June-July 2009 PART A 1. a. Define management? Art of getting things done through people. b.

b. With a neat sketch explain the functions of management. planning organizing actuating controlling innovation representation POSDCORB explain. c. Briefly explain the concept of modern management approaches. Quantitative approach Behavioral approach System approach Contingency approach 2. a. Give any functions. b. Briefly (02 Marks) (12 Marks)

(06 Marks)

four concrete reasons for the paramount importance of the planning (04 Marks) Planning provides direction Planning minimizes uncertainty Planning ensures co-ordination Planning encourages innovation and creativity (06 Marks)

explain the steps involved in planning. establishing verifiable goals or set of goals o be achieved establishing planning premises deciding the planning period finding alternative course of action evaluating & selecting a course of action developing derivative plans

c. What are the different types of decisions? Explain briefly. programmed & non-programmed major &minor routine & strategic individual & group simple & complex 3. a. Briefly explain the principles of organization. principle of unity of organization principle of unity & responsibility principle of span of control principle of dividing 7 groping of activities principle of delegation principle of co-ordination principle of communication principle of line & staff relationship principle of balance principle of flexibility principle of simplicity principle of productivity b. Write any four advantages of proper & efficient staffing.

(10 Marks)

(10 Marks)

(04 Marks)

Any four of them c. Write short note on the following : i) MBO Marks) ii)MBE iii) span of control(06

MBO : Superior-subordinate participation: MBO requires the superior and the subordinate to recognize that the development of objectives is a joint project/activity. They must be jointly agree and write out their duties and areas of responsibility in their respective jobs. Joint goal-setting: MBO emphasizes joint goal-setting that are tangible, verifiable and measurable. The subordinate in consultation with his superior sets his own short-term goals. However, it is examined both by the superior and the subordinate that goals are realistic and attainable. In brief, the goals are to be decided jointly through the participation of all. Joint decision on methodology: MBO focuses special attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). The superior and the subordinate mutually devise methodology to be followed in the attainment of objectives. They also mutually set standards and establish norms for evaluating performance. Makes way to attain maximum result: MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focussing on attainable goals. It permits lot of freedom to subordinate to make creative decisions on his own. This motivates subordinates and ensures good performance from them. Support from superior: When the subordinate makes efforts to achieve his goals, superior's helping hand is always available. The superior acts as a coach and provides his valuable advice and guidance to the subordinate. This is how MBO facilitates effective communication between superior and subordinates for achieving the objectives/targets set. Management by objective is a method whereby managers and employees define objectives for every department, project, and person and use them to control subsequent performance. MBO involves four steps: setting objectives, developing action plans, reviewing progress, and appraising overall performance. MBE : Perhaps the most fundamental of all control techniques is management by exception (MBE), a control principle which suggests that managers should be informed of situation only if control data show a significant deviation from standards. The use of MBE results in two advantages for organizations: First, it means a better use of the manager's time. Particularly, use of MBE with computers, helps managers save time by bringing to their attention only those conditions that appear to need managerial action. Second, MBE encourages workers to exercise judgment when doing their work. As long as they are within the guidelines that have been established, they can continue working as they see fit. Therefore, management by exception is both a motivational and control techniques

Span of control : The number of employees who can be effectively and efficiently supervised by a manager. Width 4. of span is affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Physical proximity of subordinates Standardization of tasks (06 Marks)

a. With a neat sketch briefly explain Maslows theory of motivation.

OR Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs Self-Actualization Self-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have motivators such as: Truth Justice Wisdom Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization. Esteem Needs After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators. Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect. External esteem needs are those such as reputation and recognition. Some examples of esteem needs are: Recognition (external motivator) Attention (external motivator) Social Status (external motivator) Accomplishment (internal motivator) Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem needs: the need for aesthetics and knowledge. Social Needs Once a person has met the lower level physiological and safety needs, higher level motivators awaken. The first level of higher level needs are social needs. Social needs are those related to interaction with others and may include: Friendship Belonging to a group

Giving and receiving love Safety Needs

Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by: Living in a safe area Medical insurance Job security Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved. Physiological Needs Physiological needs are those required to sustain life, such as:
Air Water Food Sleep

According to this theory, if these fundamental needs are not satisfied, then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence. b. Define & explain the purpose of communication. c. Briefly explain the essentials of a sound control system. (08 Marks) (06 Marks)

PART B 5. a. Who is an entrepreneur ? b. Briefly explain the characteristics of an entrepreneur. o Effective communication o Negotiation skills o Risk, resourceful , responsible o Emotionally stable, ethical o Problem solving, patient, passionate o Realistic o Endurance, energetic o Networking ability o Excellence in economics o Real innovator c. Explain in detail various types and functions of entrepreneur. Marks) innovative imitative fabian drone Based on types of business Business ER Trading ER Industrial ER Corporate ER Agricultural ER Retail ER Service ER Based on use of technology Tech ER Non tech ER Professional ER High tech ER Low tech ER d. Distinguish between Entrepreneur & Intrapreneur. Difference between an entrepreneur and an intrapreneur: An entrepreneur takes substantial risk in being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur is an individual employed by an organization for remuneration, which is based on the financial success of the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his own business. (02 Marks) (06 Marks)

(08

(04 Marks)

Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business.

