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Saturday 31 January 2015

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Semester 1 Examination Paper
IIBM Institute of Business Management

Semester-1 Examination Paper MM.100

Human Resource Management



Section A: Objective Type (30 marks)
??This section consists of Multiple Choices & Short Notes type questions
??Answer all the questions.
??Part one questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple choices:

1) Name the program which makes supervisor more alert, as it is his responsibility to rate his Subordinates
1. Periodic appraisal
2. Yearly appraisal
3. Monthly appraisal
4. Weekly appraisal

2) The HRD programmes fail due
1. Crime factor
2. Social justice
3. Inflation
4. Poverty

3) Name the recruitment process which is said to be a costly affair
1. Internal
2. External
3. International
4. National

4) In resent times, which department and head of the same usually initiates the manpower plan.
1. Operation department
2. production department
3. H R department
4. Logistics department

5) The job evaluation programme once installed must be continued on a ________ basis.
1. Permanent
2. Unplanned
3. Planned
4. Daily
6) The process of 360 Degree appraisal is broken into two stages - planning and _________.
1. Succession
2. Implementation
3. Non planning
4. Action planning

7) Human resource management is responsible for getting the best people, training and providing
mechanism to achieve organization ____________.
1. Goal
2. Target
3. loss
4. profit

8) The process of analyzing jobs from which job descriptions are developed are called ________.
1. Company analysis
2. Job Analysis
3. Appraisal
4. Job enrichment

9) Which is not the method of performance appraisal ?
1. Straight ranking method
2. Grading method
3. Group Appraisal
4. Circle Method

10) MBO Means
1. Management by Operation
2. Management by Organization
3. Management by Objectives
4. All the above



Part Two:
Q. 1 Explain the importance of Career Planning in industry.

Q. 2 Explain the nature of Human Resource Development. Examine its scope and nature.

Q. 3 Discuss the various Methods of Performance Appraisals?

Q. 4 Explain On-Job and Off Job Training.


END OF SECTION A






Section B: Caselets (40 marks)
??This section consists of Caselets.
??Answer all the questions.
??Each caselet carries 20 marks.
??Detailed information should form the part of your answer (Word limit 200-250 words).
Caselet 1
India Tele Linkages (ITL) was one of the pioneers to enter the telecom business in India in the private
sector. India T.L. was the only company to have brand recognition with its popular Tulip range of
telephones. ITL had restructured itself into a multi product/ service group by diversifying into other
telecom and non-telecom services like healthcare too. Its service venture included Chennai
operations, ITL cellular and the cellular licensee in Andhra territory. After distributing different areas
among different groups of companies, ITL also ventured into manufacturing of transmission
equipments. In fact, ITL was the first company to get ISO 9002 accreditation in India. In the year
2000, it entered into a tie-up with LDC Telecom, Oman to manufacture SDH, digital control
multiplier and some network access products. The company registered total sales of RS. 76 crores in
1995-96, a 22% growth over previous year’s figure of Rs.62.4 crores. The net profit was Rs. 9.14
crores, a growth of 67.7% over the previous year’s figure of Rs. 5.45 crores. ITL had forged an
alliance with the global giant German Telecom for a complete range of office automation products.
The company had started distributing ISDN handsets and terminal adapters. The company had also
set up a joint venture with Tkahami Ltd., Japan to manufacture pagers.ITL had chosen a strategy of
building brands whether it was Tulip in telephone instruments or Spacetel in cellular services. As the
third step in the growth of India Tele linkages, it was granted license to provide basic telephone
services in telecom circle of the state of Tamil Nadu by the Ministry of Communications,
Government of India on April 18, 1998. On August 4, 1999 India Tele Linkages set up its first private
line at Coimbatore with its head office at Chennai and five regional offices at Bangalore, Hyderabad,
Bhuwaneshwar, Trivandram and Coimbatore. Initially, the company was the only private player and
did not perceive any threat from the sole player in public sector. It had managed to get a net customer
base of more than 1 lakh in the state of Tamil Nadu alone. Now, in the quickly expanding telecom
sector new players were entering in the industry and some of them were well established, widely
diversified and financially secure companies.
The various functional areas of ITL were: Operations, sales and Marketing, Technical,
Finance and Accounts, Human Resources, IT, Materials, Limited mobility and quantity. The company
Semester 1 Examination Paper
IIBM Institute of Business Management
had a very tall structure (Appendix I) wherein there were 14 levels with the first 9 level at every
regional office and the other corporate level positions were at the corporate head office. The
Coimbatore region was headed by Kamal Kumar, a 56 year old engineer from an army background
who had taken VRS from the army to join the corporate sector. He had joined India Teletel after a
short stint at Moray Enterprise as a branch head. ITL at Coimbatore had the departments of
operations, sales, marketing, technical, finance and accounts which were headed by HOD of manager
level. Human resources was headed by Rakesh Sharma, Deputy Manager- HR, a 34 year old MBA
with HR specialization. He was with the company since 1997 and reported to regional head, Kamal
Kumar at Coimbatore and Sushil Kumar, Manager HR corporate office, Chennai. The Coimbatore
office had hardcore (technical) functions with employees in the average age 29 years and representing
all parts of the country. The male-female ratio was 90:10.ITL requited people on the basis of
employee’s suitability vis-à-vis the job requirement or competencies required to do the job
effectively. A detailed competency mapping exercise was undertaken for all the positions and each
individual’s competencies were identified and mapped against the desirable ones. All this was
document in the Role Description Directory, listing individual’s job responsibilities (KRAs)
competencies needed, performance areas and measurement parameters. This exercise was done
rigorously and updated at regular intervals. For this, the company would hire some international
consultancy firm every time. Individual employee’s performance, irrespective of the level was
monitored and feedback was given on the basis of the task assigned (as per individual’s KRAs) and
task completed (measurement parameters). For middle and higher levels, the feedback was given after
every six months and for junior levels it was given quarterly. This formed an essential part of the
Annual Performance Appraisal System. 360-degree appraisal system was followed for the higher
levels, whereas for lower levels it did not apply. The data generated out of this exercise was solely
used for the employee development. The promotion in the company was performance-based. The
high performers were identified and given fast track career growth in the company. The performance
assessment was an exhaustive process to be carried out in five steps. The first step was that an
individual would fill in the self-assessment from followed by his rating by his HOD on the five point
scale in terms of outstanding, very good, good, average, below average. In the third step, the
employee after discussing with his HOD, would sign the form and it was then sent to a normalization
committee which was constituted of HODs of all the departments. The committee would ensure that
the disagreements would be settled while maintaining the bell curve in performance reports. The
decision of the committee was passed on the HR. The last step was releasing of promotional/
increment letters. In order to motivate employees for higher performance, Performance Linked
Incentive (PLI) were also introduced. The PLI parameters with the corresponding weightage factors
were decided at the beginning of the year and depending upon the fulfillment of the target set in the
PLI parameters, rewards for good work done (monthly), performer of the quarter (POQ), CEO
performer of the award was given to the employees to recognize their contribution towards the growth
of the organization. For good work done, two lunch coupons worth Rs. 50 were given to people from
every functional area and for performer of the year, Rs. 1500/- was given to people from every
functional area and for performer of the year, Rs. 10,000/- was awarded which could be given to just
two or three people in the whole organization.
The company had also introduced a unique 6-sigma system to encourage creative and
innovative culture in the organization. The employees would register their suggestions on daily,
weekly and monthly basis and earn credit points for each suggestion if accepted and implemented.
These points were accumulated in the sigma system and the person earning the highest number of
points in the mid-term evaluation would be awarded a cash prize of Rs.30,000/-.In addition to this,
salary benchmarking was also done after two years to reduce disparity between the existing salary
structure of the company and the salary structure of the leading companies in the telecom industry
after reviewing the figures that would appear in the business bulletins. The company had n also
introduced the accident insurance, personal insurance, benevolent fund for the employee’s family in
case of natural death, insurance for spouse and family members, subject to the limit of designation
and the premium being reimbursed by the company. The company also had the practice of
celebrating birthdays, monthly fun days and breakfast meetings for the employees. For employees’
wives, there was Teletel Wives Welfare Association that would arrange tours, meals, Porting, gettogethers
and various contents to build a culture in the organization, wherein fun would be an intrinsic
part while not losing the business head’s wives. All the expenses were borne by the company.ITL
company had a strong belief in continuous employee development and therefore, gave a lot emphasis
on training every focus. The President, who would be CEO’s wife, headed this association and all
secretaries were regional employee was required undergo at least 11 Mondays training in a year in the
key result area. Training needs assessment and evaluation of training effectiveness were also the
important components of the training program. An individual was required to fill in the need
assessment from himself and performance assessment was also taken into consideration while
nominating an employee for training. There was a CEO development program too, at top
management levels. Technical training was conducted in-house whereas for behavioral training,
external consultants were hired. The company had a tie-up with three international agencies for
EDPs in quality and motivation. It gave weightage to various customer touch points and identified
and framed specific training modules. The company had also framed a policy of conducting openhouse
at various levels. The CEO was supposed to have it once in six months at different regional
offices, the Vice President once in three months and the Regional Head once in a month. Mostly, this
exercise could not be rigorously followed due to hectic schedules of the managers. Kamal Kumar, the
Regional Head and Rakesh Sharma HRD head at Coimbatore felt that the company had open culture
as they followed an open door communication policy. Moreover, low panel walls and open cabins
would further help the employees to have free and informal interactions. In spite of this the company
had a very high employee turnover. There was poaching from other players in the fast growing
telecommunication industry. Rakesh Sharma attributed this turnover to the lucrative packages offered
by their competitors and Kamal Kumar was losing sleep over the loss of trained employees to the
competitors. The competitors being well diversified and financially sound could bear the burnt of
losses whereas India Teletel could not afford loss.

