The difference between such minimum and maximum incomes should be reasonable and equitable and variable from time to time so much so that the tendency would be towards obliteration of the difference.
Under the Gandhian economic order the character of production will be determined by social necessity and not by personal whim or greed. The philosophy of Trusteeship believes in inherent goodness of human beings. It involves the capitalists and landlords in the service of society without any element of coercion. Gandhiji himself believed that their destruction would result in the end of the workers 2. All of them have to do with social and political conditions.
There are professionals and businessmen who are able to accumulate wealth without working. Enjoy benefits from government programs without any financial burden. No risk and no responsibilities. Pleasure without Conscience: The pleasurable activities are devoid of any social responsibility or accountability.
We are just self-centered. We are least bothered about the effect of our acts on others. Knowledge without Character: Building character of students in academics while imparting knowledge is one of the primary tasks of a teacher. As dangerous as a little knowledge is, even more dangerous is much knowledge without a strong, principled character.
Inculcating the concept of kindness, fairness, dignity, contribution, honesty and integrity are worth in developing character. Knowledge with strong inbuilt character will create people with conviction and empathy.
Commerce Business without Morality Ethics : If we ignore the moral foundation and allow economic systems to operate without moral foundation and without continued education, we will soon create an amoral, if not immoral, society and business. Economic and political systems are ultimately based on a moral foundation.
Business and ethics should go hand in hand for both to prosper i. Science without Humanity: If science becomes all technique and technology, it quickly degenerates into man against humanity. Technologies come from the paradigms of science. And if there's very little understanding of the higher human purposes that the technology is striving to serve, we become victims of our own technocracy. Religion without Sacrifice: Practicing religion without sacrifice means like reading the holy books for the sake of it but not putting it in practice.
It takes sacrifice to serve the needs of other people - the sacrifice of our own pride and prejudice, among other things. If this happens than it can be called as real worship. Pride and selfishness will destroy the union between man and god, between man and woman, between man and man, between self and self. Humility is the hallmark of inner religion. Politics without Principle: We see politicians spending millions of rupees to create an image, even though it's superficial, lacking substance, in order to get votes and gain office.
And when it works, it leads to a political system operating independently of the natural laws that should govern the society and the country. This leads to a society with distorted values. In the best societies, natural laws and principles govern - that's the Constitution - and even the top people must bow to the principle. No one is above it. It consists of 15 chapters, Shlokas and Sutras. In all probability, this treatise is the first ever book written on Practice of Management.
It is essentially on the art of governance and has an instructional tone. Kautilya wrote this treatise for his swamy the king Chandragupta Maurya and stated in its preface that it has been written as a guide for "those who govern".
As in the present day management, the importance of vision, mission and motivation was captured in Arthashastra. Kautilya's concepts of the objectives of a king seem to be virtually adopted by Peter Drucker in his book, Managing for Results.
Kautilya reminds his swamy that his objectives for his rule are: 1. Acquire power; Making present business effective 2. Consolidate what has been acquired; Making present business effective 3. Expand what has been acquired; and Identify potential and realize it 4. Enjoy what has been acquired. Making it a different business for a different future On the organizational aspects, Kautilya evolves an elaborate hierarchy under the king.
The king appoints Amatya, the Prime Minister, who operates the day-to-day machinery of the State through a council of officials consisting of Mantris, the Ministers, Senapati, the warlord or the Defence Minister, Purohit, the Chief Justice and Yuvaraj, the Heir Apparent or identified successor to the throne Arthashashtra has detailed policies for the society, individual industries, labor and employment, calamities and control of vices.
He observes that the State, as an organization, is a social organization with economic aim. Here again, Peter Drucker and Kautilya go hand in hand as Drucker defines an organization as having 'social dimension and economic objective'. Finally, from the point of view of management of the kingdom, Kautilya's advice to his Swamy is indeed introspective and valid to the corporate world of the 21st century. Run a diversified economy actively, efficiently, profitably and prudently.
Bear in his mind that a king with depleted treasury is a weak king and the easiest target for a takeover. Ensure enactment of prudent policies. Reign only with the help of others.