6.

a. What is a small scale industry? (02 Marks) An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million. b. Briefly explain the rationale of small scale industry development in India. (08 Marks) c. List out various objectives of developing small enterprises in India. d. Explain briefly the government support for SSI during 5 year plan. (06 Marks) (04 Marks) (08 Marks) (12 Marks)

7.

a. With a neat sketch explain the activities of NSIC. b. Write short notes on the following : i) SISI ii) SIDBI iii) DIC iv) TECKSOK

Objectives OF SIDBI
The primary function and objectives of the Directorate of Industries are supervision and control of District Level functionaries, i.e., the District Industries Centres in implementation of the various schemes and programmes of the Department. The basic objective of the Department is also to act as the Nodal Promotional Agency in the development of industries and industries activities in the State as a whole. A n d t o p r o m o t e a n d a c h i e v e t h e above - me nt ione d pur pose , the De part me nt or ganise s and implements various programmes and schemes to provide the basic infrastructural facilities for the creation of industrial awareness and atmosphere viz. ,Investment Awareness Programmes.

Plans of SIDBI
1. Development of Industrial Areas and Estates: With the passing of time, there has been a steep rise in scarcity of suitable land for setting up of industrial projects. Therefore, to meet the above demand clutched with other basic Industrial Infrastructures, like road, water, power etc.,the Department have acquired suitable plots of land almost in every district of the state and developed them into industrial areas and estates. And for efficient maintenance of these Industrial Areas and Estates, the Department has a specific annual plan scheme known as Development of Industrial Areas and Estates. 2.Man Power General Schemes : In order to create skill technical and managerial entrepreneurs the Department, through the District Industries Centres (D.I.Cs.) and State Financial and Industrial Development Corporation, i.e., Meghalaya Industrial Development Corporation(M.I.D.C.) sponsors local youths with suitable stipend to undergo training studies so that they meet either the local demand or set up Industries of their own as self-employment ventures after successful completion of their courses. These schemes are: Manpower Training Scheme and Entrepreneurial Development Programme THE DISTRICT INDUSTRIES CENTRE PROGRAMME(DIC)

This programme of District Industries Centre was launched at the National level on the 1st May, 1978 to provide a District Level Set up for the promotion & development of Small Scale, Village and Cottage Sectors of industries and to provide all services and support to this Decentralised Sector of Industries, under SINGLE ROOF as far as practicable at PreInvestment, Investment and PostInvestment Stages. 2.2. The main thrust of this Programme is on development of such industrial Units in rural areas and small towns of the country and would create large employment opportunities in these areas. 2.3. Initially, the District Industries Centre, at Nongpoh was started in March 1994, to look after the Industrial Programme for the Ri- Bhoi District . 2.4. The duties of the DIC. It acts as a single window interacting agency with the entrepreneur at the district level, Services and supports to Small entrepreneurs are provided through it. It is an mplementing arm of the Central and State Government of the various schemes and programmes.

Functions of TESCOK
Technical Consultancy Services Organisation of Karnataka (TECSOK), is a multidisciplinary technical, industrial and management consultancy organization set up.It was established in the year 1976 by the Government of Karnataka. The primary objective of founding TECSOK was to provide reliable consultancy support for entrepreneurs to start up self employment ventures in Karnataka, India. TECSOK is a multidisciplinary management consultancy organization promoted by the Government of Karnataka to provide reliable consultancy services in India. TECSOK has been excelling its expertise in a wide range of services. The package of services includes feasibility studies, market research, valuation of assets, environment impact studies, energy management and audit, management studies like corporate plan, reorganization and restructuring of enterprises, man power planning, budgetary control systems, mergers and acquisitions, investment opportunities, technology transfers, diagnostic studies and also designing and organizing training programmes in all related areas. Of late, TECSOK is also concentrating on studies relating to Cleaner Production technologies and methods.

