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Semester II Examination Papers
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-II Examination Paper MM.100
Production and Operation Management
Section A: Objective Type (30 marks)
??This section consists of Multiple choice questions & Short Notes type questions.
??Answer all the questions.
??Part One questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1. If the number of restrictions on sources be ‘a’ and the number of restrictions on destinations be
‘b’ then with the use of ‘stepping stone procedure’, the number of ‘used cells’ will be
a. a+b+1
b. a+b+2
c. a-b-1
d. a+b-1
2. Value of smoothing coefficient ‘a’ lies
a. Between 1 and 8
b. Between 0 and 1
c. Between -1 and 1
d. Between 1 and 2
3. Forecasting error is
a. The difference between forecasted demand and actual demand
b. The ratio of forecasted demand and actual demand
c. The difference between the standard forecast demand and the evaluated forecast demand
d. Ratio of standard forecast demand and the evaluated forecast demand
4. For forecasting the analyzers plot the demand data on a time scale, study the plot and then look
for the consistent patterns. Now what does the high noise mean to these patterns
a. Many of the point lie away from the pattern
b. Most of the points lie close to the pattern
c. All the points lie on the pattern
d. None
5. Payback period is
a. The length of time after which the production starts
b. The length of time after which the selling starts
c. The length of time required to recover the investment
d. The length of time for which firm bears replacement of the good.
Semester II Examination Papers
IIBM Institute of Business Management
6. Salvage value is the income from
a. Selling an asset
b. Buying an asset
c. Bargaining in selling
d. Price raised stock
7. On total factor basis ‘Productivity’ is given by x/y, where ‘y’ is
a. Labor + Capital +Materials
b. Labor + Capital + Materials + Energy
c. Capital
d. Capital + Materials
8. Economic efficiency is given by
a. Input /output
b. Input /100
c. (Output-input)/input
d. Output /input
9. This implies an effective management that ensures an organization’s long-term commitment to
the continuous improvement of quality.
a. Quality management
b. Strategic management
c. Total quality management
d. Operations management
10. This techniques for improving productivity involves analyzing the operations of the product or
service, estimate the value of each operation, and modifying (or) improving that operation so that
the cost is lowered.
a. Value engineering
b. Time-event network
c. Work simplifications
d. Quality circles
Part Two:
1. What are the different types of models in production and operation management?
2. Define ‘Depreciation’.
3. What do you understand by ‘Bias’?
4. What are ‘Learning curves’?
END OF SECTION A
Semester II Examination Papers
IIBM Institute of Business Management
Section B: Caselets (40 marks)
??This section consists of Caselets.
??Answer all the questions.
??Each caselet carries 20 marks.
??Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
COMPANY BACKGROUND
The Bronson Insurance Group was originally founded in 1900 in Auxvasse, Missouri, by James Bronson.
The Bronson Group owns a variety of companies that underwrite personal and commercial insurance
policies. Annual sales of the Bronson Group are $100 million. In recent years, the company has suffered
operating losses. In 1990, the company was heavily invested in computer hardware and software. One of
the problems the Bronson Group faced (as well as many insurance companies) was a conflict between
established manual procedures and the relatively recent (within the past 20 years) introduction of
computer equipment. This conflict was illustrated by the fact that much information was captured on
computer but paper files were still kept for practical and legal reasons.
FILE CLERKS
The file department employed 20 file clerks who pulled files from stacks, refilled used files, and delivered
files to various departments including commercial lines, personal lines, and claims. Once a file clerk
received the file. Clerks delivered files to underwriters on an hourly basis throughout the day. The
average file clerk was paid $8,300 per year. One special file clerk was used full time to search for
requested files that another file clerk had not been able to find in the expected place. It was estimated that
40 percent of the requested files were these “no hit” files requiring a search. Often these “no hit” files
were eventually found stacked in the requester’s office. The primary “customers” of the file clerks were
underwriters and claims attorneys.
UNDERWRITING
Company management and operations analysts were consistently told that the greatest problem in the
company was the inability of file clerks to supply files in a speedy fashion. The entire company from top
to bottom viewed the productivity and effectiveness of the department as unacceptable. An underwriter
used 20-50 files per day. Because of their distrust of the files department, underwriters tended to hoard
often used files. A count by operations analysts found that each underwriter kept from 100-200 files in his
or her office at any one time. An underwriter would request a file by computer and work on other
business until the file was received. Benson employed 25 underwriters.
MANAGEMENT INFORMATION SYSTEM
Upper management was deeply concerned about this problem. The MIS department had suggested using
video disks as a possible solution. A video disk system was found that would be sufficient for the
Semester II Examination Papers
IIBM Institute of Business Management
companies needs at a cost of about $12 million. It was estimated that the system would take two years to
install and make compatible with existing information systems. Another, less attractive was using
microfilm. A microfilm system would require underwriters to go to a single keyboard to request paper
copies of files. The cost of a microfilm system was $5 million.
1. What do you recommend? Should the company implement one of the new technologies? Why or
why not?
2. An operations analyst suggested that company employees shared a “dump on the clerks”
mentality. Explain.
Caselet 2
Harrison T. Wenk III is 43, married, and has two children, ages 10 and 14. He has a master’s degree
in education and teachers junior high school music in a small town in Ohio. Harrison’s father passed
away two months ago, leaving his only child an unusual business opportunity. According to his
father’s will, Harrison has 12 months to become active in the family food-catering business, Kare-
Full Katering, Inc., or it will be sold to two key employees for a reasonable and fair price. If
Harrison becomes involved, the two employees have the option to purchase a significant, but less
than majority, interest in the firm. Harrison’s only involvement with this business, which his
grandfather established, was as an hourly employee during high school and college summers. He is
confident that he could learn and perhaps enjoy the marketing side of the business, and that he could
retain the long-time head of accounting/finance. But he would never really enjoy day-to-day
operations. In fact, he doesn’t understand what operations management really involves. In 1991
Kare-Full Katering, Inc. had $3.75 million in sales in central Ohio. Net profit after taxes was $
105,000, the eleventh consecutive year of profitable operations and the seventeenth in the last 20
years. There are 210 employees in this labor-intense business. Institutional contracts account for
over 70 percent of sales and include partial food services for three colleges, six commercial
establishments) primarily manufacturing plants and banks), two long -term care facilities, and five
grade schools. Some customer location employs a permanent operations manager; others are served
from the main kitchens of Kare-Full Katering. Harrison believes that if he becomes active in the
business, one of the two key employees, the vice president of operations, will leave the
firm.Harrison has decided to complete the final two months of this school year and then spend the
summer around Kare-Full Katering – as well as institutions with their own food services – to assess
whether he wants to become involved in the business. He is particularly interested in finding out as
much as possible about operations. Harrison believes he owes it to his wife and children to fairly
evaluate this opportunity.
