Showing posts with label MCOM 1ST YEAR. Show all posts
Showing posts with label MCOM 1ST YEAR. Show all posts

Monday, 7 February 2022

Question No. 4 - MCO-01 - Organisation Theory and Behaviour - Master of Commerce (M.Com)

Solutions to Assignments 

MCO-01 - Organisation Theory and Behaviour

Master of Commerce (M.Com) - 2nd Year 

Question No. 4 Differentiate between the following: 
(a) Classical conditioning and Operant conditioning 

Classical and operant conditioning are two important concepts central to behavioral psychology. While both result in learning, the processes are quite different. To understand how each of these behavior modification techniques can be used, it is also essential to understand how classical and operant conditioning differ from one another.

Classical Conditioning
Even if you are not a psychology student, you have probably at least heard about Pavlov's dogs. In his famous experiment, Ivan Pavlov noticed dogs began to salivate in response to a tone after the sound had repeatedly been paired with presenting food. Pavlov quickly realized that this was a learned response and set out to further investigate the conditioning process.

Classical conditioning is a process that involves creating an association between a naturally existing stimulus and a previously neutral one. Sounds confusing, but let's break it down:

The classical conditioning process involves pairing a previously neutral stimulus (such as the sound of a bell) with an unconditioned stimulus (the taste of food).

This unconditioned stimulus naturally and automatically triggers salivating as a response to the food, which is known as the unconditioned response. After associating the neutral stimulus and the unconditioned stimulus, the sound of the bell alone will start to evoke salivating as a response. The sound of the bell is now known as the conditioned stimulus and salivating in response to the bell is known as the conditioned response.
Classical conditioning is much more than just a basic term used to describe a method of learning; it can also explain how many behaviors form that can impact your health. Consider how a bad habit might form. Even though you have been working out and eating healthy, nighttime overeating keeps tripping up your dieting efforts.

Thanks to classical conditioning, you might have developed the habit of heading to the kitchen for a snack every time a commercial comes on while you are watching your favorite television program.

While commercial breaks were once a neutral stimulus, repeated pairing with an unconditioned stimulus (having a delicious snack) has turned the commercials into a conditioned stimulus. Now every time you see a commercial, you crave a sweet treat.

Operant Conditioning

Operant conditioning (or instrumental conditioning) focuses on using either reinforcement or punishment to increase or decrease a behavior. Through this process, an association is formed between the behavior and the consequences of that behavior.
Imagine that a trainer is trying to teach a dog to fetch a ball. When the dog successfully chases and picks up the ball, the dog receives praise as a reward. When the animal fails to retrieve the ball, the trainer withholds the praise. Eventually, the dog forms an association between the behavior of fetching the ball and receiving the desired reward.

For example, imagine that a schoolteacher punishes a student for talking out of turn by not letting the student go outside for recess. As a result, the student forms an association between the behavior (talking out of turn) and the consequence (not being able to go outside for recess). As a result, the problematic behavior decreases.

A number of factors can influence how quickly a response is learned and the strength of the response. How often the response is reinforced, known as a schedule of reinforcement, can play an important role in how quickly the behavior is learned and how strong the response becomes. The type of reinforcer used can also have an impact on the response.

For example, while a variable-ratio schedule will result in a high and steady rate of response, a variable-interval schedule will lead to a slow and steady response rate.

In addition to being used to train people and animals to engage in new behaviors, operant conditioning can also be used to help people eliminate unwanted ones. Using a system of rewards and punishments, people can learn to overcome bad habits that might have a negative impact on their health such as smoking or overeating.