Take proper care in appointing advisors. An ideal Swamy is the one who has the highest qualities of leadership, intellect, energy and personal attributes. Wealth lies in economic activities. Profitability should not only mean surplus over costs. It should also mean provision of investment for future growth. Diversified economy should consist of productive forests, water reservoirs, mines, productive activities, trade, markets, roads, ports, and storages.
Efficient management means setting up of realistic targets and meeting targets without using overzealous methods. Arthashastra is the evidence of the intellectual capital India possessed in its glorious past. We have the tradition of the past. We need the attitude for resurrecting and recreating the intellectual capital for the future. Indian Management concepts and thoughts can be traced back into the 4th century before Christ.
Peter Druker has been influenced by it in shaping his concepts and thoughts. Briefly explain the evolution of management thoughts along with the theories of management and the problems they address 2. In a nut shell discuss the four management schools that you have studied. What is contingency approach to management? Write a brief note on contingency approach management 5. Explain the findings of George Elton John Mayo regarding the connection between cooperation and higher output 7.
What are the five functions of Fayol 8. Explain the findings of George Elton John Mayo regarding the connection between cooperation and higher output What are the five functions of Fayol Discuss the contribution of Peter Drucker in the modern thoughts of management. Elaborate on the concepts of Seven Sins as propagated by Gandhi.
Know the role of Environment in the performance of business. Discuss the types of environment viz. Explain the concept business ethics its relevance and importance in running business. Remove either value and success becomes impossible. The term 'business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affect the business enterprise.
Business environment influence the functioning of the business system. These forces are customer, creditors, competitors, government, socio- cultural organisations, political parties national and international organisations etc. Specific forces affect individual enterprises directly and immediately in their day-to-day working. General force shaves impact on all business enterprises and thus may affect an individual firm only indirectly. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.
Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment. The important internal factors which have a bearing on the strategy and other decisions of internal organization are discussed below i Value system: The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices.
It is an important factor in achieving the objectives of the organization. The mission is the medium through which the objectives are achieved. The structure and style of the organization may delay a decision making or some other helps in making quick decisions.
The mutual co-ordination among them is an important need for a business. The relationship among the people working in various levels of the organization should be cordial. The human resource in any organization must have characteristics like skills, quality, high morale, commitment towards the work attitude, etc.
The involvement and initiative of the people in an organization at different levels may vary from organization to organization. The organizational culture and overall environment have bearing on them. It helps in raising the finance, making joint ventures, other alliances, expansions and acquisitions, entering sale and purchase contracts, launching new products, etc. Brand equity also helps the company in same way.
The proper working of the assets is indeed for free flow of working of the company. The factors are uncontrollable by the business. There are two types of external environment. These include the suppliers, marketing intermediaries, competitors, customers and the public. The micro environmental factors are more intimately linked with the company than the macro factors.
The micro forces need not necessarily affect all the firms in a particular industry in the same way. Some of the micro factors may be particular to a firm. When the competing firms in an industry have the same micro elements, the relative success of the firms depends on their relative effectiveness in dealing with these elements.
Following are the factors micro environment: i Suppliers: An important force in the micro environment of a company is the suppliers, i. A business exists only because of its customers. The choice of customer segments should be made by considering a number of factors including the relative profitability, dependability, and stability of demand, growth prospects and the extent of competition.
The competition that satisfies a particular category desire then it is called generic competition.. The marketing intermediaries are vital links between the company and the final consumers. Public include media and citizens. Growth of consumer public is an important development affecting business. Macro Environment: Macro environment is also known as General environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors.
When the macro factors become uncontrollable, the success of company depends upon its adaptability to the environment. Some of the macro environment factors are discussed below: i Economic Environment: Economic environment refers to the aggregate of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc. The successful businessman visualizes the external factors affecting the business; anticipating prospective market situations and makes suitable to get the maximum with minimize cost.
Sociological factors such as costs structure, customs and conventions, mobility of labour etc. These factors determine the work culture and mobility of labour, work groups etc.
Changes in the demographic environment can result in significant opportunities and threats presenting themselves to the organization.
It may include the exact rulings and decision of the courts. These affect the business and its managers to a great extent. The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. Technological environment influences the business in terms of investment in technology, consistent application of technology and the effects of technology on markets.
