‘SUBJECT CODE: s1t121 gyltebus 2015 pene) i syttebus INDUSTRIAL AND TECHNOLOGY MANAGEMENT Vilds S. Bagad ME, (E&Te), Microwaves MMS. information systems) Faculty Insitute of Telecommunication Managerient ExcFoculy, Sinhged College of Engineering, Pune Covers Entre Sylabus ‘Question - Answer Format Exact Answers 6 Solutions |_Chapterwise Solved SPPU Questions Aug.-2014 to May-2019 | Solved SPP 2016 (End Sem) May - 2017 (End Sem) | Aug. - 2017 (In Sem) + Dec. - 2017 (End Sem) | May - 2018 (End Sem) “. «Oct. - 2018 (InSem) | Dec. - 2018 (End Sem) + May - 2019 (End Sém).. i ® ~ * @ Less than PHOTOCOPY Price @CONTENTS Unit = Ts i Chapter - 1, Introduction to Management arid Economical Demand “(1 -1) to (1-36) Unit - 2 Chapter - 2, Technology and industrial Management (2 - 1) to (2 - 10) Unit - 3 : Chapter -3 Quality Management (8-1) to (8 - 29) Unit - 4 aes Chapter-- 4 ° Marketing and Financial Manageient (4 - 1) to (4- 30) Unit - 5 Chapter-5 Human Resource Management (5-1) to (5 - 32) Unit - 6 oy Chapter-6 Entrepreneurship (6-1) to (6 - 18) Solved SPPU Question Papers Aug. - 2017 (In Sem) to May - 2019 (End Sem) © Copyright with Technico! Publications (S- 1) to (S- 21) All publishing rights (printed and ebook version) reserved with Technical Publications. No part of this book should be reproduced in any form, Electronic, Mechanical, Photocopy or any Information storage and retrieval system without prior permission in waiting, from Technical Publications, Pune. Published by TECHNICAL S°cirssotest tz. PUBLICATIONS Eri toscowcicpsietoms vesbabhcabera es Printer : Yoon Pints & Biles, SiN. 10\1A, Ghule Industral Estate, Nanded Villoge Rood, “EiMivel, Dat Pune 12041 First Edition : 2018 Second Iedition * 2019 Price 1 © 95/- ISBN 978-93-332-1870-2, v0 Sra9aaag18703 [2] SPPU TS @ | | | PHOTOCOPYING CAN KILL THE BOOK STUDENTS / BOOK SELLERS Buying and selling of any photocopied books is illegal, immoral | and unethical under the copyright act, 1957. (UNDER SECTION 51(A), 81(B), 510), 63 AND 64) Loss to the Student in Purchasing Photocopled. Books Poor quality of paper and printing which is harmful to their eyes, Due to duplicate ‘books, original books aré riot sold in enough quantity which causes delay in bringing out hew revised and updated editions, This deprives the students / other buyers of the latest Information on the subject and thelr knowledge 1s not updated, *- Loss to the Author ~. The authors put in a ot of efforts in preparing the bdoks and are deprived of their genuine royalty due to sale of photocopied books. * Loss to the Publisher ~ ‘ Publishers undertake strenuous efforts and put in a iot of labour ‘and capital in publishing good books. They are deprived of return ‘on thelr investments, ©. Loss to the Government = Government {s deprived of thelr rightful revenue in the form of GST / Income Tax and other taxes due to sale / purchase of photocopied books. * Loss to the Society = Selling of photocopied books is nothing but a theft of hard work put in by Author / Publisher. Purchasing of such material amounts fo encouraging this immoral act which Is another form of corruption. ~. So, Iet us all join hands to Stop this immoral aid unethical practice of selling / buying duplicate books and purchase only genuine books. Let us respect the law of the land and avoid Prosecution by resorting to unlawful activities Please Co-operate in this NOBLE CAUSE. Buy only ORIGINAL BOOKS. a : GECODE) @ Less than PHOTOCOPY Price aySYLLABUS : INDUSTRIAL & TECHNOLOGY MANAGEMENT [311121] Credits : 03 Examination Scheme : In-Sem_: 30 Marks ‘End-Sem : 70 Marks Unit 1: Introduction to managertal and economical demand Managertal Economics + Definition of economics, Demand and Supply concept, Law offderand and supp. Elaslty of demand end supply. Bemand forecasting Meaning Sad met Management : Meaning, scope, function. and importance of management. Difference between administration and management. Types of business “ownership. Sole ietorship. Partnership (Act 1934\ LLP. (Limited Liability Partnership). (Actaooe), Bushhess Organlzations. Line organization, Line and Stal! organisation and’ Functional Qeganzaion lint Sinck Company. Public Limited and vate Linked, Pubic Sector Undertaking (SU) (Chapter ~ Unit 2: Technology and Industrial Management Introduction to Industrial management + Concept, evelopment, application and its scope. Introduction of Technology Management ; Definition of technology. Management and lis relation with society, classification of technology, Management Of technology at various levels." Is “Importance on National’ Econom, Ethics in technology usnagement, Critical Factors In technology management. (Chapter = 2) Unit 3: Quality Management Definition of Quality Management. Definition of quallty, continuous improvement. Types of quality. Quality of design, Aststance Tools: iahieawa dlagrare — Pacts Afiaiysis. pokba Yoke (state Brooling) quality circles, Katzen. TOM. a8 (Case study Of Toyota. descriptive wreatment), Six signs, Quality Management Standards (Introductory aspects only) ‘The ISO. 9601'8000 Quality Management System Standard: The 1S 14001-2004. Enclronmental Management System Standard. (Chapter = 3) Unit 4: Marketing and Financial Management Marketing Management : Maret. meaning. characteristics and its types: Perfect Competition, Monopoly. Monopolisic “compietion and Ollgopoly. Marketing end gelling. marketing planning, Market survey and market research, online Merketing. Financial Management : Befinition of financial management cost, Types of cose, and methods of costing. price, capital Debit credit, books of accounts and final eecounts (Chapter 4) Unit 5: Human Resource Management Notation ingodscton fatten, est of wove modeaon Meow techy SPR ate en green aay etd mourn odes eget Ses, SOE a Bahctin a git ae ye ete Nae SRR oEtnd tte ty Loar ele haat ee eed esl gen acpi tas Seung ance ese (nbSeaaes mating Giahale Unt: Eatrepreneursaip Entrepreneurship- Definition, concept, tells, qualities of entrepreneur. Importance and limitations of rational decision making. Deciion mating under certalnty, umccrialn and tisk. Incentives for smalf business “development. ‘Government policies“ and Incentives. Case study on Sinall scole Industries im Indie. Inwoducton t6 Intellect Propersy Rights (Pk), Meening of IDR, Different forms of IDB, patents, Celera Tor securing Patents Daient format end’ structure, Copy and tvademare eserptive ‘featment onig): (Chapter + 8) ee oy ‘SUBJECT CODE: sit21 INDUSTRIAL AND TECHNOLOGY MANAGEMENT Vilas S. Bagad ME, (E87), Microwaves MAM, information systems) Faculty, nsitute of Telecornmunication Management Ex-Foculy, Sithgad Collage of Engineesing, Pune QA Covers Entire Syllabus $B Question - Answer Format EW Exact Answers st Solutions Di _Chapterwise Solved SPPU Quest Solved SPPU Question Papers’ + May - 2017 (End Sem) | + Dec. - 2017 (End Sem) | + Oct. = 2018 (In Sem) + May - 2019 (End Sem) j 2016 (End Sem) 2017 (In Sem) + 2018.(End Sem) - 2018 (End Sem) @ Less than PHOTOCOPY Price oPHOTOCOPYING CAN KILL THE BOOK STUDENTS / BOOK SELLERS CONTENTS Unit = e933) Pe __ Chapter-1 Introduction to Management and Economical Demand DE (1-1) to (1-36) Buying and selling of any photocopied books is illegal, immoral, and unethical under the copyright act, 1957. (UNDER SECTION 51(A), 51(B), 51(D, 63 AND 64) sptef-2 Technology and Industrial Management (2 - 1) to (2 - 10) © Loss to the Student in Purchasing Photocopied Books : ; = Poor quality of paper and printing which is hatmful to their eyes. = Due to duplicate books, original books aré not sold in enough {3 - 1) to (3 - 29) quantity which causes delay in bringing out new revised and updated editions, This deprives the students / othet buyers of the atest Information on the subject and thelr knowledge Is not, Chapter-4 Marketing and Financial Management (4- 1) to (4- 30) updated. Unit - 5 : * Loss to the Author Chapter -5 Human Resource Management (5-1) to (5 - 32) The authors put in a [ot of ‘efforts in preparing the books and are untt-6 deprived of their genuine royalty due to sale of photocopied : books Chapter -6 Entrepreneurship (6-1)to(6-18) | e Loss to the Publisher Solved SPPU Question Papers (S-1) to (S-21) | ~ Publishers undertake strenuous efforts and put tn-@ lot of labour and capital in publishing good books. They are deprived of return Aug. - 2017 (In Sem) to May - 2019 (End Sem) on thelr investments. All publishing rights (printed and ebcok version) reserved with Technical Publications. No port of GST / Income Tax and other taxes due to sale, / purchase of is book should be reproduced in ony ferm, Electronic, Mechanical, Photocopy or ony eres storage ‘ond retrieval system without prior permission in writing, from Technical | photocopied books, ubcations, Pane. | * Loss to the Society Publishec Published by cso an ume nn pu. namus ma = Seliing of photocopled books 1s nothing but a theft of hard «work i 2 TECHNICAL (orci io atdscissiar Tolga eas onecetaenss put In by Author / Publisher. Purchasing of such material amounts See ERNE Tr SSR a tora aaa ieee ee ay penalty eye ar pct ay a a or hg dey Ste 1A asd ne, dell ea tony uate eek a edema dibeetiend ee | genuine books. Let us respect the law of the land and avoid ‘Second Prosecution by resorting to unlawful activities. Plante Co-operaia in tha NOBLE CAUSE. 