1. How far do you think that that HR strategies are in alignment with the corporate
strategy of the company?

2. Had you been Kamal Kumar, what steps would you to minimize the employee
turnover?




Caselet 2
Dr. K.K. Chauhan was basically a research scholar and master in his field. He had a dream of
becoming an entrepreneur. His dream came true in 1966 when he started a small pharmaceutical bulk
drug-manufacturing unit named Kusum laboratories at Industrial Estate of Indore (M.P.), India. Soon,
other renowned scientists and scientists and scholars in the area of chemistry joined him. The team
researched and developed better and economic ways to manufacture bulk drugs like, Niacinamide,
Thiacetazone, Isoniazid, Probenecid and Chloroquine Phosphate.The products of Kusum laboratories,
by virtue of its quality and price became very popular and soon the list of customers included big
brands like Bayer, Merck & others. The company grew in name, fame and size and very soon had a
workforce of about 40 workers, 9 chemists and a factory manager to look after the production. The
high demand and completion of process called for 24 hours running of the factory and thus it was
run in three shifts giving an output of 3.5 metric tons per month. The workers were treated as family
members and Dr. Chauhan personally used to enquire about the welfare of the workers. The
laboratory increased in size day-by-day and new departments like administration, accounts, stores and
personal were formed. This changed the entire scenario and by 1987, the factory had a production
workforce of 60 workers, 12 chemists and a factory manager giving a production of 60 MT/annum.
From the year 1996 to 1998, Kusum laboratories had come a long way. Things had changed at all
levels and Dr. Chauhan was no execution. His earlier modest thinking that he was only a part of the
institution’s success had now yielded to an arrogant belief that success was due to him alone. This
myopic vision started reflecting in the output of the organization and the production level stopped
improving. To improve the production, the personnel manager appointed a few musclemen to
supervise the workers. This increased the production, but the joy was short-lived. Soon the
musclemen recognized their importance and the focus shifted from obtaining planned production to
self-attention. The workers were busy in favoring their supervisors and completely distracted from the
work they were hired for. The situation started deteriorating in all departments and as a result the
company was sold to ASV labs in 1988.ASV took an aggressive stand fired the so-called supervisors,
but paid little attention towards the workers. Though the fear of musclemen was no longer there but
the workers felt themselves neglected and de-motivated and thus, the production did not improve over
10MT/ month, and the company was taken over by KBCL in September 1994. KBCL was a
renowned name Indian pharmaceutical industry and was the brand leader in a couple of formulations.
It had multilocational production facilities with state-of-the-art plants at Aurangabad, Mahad,
Dombivali, and Ratlam.KBCL was brand leader in Chloroquine Phosphate formulations in India and
their in house requirement was more than the production output. The entry of China into bulk drugs
however changed the equations. The cost of imported Chloroquine Phosphate was quite low and the
competitors started using imported raw material in their formulations instead of buying indigenous
material, giving them a leverage of price. To defend the brand position with limitations in increasing
price in the market, KBCL had no choice but to reduce the cost of production of its Chloroquine or to
use imported raw material. The top management had a brainstorming session on whether to continue
production at Indore or to close the unit. After much deliberations, Suyash Modi, Vice President of
Aurangabad plant was given the responsibility to head the Indore unit. Suyash immediately worked
on modifying the processes and upgraded the plant. However, Suyash realized very soon that he
would not be able to achieve the production goals with de-motivated workers. He announced various
welfare programs for the workers like wage hike, in-house inter-department contests, acknowledging
the ideas and contributions of workers etc. This slightly motivated the workers, and they started
responding by increasing the production from 10 MT/ month to 36 MT/month. Plant Supervisor
Syriac was wondering why the workers, in spite of so many announcements, were not responding the
way he envisaged. Suyash asked Syriac to have patience. He said that let the workers feel that the
new team was their well-wisher and did not have the sole motto of profit. The workers though
listening to Suyash, still had their reservations in believing him. Suyash continued practicing what
he preached. He welcomed suggestions and ideas from the workers and also started converting ideas
into projects asking the ideas generator to become the leader, choose a team of his choice and
complete the projects. On successful completion of the project the impact of the project was evaluated
and then local or multi-location implementation was done. He began acknowledging the successful
efforts and ideas of the workers by classifying the ideas according their importance in five categories
ranging from one star to five star. Then, according to their weightage and applicability, single star
idea got a cash price of Rs. 75/- per head and five star idea was rewarded with a cash price of Rs.
500/- per head and a dinner along with his family with the M.D.Suyash also introduced Total Quality
Management (TQM) and started appraising the production batches on the parameters of yield and
quality. The standards were laid down and targets were given on a monthly basis. He then announced
that extra production than the standardized yield would be evaluated at 60% of manufacturing cost.
The evaluated money then would be divided equally amongst the entire staff from workers to the
Vice President, provided the assigned targets were achieved. This had a tremendous positive effect on
the thinking process of the workers. This not only increased accountability and involvement, but also
integrated the entire team. The wastages and manufacturing losses were dramatically controlled.
KBCL now was not an organization with departments but a unified team working for a common goal.
When asked about the success, Suyash commented that workers and management in KBCL were not
two different levels but they were a synergistic combination. This was obvious from the yield which
had touched the unbelievable records of 70 MT/month. This made KBCL the world’s largest
Chloroquine phosphate manufacturing unit. 60% of in-house production was being used for domestic
market and the company began exporting the rest to South Africa, Pakistan, CIS, and the Gulf
countries.

1. What additional compensation and reward system would you suggest apart from the ones
mentioned in the case?

2. If you had been in the place of Suyash, what measures would have recommended overcoming the
Chinese threat?



END OF SECTION B

Section C: Applied Theory (30 marks)
??This section consists of Long Questions.
??Answer all the questions.
??Each question carries 15 marks.
??Detailed information should form the part of your answer (Word limit 150-200 words).


1) What is manpower planning? Explain the various steps involved in the manpower
planning. Discuss its objectives.


2) What are Quality Circles? Examine the process involved in Quality Circles and evaluate
the advantages and disadvantages of quality circles.


END OF SECTION C
--------------------------------------------------------------***-------------------------------------------------------------

IIBM Exam papers: contact us for answers at assignmentssolution@gmail.com

Semester 1 Examination Paper
IIBM Institute of Business Management

Semester-1 Examination Paper MM.100

Human Resource Management



Section A: Objective Type (30 marks)
??This section consists of Multiple Choices & Short Notes type questions
??Answer all the questions.
??Part one questions carry 1 mark each & Part Two questions carry 5 marks each.

Part One:

Multiple choices:

1) Name the program which makes supervisor more alert, as it is his responsibility to rate his Subordinates
1. Periodic appraisal
2. Yearly appraisal
3. Monthly appraisal
4. Weekly appraisal

2) The HRD programmes fail due
1. Crime factor
2. Social justice
3. Inflation
4. Poverty

3) Name the recruitment process which is said to be a costly affair
1. Internal
2. External
3. International
4. National

4) In resent times, which department and head of the same usually initiates the manpower plan.
1. Operation department
2. production department
3. H R department
4. Logistics department
………………………..
9) Which is not the method of performance appraisal ?
1. Straight ranking method
2. Grading method
3. Group Appraisal
4. Circle Method

10) MBO Means
1. Management by Operation
2. Management by Organization
3. Management by Objectives
4. All the above



Part Two:
Q. 1 Explain the importance of Career Planning in industry.

Q. 2 Explain the nature of Human Resource Development. Examine its scope and nature.

Q. 3 Discuss the various Methods of Performance Appraisals?

Q. 4 Explain On-Job and Off Job Training.


END OF SECTION A






Section B: Caselets (40 marks)
??This section consists of Caselets.
??Answer all the questions.
??Each caselet carries 20 marks.
??Detailed information should form the part of your answer (Word limit 200-250 words).
Caselet 1
India Tele Linkages (ITL) was one of the pioneers to enter the telecom business in India in the private
sector. India T.L. was the only company to have brand recognition with its popular Tulip range of
telephones. ITL had restructured itself into a multi product/ service group by diversifying into other
telecom and non-telecom services like healthcare too. Its service venture included Chennai
operations, ITL cellular …………………
ative packages offered
by their competitors and Kamal Kumar was losing sleep over the loss of trained employees to the
competitors. The competitors being well diversified and financially sound could bear the burnt of
losses whereas India Teletel could not afford loss.

