Professional Studies & Enterprenuership

PROFESSIONAL STUDIES & ENTREPRENEURSHIP

SIDBI (Small Industries Development Bank of India) The small industries development bank of India a wholly owned subsidies of IDBI is the principal financial institution for promotion financing and development industries in the small, tiny and cottage sectors and coordinating the function of other institution arranged in similar activities .SDBI which became operation in respect of small sector with special emphasis on village cottage and tiny sector. SDBI activities include refinancing of term loan granted by SFCS/SFDC/Commercial Banks and other eligible financial instructions and direct discounting and rediscounting bills arising out of scale of machinery/ capitates equipment components by manufacturers .Term loan equipment finance to existing well run small scale units taking up technology up gradation/ modernization. It extends assistance for infrastructure development of industrial areas under schemes like seed capital equity fund Mahila Udyam Nidhi and self employment scheme for ex: - Serviceman, SIDB provides equity types resistance to special target grooms like new promoters, women and ex-serviceman. It provides resources supports KVIC, NSIC, SSIDC etc and offers technical and related support service for the development of small sectors. SIDBI has also created ventures capital fund to encouraged small ventures with innovative features in the small scale sectors. Effective from 27 th March 2000 the SIDBI act has been amended to unable transfer of at 61% of SIDB/equity help by IDBI to public sector financial entities. SIDO (Small Industries Development Organization) Established in 1954. Head Development Commissioner Work in three states: - Assam, Meghalaya. This organization was set on in 1954 with development Commissioner as its head. Its main objects to maintain close relation with the state government and different organization and institution of control and state level. It has following important functions: 1. Co-ordination: - This organization co-ordinates the work relating to the development of the small scale industries according to the all India policy programs of various state Government and the programs for the development of large and small industries. 2. Industrial Development:-This organization suggests a similar pattern for the whole country. It assists giving technical advice and helps in the procurement of raw materials and machinery. 3. Industrial Extension Service:-It works for the marketing assistance training to help the small industries improvement in productivity and the competitive strength. SFC (State Financial Corporation) At present more than 20 states financial corporation are functioning exceptTamilnadu Industrial Investment Corporation which was set up as a joint stock company in 1949. KANAK KUMAR ‘KANAK’

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All other corporation been set up under the state financial corporation act-1951. The SFC’s are the state level agency established for the development of small and medium industrial units within there respective states. Thus they provides loans and under writing assistance to industrial units having paid up capital reserves not exceeding 1 carore .The maximum amount that can be sanctioned to an industrial concern by SFC is Rs. 30 lacks . The Industrial Development Bank of India (IDBI) has made a significant contribution towards the share. Capital of the SFC’s more over the SFC depends upon the IDBI for refinance in respect of term loan granted by them a part from the above SFC’s also report to temporary borrowing from the RBI, from IDBI and by the sale of bonds. IDBI (Industrial Development Bank of India) IDBI is the apex banking institution in the long term industrial finance set up in 1964 as a wholly owned subsidiary of the RBI. IDBI was declined from the RBI on 16th Feb 1976. When its entire share capital was transferred to the central government consequently. Its role was also enlarged to enable it to function as the principle financial institution for coordinating the function and activities of all India term lending institutions to some extent the public sectors. The activities of IDBI fall in to the following categories: 1. Direct assistance to industrial concerns. 2. Refinancing industrial loans granted by banks and other financial institution. 3. Rediscounting of bills. 4. Assistance to financial institution by way of subscription to their share and bonds. The IDBI holds the share in the state financial corporation and the unit trust of India and acts as a holding company for there institutions. The financing of exports was also undertaken by the IDBI till the establishment of EXIM bank in March 1982. Besides the share capital of Rs. 25 carores wholly subscribed by the central govt. The IDBI raises the bulk of its fund from: i) Market borrowing by way of bonds. ii) The borrowing out of national industrial credit (long term operation) fund of the RBI. IDBI also takes short term advances from the RBI against lodgment of use once bills. Consumer Protection Act-1986 The consumer protection act-1948 came into force on 15.04.87. It extends to whole of India except Jammu & Kashmir. The objective of the act is to provide the consumer a simple speedy and inexpensive may of redressed of grievances in case of any deficiency/defect in goods and services brought /used by him for a consideration. The remedy available under this act is in addition to any other low for the time being in force. Q. Who is a consumer for the purposes of this act? Answer: A consumer can be a consumer for goods or consumer for service. A consumer is one who buy some goods for consideration for his use or one who uses such goods with approval of such buyer. The consumer doesn’t include any body who buys goods uses the same for commercial purpose. The intention of the act is to restrict the benefit of act to ordinary consumers purchasing goods for their own consumption and not for large KANAK KUMAR ‘KANAK’

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scale manufacture or processing activity carried for profit. For the purpose of services, a consumer is a person who avails of any consideration or any other beneficiary of such services with the approval of the former. TCOs (Technical consultancy organizations) TCOs were set by IDBI, IFCI and ICICI on collaboration with state level financial/ development institution and commercial banks. Presently 16 TCOs are working in the country. Some of them are covering more than state. TCOs provide assistance in the field of preparation of project reports and feasibility studies, training of entrepreneurs. Project implementation rehabitation, management. Consultancy detailed design engineering and turn key services, energy audit and conservation. SISI (Small Industries Services Institute) It has its own— (1) Workshop, (2) Technical Project and (3) Training Programs. The small scale industries development organization function through the SISI situated one each in all the state. These have full flanged mechanical work shop and testing laboratory. Mechanical work shop, heat treatment, milling etc. to undertake the jobs for small scale industries laboratory provides facilities for chemical testing, analysis of various row materials and testing for strength. Such laboratories and work shops are situated to the important industries towns. Institutes also offer the technical service regarding selection installation and layout of machinery preparation of designs, drawing and model schemes. It provides facilities of on the spot advice through field visits to the factory sites.

PROJECT It is a unique venture with a beginning and an end. Under taken by people and to meet established goals within define constraints 7 time resources and quality. It is a document that describes the purpose, objectives, scope and deliverables of project. We can also define project as a planned and goal oriented socio-economic development activity requiring financial investment or human participation over a given time. Examples include construction of physical infrastructure the extension of credit or financing, the diffusion of a new technology, the conservation or management of natural recourses and human resources development. A project definition describes exactly the common understanding its extent and nature, among the key people involved in a project. The definition provides a foundation upon which successful project are built. In many cases a definition serves as a sort of contract between the parties participating in a project, clearly stating expectation for project time resources and result. In lay man’s language we can say that a project is an idea. A project can also be started as a plan.  Phases In Installing A Project Installing a project passes through different phases depending upon type of project. For the purpose of study, let us consider that a project passes through following phases:  Project Identification  Project preparation or Formulation KANAK KUMAR ‘KANAK’

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(a)Preliminary project study (b)Feasibility study  Project appraisal  Negotiation  Project approval  Detailed project planning  Project implementation 1. Project Identification: - First phase of the project is concerned with identifying project which has high priority, possible to finance the project and the users are interested in the project. These project must also meet a prima-facie test of feasibility i.e. it is viable from technical and financial point of view; cost of the project should be less than the expected benefits. Project ideas emerge during analyzing problems, conducting macro economic and social analysis, pressure from local people etc. The project is then identified so as to provide the basis for appropriate development strategy. Identification is a mixture of both formal and informal processes. Following are the four aspects which are examined starting from the identification stage and continue in greater and greater details during subsequent stage. These are attended to the extent needed at that particular stage. i) Functional aspect: - This includes operational and civil structural plans. ii) Location and site: - This includes climate to epigraphy, environment, geology, accessibility, infrastructure, hydrology, social economic and political aspects, availability of water supply, electricity, construction material, land, labour etc. iii) Construction aspects: - This includes design technical requirement etc. iv) Operational aspects: - Project management, maintenance, review and expenditure, operational safety and health. For the purpose of identifying the project, a study of various alternatives is necessary. To assess the merits of alternative proposals, data available with different agencies are studied thoroughly. Economical aspects of these alternatives should also be considered. Topographical maps, official records, geological surveys etc are also considered. 2. Project preparation or Formulation: - This is an important phase and decides whether the project should be executed or not, project formulation is done following two phases(a)Preliminary project study: - In this phase preliminary information related to the project are collected and analyzed to help the decision matter to decide whether it is desirable to apply more resources to take up detailed study. (b)Feasibility study: - This is a detailed study conducted considering all relevant elements so as to help the decision maker to decide, whether the project should be taken up positioned or abandoned. This is a preliminary report prepared for taking decision whether a feasible study should be undertaken or not. The report consists of rough determination of the utility of the project. A rough engineering estimated cost potential funding sources expected revenues from the project after its completion, broad location etc. this also indicates engineering and profitability aspects as compared to other similar project already executed. The data already available with different agencies are utilized in preparing the report. If the results are clearly unfavorable, further work on the project is abandoned. If the results of the report are found to be favorable and taken within the policy of the govt. further steps are initiated for carrying out the feasibility study. To know whether the reports in favorable following sectors need greater emphasis: KANAK KUMAR ‘KANAK’

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 Demand: - Demand estimate are based or satisfying overall national or regional demand. The regional demand influences the location and size of the project/projects that will need to be constructed. Existing project or services need to be considered for knowing the demand & location for the project.  Preliminary technical feasibility: - Various alternative ways for technical and engineering solution are assessed from the point of view of location, civil structure interlinked with other project & resources etc.  Alternative Location: - Various alternative locations of the project/projects or services are given in the report mentioning merits & demerits of each.  Preliminary economic feasibility: - This is based on comparison with similar other existing project, if past experience is not available, available advice of exports can consultants can be sought .The cost of the existing projects help in deciding the approximate estimate of the project by making adjustment of the price riseExisting or otherSystem factors affecting the price. Design alternative solution produce (for each soln.)