357 ISBN 978-93-932-1870-2, ‘ EN | 9789333918708 [a @ ay Buy ofily ORIGINAL BOOKS. SPPU 15SYLLABUS INDUSTRIAL & TECHNOLOGY MANAGEMENT [311121] Credits : 03 Examination Scheme : In-Sem : 30 Marks End-Sem : 70 Marks Unit 1: Introduction to managerial and.economical demand snpeuts Evan Sey feos, Dee pe ez ene ese! ermal lsc, Sar on pone ee Management : Meaning. scope, function, and importance of management. Difference between adviinistration, ang" management. Types of, business “ownership. Sole roprietorship, Partnership. (Act 1930) LUD. Limited Liability Partnershiph Vact2soe), Bisthess Grasiteatins. Le organization, Line’ and iat orgenieation arty Functonet nization. Joint Stock Comnpeny. Bublic Limited end rive Limited, Public ‘Sector Underating CSU (Chapier B Unit 2: Technology and Industrial Management Introduction to Industral management scope Introduction of Technology’ Management ; Definition of technology, Management tend its elation with soclety, classification of technology. Management of technology at various. levels: Its “Importance on National Economy, “Ethles In technology management, Crtcat Factors in technology management. (Chapter = 2) Unit 3: Quality Management Detinition of Quality Management: Definition of_quellty, continuous improvement. Types of cualty. Quality of design, Assttance: Tools Tahisews “diagram © Pavel Analysts. Poba Yoke (Msiae rooting) quality circes, Kaizen, TOM, £8 (ease stay oy Toyota. descriptive treatment). Six Sigma, Quality Management Standards Untroductos aspects ‘onip) "The TSO "96012000 Quality Maiagemest System Standard The WS 14001-2904, Environmental Management System Standerd. (Chapter = 3) Unit 4: Marketing and Financlal Management Marketing Management « Market. meaning. characteristics and Its types: Perfect Competition, Monepoty. Monopolistic completion and Oligopoly. Marketing and selling. marketing planning, Market survey and market research, online Marketing Financial Management : Definition of financial management, cost. Types of cost, and methods of costing. price, capital. Debit, credit, books of accounts and final accounts, (Chapter = 4) Unit 5: Human Resource Management Motivation: Introduction to Moitvation, theories of work motivation: Maslow Hierarchy gfrnesds theory. Taser Theory end erberg nwo factor thoor Group mamics: Types’ and interactions “of groups. stages of group cynemice: Norming, « Storming. Forning: Berformning and ‘aafourning Ucedetship: Latest ate, importance gualties'of good Teedership. Human Resource Monagement. Introduction, importance, scope. HR planning, Recruitment, selection, waining and developmen, Pedormancs management, (Chapter > 5) Unit 6: Entrepreneurship Entrepreneurship- Definition, concept, tralts, qualities of entrepreneur. Importance and limitations of rational decision maning, Decision making under certainty, uncertainty and “risk. Incentives for small busifiess development Government pollcies ang Incentives, Case, study on Small scale industries in India. Introduction to Intellectual Property Rights (PRY, Meaning of IPR. Different forms of IDR, Patents, Criteria for securing Patents, Patent format and structure, Copy and trademars - Descriptive ‘eatment only). (Chapter - 6) Concept, development, application and its Introduction to Management | and Economical Demand 1.1 + Managerial Economics Q.1 Define managerial economics. Explain nature, characteristics of managerial economics. Ans. scope and Managerial economics : * Managerial economics involves the application of economic principles to solve the problems arising in business activity. Since it is mostly concerned with managerial decision making, it is known as managerial economics. * Managerial economics is defined by different economists. Some of them are expressed here. 1, "Managerial economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by management." ESP - Spencer aid Siegal "Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organization can achieve its aims and. objectives more efficiently.” USP - Salvatore. 3. "Managerial economics is the application of economic theory and methodology to business administration practice.” 537 - Brigham and Pappas. * Therefore the concept of managerial economics involves certain aspects as follows : oo a-nEEE ie Introduction to Management Industrial and Technology Management 1-2 ‘and Economical Demand Industrial and Technology Management 277 Eee 1. It deals. with economic theory. Bush ‘allocation of resources available to a firm, “Mature of managerial economics ‘= Important features of managerial economics are as under : 4. Similar to microeconomics + Managerial economics studies about the firm and scarce resources for maximizing output, finding solutions to the problem of ‘the firm for maximizing profit. 2. Operates against the backdrop of macroecoriomics ©The limiting conditions of ‘macroeconomics are same for managerial economics. So managerial économist can decide the strategy to work considering these conditions such as inflation, government policy etc. 3. Normative statement = The statements are usually based on moral attitude and value judgements. : 4. Perspective actions + Managerial economics is goal oriented. The coarse of action is chosen from available alternatives 5. Applied in.nature * The model reflects the real business situations hence are more useful for decision making in diverse fields. Case study methods are also used to identify and understand the problem. 6: interdisciplinary ‘Managerial economics ‘uses tools and techniques which are derived from management economics, statistics, a¢countancy, sociology and psychology. @ Loss than PHOTOCOPY Pri “Industrial and Technology Management ~1-3 Introduction to Management and Economical Demand ‘Scope of Managerlal Economics © Managerial economics is focused to find an optimal ‘solution for managerial problem in business activity. The- problems are concerned with managerial decisions such as production, costing, capital. management, inventory, profit planning, human resource ete. s + For evaluation and finding optimal solution ‘various tools, techniques and concepts ‘are suggested. Fig. Q.1.1 shows use of these concepts, techniques of managerial economics for finding optimal solution. Managerial Decisions once, ‘Fedines and pti Toate of Sakson of Managerial brobleme Eeoncmos Fig. Q.1.1 Scope: of managerial economics * The scope of managerial economics is limited to decision making with an organization. 5 Characteristics of Managerial Economics 1, The approach.of managerial economics is goal oriented. 2. Managerial economics uses concepts, tools and techniques for optimum solution of problem. 3.. Managerial economics is concerned with the economic behavior of a firm. 4: Managerial economic is concernéd with managerial decision making. . Managerial economics takes help of other ‘sources to make optimum use of scarce resource. 6. Managerial economics conceptualize the problem. @ Lass than PHOTOCOPY Price involves case study » method ° toIntroduction to Management industrial and Technology Management 1-4 ‘and Economical Demand jcro-economics. Explain the concept of supply and Ply. BQFISPPU + May-16, Dec-16, Marks 5] business produce and sell their products, More precisely, see refers to how muuch of a good will be offered for sale at_a given Price over a given period of time, holding equal other things such as costs of ‘production, the. prices of related goods, “the government policies. The Supply Curve ‘It is most obvious that the sellers wants to sell their products in more quantity at higher prices. Ofcourse, the willingness to sell is determined by sellers and demand for their own goods. ‘© The supply schedule or supply curve for a commodity is a relationship between its market price and the’ amount -of that commodity that producers are willing to produce and sell, other things held equal. * The supply curve can be drawn showing above relationship in Fig. Q.2.1. + Supply curve is upward sloping ie. curve rises from left to right, for individual commodity. This is in contrast to the demand curve. This curve illustrates that although a rise in price usually reduces the demand quantity, it usually increases the supply quantity. This is because a higher ptice means. that suppliers have a greater incentive to use their resources to supply the item in question. Introduction to Matiagement Industrial and Technology Management 1-5 ‘and Economical Demand Price ” Ey fa — such. cores ° so 10080008 Guanaty Supplied Fig. Q.2.1 Supply curve Elasticity of Supply © Elasticity of supply is responsiveness of producers to changes in the price of their goods or services. As a general rule, if prices rise so does the supply. © Elasticity of supply is measured as the ratio of proportionate change in the quantity supplied to the proportionate change in price. High elasticity indicates the supply is sensitive to changes in prices, low elasticity indicates little sensitivity to price changes,. and no elasticity means no relationship with price. Also called price elasticity of supply. It is calculated as per the following formula : Ain