Question No. 1 - MMPC-003 - Business Environment - MBA and MBA (Banking & Finance)

Solutions to Assignments

                           MMPC-003 -  Business Environment

Question No. 1

Describe the nature and scope of Business Environment. What are the various types of Business Environment? Discuss giving examples. 

Nature of Business Environment

The nature of business environment is as follows:

1.   Complex: Business environment is compound in nature. Environment consists of a number of factors, events, conditions and influences arising from different sources which impact business thus making the business complex.

2. Interdependence: The environment of the business is made of social, economic, legal, cultural, technological, and political factors. These factors of the environment are inter-dependable. The economic status of a country affects the development of technology. A rich country can make sufficient expenditure on the research and development.

3.  Dynamic: Business environment is constantly changing process. Business environment is dynamic as it keeps on changing in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. The various forces in the environment keep on changing from time to time thus making business dynamic and not static.

4. Inter-relatedness: The different factors of business environment are co-related. For example, let us suppose that there is a change in the import-export policy with the coming of a new government. In this case, the coming of new government to power and change in the import-export policy are political and economic changes respectively. Thus, a change in one factor affects the other factor.

5. Impact: Business environment has both long term and short term impact. Environment therefore has different effects on different firms in the same industry, for example, drugs.

6.    Uncertainty: Business environment is largely uncertain as it is very difficult to predict future happenings, especially when environment changes are taking place too frequently as in the case of information technology or fashion industries.

7.  Relativity: It is a relative concept since it differs from country to country and region to region. Political conditions in the USA, for example differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.

SCOPE OF BUSINESS ENVIRONMENT

Identifies Business Opportunities and Threats

Business environment helps business in identification of various opportunities and threats. When business is able to detect market opportunities timely, they can easily take advantages of such opportunity at earliest. They can earn maximum returns by availing such opportunity before the competitors. By proper interaction between business and its environment all threats can be easily detected. It will enable business in taking corrective measures timely.

Helps in Planning and Policy Formulation

Proper understanding of business environment helps in formulating better policies and strategies. It conveys all current information regarding market conditions to business. All opportunities and threats are scanned through the study of the business environment. Businessmen are properly aware of environment and thereby take all decisions according to it. Their entire plan can be changed effectively and efficiently through environmental awareness.

Provides Useful Resources

Business depends on the environment in which they operate for several resources. Business environment supplies several inputs like raw materials, capital and labour which are used by the business for its operations. These inputs are converted into goods and services for satisfying the needs of the market. Without proper supply of inputs, business cannot continue its operations. It is fully dependent upon environment for taking inputs and delivering the required goods or services.

Improves Performance

Business environment has an effective role in accelerating the overall performance of business organisations. Through continuous environmental awareness, managers update their knowledge and skills. Environmental study serves as the medium of educating management. Monitoring of environment provides qualitative information which helps in developing strategic thinking. It enables managers to adopt suitable management practices to control and improve the performance of business.

Helps in Coping with Rapid Changes

Factors which constitute business environment are dynamic in nature. They keep on changing continuously from time to time. These changes include changes in customer’s preferences, fashion, technology, economic conditions etc.

Proper understanding of the business environment helps business in detecting all these frequently occuring changes easily. It enables them in dealing with these changes efficiently by taking appropriate actions at right time. Managers through continuous monitoring of environment are sensitive to such changes and respond effectively.

Enhances Business Image

Business through proper understanding of its environment are able to improve its public image. They are more responsive and sensitive to the environmental needs through proper knowledge of business environment. Study of environment provides them information for making realistic plans and implementing them effectively. Businesses are able to provide better service and serve the interest of entire society. People are happy with the business and develop confidence towards it. This enables in developing a better image in market.

Assist in Facing Competition

Business environment communicates all details about competitors in market to business. Awareness regarding the actions and strategies of competitors is crucial for every business for meeting competition effectively. It helps business in formulating plans and policies in accordance with the competitor’s actions. Businesses are able to face challenges and competition in market through systematic planning in an efficient way.

TYPES OF BUSINESS ENVIRONMENT

Types of Business Environment

The Business Environment can be classified as follows:

I) Internal Environment

II) External Environment

Internal environment refers to those factors within an organisation e.g Policies and programmes, organisational structure, employees, financial and physical resources. These factors can be changed or altered and hence are known as controllable factors.

External environment  refers to those factors outside the business These factors by and large are beyond the control of a business and hence uncontrollable .e.g economic, political and socio-cultural factors.