8. a. What are the criteria for selecting a particular project, an entrepreneur should
consider? b. Briefly explain the importance of project identification c. Give the meaning of project appraisal. d. What are the steps followed in project appraisal? Marks) (06 Marks) (06 Marks) (02 Marks) (06

May-June 2010 PART A 1. a. Define management? What are the nature & characteristics of management? Explain its functions. (08 Marks) Art of getting things done through people. b. Is management science, arts r profession? Explain. (05 Marks) c. What are the modern management approaches? Explain briefly the contingency approach of management. (06 Marks) 2. a. Give What is planning? Explain the steps involved in planning. Give the importance & purpose of planning process. Marks) Planning is an intellectual process (06

Steps

in planning Is a continuous process Must be flexible An all pervasive function Is rational Purpose Minimizes risk Leads to success Focus attention Facilitates control b. Briefly explain the types of planning. (04 Marks) objectives strategies single use standing c. Explain the process & steps involved in decision making. (06 Marks) Recognizing the problem Deciding the priorities Diagnosing the problem Developing the alternative course of action Measuring &comparing the consequences of alternative solutions Converting the decision into effective action & follow-up of action d. Explain hierarchy of plans 3. . (04 Marks)

a. What are the advantages & disadvantages of line & staff organization? (8 Marks) b. Explain the following : i. types of departmentation committees ii. Principles of

(04 Marks) Departmentalization by Type Functional : Grouping jobs by functions performed Product : Grouping jobs by product line Geographic : Grouping jobs on the basis of territory or geography Process :Grouping jobs on the basis of product or customer flow Customer : Grouping jobs by type of customer and needs c. What are : i) MBO ii)MBE explain. d. What is recruitment ? Explain various sources of recruitment. Marks) 4. (04 Marks) (04

a. Give principles of directing. Differentiate between autocratic, participative and free rein style of leadership. (07 Marks) b. Write about Maslows theory of motivation. Explain MC Gregors theory X and theory Y. (07 Marks) Self-Actualization Esteem Needs Social Needs Safety Needs Physiological Needs

McGregor concluded that the traits Theory X managers displayed were those of direction and control associated with the exercise of authority, while the traits Theory Y managers displayed were facilitation and integration. McGregor's theory had a remarkable impact on management and even today managers are sometimes referred to as X or Y managers.

cGregor and Maslow's hierarchy Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation is the main priority in the workplace in order to maximize output. In relations to Theory Y the organization is trying to create the most symbiotic relationship between the managers and workers which relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needs to promote the optimum workplace through morality, creativity, spontaneity, problem solving, lack of prejudice, and acceptance of facts. It can relate to Esteem when the manager is trying to promote self esteem, confidence, achievement, respect of others, and respect by others. c. State & explain the steps in controlling. Explain the methods of establishing sound controlling. (06 Marks) The Organizational Control Process The control process involves carefully collecting information about a system, process, person, or group of people in order to make necessary decisions about each. Managers set up control systems that consist of four key steps:

1.

Establish standards to measure performance. Within an organization's

overall strategic plan, managers define goals for organizational departments in specific, operational terms that include standards of performance to compare with organizational activities.

2.

Measure actual performance. Most organizations prepare formal reports

of performance measurements that managers review regularly. These measurements should be related to the standards set in the first step of the control process. For example, if sales growth is a target, the organization should have a means of gathering and reporting sales data.

3.

Compare performance with the standards. This step compares actual

activities to performance standards. When managers read computer reports or walk through their plants, they identify whether actual performance meets exceeds, or falls short of standards.

4. Take corrective actions. When performance deviates from standards, managers

must determine what changes, if any, are necessary and how to apply them. In the productivity and quality-centered environment, workers and managers are often empowered to evaluate their own work. After the evaluator determines the cause or causes of deviation, he or she can take the fourth stepcorrective action. The most effective course may be prescribed by policies or may be best left up to employees' judgment and initiative. These steps must be repeated periodically until the organizational goal is achieved. PART B 5 a. What is an entrepreneurship ? Explain its model & types of entrepreneurs.(07 Marks) Entrepreneurship is the act of being an entrepreneur or "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. Entrepreneurship Model