Classical vs. Operant Conditioning

One of the simplest ways to remember the differences between classical and operant conditioning is to focus on whether the behavior is involuntary or voluntary.
Classical conditioning involves associating an involuntary response and a stimulus, while operant conditioning is about associating a voluntary behavior and a consequence.
In operant conditioning, the learner is also rewarded with incentives, while classical conditioning involves no such enticements. Also, remember that classical conditioning is passive on the part of the learner, while operant conditioning requires the learner to actively participate and perform some type of action in order to be rewarded or punished.
For operant conditioning to work, the subject must first display a behavior that can then be either rewarded or punished. Classical conditioning, on the other hand, involves forming an association with some sort of already naturally occurring event.
Today, both classical and operant conditioning are utilized for a variety of purposes by teachers, parents, psychologists, animal trainers, and many others. In animal conditioning, a trainer might utilize classical conditioning by repeatedly pairing the sound of a clicker with the taste of food. Eventually, the sound of the clicker alone will begin to produce the same response that the taste of food would.
In a classroom setting, a teacher might utilize operant conditioning by offering tokens as rewards for good behavior. Students can then turn in these tokens to receive some type of reward, such as a treat or extra playtime. In each of these instances, the goal of conditioning is to produce some sort of change in behavior.

(b) Formal and Informal Work Groups 

Definition of Formal Group
A formal group is a collection of persons, who came together for achieving a specified goal. They are always created with intent to fulfil some official requirement. Formation of the group is done by the management. It possesses a systematic structure, in hierarchical form.
In general, the employees of the organisation are divided into groups, and a task is a hand over to each group. In this way, the task of the group is accomplished along with the fulfilment of organisational goals. The given are the types of formal groups:
Command groups: The groups that consist of managers and their subordinates.
Committees: The group of people who are appointed by an organisation, to resolve the matters, referred to them are known as Committee. For example Advisory Committee, Standing Committee, etc.
Task Forces: The group form to carry out a particular task is known as Task Forces.

Definition of Informal Groups
The groups that are created naturally, within the organisation, due to social and psychological forces are known as Informal groups. Under this group, the employees of the organisation, themselves enter into groups, without the approval of the management to satisfy their social needs on the job.

Nobody wants to live in isolation; people generally create a circle around themselves so that they can interact and share their feelings, opinions, experiences, information, etc. These circles are known as informal groups at the workplace. These groups are formed on the basis of common likes, dislikes, prejudices, contacts, language, interests, attitudes of the members. It includes interest group and friendship group. The communication is faster in such groups, as they follow grapevine chain.

There are no defined rules; that applies to the informal group. Moreover, the group possesses a loose structure. The bond between the members of the group is quite strong, which can be seen when one of the employees is kicked out of the job and all co-members his group goes on strike just to support him.


Key Differences Between Formal and Informal Groups
The following are the differences between formal and informal groups:

  • The groups formed by the management of the organisation for accomplishing a specific task are known as Formal Groups. The groups that are formed by the employees themselves as per their likes and prejudices is known as Informal Groups.
  • The formal groups are deliberately created by the organisation, whereas the informal groups are established voluntarily.
  • The formal groups are big in size as compared to an informal group. Moreover, there can be sub-groups in a single formal group.
  • The structure of a formal group is designed in a hierarchical manner while the informal group lacks structure or say it has no structure.
  • In a formal group, the position of a member defines its importance in the group, but in an informal group, every member is as important as any other member.
  • In a formal group, the relationship between the members is professional, they gather just to accomplish the task allotted to them. On the other hand, in an informal group, there is a personal relationship between members, they share their opinions, experiences, problems, information with each other.
  • In a formal group, the flow of communication is restricted due to the unity of command. In contrast to an informal group, the flow of communication stretches in all directions; there is no such restriction.
We generally enter into groups, without knowing that Which kind of group is it? From the above post, hope you have understood the differences between the two kinds of group. Sometimes the members of formal groups and informal groups are same. The basic distinguishing feature between the two is that formal groups are always formed with an objective, but when an informal group is created, there is no such kind of intention at all.


(c) Power and Authority 

When the question is about influencing or manipulating others, two things go that side by side in the field of management are Power and Authority. These two are used to make people respond in the manner directed. Power is referred to as the capacity of an individual to influence the will or conduct of others. As against, authority is termed as the right possessed by a person to give the command to others.
Many of us think that these two terms are one and the same thing, but there exists a fine line of difference between power and authority. While the former is exercised in a personal capacity, the latter is used in a professional capacity. So, on this topic, we are going to throw light on the basic differences between the two, have a look.

Definition of Power
By the term power, we mean the personal capacity of an individual to influence others to do or not to do an act. It is independent and informal in nature derived from charisma and status. It is an acquired ability that comes from knowledge and expertise. It is the right to control other’s actions, decisions and performances.