quantity supplied Supply elasticity = as DECODE) @ Less than PHOTOCOPY Price @ Less than PHOTOCOPY Price° Introduction to Management Industrial and Technology Management 1-6 ‘and Economical Demand © The ‘calculation of- elasticity of supply is comparable to the calculation of elasticity of demand, except that the quantities used’ sefer to quantities supplied instead of quantities demanded. ‘*Factors. that influence the elasticity of supply include the ability 40 switch to production of other goods, the ability.to go out. of Business, the ability’ to use other resource inputs and the amount’ of time available to respond to a price change. * Over a short time. period, firms may be able to increase output only slightly in response to an increase in.prices. Over a longer period of time, the level of production can be. adjusted greatly as production processes can be altered, additional workers ,can. be hired, more plants can be built, etc. Therefore, elasticity of supply is expected to be greater with longer periods of time. + We would expect the supply elasticity of wheat to be very high as farmers can easily switch land that is used for wheat over to other crops such a3 corn or soybeans. * On the other hand, an oil refinery cannot easily switch its production capacity over to another product, so low oil-refining margins do not reduce the quantity supplied by very much. Due to high capital costs, higher refining margins do not necessarily induce much greater supply. So the supply elasticity for oil refining is fairly low. 3 Explain the concept of supply. Explain the concept demand and elasticity of demand. ESETSPPU : Aug-14, Marks 6} Ans. : Supply. : Refer Q.2. Concept of Demand : + In a market system, everythinghas a price, which is the value of the goods in terms of money. Prices represent the terms.on which people and firm voluntarily exchange different’ commodities (goods). The price is determined by the interaction of the forces of demand and supply of commodity. The amount of commodity people buy depends off its price TS SSIES a RIGA AME Introduction to Management and Economical Demand © Demand: in economics is the desire for something plus willingness and ability to pay a certain price in order to possess it, : = It means being both willing and able to buy something. Just wanting something is not enough. Needing it desparately is also not acceptable unless you have the nioney to pay. Thus, demand is a warit for something supported by the money to buy it . First law of demand ‘+ The first law of demand tells us that, cateris paribus (all other things remaining constant) a greater quantity will be demanded if the price is lowered. This is the most important-determinant of demand, the. determinants of demand’ other thai price are referred to as the conditions of demand. Industrial and Normally a person ‘will demand ‘more of a commodity (good) when its’ price is lower because it represents better value for money. The lower the price, the more people are able to buy it, since they have enough rhoney to pay the price. So, generally speaking, the lower the price, greater the demand quantity; the higher the price, the lower the demand quantity. This conforms to our everyday observations, winter sale/monsoon sale, ‘prices slashed’ or ‘off season discount’ announce the shops when they wish to clear their stocks of clothing. Exceptions : This is not always the case. Sometimes prices seem to have little or no effect on demand quantity. For instance, salt is 50 cheap and we use so little of it.that even if the price is doubled, demand for it will probably change hardly at all. Sometimes higher prices can even increase demand quantity e.g. a rise in: price might make people think that prices were going to rise even ‘higher in the future.. They might then rush to buy, even though’ the price wes higher than it used to be. But most of the time, lower prices increase demand quantity and higher prices reduce it. DECODE) @ Less than PHOTOCOPY Price @ Less than PHOTOCOPY PriceIndustrial and Technology Mainagevient 1-8 tnd Economical Demand The Relationship between Demand and Price +.When the price of a good rises, the quantity demanded will fall. This relationship is known as the law of demand. There are two reasons for this law: 4) People will feel poorer. They. will not be able to afford to buy so much of the good with their money. The purchasing power of their income has fallen. This is called the income effect of a price rise, ii) The goods will now be dearer relative to other goods. People will thus switch to alternative or ‘substitute’ goods. This is called the substitution effect of a price rise. + Similarly, when the price of a good falls, the quantity demanded will rise. People can’ afford to buy more, and they will switch away from consuming alternative goods. Example : The increase in the price of coffee, we will not be able to afford to buy as much as before, and we will probably drink more tea, cocoa, fruit juices or even water instead. * The amount by which the quantity demanded falls will depend on the size of the income and substitution effects *The size of the income effect depends primarily on the Proportion of income spent on the good. Thus the more coffee we buy in the first place, the niore likely it is that we will be forced to cut down on the. amount we buy if the price goes up. In other words, the bigger the proportion of income spent on the good, the bigger will be the effect of a price rise on people's, teal income, and the more they will reduce the quantity they demand. s The size of the substitution effect depends primarily on “the number and closeness of substitute goods. Thus if you are quite happy to drink tea instead of coffee, a rise in the price of coffee will cause you to cut your consumption of coffee considerably, and correspondingly to increase your consumption of tea. Introduction to Management © Industrial and Technology Management. 1-9... Introduction to Manageniznt. rand Econoiiteal Demand ‘There exists a definite relationship between the market price of « good aid Wie quantity demanded of that good. This relationship between price and quantity is called the demand curve or demand schedule. ©The relationship between demand. quantity and price can be illustrated by demand curve shown in Fig. Q.3-1 prices are shown along the vertical axis, and the demand quantities along the horizontal axis. TST oy Demanded Fig. Q.3.1 Demand curve * Note that quantity and price are inversely related. The curve slopes downwards from left to right showing that as prices fall the demand quantity increases. This important property is called the law of downward sloping demand. © Law .of downward-sloping demand : When the price of a commodity is raised, buyers tend to buy less of the commodity. Similarly, when the price’ is. lowered, quantity demanded increases. Elasticity of Demand : * Demand curve usually slopes downward to the right. The steepness of slope tells, how the demand quantity alters with changes in price. i¢. If the curve is very steep, a.small price change has very little effect on the demand quantity. On the contrary if the curve is flat, a small change in price has a large effect on the’amourit. Fig. Q.3.2 shows this effect on demand. @ECODEY @ Less than PHOTOCOPY Price DECODES @ Less than PHOTOCOPY PriceIntroduction to Management Industrial and Technology Management 1-10 ‘and Economical Demand ‘econ Fig. Q.3.2 Different responses to price change * The price change in both graphs is same, in first graph demand quantity changes very little, in the second graph the same price change results great change-in quantity. The difference comes from the slopes of the curves. Elasticity :.Elas ty of quantifying how responsive supply and demand are to change in prices. + Elasticity means sensitiveness or responsiveness of demand to the change in price. Elasticity of demand is a measure of responsiveness of demand to the changes in the price. Types of Demand Elasticity : * There are three types of elasticity of demand. jasc _ | e Fig. Q.3.3 Types of elasticity 2.4 Explain elasticity of supply and-clasticity of demand. SSETSPPU : Dec-14, Marks 4] ‘Ans. : Supply : Refer. Q2. Elasticity of Demand : Refer Q:3. Tiitroduction'to Management: Industrial and Technology Management 1-11 ‘and Economical Demand’ Q.6 What is law of supply ? State determinants of supply. ESTTSPPU : Oct-16, Marks: 3) Ans. : Law of Supply : Refer Q.3. Determinants of Supply : Like demand, supply is not determined by price. The other determinants of supply’ are as follows. 