1. How far do you think that that HR strategies are in alignment with the corporate
strategy of the company?

2. Had you been Kamal Kumar, what steps would you to minimize the employee
turnover?




Caselet 2
Dr. K.K. Chauhan was basically a research scholar and master in his field. He had a dream of
becoming an entrepreneur. His dream came true in 1966 when he started a small pharmaceutical bulk
drug-manufacturing unit named Kusum laboratories at Industrial Estate of Indore (M.P.), India. Soon,
other renowned scientists and scientists and scholars in the area of chemistry joined him. The team
researched and developed better and economic ways to manufacture bulk drugs like, Niacinamide,
Thiacetazone, Isoniazid, Probenecid and Chloroquine Phosphate.The products of Kusum laboratories,
by virtue of its quality and price became very popular and soon the list of customers included big
brands like Bayer, Merck & others. The company grew in name, fame and size and very soon had a
workforce of about 40 workers, 9 chemists and a factory manager to look after the production. The
high demand and completion of process called for 24 hours running of the factory and thus it was
run in three shifts giving an output of 3.5 metric tons per month. The workers were treated as family
members and Dr. Chauhan personally used to enquire about the welfare of the workers. The
laboratory increased in size day-by-day and new departments like administration, accounts, stores and
personal were formed. This changed the entire scenario and by 1987, the factory had a production
workforce of 60 workers, 12 chemists and a ……………………..
world’s largest
Chloroquine phosphate manufacturing unit. 60% of in-house production was being used for domestic
market and the company began exporting the rest to South Africa, Pakistan, CIS, and the Gulf
countries.

1. What additional compensation and reward system would you suggest apart from the ones
mentioned in the case?

2. If you had been in the place of Suyash, what measures would have recommended overcoming the
Chinese threat?



END OF SECTION B

Section C: Applied Theory (30 marks)
??This section consists of Long Questions.
??Answer all the questions.
??Each question carries 15 marks.
??Detailed information should form the part of your answer (Word limit 150-200 words).


1) What is manpower planning? Explain the various steps involved in the manpower
planning. Discuss its objectives.


2) What are Quality Circles? Examine the process involved in Quality Circles and evaluate
the advantages and disadvantages of quality circles.


END OF SECTION C
--------------------------------------------------------------***-------------------------------------------------------------

IIBM Exam papers/case studies: contact us for answers at assignmentssolution@gmail.com



MASTER’S PROGRAM IN BUSINESS ADMINISTRATION

Case I

McDonald’s: Serving Fast Food Around the World

Ray Kroc opened the first McDonald’s restaurant in 1955.  He offered a limited menu of high-quality, moderately-priced food served fast in spotless surroundings. McDonald’s “QSC&V” (quality, service, cleanliness, and value) was a hit.  The chain expanded into every state in the nation.  By 1983 it had more than 6000 restaurants in the United States and by 1995 it had more than 18,000 restaurants in 89 countries, located in six continents.  In 1995 alone, the company built 2,400 restaurants.
    In 1967 McDonald’s opened its first restaurant outside the United States, in Canada.  Since then, the international growth accelerated.  In 1995, the “Big Six” countries that provide about 80 percent of the international operating income are: Canada, Japan, Germany, Australia, France, and England.  In the same year, more that 7000 restaurants in 89 countries generated sales of $14 billion. Yet fast food has barely touched many cultures.  The opportunities for expanding the market are great when one realizes that 99 percent of the world population is not yet McDonald’s customers.  For example, in China, with a population of 1.2 billion people, there are only 62 McDonald’s restaurants (1995).  McDonald’s vision is to be the major player in food services around the world.
    In Europe, McDonald maintains a small percentage of restaurant sales but commands a large share of the fast food market.  It took the company 14 years of planning before it opened a restaurant in Moscow in 1990.  But the planning paid off.  After the opening, people were standing in line up to 2 hours for a hamburger.  It has been said that McDonald’s restaurant in Moscow attracts
more visitors – on an average 27,000 daily than Lenin’s mausoleum (about  9,000 people)  which used to be the place to see.  The Beijing opening in 1982 ….
(halt the Japanese market) in 1996 compared to only 43 Burger King restaurants.  However, the British food conglomerate Grand Metropolitan PLC that owns Burger King has an aggressive strategy for Asia.  Although McDonald’s is in a very favourable competitive position at this time, can this success continue ?

Questions :
1.    What opportunities and threats did McDonald’s face ? How did it     handle them  ? What alternatives could it have chosen ?
2.    Before McDonald’s entered the European market, few people     believed that fast food could be successful in Europe. Why do you     think McDonald’s has succeeded ?  What strategies did it follow ?      How did these differ from its strategies in Asia ?
3.    What is McDonald’s basic philosophy ? How does it enforce this     philosophy and adapt to different environments ?
4.    Should McDonald’s expand its menu ? If you say no, then why not ?     If you say yes, what kinds of precuts should it add ?
5.    Why is McDonald’s successful in many countries around the world ?

















Case No. :2
 Developing Verifiable Goals
The division manager had recently heard a lecture on management by objectives.  His enthusiasm, kindled at that time, tended to grow the more …..
for finance, marketing, production, engineering, and administration. However you state them, I will expect them to add up to the realization of the division goals.’’

Questions :
1. Can a division manager develop verifiable goals, or objectives, when the president has not assigned them to him or her? How? What king of information or help do you believe is important for the division manager to have from headquarters?

2. Was the division manager setting goals in the best way? What would you have
    done?

Case No. :3
The Daimler-Chrysler Merger: A New World Order?

In May 1998, Daimler-Benz, the biggest industrial firm in Europe and Chrysler, the third largest carmaker in the US merged. The carefully planned merger seemed to be a ``strategic fit.’’ Chrysler with its lower-priced cars, light trucks, pickups, and its successful minivans appeared to complement Daimler’s luxury cars, commercial vehicles, and sport utilities. There was little product-line overlap with the exception of the Chrysler’s Jeep and Daimler’s Mercedes M-Class sport utility vehicles.
    The merger followed a trend of other consolidations. General Motors owns 50 percent of Swedish Saab AB and has subsidiaries Opel in Germany and Vaxuhall in England. Ford acquired British Jaguar and Aston Martin. The German carmaker BMW acquired British Rover, and Rolls Royce successfully sold its interests to Volkswagen and BMW…..
 only one – in Germany.
Both the Americans and Germans can learn from each other. Germans need to write shorter reports, be more flexible, reduce bureaucracy, and speed up managerial decision making. American mangers, on the other hand, hope to learn from the Germans. As one Chrysler employee said: ``One of the real benefits to us is instilling some discipline that we know we needed but weren’t able to inflict on ourselves.’’

Questions :
1.    Evaluate the formulation of the merger between Daimler and     Chrysler. Discuss the strategic fit and the different product lines.
2.    Assess the international perspectives of Eaton and Schrempp.
3.    What are the difficulties in merging the organizational cultures of     the two companies?
4.    What is the probability of success of failure of the merger? What other mergers do you foresee in the car industry?









Case : 4
Re-engineering the Business Process at Procter & Gamble
Procter & Gamble (P&G), a multinational corporation, known for its products that include diapers, shampoo, soap, and tooth-paste, was committed to improve value to the customer. Its products were sold through various chanels such as grocery retailers, wholesalers, mass merchandisers, and club stores. The flow of goods in the retail grocery channel was from the factory’s warehouse to the distributor’s warehouses, to the stores where the grocery stores where customers selected the merchandise from the shelves.
The improvement-driven company was not satisfied with its performance and developed a variety of programs to improve the service and efficiency of its operation. One such program was the electronic data inter-change (EDI) that provided daily information about shipments from the retail stores to P & G. the installation of the system resulted in better service, reduced inventory levels, and labor cost savings. Another approach, the continuous replenishment program (CRP), provided additional benefits for P & G as ….
similar brands. The category managers were also held responsible for profits of a product categories for all stores. The switch to category management required not only new skills, but also a new attitude.

Questions :
1.    The re-engineering efforts focused on the business process system. Do you think other processes, such as the human system, or other managerial policies need to be considered in a process redesign?
2.    What do you think was the reaction of the brand managers, who may have worked under the old system for many years, when the     category management structure was installed?
3.    As a consultant, would you have recommended a top-down or     bottom-up approach, or both, to process redesign and     organizational change? What are the advantages and disadvantages of each approach?

Case No. : 5
Managing the Hewlett Packard Way

William R. Hewlett and David Packard are two organizational leaders who demonstrated a unique managerial style. They began their operation in a one-car garage in 1939 with $538 and eventually built a very successful company that now produces more than 10,000 products, such as computers, peripheral equipment, test and measuring instruments, and handheld calculators. Perhaps even better known than its products is the distinct managerial style preached and practiced at Hewlett-Packard (HP). It is known as the HP Way.
            ``What is the HP Way?

I feel that in general terms it is the policies and actions that flow from the belief that men and women want to do a good job, a creative job, and that if they are provided the proper environment they will do so.’’ Bill Hewlett, HP CoFounder

    The values of the founders – who withdrew from active management in 1978 – still permeate the organization. The HP Way emphasizes honesty, a strong belief in the value of people, and customer satisfaction. The managerial style also emphasizes an open-door policy, which promotes team effort. Informality in personal relationships is illustrated by the use of first names. Management by objectives is supplemented by what is known as managing by wandering around. By strolling through the organization, top managers keep in touch with what is really going on in the company.
    This informal organizational climate does not mean that the organization structure has not changed. Indeed, the organizational changes in the 1980s in response to environmental changes were quite painful. However, these changes resulted in extraordinary company growth during the 1980s.

Questions:
1.    Is the Hewlett – Packard way of managing creating a climate in which employees are motivated to contribute to the aims of the organization? What is unique about the HP Way?
2.    Would the HP managerial style work in any organization? Why, or     why not? What are the conditions for such a style to work?