1. Internal Environment

Internal Environment Factors

The major internal factors affecting business decisions are

i. Values system: The values of the founder/ owner of the business , percolates down to the entire organisation and has a profound effect on the organisation. The success of an organisation depends upon the sharing of value system by all members. External business associates like suppliers and distributors consider the value system practised by an organisation with strong culture of ethical standards and values.

ii. Vision and objectives: The vision and objectives of a business guides its operations and strategic decisions. Example ‘Amul the taste of India’ Gujarat Co-operative Milk Marketing Federation GCMMF

Two Indian companies TATA Steel and WIPRO have been named as the world’s most ethical companies by American Think tank Ethisphere Institute. Infosys, Murugappa group, TVS group

Vision: Liberate our farmers from economic oppression and lead them to prosperity.

iii. Management structure and ature: The structure of management/board and their style of functioning, the level of professionalism of management, the composition of the board are the various factors which affects the decision making. Since the board is the highest decision making authority, it’s composition, degree of professionalism and style of operations plays a very critical role in the growth and development in an organisation.

iv. Internal power relations: This refers to the internal power relations that exist in an organisation. The relations among board members , between board members and the CEO and the level of support enjoyed by the board from its’ stakeholders namely employees and shareholders are significant factors which affects decision making and its implementation in an organisation.

v. Human resources : The success of an enterprise is solely dependent on its manpower. Therefore the quality, skill competency, right attitude and commitment of its human resources is essential for the success of an organisation.

vi. Company image: The image of an organisation plays an important role in introducing new products, selecting agents and dealers for distribution, forging alliances with suppliers, expanding and entering new markets both domestic and international, raising finance etc.

vii. Other factors: The firm’s ability to innovate reflected by its research and development, the strength of its financial position and the capital structure, the efficiency in managing the marketing and distribution network ,and the physical resources like plant, building technology are the other major factors on which affects the success of a business.

 

2. External environment

All factors outside the business which have a bearing on the working of a business can be termed as the external environment. This is subdivided into micro or task environment and macro or general environment.

 

3. Micro Environment

Micro Environment Factors

This refers to those factors which are in the immediate environment of a business affecting its performance. These include the following:

i) Financiers: The financiers of a business which includes the debenture holders and financial institutions play a significant part in the running of a business. Their financial capability, policies strategies, attitude towards risk and ability to give non–financial assistance are all important to a business.

ii) Suppliers: In any organisation the suppliers of raw materials and other inputs play a very vital role. Timely procurement of materials from suppliers enables continuity in production and reduces the cost of maintaining stock/inventory. Organisations generally obtain supplies from a panel of suppliers instead of relying on a single source. Organisations have realised the importance of nurturing and maintaining good relationship with the suppliers.

iii) Marketing Channel members: The marketing inter-mediaries serve as a connecting link between the business and its customers .The middlemen like dealers, wholesalers and retailers ensure transfer of product to customers .physical distribution is facilitated by transporters, and warehouses help in storing goods. Market research agencies help the firm to understand the needs of the customers while advertising agencies help in promoting the products and services. Insurance firm is another marketing intermediary which provides coverage for risk in business.

iv) Public This refers to any group like media group, citizen action group and local public which has an impact on the business. The public group has the ability to make or mar a business. Many companies had to face closure due to actions by local public.

v) Customers: The aim of any business is to satisfy the needs of its customers. The customer is the king and the fulcrum around which the business revolves. Hence it is essential for any business to understand the needs of its varied customers like individuals, retailers, wholesalers, industries and government sector. Customer relationship management aims at creating and sustaining cordial relations with customers.

vi) Competitors: All organisations face competition at all levels local, national and global. Competitors may be for the same product or for similar products. It is important for a business to understand its competitors and modify their business strategies in the face of competition.

4. Macro Environment:

Macro Environment Factors

This is the general or overall environment in which the business operates. The success of a business is dependent on its ability to adapt to the macro environment, since these are uncontrollable factors. They offer enormous opportunities to business and also poses serious threats to business. The general or remote environment factors are as follows;

I. Economic environment: The business is an integral part of the economic system prevalent in a nation. The multiple variables in the macro environment system which has a bearing on a business include

1) The nature of economy based on the stage of development: The countries across the globe can be categorised on the basis of growth and per capita income as developed nations, developing nations and under developed nations. The USA, Japan, Germany, Canada and Australia developed economies generally have high degree of technological advancement, very strong and robust industrial base, and high standard of living. Many of these developed nations have successfully integrated the computer based technologies with their existing business. Developing nations like India, China, Brazil Mexico are middle income economies are characterised by low to moderate industrial growth, the inequality in the distribution of income, high population, a low standard of living and slow absorption of technology. Under developed nations are low income economies with a very low degree of technology adoption and a very poor standard of living.