Cost

Technical

Benefit

Risks (Consider) Social Aspects

Cost Benefit Analysis

Economic Aspect

Recommendation and Presentation Fig:-Project

Identification & Feasibility Study

 Benefit: - The project may be beneficial for the local public or for national or regional level which help is boosting the production or services or the satisfy needs.  Methods of implement: - At this stage it should also be indicated as to how the project can be implemented and whether the agency has sufficient skill experience and resources need for implementation.  Implementation: - Based upon the assessment of different alternatives a favorable alternative should be recommended giving justification for its selection. Feasibility study of the project is the most exhausting of all the planning stages, as stated above a project is syntactically examined in depth at this stage for various aspects lime a technical, financial, commercial, social managerial and organizational. • Feasibility study must consider following point in the report: 1. Project need or project justification, objectives and goals, Data about the industries and project in particular. 2. Analysis of existing condition. 3. Demand and supply, analysis and project contribution to feel the gap between demand and supply. 4. Technical analysis:-Various technical aspects related to the project should be analyzed the aspects considered \should be process to be adopted. Methods of KANAK KUMAR ‘KANAK’

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production equipment to be used raw materials, fuel, power and water requirement .Selection of location and its justification from the point of view of availability of raw materials transportation, man power etc. 5. Social impact consideration:-Existing social and environmental condition and the impact of project should be situated and describes in the report. 6. Financial aspects:-Total investment to be made on the project giving break up for individual major items like land, building, plant and machineries, payment of weighs, cost of materials etc. Financial viability of the object is considered by knowing payback, period and return on environment. Payback period so the no. of years required getting investment back. 7. Economic aspects: - After knowing the financial aspects the study should indicate whether the project is economical or not. 8. Implementation details:-The report should give details about implementation, Administrative arrangement, man power, recruitment details etc. Point to be included in the feasibility study: • Government policy in respect of industry of which the project in under consideration. • Specification of the output and technique of production. • Capacity. • Alternative location. • Preliminary estimate of venue, cost, capital and operating. • Marketing analysis. • Raw material investigation • Specification and source of supplier. • Estimation of material, energy and other I/P cost. • Requirement of equipment with their type capacity cost and source of supplier • Know-how production. • Site investigation. Following major aspects are generally considered in the process of project • Details of building, structure of project, yard facilities with their type, size and cost. • Layout. • Category wise labour requirement and labour cost. • Resources available to complete the project. 3. Project Appraisal: - Feasibility report is examined by different agencies from their respective view. The government agencies give more emphasis on socioeconomical aspects while the financial institution will critically examine its technical feasibility and financial viability along with managerial competence of the organization undertaking the project. Project appraisal is the most important phase or the project work, because it provides a comprehensive review of all aspects of the project and is the culmination of the predatory work. Appraisal is therefore an analysis ex-anti, all though the project has not been but into operation. The cost benefit of the project is estimate to arrive at the decision to take up the project. Aspect considered for project appraisal:• Technical aspects: - It has to ensure that project is soundly designed and appropriately engineered, appraisal is son for technical alternatives considered. KANAK KUMAR ‘KANAK’

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• Institutional Aspects:-Institutional appraisal considers whether the entity is properly organized and its management is adequate to perform the job, whether local facilities are utilized. • Financial and economical appraisal: - Financial appraisal is done to engine that their ox sufficient funds to cover the cost for implementing the project. • Time Value:-Since cost and benefits don’t technique at the same time. The project appraisal technique has to reduce benefits and cost to a time dimension. Time involves sacrifices in the present over the future. • Investment criteria:-Based on financial and economical analysis. Next setup is investment decision. This decision is based on the exercise to find out the return which would be available on capital invested. Investment decisions are taken considering the following factors: o Alternative use of resources. o Life span of the project. o Whether the project is form individual of form society point of view. o Cost and returns accruing at different point of time. • Capital rationing: -- Since resources are generally available in limited quantity and therefore need to be rationed among competing demands and priorities, in open market and for a private firm, the funds cone from outside the firm of project internal resources. • Environment:--In project appraisal social effects are also taken into account while considering the implication of projects undertaken either by private or public authorities such intangible social costs and benefits through not measurable has an important bearing and hence should be high lighted. 4. Negotiations: - In the next stage of the project cycle discussion take place between the project authorities and financial institutions/ Government department to ensure success of the project. 5. Approval of the project: - After going through the stage of project appraisal at various levels and holding discussion project is approved by the government. 6. Project planning: - Planning a project is very important task and should be taken up with great case as the efficiency and economy of the whole project largely depends upon its planning. While planning a project each and every detail should be worked out in anticipation and should be considered carefully considering all the relevant provision in advance. The actual construction of the project is some time called as pre-construction project plan. This helps in effective use of resources and draws detailed plan of implementation of the project. Plans are developed and translated into activities and tasks, estimates are made moue precise and accurate, internal administrative system information system arrangements for finance are made with the financial institutions for timely receipt of loans. 7. Project implementation:-Project cycle is actual implementation of the project for its construction and operation. For proper project implementation, emphasis should be on action as per planning. For this purpose organization set up and sound project management system should established so as to manage the project in a rational scientific manner , during the implementation stage of the project; there is need for continuous monitoring to ensure project implementation as per time and cost schedules.  Detail Project Report

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The detailed project reports cover all the aspects of business from analyzing the market, confirming availability of various such as plant and machinery, raw materials to forecasting the financial requirements, the scope of the report includes accessing market potn, collaborators investment decision-making corporate diversification planning etc, in a very planned manner by formulating detailed manufacturing techniques and forecasting financial aspects by estimating the cost of raw material., formulating the cash flow statement, projecting the balance sheet . The DRR is prepared by highly qualified and experienced consultation and the market research and analysis are supported by a panel of experts and computerized databanks. Each Detailed Project Report Contains:1. Introduction: i)Beginning ii) Project introduction iii) Brief history 2. Market Survey: i) Present market position. ii) Expected feature demand. 3. Plant and machinery. 4. Raw materials 5. Manufacturing techniques 6. Personal requirement 7. Financial aspects

Critical Path Method(C PM) The use of this technique Modern Network System has become very essential in the developing countries like India. This was developed in 1957 and is suitable for the construction of project and for scheduling plant maintenance. C.P.M. technique is useful to determine how best to reduce the time required to program routine production. The direct and indirect expenses; CPM was first used by the research team lead by Morgan R. Walker to reduce the time required to perform routine plant over hauling, maintenance and construction work. With the help of CPM, a manager can know that which operation should be started after completing a particular operation and what is the status of the worker as related to the scheduled timing, although an experienced person knows it but this information available from the network helps all concerned. Advantage:1) It helps in asserting time schedules. 2) With its helps, control of the management becomes easy. 3) It makes better and detailed planning possible. 4) It encourages discipline. 5) It provides a standard method for communicating project plans schedules and cost performances. The C.P.M. technique requires grater planning than require otherwise, thus, this method increases the planning cost but this can easily be justified by concentration attention a critical paths only and avoiding unnecessary expenses on the strict supervision other the whole program. District Industrial Centre (DIC) KANAK KUMAR ‘KANAK’

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The government has set up district industries centre at the district level. These centers provide all the service & all the facility to the entrepreneurs at one place for sitting up small & village industries. These center renders various service required by small entrepreneurs including identification of a suitable scheme, preparation of facility report arrangement for supply of machinery and equipment, provision of raw material’s credit facilities and inputs, marketing and extension service. DIC is a district industries headed by a general manager who is assisted by 7 functional managers, each is a specialist in following subject: 1. Economic Investigation 2. Machinery and equipment 3. Raw materials 4. Research extension and training 5. Credit 6. Marketing and 7. Cottage industries  Role of credit manager:-The credit manager has been deputed by the banks of the DIC. They provide all guidance, assistance, support required by entrepreneur in obtaining the right type of credit in required amount at the proper time from banks and financial institutions. The credit managers are required to recommend the credit proposals of small entrepreneurs after due arrival (appraisal) to the credit institutions. The entrepreneurs are therefore not requiring furnishing the same particulars to the bank again. The credit manager doesn’t posses the authority to sanction loan nor are they responsible for the recovery of the loans. They act as liaison authority between loaner on the one hand and the credit institutions on the other. The Indian Factory Act (1948) This act safeguards the interest of workers engaged in factories. The act is now applicable in whole of India. It comes first into force from 1 st Apr 1949 and was extended to the union territories of Goa-Daman Div in 1963 and to the state of Jammu & Kashmir in 1970. This act has defined following terms:1. Adult: - A person who has completed defined age described in the act. 2. Adolcent: -A person who hasn’t completed 15th of age. 3. Child:-A person who hasn’t completed his 15th years of age. 4. Calander year:-A period of 12 months from 1st January. 5. Prime mover:-Any engine motor or other appliance which generates or otherwise provides power.  License and Registration:1. The act specifies that before a factory can be started: o Prior permission for the state of the factory construction or extension has to be obtained from the chief inspector. o Procedure & specification should have been approved by the factory Inspector. o The factory has to be registered and the license-fee has to be paid. 2. If an application for permission referred at item: o Above accomplished by the plans and the specification required by rules referred an item. o Above sent to the state government or the chief inspector by registered post no order in communicated to the applicant within three months from the KANAK KUMAR ‘KANAK’