1. The costs of production : The higher the costs of production, the less profit will be made at any price. At costs rise, firms will cut back on production probably switching to alternative products. whose costs have not risen so much. ‘The main reasons for a change in.costs are as follows - a) Change in input prices : Costs of production will rise if wages, raw: material prices, rents, interest rates or any other input prices rise. }) Change in technology ..: Technological’ advances can fundamentally alter the -costs of production. Consider for example, how the microchip revolution has changed production methods of information handling in virtually every industry in the world, ©) Organisational changes : Various cost savings can be made in many firms by reorganising production. @) Government policy : Costs will ‘be lowered by gonvernment subsidies and raised by various taxes. ) The profitability of alternative products : If some alternative product becomes more profitable to ‘supply than before, producers are likely to switch from the first good to this alternative. Supply of the first good falls. Other good are likely to become more profitable if, - their price rises. - their cost of production falls. For example : Car companies typically make ‘serveral different car models in the same factory. If there is more demand for one model, and its price rises, they will switch more of their CEECODES @ Loss than PHOTOCOPY Price DECODE) @ Less than PHOTOCOPY PriceIntroduction to Management Industrial anid Technology Management 1-12 ‘and Economical Demand assembly lines to making that model, and the supply of the other models will fall. 2. The ‘profitability of goods in joint supply : Sometimes, when one good is also produced at the same time. These are said to be goods in joint supply. An example is the refining of crude oil to produce petrol. Other grade fuels will be produced as well, such as diesel and paraffin. If more petrol is produced, due-to'a rise in demand, then the supply of these other fuels will rise too. 3. Nature,’ ‘random shocks' and other unpredictable events : In this category we would include the weather and diseases affecting firm output, wars affecting the supply of imported raw materials, the breakdown of machinery, industrial disputes, earthquakes, floods and fire etc. 4. The aims of producers : A profit maximising firm will supply a different quantity from a firm that has a different aim, such as maximising sales. 5. Expectations of future price changes : If ‘price is expected to rise, producers may temporarily reduce the amount they sell. Instead they are likely to build up their stocks and only release them on to the market when the price does rise. At the same time they may plan to ptoduce moré, by installing new machines, or taking on more labour, so that they can be ready to supply more when the price has risen. 1.3. : Demand Forecasting Q.6 Discuss the methods of demand forecasting. CGFISPPU : Dec-14, Marks 6; Oct-16, Matks 3] OR What are the methods of demand forecasting ? ESTSPPU { Aug-17, Marks 4] Ans. : Demand Forecasting : Forecast is a prediction about a future event which is likely to happen in any given situation. In the world Introduction to Management Industrial and Technology Management 1-13 ‘anid Economoal Demand of ‘uncertainties, forcasting has. great significance. Every firm try to forecast likely demand’ for their. products. Predictions of future demand for a product is known as demand forecasting. Demand forecasting is an important management function because huge resources are involved in production process. Definitions of Demand forecasting 1: According to Ametican Marketing Association - "Demand forecasting is an estimate of sales in dollars or physical units for a specified future period under a proposed maiketing plan" 2. Demand forecasting is thé tool to scientifically predict the likely demand of a product in the future. "Sales forecast is the focus of integrative planning” -'William Lazer. 3. "The company sales forecast is the expected level of company sales based on a chosen marketing plan and assumed environmental conditions.” - Phillip Kotler ‘Methods of demand forecasting : Two important approaches for demand forecasting methods are employed. Survey Method This approach depends upon market research, survey etc. consumers ate interview for their feel and intentions. This approach consists of following methods. i) Buyers interviews/Surveys of Buyer's intention. ii) Sales force polling. iii) Consumer field surveys. iv) Experts opinion. v) Forecasts based on composite management opinion. 4. Expert Opinion Method - * This method for forecasting demand is essentially based on the opinion of experts, either internal or external to the firm. * "Delphi technique’, originally developed by the Rand Corporation at the beginning of the Cold War, to forecast the impact of technology on welfare. copes @ Loss than PHOTOCOPY Prico @ECODET@ tess than PHOTOCOPY PriceIntrodisction to Management: Industrial and Technology Management i-14 and Economical Demand ‘This technique is considered. to be superior to, conventional Brainstorming, cesciGn, aa the latter: may, be: dominated: by: views of some of the experts © Delphi is the way of getting the opinion of experts. without their: face to face interaction. Merits of Opinion Method ] 1. Decisions are enriched with: the experience of competent experts.’ | 2. The firm need-not spend time and resources’ in collection of data by’ survey: 3. Very—useful when the product is abgolutely new to all the market, 5 Demerits of Opinion. Method 1. This technique relies more on the experience of experts than on: _ available data, and may thus involves some amount of bias. . 2. In case external experts are invited for opinion, the firm may be exposed to risk of loss of confidential information to rival firms. 2. Consumers Opinion Method In consumers’ opinion survey buyers are asked about their future buying intentions of products. A survey can be conducted in two ways - a) Census Method 1 | s Involves. containing each and every buyer, but it is very time taking, costly and is often not desirable. b) Sample Method * Involves survey of only representative sample of buyers. Sampling reditces the cost of survey without affecting the validity ‘of data, However, ‘care should be taken that the sample are representative of the universe. Merits of Consumers Opinion Method 1: ‘Simple to administer and comprehend. Industrial and Technology Management 1-15 PoeMRMMM ei é Introduction to Management ‘and Economical Demand 2: The results-obtained are realistic, as they are based on direct “opinion of buyers. 3..Suitable for short term decision regarding product and _-spromotion. Demerits of Cohsumers Opinion Method - 1. Surveying is often an expensive proposition both in term of -resources and time. . 2). This method ‘is unsuitable for long term forecasting, as demand determinants like consumer's taste, preferences and fashion are likely to change in long run. 3.. Buyers may ‘not often’ divulge their real buying intention and may even give incorrect responses. A. Investigator's bias regarding choice of sample. and question cannot be fully eliminated. 5. Accuracy of the survey results would be, to a large extend, contingent upon the: quality of the questionnaire and the expertise of the interviewer. . Statistical Method «Statistical method is ‘another tool for getting an insight into the future. This type of demand forecasting method is most suitable for long term forecasts. ©The methods noted under projecting past experience are as under © - i) Correlation analysis. ii) Regression analysis - ‘A) Simple (bivariate) -B) Non-linear regression. iii) Projection of trerids into future. Role of Government in Macroeconomics at are the roles of government in macroeconomics ? G7, Wont ae ae ESTSPPU : Aug-24, Marks 4] = DECODE) @ Less than PHOTOCOPY Price DECODED @ Less than PHOTOCOPY PriceIntroduction to Management Introduction to Management Industrial and Technology Management 1-16 and Economical Demand Iridhistrial and Technology Managemerit_ 1-17 ‘and Economical Demand Ans. : * The. objectives of macroeconomic policy are the goals. of | 4. High employment - The government wants to achieve an government policy and the instruments are the means by which.| increase’ employment and eventually a situation where. all these aims might be achieved. those able and available can find meaningful work. + For example; the government might want to achieve an objective'} 5, Rising living standards and a fall in relative “poverty - of a low rate of price inflation. The main instrument to achieve | Cutting and reducing poverty: this are changes in monetary policy interest rates. j 6. Sound government finances - Including control over state * Fiscal policy could be another instniment to achieve this aim. | Boryowing and the total, national debt This is in the hands of the government. Supply-side policies can also be used to contiol inflation and promote growth over the 1.5 : Management eee Q8 Define management. What are the different functions of * The government might have another objective to make the | | management ? State the importance of management. distribution of income more equal. It would then choose the TEETSPPU : May-15, 16, Marks 3, Dec-46, Marks 6] Policy instruments it thinks are best suited to reaching to this | oR Define Management: What are the functions of management ? aim, perhaps a change in the income tax system or a rise in the HFTSPPU : Dec-37, Marks 7] national minimum wage. Ans. i Management : Management ‘is the process. of achleving ° mais icy i le ac nal goals by engaging in the four major functions of ne main policy instruments available to meet macroeconomic ee rganzing leading’and controlling by co-ordination of 5 human, material, téchnological and financial resources. 