2) The nature of economic system: The economic systems can be classified as Capitalistic, Socialistic and Mixed economy. Capitalistic economy is a free enterprise market where individual ownership of wealth is predominant. Socialistic economy is a state controlled with a lot of restrictions on private sector. Mixed economy is a combination of both state owned and private sector ownership.

3) The economic policies of a nation: Monetary policy, fiscal policy, Export-import policy, Industrial policy Trade policy, Foreign exchange policy etc are part of the economic environment.

4) Economic indices: The Economic indices like GDP, GNP national income, per-capita income, balance of payments, rate of savings and investments etc. form an important part of economic environment.

5) Development of financial market: The organisation and development of money market, capital market securities market and, the banking system has a greater impact.

6) Economic structure: The Economic structure includes capital formation, investment pattern, composition of trade balance, occupational distribution of workforce, and the structure of national output.

II. Socio-Cultural environment - Business is a part of the society .Social environment refers to the sum total of factors of the society in which the business is located. Social and cultural environment of society affects the business. It is dynamic and includes the behaviour of individuals, the role and importance of family, customs, traditions, beliefs and values, religion and languages, the ethical values. The literacy level, and the social attitudes of the people of the society. The socio-cultural environment also includes the following;

1) The social institutions and groups

2) Family structure prevalent in the society

3) Role of marriage as an institution

4) Caste system in the society

5) Customs , beliefs and values

6) Demographic factors which includes the size, composition, literacy level, distribution and mobility of the population

7) The lifestyle of people and their tastes, likes and preferences.

III. Political and Legal environment – The framework for running a business is given by the political and legal environment. The success of a business lies in its ability to adapt and sustain to political and legal changes. The legislative, executive and judiciary are the three political institutions which directs and influences a business.The major elements of the legal and political environment are

1) Political stability is reflected by the following parameters like the election system, the law and order situation, the role and structure of Military and Police force, the declaration of President’s rule, civil war etc

2) Political organisation refers to the ideology and philosophy of the political parties, the government, the role and degree of authority of bureaucracy, the level of political consciousness among citizens and the funding of political parties by business houses and the clout wielded by them.

3) The image of the leader and the country in the inter-national arena.

4) Legal framework of business and their degree of flexibility.

5) The constitution of the nation.

6) The Foreign policy of the country with special reference to tariffs and free trade.

IV. Geo-physical environment – The natural, geographical and ecological factors have a bearing on the business. These are as follows;

1) the availability of natural resources like minerals oil .etc, since setting up of industries requires availability of raw materials

2) the weather and climatic conditions and availability of water and other natural resources is essential for the agricultural sector .

3) topographical factors like the terrain impacts type of business since the demand and consumption pattern may vary in these regions. E.g in the the hilly region mode of transport will have to be modified to tackle the terrain.

4) ecological factors are now gaining momentum, since the governments across the globe are framing stringent policies for ecological conservation and prevention of pollution. The ban on use of plastic bags imposed by the Ooty corporation is an example.

5) location of certain industries is influenced by the geographical conditions For e.g In Tamilnadu the concentration of cotton textile industry in Coimbatore is due to conducive weather conditions. .

6) availability of natural harbours and port facilities for transporting goods .

V. Technological environment

The development in the IT and telecommunications has created a global market. Technology is widely used in conducting market research for understanding the special needs of the customer. Digital and social media are used as a platform for advertising and promoting the products/services. Data-mining and data analytics are used to know the customer better. Technology is used in managing inventory, storing goods in warehouses, in distributing goods and in receiving payment. This dynamic environment also includes the following ;

1) the level of technology available within the country

2) rate of change in technology

3) technology adopted by competitors

4) technological obsolescence

VI. Global environment

With the rapid growth of technology the physical boundaries are fast disappearing and the new global market is emerging. The international environmental factors which affects a business are as follows;

1) Differences in language and culture

2) Differences in currencies

3) Differences in norms and practices

4) Differences in tastes and preferences of people

5) The tax structure relating to import and export.

6) Differences in the degree of adoption of technology.

MMPC-003 - Business Environment - MBA and MBA (Banking & Finance)

Solutions to Assignments

                           MMPC-003 -  Business Environment

Question No. 1                                        CLICK HERE

Describe the nature and scope of Business Environment. What are the various types of Business Environment? Discuss giving examples.  

Question No. 2                                        CLICK HERE

What are the important elements of politico-legal environment? How does the government regulate business? Discuss in detail. 