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date on which it is to be sent the permission applied for the said applicatio0n shall be demand to have be granted. 3. Where a state government or a chief inspector refuse the grant permission to the site construction or extension of factory or to the registration and licensing of a factory, the applicant may within 30 days of the date of the date of such refusal is from the state government in any other case.  Inspecting staff:-The act permits the state government:o To appoint chief inspector and the other inspector to supervise the condition in factory and to see that provision of the act are practiced. o To appoint certifying surgeons to examine the condition in factory to the find out whether any process or action in manufacturing is harmful to cause any industry to the health of workers.  Health Provision:-This act prescribes the following provision for maintaining the health of workers and reducing the possibilities of injuries to their bodies: o Cleanliness: - Every factory shall be kept clean & free from gases arising from any drain or their nuisance for their purpose. o Ventilation and Temperature. o Artificial and humidification: - If there is an artificial humidification, it should be of prescribed standard and created by prescribed method. The water used for such humidification shall be clean and free from dust. o Lighting: (a) Sufficient & suitable lighting whether natural or artificial or both shall be maintained at the working place. (b)All glazed windows and sky light shall be kept clean on both the inner and outer surfaces. o Drinking water. o Bathrooms: - If the work in the factory is of such a nature which involves dirt, a sufficient number of bath-rooms shall be provided.  Safety provision: 1. Fencing of machinery: a. Every moving part of a prime mover, every fly wheel. b. Head race and trail race of every water turbine. 2. Work on or near machinery in motion: -The work on or near machinery (moving) shall be done by a specially trained adult worker wearing tight fitting clothing.  Welfare provision: 1. Washing facilities. 2. Sitting facilities. 3. First aid facilities. 4. Welfare facilities: - Welfare officers shall be employed in every factory employing more than 500 workers. The government may prescribe the duties, the equalification and conditions of service and number of such officers. Workers Compensation Act-1923 It is an act to provide for payment by certain classes of employees to their workman of compensation for injury by accident. Thus this act protects the workers as far as possible from hardship arising from accidents. The object of awarding compensation is to replace the actual loss suffered by the workman. It came into force from 1 st July 1924.

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Definition: -Department means any of the following relatives of a diseased workman namely; a wife, a minor legitimate son and unmarried legitimate daughter or a widow mother. Partial Disablement: -This disablement is of a temporary time of accident resulting in such disablement. Permanent total disablement shall be demand to result from injuries where the aggregate percentage loss of earning capacity amounts to one hundred %.of permanent nature and which he was capable of performing at the Wages: -It includes any privilege or benefit which is capable of being estimated in money other than a travailing allowance or any other contributions paid towards pensions etc. Workman: - It means any person other than a person employment is of a casual nature and who is employed otherwise than for the purposes of employer’s trade or business, who is employed in any such capacity specified monthly wages. United Nation Industrial Development Organization It provides developing and under developed countries with advice on all aspect of industrial policy converted into special agency of UN (united nation) in 1985, Head office- Vienna (Austria) Industrial Dispute Act:-This is an act to make provision for the investigation and settlement of industrial dispute and for certain other purpose. (1)Average pay:(a) In 3 complete months for monthly paid work-man. (b) In 4 complete weekly paid work-man. (c) In full working days for daily paid man. (2) Award final determination by any labour court, industrial tribunals or national industrial tribunals. (3)Employer (4)Industry (5)Industrial Disputes (6)Dismissal of workers (7)Suspension of worker (8)Settlement (9)Strike (10)Workman Authorized under the Act:(1)Work committee (2)Conciliation officer (3) Board of conciliation, IPC193/228 (4)Courts of enquiry (5)Labour court (Judge) High court or, district session Judge having 3-years experience) (6)Industrial tribunals: (a)Wages (b) Compulsory and other allowance. (c) Bonus (d) Classification of grades (7) National tribunals. Employee State Insurance Act (ESI Act)-1948

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This act provides for certain benefits to employees of factory, in cask of sickness. Maternity and employment injury and makes provision for certain other matters. Definition:(1) ‘Contribution’ means the sum of money payable to corporation by the principle employer in respect of an employee and including amount payable by or a behalf of the employee in accordance with the provision of this Act. (2) ‘Corporation ’means employees state insurance corporation set up under this Act (3) ‘Development ’means any of the following relation of a diseased/injured person namely: (a) A widow or wholly dependent legitimate or adopted son, unmarried legitimate or adopted daughter or widow mother. (b) If wholly or impart dependent on the earning of the insured person at the time of his death or parent other than a widow mother’ (4)’Employment injury’ means a personal injury to an employee cause by accident other than occupational disease arising out of and in the course of his employment being insurable employment. Contribution: -All the employees in factories and other establishment covered under this act. The central and state govt. and local bodies give grants to the state govt. fund. The responsibility of paying the employers and employee share of contribution is placed on the principal employer. The employee’s share which depends on the rate of the emoluments is to be deducted from their wages by the employer. Benefits: - the benefits provided under the act to insured person are: i. Sickness benefit. ii. Maternity benefit. iii. Disablement benefit. iv. Dependent benefit. v. Medical benefit. vi. Funeral benefit. Adjudication: a) Constitution of employees insurance. b) Power of employee’s insurance court (Has all power of civil court) and may can Rs.500 as penalties. The Minimum Wages Act-1946 The concepts of minimum wages first evolved with reference to remuneration of workers in those industries where the level of wages was substantially low as compared to the wages for similar type of labour in other industries. An for back as 1928, the international labour conference of international labour organization at Geneva, adopted a draft convention on minimum rates of wages can be fixed for workers employed in industries in which no arrangement exist for the effective regulation of wages and where wages are exceptionally too. The need of a legislation for fixation of minimum wages in India received an impacts and bill provide for machinery for fixation and periodical revising of minimum wages was prepared and discussed at the 7th session of the Indian labour conference NOV-1945. It was introduce in the central legislative assembly in 11th Apr 1946. Important provision of the Act (1) Interpretation (2) Fixing of minimum rates of wages (3) Minimum rates of wages (4) Procedure for fixing and revising minimum wages (5) Advisory board KANAK KUMAR ‘KANAK’

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(6) Central advisory board (7) Composition of comities. (8) Fixing hours for normal working day. (9) Wages of worker who works for less than normal working day. (10) Wages for two or more classes of work. (11) Minm time rate wages for piece work. (12) Maintainace of registers and records. (13) Penalties for certain offence. (14) Exemption of employer from liability in certain cases. (15) Power of state government to add schedule: -The appropriate government after giving by notification in the official gazette not less than three months. (16) Power of the central government to make rules: -The central government may subject to the condition of official Gazette, publication by notification in the official Gazette make rules prescribing the terms of the office members. The procedure to be followed in the conduct of business, the method of voting, the number of billing up casual vacancies in membership and quorum necessary for the transaction of business of the central advisory board. Industrial Finance Corporation of India (IFCA) IFCI was the first development bank established in India in the year 1948. Its primary objective was to assist industry especially when accommodation from traditional source of finance for the creation of fixed assets was felt inadequate or when resources to capital market was difficult. IFCI provides assistance to the industrial concern in the following ways: 1. Long term loans- both in rupee and foreign currencies. 2. Under writing on equity preference and debentures issues. 3. Subscribing to equity preference and debentures issues. 4. Granting the deferred payment in respect of machinery imported from abroad or purchased in India. 5. Granting of loans raised in foreign currency from foreign financial institution. Financial assistance may be availed of by any limited company in the public, private or joint sector or may by a co-operative society in corporated in India, which is engaged or process to be engaged in the specified industrial activities. Such financial assistance is available for the setting up of new industrial projects and also for the expansion diversification renovation or modernization of existing ones. The corporation also provides financial assistance or concessional terms for setting up industrial project in industrially loss developed districts in the state/union territories notified by the central government. The authorized capital of the IFCI (Rs. 22.5crores) has been subscribed by the industrial development bank of India (50%) and by scheduled banks, co-operative banks, insurance concerns and investment trusts etc, by a recent amendment to the IFCI act. The central govt. has been authorized to raise the authorized capital up to an amount not exceeding Rs 100crores. The corporation raised its resources by way of: i. issue of bonds in the market; ii. borrowing from the central govt. and iii. foreign credits. Khadi & Village Industries Commission (KVIC) The KVIC is established by development of khadi and village industries in a rural area. The main objectives of KVIC are provision of unemployment of rural areas skill KANAK KUMAR ‘KANAK’