1. Prepare a worksheet of operations activities that Harrison should inquire about this summer.
2. If you were Harrison, what would you do? Why?
END OF SECTION B
Semester II Examination Papers
IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
??This section consists of Long Questions.
??Answer all the questions.
??Each question carries 15 marks.
1. Productivity is an important tool for mangers as it helps them to track progress toward the more
efficient use of resources in producing goods and services. Elucidate.
2. In additional to operations research, what are the other tools and techniques used by organizations
to improve productivity?
END OF SECTION C

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MCA Semester III Examination Paper: Principles of Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester III Examination Paper MM.100
PRINCIPLES OF MANAGEMENT
Section A: Objective type (30 marks)
This section consists of Multiple Choice Questions & Fill in the blanks / True & False.
Answer all the questions.
Each Question carries 1 mark.
Multiple Choices:
1. In the keyword ‘PODSCORB’ suggested by Luther Gullick, ‘D’ stands for
a. Development
b. Directing
c. Distance
d. Demonstration
2. The father of scientific management movement is
a. Max Weber
b. Henri Fayol
c. F W Taylor
d. Elton Mayo
3. Who was given the title ‘Universalist’
a. Max Weber
b. Henri Fayol
c. F W Taylor
d. Elton Mayo
4. _____________is applied to the decision situation where the rational opponents are involved,
to have a specific strategy favoring both.
a. Game theory
b. Linear programming
c. Queuing theory
d. Replacement theory
5. According to Graicunas theory, if the number of subordinates working under a manager be 3
then the number of group relations possible be
a. 9
b. 3
c. 6
d. 18
MCA Semester III Examination Paper: Principles of Management
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IIBM Institute of Business Management
6. If there is a high degree of centralization then
a. The organization structure would be flat with lesser number of levels
b. The organization structure would be flat with greater number of levels
c. The organization structure would be high with lesser number of levels
d. The organization structure would be flat with greater number of levels
7. __________ power is based upon the attraction shown by one individual over other, also this is
more of a personal nature than the positional nature
a. Expert power
b. Coercive power
c. Referent power
d. Reward power
8. Management science is commonly known as
a. Operations research
b. Operations science
c. Management research
d. Operations management
9. This theory of Mc Gregor’s takes a optimistic, dynamic, flexible and positive view of employees
a. Theory X
b. Theory Y
c. Theory A
d. Theory Z
10. The establishment of a distinct area, or unit or subsystem of an organization over which a
manager has authority for performance of specialized activities and results is termed as
a. Departmentation
b. Decentralization
c. Organization
d. Centralization
11. The relationship between workers & management was established through
a. Formal communication
b. Informal communication
c. Oral communication
d. Written communication
12. __________ means group of activities and employees into departments
a. Organization
b. Departmentation
c. Controlling
d. Control devices
MCA Semester III Examination Paper: Principles of Management
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IIBM Institute of Business Management
13. This theory states that authority is the power that is accepted by others
a. Formal authority theory
b. Acceptance theory
c. Competence theory
d. Decentralization of authority
14. It is one of the most important principle of motivation that people in the organization should be
induced to participate in decision- making process in matters concerning them
a. Principle of participation
b. Principle of communication
c. Principle of recognition
d. None
15. An act or instance of working or acting for a common purpose or benefit is refer to as
a. Coordination
b. Cooperation
c. Vertical coordination
d. Horizontal coordination
16. The activities of every member of any organized group should be confined as far as possible to the
performance of a single function
a. Principle of objective
b. Principle of functionality
c. Principle of coordination
d. Principle of authority
17. __________ refers to a claim of legitimacy, the justification and right to exercise that power
a. Authority
b. Delegation
c. Power
d. Order
18. It is a process by which job duties and responsibilities are defined and the information of various
factors relating to jobs are called
a. Job description
b. Job specification
c. Job explanation
d. Job analysis
19. This type of planning ensures that the required personnel of required skills are available at the
right time
a. Manpower planning
b. Simple planning
c. Continuous planning
d. General planning
MCA Semester III Examination Paper: Principles of Management
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IIBM Institute of Business Management
20. This organization is a combination of the project and the functional organization
a. Line & staff
b. Matrix
c. Committee
d. Functional
True & False:
1. Motivation is the process by which a manager guides & influences the working of his
subordinate.
2. Controlling involves four sub functions communication, Leadership, Motivation and supervision.
3. Technical sub-system refers to the knowledge required for the performance of tasks.
4. Standing plans are designed to accomplish specific objectives within a relatively short period.
5. Matrix organisation is a combination of the project organisation and the functional organisation.
6. Role culture is a type of organisation culture in which roles rule dominates.
7. In free rein direction method manager gives direct, clear and precise orders to his subordinates
with detailed instructions of work.
8. Post action control referred to control action which takes place when the operation is
completed and results are reviewed.
9. MBO is a technique which helps a manager to achieve his objectives in an efficient manner.
10. Departmentation means group of activities and employees into departments.
END OF SECTION A
MCA Semester III Examination Paper: Principles of Management
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IIBM Institute of Business Management
Section B: Explanatory Questions (40 marks)
This section consists of Explanatory Questions.
Answer all the questions.
Each Question carries 10 marks.
Detailed Information should from the part of your answer (Word limit 150 to 200).
1. Write the steps which are involved in decision-making. Write a brief note on types of
decision.”?
2. Explain the concept of MBO.
3. What do you understand by the “Line Organization”?
4. What is the classical organization theory?
END OF SECTION B
Section C: Applied Theory (30 Marks)
This section consists of Long Questions.
Answer all the questions.
Each question carries 10 marks.
Detailed information Should from the part of your answer (Word limit 200 to 250 words)
1. There are two views about relationship between job satisfaction and productivity: a happy
worker is a productive one; a happy worker is not necessarily a productive one.” Discuss this
statement and point out the situations under which each statement is true.
2. “Informal Organization is detrimental to the Interests of formal organization and, therefore,
It is an evil to be nipped in the bud itself.” Comment on this statement and explain how
management should handle informal organization.