1. Monetary policy - Changes to interest rates, the supply of money and credit and also changes to the value of the | Functions of Management exchange rate. 1. Planning 2, Fiscal policy - Changes to government taxation, government | Planning is the management function that involves éetting of spending and borrowing. goals and deciding the best method to achieve them. 3. Supply. Side policies designed to make markets work more @ Planning is most important and basic activity of management, iciently. lanning The function also includes considering what must be done to encourage necessary levels of change and innovation. Objectives of government's macroeconomic policy * The key objectives are 1, Stable low inflation - The Government's inflation target’ is 2.0 % for the consumer price index. if 2, Sustainable growth - Growth of real gross domestic product - 2. Organizing aes Organizing is the management function that focusses or | allocating and arranging human and non-human resources so that sustainable “in keeping» inflation low and reducing the plans'can be carried out successfully. environmental impact of growth. * Different tasks must be assigned to different people and their 3. Improvements in productivity - This is designed to improve efforts must be co-ordinated. competitiveness and global trade performance. . — $ : @ Less than PHOTOCOPY Price DECODES @ Less than PHOTOCOPY Price«mia ea erste iB | Introduction to Management Industrial and Technology Management 1-18 ‘and Economical Demand 3. ‘Leading ft Leading is the management function that involves influencing others to engage in the work behaviours necessary to: reach organizational goals. s © Leading includes communicating with others, providing direction and motivating people. This function also includes encouraging the necessary levels of charge and innovation. In the ‘process of leading, a manager strives to match the need of the people with the objectives of the company. 4. Controlling - © Controlling is the management function. aimed at’ regulating organizational activities so that actual’ performance meets the expected objectives and standards of company. Importance of Management 1. Management meets the challange of changes. ' 2. Accomplishes group goals. 3. Effective utilization of business. 4. Management performs efféctive functioning of business. 5, ‘Identifying and developing resources. 6.. Management is foundation for sound organization structure. 7. To direct and controls the functioning of organization. 8. To integrate interests of various groups: 9. Developing new ideas.” Q.8 Differentiate between administration and management. EBTSPPU : May-15,16, Aug.-15/17, Dec.-15,16, Marks 4] @ Less than PHOTOCOPY Price Introduction to Management Industrial and Technology Management 1-19 ‘and Economical Demand. ‘Managenient’ | Administration Organization i. Function | Directing Determination | Putting together the human efforts | of goals different parts of an towards and policies of | enterprise into common‘ goals. | enterprise ‘working order z Fosition | Management is | Controlling | Frame of servant of management _ | management ‘administration. |-and organization by making policies. fB Technical | Requires to ‘Does not Does:not requires. ability function requires. properly. Id: Productive] Productive in | Non productive | Productive in nature character. in character. character. Bi Levels | Three levels of | Only relate to | Exists throughout management ie.| the top level. | the enterprise. top, middle and lower level. Rote Management | Administration | Effective machinery executes the | gives proper | for achieving work. direction. objectives. 1.6 : Business Ownership Q.10 What is partnership form of organization? Explain any’ four characteristics In details, TGFSPPU : Oct.-16, Marks: 5] Ans. : » In the partnership forms of business, two or'more persons come together and start a business with their own. funds. The parties agree to share the profits as well as bear the losses in the agreed. proportion. © The formation and management of. partnership organisation. is governed by the Indian Partnership Act, 1932: = DECODE) @ Less than PHOTOCOPY. PriceLs Introduction to Management Industrial and Technology Management 1-20 and Economical Demand © The partnership is defined as "The relation between persons who have agreed to share profits of a business carried on by all any of them acting for all”. Advantages of partnership 1. The partnership organization has larger financial resources comipared to sole proprietorship. 2. Greater personal. contacts of the partners gives more customer base and benefits. 3. Persons of different skills and abilities can work for betterment of organization. 4. Less expenditure per partner is involved in forming partnership organization. 5. Loss will be divided amongs the partners. Disadvantages of partnership 1. The partnership organization get dissolved in case of retirement or death of a partner. 2. The existence of partnership is for short duration due to selfish attitude of partners or in case of loss, each partner blames each other. - Q.11 Differentiate between proprietary firm and partnership firm. SESISPPU : May-15, Marks 3, May-16, Dec-16, Marks 5] sr. Proprietorship ne Partnership 1. | Single owner of the firm. Minimum two or maximum, twenty partners. Easy to form the organization. | Some legal documents are to be | -prepared. S 3. | Success depends on skills of Pena Success depends on co-operation, understanding, and | skills of different partners. Initustrial and Technology Management 1-21 introduction to Maniigeniegt Gnd Eebmoiniedl Demand “4, | Proprietor enjoys more freedom Partner has less freedom and and profit share of profit. 5. | Single proprietor can raise, Partners together can collect Timited capital. large capital as compared to a proprietor. 6. | Business risk is totally with single proprietor. ‘Risk of business is equally divided among partners. 7. | Individual proprietor can take decisions fast. Partnership decisions are critical and takes time. ; 8. |: Individual proprietor business is. less efficient with less expertise. Partnership business is more efficient and more expertise can be available from partners. Partners may carry.out the business. 9. | After the death of proprietor the business may discontinue. 10. | The business secret can be maintained or kept confidential. Business secrécy can not be maintained. Q.12 Explain the features of joint stock company. TEFISPPU : Aug-14, Marks 3] Ans. : # Joint stock organizations are proved to be superior than the sole proprietorship and partnership form of organization. In this form of organization, capital is contributed by a large number of persons in the form of shares of different values. « Joint stock organization can be classified into two types, these are i. Private limited company i) Private Limited Company A private limited company can be established with two to fifty members. The maximum number of membership is limited to 50. When this type’ of organization’ expands beyond: certain limit, it can restrict its liability by registering the firm as a limited company. . Public limited company “The company is registered under Indian Company Act, 1956. Such organizations are not required to submit the balance sheet and audited papers to the government, The transfer of shares DECODE) @ Less than PHOTOCOPY Price . CEECODES@ Less than PHOTOCOPY Priceoe Introiluction to Management Industrial and Technology Management 1-22 ‘anil Economical Demand takes place between ‘members only. ‘The public :cannot subscribe ‘to the share capital. Hl) Public Limited Company ‘vAs indicated by: its name, the membership. of public limited company is open to general public. The minimum number of members, required are. 7 and there is’ Ao upper limit. ‘Such companies offer shares to general publi * Public limited companies ‘are supervised and cortrolled by the government ; to protect the interest of share holder public. : +The shares’ are transferable without any prior approval. The company is governed by. an élected body. called Board: of Directors. Such organizations have to submit to the government an audited account and balance sheet of their business. Advantages of Joint stock company 1, The shareholders bear no risks as the liability is limited. 2. Large scale business can be undertaken. 3. Joint stock companies can take advantages of economies of scale in production because management can employ specialized labour, can use the latest machinery and thus can achieve large scale production at low cost. 4, This form of organization is not affected by the retirement of any share holder hence the existence’ of organization is permanent in nature. 5. The management works on democratic principles, which results in economy. and efficiency. Disadvantages of joint stock company 1. .Shareholders do not have much interest and voice in the management or organization, 2, Some of the directors may exploit investors. For instance they may: give false information stating that the company is going into loss. As a result, the value of the company's shares may go all F Introduction to Management Industrial and Technology Management| 1-23 ‘and Economical Demand Industrial and Technology Menegement 2-78) ere down. The directors may ‘then purchase devalued shares for their own benefits. : 3, It is difficult to preserve secrets in the joint stock companies. 