Question No. 3                                        CLICK HERE

Describe the structure and working of the money market and capital market. 

Question No. 4                                         CLICK HERE

How does technological advancement impact international business environment. Discuss. 

Question No. 5                                         CLICK HERE

Write short notes on the following: 

 a) Balance of Payments (BoP) 

 b) Corporate Social Responsibility (CSR) 

 c) Tax Reforms 

 d) Farm Reforms 2020

Question No. 5 - MMPC -002 - Human Resource Management - MBA and MBA (Banking & Finance)

Solutions to Assignments

                MMPC -002 - Human Resource Management

Question No. 5 

Discuss the relevance of the understanding of job design for developing organisational effectiveness.

One of the most frequent questions people often ask one another when they first meet is “What are you doing?” Instead of saying, “I teach in a college” or “I treat patients”, a person often says, “I am a teacher” or “I am a doctor” like this. This exhibits the occupation of a person. Occupation provides a person his identity. It talks a great deal about ones social position. of occupation also implies a set of social relationships (Hughes, 1945). For instance, the occupation as a professor implies that students , other professors, and publishers’ representatives are part of the set of their social relationships. Finally, occupations are by and large linked to the work of adults (Roe, 1956). The work carried out by teenagers is not often considered as an occupation, because it does not frame a major part of their identities as individuals. Taking into account all of these considerations, occupation is defined as “the social role performed by adult members of society that directly and/or indirectly yields social and financial consequences and that constitutes a major focus in the life of an adult” (Hall, 1975). A job is a person’s occupation at one point in time. A career is the unfolding sequences of jobs that a person has over the life course. 

The term ‘job design’ refers to the way the tasks are combined to form a complete job. It can be defined as building the specifications of the position, contents, method and relationships of the job so as to meet with various technological and organizational requirements as well as meet the personal needs job holders. According to Bowditch and Buono, job design refers to “ any set of activities that involve the alteration of specific jobs or interdependent systems of jobs with the intent of improving the quality of employee job experience and their on- the-job productivity.” 

While designing a job, the following points are to be borne in mind: 

Job redesign is an essential allegiance to quality improvement of the individual, and the organization. It should be performed from either the bottom up, or top down, depending upon the hierarchy and responsibility of the position and its relationships within the organization. 

Job design is a process which integrates work content (tasks, functions, relationships), the reward (extrinsic and intrinsic), and the qualifications required (skills, knowledge, abilities) for each job in a way that meet the needs of employees and the organization. 

Some jobs are routine because the tasks are consistent and repetitive; other are non-routine. Some require a large number of varied and diverse skills; other are narrow in scope. Some jobs constrict employees by requiring them to follow very clear-cut procedures; others allow employees considerable autonomy in how they do their work. 

Some jobs are most effectively accomplished by groups of employees working as a team; whereas other jobs are best done by individuals acting essentially independently. Thus jobs differ in the way their tasks are combined, and different combinations produce a variety of job designs in the organization.

There are three objectives of jobs design which are as follows: 

- to meet the organizational requirements such as higher productivity, operational efficiency, quality of product/service, etc.;

- to satisfy the needs of the individual employees like interest, challenge, achievement or accomplishment, etc.; and

- to integrate the needs of the individual with the organizational requirements.

While designing a job, the following factors are taken into consideration. 

i. The volume of work - it will determine by and large the number of jobs. 

ii. The complexity of the work - to be carried out, both in terms of its variety or breadth and its technical difficulty or depth. 

iii. The work processes involved -It might be desirable for one person to be involved in an entire process, or the work flows may be such that the work process has to be divide between several different people. 

iv. The nature of the people currently employed in the organization- The extent to which jobs can be redesigned depend largely on the kind of people employed 

v. The sequence of flows in the process- the succession of events and their timings affect how the work can be organized. Where activities are carried out over a longer period, this is likely to be the cause of greater complexity. 

vi. The timescales - where immediate responses are required, specific jobs may have to be earmarked to provide such responses. Work requiring longer planning horizons is likely to be more complex and needs therefore to be done at a higher level. 

vii. The geographical scattering of the organization’s activities . 

viii. The involvement of other parts of the organization in the overall process- there may be a need for extensive communication and coordination and the design of jobs should take account of the way this is to be achieved. 

ix. The effect of information technology (Cushway and Lodge, 2001).

In recent years, as computers and high technology become more and more ingrained in the modern workplace, the basic problem arises how to successfully fit technological advancements into job designs. 