3. “Management is a two-way traffic; it is based upon the effective machinery of
communication.” Discuss this statement.
END OF SECTION C

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Examination Paper: Health and Hospital Management
6
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Principles of Hospital Administration and Planning
Section A: Objective Type (30 marks)
•?This section consists of Multiple choices and short notes type questions.
•?Answer all the questions.
•?Part One questions carry 1 mark each and Part two questions carry 5 marks each.
Part One:
Multiple Choices:
1. Public Health Services are concerned with the:
a. Control of communicable diseases
b. Maternal and child health
c. Occupational health and reduction of health hazards
d. All of the above
2. The service of an OPD is affected by the:
a. System
b. Arrival pattern
c. Appointment System
d. None of the above
3. CSSD stands for:
a. Central Sterile Supply Department
b. Circular Sterile Supply Department
c. Central Site Survey Department
d. All of the above
4. ICU Incharge responsibility should cover:
a. Continuity of care
b. Administrative matters
c. Care and maintenance of equipments
d. All of the above
5. According to which method one nurse is assigned to a group of patient to provide total nursing
care:
a. Functional Assignment Method
b. Team Nursing Method
c. Group Assignment Method
d. Primary Nursing Method
Examination Paper: Health and Hospital Management
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IIBM Institute of Business Management
6. Break-even point analysis, analyses the relationship between revenue and ______.
a. Variable Cost
b. Expenses
c. Cost
d. Volume
7. MRI stands for:
a. Medical Resonance Imaging
b. Magnetic Resonance Imaging
c. Medical Reasonable Imaging
d. None of the above
8. Ultrasonography waves are mechanical pressures waves whose frequency ranging from:
a. 10-100 MHz
b. 2-50 MHz
c. 100-150 MHz
d. 2-10- MHz
9. The Hospital laboratory works generally falls under the which divisions:
a. Hematology, cytology & Microbiology
b. Clinical Chemistry, Histopathology & Biochemistry
c. Urine and stool analysis
d. All of the above
10. ____________ is a dry type filter with a rigid casing enclosing the full depth of accordion type
filter pleats.
a. OT Suite
b. HEPA filter
c. Cleaner’s closet
d. Electrical outlets
Part Two:
1. What are the importances of Outpatient Services?
2. Define Hospital as a Social System.
3. What are the main functions of the Nursing Services?
4. Explain the classification of Ward Accommodation?
END OF SECTION A
Examination Paper: Health and Hospital Management
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IIBM Institute of Business Management
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Mr. Naveen Desai is the current president of Medicare Memorial Hospital’s board of trustees.
Medicare Memorial is a 200-bed voluntary short-term general hospital serving an area of
approximately 50,000 persons. Mr. Naveen has just begun a meeting with the administrator of the
hospital, Mr. Tarun. The purpose of the meeting is to seek an acceptable solution to an apparent
conflict-of-authority problem within the hospital between Mr. Tarun and the chief of surgery, Dr.
Mathew.
The problem was brought to Mr. Naveen’s attention by Dr. Rajeev. The problem that concerned Dr.
Mathew involved the operating room supervisor, Ms. Meetha. Ms. Meetha schedules the hospital’s
operating suite in accordance with policies that she “believes” to have been established by the
hospital’s administration. One source of irritation to the surgeons is her attitude that maximum
utilization must be made of the hospital’s operating rooms if hospitals cost are to be reduced. She
therefore schedules in such a way that operating room idle time is minimized. Surgeons complain that
the operating schedule often does not permit them sufficient time to complete a surgical procedure in
the manner they think desirable. More often than not, insufficient time is allowed between operations
for effective preparation of the operating room for the next procedure. Such scheduling, the surgical
staff maintains, contributes to low-quality patient care. Furthermore, some of the surgeons have
complained that Ms. Meetha shows favoritism in her scheduling, allowing some doctors ore use of the
operating suite than others.
The situation reached a crisis when Dr. Mathew following an explosive confrontation with s. Meetha
made an appeal to the hospital administrator, who in turn informed Dr. Mathew that discharging
nurses was an administrative prerogative. In effect, Dr. Mathew, was told he did not have authority
over any issue affecting medical practice and good patient care in Medicare Hospital. He considered
this as a medical problem and threatened to take the matter to the hospital’s board of trustees.
As the meeting between Mr. Naveen and Mr. Tarun began, Mr. Tarun explained his position on the
problem. He stressed the point that a hospital administrator is legally responsible for patient care in
the hospital. He also contended that quality patient care cannot be achieved unless the board of
trustees authorized the administrator to make decisions, develop programs, formulate policies and
implement procedures. While listening to Mr. Tarun, Mr. Naveen recalled the position belligerently
taken by Dr. Mathew, who had contended that surgical and medical doctors holding staff privileges at
Medicare would never allow a ‘layman’ to make decisions impinging on medical practice. Dr.
Mathew also had said that Mr. Tarun should be told to restrict his activities to fund raising, financing,
maintenance – administrative problems rather than medical problems. Dr. Mathew had then requested
that Mr. Naveen clarify in a definitive manner the lines of authority at Medicare Memorial.
As Mr. Naveen ended his meeting with Mr. Traun, the severity of the problem was unmistakably
clear to him, but the solution remained quite unclear, Mr. Naveen knew a decision was required – and
soon.
Questions:
1. According to you, what conflict had developed at Medicare Memorial Hospital?
2. What should Mr. Naveen do?
Examination Paper: Health and Hospital Management
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IIBM Institute of Business Management
Caselet 2
Outpatient service is one of the rapidly growing services of the hospital. Therefore in many instances,
outpatient departments built in the recent past have been found to be too small over the years because
of increasing demands, growth of new specialties and the desirability of carrying out an increasing
range of diagnostic and therapeutic procedures on outpatient basis. The department must, therefore,
be planned for a substantial capacity for growth.
In the general hospital, the outpatient department will consist of general outpatient clinic as well as
specialty clinics, in the form of a polyclinic. The structural requirement of outpatient department
incorporating a polyclinic will depend upon the extent of the services provided. The primary aim
should be to provide large floor areas free of structural members to give the maximum adaptability
for changing requirements.
In many hospitals, poorly planned physical relationship of the OPD are responsible for increasing the
work of staff and causing embarrassment and unnecessary movements for patients. On outpatients
visits, patent flow usually progresses from Enquiry and Registration to Waiting, then to examination
rooms and thereafter to investigation facilities, and lastly the pharmacy. In comparison to the other
departments of the hospital, viz. wards, diagnostic and service departments combined, the percentage
of space occupied by the outpatient department of most existing public hospitals varies from 12 to 18
per cent.