Power is not hierarchical, i.e. it can flow in any direction like it can flow from superior to subordinate (downward) or junior to senior (upward), or between the persons working at the same level, but different departments of the same organization (horizontal), or between the persons working at different levels and departments of the same organization (diagonal). In this way, it is not confined to any boundaries. Moreover, the element of politics is usually attached to it.

Definition of Authority
Authority is legal and formal right to a person, who can take decisions, give orders and commands to others to perform a particular task. It is conferred to high officials, to accomplish organisation’s objectives. It is hierarchical in nature, it flows downward, i.e. delegated from superior to the subordinate.

In general, authority is exercised to get things done through others. It is attached to the position, i.e. any person who gets the position enjoys the authority attached to it, the higher the position, the higher would be his authority. As the authority lies in the designation, in the absence of authority, the position offered to the person would be of no use. Moreover, it is restricted to the organisation only.

Key Differences Between Power and Authority
The difference between power and authority can be drawn clearly on the following grounds:

  • Power is defined as the ability or potential of an individual to influence others and control their actions. Authority is the legal and formal right to give orders and commands, and take decisions.
  • Power is a personal trait, i.e. an acquired ability, whereas authority is a formal right, that vest in the hands of high officials or management personnel.
  • The major source of power is knowledge and expertise. On the other hand, position and office determine the authority of a person.
  • Power flows in any direction, i.e. it can be upward, downward, crosswise or diagonal, lateral. As opposed to authority, that flows only in one direction, i.e. downward (from superior to subordinate).
  • The power lies in person, in essence, a person acquires it, but authority lies in the designation, i.e. whoever get the designation, get the authority attached to it.
  • Authority is legitimate whereas the power is not.

After reviewing the above points, it is quite clear that power and authority are two different things, where power has nothing to do with level or management or position. On the other hand, authority completely depends on these two, i.e. the position level determines the level of authority a person has. In addition to this, the authority relationships, i.e. the relationship between superior and subordinate are depicted on the organisational chart. Conversely, the power relationship is not shown in the organisation chart.



(d) Organisation Culture and Organisation Climate

Organizational Culture vs Climate
 
Difference between organizational culture and organizational climate is that the culture is about the norms, values and behaviour adopted by the employees within the organization while the climate is about the atmosphere of the organization that is created based on the culture. Organizational culture and climate differ from one organization to another. This article presents you with a brief description of the two concepts and an analysis of the difference between organizational culture and climate.

What is Organizational Culture?
Organizational culture is a set of values, beliefs, behaviors, customs and attitudes that govern how people behave within organizations. The culture of an organization provides boundaries and guidelines that help the employees of the organization to know the correct way of performing their jobs.

The culture of an organization is ingrained in the behavior of the employees within an organization and in a way it shows the ‘personality’ of the organization. The unique culture of an organization creates a distinct atmosphere that is felt by the people who are a part of the group, and this atmosphere is known as the climate of an organization.

Types of Organizational Culture

There are four types of cultures that can be identified in organizations as follows:

• Clan culture – It is where employees are behaving as an extended family, mentoring, nurturing and participation can be seen.

• Adhocracy culture – It is where employees of the organization are dynamic, risk-taking and innovative.

• Market Oriented culture – It is where employees are result oriented and focus on the job, competition and achievements.

• Hierarchically oriented culture – It is where the employees undergo a rigid structure, controls, former rules and policies. They expect to maintain stability, consistency and uniformity in their processes.

For example, an educational institute has a hierarchically oriented culture. It is the way all the activities function and also people perceive, think, and feel about things at the institute. 

What is Organizational Climate?

Organizational climate is about the the perception and feeling of each regarding the culture of a particular organization. The climate of an organization is subject to change frequently with the direct influence of top management within the organization. Organizational climate is much easier to experience and measure than organizational culture.

Types of Organizational Climate

There are different types of climates that have been created by the culture of an organization that can be categorized as follows:

• People-oriented climate – It is a climate that focuses on perceptions of individuals who are working in the organization.

• Rule-oriented climate – It is a climate based on established rules, policies and procedures in an organization.