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improvement transfer of technology. Rural industrialization and building of strong rural commodity spread to make the rural people self reliant the significance characteristics of khadi and village industries under the preview of KVIC are other ability to use locally available row material, local skill, local market, low per capital which can be easily adopted by the rural people short gestation period and above production of consumers goods. KVIC activities have now reached over 2.35 Lakhs villages in country providing gainful employment opportunity to the rural people. The wide ranging activities of KVIC include procurement of row materials. KVIC implements its development programs through 30 states. Khadi and village industries board which are statuary organization setup under state legislation. 3500 industries are registered under society registration act 1860 and over 30,000 co-operative societies are registered under state co-operative act. KVIC also assists individual entrepreneur through state khadi and village industries. Industrial Credit And Investment Corporation Of India (ICICI) The ICICI was setup as a joint stock company in 1955, with the objectives to channelise the World Bank fund to industry in India and to help to build up a capital market. Initially all its capital was held privately by companies instruction and individuals, but today a very large parts its equity capital is held by public sector institution such as banks, LIC, GIC and its subsidiaries as a result of subsequent natinalizat8ion of these institution. The most significant feature of ICICI’s operation is the foreign currency loan sanctioned by it. Foreign currency loans are sanctioning half of its total disbursement. This has been possible because of the facility it enjoys of raising funds the for3eign currency. The World Bank has been the single largest source of such resources. The ICICI also raises fund from UK, KFW and DMPF. Since 1973, the ICICI has entered the international capital market also for raising foreign currency loan. The major portion of its debentures is the capital market. The ICICI also borrows from the Industrial Development Bank Of India and the government. The major portion of its assistance has gone to the private sector, while it also lays emphasis on financing project in the backward class. The ICICI has also contributed to the growth of the capital market by under writing of corporate securities and by directly investing in such securities. It has built up a full-fledged merchant banking division which provide advisory services in financial matters to the corporate sector. Export And Import (EXIM) Bank The Export Import Bank Of India is the latest apex banking institution in India setup on the 1st January 1982. The EXIM Bank provides financial assistance to importers and function as the principal financial institution for co-ordination. The working of other institution engaged in financial of export and import of goods and service. It provides refinance facilities also to the commercial bank and financial institution against their export-import financial activities. The function of the EXIM bank includes: 1) Financing of export from and import in to not only India but all countries for goods and services. 2) Financing of joint ventures in foreign countries. 3) Financing of export and import of machinery and equipment on lease basis. KANAK KUMAR ‘KANAK’

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a)

4) Providing loans to Indian so as to enable it to contribute in the share capital of a joint venture in a foreign country. The bank also undertakes limited merchant banking function such as under riding of stocks shares bonds of companies engaged in export or import and providing technical administrative and financial assistance to parties is conception with export or import. The authorized capital of the bank is 200 carore paid up capital Rs. 50 carore subscribed by the central government which would also grant among 20 carores to the bank. The bank analyzes resources from: The open market through the issue of bonds and ventures b) From RBI from its national industrial credit (Long term operation). c) Can borrow foreign currency in or outside India. Entire business of the industrial development bank of India relating to export financing has been taken over by the EXIM bank. EXIM bank operates three broad programs of financing loans re-discounting and grantage as present running programs are operated by the bank as follow: A) Loans to Indian companies are provided under its 1. Direct financial assistance to exporters. 2. Technology and consultancy services. 3. Overseas investment financing for equity participation by an Indian company in joint venture abroad. 4. Pre-shipment credit in case of contract for capital goods. B) Loans to foreign government, companies and financial institutions are provided under its: 1. Overseas buries credit scheme. 2. Lines of credit to foreign govt. 3. Re-landing function to bank overseas. C) Loans to commercial bank in India are available under: 1. Export billing. 2. Re-discounting scheme (short term bills). 3. Refinance export credit guaranty programs is available in case of construction and contracts. IBRD (World Bank) International Bank For Reconstruction And Development (IBRD) It was founded at the international Economic Conference held at Bretton woods in July 1944 and began its operations in June 1946.Its aim is to assist the Economic development of its member countries and to raise the standard of living of the people of the world. The purposes of the Bank set forth in the articles of agreement which are to assist in reconstruction and development of the territories of the members facilitating investment by means of guaranties or participation in loans and to promote the long range balanced growth of international grade and maintenance of equilibrium in balance of payment. The Management of the World Bank is like IMF (International Monetary Fund) all powers are vested in a board of governors. The granting of loans is in four stages: a) At the first stage discussion about borrower’s repayment capacity is done and bank sends a mission to study of country agricultural, mineral and industrial resources position. b) Second stage investigation about the specific projects starts. c) At third stage negotiation of the terms of the loan begin. d) 4th stage is the administration of the loan was and use is verified. KANAK KUMAR ‘KANAK’

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The guiding principles of the bank are that it assesses the repayment prospects of the loan lends only for specific projects which are economically and technically sound and or high exchange content of the project cost and maintains continuing relation with borrowers so as to check the projects and keep in touch with the financial and Economic Development is the borrowing country. NABARD (National Bank for Agricultural and Rural Development) It is fond in 1982. The National Bank for Agricultural and Rural development (NABARD) is the apex development bank for agriculture and rural development. It was set up on 12’th July 1982 by merging the Agriculture Credit Development and Rural planning and credit cell of RBI(Reserve Bank of India )and the entire undertaking of Agriculture Refinance and Development Corporation. NABARD has been entrusted with three types of function, namely: (1)Credit function:--It provides through the banking system all kinds of productive and Investment credit to agriculture small scale Industries cottage and village Industries, handicrafts and other allied Economic activities. It provides different types of Refinance i.e. short term, medium term and long term to eligible institution namely (a) State Co-operative Bank (b) Regional Rural Bank (c) State Land Development Bank (excluding short term) (d) Commercial Bank; only long term and other financial institution approval by the Reserve Bank. NABARD has prescribed lower rates of Interest on the Refinance provided by it and the rates payable by the ultimate borrowers. (2) Development function: NABARD coordinates the operation of rural credit agencies develops expertise to deal with Agricultural and Rural Problems assists Government. Reserve Bank and other Institution in Rural Development efforts acts agent to Government and Reserve Bank in relevant areas. It provides facilities for training and research assists. The state Government enables them to contribute to the share capital of eligible Institution. (3)Regulatory Function: The Banking Regulation Act 1949 empowers the NABARD to under take inspection of Regional Rural Banks and Cooperative Bank (other than primary co-operative Banks) if any such Bank seeks permission of the Reserve Bank for opening branch etc. It will have to obtain the recommendation of NABARD Resource: The paid-up capital of NABARD is Rs. 1000 crores at present contributed equally by the Government of India and the Reserve Bank besides the National Rural credit fund, the NABARD is authorized to raise resources by issue bonds and debentures guaranteed by the central Government and also to borrow from the RBI, Central Government and any other organization approved by the central Government. It can also raise funds externally through the Government of India. Organization: NABARD is managed by Board of director comprising of the chairman, Managing Directors, experts in Rural Economics, experts from co-operative Banks, three Directors of the Reserve Bank, three directors from Govt. of India and the representative the state Government. BUSINESS MANAGEMENT DUTY:--“Expected action is duty.” Obligation: - “Knowledge of expected action is obligation.” Profession:--“Profession is a kind of vocation. It carries with specialized knowledge and skill the person has acquired.” KANAK KUMAR ‘KANAK’

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Professional ethics are: 1) Personal morality. 2) Positive and creative thinking. 3) Social and moral obligation. 4) Commitment to profession 5) Maintenance of professional standards. 6) Observance and professional studies code & conduct. Entrepreneurship:  “Producing new thing of old one in new form is entrepreneurship.” Utility: -- Consumption is the destruction of utility. Factors of production: -i. Land ii. Labour iii. Capital iv. Enterprise v. Organization #All professions are occupation but all occupation are not professions. MANAGEMENT Management is according to: 1) F.W.Taylor (Fredrick Winslow Taylor): - “management is knowing exactly what you want men to do and then seeing that they do it is cheapest and best way” 2) Peter F. Drucker: -“Management is a multipurpose organ that manages a business, manages managers and manages workers and work.” 3) Henry Feyol: -“To manage is to forecast, to plan, to organize, to command, to coordinate and to control.” **Function of Management # (1) Planning, # (2) Organizing, # (3) Staffing, # (4) Directing/leading, (5) Supervising, (6) Co-ordination, # (7) Controlling, (8) Reporting, (9)Budgeting and Communication. NOTE Universal expected function is mainly of five types which are indicated by hash (#) sign. Q. WHAT DO YOU MEAN BY MANAGEMENT AND WHAT IS THE FUNCTION OF MANAGEMENT? ANS.  Management has been defined in various ways by different management experts. As a result, there is not a single definition on the term but many. Following are the few of the important definition of management:In the opinion of F.W.Taylor (Father of scientific management); “Management is knowing exactly what you want main to do and then seeing that they do it in the cheapest and best way ”. In the opinion of Peter F.Drucker, defined management as saying; “Management is a multipurpose organ that manages a business, manages managers, and manages workers & work”. KANAK KUMAR ‘KANAK’