Automation 

Highly simplified jobs often cause problems because they offer little intrinsic motivation for the worker. The tasks have been defined so narrowly that they lack challenge and cause boredom when someone repeats them over and over again. Given the high technology available today, one way to deal with this problem is by complete automation-allowing a machine to do the work previously accomplished through human effort. This approach increasingly involves the use of robots, which are becoming more and more useful and reliable. 

Flexible Manufacturing 

Flexible manufacturing cells, teams of workers using special technology, exploit adaptive and integrated job designs to shift work among alternative products. This approach is gradually more widespread. Under this system, a cellular manufacturing system hold a number of automated production machines that cut, shape, drill, and fasten together various metal components. Each machine is attached to the others by convertible conveyor grids that allow quick change from manufacturing one product to another-such as from air-conditioner compressors to engine crankshafts. Workers in the cells perform very few routine assembly-line tasks. As an alternative, they dedicate most time to make certain that operations are carried out correctly and to handling changeovers from one product configuration to another. Above and beyond, to keep production flowing slickly, each worker needs to improve expertise across a wide range of tasks. In this way flexible manufacturing cells comprise jobs that are often enriched on the core characteristics.

Electronic Offices 

Electronic office technology was the key when U.S. Healthcare, a large, private-practice based health maintenance organisation (HMO), became interested in improving the quality of its health-care services. The company installed large electronic bulletin boards that monitored progress toward a range of performance goals. It also installed an electronic main (e-main) system, used robots to dispense paper mail, and installed a computerized telephone answering machine. Fundamentally, the company tried to automate as many tasks as possible to free employees for more challenging work. Continuing development in these electronic offices present many new job opportunities for those with the necessary abilities and interests, but they can be stressful and difficult for those who lack the necessary education or skills. Clearly, today’s high technologies must be carefully integrated with the human factor, and continuing education and training are still needed to equip people to deal with emerging workplace technologies.

Work-Flow and Process Reengineering 

One of the most recent approaches for upgrading job designs and organisational performance is based on the concept of process reengineering. Process engineering means the analysis, reshuffling, and reconfiguration of actions and tasks required to reach a work goal. This approach methodically breaks work processes down into their specific components and subtasks, analyses each for relevance and simplicity, and then does everything possible to reconfigure the process to eliminate wasted time, effort, and resources. Job redesign through process reengineering focus on every step in the process, from the seeking out for items and vendors, to the obtaining of bids, to the completion of necessary forms, to the securing of required signatures and approvals, to the actual placing of the order, and so on to the point at which the new computer actually arrives, is checked in, is placed into an equipment inventory, and is finally delivered to the workplace.

Question No. 4 - MMPC -002 - Human Resource Management - MBA and MBA (Banking & Finance)

Solutions to Assignments

                MMPC -002 - Human Resource Management

Question No. 4 - 

Define collective bargaining in your own words. Critically evaluate the state of collective bargaining in the present day business scenario. Explain with examples your answer giving due details of the organisations and the sources you are referring to.

Collective bargaining, the ongoing process of negotiation between representatives of workers and employers to establish the conditions of employment. The collectively determined agreement may cover not only wages but hiring practices, layoffs, promotions, job functions, working conditions and hours, worker discipline and termination, and benefit programs.

Collective bargaining existed before the end of the 18th century in Britain; its development occurred later on the European continent and in the United States, where Samuel Gompers developed its common use during his leadership of the American Federation of Labor. Collective agreements are probably least significant in developing countries that have large labour populations from which to draw.

The degree of centralization in the bargaining process and the functions performed by collective agreements vary. Contract negotiation may occur at the national, regional, or local level, depending on the structure of industry within a country. National agreements, which are more common in smaller countries, usually settle general matters, leaving more detailed issues for local consideration. An agreement may, for example, set actual wage rates, or it might simply establish minimum wage rates.

Collective agreements are not legally binding in all countries. In Britain their application depends on the goodwill of the signatories. In some countries—including Germany, France, and Australia—the government may require that the terms of negotiated settlements be extended to all firms in an industry. In the United States similar results have been achieved, albeit less formally, by unions that select a target employer in a particular industry: the negotiation of a new agreement with the targeted employer then sets the pattern for other labour contracts in the same industry.

Like many other countries, in India, collective bargaining got some impetus from various statutory and voluntary provisions. The Trade Disputes Act 1929, the Bombay Industrial Relations Act 1946, the Industrial Disputes Act 1947, and the Madhya Pradesh Industrial Relations Act 1960, provided a machinery for consultation and paved the way for collective bargaining. Among the voluntary measures, mention may be made to the different tripartite conferences, joint consultative machineries, code of discipline, and Central and State Implementation and Evaluation Units. 