The area required for the outpatient department should be adequate to accommodate the reception and
waiting hall, waiting rooms, registration and outpatient medical records, clinics, toilet facilities and
the injection and dressing room, pharmacy, minor OT and circulation routes. Scales of space for
outpatient department can hardly be standardized in view of the varied requirements and range of
services provided. For planning premises, half square foot for each expected annual outpatient visits
is considered to provide adequate space in case of most general hospitals. A hospital expecting 500
outpatients per day over 300 normal working days in a year would thus require upto 75000 square
feet (6975 sqm) of space for its outpatient department.
Questions:
1. What will be procedures that could be performed on outpatient basis?
2. Outpatient Services is important in Hospitals. Why?
END OF SECTION B
Examination Paper: Health and Hospital Management
10
IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. What are the role and functions of an ICU?
2. What are the Ethical and Legal Aspects of Hospital Administration?
END OF SECTION C
S-3-010711

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Principles and Practices of Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Principles and Practices of Management
Subject Code-B101
Section A: Objective Type & Short Questions (30 marks)
•?This section consists of multiples choice and short notes type questions
•?Part one carries 1 mark each & part two carries 5 marks each.
•?Attempt all questions
Part One
Multiple Choices:
1. A plan is a trap laid to capture the ________
a. Future
b. Past
c. Policy
d. Procedure
2. Which of the following is the function for employing suitable person for the enterprise?
a. Organizing
b. Staffing
c. Directing
d. Controlling
3. ___________ means “ group of activities & employees into departments”:
a. Orientation
b. Standardization
c. Process
d. Departmentation
4. This theory states that authority is the power that is accepted by others:
a. Acceptance theory
b. Competence theory
c. Formal authority theory
d. Informal authority theory
5. Which of the following means dispersal of decision-making power to the lower levels of the
organization?
a. Decentralization
b. Centralization
c. Dispersion
d. Delegation
6. This chart is the basic document of the organizational structure:
a. Functional chart
b. Posts chart
Principles and Practices of Management
IIBM Institute of Business Management 2
c. Master chart
d. Departmental chart
7. Communication which flow from the superiors to subordinates with the help of scalar chain is
known as:
a. Informal communication
b. Downward communication
c. Upward communication
d. Oral communication
8. Needs for belongingness, friendship, love, affection, attention & social acceptance are comes
under___________
a. Physiological needs
b. Safety needs
c. Ego needs
d. Social needs
9. A management function which ensures “jobs to be filled with the right people, with the right
knowledge, skill & attitude” is comes under__________
a. Staffing defined
b. Job analysis
c. Manpower planning
d. Recruitment
10. It is a process that enables a person to sort out issues and reach to a decisions affecting their life:
a. Selection
b. Raining
c. Reward
d. Counseling
Part Two:-
1. What do you understand by Maslow?s Theory of Motivation?
2. Define Management By Objective.
3. Differentiate between co- ordination and co-operation.
4. Write a short note on „Acceptance theory?.
END OF SECTION A
Principles and Practices of Management
IIBM Institute of Business Management 3
Section B: Caselets (40 marks)
Caselet 1
Mr. Vincent, the Manager of a large supermarket, was taking a management course in the evening
programme at the local college. The Professor had given an interesting but disturbing lecture the
previous night on the various approaches to management. Vincent had always thought that
management involved just planning, organizing and controlling. Now this Professor was saying that
management could also be thought of as quantitative models, systems theory and analysis, and even
something called contingency relationships. Vincent had always considered himself a good manager,
and his record with the supermarket chain had proved it. He thought of himself, “I have never used
operations research models, thought of my store as an open system, or developed or utilized any
contingency relationship. By doing a little planning ahead, organizing the store, and making some
things got done, I have been a successful manager. That other stuff just does not make sense. All the
professor was trying to do was complicate things. I guess I will have to know it for the test, but I am
sticking with my old plan, organize and control approach to managing my store.”
Questions:
1. Critically analyze Mr. Vincent?s reasoning.
2. If you were the professor and you knew what was going through Vincent?s mind, what would you say
to Vincent?
Caselet 2
The Regional Administration Office of a company was hastily set up. Victor D?Cuhna a young
executive was directly recruited to take charge of Data Processing Cell of this office. The data
processing was to help the administrative office in planning and monitoring. The officer cadre of the
administrative office was a mix of directly recruited officers and promote officers (promotion from
within the organization).
Females dominated the junior clerical cadre. This cadre was not formally trained. The administrative
office had decided to give these fresh recruits on-the-job training because when results were not upto
the expectations blame was brought on the Data Processing Cell. Victor D?Cuhna realized that the
administrative office was heading for trouble. He knew that his task would not be easy and that he had
been selected because of his experience, background and abilities. He also realized that certain
functional aspects of the administrative office were not clearly understood by various functionaries,
and systems and procedures were blindly and randomly followed. Feedback was random, scanty and
controversial, and Data Processing Cell had to verify every item of feedback. Delays were inevitable.
D?Cuhna sought the permission of senior management to conduct a seminar on communication and
feedback of which he was an expert. The permission was grudgingly given by the senior management.
Everyone appreciated the seminar. Following the first seminar, D?Cuhna conducted a one week
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150-200 words).
Principles and Practices of Management
IIBM Institute of Business Management 4
training course for the clerical cadre, especially for the junior, freshly recruited clerks. Amongst other
topics, D?Cuhna laid emphasis on
Questions:
1. Diagnose the problem and enumerate the reasons for the failure of D?Cuhna?
2. What could D?Cuhna have done to avoid the situation in which he found himself?
Section C: Applied Theory (30 marks)
1. What are the common drawbacks in classical and Neo classical theories of management?
2. What is Training? Explain the different methods of training.
S-2-250613
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200-250 words).