• Innovation-oriented climate – It is a climate that encourages creative or new ways of doing tasks.

• Goal-oriented climate – It is a climate that focuses on achieving organizational goals.

What is the difference between Organizational Culture and Climate?

• Organizational climate can be clearly identified with the perceptions of individuals regarding the quality and characteristics of the organizational culture.

• Culture represents the true image of the organization, whereas climate represents individuals’ perceptions, although there might be differences between each of their ideas.

• Organizational culture is concerned with the macro vision of an organization, whereas organizational climate is very much concerned with the micro image of the organization.

Wednesday, 12 January 2022

Question No. 2A) IBO - 01 International Business Environment Mcom 1st Year

 

Solutions to Assignments 

IBO-01 International Business Environment


Solutions to Question No. 2 (A)


The main cause of the disequilibrium in the balance of payments arises from imbalance between exports and imports of goods and services. When for one reason or another exports of goods and services of a country are smaller than their imports, disequilibrium in the balance of payments is the likely result.
When the prices of goods are high in the country, its exports are discouraged and imports encouraged. If it is not matched by other items in the balance of payments, disequilib­rium emerges.

  • Cyclical Disequilibrium:
Cyclical disequilibrium is caused by the fluctuations in the economic activity or what are known as trade cycles. During the periods of prosperity, prices of goods fall and incomes of the people go down. These changes in incomes of the people and prices of goods affect exports and imports of goods and thereby influence the balance of payments.
“If prices rise in prosperity and decline in depression, a country with a price elasticity for imports greater than unity will experience a tendency for a decline in the value of imports in prosperity, while those for which imports price elasticity is less than one will experience a tendency for increase. These tendencies may be overshadowed by the effects of income changes, of course. Conversely, as prices decline in depression, the elastic demand will bring about an increase in imports, the inelastic demand a decrease.”

  • Secular or Long-Run Disequilibrium:
Secular (long-run) disequilibrium in balance of payments occurs because of long-run and deep-seated changes in an economy as it develops from one stage of growth to another. The current account in the balance of payments follows a varying pattern from one stage to another.
In the initial stages of development, domestic investment exceeds domestic savings and imports exceed exports. Disequilibrium arises due to lack of sufficient funds available to finance the import surplus, or the import surplus is not covered by available capital from abroad.
Then comes a stage of growth when domestic savings tend to exceed domestic investment and export outrun imports. Disequilibrium may result because the long-term capital outflow falls short of the surplus savings or because surplus savings exceed the amount of investment opportunities abroad. At a still later stage of growth domestic savings tend to equal domestic investment and long-term capital movements are on balance, zero.
  • Technological Disequilibrium:
Technological disequilibrium in the balance of payments is caused by various technological changes. Technological changes involve inventions or innovations of new goods or new tech­niques of production. These technological changes affect the demand for goods and productive factors which in turn influence the various items in the balance of payments. Each technological change implies a new comparative advantage to which a country adjusts to.
The innovation leads to increased exports if it is a new good and export-biased innovation. The innovation may lead to decline in imports if it is import-biased. This will create disequilibrium. A new equilibrium will require either increased imports or reduced exports.

  • Structural Disequilibrium:
Let us see how the structural type of disequilibrium is caused. “Structural disequilibrium at the goods level occurs, when a change in demand or supply of exports alters a previously existing equilibrium, or when a change occurs in the basic circumstances under which income is earned or spent abroad, in both cases without the requisite parallel changes elsewhere in the economy.”
A change in supply may also cause a structural disequilibrium. Suppose Indian jute crop falls because of the change in the shift in the crop-pattern, Indian jute exports will fall and disequilibrium will be created. Apart from goods, a loss of service income may also upset the balance-of-payments position on current account.

Here we detail about the four methods adopted to correct disequilibrium in balance of payments.

1. Trade Policy Measures: Expanding Exports and Restraining Imports:
Trade policy measures to improve the balance of payments refer to the measures adopted to promote exports and reduce imports.
Exports may be encouraged by reducing or abolishing export duties and lowering the interest rate on credit used for financing exports. Exports are also encour­aged by granting subsidies to manufacturers and exporters.
Therefore, India had to face great difficulties with regard to balance of payments. At several occasions it approached IMF to bail it out of the foreign exchange crisis that emerged as a result of huge deficits in the balance of payments. At long last, economic crisis caused by persistent deficits in balance of payments forced India to introduce structural reforms to achieve a long-lasting solution of balance of payments problem.