4. Large formalities are to be observed. * 5., Sometimes, the directors undertake risky ventures and are quite likely to incur losses to the company. Formation of Joint stock company ‘* Two important documents for formation of Joint Stock Company are - [1] Memorandum of Association (MOA) + No company can carry business unless it is registered under the Companies.Act, 1956 by subscribing the details in “Memorandum of Association.” « The memorandum of every company shall state - 1. The name of-company with last words Limited or Private Limited as applicable. 2. Address of registered office of the company. 3. The objectives of the company. 4. List of members with address. 5. The share capital / number of shares of each member. «The memorandum must be printed and should be divided inte paragraphs numbered consecutively. + The memorandum of association must be signed by each member in the presence of witness who shall attest the signature. © A company shall not alter the conditions contained in its memorandum except the provision is made: * A certificate of incorporation given by the registrar. Il] Artictes of Association (AOA) @JIn case of Public Limited Company (by shares) or a Private Limited Company (by shares) it is necessary that it should be @ Less than PHOTOCOPY Price @ECODEY @ Less than PHOTOCOPY PriceIntroduction to Management~ Industrial and Technology Management 1-24 ‘and Economical Demand “registered with a memorandum, articles of association signed by the subscribers of memorandum. * AOA should contain the rules and regulations of company with by-laws relating to day-to-day management of cornpany. * It should also contain the provisions of share capital and number of subscribers. * AOA must be printed and divided ‘into paragraphs numbered consecutively and be signed by éach subscriber of MOA. * A company must send the copies of memorandum and articles to the member. within 7 days. Q43 Explain the following types of business organizations : (W) Partnership firm (ii) Joint stock company (ill), Co-operative society SSFISPPU : Dec.-14, 15, Aug-15,.Marks 6] Ans. : (i) Partnership firm : Refer Q.10. (i) Joint stock company : Refer Q.12. Gi) Co-operative society: * Co-operation is a form of organization where persons irrespective.of caste, creed and religion, voluntarily associate together as human beings. «It is based on the democratic principles and’ functions for the welfare of the public at large. It protects the interest of consumers as well as that of small producers. "Features of co-operative organization Voluntary organization Open membership Common purpose / interest Democratic management Not profit oriented. Types of co-operative organization Various types of co-operative organizations are oP oye 1. Producer's co-operative society. Introduction to Management Industrial and Technology Management 1-25 and Economical Demand 2, Consumer's co-operative society. 3. Housing co-operative society. 4, Credit co-operative society. 5. Co-operative farming society. Advantages of Co-operative Enterprises ~ 1. Easy to form co-opérative society. 2, Co-operative enterprise is useful to a common man. 3. Profits are equally shared. 4, Due to honorary services of members, the expenses on the management are reduced, therefore. it reduces cost of production. 5. Middleman's profit is eliminated since the purchase is directly from producer. . 6. The management is democratic. Normally one member, one vote principle is applicable. 7. It sells the ‘goods/products cheaper, as no money is spent on advertisements and publicity etc. 8. The existence is not affected in insolvency or death of its members. Disadvantages of Co-operative Enterprises 1. This form. of organization is not suitable for industries where a huge capital investment is required. 2. In view of ‘limited financial resources, qualified persons cannot be utilized. 3. Sometimes it is found that management is inexperienced and may incur losses. 4, Persons holding positions of power in the organizations may take undue advantage. j 5. Many time co-operatives ‘are exploited by the-politicians for their selfish gains. services -of highly @ECODEY @ Loss than PHOTOCOPY Price @ Less than PHOTOCOPY Price‘ = Introduction to Management Industrial and Technology Management 1-26 ‘and Economical Demand 6..There. is a likelihood of conflicts among the members as they _ have equal rights’ and equal investments. Q.14 Explain the types of business ownership : (1) Partnership firm (il) Joint Stock company (lil) Public Sector Undertaking 5 ESISPPU + Aug-17, Marks 6] Ans. : @) Partnership firm : Refer Q.10. Gi) Joint Stock company : Refer Q.12. - ii) Public Sector Undertaking : * Public sector enterprise is also called as state ownei and control. State ownership works for the benefit of the society-at large state ownership served as means to remove monopolistic tendencies and to take those’ fields where there is lack of -willingness or capital to start the business. = * Forms of public sector enterprises (State ownership) ‘are as follows. 1. Government department 3. Government cémpany 1. Government Departments + Such enterprises in the areas of activities having government monopoly. For example the organisations like Railways, Ports and Telegraphs, Defence production etc are run by the government departments, 2. Public Corporation ‘*.A public corporation is a body cteated by a law passed in the parliament. 2. Public corporations * There are some of the Public Corporations in India. Those are, 1. Life insurance corpération, 2. Indian airlines corporation, 3. Damotthar valley corporation. © EASES LS q Introduction to Management | industrial and Technology Management: 1-27 ‘and Economical Demand ‘Government Company ~ ‘e It'is a concer where Government departments take initiative and establish a company under company law. " # Examples of such companies in India are - | 1. Hindustan Machine Tools Ltd. 2, Bharat Heavy Electricals Ltd. 3, Sindri Fertilizers and Chemicals Ltd. Q.18 Differentiate between Partnership (Act 1934) & LLP (Limited Liability Partnership), (Act-2008). ‘ERTSPPU : Deci-17, Marks 7] ‘Abas : [ Partnership ‘Limited liability partnership | A partnership is A limited lability partnership ‘Formation governed by Parthership | is governed by Limited Act 1932. liability Partnership Act, 2008 stration | The Registration of a | The Registration of LLP is Registration partnership is not ‘compulsory. An unregistered compulsory. If LLP will be considered as registered, shall be done | partnership and its liability by Registrar of Firms. | will be unlimited if it fulfils the requirements of : partnership. It shall be Registered by Registrar of ‘Companies (RoC). ‘A partnership is not a ~ | LLP is a legal entity which is tus | AP: iP Legal Status distinct legal entity. The | separate from its partners. partners are collectively Called as a partnership firm. ( Partnership do not have separate legal entity then that of its partners) . = DECODES @ Less than PHOTOCOPY Price @ECODES @ Loss than PHOTOCOPY PriceIntroduction to Management and Economical Demand Industrial arid Technology Management 1-28 Introduction to Management ‘arid Economical Demayd [ Sxistonce rtnership comes into |. LLP comes into’ existence existence'through an | though an agreement which agreement of partners | must be in writing, LLP must which may or may not | be registered with Registrar of be in writing. companies (ROC), Number of | Minimum - 2; maximum | Minimum - 2. One must be @ members| for banking business - 10] esident of India. Maximum - » and for any other unlimited business - 20. Liabitity | The lability of ‘The liability in LLP is limited Partnership is unlimited: | to the extent of capital of LLP. and that of partneis are | However, in case of fraud by joint and several. the LLP, its lability is unlimited and partner guilty of fraud is also liable to an unlimited extent, Object | A partnership may LLP has to state the name of engage itself in any proposed lawful business in lawful business which | the incorporation document. the partners like, Line and Staff Organization : ‘* In line and staff organization, the line executives are responsible for ‘maintaining discipline, production and the staff division is ‘responsible for research, planning, scheduling, establishing standards and recording of performance. «The staff executives are in the organization because of their * expert knowledge. “The line managers are supplied with services of staff for the basic functions like production, marketing, finance, accounting personnel, R&D etc. Also the line managers are decision takers, taking decisions with the help of staff experts. Staff experts can suggest their recommendations to the line, managers. ‘* The implementation is the responsibility of line managers. Hence, the staff, experts are called as ‘thinkers’ while the line managers are called’ as ‘doers’. * Fig. Q.16.1 shows structure of line and staff organization. 