Case No.: 6
 Quality as the Key Success Factor In Winning the Global Car War
Massachusetts institute of Technology (MIT) conducted an extensive study of the global car industry that compared operations at General Motors, Toyota, and the joint venture between GM and Toyota, the New United Motor Manufacturing Inc. (NUMMI) plaint in Fremont, California. The result of the study should raise some very disturbing questions about the quality and productivity of American operations, namely:
•    Why did GM’s Framingham plant require 31 hours to assemble a car when the Toyota plant only required 16 hours- or roughly half the time?
•    Why did the GM plant average ….
operating in Japan. Clearly, U.S. and especially European firms need much improvement in productivity and quality to be competitive in the global market.

Questions:
1.    In the NUMMI joint venture, what did Toyota gain? What were the     benefits for General Motors?
2.    As a consultant, what strategies would you recommend for European     carmakers     to improve their competitive position in the     global car industry?


Friday 30 January 2015

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Semester 1 Examination Paper
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Human Resource Management
Section A: Objective Type (30 marks)
??This section consists of Multiple Choices & Short Notes type questions
??Answer all the questions.
??Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1) Name the program which makes supervisor more alert, as it is his responsibility to rate his
Subordinates
1. Periodic appraisal
2. Yearly appraisal
3. Monthly appraisal
4. Weekly appraisal
2) The HRD programmes fail due
1. Crime factor
2. Social justice
3. Inflation
4. Poverty
3) Name the recruitment process which is said to be a costly affair
1. Internal
2. External
3. International
4. National
4) In resent times, which department and head of the same usually initiates the manpower plan.
1. Operation department
2. production department
3. H R department
4. Logistics department
Semester 1 Examination Paper
IIBM Institute of Business Management
5) The job evaluation programme once installed must be continued on a ________ basis.
1. Permanent
2. Unplanned
3. Planned
4. Daily
6) The process of 360 Degree appraisal is broken into two stages - planning and _________.
1. Succession
2. Implementation
3. Non planning
4. Action planning
7) Human resource management is responsible for getting the best people, training and providing
mechanism to achieve organization ____________.
1. Goal
2. Target
3. loss
4. profit
8) The process of analyzing jobs from which job descriptions are developed are called ________.
1. Company analysis
2. Job Analysis
3. Appraisal
4. Job enrichment
9) Which is not the method of performance appraisal ?
1. Straight ranking method
2. Grading method
3. Group Appraisal
4. Circle Method
10) MBO Means
1. Management by Operation
2. Management by Organization
3. Management by Objectives
4. All the above
Semester 1 Examination Paper
IIBM Institute of Business Management
Part Two:
Q. 1 Explain the importance of Career Planning in industry.
Q. 2 Explain the nature of Human Resource Development. Examine its scope and nature.
Q. 3 Discuss the various Methods of Performance Appraisals?
Q. 4 Explain On-Job and Off Job Training.
END OF SECTION A
Section B: Caselets (40 marks)
??This section consists of Caselets.
??Answer all the questions.
??Each caselet carries 20 marks.
??Detailed information should form the part of your answer (Word limit 200-250 words).
Caselet 1
India Tele Linkages (ITL) was one of the pioneers to enter the telecom business in India in the private
sector. India T.L. was the only company to have brand recognition with its popular Tulip range of
telephones. ITL had restructured itself into a multi product/ service group by diversifying into other
telecom and non-telecom services like healthcare too. Its service venture included Chennai
operations, ITL cellular and the cellular licensee in Andhra territory. After distributing different areas
among different groups of companies, ITL also ventured into manufacturing of transmission
equipments. In fact, ITL was the first company to get ISO 9002 accreditation in India. In the year
2000, it entered into a tie-up with LDC Telecom, Oman to manufacture SDH, digital control
multiplier and some network access products. The company registered total sales of RS. 76 crores in
1995-96, a 22% growth over previous year’s figure of Rs.62.4 crores. The net profit was Rs. 9.14
crores, a growth of 67.7% over the previous year’s figure of Rs. 5.45 crores. ITL had forged an
alliance with the global giant German Telecom for a complete range of office automation products.
The company had started distributing ISDN handsets and terminal adapters. The company had also
set up a joint venture with Tkahami Ltd., Japan to manufacture pagers.ITL had chosen a strategy of
building brands whether it was Tulip in telephone instruments or Spacetel in cellular services. As the
third step in the growth of India Tele linkages, it was granted license to provide basic telephone
services in telecom circle of the state of Tamil Nadu by the Ministry of Communications,
Government of India on April 18, 1998. On August 4, 1999 India Tele Linkages set up its first private
line at Coimbatore with its head office at Chennai and five regional offices at Bangalore, Hyderabad,
Bhuwaneshwar, Trivandram and Coimbatore. Initially, the company was the only private player and
did not perceive any threat from the sole player in public sector. It had managed to get a net customer
base of more than 1 lakh in the state of Tamil Nadu alone. Now, in the quickly expanding telecom
sector new players were entering in the industry and some of them were well established, widely
diversified and financially secure companies.
The various functional areas of ITL were: Operations, sales and Marketing, Technical,
Finance and Accounts, Human Resources, IT, Materials, Limited mobility and quantity. The company
Semester 1 Examination Paper
IIBM Institute of Business Management
had a very tall structure (Appendix I) wherein there were 14 levels with the first 9 level at every
regional office and the other corporate level positions were at the corporate head office. The
Coimbatore region was headed by Kamal Kumar, a 56 year old engineer from an army background
who had taken VRS from the army to join the corporate sector. He had joined India Teletel after a
short stint at Moray Enterprise as a branch head. ITL at Coimbatore had the departments of
operations, sales, marketing, technical, finance and accounts which were headed by HOD of manager
level. Human resources was headed by Rakesh Sharma, Deputy Manager- HR, a 34 year old MBA
with HR specialization. He was with the company since 1997 and reported to regional head, Kamal
Kumar at Coimbatore and Sushil Kumar, Manager HR corporate office, Chennai. The Coimbatore
office had hardcore (technical) functions with employees in the average age 29 years and representing
all parts of the country. The male-female ratio was 90:10.ITL requited people on the basis of
employee’s suitability vis-à-vis the job requirement or competencies required to do the job
effectively. A detailed competency mapping exercise was undertaken for all the positions and each
individual’s competencies were identified and mapped against the desirable ones. All this was
document in the Role Description Directory, listing individual’s job responsibilities (KRAs)
competencies needed, performance areas and measurement parameters. This exercise was done
rigorously and updated at regular intervals. For this, the company would hire some international
consultancy firm every time. Individual employee’s performance, irrespective of the level was
monitored and feedback was given on the basis of the task assigned (as per individual’s KRAs) and
task completed (measurement parameters). For middle and higher levels, the feedback was given after
every six months and for junior levels it was given quarterly. This formed an essential part of the
Annual Performance Appraisal System. 360-degree appraisal system was followed for the higher
levels, whereas for lower levels it did not apply. The data generated out of this exercise was solely
used for the employee development. The promotion in the company was performance-based. The
high performers were identified and given fast track career growth in the company. The performance
assessment was an exhaustive process to be carried out in five steps. The first step was that an
individual would fill in the self-assessment from followed by his rating by his HOD on the five point
scale in terms of outstanding, very good, good, average, below average. In the third step, the
employee after discussing with his HOD, would sign the form and it was then sent to a normalization
committee which was constituted of HODs of all the departments. The committee would ensure that
the disagreements would be settled while maintaining the bell curve in performance reports. The
decision of the committee was passed on the HR. The last step was releasing of promotional/
increment letters. In order to motivate employees for higher performance, Performance Linked
Incentive (PLI) were also introduced. The PLI parameters with the corresponding weightage factors
were decided at the beginning of the year and depending upon the fulfillment of the target set in the
PLI parameters, rewards for good work done (monthly), performer of the quarter (POQ), CEO
performer of the award was given to the employees to recognize their contribution towards the growth
of the organization. For good work done, two lunch coupons worth Rs. 50 were given to people from
every functional area and for performer of the year, Rs. 1500/- was given to people from every
functional area and for performer of the year, Rs. 10,000/- was awarded which could be given to just
two or three people in the whole organization.
The company had also introduced a unique 6-sigma system to encourage creative and
innovative culture in the organization. The employees would register their suggestions on daily,
weekly and monthly basis and earn credit points for each suggestion if accepted and implemented.
These points were accumulated in the sigma system and the person earning the highest number of
points in the mid-term evaluation would be awarded a cash prize of Rs.30,000/-.In addition to this,
salary benchmarking was also done after two years to reduce disparity between the existing salary
structure of the company and the salary structure of the leading companies in the telecom industry
after reviewing the figures that would appear in the business bulletins. The company had n also
introduced the accident insurance, personal insurance, benevolent fund for the employee’s family in
case of natural death, insurance for spouse and family members, subject to the limit of designation
Semester 1 Examination Paper
IIBM Institute of Business Management
and the premium being reimbursed by the company. The company also had the practice of
celebrating birthdays, monthly fun days and breakfast meetings for the employees. For employees’
wives, there was Teletel Wives Welfare Association that would arrange tours, meals, Porting, gettogethers
and various contents to build a culture in the organization, wherein fun would be an intrinsic
part while not losing the business head’s wives. All the expenses were borne by the company.ITL
company had a strong belief in continuous employee development and therefore, gave a lot emphasis
on training every focus. The President, who would be CEO’s wife, headed this association and all
secretaries were regional employee was required undergo at least 11 Mondays training in a year in the
key result area. Training needs assessment and evaluation of training effectiveness were also the
important components of the training program. An individual was required to fill in the need
assessment from himself and performance assessment was also taken into consideration while
nominating an employee for training. There was a CEO development program too, at top
management levels. Technical training was conducted in-house whereas for behavioral training,
external consultants were hired. The company had a tie-up with three international agencies for
EDPs in quality and motivation. It gave weightage to various customer touch points and identified
and framed specific training modules. The company had also framed a policy of conducting openhouse
at various levels. The CEO was supposed to have it once in six months at different regional
offices, the Vice President once in three months and the Regional Head once in a month. Mostly, this
exercise could not be rigorously followed due to hectic schedules of the managers. Kamal Kumar, the
Regional Head and Rakesh Sharma HRD head at Coimbatore felt that the company had open culture
as they followed an open door communication policy. Moreover, low panel walls and open cabins
would further help the employees to have free and informal interactions. In spite of this the company
had a very high employee turnover. There was poaching from other players in the fast growing
telecommunication industry. Rakesh Sharma attributed this turnover to the lucrative packages offered
by their competitors and Kamal Kumar was losing sleep over the loss of trained employees to the
competitors. The competitors being well diversified and financially sound could bear the burnt of
losses whereas India Teletel could not afford loss.
1. How far do you think that that HR strategies are in alignment with the corporate
strategy of the company?
2. Had you been Kamal Kumar, what steps would you to minimize the employee
turnover?
Caselet 2
Dr. K.K. Chauhan was basically a research scholar and master in his field. He had a dream of
becoming an entrepreneur. His dream came true in 1966 when he started a small pharmaceutical bulk
drug-manufacturing unit named Kusum laboratories at Industrial Estate of Indore (M.P.), India. Soon,
other renowned scientists and scientists and scholars in the area of chemistry joined him. The team
researched and developed better and economic ways to manufacture bulk drugs like, Niacinamide,
Thiacetazone, Isoniazid, Probenecid and Chloroquine Phosphate.The products of Kusum laboratories,
by virtue of its quality and price became very popular and soon the list of customers included big
brands like Bayer, Merck & others. The company grew in name, fame and size and very soon had a
workforce of about 40 workers, 9 chemists and a factory manager to look after the production. The
high demand and completion of process called for 24 hours running of the factory and thus it was
run in three shifts giving an output of 3.5 metric tons per month. The workers were treated as family
members and Dr. Chauhan personally used to enquire about the welfare of the workers. The
Semester 1 Examination Paper
IIBM Institute of Business Management
laboratory increased in size day-by-day and new departments like administration, accounts, stores and
personal were formed. This changed the entire scenario and by 1987, the factory had a production
workforce of 60 workers, 12 chemists and a factory manager giving a production of 60 MT/annum.
From the year 1996 to 1998, Kusum laboratories had come a long way. Things had changed at all
levels and Dr. Chauhan was no execution. His earlier modest thinking that he was only a part of the
institution’s success had now yielded to an arrogant belief that success was due to him alone. This
myopic vision started reflecting in the output of the organization and the production level stopped
improving. To improve the production, the personnel manager appointed a few musclemen to
supervise the workers. This increased the production, but the joy was short-lived. Soon the
musclemen recognized their importance and the focus shifted from obtaining planned production to
self-attention. The workers were busy in favoring their supervisors and completely distracted from the
work they were hired for. The situation started deteriorating in all departments and as a result the
company was sold to ASV labs in 1988.ASV took an aggressive stand fired the so-called supervisors,
but paid little attention towards the workers. Though the fear of musclemen was no longer there but
the workers felt themselves neglected and de-motivated and thus, the production did not improve over
10MT/ month, and the company was taken over by KBCL in September 1994. KBCL was a
renowned name Indian pharmaceutical industry and was the brand leader in a couple of formulations.
It had multilocational production facilities with state-of-the-art plants at Aurangabad, Mahad,
Dombivali, and Ratlam.KBCL was brand leader in Chloroquine Phosphate formulations in India and
their in house requirement was more than the production output. The entry of China into bulk drugs
however changed the equations. The cost of imported Chloroquine Phosphate was quite low and the
competitors started using imported raw material in their formulations instead of buying indigenous
material, giving them a leverage of price. To defend the brand position with limitations in increasing
price in the market, KBCL had no choice but to reduce the cost of production of its Chloroquine or to
use imported raw material. The top management had a brainstorming session on whether to continue
production at Indore or to close the unit. After much deliberations, Suyash Modi, Vice President of
Aurangabad plant was given the responsibility to head the Indore unit. Suyash immediately worked
on modifying the processes and upgraded the plant. However, Suyash realized very soon that he
would not be able to achieve the production goals with de-motivated workers. He announced various
welfare programs for the workers like wage hike, in-house inter-department contests, acknowledging
the ideas and contributions of workers etc. This slightly motivated the workers, and they started
responding by increasing the production from 10 MT/ month to 36 MT/month. Plant Supervisor
Syriac was wondering why the workers, in spite of so many announcements, were not responding the
way he envisaged. Suyash asked Syriac to have patience. He said that let the workers feel that the
new team was their well-wisher and did not have the sole motto of profit. The workers though
listening to Suyash, still had their reservations in believing him. Suyash continued practicing what
he preached. He welcomed suggestions and ideas from the workers and also started converting ideas
into projects asking the ideas generator to become the leader, choose a team of his choice and
complete the projects. On successful completion of the project the impact of the project was evaluated
and then local or multi-location implementation was done. He began acknowledging the successful
efforts and ideas of the workers by classifying the ideas according their importance in five categories
ranging from one star to five star. Then, according to their weightage and applicability, single star
idea got a cash price of Rs. 75/- per head and five star idea was rewarded with a cash price of Rs.
500/- per head and a dinner along with his family with the M.D.Suyash also introduced Total Quality
Management (TQM) and started appraising the production batches on the parameters of yield and
quality. The standards were laid down and targets were given on a monthly basis. He then announced
that extra production than the standardized yield would be evaluated at 60% of manufacturing cost.
The evaluated money then would be divided equally amongst the entire staff from workers to the
Vice President, provided the assigned targets were achieved. This had a tremendous positive effect on
the thinking process of the workers. This not only increased accountability and involvement, but also
integrated the entire team. The wastages and manufacturing losses were dramatically controlled.
Semester 1 Examination Paper
IIBM Institute of Business Management
KBCL now was not an organization with departments but a unified team working for a common goal.
When asked about the success, Suyash commented that workers and management in KBCL were not
two different levels but they were a synergistic combination. This was obvious from the yield which
had touched the unbelievable records of 70 MT/month. This made KBCL the world’s largest
Chloroquine phosphate manufacturing unit. 60% of in-house production was being used for domestic
market and the company began exporting the rest to South Africa, Pakistan, CIS, and the Gulf
countries.
1. What additional compensation and reward system would you suggest apart from the ones
mentioned in the case?
2. If you had been in the place of Suyash, what measures would have recommended overcoming the
Chinese threat?
END OF SECTION B
Section C: Applied Theory (30 marks)
??This section consists of Long Questions.
??Answer all the questions.
??Each question carries 15 marks.
??Detailed information should form the part of your answer (Word limit 150-200 words).
1) What is manpower planning? Explain the various steps involved in the manpower
planning. Discuss its objectives.
2) What are Quality Circles? Examine the process involved in Quality Circles and evaluate
the advantages and disadvantages of quality circles.
END OF SECTION C
--------------------------------------------------------------***-------------------------------------------------------------