END OF SECTION C
END OF SECTION B

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Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 1
IIBM Institute of Business Management
Examination Paper MM.100
Subject Code-B-101 Principles and Practices of Management
Section A: Objective Type (10 marks)
•?This section consists of multiples choice questions
•?Each question carries one marks
•?Attempt all questions
Multiple Choices:
1. A plan is a trap laid to capture the ________
a. Future
b. Past
c. Policy
d. Procedure
2. Which of the following is the function for employing suitable person for the enterprise?
a. Organizing
b. Staffing
c. Directing
d. Controlling
3. ___________ means “ group of activities & employees into departments”:
a. Orientation
b. Standardization
c. Process
d. Departmentation
4. This theory states that authority is the power that is accepted by others:
a. Acceptance theory
b. Competence theory
c. Formal authority theory
d. Informal authority theory
5. Which of the following means dispersal of decision-making power to the lower levels of the
organization?
a. Decentralization
b. Centralization
c. Dispersion
d. Delegation
6. This chart is the basic document of the organizational structure:
a. Functional chart
b. Posts chart
Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 2
c. Master chart
d. Departmental chart
7. Communication which flow from the superiors to subordinates with the help of scalar chain is
known as:
a. Informal communication
b. Downward communication
c. Upward communication
d. Oral communication
8. Needs for belongingness, friendship, love, affection, attention & social acceptance are comes
under___________
a. Physiological needs
b. Safety needs
c. Ego needs
d. Social needs
9. A management function which ensures “jobs to be filled with the right people, with the right
knowledge, skill & attitude” is comes under__________
a. Staffing defined
b. Job analysis
c. Manpower planning
d. Recruitment
10. It is a process that enables a person to sort out issues and reach to a decisions affecting their life:
a. Selection
b. Raining
c. Reward
d. Counseling
Section B Short Questions (20 marks)
•?This section consists of four questions
•?Each question carries five marks
•?Attempt all questions
1. Differentiate between „Administration? and „Management.?
2. What are the common drawbacks in classical and Neo classical theories of management?
3. Write a short note on “Line Organization.”
4. Write a short note on „Acceptance theory?.
END OF SECTION A
Examination Paper of Principles and Practices of Management
IIBM Institute of Business Management 3
Section C: Long Questions (30 marks)
•?This section consists of Long Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 150-200 words).
1. What is Training? Explain the different methods of training.
2. Explain Decision-Making process of an organization.
Section D: Very Long Questions (40 marks)
•?This section consists of very long questions.
•?Answer any two of the questions.
•?Each question carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 200-250 words).
1. Define motivation. How would you explain Maslow?s theory of motivation?
2. Define management by objective (MBO) and characteristics of MBO.What are the benefits of
MBO?
3. Define co-ordination. Differentiate between co-ordination and cooperation.
S-2-100513
END OF SECTION B
END OF SECTION D
END OF SECTION C

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Examination Paper of Banking & Financial Services Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Principles & Practices of Banking
Section A: Objective Type & Short Questions (30 Marks)
•?This section consists of Multiple Choice & Short Note type questions.
•?Answer all the questions.
•?Part One carries 1 mark each & Part Two carries 4 marks each.
Part One:
Multiple Choices:
1. Frequency of First Tranche Returns is:
a. Weekly
b. Monthly
c. Monthly/quarterly
d. Monthly/quarterly/half-yearly
2. An order for winding up a banking company can be issued by___________
a. The High Court
b. The RBI
c. The Central Government
d. The Supreme court
3. Who shall be natural guardian in case of married minor girl?
a. Father
b. Brother in law
c. Father-in-law
d. Husband
4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm?s name. It will require
signatures of:
a. All partners
b. Any one of the partner
c. Managing partner only
d. Sleeping partner not required
5. Public limited companies should have minimum shareholders, before Opening Bank account.
a. 11
b. 7
c. 5
d. 15
6. If the beneficiary is government then the Expiry of guarantee is governed by the „law of
limitation? ranging from 3 years to
a. 15 years
b. 30 years
Examination Paper of Banking & Financial Services Management
2
IIBM Institute of Business Management
c. 20 years
d. 10 years
7. Charge created on LIC Policy is
a. Lien
b. Hypothecation
c. Pledge
d. Assignment
8. The device that combines the parallel input data into single serial output data is known as
a. Switcher
b. Multiplexer
c. Encoder
d. Front end processor
9. In market skimming pricing strategy:
a. Initially price is lower and then it is increased
b. Initial price is high and is maintained high
c. Initial price is low and is maintained low
d. Initially price is higher and then it is reduced
10. The marketing personnel need information _________intervals.
a. At yearly
b. At quarterly
c. At monthly
d. On a continuous basis and regular
Part Two:
1. Discuss the role of RBI in Indian Banking sector.
2. Write short notes on:
a. Repo Rate
b. Reverse Repo Rate.
3. Write short notes on:
a. Bank Lien
b. Right of set off
4. What is cash credit means?
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
END OF SECTION A
Examination Paper of Banking & Financial Services Management
3
IIBM Institute of Business Management
Caselet 1
There is a lacuna in the present T-Bill auction system of RBI. The dealers (investors) are subject to
what is called the „Winners Curse?. The value of a T-Bill to a dealer is the price it can fetch in the
secondary market. This is an unobserved random value, which is likely to be common to all dealers.
It is quite unlike the works of art which the Sotheby?s would place at an auction. The price of Mona
Lisa, say, to an avid collector of Da Vinci?s paintings, would be more than what a Picasso collector
would value it. In sharp contrast, market participants are likely to agree on the price of a T-Bill in the
secondary market. Now winning an auction in a discriminatory price method may not be profitable.
For, it would mean that the winner has overestimated the T-Bill value.
Questions:
1. How does the winner in such an auction become the loser due to the „winner curse??
2. Explain the role of primary dealers in the money market.
Caselet 2
In a bid to familiarize banks, exporters and other financial bodies with „Forfeiting?, the State Bank of
India (SBI) will soon be setting up a three-man cell at its international division in Mumbai for
advisory purposes. According to Mr. D. Ian Guild, Senior Advisor, Forfeiting & Syndications
Group, Standard Bank, the cell was being set up after a series of meetings with the bank, and is
essentially aimed at spreading the message of Forfeiting as an effective trade financing mechanism
to increase exports. Suggesting that forfeiting was the ideal springboard for effecting a quantum
jump in exports in the medium-term, Mr. Guild said he was confident of aggregating forfeiting
business of $100 millions in 1998 and $250 millions in 1999 in the country. Since its introduction in
1992, Exim Bank had facilitated 69 forfeiting transactions valued at around $75 millions, with credit
periods ranging between 90 days and seven years, and covering the export of goods ranging from
textiles to plant and machinery. The RBI has now permitted all commercial banks to act as
facilitators for forfeiting transactions. Mr. Guild pointed out that forfeiting has not really taken off in
India because exporters and commercial banks lacked the knowledge of the mechanics of the
scheme. In India, the real challenge would be to motivate small and medium exporters to use the
forfeiting route for exports to countries which may not be able to buy on cash terms. Mr. S.
