtomorrow will be. Out of laziness, resistance and complacency entrepreneursare forced to shift activities.

If you want to draw a business plan it must be now; if you want to write aproposal, it must be now; if you must register your business, it must be now;if you must quit a job and start your own business it must be now.

A lot of entrepreneurs have great vision and dreams but a lot are in thesomeday island. They hope to achieve them someday. They never get therein actual fact. Write the dream on paper, figure out areas of strength andareas of resistance, set time against your dreams. When you have done this,employ your passion and go get it.

4. Tying your dreams to age: Age is nothing but a number. Whatever youwant to do has nothing to do with your age. Its all about attitude, level ofexposure, knowledge and the self-will. The fact that the CEO of a companyachieved success at the age of 50 does not mean entrepreneurial success istied to age 50.

Today there are a lot of young entrepreneurs who have become billionaires.Mark Zuckerberg of facebook.com is a typical example; a billionaire at age 24as at 2010. Dont allow your age to limit you in the kinds of dreams you haveand your pursuit for achievement. Dream as wide as you can, dont be


20/20

deterred by how insufficient you may be. As you step out to achieve yourgoals, all you need shall fall into place.

5. Following the status quo: There is no perfect system. What worked outten years ago has no place today. The world is fast-changing and so is thebusiness environment. The Internet has made the world smaller than wasthought decades ago. Businesses are using the power of the Internet to reachout to their clients. As an entrepreneur, consider the use of social media

platforms like Facebook, Twitter, and Myspace to reach out to yourprospective clients at no cost. Flow with the time and make the necessaryadjustment to be able to enjoy the benefits that comes with the change.

SSI

The Ministry of Micro, Small and Medium Enterprises (MSME), Government ofIndia (GoI) has adopted the cluster development approach as a key strategyfor enhancing the productivity and competitiveness as well as capacitybuilding of Micro and Small Enterprises (MSEs) and their collectives in thecountry.

Objectives of the Schemei. To support the sustainability and growth of MSEs by addressing commonissues such as improvement of technology, skills and quality, market access,access to capital, etc.ii. To build capacity of MSEs for common supportive action through formationof self help groups, consortia, upgradation of associations, etc.iii. To create/upgrade infrastructural facilities in the new/existing industrialareas/ clusters of MSEs.iv. To set up common facility centres (for testing, training centre, raw material

depot, effluent treatment, complementing production processes, etc).

quest ans me

Documents