In India, collective bargaining was not very popular till the end of the Second World War. However, there had been a few instances where wages and working conditions were regulated by collective agreements even earlier. The collective bargaining agreements have been concluded at three levels – at plant level, industry level, and national level. Collective bargaining was traditionally conducted at the plant level as in the case of TISCO, Indian Aluminium Company, and Bata Shoe Company. 

In some industrial units, detailed grievance procedures have been laid down by mutual agreements. The collective agreement signed between the TISCO and the Tata Workers’ Union in 1956 embodies a provision for grievance procedure and closer association of employees with management. The Belur Report of 1958, which is a study by Subbiah Kannappan and his associates in the Indian Aluminium Company is one of the best published case studies on collective bargaining in India. It throws light on the factors responsible for creating a favourable bargaining relationship between the management and the union. The best example of an industry level agreement is offered by the textile industry of Bombay and Ahmedabad. The agreement between the Ahmedabad Millowners’ Association and the Ahmedabad Textile Labour Association, which were signed on 27 th June 1955, laid down the procedure to be followed for the grant of bonus and the voluntary settlement of industrial disputes. The practice of industrywise bargaining continues to prevail in the cotton textile industry in Maharashtra, Gujarat, and Tamil Nadu; in Jute Textiles and in the plantation industry in Karnataka, Tamil Nadu, and West Bengal. In most other industries, particularly in modern industry groups, collective agreements are entered into at the plant or enterprise level.

The agreements at the national level are generally bipartite agreements and are finalised at conferences of labour and management convened by the Government of India. The bonus agreement for plantation workers was concluded in January 1956 between the representatives of the Indian Tea Association and the India Tea Planters’ Association on the one hand, and the Hind Mazdoor Sabha (HMS) and the Indian National Trade Union Congress (INTUC) on the other. The agreement was about the payment of bonus to about one million plantation workers. The Employer’s Federation of India (EFI) in a study of collective bargaining in its member organisations in the late sixties (published in a monograph in 1970) classified collective agreements into three categories: (i) agreements which have been drawn up after direct negotiations between the parties and are purely voluntary in character for the purpose of their implementation; (ii) agreements which combine the elements of voluntarism and compulsion, i.e., those negotiated by the parties and registered before a conciliator as settlements; and (iii) agreements which acquire legal status because of successful discussion between the parties when the matters in disputes were under reference to industrial tribunal/ courts and could be considered sub judice, the agreements reached being recorded by the tribunals/courts as consent awards.

The EFI study covered 109 collective agreements, relating to 77 companies and 11 industrial associations. Results of the study show that the collective agreements have included all levels. Industry-wide agreements were concluded in engineering, textiles, and tea plantations, and plant-wide or company-wide agreements were the norm in most other industries. The EFI study found “two categories of subjects (which) appear to have figured prominently in the collective agreements, one having a direct bearing on the pay packet and the other relating to leisure and leave.” Wages, dearness allowance, retirement benefits and bonus (appearing in a majority of agreements) are illustrations of the first category, and annual leave, paid holidays, and casual leave are (included in a smaller but substantial number of agreements) of the second. Out of the 109 agreements analysed, 96 dealt with wages and 50 with bonus. As for the duration of the agreements as many as 49 (i.e. 45 percent) were for a period of 3 years, 18 were for a period of 5 years and only a small number were for a period of less than 2 years. There are 31 agreements, which dealt with the whole range of topics comprising wages, conditions of employment, and fringe benefits. The rest of them covered one or more specific subjects. The study makes the following concluding observations:

“Another notable feature of the agreements under reference, which is of considerable importance for the development and maintenance of harmonious industrial relations, is the recognition of their mutual rights and responsibilities by the representatives of management and employees. Under a number of agreements, the unions have recognised the right of the management among other things, to introduce new or improved methods of production, establish production schedules and standards, and make rules for maintaining discipline and securing effective operation of the plant. The right of the management to discharge workers for just cause, including inefficiency and lack of work, has also been conceded. The managements on their part have recognised the unions as bargaining agents and pledged to desist from unfair labour practices such as interference with the right of the workman to organise and join a union and discrimination against them because of their membership of a union. In the same manner, the trade unions have agreed to follow the constitutional methods as laid down in the grievance procedure to redress the grievances of their members and to desist from indulging in or encouraging unfair labour practices.”