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IIBM Institute of Business Management
Examination Paper MM.100
Human Resource Development & Training
Section A: Objective Type (30 marks)
•?This section consists of Multiple Choice and Short answer type questions.
•?Answer all the questions.
•?Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1) Who used the term ‘Intellectual Capital’ for the first time?
a. Alvin Toffler
b. Tseng and Jiao
c. J K Galbraith
d. Rouibah and Ould-al
2) Organizational behavior is a:
a. Micro perspective
b. Macro perspective
c. Neo perspective
d. Latent perspective
3) Ethics in H R Development means:
a. Accepted behavior
b. Rejected behavior
c. Unexpected behavior
d. There is no term like, in HRD
4) What does ‘s’ stands for in COPS for conducting a detail HR analysis?
a. Shell
b. Swap
c. System
d. Site
5) In generic HRD model, training and development lies:
a. At bottom level
b. In middle level
c. A top level
d. Not a part of this model
6) Under the development part, the instructors use to focus on:
a. Skills of the learner
b. Process of the learner
c. Concepts of the learner
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
d. No focus
7) Gap is:
a. The difference between competency model and current state
b. The difference between ideal state and current state
c. The difference between ideal state and competency model
d. None of the above
8) According to Hamblin there are …… levels at which evaluation can be made.
a. 3
b. 4
c. 5
d. 7
9) Norm reference tests are:
a. Tests designed to measure degree of learning
b. To maximize the individual differences an for comparing them with externals.
c. To test the learner has mastered the taught one or not.
d. None of the above
10) David Kolb gave the idea that learning is a:
a. Linear process
b. Slow process
c. Unlimited process
d. Circular process
Part Two:
1. Explain PCMM (People Capability Maturity Model) approach for HRD.
2. Write a short note on ‘HRD Strategy model’.
3. Explain the utility of ‘Training Process Pyramid’.
4. What are ‘on-the-job’ and ‘off-the-job’ techniques of training and development?
END OF SECTION A
Examination Paper: Human Resource Management
3
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Introduction to the organization:
XYZ Company was established 20 years ago, to manufacture gearbox components for diesel
engines. It employs around 250 people, having a head office, which employs a wide range of
personnel who are generally well educated and enthusiastic about their work, and a factory, which
employs semi-skilled local people who are generally disinterested in the products of the company
and who have an instrumental attitude to work, seeing salary as the only reward.
Brief Description of the Problem:
The performance of the Company has not been good and the records revealed the following facts:
•?Wastage within the factory was costing the Company approximately Rs. 100,000 a month.
•?There was wide spread differences in individual work standards
•?Processes were non-standardized resulting in repeated problems
•?Management made all decisions and cascaded the result down to employees
•?The top management became concerned about the performance of the factory and they hired Mr.
Tanmoy Deb, an OD consultant to study the problem and suggest specific changes to
relationships and tasks with the following objectives:
•?To review and improve communication systems.
•?To restructure the organization and to review teamwork and quality practices.
•?To review leadership issues across all levels.
Mr. Tanmoy Deb carried out discussions, interviews and surveys and made the following
observations:
•?There’ and ‘us’ attitude was widely prevalent between head office and factory personnel
•?Production personnel lacked technical skills
•?Factory employees felt alienated from sharing the Company’s success
•?Production systems were adhoc and defective because of frequent variations in standards set
•?Many times raw material was found to be of inferior quality
•?Rigidly defined job descriptions
Questions:
1. What in your view are the central human resources issues involved in this case?
2. What strategy should Mr. Tanmoy Deb develop and implement for improving the present
system?
Examination Paper: Human Resource Management
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IIBM Institute of Business Management
Caselet 2
Introduction to the organization:
XYZ Company is an existing profit making FMCG Company. The company has 600 personnel
and has branches all other the country. It has a separate training department with a Training
Manager, Mr. A.P. Mohan as its head who is supported by two qualified training officers. Mr.
Mohan has been in the company for the last 8 years and is very efficient.
Brief Description of the Problem:
Mr. Mohan wants to leave the organization. He is fed up with organizational politics. He is
dissatisfied and infact frustrated. There are several reasons attached to it. First and foremost is
that he is not paid adequately despite the fact that he has brought 12% growth in revenue to the
company. Second reason is that he is not consulted and constantly neglected while making
decisions on training aspects. Lastly, he considers himself to be a victim of politics played in the
organization. Production Manager is constantly hurting him and interferes with the work. Dr.
Ashok Sarao, boss of Mr. A.P. Mohan does not want him to leave the organization, as he knows
that the effectively will come down if he leaves. Dr. Ashok tries to convince Mohan that he
should adjust himself with the environment and also talk of how Mohan is constantly neglected.
He talks of how politics is played in the organization and strengths and weaknesses of Mohan but
does nothing to convince Mohan. Rather he says that they have to adjust, as they are part of
family run business. In this setting, personal equation rather than merit works. Mohan is not
convinced, and says he is leaving.
Questions:
1. Why a high performer like Mr. Mohan decided to leave the organization he has been long
part of?
2. Do you think Mr. A.P. Mohan took the right decision to leave the organization? What would
you have done if you were in his shoes?
END OF SECTION B
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Trace out the changing paradigm of growth. Why has human resource development assume
greater importance in present time?
2. Training effectiveness is crucial for the success of the training department. How will you
ensure it?
END OF SECTION C