To avoid shortages in raw materials, organizations can use renewable resources such as forests and alternatives such as solar and wind energy for nonrenewable resources such as oil and coal.
Organizations can limit their energy usage by increasing efficiency. They must acquire the resources and information needed to function; they must deliver products or services that are valued by customers.
Organizations can devise a number of responses for managing environmental interfaces, from internal administrative responses, such as creating special units to scan the environment, to external collective responses, such as forming strategic alliances with other organizations.
Environment affects the organization followed by the generation of a response from the organization, thus completing the cycle. It implies that the effect of environment on the organization cannot be fully understood without evaluating the organizational response. The change in the business environment brings both opportunities and threats for the organization. The solution lies in environmental scanning which refers to the process of monitoring and evaluating the business environment.
It helps in adjusting the business tactics in case of a change in the business environment. The macro forces have a wide scope and tend to influence the micro environment of the business; therefore, it seems advisable to focus the research on the role of macro environmental forces to reduce the accumulation of irrelevant data. Organizational environments are everything beyond the boundaries of organizations that can directly or indirectly affect performance and outcomes.
That includes external agents that directly affect the organization, such as suppliers, customers, regulators, and competitors, as well as indirect influences in the wider cultural, political, and economic context. The general environment consists of all external forces that can influence an organization.
Each of these forces can affect the organization in both direct and indirect ways. For example, economic recessions can directly impact demand for a company's product.
The general environment also can affect organizations indirectly by virtue of the linkages between external agents. For example, an organization may have trouble obtaining raw materials from a supplier because the supplier is embroiled in a labor dispute with a national union, a lawsuit with a government regulator, or a boycott by a consumer group.
Thus, components of the general environment can affect the organization without having any direct connection to it. The task environment consists of the specific individuals and organizations that interact directly with the organization and can affect goal achievement: customers, suppliers, competitors, producers of substitute products or services, labor unions, financial institutions, and so on.
These direct relationships are the medium through which organizations and environments mutually influence one another. Customers, for example, can demand changes in the organization's products, and the organization can try to influence customers' tastes and desires through advertising.
Responsibility towards owners: The primary responsibilities of management is to assure a fair and reasonable rate of return on capital and fair return on investment can be determined on the basis of difference in the risks of business in different fields of activity. With the growth of business the shareholders can also expect appreciation in the value of their capital. Responsibility towards employees: Management responsibility towards employees relate to the fair wages and salaries, satisfactory work environment, labour management relations and employee welfare.
Fair wages should be fixed in the light of labor productivity, the prevailing wage rates in the same or neighboring areas and relative importance of jobs. Employees are expected to build up and maintain harmonious relationships between superior and subordinates. Another aspect of responsibility towards employees is the provision of welfare amenities like safety and security of working conditions, medical facilities, and housing, canteen, leave and retirement benefits.
Responsibility towards consumers: In a competitive market, serving consumers is supposed to be a prime concern of management.
In the event of shortage of supply there is no automatic correction. Besides consumers are often victims of unfair trade practices and unethical conduct of business. Consumer interests are thus protected to some extent with laws and pressure of organized consumer groups. Management should anticipate these developments, satisfy consumer needs and protect consumer interests. Goods must be of appropriate standard and quality and be available in adequate quantities at reasonable prices.
Management should avoid resorting to hoarding or creating artificial scarcity as well as false and misleading advertisements. Business activities must also confirm to the economic and social policies of the government.
Responsibility towards the community and society: The socially responsible role of management in relation to the community are expected to be revealed by its policies with respect to the employment of handicapped persons, and weaker sections of the community, environmental protection, pollution control, setting up industries in backward areas, and providing relief to the victims of natural calamities etc.
If the management does not react to changes in social demands, the society will either force them to do so through laws or will not permit the enterprise to survive. Therefore the long term interests of business are best served when management assume social responsibilities.
For long term success it matters a great deal if the firm has a favorable image in the public mind. Every business enterprise is an organ of society and its activities have impact on the social scene.