A significant development of the 1970s is the emergence of bipartite national industrial committees in certain key industrial sectors such as coalmining, textile, sugar, electrical machinery, steel and cement. These committees comprise representatives of all major trade unions and employers in a given industry, and operate under broad terms of reference, which include a revision of wage structure and conditions of employment. These negotiating committees have covered both public and private sectors. The development of joint negotiating committees is a clear indication of the preference of the parties for collective bargaining over other methods. Although a variety of industries have been covered under this approach, we would confine our examination to two of the most important ones, namely, steel and coal mine. The new experiment, in the form of bipartite negotiating committees was first pioneered in the iron and steel industry in 1970. Early in that year a Joint Steel Wage Negotiating Committee [later on re-christened as National Joint Committee for the Steel Industry (NJCS)] was formed. The NJCS is composed of representatives of employers and employees. The employers’ side is represented by Indian Iron and Steel Company (IISCO) and Tata Iron and Steel Company (TISCO), and from all the public sector steel plants. On the employees’ side, there are three members each from the central trade union organisations, namely, the All India Trade Union Congress (AITUC), the Indian National Trade Union Congress (INTUC), Centre of Indian Trade Unions (CITU), and the Hind Mazdoor Sabha (HMS). Till now, the Committee has signed six agreements.

The coalmines in India were nationalised in 1973. There were agitations by the unions prior to 1973 because wage improvements sanctioned by the Coal Wage Board in 1967 had not been implemented by several (private) mine owners and operators. The government was not in favour of appointing another wage board for the industry and felt, instead, that wages and other matters in coalmining should be settled through negotiations and collective bargaining. With this end in view, a Joint Bipartite Committee for Coal Industry (JBCCI) was constituted on August 14, 1973 with union representatives from INTUC, AITUC and HMS, and management representatives from Coal Mines Authority, Tata Iron and Steel Company, and Indian Iron and Steel Company. 

Subsequently, the committee has signed six bipartite settlements regarding wage revision, working conditions, and other issues relating to coal industry. 

The National Commission on Labour (1966-69) reported the existence of collective agreements at all levels.

Most of the collective agreements have been at the plant level, though in the important textile centres like Bombay and Ahmedabad, industry-level agreements have been common. Such agreements are also to be found in the plantation industry in the South and in Assam, and in the coal industry. Apart from these, in new industries like chemicals, petroleum, oil refining and distribution, aluminium, manufacture of electrical and other equipment, and automobile repairing, arrangements of settlement of disputes through voluntary agreements have been common in recent years. In ports and docks, collective agreements have been the rule at individual centers. 

On certain matters affecting all ports, all India agreements have been reached. In the banking industry, after a series of awards, employers and unions are in recent years coming closer to reach collective agreements. On the whole, the record of reaching collective agreements has not been unsatisfactory, though its extension to a wider area is certainly desirable. For promotion of collective bargaining, the commission recommended, among other things, statutory recognition of representative union as the sole bargaining agent. The following steps may be considered for promoting collective bargaining in our country: 

1) Collective bargaining should be declared as an integral part of India’s national industrial relations policy. In order to give it a constitutional sanctity, it should be incorporated in the Directive Principles of State Policy. 

2) The two relevant instruments setting international standards regarding collective bargaining, namely, Convention 98 concerning the application of principles of the right to organise and to bargain collectively adopted in 1949, and Recommendation 91 concerning collective agreements adopted in 1951, should be ratified/implemented. 

3) Collective bargaining should be adopted as a part of the corporate personnel policy in all public sector enterprises, departmental undertakings, and in public utility services. 

4) There should be drastic trade union reforms such as: 

(a) recognition of the majority union as a bargaining agent; 

(b) development of a trained and educated cadre of worker-leaders through strong, enlightened, responsible and democratic trade unions; and 

(c) gradual delinking of trade unions from political parties. 

5) More emphasis should be given on mutual settlement of industrial disputes through collective bargaining rather than adjudication. A beginning has to be made in this direction by declaring that collective bargaining will acquire primacy in the procedure for settling industrial disputes.

Question No. 5 - MCO-03 - Research Methodology and Statistical Analysis

Solutions to Assignments

                               MCO-03 - 

    Research Methodology and Statistical Analysis

                           Mcom - 2nd Year

Question No. 5

Distinguish between the following: 

(a) Primary and Secondary Data 

In statistical analysis, collection of data plays a significant part. The method of collecting information is divided into two different sections, namely primary data and secondary data. In this process, the primary data is assembling data or information for the first time, whereas the secondary data is the data that has already been gathered or collected by others.

The most important characteristics of the primary data is that it is original and first-hand, whereas the secondary data is the interpretation and analysis of the primary data.