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CASE – 1 



Aravali Hospital was built two years ago, and currently has a workforce of 215 people. The hospital is small, but because it is new, it is extremely efficient. The board has voted to increase its capacity from 60 to 180 beds. By this time next year, the hospital will over three times as large as now, in terms of both beds and personnel.
     The administrator, Maya Joshi, feels that the major problem with this proposed increase is that hospital will lose its efficiency. “I want to hire people who are just like our current team of personnel—hardworking, dedicated talented, and able to interact well with patients. If we triple the number of employees, I do not see how it will …., and then formulate a plan of action.

Questions

1.                  What can Joshi and her staff do to select the type of entry-level candidates they want?

2.                  How can Joshi ensure that those who are hired come to accept the core cultural values of the hospital? What steps would you recommend?













CASE – 2



Leo Medical Diagnostic and Research Center has patented its new invention of poly fiber cardiovascular valve. The product developed is a novel one and can be manufactured at a very low cost. The utility and life of the product in laboratory testing was found to be more than the life of the patients. The product could enhance the life of patient by at least five years. Considering all these factors Leo Medical Diagnostic and Research Center chose to set a unit to manufacture the product. However, the company has a dilemma. As the product is new and requires the acceptance of medical community, it is considering appointing a promotion and sales co-coordinator to manage the promotional and communication efforts of the firm.



Questions



    (a)            Do you think the number of units of a product to be manufactured is a random number? Explain your reasoning.

   (b)            How does one determine the number of units of a product to be manufactured in an organisation?

    (c)            What are the elements you would take into consideration for forecasting the production and sales requirement of the product developed by Leo Medical Center?

   (d)            How would you go about planning and organising the manufacturing and selling efforts of the organisation?









CASE – 3



Hari Mohan has a position on the corporate planning staff of a large company in a high technology industry. Although he has spent most of his time on long-range, strategic planning for the company, he has been appointed to a task force to reorganize the company. The president and the board of directors are concerned that they are losing their competitive position in the industry because of an outdated organisation structure. Being a planning expert, Hari Mohan convinced the task force that they should proceed by first determining exactly what type of structure they have now, then determining what type of environment the company faces, now and in the future, and then designing the organisation structure accordingly. In the first phase, they discovered that the organisation is currently structured along classic bureaucratic lines. In the second phase, they found that they are competing in a highly dynamic, rapidly growing and uncertain environment that requires a great deal of flexibility and response to change.



Questions



          (a)      What type or types of organisation design do you feel this task force should recommend in the third and final phase of the approach to their assignment?

         (b)      Explain how the systems and the contingency theories of organisation can each contribute to the analysis of this case.

          (c)      Do you think Hari Mohan was correct in his suggestion of how the task force should proceed? What types of problems might develop as by-products of the recommendation you made in question 1?









CASE – 4



Bharat Engineering Works Limited is a major industrial machineries besides other engineering products. It has enjoyed market preference for its machineries because of limited competition in the field. Usually there have been more orders than what the company could supply. However, the scenario changed quickly because of the entry of two new competitors in the field with foreign technological collaboration. For the first time, the company faced problem in marketing its products with usual profit margin. Sensing the likely problem, the chief executive appointed Mr Arvind Kumar as general manager to direct the operations of industrial machinery division. Mr Kumar had similar assignment abroad before coming back to India.
....could easily increase production efficiency by at least 20 per cent within a very short period without any major capital outlay.





Questions



          (a)      Discuss the nature and characteristics of the problems in this case.

         (b)      What steps should be taken by Mr Kumar to overcome these problems?















CASE – 5 



The president of Simplex Mills sat at his desk in the hushed atmosphere, so typical of business offices, after the close of working hours. He was thinking about Rehman, the manager in-charge of purchasing, and his ability to work with George, the production manager, and Vipulabh, the marketing and sales manager in the firm.

When the purchasing department was established two years ago, both George and Vipulabh agreed with the need to centralise this function and place a specialist in charge. George was of the view that this would free his supervisors from detailed ordering activities. Vipulabh opined that the flow of materials into the firm was important enough to warrant a specialised management assignment. Yet since the purchasing



Questions:

1.                  Is George’s view of the situation realistic?

2.                  How do you evaluate Vipulabh’s position?

3.                  How might this conflict be associated with factors in the formal organisation?

4.                  What should the president of Simplex Mills do now?

Thursday 29 January 2015

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Examination Paper: Hospitality Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospitality Management
Section A: Objective Type (30 marks)
•?This section consists of True and False.
•?Answer all the questions.
•?Each question carries 3 marks.
True and False:
1. ADA stands for………………………………………………………………………………
2. NOT stands for National Offices of Tourism.
3. Management contracts have been responsible for the hotel industry’s rapid boom since the
1960s.
4. High-speed Internet service is free form of information technology that these businesses can
utilize.
5. One of the most crucial IT decisions is choosing the right POS system.
6. Forecasting is the prediction of present outcomes.
7. The top independent restaurant in terms of sales is the Tavern on the Green in New York
City, which opened in 1976.
8. A fine dining restaurant is one where a good selection of seat arranged is offered.
9. Terms to understand in B&I foodservices are contractors, self-operators, & Liaison
personnel.
10. Every manager must function as a leader, motivating and encouraging employees is called
spokesperson role.
END OF SECTION A
Examination Paper: Hospitality Management
2
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Airline Commission Caps
Travel agents have begun legal action and public campaigns to combat several airlines’ decisions to
lower commissions for writing tickets, and have warned of higher ticket costs if other airlines follow.
Most U.S. airlines have lowered the commission rate on tickets for domestic flights to a $20 cap for a
round-trip fare. International commissions also fell and vary from airline to airline.As consumers
begin to balk at rising prices and Wall Street presses for continued earnings growth, airlines must cut
costs by turning to their second largest expense, the $12 billion spent annually for costs such as travel
agent commissions. It has become clear that airlines can do nothing about fuel prices management has
any power over is the area of distinction expenses.American Express Corporate Services Agencies,
which books mostly business travelers, warned that if other airlines follow suit, some travel agencies
will go out of business. That would send more businesses to airlines’ reservation agents, who do not
offer the lowest available fares from all carries, or could result in travel agents passing costs along to
consumers.The American Society of Travel Agents, which represent 24,000 agents, and The
Association of Retail Travel Agents, a trade group that represents 4,000 travel agents, have
announced they will seek U.S. congressional approval to allow small, “business-sized” travel agents
to bargain collectively with the major airlines and to steer customers to “friendly” airlines when
negotiating fails. The associations believe that the cut in commissions in less than three years is a slap
in the face.After the introduction of the initial cap of $25 for one-way domestic tickets and $50 for
round-trip tickets, many agents complained caps would eliminate jobs and reduce earnings. A class
action lawsuit followed on behalf of 33,000 travel agents, alleging price fixing. Some travel agents
also steered customers away from other airlines such as Delta in retaliation.In September 1996,
American, Delta, Northwest, and United agreed to pay $72 million in cash to settle the lawsuit.
Questions:
1. If you owned a travel agency, what would your reaction to the reduced commission cap be?
2. What options would you consider?
Caselet 2
Java Coffee House
Michelle Wong is manager of the Java Coffee House at a busy location on Union Street in San
Francisco. Michelle says that there are several challenges in operating a busy coffeehouse, such as
training staff to handle unusual circumstances. For example, one guest consumed a cup of coffee and
ate two-thirds of a piece of cake and then said he didn’t like the cake. Another problem is suppliers
who quote good prices to get her business and then, two weeks later, raise the price of some of the
items. Michelle says that young employees she has at the Java Coffee House are her greatest
challenge of all. According to Michelle, there are four kinds of employees – lazy; good , but not
responsible; those who steal; and great ones who are no trouble.
Examination Paper: Hospitality Management
3
IIBM Institute of Business Management
Questions:
1. What are some suggestions for training staff to handle unusual circumstances?
2. How do you ensure that suppliers are delivering the product at the price quote?
END OF SECTION B
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Looking to the future, which is the best organization structure for a theme park? A fifty-room
resort? A mid-priced Italian restaurant? An economy 100 room hotel? A 3,000-room casino hotel?
2. Depict the main obstacles that exist when motivating low-level employees, such as the
housekeeping staff of a hotel. Give specific examples. What is different from this situation versus
motivating professional, such as the head chef?
END OF SECTION C

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Examination Paper: Hospitality Management
4
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospitality and Tourism Marketing
Section A: Objective Type (30 marks)
•?This section consists of Multiple choices/Fill in the blanks/True-False and short notes type
questions.
•?Answer all the questions.
•?Part One questions carry 1 mark each and Part two questions carry 5 marks each.
Part One:
Multiple Choices:
1. In SMERF, ‘S’ stands for:
a. Social
b. Service
c. Sale
d. None of the above
2. If the Question Mark businesses are successful then they become Stars.(T/F)
3. Customers can be considered under:
a. Micro environment forces
b. Macro environment forces
c. None of the above
d. depending on the area of consideration any of the above
4. Demography is the study of………………………………………………………………………
5. Generation X consist of the people born between:
a. 1946 to 1964
b. 1965 to 1976
c. 1977 to 1994
d. None of the above
6. In ‘SMERF’ M stands for:
a. Money
b. Model
c. Military
d. Market
7. Aural dimensions of environment are volume and pitch.(T/F)
Examination Paper: Hospitality Management
5
IIBM Institute of Business Management
8. NAM stands for:
a. National Account Management
b. National Accounting Market
c. National Autonomous Market
d. Both (a) & (b)
9. Fixed costs are also known as ‘Overheads’.(T/F)
10. Lobbying is dealing with legislators and government officials to promote or defeat legislation and
regulation.(T/F)
Part Two:
1. What do you understand by ‘Hospitality Marketing’?
2. Write a note on ‘Servuction model’.
3. What are ‘Cash Cows’?
4. What do understand by ‘Vertical conflict’ in case channel behavior?
END OF SECTION A
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
International Travel Agency
The president of International Travel Agency was concerned about the performance of the sales force.
It was felt that members of the sales force did not really utilize their sales opportunities, but instead
though only about selling a ticket to a customer from point A to point B. The sales force did not seem
to have an interest in maximizing sales and profits by aggressively selling the entire product mix. In
total, the agency had a sales force of eight. Three members of the sales force were referred to as
executive sales consultants. These people called on commercial accounts and were expected to spend
more of their time outside the office. The remaining five persons were referred to as travel counselors
and worked entirely within the agency. None of the travel counselors who worked within the agency
were assigned a quota. The executive sales consultants, who worked outside the office, were assigned
a sales quota. Failure to meet a quota would be discussed with the salesperson, but no other action
was usually taken unless this failure continued for several months. If serious and persistent
Examination Paper: Hospitality Management
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IIBM Institute of Business Management
deficiencies existed, the salesperson could be subject to discharge. The agency provided nine to
twelve familiarization (fam) trips for members of the sales force each year. This meant that each
salesperson could experience at least one trip per year, as they were assigned on a rotating basis.
These trips did not reduce time from the salesperson’s guaranteed number of days of annual vacation.
The purpose of a fam trip was to acquaint travel agents with destination areas and the services of
airlines, hotels, restaurants, and so on. The president felt that the agency could maximize profits by
selling more travel services to clients and that the sales force was concerned only about selling
tickets. An analysis of the product mix of International Travel revealed that approximately 85 percent
was accounted for by airline tickets. The remaining 15 percent consisted of allied travel services,
including hotels, rental cars, and entertainment. Of these, the majority consisted of hotel reservations.
Less than one percent was accounted for by the sale of traveler’s checks. One of the members of
management offered the analogy of a businessman entering a clothing store. If a customer purchases a
suit, the salesclerk asks if the customer might need a new shirt or tie to go with the suit. Travel agents
are no different. They write a ticket from Chicago to Hong Kong or London for a client and never
bother to ask if the client needs hotel accommodations, rental cars, travelers checks, or other services
that an agency handles. The president of International Travel had tried to encourage the sales force to
sell other services but felt that they seemed uninterested in taking the time and effort required. The
president believed that maximizing sales of the complete product mix would lead to maximum profits
and that something must be done to encourage cross-selling.
Questions:
1. What can be done to encourage the sales force to engage in more cross-selling?
2. Discuss what is needed in terms of sales incentives and sales controls to achieve the objectives of
International Travel Agency.
Caselet 2
TANGLEWOOD PARK: VANTAGE GOLF TOURNAMENT
Tangle wood Park has a budget of $4.8 million per year and golf is the primary moneymaker for the
park, but over the past four years, Tangle wood has steadily lost money on its golf greens. In 1994,
golfers paid about $1 million to play on the championship course where the Vantage is held.
However, the amount of maintenance needed to keep this course in top shape and the loss of revenue
when the course is shut down for repairs have created an economic problem. The general public who
pays county taxes has been restricted from the greens to ensure that the course will be in shape for the
Vantage tournament. Revenue from the championship course was expected to be $428,000 less in
1997 than in 1994. “We’re trying to product our investment,” said Rich Schmidt, finance officer for
the park. The dilemma is that golfers who are viewed as “big-buck spenders” want to play where
the pros play, said Francie Bray, director of marketing for the park. How much does the county get
from these players and the thousands of visitors who attend the three-day tournament? Nobody
knows! Officials with the Country Tourism and Development Authority don’t know and neither do
officials of the tournament, but most are from Forsyth and surrounding counties. So its doubtful that
these people add much revenue to the county. They don’t stay in hotels or make extra trips to the
restaurant as a result of the tournament. Many observers feel that the only real spenders are the 500
people directly associated with the Vantage. That includes golfers, caddies, guest, and the media, said
Richard Habeggar, tournament director. John Wise, general manager of the Adam’s Mark Hotel in
nearby Winston-Salem, said he expects some of the 615 rooms to be filled with tournament guests,
but when asked how much the tournament helped, he said, “That’s tough to say. If we didn’t have the
Examination Paper: Hospitality Management
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IIBM Institute of Business Management
Vantage, we’d attract business from other events.” An official from the Ramada Inn said that the 147
rooms for the tournament period were booked, but some had been sold to people attending weddings.
Despite a budget of $3 million by R.J. Reynolds to sponsor the Vantage, the company started the
1996 tournament with a $250,000 deficit. Tournament officials have noticed a slump in ticket sales
and cut expenditures by airing the event on the Golf Channel rather than ESPN, which broadcast the
event for ten years. Pete Brunstetter said he wasn’t certain of the future for the tournament but said
that the county couldn’t help to subsidize it. The lack of reliable statistics concerning the economic
advantages of the tournament to the county and to the local visitor industry undoubtedly hurt. Elected
officials responsible for the careful expenditure of tax money and professional managers of a county
public park must support their decisions. The absence of reliable data makes it nearly impossible to
mount a defense the public will accept.
Questions:
1. The county commissioners need information to make a decision on the golf tournament. Using
the marketing research process, develop a research plan that will provide the commissioners with
the information they need.
2. Explain why it is important on the economic contribution of social events, both before and after
the event.
END OF SECTION B
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. A “hot” concept in fast-food marketing is home delivery of everything from pizza to hamburgers
to fried chicken. Why do you think the demand for this service is growing? How can marketers
gain a competitive advantage by satisfying the growing demand for increased services?
2. Identify a restaurant or hotel market segment in your community that you feel would be a good
market segment to target. Explain the marketing mix you would put together to go after this
market segment.
END OF SECTION C
S-2-210311