Therefore, it is important for management to consider whether their policies and actions are likely to promote the public good, advances the basic values of society, and constitute to its stability, strength and harmony. Besides taking care of the financial interest of owners, managers of business firms must also take into account the interest of various other groups such as employees, consumers, the government and the community as a whole.
Businesses are either part of the solution or part of the problem. Business can enhance its long-run profitability by making an investment in society today. Inefficiencies can be expected if managers divert their attention from the pursuit of economic goals. There is no need to hand them over more power. So responsibility towards society is no longer a matter of choice for businessmen, but it is requisite and it is the foremost responsibility of the Manager to ensure that social responsibilities are met.
Explain the following factors of Micro Environment: a. Suppliers b. Customers c. Public 2. Explain the following factors of Macro Environment: a. Economic Environment b. Ecosystem Environment d. Legal Environment 3. Explain the following terms in four to five sentences: a.
Business Environment b. Micro Environment c. Macro Environment d. Social Responsibility 4. Ethics- Consists of moral principles governing the right and wrongs of human conduct: Is about the principles of right and wrong accepted by individuals or social groups A code of behavior considered morally correct Code of moral principles that guide the action of people and groups Ethical behavior is doing what is morally right. There are various issues relating to ethics and corporate ethics in the corporate world.
We shall first discuss those in brief the two models, which are termed as models of ethical decision making. They are as follows: 1 Joseph son institute Ethical decision making model: This model is widely used in taking ethical decisions.
It consists of 3 Steps: All decisions must take into account and reflect a concern for the interest and wellbeing of all stakeholders. Ethical values and principles always take precedence over non ethical ones. It's proper to violate an ethical principle only when it's clearly necessary to advance another true ethical principle, which according to the decision maker's conscience will produce the greatest balance of good in the long run.
As applied to business firms, ethics is the study of good and evil, Right and wrong and just and unjust actions of businessmen. If protecting others from any harm is considered to be ethical, then a company which recalls defective or harmful products from the market is an ethical company. To be considered ethical, business must draw their ideas about "What is desirable Behavior "from the same source as any body else would draw.
People who are in business are bound by the same ethical principles that apply to others. In common parlance the term "corporate ethics" refers to the systems of principles rules of conduct applied to business. Business today far from being a profit making institution is largely looked upon as a social institution pursuing a social mission and having a far reaching influence on the way people live and work together. Modern corporate do not operate in isolation.
The resource they make use of are not limited to those of the proprietors and the impact of their operation is felt also by many a people who are in no way connected with the business. The shareholders, the suppliers of resources, the consumers, the employees, the local community and the society at large are affected by the way an enterprise functions. The successful functioning of a firm requires social sanction. No business can exist without the acceptance and sanction of the society in which it carries out its activities.
The organization is so dependent on its social environment that it's very existence, survival and growth depends on its acceptance and approval by the society. Given the mutual relationship between the business and the society, Business cannot and should not be allowed to conduct itself in a manner that may be detrimental to the interest of the society. How the business should conduct its multidimensional activities in order to pursue its social obligations in a transparent manner forms the subject matter of corporate ethics.
Ethics matters because it makes good business sense to 'do the right thing'. Additionally good corporate Ethics result in: Attracting better talent Retaining Employees. A positive effect on corporate reputation.
The people of a country expect their government to lead in a way that will ultimately create the best environment for them to live in. The government has a responsibility to do what is right for its people, regardless if it benefits them or not. Government should act ethically towards issues such as the environment, economics, and culture. This way government would be able to have a positive effect on society.
Social responsibility is not necessary, but it is an intelligent thing to do. It shows the people that the government actually does care by taking the steps to benefit the people in some way, as opposed to only trying to benefit itself. Government social responsibility is important because the State is a country of the people. A few men in government run things most of the time, but when citizens unite under a common cause the country is run by the people. Ultimately, the people have the final say.
They elect the representatives. In order to keep themselves happy, the government must keep the people happy. There are many ways to do that, but none more important than changing the environment that the people live in for the better.
This is because it helps preserve the Earth, it saves the people and the government money, and it makes the world a healthier place to live. Social responsibility is a necessary thing for keeping the balance.