Primary Data Definition

Primary data is the data that is collected for the first time through personal experiences or evidence, particularly for research. It is also described as raw data or first-hand information. The mode of assembling the information is costly, as the analysis is done by an agency or an external organisation, and needs human resources and investment. The investigator supervises and controls the data collection process directly.

The data is mostly collected through observations, physical testing, mailed questionnaires, surveys, personal interviews, telephonic interviews, case studies, and focus groups, etc.

Secondary Data Definition

Secondary data is a second-hand data that is already collected and recorded by some researchers for their purpose, and not for the current research problem. It is accessible in the form of data collected from different sources such as government publications, censuses, internal records of the organisation, books, journal articles, websites and reports, etc.

This method of gathering data is affordable, readily available, and saves cost and time. However, the one disadvantage is that the information assembled is for some other purpose and may not meet the present research purpose or may not be accurate.

The differences between the primary and secondary data are represented in a comparison format as follows:

 

Primary Data	Secondary Data
Definition
Primary data are those that are collected for the first time.	Secondary data refer to those data that have already been collected by some other person.
Originality
These are original because these are collected by the investigator for the first time.	These are not original because someone else has collected these for his own purpose.
Nature of Data
These are in the form of raw materials.	These are in the finished form.
Reliability and Suitability
These are more reliable and suitable for the enquiry because these are collected for a particular purpose.	These are less reliable and less suitable as someone else has collected the data which may not perfectly match our purpose.
Time and Money
Collecting primary data is quite expensive both in the terms of time and money.	Secondary data requires less time and money; hence it is economical.
Precaution and Editing
No particular precaution or editing is required while using the primary data as these were collected with a definite purpose.	Both precaution and editing are essential as secondary data were collected by someone else for his own purpose.

(b) Estimation and testing of hypothesis

 

(c) Sampling and Non-Sampling Errors 

Sampling error is one which occurs due to unrepresentativeness of the sample selected for observation. Conversely, non-sampling error is an error arise from human error, such as error in problem identification, method or procedure used, etc.

An ideal research design seeks to control various types of error, but there are some potential sources which may affect it. In sampling theory, total error can be defined as the variation between the mean value of population parameter and the observed mean value obtained in the research. The total error can be classified into two categories, i.e. sampling error and non-sampling error.

BASIS FOR COMPARISON	SAMPLING ERROR	NON-SAMPLING ERROR
Meaning	Sampling error is a type of error, occurs due to the sample selected does not perfectly represents the population of interest.	An error occurs due to sources other than sampling, while conducting survey activities is known as non sampling error.
Cause	Deviation between sample mean and population mean	Deficiency and analysis of data
Type	Random	Random or Non-random
Occurs	Only when sample is selected.	Both in sample and census.
Sample size	Possibility of error reduced with the increase in sample size.	It has nothing to do with the sample size.

The significant differences between sampling and non-sampling error are mentioned in the following points:

a. Sampling error is a statistical error happens due to the sample selected does not perfectly represents the population of interest. Non-sampling error occurs due to sources other than sampling while conducting survey activities is known as non-sampling error.

b. Sampling error arises because of the variation between the true mean value for the sample and the population. On the other hand, the non-sampling error arises because of deficiency and inappropriate analysis of data.

c. Non-sampling error can be random or non-random whereas sampling error occurs in the random sample only.

d. Sample error arises only when the sample is taken as a representative of a population.As opposed to non-sampling error which arises both in sampling and complete enumeration.

e. Sampling error is mainly associated with the sample size, i.e. as the sample size increases the possibility of error decreases. On the contrary, the non-sampling error is not related to the sample size, so, with the increase in sample size, it won’t be reduced.

(d) Bibliography and footnote 

The Footnote

Content footnotes give additional information about the content, and bibliographic notes provide additional sources related to the content. The footnote is found at the bottom, or foot, of the page. It is marked by a superscript number within the body of the text. The superscript number also appears at the bottom of the page, along with the additional explanatory or bibliographic information.

If specific sources are used to write content footnotes, this information should be cited through parenthetical citations within the footnote and then with full citation information within the Works Cited, or Bibliography, page. Bibliographic footnotes point your readers to specific, related outside texts without providing much commentary on them. Full citation information for these sources should also be included on the Works Cited page.

The Bibliography

The Bibliography, or Works Cited, page is the last section of a paper. It compiles the full citation information for any source cited in or consulted for the paper into one location and allows your readers to get an overview of the works informing your thinking.

The full citation information found in this section tells your readers when and where a source was published, whereas a footnote might only include the title of the work. Additionally, no information besides the citation information is included within the bibliography.