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According to Henory Fayol, Who is consider as the father of principles of management; “To manage is to forecast, to plan, to organize, to command, to coordinate and to control ”. Having gone through the above definitions of management, we come to the conclusion that management is getting things done through others in the best possible way or we can say that it is a process of various functions like planning, organizing, staffing, leading and controlling the business organization, in such a way as to achieve the objectives of the organization. FUNCTION OF MANAGENENTS: Many management experts have discussed the functions of management in their own ways. The chief reason for this is their experience in an organization. However, all the functions listed by different management experts are broadly classified into five main functions by Harold Koontz and O’Donnel. They are as follows:-i. Planning: In simple words, planning means thinking before doing. It involves selecting mission and objectives and the actions to achieve them. It is today’s projection for tomorrow’s activity. It involves decision making as to what is to be done; how it is to be done; when it is to be done; by whom it is to be done and so on. Thus planning includes determination of objectives, setting rules and procedures, determining projects, policies and strategies etc. It is very much involved in organizing, leading, motivating and controlling. The importance of planning lies in the fact that it ensures smooth and effective completion of activity, whatever it may be .The efficiency of planning is measured by the amount it contributes to purpose and objectives as set by organization. ii. Organizing: The purpose of organizing is to aid in making objectives meaningful and to contribute to organizational efficiency. To includes bringing together man, money, machinery and material and other things to execute plans. When these resources are assemble then the enterprise comes into life Organizing involves deciding activities , grouping of these activities in form of positions, grouping of various positions in to departments, assigning such positions to the managers and delegating authority to each manager to accomplish the work in a planned manner. iii. Staffing: The purpose of staffing is to ensure that the organizational positions are filled by qualified and able man-power. Staffing function includes requirement to man-power, source of man-power, their selection, training and development. Remuneration and periodic appraises of man-power working in the organizational enterprise. It is clear that staffing must be closely linked with organization. iv. Leading: The organization of leading on direction is defined as the process of influencing people so that they will contribute to organization and its goals. The functions like planning, organizing and staffing are merely preparation for doing the work, the leading function actually starts the work leading involves telling the employees, what and how they have to do. Once, the employees are oriented to their jobs. They need continuous guiding, communicating, motivating and normal boosting. v. Controlling: Controlling means to see, where the activities have been or being performed in conformity with the plans or not. Thus, controlling is comparison of actual results with the targets and objectives identification of variations between the two. In short, controlling facilitates the accomplishment of plans. Now, it becomes clear that the management process involves a group of functions on a continuous basis. It can’t function separately. In fact, all these functions are interrelated in such a manner that every next function depends upon the completion of the earlier work. * Role: What is expected action of duty about a person is his/her role. KANAK KUMAR ‘KANAK’

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Q. Discuss the role of manager? Ans Types of role of manager according to Mintz-berg:1) Inter personal role : a) Figure head b) Leader c) Liaison 2) Informational role: a) Monitoring Role b) Disseminator Role c) Spokes Man 3) Decisional Role: a) Entrepreneur b) Resource allocater c) Negotiator d) Trouble handler/disturbance handler. According to Mintz-berg; role refers to the expected behaviour of the occupant of the position not all their behaviors. He has pointed out that there are three categories of roles that a manager performs in an organization. These are given above. Details are as follows: 1) Interpersonal Role: Interpersonal role of a manager is concerned with his interacting with other persons both the organizational members and outsiders. There are three types of interpersonal role. They are: a) Figure head, b) Leader and c) Liaison. In figure head role, the manager performs activities which are of ceremonial and symbolic nature; these include greeting the visitors, attending social functions handing-out merit certificates and other awards to outstanding employees. Role of manager as a leader involves leading his sub-ordinates and motivating them. In Liaison role, the manager serves as a connecting link between his organization and outsiders or between his unit and other units or between subordinates and higher. 2) Informational Role: Information role of a manager includes communication giving and receiving information both within and outside the organization. There are three types of informational role of a manager. They are: a) Monitoring Role, b) Disseminator Role and c) Spokes-Man. In his monitoring role, the manager constantly collects information about those which affect his activities. In his disseminator role, the manager distributes information to his subordinates, who may, otherwise not in a position to collect it. As a spokes-man, the manager represents his organization or unit while interacting with outsiders. These may be customers, financers, Government, supplier or other agencies of the society. 3) Decisional Role: Decisional role of a manager includes choosing the most appropriate alternative out of the available ones. In his decisional role, the manager performs four roles: a) Entrepreneur, b) Resource allocater, c) negotiator and d) Trouble handler/ disturbance handler. As an entrepreneur, the manager assumes certain risk as disturb-handler. The manager is required to contain those forces and events, which tend to disturb the organizational equilibrium and normal functioning. These forces may be shortage of raw-material, KANAK KUMAR ‘KANAK’

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employee’s complaints, grievance and strike by the employees etc. As resource allocater, the manager allocates resources such as human, financial equipments etc to various units according to their requirements. As Negotiator, the manager negotiates with various groups in the organization and outside the organization such as sub-ordinates, shareholders, outside agencies etc. * Doing something new or doing old one in a new way or doing a job bearing risk is Entrepreneurship. Leadership According to Lapiere and Farmsworth, “Leadership is the behaviour that affects the behaviour of other people more than their behaviour affects that of the leader”. According to Koontz and O’Donnel;“ Leadership may be defined as the ability to exert interpersonal influence by means of communication towards achievement of goal”. Types of Leadership: 1) Autocratic leadership; 2) Democratic leadership and 3) Laissez-faire Leadership. Functions of Leadership: 1) The leader as guide; 2) The leader as planner; 3) The leader as disciplinarian; 4) The leader as coordinator; 5) The leader as morale booster; 6) The leader as supervisor; 7) The leader acts as external group representating; 8) The leader as surrogate of individual responsibility. Qualities / Characteristics /Traits of A Successful Leader: A) Human relation awareness; B) Intelligence; C) Empathy (i.e. seen the situation of problem from other point of view); D) Managerial skill; E) Emotional stability; F) Objectivity; G) Firmness; H) Alertness; I) Communicative skill; J) Unity of mutual interest and 1) [ *According to Hollingsworth; IQ- level difference betn leader and workers may not be exceed than 30. *According to William James; “Under the positive motivation, 80 to 90% capacity of work is done by a worker in an organization”. Career Needs: I. Top management II. Middle management III. Fore line management Each management has: i. Conceptual skill ii. Human relation skill and iii. Technical skill KANAK KUMAR ‘KANAK’

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Q. What do you mean by career needs? Discuss the career needs of a technician /supervisor/foreman. ANS.  In order to perform, the duties of a technician effectively, he must have certain skills. These skills are known as the career needs of technician. Skills refer to expertness mental ability to understand, to guide, to plan, to take decision etc while working .So; in short, we can say that the ability and skill which a person must have for doing a certain type of work of job is known as career needs of that field. Career needs of a technician / supervisor: A technician is successful when he is able to make a smooth functioning of people working under him, he is expected to guide, to plan, to motivate the workers, so that they may be able to use machines and materials in the best possible way to achieve the organizational goals. For this, he must use the various skills in appropriate degrees. We can classify the skills needed for a technician into the three following categories: They are :--( 1) Technical skill (2) Human relation skill and (3) Conceptual skill Though, these skills are interrelated, but the proportion or relative significance of these skills varies with the three levels of management. Let the significance of these skills, we discuss one by one: 1. Technical skill: Technical skills are concerned with what is to be done. These skills refer to specialized knowledge in methods of handling, techniques of specific job and processing works etc. These skills are most important at lower level of management and processing works etc. These skills are most important at lower levels of management and much less important at upper levels. A production supervisor in a manufacturing organization must know the processes used during production of a certain item. In most cases, technical skills are important at this level, because technicians are expected to train their workers in work related machines, tools and equipments. 2. Human relation skills  These are based on humanitarian approach. These skills are needed to communicate effectively. The way for effectively communication is to be sensitive towards receiver’s needs, feeling and perceptions. The knowledge of how workers behave and how they react in various situations is quite meaningful for a supervisor. By his human relations skills, a technicians gain the confidence, co-operation and loyalty of his workers. 3. Conceptual skills  These are concerned with, why a work is to be done. These skills are the ability to see the organization as a whole to recognize interrelationship among different functions of the organization. Conceptual skills are used for abstract thinking and for the concept development involved in panning and strategy formulation. Conceptual skills involved the ability to understand how the parts of an organization depend on each other. These skills are much less important at lower level of management and most important at upper levels. In short, we can say that the persons at various levels of management perform the functions of management in varying degree. The level of skills require at different managerial levels are different. Technical skills are essential for lower level of management whereas, conceptual skills are important for top management. Human relations skills are important at all levels of management. Q. What do you mean by leadership? Discuss /features/qualities / traits of a successful leader. KANAK KUMAR ‘KANAK’

the

characteristics

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ANS. → Human beings are the most precious part of an organization. Effective utilization of the capacity of human resources depends on management. Management gets the result of human resources through its leader. Leadership is the process of influencing the behavior of others to work willingly and enthusiastically for achieving pre-determined goals. Lapiere and Farmsworth have defined leadership as saying, “Leadership is the behavior that effect behavior of other people more than their behavior affects that of the leader”. According to Koontz and O’Donnell; “leadership may be defined as the ability to exert interpersonal influence by means of communication towards achievement of goal”. Having gone through the above definitions, we can say that, leadership is the process of influencing others to act in a way that will accomplish the objectives of the organization. CHARACTERISTICS: A leader should have some leadership qualities in order to provide effective leadership. The important qualities of a successful leader are as follows:(1) Human relation: A successful leader should have adequate knowledge of human relations. Since an important part of leader’s job is to develop employees and get their voluntary co-operation for achieving goal, he should have intimate knowledge of employees and their relationship to each other. The knowledge of how human beings behave and how to react to various situations is quite meaningful for a leader. (2) Intelligence For leadership, higher level of intelligence is require. Intelligence is generally expressed in term of mental ability. In psychological term, it is called I.Q. A successful leader needs to have high level of intelligence in comparison to his subordinates. (3) Objectivity: Objectivity implies that what a leader does should be based on relevant facts and information. He must asses the situation without any bias or prejudice. The leader must base his relationship on objectivity. He is objective and doesn’t permit himself to gate emotionally involved to the extend that he finds it difficult to make an objective diagnosis and increment the action require. (4) Emotional Stability: A leader should have high level of emotional stability. He should be free from bias. He is well adjusted and has no anti-social attitude. He is self confident and believes that he can meet most situations successfully. (5) Empathy in interaction: Empathy relates observing the things or situations from other points of view. The ability to look at things objectively and understanding them from others point of view, is an important aspect of a successful leadership. Empathy requires respect for others, their rights, beliefs, values and feelings. 6) Technical skills: A successful leader must have technical skills. Technical skills are the ability to plan, the ability to process, organize, delegate, analyze, seek advice, take decision, control and win co-operation. The technical competence of a leader wins the support of followers. (7) Alertness: A leader should have high level of alertness. He should have proper and current knowledge about, what is happening in an around his administrative arena. It is said, “Alertness gone; danger signal ON”. (8) Communicative Skills: A successful leader knows, “how to communicative effectively”. Communication has grade force in getting the acceptance from the receivers. A leader uses communication skillfully for persuasion and stimulation purposes. Normally, a successful leader is extrovert.