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Examination Paper: Health and Hospital Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Hospital Administration
Section A: Objective Type (30 marks)
•?This section consists of Multiple choices questions & Short notes type questions.
•?Answer all the questions.
•?Part One questions carries 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. A method of collaborative work in which visual display of information on flip charts or other
media to which other group member can use is:
a. Decision matrices
b. Multivoting
c. Boarding
d. Brainstorming
2. A tool for Data collection which summarize perception of a large sample of people is:
a. Surveys
b. Interviews
c. Check sheet
d. Data sheets
3. Members of Inspection control committee are:
a. Microbiologist, O.T. in charge, Medical Superintendent
b. Representative from Nursing Service, CSSD in charge, Representative from major clinical
department
c. Both (a) & (b)
d. None of the above
4. MRD stands for:
a. Medical Records Department
b. Medicine Records Department
c. Medicine Release Department
d. None of the above
5. Format for appraisal in which rank order is establish of employees based on their relative merit:
a. Forced Distribution Technique
b. Graphic Rating Scale
c. Ranking methods
d. Free Written Ratings
Examination Paper: Health and Hospital Management
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IIBM Institute of Business Management
6. Analytical technique in Materials Management in which all items in inventory on the basis of
annual usage time cost is:
a. FSN Analysis
b. ABC Analysis
c. VED Analysis
d. None of the above
7. Planning tool used in Quality Management in which the items are written on individual cards and
displayed on a flip chart:
a. Relations Diagram
b. Process Decision Program chart
c. Affinity Diagram
d. Activity Network Diagram
8. Method of filing of Medical records in which involves filing of records in exact chronological
order according to unit / serial number:
a. Middle Digit filing
b. Terminal Digit filing
c. Straight Numeric filing
d. None of the above
9. Type of hospital in which the number of beds is over 300 beds is known as:
a. Large hospital
b. Medium sized hospital
c. Small hospital
d. None of the above
10. Meeting in hospital whose purpose is to pass on information received from agencies is:
a. Informative Meeting
b. Consultative Meeting
c. Executive Meeting
d. None of the above
Part Two:
1. What are the factors affecting “Retraining” in a hospital?
2. What is the optimum composition of the Drugs and Therapeutics?
3. What do you understand by outdoor patient department?
4. Write down the different members of Appointment committee of the hospital.
END OF SECTION A
Examination Paper: Health and Hospital Management
3
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Rakesh and Gagan were two brothers who had graduate in Medicine in the year 1979. Both
established themselves as successful practitioners. In 1992, they decided to set up their own hospital
as both were familiar with the nitty-gritty of the profession after spending a decade as successful
practitioners. In the year 1994, the concept was concretized when three floors Arogya Hospital with a
bed capacity of 60 came into existence at Gwalior. The facilities provided by the hospital were
pathology, X-ray, blood bank and ICU. In the year 1998, the number of beds was increased to 100
with the addition of a fourth floor. In the year 2005, a fifth floor was added and the hospital started
offering services like radiology, 3D spiral, C. Tscan, colourdoppler, pathology, blood bank, C.C.U.,
O.T., maternity unit, emergency and trauma services, in-patient accommodation, canteen,
telecommunication and entertainment.
The hospital had 35 nurses and 55 class four employees. The main task of the class four
employees was to maintain the cleanliness of the hospital. Besides this, they were also entrusted with
the task of sponging, bed setting and shifting of the patients. Salary paid to these employees was
between Rs. 1200/- to Rs. 1800/- per month. The hospital staff was divided into different classes of
employees. Class one comprised of MBBS, MD, MS, and Administrative Officers. Class three
comprised of Technicians and Nurses. Class four comprised of Ayabais, Sweepers and Guards.
Hospital had 11 full time doctors, out of whom 7 were duty doctors (MBBS), 2 full time MD for ICU
and 2 full time in-house surgeons (MS). Besides this, the hospital had 50 visiting doctors who
operated on a turnkey basis. These doctors had their own clinics in different parts of the city and as
per requirement; they admitted their patents in the hospital. There was a mutual agreement between
the doctors and the hospital that the hospital would charge the patients and out of it the doctors would
receive their fees along with a percentage from the hospital share. The patients treated by the hospital
were patients requiring intensive care and minor illnesses. Out of the cases reported in the hospital,
60-75% were maternity and were referred to the hospital by leading gynecologists of the city, Dr.
Savita and Dr. Manorama. To help the doctors in the treatment of patients, work-instructions for
Resident Doctors, Supervisors, Ward boys / Ayabais and Sweeper boys/ bais were prepared by the
newly appointed Hospital-Administrator Priya. These instructions were prepared in English and were
hung on the walls of the enquiry counter. After a span of one month, Priya resigned from the hospital
on account of some personal reasons.
By the end of the year 2004, Ritu, a fresh post-graduate in Hospital-Administration from
Gwalior, was appointed as an Administrative Officer or take charge of the overall activities of the
hospital. Her role was to monitor the activities of employees of class three and four and various other
activities related to the functioning of the Hospital. The first task before her was to improve the
cleanliness of the hospital. She found that the toilets were not cleaned properly and the room hygiene
was dismal. She started making regular visits to all the wards and rooms in the hospital to observe and
monitor the employees lacked a human touch. To add to this, the patients also complained that the
employees demanded money for the services. After analyzing the situation, she came to the
conclusion that lack of motivation among the class four employees was one of the major factors
responsible for the pathetic condition prevailing in the hospital. Lack of motivation among the class
four employees was also visible in the form of high employee turnover, work negligence, absenteeism
and complaining behavior. High absenteeism among the class four employees resulted in work
Examination Paper: Health and Hospital Management
4
IIBM Institute of Business Management
overload for sincere employees, as they were forced to work in the next shift. This was a regular
feature in the hospital as a result of which employees often remained stressed and therefore, less
committed towards their work. Although, they were being provided with dinner and snacks at the
expense of the hospital, as a gesture of goodwill for those who worked over time for the hospital. She
also found that the workers were not reporting for their duty on time, despite their arrival in the
hospital on time.
The second reason, which she identified for lack of hygienic condition in the hospital, was that
the visiting hours for the visitors were not specified, so there was a continuous flow of visitors round
the clock, which hampered and affected the cleaning activity of the hospital. It was found that the
patients’ rooms were always full of visitors who would not mind taking their meals in the room/ward.
She felt that there was no solution to visitors’ problem, as this was an integral part of the promotional
strategy of the management. She also found that the work-instructions given to the hospital-staff was
in English language and it was difficult for class four employees to understand them. Ritu translated
all these instructions in Hindi so that class four employees could understand and implement them.
Ritu had the daunting task to reduce the absenteeism and make the employees more committed to
their work and felt that a reward of Rs. 200, if given to an employee who remained present for 31
days could perhaps motivate the employee to remain regular at the work place. Further, to motivate to
perform, she decided to systematize the performance appraisal system by identifying performers and
non-performers. This being her first job, she was apprehensive about performance appraisal. The
employees were to be classified into three groups A, B and C, ‘A’ was for high performers, ‘B’ was
for average performers and ‘C’ was for poor performers. It was decided that the employees in the
grade ‘A’ would receive the highest increment followed by ‘B’ and ‘C’. To make the performance
appraisal objective, she identified various activities on which the employees could be appraised. To
make the performance appraisal system more objective, a two-tier appraisal system was developed by
her. In the first phase, the employees were to be rated regularly on the identified activities by patients
and their attendants. In the second phase, observation of doctors and nurses was to be considered.
Although Ritu had full cooperation from the hospital management, yet she was apprehensive about
the employee’ acceptance of the new system. She had to wait and watch.
Questions:
1. Critically evaluate the factors identified by Ritu for enhancing organizational effectiveness.
2. Describe a performance appraisal system that you will recommend to Ritu for evaluating the
employees.
Caselet 2
The management of a hospital, faced with a resource crunch embarked on a cost containment
programme. Instructions were issued to various clinical, supportive and utility services to identify the
areas where cost containment could be effectively implemented without compromising with the
patient care facilities.
The hospital had both the centralized and the decentralized purchasing system. The officer-incharge
of the Emergency Department of the hospital, Dr. Systematic was a qualified and trained
hospital administrator. He systematically commenced analysis of the various activities and procedures
in vogue in the Emergency Department.
Dr. Systematic found out that the Emergency Department in addition to the glass syringes
purchased 9000 disposable syringes per annum. The interval of ordering was 30 days. The cost of
Examination Paper: Health and Hospital Management
5
IIBM Institute of Business Management
each disposable was Rs. 20/-. The ordering cost per order was Rs. 15/- and the carrying cost were
15% of the average inventory per year. He calculated the Economic Order Quantity, lot size of
inventory per month, storage cost and other inventory related costs and analyzed the optimum interval
of ordering. He forwarded these results along with the other cost containment measures of the
Emergency Department to the hospital management. The recommendations of Dr. Systematic were
implemented and used as a model for other departments of the hospital. Dr. Systematic for effective
analysis and appraisal was honoured with the Doctor of the year award by the Hospital Management.
Questions:
1. What are the assumptions made by Dr. Systematic for their inventory model?
2. Do you recommend any further suggestion for inventory costs in a hospital?
END OF SECTION B
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Write in brief about structure and function of Hospital Organization.
2. Write in brief about process of Material Management in a hospital.
END OF SECTION C