Types of entrepreneurs innovative imitative fabian drone b. Differentiate between Entrepreneur & Intrapreneur & manager. Marks) Difference between an entrepreneur and an intrapreneur: An entrepreneur takes substantial risk in being the owner and operator of a business with expectations of financial profit and other rewards that the business may generate. On the contrary, an intrapreneur is an individual employed by an organization for remuneration, (07

which is based on the financial success of the unit he is responsible for. Intrapreneurs share the same traits as entrepreneurs such as conviction, zeal and insight. As the intrapreneur continues to expresses his ideas vigorously, it will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds. If not, he is likely to leave the organization and set up his own business. Example of intrapreneurship: A classic case of intrapreneurs is that of the founders of Adobe, John Warnock and Charles Geschke. They both were employees of Xerox. As employees of Xerox, they were frustrated because their new product ideas were not encouraged. They quit Xerox in the early 1980s to begin their own business. Currently, Adobe has an annual turnover of over $3 billion. Features of Intrapreneurship: Entrepreneurship involves innovation, the ability to take risk and creativity. An entrepreneur will be able to look at things in novel ways. He will have the capacity to take calculated risk and to accept failure as a learning point. An intrapreneur thinks like an entrepreneur looking out for opportunities, which profit the organization. Intrapreneurship is a novel way of making organizations more profitable where imaginative employees entertain entrepreneurial thoughts. It is in the interest of an organization to encourage intrapreneurs. Intrapreneurship is a significant method for companies to reinvent themselves and improve performance. c. What are the barriers of entrepreneurship ? Explain the role of entrepreneur in economic development. (06 Marks)

More than 90 percent of entrepreneurs fail. The top 3 barriers to entrepreneurship are the following: 1. Procrastination: Procrastination they say is the thief of time. There is no tomorrow because it never comes. What you do today will affect how your tomorrow will be. Out of laziness, resistance and complacency entrepreneurs are forced to shift activities. If you want to draw a business plan it must be now; if you want to write a proposal, it must be now; if you must register your business, it must be now; if you must quit a job and start your own business it must be now. A lot of entrepreneurs have great vision and dreams but a lot are in the someday island. They hope to achieve them someday. They never get there in actual fact. Write the dream on paper, figure out areas of strength and areas of resistance, set time against your dreams. When you have done this, employ your passion and go get it.

2. Tying your dreams to age: Age is nothing but a number. Whatever you want to do has nothing to do with your age. Its all about attitude, level of exposure, knowledge and the self-will. The fact that the CEO of a company achieved success at the age of 50 does not mean entrepreneurial success is tied to age 50. Today there are a lot of young entrepreneurs who have become billionaires. Mark Zuckerberg of facebook.com is a typical example; a billionaire at age 24 as at 2010. Dont allow your age to limit you in the kinds of dreams you have and your pursuit for achievement. Dream as wide as you can, dont be deterred by how insufficient you may be. As you step out to achieve your goals, all you need shall fall into place. Following the status quo: There is no perfect system. What worked out ten years ago has no place today. The world is fast-changing and so is the business environment. The Internet has made the world smaller than was thought decades ago. Businesses are using the power of the Internet to reach out to their clients. As an entrepreneur, consider the use of social media platforms like Facebook, Twitter, and Myspace to reach out to your prospective clients at no cost. Flow with the time and make the necessary adjustment to be able to enjoy the benefits that comes with the change.
Role of entrepreneur in economic development.
The most important factor for economic development of a country is its industrialization. In the process of industrialization, emphasis is given to the three major groups of industries; large-scale industries, small-scale industries and cottage industries. development is vitally linked with various programmes and policies designed to remove poverty, unemployment and backwardness of the rural people. small-scale industrial sector plays a dominant role in the economic development of both developed and developing countries. In developing countries cottage and small-scale industries are especially important in context of employment opportunities, equitable distribution of national income, balanced regional growth and development of rural and semi urban areas. They provide immediate large-scale employment, offer a method of ensuring a more equitable distribution of the national income and facilitate effective mobilization of resources of capital and skill which might otherwise remain unutilized. Small scale industries, including traditional cottage and village industries and modern small enterprises have been given an important place in Indias economic planning for ideological and economic reasons. Our late Prime Minister Mrs. Indira Gandhi once remarked, Small scale industries offer many opportunities; besides adding to production, they broaden the industrial base. They enable the process of modernization as well as entrepreneurship to spread to more regions and layers of society. Father of our Nation, Mahatma Gandhiji had strongly advocated the development of Indian villages by making them financially viable through small and village industrial units. The small scale and cottage industrial sector have found their economic rationale in Mahalanobis model of economic development, which was the basis for Indias second and subsequent Five Year Plans. This sector has emerged as a vibrant and dynamic sector of Indian economy, which contributes nearly 40 percent of the total industrial production and over 34 percent of