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(9) Firmness: A successful leader takes each and every related thing in his consideration before taking any decision. So, he doesn’t fluctuate from his decision and remains firm on his stand. (10) Unity in mutual interest: In his studies, George Robert Terry found that there should be unity in mutual interest between leader and the subordinates. Their interest should not be contradictory to each other; otherwise it will create misunderstanding among them, dispute may arise and peace may be disturbed. (11) Motivating Skill: A leader must have the requisite quality to motivate his sub-ordinates. Though, there are many external forces which motivate a person for higher performance, but there are inner drives also which force people to work. The leader can play active role in stimulating these inner drives for work. MOTIVATION Q.  Define motivation? Discuss the important type of motivation. Ans  Motivation is one of the most important factors affecting human behaviour and performances. It is an effective instrument in the hands of a leader for inspiring the work force. By motivating the work-force, management creates will to work, which is necessary for achievement of organizational goals. Michel J. Jucius has defined motivation as saying “Motivation is the act of stimulating some one or oneself to get a desired course of action or to push the right button to get a desired reaction”. Scott has also defined motivation. In his own words; motivation means, “A process of stimulating people to action to accomplish desired goals”. From the above definition we come to the conclusion that, motivation is something either internal or external that stimulates a person into action and continues him in the course of action enthusiastically. Types of motivation:-The following are the important types of motivation: (1)Internal motivation: It may be defined as internal earge or drive or force which stimulates a person for doing any work. It is an inner state and varies form man to man. It is based on the nature of the man. (2) External Motivation: External motivations are various types of facilities or punishments which are available in an organization. Types of external motivation:(a) Positive external motivation: Positive motivations are based on various facilities, which may be physical or psychological. For example, pay, promotion, appropriate reward, bonus, DA, Conducive and harmonious work-place etc. (b) Negative Motivation: It are those motivations which are based on fear or force. e.g. pay-cut, demotion, censure, warning, lay-off etc are negative motivations. TYPES OF POSITIVE MOTIVATION: (1) Financial motivation: Financial motivations are those motivations, which are directly or indirectly associated with monetary rewards. The most important financial motivations are pay, D.A., bonus, free medical facility, insurance, profit sharing, retirement-benefits etc. (2) Non- financial Motivation: It is those, which are not based on monetary rewards. Prize, participation in management, job rotation, delegation of authority recognition etc are the examples of non-financial motivations. IMPORTANCE OF MOTIVATION IN AN ORGANIZATION:The importance of motivation is an organization may be summed up as follows:(1) Reduces the gap between to work and willingness to work: KANAK KUMAR ‘KANAK’

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A man may be physically, mentally and technically fit to work or may have capacity to work, but he may not be willing to work. Motivation minimizes the gap between capacity to work and willingness to work. In a study, William James found that motivated employees worked at close to 80 to 90% of their ability to work. The high performance is a must for an organization performance is a must for an organization and this performance is a must for an organization and this performance is must for an organization and this performance comes by motivation. (2) Reduces labour turn-over and absenteeism: Motivated employees stay in the organization and their absenteeism remains quite low. High turn-over and absenteeism create many problems in the organization. Recruiting, training and developing large number of new personnel into a working team take years. In a competitive economy, this affects the reputation of the organization unfavorably. (3)Acceptance of organization changes: The world economy is moving very fast. Everyday some new products are coming in the market. Due to changes in the society, their liking and changes in technology, organization has to incorporate those changes to cope-up with the requirement of the time. When these changes are introduced in the organization, there is a tendency to resist those changes by the employees. However, if they are properly motivated, they accept, introduce and implement those changes keeping the organization on right track of progress. (4) Sense of belonging: A proper motivation scheme promotes closer rapport between management and workers. The workers begin to feel that the organization belongs to them and consider its interest as their own. (5) Basis of co-operation: Efficiency and o/p are increased through co-operation. Co-operation couldn’t be obtained without motivation. Motivation prepares the ground for mutual understanding and co-operation. (6) Other Reasons: Productivity, etc. Q.  What is Professional Ethics? Discuss the main aims an objectives of Professional Ethics. Or, What do you mean by Profession? Discuss the objective of Profession. Ans -> Profession is a kind of vocation. Which carries with it a specialized knowledge and a skill the individual has a acquired. Professionals render their specialized service to their clients in return for a pre-determine fee. Services rendered by doctors, lawyers, charted accountant etc. ask the examples of Professionals. Every profession has its own professional ethics. Professional ethics is nothing but certain moral and ethical rules of that is nothing but certain moral and ethical rules of that profession. The need for ethical cords arises because of the fact that occupations whose practitioners have mastery over an area of knowledge have a degree of power by virtue of their expertise. This has resulted in most of the occupations issuing a code of ethics of professional practice. So that clients may know the standard and commitment of that profession. The professional ethics is formulated by the apex body of that profession as for example Indian Medical Council for Medical Practicener, BCI (Bar Council of India) for Legal Practicener etc. It is specialized moral laws or ethical rules which the members of that profession is bound to obey. The following are the objectives of Professional Ethics: 1. Personal Morality – The first and foremost object of professional ethics is to develop personal morality among its members. Truth, Character, Duty, Responsibility, Integrity, Compassion, Manner, Excellence, Efficiency, Love, Sympathy etc. are the examples of personal morality. 2. Positive and Creative Thinking – Professional Ethics develop Positive and Creative thinking among its members. Individual thinking may either be creative or KANAK KUMAR ‘KANAK’

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3.

4. 5. 6.

destructive. Positive and Creative thinking is beneficial for individual and society. So the thinking of a Professional should be Positive and Creative. Social and Moral Obligation – Man is a Social animal. Man cannot live without society. Society serves us from cradle to grave. We all are owe to the society. Professional Ethics direct its members to be Honest, Loyal, Sympathetic and Cooperative towards society. They should keep social interest in heir mind while charging fee. Commitment to Profession – Profession provides means of livelihood to its members. Ethical code provide the behavioral pattern for professional. These concepts suggest that the professional should be committed to their profession. Maintenance of Professional Standards – For every Profession some ethical standard are provided and every individual of the profession is expected to maintain conformity with those standards. Observance of Professional Code of Conduct – It is expected from the members of the profession to observe the professional code of conduct. Violation of profession code of conduct is punishable.

• Some Important Questions and their solutions: Q No. 1. What do you mean by Departmentation and what are the bases of Departmentation? Ans – Bases: 1. On the Basis of work function  Personal  Finance  Marketing o Sales o Purchasing o Advertisement  Product 2. On the Basis of Process  Spining Department  Dying Department  Weaving Department  Finishing Department 3. On the Basis of Timings (Shift wise) 4. On the basis of Product Q No. 2. What is the Strike and its causes? Ans – Causes: 1. Due to Unsatisfaction/Cause related to Finance 2. Cause related to Management 3. Political reasons

Q. What do you mean by Supervisory Management? Discuss the role of a Supervisor/Technician/Foreman in an Organization. KANAK KUMAR ‘KANAK’