It maintains a friendly and amiable relationship between a government and the people that support it. Business environment consist of all those factors that have a bearing on the business.
It is dynamic, uncertain and relevant. Successful enterprises are those which can use the environment for their advantage. Environment is divided into internal and external environment. Internal environment is within the organization and therefore it is controllable.
External environment is out of the reach of the organization. Organizations need to adapt to external environment. Further external environment is divided into micro and macro environment. To a certain extend organizations can easily adapt to micro environment, that cannot be said of macro environment. Business does not operate in vacuum. It has to interact with the community, the shareholder, the customers, the employees and the government.
Towards all of them business has responsibilities. So responsibility towards various sections of the society is no longer a matter of choice for businessmen, but it is requisite and it is the foremost responsibility of the Manager to ensure that social responsibilities are met. Business ethics are the moral values which govern business behavior and restrains companies from pursuing the interest of the shareholder at the expense of all other considerations.
It also results in: attracting and retaining better talent, retaining customer and developing corporate reputation. Understand the characteristics of planning. Know the types of plan. Discuss the limitations of Planning. Management process starts with planning of activities. Planning provides directions for activities. Planning is a continuous activity. In the words of George R. Planning is primary function: Management process starts with planning.
So planning is a primary function of management. Other functions of management i. Planning is done to achieve goals. First targets are set and then planning is done.
Planning is future oriented: Planning is always done for the future. The future can be short term, medium term or long term. It is a programme for future by which management tries to look ahead. Planning is a continuous activity: Planning is a continuous function of management. Managers are required to formulate, modify and withdraw the plans according to business environmental changes.
Planning is necessary as long as the business remains in existence. Planning is pervasive: Planning is pervasive in nature. It is required for all the business activities and by all the managers at all the levels. Planning is required not only in business organizations but also in non-business organizations.
Inter-dependent activity: Planning is inter-dependent activity. One departmental plans are dependent on other departmental plans. Every plan is linked with other plans. Planning is based on practical considerations. Proper thinking is required before finalizing a plan. The quality of plan depends upon mental qualities of managers. Planning requires past, present and future analysis: Planning requires proper analysis of past, present and future.
Managers need to check past performance, present targets and future possibilities while planning. Basis of control: Planning provides base for control. The actual performance is compared against planned targets. Plans provide basis for comparison of actual and standard performance. Flexible in nature: Planning is always flexible. It keeps on changing as per situation changes.
As business environment is dynamic in nature, planning needs to be flexible in nature. Plans should match with environmental changes. Analysis of internal environment: Planning process starts with analysis of internal environment. Internal environment includes all the variables from the organization like manpower, plans and policies of top management, machines, materials etc.
Planner needs to study these variables properly to find out strengths and weaknesses of the organization. Analysis of external environment: After the analysis of internal environment, planner needs to study factors from external environment. External environment includes all those factors which are outside the organization like government policies, competition, internationalfactors, technological changes, consumer behavior etc.
This analysis is required to find out possible threats and opportunities for the organization. Establishment of objectives: After the analysis of environment is over, planner should establish the objectivesto be achieved. Objectives should be well defined to provide guidelines for planning. Establishment of planning premises: Planning premises are the assumptions which provide a framework within which plans operate. Appropriate assumptions have to be made regarding internal and external environment.
Framing alternative plans: Planner should always frame alternative plans instead of only one final plan. For eg. Evaluation of alternative plans: All the alternative plans should be evaluated by the planner. Evaluation should be in terms of cost and returns possible from that particular plan. Selection of the best plan: Once the plans are evaluated, planner should select the best plan out of all the alternatives.
The plan which gives maximum returns at minimum cost should be selected as the best plan. Formulation of derivative plans: Derivative plans are sub-plans which are required for operational purpose. Programmes, policies, schedules, budgets etc. Implementation: With the help of derivative plans prepared, final plan should be implemented. Plan should be communicated to all those people in the organization who are required to implement them.
Follow up: Periodic follow up is required to find out whether the actual performance is matching with planned targets. If necessary certain changes can be done in that plan. Planning premises thus are certain ideas or assumptions which one makes while preparing a plan. For example, if marketing planning has to be done foe next year then certain assumptions have to be made like finished goods supple will be normal, the demand is likely to be more or less, the cost of selling and distribution would increase marginally and so on.