the national exports by providing employment to over 250lakh persons. This sector enjoys the pride of being second largest employer in the country and offers a wide variety of products. 6. a. Define small scale industry, ancillary industry & tiny industry with at least 4 advantages of each. (08 Marks) Small Scale Industrial Undertakings The following requirements are to be complied with by an industrial undertaking to be graded as Small Scale Industrial undertaking w.e.f. 21.12.1999 An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase does not exceed Rs 10 million. (Subject to the condition that the unit is not owned, controlled or subsidiary of any other industrial undertaking) Ancillary Industrial Undertakings The following requirements are to be complied with by an industrial undertaking for being regarded as ancillary industrial undertaking: An industrial undertaking which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates, or the rendering of services and the undertaking supplies or renders or proposes to supply or render not less than 50 per cent of its production or services, as the case may be, to one or more other industrial undertakings and whose investment in fixed assets in plant and machinery whether held on ownership terms or on lease or on hire-purchase, does not exceed Rs 10 million. Tiny Enterprises Investment limit in plant and machinery in respect of tiny enterprises is Rs 2.5 million irrespective of location of the unit. b. Explain the objective of SSIs and its role in economic development. (06 Marks) The most important factor for economic development of a country is its industrialization. In the process of industrialization, emphasis is given to the three major groups of industries; large-scale industries, small-scale industries and cottage industries. development is vitally linked with various programmes and policies designed to remove poverty, unemployment and backwardness of the rural people. small-scale industrial sector plays a dominant role in the economic development of both developed and developing countries. In developing countries cottage and small-scale industries are especially important in context of employment opportunities, equitable distribution of national income, balanced regional growth and development of rural and semi urban areas. They provide immediate large-scale employment, offer a method of ensuring a more equitable distribution of the national income and facilitate effective mobilization of resources of capital and skill which might otherwise remain unutilized. Small scale industries, including traditional cottage and village industries and modern small enterprises have been given an important place in Indias economic planning for ideological and economic reasons. Our late Prime Minister Mrs. Indira Gandhi once remarked, Small scale industries offer many opportunities; besides adding to production, they broaden the industrial base. They enable the process of modernization as well as entrepreneurship to spread to more regions and layers of society. Father of our Nation,

Mahatma Gandhiji had strongly advocated the development of Indian villages by making them financially viable through small and village industrial units. The small scale and cottage industrial sector have found their economic rationale in Mahalanobis model of economic development, which was the basis for Indias second and subsequent Five Year Plans. This sector has emerged as a vibrant and dynamic sector of Indian economy, which contributes nearly 40 percent of the total industrial production and over 34 percent of the national exports by providing employment to over 250lakh persons. This sector enjoys the pride of being second largest employer in the country and offers a wide variety of products. c. Explain GATT & WTO and its impact on trade. (06 Marks)

7. a. Explain the aims & objectives of KIADB & KSSIDC. (08 Marks) Objective functions of KIADB Karnataka Industrial Areas Development Board (KIADB) is a w h o l l y o w n e d infrastructure agency of Government of Karnataka, set up under Karnataka Industrial Areas Development Act of 1966.This Board functions as per statutory provisions, rules and regulations enacted there under. The B o a r d comprises of senior government officers in their ex-officio capacities. T h e B o a r d o f members meet regularly to take decisions and monitor the functions. KIADB holds pride in being the first government organisation in Karnataka to obtain ISO 9001 certification in the year 1997.Aims and Objectives : Promote rapid and orderly development of industries in the state. Assist in implementation of policies of government within the purview of KIAD Act. Facilitate for establishing infrastructure projects. Function on corporate lines, with No Profit No Loss policy. Functions : Acquire land and form industrial areas. Provide all infrastructure to such industrial areas. Acquire land for Single Unit Complexes. Acquire land for Government agencies for their schemes and infrastructure projects Karnataka State Small Industries Development Corporation Limited.(KSSIDCL) The programme of establishment of industrial estates, which has been carried out by the State Government involved in construction of industrial sheds of various dimensions and providing them with essential amenities such a s r o a d s , w a t e r s u p p l y , s e w e r a g e l i n e a n d electricity. The maintenance and upkeep of the sheds also became a part of the responsibility of the Corporation. Besides constructing and letting out the industrial sheds, developed plots were also offered to the entrepreneurs to put up their own factory sheds. The company also established exclusive and prominent ancillary industrial estates in the vicinities of large and medium scale b. Explain the following : i) NSIC ii) KSFC iii) DIC single window agency (12 Marks)

The National Small Industries Corporation Ltd (NSIC) was set up in 1955 as a central government undertaking, the main aim of which is to fulfill the requirement of machinery and equipment for the development of the small entrepreneurs. It is observed that the main constraint faced by the entrepreneurs is the dearth of investible funds to purchase machinery and equipment. Nonavailability of finance deprives many new entrepreneurs from availing entrepreneurial opportunities. NSIC is established to cater to this need of the entrepreneur. NSIC provides plant, machinery and equipment on a hire-purchase basis. Under its special scheme, entrepreneurs can procure indigenous as well as imported machinery.