2. Expenditure-Reducing Policies:
The important way to reduce imports and thereby reduce deficit in balance of payments is to adopt monetary and fiscal policies that aim at reducing aggregate expenditure in the economy. The fall in aggregate expenditure or aggregate demand in the economy works to reduce imports and help in solving the balance of payments problem.

3. Expenditure – Switching Policies: Devaluation:
A significant method which is quite often used to correct fundamental disequilibrium in balance of payments is the use of expenditure-switching policies. Expenditure switching policies work through changes in relative prices. Prices of imports are increased by making domestically produced goods relatively cheaper. Expenditure switching policies may lower the prices of exports which will encourage exports of a country. In this way by changing relative prices, expenditure-switching poli­cies help in correcting disequilibrium in balance of payments.
The important form of expenditure switching policy is the reduction in foreign exchange rate of the national currency, namely, devaluation. By devaluation we mean reducing the value or exchange rate of a national currency with respect to other foreign currencies. It should be remembered that devaluation is made when a country is under fixed exchange rate system and occasionally decides to lower the exchange rate of its currency to improve its balance of payments.
Under the Bretton Woods System adopted in 1946, fixed exchange rate system was adopted, but to correct fundamen­tal disequilibrium in the balance of payments, the countries were allowed to make devaluation of their currencies with the permission of IMF. Now, Bretton Woods System has been abandoned and most of the countries of the world have floated their currencies and have thus adopted the system of flexible exchange rates as determined by market forces of demand for and supply of them.

4. Exchange Control:
We know that deflation is dangerous; devalu­ation has a temporary effect and may provoke others also to devalue. Devaluation also hits the prestige of a country. These methods are, therefore, avoided and instead foreign exchange is controlled by the government.
Under it, all the exporters are ordered to surrender their foreign exchange to the central bank of a country and it is then rationed out among the licensed importers. None else is allowed to import goods without a licence. The balance of payments is thus rectified by keeping the imports within limits.
After the Second War World a new international institution’ International Monetary Fund (IMF)’ was set up for maintaining equilibrium in the balance of payments of member countries for a short term. Member countries borrow from it for a short period to maintain equilibrium in the balance of payments. IMF also advises member countries how to correct fundamental disequilibrium in the balance of Payments when it does arise. It may, however, be mentioned here that no country now needs to be forced into deflation (and so depression) to root out the causes underlying disequilib­rium as had to be done under the gold standard. On the contrary, the IMF provides a mechanism by which changes in the rates of foreign exchange can be made in an orderly fashion.

Question No. 1B) IBO - 01 International Business Environment Mcom 1st Year

 

Solutions to Assignments 

IBO-01 International Business Environment


Solutions to Question No. 1 (B)

An international business environment refers to the surrounding in which international companies run their businesses. Therefore, it is mandatory for the people at the managerial level to work on the factors that comprise of International Business Environment.

  • Economic Environment in International Business
The economic environment relates to all the factors that contribute to a country’s attractiveness for foreign businesses. The economic environment can be very different from one nation to another. Countries are often divided into three main categories: the more developed or industrialised, the less developed or third world, & the newly industrialising or emerging economies.
Within each category, there are major variations, but overall the more developed countries are the rich countries, the less developed the poor ones, & the newly industrialising (those moving from poorer to richer). These distinctions are generally made on the basis of the gross domestic product per capita (GDP/capita). Better education, infrastructure, & technology, healthcare, & so on are also often associated with higher levels of economic development.
Clearly, the level of economic activity combined with education, infrastructure, & so on, as well as the degree of government control of the economy, affect virtually all facets of doing business, & a firm needs to recognise this environment if it is to operate successfully internationally. While analysing the economic environment, the organisation intending to enter a particular business sector may consider the following aspects:

  1. An Economic system to enter the business sector.
  2. Stage of economic growth & the pace of growth.
  3. Level of national & per capita income.
  4. Incidents of taxes, both direct & indirect tax
  5. Infrastructure facilities available & the difficulties thereof.
  6. Availability of raw materials & components & the cost thereof.
  7. Sources of financial resources & their costs.
  8. Availability of manpower-managerial, technical & workers available & their salary & wage structures.