Bhattacharya, deputy general manager, Exim Bank, Calcutta, said: “Payment defaults by overseas
buyers were an integral part of cross-border business and export credit insurance has not been a
comprehensive answer to this problem”. Forfeiting offered an alternative solution, especially to
exporters wishing to penetrate difficult markets for the first time, he pointed out. Some of the top
international forfeiters in the world have stopped accepting forfeiting documents involving Pakistan
and Russia, according to Mr. Amitabh Mehta, Trader and Originator, Forfeiting and Syndications
group, Standard Bank London Ltd. (SBLL). According to Mr. Mehta, forfeiting transactions
involving Pakistan could not be carried out due to poor performance of the banks there. In addition,
the financial status of Pakistan following the nuclear blasts has made it impossible to carry out the
transactions. Similarly, transactions with Russia are being totally rejected by forfeiting due to the
current economic turmoil. Joining the list with Pakistan and Russia are Iraq, Sudan and Nigeria, he
added. Commenting on the Indian situation, Mr. Mehta said, “With its sound banking system, the
country is well placed in the international scene. In fact, there is tremendous potential for forfeiting
in the years to come,” he said. According to him, even after the nuclear tests conducted by India, the
top forfeiters were not worried and continued to accept forfeiting papers to be transacted with India.
Examination Paper of Banking & Financial Services Management
4
IIBM Institute of Business Management
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
Section C: Applied Theory (30 marks)
•?This section consists Long Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What are the various approaches to capital adequacy? Explain Basel II norms and minimum
capital requirements in Basel II norms.
2. What do you mean by non Performing Assets (NPA)? How have NPAs affected financial health
of Indian commercial banks?
END OF SECTION B
END OF SECTION C
Examination Paper of Banking & Financial Services Management
5
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Financial Services
Section A: Objective Type & Short Questions (30 Marks)
•?This section consists of Multiple Choice & Short Note type questions.
•?Answer all the questions.
•?Part One carries 1 mark each & Part Two carries 5 marks each.
Part One:
Multiple Choices:
1. NBFS stands for ___________
2. ALCO is a decision making unit responsible for balance sheet planning from risk return
perspective. (T/F)
3. A contract of „Indemnity? is one whereby:
a. A person tries to use the other?s property
b. A person promises to save the other?s property from loss caused.
c. A person tries to trick the property of other for some other person.
d. None
4. The transaction between the lessor and the lessee being a demand sale is called__________
a. First sale
b. Second sale
c. Third sale
d. Fourth sale
5. Which of the following is comes under mutual funds?
Open-end funds
Closed-end funds
Both (a) & (b)
None
6. Concept of leasing involves:
a. Lessor
b. Lessee
c. None
d. All
7. CRISIL stands for____________
8. ____________are issued by the government for period ranging from 14 days to 364 days
through regular auctions.
a. Treasury Bills
b. Commercial Papers
Examination Paper of Banking & Financial Services Management
6
IIBM Institute of Business Management
c. Call Money Market
d. None
9. The practice of discounting accommodation bills is known as _____________
10. HUDCO stands for _____________
Part Two:
1. Explain about SEBI guidelines to merchant bankers.
2. List the different types of Factoring.
3. Write a short note on venture capital in India.
4. Write a short note on Depositories.
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
Caselet 1
Sunlight Industries Ltd manages its accounts receivables internally by its sales and credit
department. The cost of sales ledger administration stands at Rs 9 crore annually. It supplies
chemicals to heavy industries. These chemicals are used as raw material for further use of are
directly sold to industrial units for consumption. There is good demand for both the types of uses.
For the direct consumers, the company has a credit policy of 2/10, net 30. Past experience of the
company has been that on average 40 per cent of the customers avail of the discount while the
balance of the receivables are collected on average 75 days after the invoice date. Sunlight Industries
also has small dealer networks that sell the chemicals. Bad debts of the company are currently 1.5
per cent of total sales.
Sunlight Industries finances its investment in debtors through a mix of bank credit and own longterm
funds in the ratio of 60:40. The current cost of bank credit and long-term funds are 12 per cent
and 15 per cent respectively.
There has been a consistent rise in the sales of the company due to its proactive measures in cost
reduction and maintaining good relations with dealers and customers. The projected sales for the
next year are Rs 800 crore, up 15 per cent from last year. Gross profiles have been maintained at a
healthy 22 per cent over the years and are expected to continue in future.
With escalating cost associated with the in-house management of debtors coupled with the need
to unburden the management with the task so as to focus on sales promotion, the CEO of Sunlight
Industries is examining the possibility of outsourcing its factoring service for managing its
END OF SECTION A
Examination Paper of Banking & Financial Services Management
7
IIBM Institute of Business Management
receivables. He assigns the responsibility of Anita Guha, the CFO of Sunlight. Two proposals, the
details of which are given below, are available for Anita?s consideration.
Proposal from Canbank Factors Ltd: The main elements of the proposal are: (i) Guaranteed
payment within 30 days (i) Advance, 88 per cent and 84 per cent for the resource and non-recourse
arrangements respectively (iii) discount charge in advance, 21 per cent for with resource and 22 per
cent without resource (iv) Commission, 4.5 per cent without resources 2.5 per cent and with
resource.
Proposal from Indbank Factors: (i) Guaranteed payment within 30 days (ii) Advance, 84 per cent
with resource and 80 per cent without resource (iii) Discount charge upfront, without resource 21 per
cent and with resource, 20 per cent and (iv) Commission upfront, without resource 3.6 per cent and
with resource 1.8 per cent.
The opinion of the Chief Marketing Manager is that in the context of the factoring arrangement,
his staff would be able to exclusively focus on sales promotion which would result in additional
sales of Rs 75 crore.
Required The CFO of Sunlight Industries seeks your advice as a financial consultants on the
alternative proposals. What advice would you give? Why? Calculations can be upto one digit only.
Caselet 2
Following are the financial statements for A Ltd and T Ltd for the current financial year. Both firms
operate in the same industry.