Functions of National Small Industries Corporation Ltd. (NSIC)

The Head office of NSIC is situated at New Delhi with four regional offices at New Delhi, Mumbai, Kolkata and Chennai and eleven branch offices at important cities spread over the entire country. They provide a wide range of services mostly promotional in character to small scale industries. The important functions NSIC performs are grouped as under: 1. Provides financial assistance by way of hire-purchase scheme for purchase of machinery and equipment, required for the setting up industries. 2. Provides various equipments on lease basis. 3. Assists in marketing of the products of SSIs. 4. Helps in exporting the product of SSIs. 5. Provides training to workers of SSIs in various trades. 6. Helps in the development and upgradation of technology and modernisation of the industries. 7. Undertakes construction of industrial estates. 8. Purchases huge quantity of important raw materials and distribute the same to SSIs at reasonable rates. 9. Develops prototype machines and equipments to pass on to SSIs for commercial production. 10. Sets up small scale industries in other developing countries on turn-key basis.
Karnataka state finance corporation (KSFC) KSFC is one of the fast track Term Lending Financial Institutions in the country, with assistance to more than 1,59,225 units amounting to nearly 8,537 crore rupees over the last 49y e a r s i n t h e S t a t e o f K a r n a t a k a . I t i s o n e o f t h e r o b u s t a n d p r o f e s s i o n a l l y m a n a g e d S t a t e Financial Corporations. Infrastructure Related Activities : For establishing commercial complexes, residential apartments, development of residential layouts, group housing, industrial e s t a t e s , s o f t w a r e p a r k s , g o d o w n s , w a r e h o u s e s , a c q u i s i t i o n o f ready built offices/new office building, sales outlets/showrooms and other other infrastructure projects like flyovers, bridges etc and construction, development and maintenance of roads. Assistance To Hotels/Restaurants: For setting up of medium and star category standard hotels in the state capital, district ad taluk HQ, important tourist centres. The hotels should have boarding, lodging and restaurant facilities and building plan approved by local authorities. Assistance for mobile canteens is also available. Assistance To Tourism Related Activities: For Setting up of amusement parks, convention centres, travel and transport, tourist service agencies and restaurants. Assistance ToDoctors/NursingHomes/Hospitals/ Electro Medical Equipments: For setting up clinic, nursing homes, hospitals, and for acquiring electro- medical equipment Assistance To Entertainment Industry: For construction and purchase of cinema halls and multiplexes, production of short TV serials and feature films, software for visual media publicity. Single Window Scheme To provide loan both: for fixed assets a n d w o r k i n g c a p i t a l t o t i n y and small-scale units whose project cost does not exceed Rs. 35lakhs and working capital requirement does not exceed Rs. 15lakhs.

Corporate Loan Scheme Short term loans to the existing s u c c e s s f u l u n i t s w h o r e q u i r e urgent working capital funds either to meet gap in the working capital requirements or funds required for executing the rush of orders and also for meeting statutory dues to government like payment of income tax, sales tax excise duty etc. This loan is also considered for developing/expanding new markets and opening LC for purchase of new equipments till a term loan is sanctioned and released. Rehabilitation For Sick Assistance for rehabilitation of potentially viable sick units. THE DISTRICT INDUSTRIES CENTRE PROGRAMME This programme of District Industries Centre was launched at the National level on the 1st May, 1978 to provide a District Level Set up for the promotion & development of Small Scale, Village and Cottage Sectors of industries and to provide all services and support to this Decentralised Sector of Industries, under SINGLE ROOF as far as practicable at PreInvestment, Investment and PostInvestment Stages. 2.2. The main thrust of this Programme is on development of such industrial Units in rural areas and small towns of the country and would create large employment opportunities in these areas. 2.3. Initially, the District Industries Centre, at Nongpoh was started in March 1994, to look after the Industrial Programme for the Ri- Bhoi District . 2.4. The duties of the DIC. It acts as a single window interacting agency with the entrepreneur at the district level, Services and supports to Small entrepreneurs are provided through it. It is an implementing arm of the Central and State Government of the various schemes and programmes. 2.5. ACTIVITIES : REGULATORY a) Registration of Units. b) Activities connected with policy implementation. c) Administrative work. RECOMMENDATORY FOR ASSISTANCE FROM GOVERNMENTAGENCIES FOR a) Machinery. b) Finance. c) Procurement of materials. IMPLEMENTATION AND MONITORING OF PROGRAMMES OF BOTH CENTRAL AND STATE GOVERNMENTS. PROMOTIONAL FOR : a) Preparation of Project Reports. b) District Action Plans. 8. What are the criteria for selecting a particular project, an entrepreneur should consider? (06 Marks) b. Explain the phases of project identification with its sources. c. Explain Network analysis. What are the various techniques used for analysis. d. Explain both PERT & CPM with its advantages & disadvantages. June-July 20011 PART A 1. a. Explain different skills and their importance at different levels of management. (08 Marks) (05 Marks) Network (05 Marks) (10 Marks)

b. What is the nature & characteristics of management. c. Distinguish between management & administration. 2.