Question No. 1a) IBO - 01 International Business Environment Mcom 1st Year


Solutions to Assignments 

IBO-01 International Business Environment


Solutions to Question No. 1 (a)


A vibrant international trade environment benefits all participating parties. Countries with high levels of international trade have stronger economies, better standards of living and steadier growth.
  1. International Trade Raises Living Standards
Exports boost the economic development of a country, reduce poverty and raise the standard of living. The world's strongest economies are heavily involved in international trade and have the highest living standards, according to the Operation for Economic Co-operation and Development (OECD).
Countries like Switzerland, Germany, Japan and the Scandinavian countries have high volumes of imports and exports relative to their gross domestic product and offer high standards of living. Nations with lower ratios of international trade, such as Greece, Italy, Spain and Portugal, face serious economic problems and challenges to their living standards. Even with low wages, less developed countries can use this advantage to create jobs related to exports that add currency to their economy and improve their living conditions.

2. Exports Increase Sales

Exporting opens new markets for a company to increase its sales. Economies rise and fall, and a company that has a good export market is in a better position to weather an economic downturn.
Furthermore, businesses that export are less likely to fail. It's not only the exporting companies that increase sales; the companies that supply materials to the exporters also see their revenues go up, leading to more jobs.

3. Exports Create Jobs 

A company that increases its exports needs to hire more people to handle the higher workload. Businesses that export have a job growth 2 to 4 percent higher than companies that don't; these export-related jobs pay about 16 percent more than jobs in companies with fewer exports. The workers in these export-related jobs spend their earnings in the local economy, leading to a demand for other products and creating more jobs.

4. Imports Benefit Consumers

Imported products result in lower prices and expand the number of product choices for consumers. Lower prices have a significant effect, particularly for modest and low-income households. Studies show that lower import prices save the average American family of four around $10,000 per year.
Besides lower prices, imports give consumers a wider choice of products with better quality. As a result, domestic manufacturers are forced to lower their prices and increase product lines to meet the competition from imports. Even further, domestic vendors may have to import more components of their products to stay price competitive.

5. Improved International Relations

International business removes rivalry between different countries and promotes international peace and harmony. Mutual trade creates a dependence on each other, improves confidence and fosters good faith.
A good example of co-dependency of nations is the relationship between the United States and China. Even though these countries have significant political differences, they try to get along because of the huge amount of trade between them.

IBO-01 International Business Environment Mcom 1st Year

SOLUTIONS TO ASSIGNMENTS

IBO - 01 - International Business Environment

Question 1 a) How can the study of the International Business Environment be useful for Managers? Give your arguments.                                             CLICK HERE


Question 1 b) Briefly explain the Economic and Financial Environment of International Business.                                              CLICK HERE

Question 2 a) How does disequilibrium occur in the balance of payments? Describe the methods of correcting the disequilibrium with examples.       CLICK HERE


Question 2 b) Illustrate the advantages and disadvantages of FDI. Discuss the role of FDI in the economic development of the host country.     CLICK HERE

Question 3 Distinguish between the following: 
(a) Micro and Macro Business Environment. 
(b) Flexible and Fixed Exchange Rate. 
(c) GATT and WTO. 
(d) Export Sales Contract and Domestic Sales Contract.           CLICK HERE

Question 4 Comment on the following statements: 
(a) Indian foreign trade policy does not facilitate the import of technology. 
(b) ICC has no role in arbitration and conciliation. 
(c) All contracts are agreements but all agreements are not contracts. 
(d) World Trade is not concentrated in a few countries and products.       CLICK HERE

Question 5 Write notes on the following: 
(a) Political Risks. 
(b) Alternative Dispute Resolution (ADR). 
(c) Wagering Agreement. 
(d) Code of Ethics for International Marketing.                     CLICK HERE 

All Questions - MCO-021 - MANAGERIAL ECONOMICS - Masters of Commerce (Mcom) - First Semester 2024

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