1.7 : Organization Structure Q.16 Give the types of organization structure. Explain the line and staff organization. SSEISPPU : Aug-15, Marks 4] Ans.: Types of Organization : According to the structure, organization can be categorized into different types - i). Line organization/military organization ii) Functional organization iii) Line and staff organization iv) Matrix organization v) Committee organization. a | er ie | abe aie coun TIT Le @.16.1 Line and staff organization DECODE) @ Less than PHOTOCOPY Price = DECODE) @ Less than PHOTOCOPY PriceLie Introduction to Management ‘and Economical Demand Industrial and Technology Management 1-30 ‘Advantages of Line and Staff Organization 1. Staff department provides their expert knowledge. 2. Operational efficiency is increased. 3. Wastage of raw material, machine hours reduced considerably. 4. Line and staff organization offer greater flexibility. 5. The work load of line’ executives is réditced much hence they can concentrated more on the quality of the product. 6. Line -and staff functions are. clearly defined, . there is no possibility of confusion. all the are 7. It possesses of Hine “and functional organization. advantages 8. Services of staff executives can be used to train line executives. 9. Policy decision making becomes more easier because of staff executives. 10.Better chances of advancement for both: line and staff employees. . 11. Discipline and stability can be achieved. Disadvantages of Line and Staff Organization 1. Frequency conflict arises between line and staff departments. 2. Possibility of misunderstanding between line and employees if functions are not defined clearly. 3. Because of overheads of line and staff departments separately the product cost becomes very high. staff 4. Line executives depend too much on staff executives, in such conditions line executive may lose their initiative and creativity. 5. Line manager's approach to the problem is practical while the staff management approach being experts in. their field is theoretical. Q.17 What ‘ore the different organization structures? Explain functional organization. CS{SPPU : May-15, 16, 18, Marks 5, Dec-16, Marks 5} @ Less than PHOTOCOPY Price Industrial and Technology Management 1-31 Introduction to Management ‘and Economical Demand ‘Ans. : Types of Organization : Refer Q.16. Functional Organization + Functional organization is suggested by F.W. Taylor. In functional organization different experts (specialists) guide the subordinates in organization. Workers or subordinates thus receive order from several specialists or officers and are responsible for their performance to different experts. : * Fig. Q.17.1 shows the structure of functional, organization suggested by F.W. Taylor for a specific enterprise [Rear rarsoes i Biberinnenaent 7 eae Fig. Q.17.1 Functional organization Advantages of Functional Organization i) The organizational structure is-flexible and is able to respond to external or internal changes quickly. Since otitput/product is based on experts knowledge, better quality is assured. iii) iv) Functional efficiency is more. Expert ‘knowledge reduces wastages and ‘possibility - of accidents. @ Less than PHOTOCOPY PriceIntroduction to Mangement Industrial and Technology Managerient. 1-32 ‘and Economical Demand v) Reduces work load. and responsibility of specialists. vi) Planning and actual performing” separated i.e. metal and manual work is separated (division of labour and specialization) vii) ' Functional experts. are not involved in day to day activity, so they can concentrate on their function and its application. Disadvantages of Functional Organization i) Principle of unity, of command is not followed since workers are to follow instructions from various supervisors. ii) Workers always confused about their activity. iii) Co-ordination of various supervisors: (experts) is essential which is difficult. - iv) It is difficult to point out the causes of poor performance. v) Worker's initiative, ingenuity has no chance. Q.18 Differentiate the line and staff organization. SSF[SPPU : Aug-14, Marks 5] ‘Ans. : Sr. No. Line organization Line and staff organisation 1. [ Unity of cominand, | Line and staff confit. _ 2.__| Prompt decision. Balanced decision. 3.__| Lack of specialization. | Benefit of specialization 4. [Lack of co-ordination. _ | Better co-ordination. : 5. | Simpié and fexiie | Complicated and non-fextle structs structure. -Q19 What are types of Business organizations? Expk and staff organization in detail. in_ line, line SSFISPPU': Aug-17, Marks 4] Ans..: Types of Organization : Refer Q.16. Introduction to Management Industrial and Technology Management 1-33 and Economical Demand Line’ Organization : Line organization is the traditional and simplest form of organization, structure. Liné organization is also called as: military organization as it is adopted from military administration. G Chlet Execute Omtcor(CEO} PeESINOTEU| Wie) Rakes a tne Fig. Q.19.1 Line organization structure © Line organization structure is based on scaler or hierarchical principles i.¢. relative authority and responsibility. “The enterprise is divided into departments, usually by function such as accounting, marketing and so on, and a controlling head is appointed. + The important aspect of line organization is that there is a clear line of responsibility and authority right through the management structure from the governing body, to the lowest level of supérvision and ‘below. ‘Authority is derived by any level of supervision from the one immediately above. Authority can be seen to flow downwards. Each level of supervision is accountable to the one above. DECODE) @ Less than PHOTOCOPY Price @ Less than PHOTOCOPY PriceIntroduction ta Management 4 ‘and Economical Demand Industrial anid Technology Management «There'-is ‘series of superior “subordinate relationship from top-to-bottom level of organization. The authority is distributed vertically from top-to-bottom level of organization. ‘@ In line’ organization structure, everyone has a well-defined manager and there is clear definition of the routes of authority and communication. The top-level management takes the ‘major decisions and passes it to middle-level subordinates who implement. them. The middle-level management identifies: the job and assigns: the responsibility to different people according to their functions and ability. Advantages of Line Organization 1. Easy to establish and operate. 2. No confusion as authotity and responsibilities of each employee are clearly defined. 3. It is flexible in nature, since its expansion and contraction is easy also can be adjusted to the changing circumstances. 4. Discipline and loyalty is ensured due to unified command. 5. It is economical and easy to understand. 6. There is a direct chain of command and thus decisions are rapidly made and implemented. 7. Co-ordination of the activities of members of a department is simplified because of this directness of control. 8. Because of its simple structure, line organisation promotes staff discipline more easily than other forms. Disadvantages of Line Organization 1. Specialized. variety of job is “supervisor. difficult to supervise by a 2. Line organization is not suitable for large scale enterprise where high level of specialization is. required. 3. It is autocrative and dictorial in nature. 4, If requires consultation’ or co-ordination of the managerial level across the organization. @ECODES @ Less than PHOTOCOPY Price Introduction t6 anagenent Industrial and Technology Managemérit 1=35 ‘and Economteal Demand 5. To all intents and purposes each department is, autonomous within its own sphere of activity. This leads to limited opportunities for its members to acquire experience of the other functions of the enterprise. 6. The head of each department is afforded total control of his workforce and to this extent'the effectiveness of his department depends upon his capabilities. If he is active and enterprising then the department may. be able to play a stimulating role in the total organisation.’ So often, however, a departmental manager can be cautious and conservative, leading to a stagnating departments. ‘Line and Staff Organization : Refer Q.16. 