(07 Marks) (05 Marks)

a. Briefly explain the general principles of management as laid down by Henry Fayol. (08 Marks) b. State explain the steps in decision making. (07 Marks)

c. differentiate between strategic & tactical planning. (05 Marks) Strategic and operational planning : Strategic planning sets future directions of the organization in which it wants to proceed in future. Strategic planning involves a time horizon of more than one year and for most of the organization it ranges between3 and 5 years. Examples of strategic planning may be diversification of business into new lines, planned grown rate in sales etc. Operational planning also known of tactical planning on the other hand involves deciding the most effective use of resources already allocated to achieve the organizational objectives. The time horizon in o p e r a t i o n a l planning is less than one year. Operational planning is undertaken out of the strategic planning. The examples of operational planning may be adjustment of production within available capacity, increasing the efficiency of the operating activity by analyzing past p e r f o r m a n c e e t c . Differences between strategic and operational planning

S t r a t e g i c p la n n i n g

O p e ra tio n a l p la n n in g

1 . I t d e c i d e s m a j o r g o a l s a n d p o li c i e s .oI ft d e c i d e s t h e d e t a i l e d u s e o f r e s o u r c e 1 a l lo c a t i o n o f r e s o u r c e sa c h i e v i n g t h e ste a c h i e v e t h e s e g o a l s fo r o g o a ls 2 . I t i s c a r r i e d a t h i g h e r le v e l o f 2 . I t i s c a r r i e d a t lo w e r l e v e l o f m anagem ent m anagem ent 3 .It is lo n g te r m . 3 .It is s h o rt te rm . 4 . I t i s b a s e d o n l o n g t e r m f o r e c a s t i n4g. I t i s g e n e r a l l y b a s e d o n p a s t p e r fo r m a n c e o f c o n s id e r in g th e p o s s ib le im p a c t o f th e o r g a n iz a tio n a n d is le s s u n c e r t a i n p o li t i c a l , e c o n o m i c a l , t e c h n o lo g i c a l a n d c o m p e t i t i v e f a c t o r s a n d is m o r e u n c e r ta in . 5 .It is le s s d e ta ile d . 5 .It is m o re d e ta ile d
3. a. What is line & staff organization?. b. Explain the nature & importance of staffing. c. What is MBO ? Explain. a. What are the essentials of a sound controlling? b. Explain the importance of leadership in organization. c. What are the barriers of successful communication? PART B 5. a. What are the qualities of an entrepreneur ? b. Differentiate between Entrepreneur & Intrapreneur & manager. Marks) c. What are the various stages in Entrepreneurship process. Marks) 6. a. Explain the steps involved in setting up a small scale industry? Marks) b. Briefly What is the influence of LPG in SSIs ? Explain. c. Explain the role of SSI in the economic development. (08 Marks) (07 (05 (08 .(07 Marks) (05 Marks) (08 Marks) (07 Marks) (05 Marks) (08 Marks) (07 Marks) (05 Marks)

4.

The most important factor for economic development of a country is its industrialization. In the process of industrialization, emphasis is given to the three major groups of industries; large-scale industries, small-scale industries and cottage industries. development is vitally linked with various programmes and policies designed to remove poverty, unemployment and backwardness of the rural people. small-scale industrial sector plays a dominant role in the economic development of both developed and developing countries. In developing countries cottage and small-scale industries are especially important in context of employment opportunities, equitable distribution of national income, balanced regional growth and development of rural and semi urban areas. They provide immediate large-scale employment, offer a method of ensuring a more equitable distribution of the national income and facilitate effective mobilization of resources of capital and skill which might otherwise remain unutilized. Small scale industries, including traditional cottage and village industries and modern small enterprises have been given an important place in Indias economic planning for ideological and economic reasons. Our late Prime Minister Mrs. Indira Gandhi once remarked, Small scale industries offer many opportunities; besides adding to production, they broaden the industrial base. They enable the process of modernization as well as entrepreneurship to spread to more regions and layers of society. Father of our Nation, Mahatma Gandhiji had strongly advocated the development of Indian villages by making them financially viable through small and village industrial units. The small scale and cottage industrial sector have found their economic rationale in Mahalanobis model of economic development, which was the basis for Indias second and subsequent Five Year Plans. This sector has emerged as a vibrant and dynamic sector of Indian economy, which contributes nearly 40 percent of the total industrial production and over 34 percent of the national exports by providing employment to over 250lakh persons. This sector enjoys the pride of being second largest employer in the country and offers a wide variety of products. 7. a. What are the objectives & functions of NSIC. (08 Marks)