BALANCE SHEETS
Particulars Firm A Firm B
Total current assets Rs 14,00,000 Rs 10,00,000
Total fixed assets (net) 10,00,000 5,00,000
_____________ __________
Total assets 24,00,000 15,00,000
_____________ ___________
Equity capital (of Rs 10 each) 10,00,000 8,00,000
Retained earnings 2,00,000 _
14% Long-term debt 5,00,000 3,00,000
Total current liabilities 7,00,000 4,00,000
_____________ ___________
24,00,000 15,00,000
INCOME STATEMENTS
Net sales Rs 34,50,000 Rs 17,00,000
Cost of goods sold 27,60,000 13,60,000
__________ ___________
Gross profit 6,90,000 3,40,000
Operating expenses 2,96,923 1,45,692
Interest 70,000 42,000
__________ ___________
Earnings before taxes (EBT) 3,23,077 1,52,308
Taxes (0.35) 1,13,077 53,308
Earnings after taxes (EAT) 2,10,000 99,000
Examination Paper of Banking & Financial Services Management
8
IIBM Institute of Business Management
Additional information: __________________________________
Number of equity shares 1,00,000 80,000
Dividend payment (D/P) ratio 0.40 0.60
Market price per share (MPS) Rs 40 Rs 15
__________________________________
Assume that the two firms are in the process of negotiating a merger through an exchange of equity
shares. You have been asked to assist in establishing equitable exchange terms, and are required to:
(i) Decompose the share prices of both the companies into EPS and P/E components, and also segregate
their EPS figures into return on equity (ROE) and book value of intrinsic value per share (BVPS)
components.
(ii) Estimate future EPS growth rates for each firm.
(iii) Based on expected operating synergies, A Ltd estimates that the intrinsic value of T?s equity share
would be Rs 20 per share on its acquisition. You are required to develop a range of justifiable equity
share exchange ratios that can be offered by A Ltd?s shareholders. Based on your analysis in parts (i)
and (ii), would you expect the negotiated terms to be closer to the upper, or the lower exchange ratio
limits? Why?
(iv) Calculate the post-merger EPS based on an exchange ratio of 0.4 : 1 being offered by A Ltd. Indicate
the immediate EPS accretion or dilution, if any, that will occur for each group of shareholders.
(v) Based on a 0.4 :1 exchange ratio, and assuming that A?s pre-merger P/E ratio will continue after the
merger, estimate the post-merger market price. Show the resulting accretion or dilution in pre-merger
market prices.
Section C: Applied Theory (30 marks)
•?This section consists of Long Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
1. What do you mean by money market? Discuss money market instruments in detail.
2. What is leasing? Explain about the advantages and disadvantages of lease finance.
S-2-300813
END OF SECTION B
END OF SECTION C

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Examination Paper: Banking and Financial Services Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Principles and Practices of Banking
Section A: Objective Type (30 marks)
•?This section consists of Multiple Choice questions & Short Answer type questions.
•?Answer all the questions.
•?Part One questions carries 1 mark each & Part Two questions carries 4 marks each.
Part One:
Multiple Choices:
1. Frequency of First Tranche Returns is:
a. Weekly
b. Monthly
c. Monthly/quarterly
d. Monthly/quarterly/half-yearly
2. An order for winding up a banking company can be issued by:
a. The High Court
b. The RBI
c. The Central Government
d. The Supreme court
3. Who shall be natural guardian in case of married minor girl?
a. Father
b. Brother in law
c. Father-in-law
d. Husband
4. X a partner in the firm XYZ Co. wants to open a Bank account in the firm’s name. It will require
signatures of:
a. All partners
b. Any one of the partner
c. Managing partner only
d. Sleeping partner not required
5. Public limited companies should have minimum shareholders, before Opening Bank account.
a. 11
b. 7
c. 5
d. 15
Examination Paper: Banking and Financial Services Management
2
IIBM Institute of Business Management
6. If the beneficiary is government then the Expiry of guarantee is governed by the ‘law of
limitation’ ranging from 3 years to:
a. 15 years
b. 30 years
c. 20 years
d. 10 years
7. Charge created on LIC Policy is:
a. Lien
b. Hypothecation
c. Pledge
d. Assignment
8. The device that combines the parallel input data into single serial output data is known as:
a. Switcher
b. Multiplexer
c. Encoder
d. Front end processor
9. In market skimming pricing strategy:
a. Initially price is lower and then it is increased
b. Initial price is high and is maintained high
c. Initial price is low and is maintained low
d. Initially price is higher and then it is reduced
10. The marketing personnel need information ………… intervals.
a. At yearly
b. At quarterly
c. At monthly
d. On a continuous basis and regular
Part Two:
1. Explain ‘Cryptography’ and the need of keys. Convince.
2. Define the term ‘obscenity’ used in E-commerce.
3. What do you understand by Real time accessement?
4. What ‘Marketing mix’ conveys in modern marketing theory? Explain in short.
5. Write a note on ‘Labeling’ in product development.
END OF SECTION A
Examination Paper: Banking and Financial Services Management
3
IIBM Institute of Business Management
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
There is a lacuna in the present T-Bill auction system of RBI. The dealers (investors) are subject to
what is called the ‘Winners Curse’. The value of a T-Bill to a dealer is the price it can fetch in the
secondary market. This is an unobserved random value, which is likely to be common to all dealers.
It is quite unlike the works of art which the Sotheby’s would place at an auction. The price of Mona
Lisa, say, to an avid collector of Da Vinci’s paintings, would be more than what a Picasso collector
would value it. In sharp contrast, market participants are likely to agree on the price of a T-Bill in the
secondary market. Now winning an auction in a discriminatory price method may not be profitable.
For, it would mean that the winner has overestimated the T-Bill value.
Questions:
1. How does the winner in such an auction become the loser due to the ‘winner curse’?
2. Explain the role of primary dealers in the money market.
Caselet 2
In a bid to familiarize banks, exporters and other financial bodies with ‘Forfeiting’, the State Bank of
India (SBI) will soon be setting up a three-man cell at its international division in Mumbai for
advisory purposes. According to Mr. D. Ian Guild, Senior Advisor, Forfeiting & Syndications
Group, Standard Bank, the cell was being set up after a series of meetings with the bank, and is
essentially aimed at spreading the message of Forfeiting as an effective trade financing mechanism
to increase exports. Suggesting that forfeiting was the ideal springboard for effecting a quantum
jump in exports in the medium-term, Mr. Guild said he was confident of aggregating forfeiting
business of $100 millions in 1998 and $250 millions in 1999 in the country. Since its introduction in
1992, Exim Bank had facilitated 69 forfeiting transactions valued at around $75 millions, with credit
periods ranging between 90 days and seven years, and covering the export of goods ranging from
textiles to plant and machinery. The RBI has now permitted all commercial banks to act as
facilitators for forfeiting transactions. Mr. Guild pointed out that forfeiting has not really taken off in
India because exporters and commercial banks lacked the knowledge of the mechanics of the
scheme. In India, the real challenge would be to motivate small and medium exporters to use the
forfeiting route for exports to countries which may not be able to buy on cash terms. Mr. S.