1.8 : Formal and Informal Organizations Q.20 What are formal and informal organizations ? BR TSPPU : Oct-16, Marks 2] ‘Ans. : Formal organization +A formal organization has a well defined structure that may describe its authority, purpose, accountability and responsibility relationships. «The also defines the channels through which communications take place. All organization members have clearly specified jobs. The hierarchy of objectives are clearly stated. structure © Formal organizations are durable and planned. The formal organizations are relatively inflexible due to their hierarchy. Characteristics of Formal Organization 4 * Well detined rules and regulations. + Bound by delegation. * Axbitrary structure. @ Less than PHOTOCOPY PriceIntroduction to Management Industrial and Technology Management 1-36 and Economical Demand + Determination of objectives and policies. * Limitation on activities of people. * Strict observance of principles co-ordination. Informal Organizations * Informal organization refers to’what people ‘do of their own in relation to their needs, emotions and attitudes. Because of friendship, kindship or close relationships human beings associate themselves in groups of their own choice. ‘Informal organization is loosely “organized, flexible and spontaneous. Membership. in informal organizations may be gained either consciously or unconsciously. The exact nature. of relationships among the members and goals of organization are unspecified. Peoples are not bounded by procedures and regulations. + Under informal organization likes and dislikes are more important than delegation of authority and responsibility. Freedom. of action is the silent, féature of this’ organization. Informal organization. may extend not only to individuals but also to groups within and outside the organizational set up. Characteristics Features of an Informal Organization * Informal organization develops spontaneously. «It is based’ on informal authority. that attaches to the person, not to the position. * It provides satisfaction of social needs. * It provides a good channel of motivation and’ communication. + It has great impact on productivity and job satisfaction. @.21 State the characteristics of formal organization. CSISPPU : Oct-16, Marks 2) « Ans. : Refer Q.20, : END...25 Technology . - and Industrial Management 2, Industrial Management Q.1 Define and explain what you understand by Industrial engineering ? What is'its importance ? GISPPU : Dec-14, Marks 8] ‘Ans. : Industrial engineering : Industrial engineering is the branch of engineering that is concerned with the efficient production of industrial goods as affected by elements such ‘as plant and procedural design, the management of materials and energy, and the integration of workers within the overall system. * Industrial engineering as practiced today can be explained by identifying three components : 1. Human Effort Engineering 2: System Efficiency Engineering . 3. Systems ‘Design, Installation and Improvement Management. © All methods and techniques of industrial engineering can be categorized under these three major components. Definition : Industrial engineering is concerned with the design, improvement and installation of integrated systems of people, materials, information, equipment and energy. It draws upon specialized knowledge and skill in the mathematical, physical, and socialsciences together . with -the principles and: methods of engincering analysis and design, to specify, predict, and evaluate the results to be obtained from such systems. CBECODES@ Less han PHOTOCOPY Price @-net le Technolo and industrial Management Industrial and Technology Management 2-2 Importance of Industrial Engineering * Industrial, engineering make processes better in the following ways : |. More efficient and more profitable business practices Better customer. service and product quality Improved efficiency , Increased ability to do more with less Making work safer, faster, easier, and more rewarding Helping companies produce more products quickly Making the world safer through better designed products Reducing costs associated with new technologies ~ re 2.2: Technology Management Q.2 Explain in brief industrial and technology ‘management. : ISPPU : Aug.-14, Marks 2 Dec.-17, Marks 3] Ans. : Technology Management (TM) + Technology Management (TM) is set of management disciplines that allow organization to handle its technological fundamentals to create competitive advantage. Role of technology management in organization is understand the value of certain technology and tum ‘technologically intensive business ideas jnto commercial success generating wealth by creating value to customers. “Technology Management. (TM) is the management of technological capabilities to shape and accomplish’ the strategic and operational objectives of an organization Q.3 Explain the’ importance of technology management { economy. GSTSPPU ¢ Deewt4, 15, Aug, national 7; Marks 4] Ans. : ¢ Management of technology consists of the managément of the acquisition and utilization of technology to achieve the strategic goals of the enterprise in its environmerit. @ECODEY @ Loss than PHOTOCOPY Price i | | | j i | i ar ‘Technology Industrial and Technology Management 2-3 and Industrial Management « Management of. technology is’ significant is today's business scenario in following aspects -_- 4. Technology strategy : * Technology management introduces technology strategy involving the process of linking technology to the business concept and the value creation process and- to. understand the rélationship between business strategy, technology and product life cycles. 2, Technology dynamics : «The technology: dynamics involves the evolutionary forces and patterns that lead to the dévelopment of technology over time and in societies. : ‘elt helps to understand. the basic definitions of technology, the dynamic nature of technology and its reflection in management decision making, as well as the lateral thinking stimulated by the functional perspective; to become aware of the particular context created by observing technology in a specific situation. 3. Capability : «The capability study helps to understand the concept of technology as capability and to develop the language and graphical means to record and communicate practical information regarding capability to non-technical senior management. «To apply: the same framework to. quantify technology gaps that need to be addressed and the ways and means to bridge these gaps. To develop some skill in the application of the: concepts. 4. Innovation « The objective of the Innovation is to trace the nature and content of technology-based innovation, to understand. the. difference between invention and innovation and to confirm the Key’ role of the human resource and the working environment on innovation. 5. Coporate environment : «The objective for the topic on the corporate enviroiment is to identify and understand the external factors that. influence the (DECODES @ Less than PHOTOCOPY PriceTechnology “Industrial and Technology Management 2-4 ‘and Industrial Management enterprise, and more specifically the management of technology “in the enterprise. * Technology ‘could provide competitive advantage through new products or product attributes or could serve to counter threats posed by competitors, government policies or even changes-in nature. The role of government and government policies to support or hinder enterprise success should become "visible. Q.4 Write short note on technology management at various level ESTAug.-15,17; Marks 6] Ans, : Technology management can be classified into two levels. 1, Macro Level 2: Micro Level Macro Level '* Macro level is a field of knowledge concerned with the setting and implementation of policies to deal with technological development and utilization of technology on society, organization and individual. * Macro technology management commonly refers to technology management at the national level such as : 1. Financial organizations 2. Universities, research organizations 3. Government agencies (regulation bodies). ‘*. The functions of macro’ level technology management include : 1. Planning for the development of technological capabilities at the national level. 2, Identification of key sectoral technology and related fields’ to be developed. ; 7 3. Determining ‘make’ or ‘buy’ decisions, ie, whether importation oF self-development is to be pursued. 4. Establishment of institutional mechanisms. for directing and coordinating the development of national technological capabilities. 5.-Design of policy measures for controls. 5 Technology “Industrial and Technology Management 2-5 and Industrial Management “Micro Level '* Micro level is an interdisciplinary field concerned: with the planning, development and implementation of technological capabilities to shape arid accomplish the operational and strategic objectives. of organization in the creation and sustainability of competitive enterprises. ‘* Micro technology management concerns technology management at the firm or project level. It includes : 1. Responding to competitors who are using technology as a strategic weapon. 2, Technology’ Strategy / Planning : Integrating technology strategy into the overall corporate stiategy.- 3. Forecasting / Intelligence : Identifying and | evaluating technological options and innovations and the factors relating to their success and failure 4, Directing research and development _ itself, determination and definition of project feasibility. 5. Monitoring and ‘planning technological replacement. 6. Internal acquisition (R and D-Management) 7. External acquisition (Technology Acquisitions and. Collaborations) 8. Exploitation/Assimilation (Technology Transfer / Utilization / ‘Commercialization) 9. Protection (Knowledge Management, R'and D Management) 10. Learning (Knowledge Management) including obsolescence and 2.3 +: Classification of Technology Q.5 Explain in detail the classification-of technology. SSTSPPU : Dec-14,15,16, May-15,16, Aug-15, Marks 4] OR Give the classification of technology and explain each in detail. ‘STSPPU : Aug.-17, Marks 6] @ECODES @ Loss than PHOTOCOPY Price @ Less than PHOTOCOPY Price