While deciding the planning premises, one has to be very careful that these premises are realistic in nature. It should be more practical so that the plans can be made more effective. Planning premises exist both within and outside the company i. Planning premises may be divided into tangible and intangible ones. Planning premises may be fully controllable, partly controllable or absolutely uncontrollable. Planning premises may be constant or variable in nature.
Internal environment b. External environment c. Planning premises 2. Write a note on planning premises. Draw the chart showing stages of planning process. These all plans are classified as follows: I Standing plans: These plans are prepared for repeat use. They are used again and again. Therefore they are referred as repeat use plans. II Single use plans: These plans are prepared to achieve specific objectives.
These are used only once. Once the purpose is served, plan becomes obsolete. Mission: Every organization should have mission. Mission is the statement which reflects purpose, philosophy and vision of the organization. Mission guides the overall working of the enterprise. Objectives: Objectives are the goals or targets what management wants to achieve. Objectives are drawn from mission.
These are ends towards which all the actions are directed. Strategies: Strategy is a broad long term plan. It provides guideline for achieving the objectives of the organization. Policies provide a framework within which the organization has to operate.
It defines boundaries for decision making. Procedures: Procedure is a series of activities required to be performed for attaining objectives. It is the sequence of works to be done. Methods: Method describes the way of performing particular work. By following a proper method, procedure is completed.
Rules: Rules lay down specific actions to be done. It describes what is to be done and what should not be done. Programme: Programme is a plan which is designed to implement the policies and accomplish objectives.
It is a combination of goals, policies, procedures, rules to carry out activities. In this Ebook, finally cut through the math and specialized methods for time series forecasting.
Using clear explanations, standard Python libraries and step-by-step tutorials you will discover how to load and prepare data, evaluate model skill, and implement forecasting models for time series data. It considers a wide range of multiple time series models and methods. The models include vector autoregressive, vector autoregressive moving average, cointegrated, and periodic processes as well as state space and dynamic simultaneous equations models.
Least squares, maximum likelihood, and Bayesian methods are considered for estimating these models. Different procedures for model selection or specification are treated and a range of tests and criteria for evaluating the adequacy of a chosen model are introduced. The choice of point and interval forecasts is considered and impulse response analysis, dynamic multipliers as well as innovation accounting are presented as tools for structural analysis within the multiple time series context.
This book is accessible to graduate students in business and economics. In addition, multiple time series courses in other fields such as statistics and engineering may be based on this book. Applied researchers involved in analyzing multiple time series may benefit from the book as it provides the background and tools for their task. It enables the reader to perform his or her analyses in a gap to the difficult technical literature on the topic. Score: 4. It provides a detailed introduction to the main steps of analyzing multiple time series, model specification, estimation, model checking, and for using the models for economic analysis and forecasting.
The book bridges the gap to the difficult technical literature on the topic. It is accessible to graduate students in business and economics. In addition, multiple time series courses in other fields such as statistics and engineering may be based on it. The book covers a wide range of topics, including ARIMA models, forecasting methods, spectral analysis, linear systems, state-space models, the Kalman filters, nonlinear models, volatility models, and multivariate models.
It also presents many examples and implementations of time series models and methods to reflect advances in the field. Highlights of the seventh edition: A new chapter on univariate volatility models A revised chapter on linear time series models A new section on multivariate volatility models A new section on regime switching models Many new worked examples, with R code integrated into the text The book can be used as a textbook for an undergraduate or a graduate level time series course in statistics.
The book does not assume many prerequisites in probability and statistics, so it is also intended for students and data analysts in engineering, economics, and finance. In this book, Becketti introduces time-series techniques--from simple to complex--and explains how to implement them using Stata.
The many worked examples, concise explanations that focus on intuition, and useful tips based on the author's experience make the book insightful for students, academic researchers, and practitioners in industry and government. Becketti is a financial industry veteran with decades of experience in academics, government, and private industry. He was also a developer of Stata in its infancy and has been a regular Stata user since its inception. He wrote many of the first time-series commands in Stata.
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