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Ans: Supervisory management is above operatives or workers and below the middle management. He is concerned with explaining the views of management to workers and views of workers to management. This is why; the job of a technician becomes more complex than other level of management. Management treats him the man of workers while workers treat him the man of management. A technician or a foreman plays three types of roles in an organization. They are: 1. Functional role 2. Human relation role and 3. Management role. 1. Functional Role: -In functional role a technician performs the following works:a. Trainer: -- Since a technician is responsible for the effective performance of operatives/workers, put under him he must have through knowledge of the technical aspect of the job being performed by the workers. Though, the technician doesn’t perform the job himself. However, he is expected to determine appropriate method of work. Since, many workers may be raw or un-skill, a supervisor has to perform their job effective. b. Analyzer: -- As an analyzer, a technician analyzes different aspects of the job to achieve efficiency in work operations through division of work or division of labour though he may get assistance from expert such as industrial engineers in job analyst; but he should be well convergent with the operations and division of work. c. Planner: --In performing the role of a planner a technician is expected to formulate operational plans for workers i.e.; what is to be done; how is to be done; when is to be done; etc. He establishes production schedules and procedures to get the work-done in time. d. Coordinator: -- As a planner, a technician decides what, how, when the work is to be done. As a coordinator, he decides who will do what? He brings workers, machines, materials and jobs together and coordinates them for smooth and orderly functioning. His role as coordinator may be compare as a clarinet player of an orchestra-party who brings into playing each instrument act right moment to produce a melodious music. 2. Human Relation Role: A technician is required to perform human relations role more effectively because, he is directly connected with the workers and work. His human relation roles are as follows:a. Human Relation Expert: - A technician is treated as a human relation expert, because he serves as a negotiator, buffer man, communicator and that when the supervisor looks at the problem of workers from their point of view, there is a less chance of misunderstanding. b. Consular: - A technician is required to provide counseling of his workers compromiser. So, he has a developed a good relations with management and workers. As, he is generally not treated as a member of any one of two groups. For example, Management and workers. c. Empathy interaction: - Empathy means observing things or situations from others point of view. It requires respect for others. In short, we can say. At work place many problem arise. These problems may be related to the work or work environment or even personal matters of workers. A good technician observes the problem patiently and advice workers as to how they can overcome these problems. 3. Management role: - In management role, a technician performs the following roles: a. Leader: - As a leader, a technicians required to guide his workers represent the workers and supervise their work. Every management wants to get the work done in time. So, a good technician not expected always relay on KANAK KUMAR ‘KANAK’

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formal authority to get the work done. But, influences the workers by his personal skill for better performance. Though, a technician has a choice either to adopt task-oriented or people-oriented style, but a good technician always prepares an appropriate mixture of the two according to the need or requirement. b. Linking-Pin: - A technician functions as a linking-pin between management and workers, as he is known as a person in the middle. In such a situation a technician has to satisfy the needs of management as well as the workers. In addition, he has to serve as a connecting link between the organization and outsiders or between his unit and other unit of the organization. c. Motivator: - Acting as motivator, is one of the most important role of a technician. He has to motivate those workers also, who don’t want to work with zeal and enthusiasm. They may have even negative feeling about the organization in such situation; the role of motivating those workers is a challenging work. In order to perform this role, a technician must understand the worker fully and create a work environment which provides satisfaction to them. d. Controller: -A technician works as a controller which involves evaluation of work performance of his sub-ordinates/workers. If things go wrong, he takes suitable remedial action including reward and punishment. Q. What do you mean by recruitment and selection? Differentiate between recruitment and selection. Ans: Recruitment is the process concerned with the identification of sources where the personnel can be employed and motivate them to offer themselves for employment. W. B. Werther and Keith Davis have defined recruitment as follows “Recruitment is the process of finding and attracting capable applicant for employment. The process begins when new recruits are sought and ends when there applications are submitted. Thus, Recruitment process is concerned with identification of possible sources of human supply and tapping them. Selection: Selection is defined as choosing the fit and rejecting the unfit. In Indian context, there are more candidates, who are rejected than those who are selected in most of the selection process. Thomas H. Stome has defined selection as “Selection is the process of differentiating between applicants and order to identify those with a greater likelihood of success in a job.” Thus, Selection is the process of finding suitable person from many applicants for placement. Total process of acquiring and placing selection falls in between recruitment and placement. • Difference between Selection and Recruitment :On the following basis, recruitment and selection may be differentiated: i. Objective: - The ultimate objective of both recruitment and selection are to acquire suitable candidates, but there immediate objective differ. The basic objective of recruitment is to attract maximum number of so that, more options are available. The basic objective of selection is to choose the best out of the available candidates. ii. Process: - Recruitment differs from selection in terms of process. Recruitment adopts the process of creating, application pool as large as possible where as, selection adopts the process through which more and more candidates are rejected and fewer candidates are selected. Sometimes even not a candidate is selected. In selection, tests as for example, intelligent test, aptitude test, achievement test, personality test etc are conducted. In addition to these oral interviews, checking of references, certificates, physical examination are also arranged. iii. Technique: - Recruitment techniques are not very intensive, as against this in selection, specialized techniques are required. KANAK KUMAR ‘KANAK’

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iv. Outcome: - Since recruitment and selection are interrelated steps in the process of man power acquisition, they differ in terms of their outcome. The outcome of recruitment is application pool which becomes input for selection process. The outcome of selection process is in the form of finalizing candidates who will be offered job. Program Evolution and review Technique (PERT) PERT was first developed as a Management Aid for completing Polaris Ballistic Missile Project in USA in October 1958. It worked well in expediting the completion of the project from 7 years to 5 years. Since then, PERT has become very popular technique used for project planning and control. In nutshell, it schedules the sequence of activities to be completed in order to accomplish the project within a short period of time. It helps reduce both the time and cost of the project. Advantage: 1. It determines the expected time required for completing each activity. 2. It helps complete the project within a given period of time. 3. It helps management handle uncertainties involved in the project and thus, reduces the risk element in the project. 4. It enables management to make optimum allocation of limited resources. 5. It presses for the right action, at the right point and at the right time in the organization. Entrepreneur Entrepreneur is one of the important segments of economic growth. Basically, entrepreneur is a person responsible for setting of a business or enterprises. Entrepreneur is one who has the initiative skill for innovation and how looks for high achievements. He works for the people. He opens up many employment- opportunity and leads to the growth of other sectors. He is a person how brings in over all change through innovation for the maximum socials goods. In this process he accelerates person economic as well as human development. He is a man with outstanding leadership qualities. Entrepreneur is considered as an individual who bears the risk of operating a business in the face of uncertainty about the future condition. According to professor John Tin Bergen “the best entrepreneur in any developing country is not necessary the man who use capital but rather the man who long how to organize the employment and training of rest employee”. An entrepreneur is one who innovates raise, money, assembles inputs, chooses managers and set the organization going with his ability to identify them. Innovation occurs through: I. The introduction of a new quality product. II. A new product. III. A discovery of a fresh demand and a fresh source of supply. IV. By change in the organization and management. A most appropriate definition of entrepreneur is that he is a man who detects and evaluates a new situation in his environment and direct the making of such adjustment in the economic system as him deems necessary. An entrepreneur performs one or more of the following:i. Perceives opportunity for profitable investment. ii. Explores the prospects of starting manufacturing enterprises. iii. Arrange initial capital. iv. Provides personal guaranties to the financial institution promised to meet the short falls in the capital. v. Supply technical knows how. Entrepreneur is an organizer speculator of business enterprises. Entrepreneur lives economic resources out of an area of lower to an area of higher productivity and better yield. Entrepreneur is often associated with a person who starts his own new small business. *Entrepreneurial Function:i. Assumption of risk KANAK KUMAR ‘KANAK’

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ii. iii. iv. v. vi. vii. viii. ix.

Business decision Managerial function Deciding the project Raising finance Planning production Earning profits To study the market and to take advantage from opportunities and threats. To arrange finance, raw materials and machinery. Entrepreneurship Entrepreneurship is a process of action an entrepreneurship undertakes to establish his enterprise. Entrepreneurship is a resultant mix of many quality and traits of an entrepreneurship. Entrepreneurship can be defined as a process undertaken by entrepreneurship to argument his business interests. It is an exercise invoking innovation and creativity that will go towards establishing his/her entrepreneurship. Entrepreneur

Entrepreneurship

Enterprise

Person Process of action Object Concept of Entrepreneurship: Entrepreneurship is the inclination of mind to take calculated risk with confidence to achieve a predetermined business or industrial objectives. EN TR EP RE NE UR SHIP

Accepting challenges Organization Skillful management Risk taking Decision making Innovation Making the enterprise a success

* Feature of an Entrepreneurship: 1. Innovation 2. A function of high achievement 3. Organization building 4. Group level activities 5. Managerial skill and leadership 6. Gap filling 7. Entrepreneurship – an emerging class. * Successful Entrepreneurship: Following aspects are necessary for the successful entrepreneurship: 1. Regular inflow of information related to buyers, consumers, distributors, dealers, retailers, transporters etc. about raw material, quality aspects, government organization, employees and competitors. 2. Satisfying the needs of customers 3. Generation of adequate cash flow 4. Regular objective assessment of the enterprise 5. Improving productivity 6. Maintenance of quality 7. Use of technology of the time 8. Be innovative 9. Keep employees motivated 10. Scrap or waste material be utilized property 11. Time management. KANAK KUMAR ‘KANAK’

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*Forms of business organization:1. sole proprietorship 2. partnership a) Private 3. Joint stock company b) Public 4. Cooperative Sector 5. Government enterprise/organization. • Indian partnership act made in 1932. • Sole proprietorship is the oldest form of business. • Maximum numbers of partnership in banking business is 10. Indian partnership act 1932:Section-4:“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all”. Minimum partner 2 Other business. Maximum partner20 Indian companies act 1956:i. Private  Can’t sales its shares in market. ii. Public  Can sale its share in market. iii. Public enterprise company (Government Corporation). iv. Charitable company. v. Foreign Company. Company: - According to Prof. P. Asthana; “A company is an artificial person, invisible and intangible, created by law, endowed with perceptual succession with a common seal, having distinct entity separate from the members composing it usually with a limited liability”. Private Company: In private company, minimum no. of partners should be 2 and maximum no. of partners should be 50.  In private company writing of Private Ltd. with name is necessary condition (i.e. Pvt. Ltd should be written as soul).  Transfer of shares of private company do not allowed.  Selling of shares for business purpose is not allowed.  If any company earns 3 crores or more in 3 years then it will become a public ltd. company. Public Ltd. Company: Shares are transferable.  Shares can be sale.  Only “Ltd.” word may or may not written as sole. Village and Cottage Industries:It is a small industrial activity of manufacturing, processing, preservation and or servicing in an areas with population not exceeding 50,000 involving utilization of locally available natural resources and or human skills, where individual credit requirements do not exceed Rs. 50000. According to Fiseal Commission; “Cottage industries are those which are run by the members of the family either for full time or for past time”. According to Bombay Economic And Industrial Investigation Committee, these are those industries which do not use modern power and engage a maximum of 9 persons. Tiny Industries:Tiny sectors are small industrial units having investment in plant and machinery up to 25 lacks irrespective of their location is situated in towns with population less than 50,000. Such industries are also called “Mini Industries”. KANAK KUMAR ‘KANAK’

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1. 2. 3. 4. 5. 6. 7. 8.