The National Small Industries Corporation Ltd (NSIC) was set up in 1955 as a central government undertaking, the main aim of which is to fulfil the requirement of machinery and equipment for the development of the small entrepreneurs. It is observed that the main constraint faced by the entrepreneurs is the dearth of ingestible funds to purchase machinery and equipment. Nonavailability of finance deprives many new entrepreneurs from availing entrepreneurial opportunities. NSIC is established to cater to this need of the entrepreneur. NSIC provides plant, machinery and equipment on a hire-purchase basis. Under its special scheme, entrepreneurs can procure indigenous as well as imported machinery.

Functions of National Small Industries Corporation Ltd. (NSIC)

The Head office of NSIC is situated at New Delhi with four regional offices at New Delhi, Mumbai, Kolkata and Chennai and eleven branch offices at important cities spread over the entire country. They provide a wide range of services mostly promotional in character to small scale industries. The important functions NSIC performs are grouped as under: 1. Provides financial assistance by way of hire-purchase scheme for purchase of machinery and equipment, required for the setting up industries. 2. Provides various equipments on lease basis. 3. Assists in marketing of the products of SSIs. 4. Helps in exporting the product of SSIs.

5. Provides training to workers of SSIs in various trades. 6. Helps in the development and upgradation of technology and modernisation of the industries. 7. Undertakes construction of industrial estates. 8. Purchases huge quantity of important raw materials and distribute the same to SSIs at reasonable rates. 9. Develops prototype machines and equipments to pass on to SSIs for commercial produ. 10. Sets up small scale industries in other developing countries on turn-key basis. ction So in the above way NSIC plays a prominent role for the development of entrepreneurship well as as industrialisation, in the country.
b. Narrate the function of SIDO for the growth of SSIs. c. What are the objectives of SFC. (07 Marks) (05 Marks) (08 Marks) (07 Marks) (05 Marks)

a. Write the need & significance of project report. b. hat do you mean by project feasibility study? Explain. c. Define the project. What is its nature?

More than 90 percent of entrepreneurs fail. The top 3 barriers to entrepreneurship are the following: 3. Procrastination: Procrastination they say is the thief of time. There is no tomorrow because it never comes. What you do today will affect how your tomorrow will be. Out of laziness, resistance and complacency entrepreneurs are forced to shift activities. If you want to draw a business plan it must be now; if you want to write a proposal, it must be now; if you must register your business, it must be now; if you must quit a job and start your own business it must be now. A lot of entrepreneurs have great vision and dreams but a lot are in the someday island. They hope to achieve them someday. They never get there in actual fact. Write the dream on paper, figure out areas of strength and areas of resistance, set time against your dreams. When you have done this, employ your passion and go get it. 4. Tying your dreams to age: Age is nothing but a number. Whatever you want to do has nothing to do with your age. Its all about attitude, level of exposure, knowledge and the self-will. The fact that the CEO of a company achieved success at the age of 50 does not mean entrepreneurial success is tied to age 50. Today there are a lot of young entrepreneurs who have become billionaires. Mark Zuckerberg of facebook.com is a typical example; a billionaire at age 24 as at 2010. Dont allow your age to limit you in the kinds of dreams you have and your pursuit for achievement. Dream as wide as you can, dont be

deterred by how insufficient you may be. As you step out to achieve your goals, all you need shall fall into place. 5. Following the status quo: There is no perfect system. What worked out ten years ago has no place today. The world is fast-changing and so is the business environment. The Internet has made the world smaller than was thought decades ago. Businesses are using the power of the Internet to reach out to their clients. As an entrepreneur, consider the use of social media platforms like Facebook, Twitter, and Myspace to reach out to your prospective clients at no cost. Flow with the time and make the necessary adjustment to be able to enjoy the benefits that comes with the change.

SSI

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Objectives of the Scheme i. To support the sustainability and growth of MSEs by addressing common issues such as improvement of technology, skills and quality, market access, access to capital, etc. ii. To build capacity of MSEs for common supportive action through formation of self help groups, consortia, upgradation of associations, etc. iii. To create/upgrade infrastructural facilities in the new/existing industrial areas/ clusters of MSEs. iv. To set up common facility centres (for testing, training centre, raw material depot, effluent treatment, complementing production processes, etc).