Small Scale Industries:Small scale industry is an industry, in which investment in fixed assets in plant and machinery does not exceed Rs. 3 crores and Rs. 3 crores in case of an “ancillary unit” also irrespective of the no. of persons employed. However, it is necessary to note at this stage the difference between a cottage or a village industry and a small scale industry. The cottage and village industries are based on traditional skills and practically require no modern machinery. The small scale industry as compared to them is quite big and it works with modern machines and electrically. However, there is no hard and fast rule for this and it is a matter of convenience only. Advantage Of Small Scale Industry:It provides better and quick employment. It is labour intensive and capital saving. With small investment production can be easily and quickly started. Highly sophisticated machines and modern technology is not needed. It attracts small saving and diverts them into productive channels. It provides economic development by rapid industrialization. It provides check on monopoly. It reduces imbalance of income and property. Ancillary Units: Ancillary industries are those small scale industries, which are engaged in: i. The manufacture of parts, components, sub-assemblies and tooling etc, for supply against know or anticipated demands of one or more large industries. Or ii. The rendering of services and supplying or rendering or proposing to supply or rendering 50% of their production or the total services as the case may be. In the definition of small scale industry the value of plant and machinery includes the investment made in productive plant and machinery. In calculating the value of plant and machinery the actual payment made by the owner irrespective of whether plant and machinery is old or new will be taken into account. The cost of tools, jigs, dies moulds and spare parts for maintenance the cost of installation of plant and machinery will not be taken into account while calculating the value of plant and machinery. Similarly, cost of generating sets, extra transformers, bank and service charges etc are not taken into account in calculating the cost of plant and machinery. Medium Scale Industries:Those industries in which investment in fixed assets in plant and machinery does not exceed Rs. 5 crores and not less than the limit of small scale units. Large Scale Industries:Those industries in which investment in fixed assets in plant and machinery exceeds Rs. 5 crores. Joint Stock Company Limited financial resources heavy burden of risk involved in both of the previous forms of organization has led to the formation of joint stock companies. These have limited liability. In this system, capital is contributed by a large no. of persons. It is voluntary association of individual or profit, having a capital divided into transferable shares of different values. The capital is raised by selling shares of different values. Persons who purchase the share are called share holders. The board of director is responsible for policy making important financial and technical decision and efficiency working of an enterprise. In this form of organization, liability of the share holders is limited to the extent of the amount of shares hold by him and he is free from the responsibility of the department and claims on the company beyond the value of shares. Because of this advantage, all section of people is encouraged to contribute for the company. These shares are transferable. There are two main types of joint stock companies:1. Private Ltd. Company:KANAK KUMAR ‘KANAK’

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This type of company can be formed by two or more persons. The maximum no. of membership is to limited to 50. In this transfer of shares is limited to members only and general public can’t be invited to subscribe the shares. Normally, the members of such a company are friends and relatives. A private limited company need not make the prospectus, accounts and other particular open to the public. The members only entitled to receive a copy of the balance sheet and auditor’s report. The government also doesn’t interface in the working of the company. In this system, persons who want to take advantage of limited liability and at the same time to keep the business as private as possible can subscribe. 2. Public Ltd. Company:It is one whose membership is open to general public as its name indicates. The minimum number required to form such a company is 7 but, there is no upper limit. Such companies can advertise to offer its share to general public through the prospectus. These public limited companies are subjected to greater control and supervision of the governments. This control is necessary to protect the interest of the share holders and the members of the public. Shares are transferable in part or full without requiring any prior approval. The affairs of the company are managed by an elected body known as ‘Board of Directors’. The no. of members in the board of directors is limited to 7. Raising Finance for Joint Stock Companies:Money is necessary to start and to keep the business running. It is also needed to meet expansion, replacement and alteration. The required capital is supplied by individuals, societies and associations. Funds can also be taken from banks, Finance Corporation etc in the form of loan. Following are the sources from where money can be taken for an enterprise: a. Issue of Shares:A portion of the money required for enterprise is collected in the form of shares. b. Issue of Debentures:When company desire to raise the required finance through loans instead of sale of shares, then debentures are issued. In this way, it is advantageous because debenture holder can’t claim for ownership and he is to be paid interest only. Debentures may be issued either for initial needs of enterprise or for development and extension. c. Loan advances from banks and other financial institutions like LIC and UTI. d. State loans from Industrial Corporation, state finance corporation or through industrial development corporation. Advantages: Following are the advantages of the Joint Stock Company over the previous two forms of business organization:i. The liability being limited, the share holder bears no risks and therefore more and more persons are encouraged to invest capital. Thus more amount of capital can be collected to run modern industries. ii. Because of large no. of investors, the risk of loss is divided. Therefore, even average persons can contribute capital without much hesitation. iii. In the Joint Stock Companies, the work is divided among different groups of persons; hence better work can be done. iv. It has great potentialities for expansion. Disadvantage: i. Lack of personal interest on the part of the salaried managers because there is no relation between effort and income for them and this lead to in efficiency and waste. ii. If requires a large no. of legal formalities to be observed. iii. It is difficult to preserve secrecy in these companies. Entrepreneurship

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Entrepreneur: - Entrepreneur is an organizer and speculator of a business enterprise. Entrepreneur lifts economic resources out of an area of lower to an area of higher productivity and greater yield. Entrepreneur is either originator of n new business ventures or a manager who tries to improve an organizational unit by initiating productive change. Entrepreneur is often associated with a person who starts his own new and small business. Entrepreneurship - Entrepreneurship is a process of action an entrepreneur undertakes to establish his enterprise. Entrepreneurship is a resultant mix of many qualities and traits of an, entrepreneur. Qualities of an Entrepreneur Successful Entrepreneurship: Following aspects are necessary for the 1. Self-confidence successful entrepreneurship: 2. Result oriented 1. Regular inflow of informational related to 3. Risk taker buyers, consumers, distributors, dealers, 4. Innovativeness, creative retailers, transporters etc., about raw 5. Knowledgeable material, quality aspects, government 6. Open minded, and flexible organizations, employees and 7. Foresightedness competitors. 8. Leadership 2. Satisfying the needs of customers. 9. Managerial competence 3. Generation of adequate cash flow. 10. Realistic approach 4. Regular objective assessment of the 11. Energetic and hardworking enterprise. 12. Resourcefulness. 5. Improving productivity. 13. Tactfulness 6. Maintenance of quality. 14. Clarity of views. 7. Use of technology of the time. 8. Be innovative. 9. Keep employees motivated 10. Scrap or waste material is utilized properly. 11. Time management. Objectives Of Entrepreneurial Successful Entrepreneurship: development: Objectives of entrepreneurial development Following aspects are necessary for the successful entrepreneurship: program are to help to: i. Regular inflow of informational related 1. Develop and strengthen their entrepreneurial to buyers, consumers, distributors, quality. dealers, retailers, transporters etc., 2. Analyze environment related to small business about raw material, quality aspects, and small industry. government organizations, employees 3. Select product and its project. and competitors. 4. Formulate projects. ii. Satisfying the needs of customers. 5. Understand the procedure for setting up of iii. Generation of adequate cash flow. small enterprise. iv. Regular objective assessment of the 6. Support needed for launching the enterprise. enterprise. 7. Acquire basic management skills. v. Improving productivity. 8. Appreciate the social responsibilities. vi. Maintenance of quality. 9. Let him set the objectives of his[ business. vii. Use of technology of the time. 10. Prepare him to accept risks. viii. Be innovative. 11. Take strategic decisions. ix. Keep employees motivated 12. Develop communicating skills. x. Scrap or waste material be utilized properly. xi. Time management. ENTREPRENEUR MOTIVATION KANAK KUMAR ‘KANAK’

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Motivation is related to the inner urge present in art individual which demands from him to do something new and something unique and to perform better than others. Motivation is a force that influences the efforts of the entrepreneur to achieve his objectives. He is motivated to achieve his excellence in job performance. He is further motivated by reward in terms of profit. Entrepreneurial development For the economic development, entrepreneurial development is necessary. Fur the purpose of entrepreneurial development, rapid growth of small scale sector is necessary. Entrepreneurial development programs are designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his role effectively. Main objective of the entrepreneurial development program is to motivate and assist prospective and potential entrepreneurs to set up small scale units of their own and thus become self-employed and contribute significantly to production and employment in the country. Entrepreneurial development program must be designed properly and should incorporate the following: Developing, achievement, motivation and sharpening entrant-uric I traits and Project planning and development, and guidance on industrial opportunities, incentives and facilities, rules and regulations.

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