Bhattacharya, deputy general manager, Exim Bank, Calcutta, said: “Payment defaults by overseas
buyers were an integral part of cross-border business and export credit insurance has not been a
comprehensive answer to this problem”. Forfeiting offered an alternative solution, especially to
exporters wishing to penetrate difficult markets for the first time, he pointed out. Some of the top
international forfeiters in the world have stopped accepting forfeiting documents involving Pakistan
and Russia, according to Mr. Amitabh Mehta, Trader and Originator, Forfeiting and Syndications
Examination Paper: Banking and Financial Services Management
4
IIBM Institute of Business Management
group, Standard Bank London Ltd. (SBLL). According to Mr. Mehta, forfeiting transactions
involving Pakistan could not be carried out due to poor performance of the banks there. In addition,
the financial status of Pakistan following the nuclear blasts has made it impossible to carry out the
transactions. Similarly, transactions with Russia are being totally rejected by forfeiting due to the
current economic turmoil. Joining the list with Pakistan and Russia are Iraq, Sudan and Nigeria, he
added. Commenting on the Indian situation, Mr. Mehta said, “With its sound banking system, the
country is well placed in the international scene. In fact, there is tremendous potential for forfeiting
in the years to come,” he said. According to him, even after the nuclear tests conducted by India, the
top forfeiters were not worried and continued to accept forfeiting papers to be transacted with India.
Questions:
1. Discuss the mechanism of forfeiting and the role played by banks in forfeiting transactions.
2. How does forfeiting differ from factoring?
END OF SECTION B
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. Government securities are referred to as ‘gift-edged securities’, as they are absolutely secured.
RBI, being the banker to the Government, issues different types of paper on behalf of the latter, to
cater various requirements. Discuss the various types of Government securities that are issued by
the RBI.
2. A sound regularly framework in regulating capital markets is expected to provide transparency,
maintain market integrity, fairness and ensure investor protection. However, lack of adequate
regulations can lead to manipulations which endanger the integrity of the market and damage the
confidence of investors and market participants in India?
END OF SECTION C

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Semester I Examination Paper
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Semester-1 Examination Paper MM.100
Principles and Practice of Management
Section A: Objective Type (30 marks)
??This section consists of Multiple Choices & Short Notes type questions
??Answer all the questions.
??Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part one:
Multiple choices:
1) ________ Decisions relate to the day to day operations of the enterprise generally taken by middle and
lower level management.
a) Productive
b) Qualitative
c) Non- productive
d) Operative
2) Organizational MBO was invented by ________.
a) Go slaws
b) Peter Drucker
c) W . Taylor
d) J G Melon
3) Barriers to delegation of authority would be:
a) Fear of loosing status by managers
b) Over-confidence among managers
c) Lack of trust in subordinates
d) All of the Above
4) 'Span of control' is also referred to as span of _______
a) Management
b) Delegation
c) Life
d) Practice
Semester I Examination Paper
2
IIBM Institute of Business Management
5) Learning from mistakes is often more powerful than learning from________.
a) Mentoring
b) Success
c) Failure
d) Process
6) ________ provides all types of help required to make the business more efficient and profitable.
a) Mediators
b) Consultants
c) Help Department
d) Government
7) Management is said to be the combination of three factors, arts, science and the third is
a) Retrenchment
b) Projection
c) Economics
d) profession
8) Motivating a worker is to create a need and what else on the part of a worker to better his present
performance.
a) Professionalism
b) Motivation
c) Desire
d) Delegation
9) One of the external factors that influence management is
a) Technology
b) Globalization
c) Economic
d) Legal
10) What does decoding mean?
a) Message Downloading
b) Message Exploring
c) Message interpretation
d) Message Decoding
Semester I Examination Paper
3
IIBM Institute of Business Management
Part Two:
1. Differentiate between ‘Administration’ and ‘Management’.
2. What were the common drawbacks in classical and Neo classical theories of management?
3. Write a short on ‘Retrenchment corporate strategy’.
4. Write a short note on ‘Acceptance theory’.
END OF SECTION A
Section B: Caselets (40 marks)
??This section consists of Caselets.
??Answer all the questions.
??Each caselet carries 20 marks.
??Detailed information should form the part of your answer (Word limit 200-250 words).
Caselet 1
Dairy Crest is one of the UK’s leading chilled Dairy foods company. It provides dairy spreads and
butters, cheese, milk and milkshakes products for the retail grocery trade and major food
manufacturers. Founded in 1981, it employs around 7,000 people and has a turnover of £ 1.3 billion.
Following a period of substantial growth and capital investment-which included the strategic
acquisitions of Unigate in 2000 and the St Ivel spread brands in 2002-Dairy Crest turned its attention
to the development of its key personnel.’ We went through a huge amount of change,’ said Gareth
Hopkins, Group HR Director. ‘People’s roles expanded and became more complex. We felt we
needed to provide more support to managers in the individual businesses and functional areas, so we
decided to commission a management and leadership skills development program’. Initially the
company planned to develop a program that would be appropriate for all managers but research
revealed that there were different needs at different levels. ‘It was clear that a single program
wouldn’t suffice, ‘said Judith Bufton, the company’s Management Development Manager. We
decided instead to develop two programmes: a leaders’ program for senior managers and a managers’
program for middle managers.
Roffey Park was appointed after Dairy Crest had discussed the two potential programmes with
five development providers. ‘We chose Roffey Park because we felt that they would be best not only
at providing the underlying learning but also in helping individuals to transfer the learning to the
workplace’, said Judith Bufton. They have excellent facilities at their residential centre and their
tutors are very professional and committed. They worked with us to develop the content and structure
of the program. Aimed at senior managers across the company, the Leaders’ Program aims to raise
leadership capability and to encourage participants to take a long-term view of the business. Twelve
senior managers are now undertaking the ten-day program, which is delivered in four modules, at
Roffey Park, over a period of 15 months. ‘In the fresh food industry, there’s precious little time to sit
back and think about where the business is going, ‘said Gareth Hopkins. ‘We wanted to make time to
provide strategic leadership skills training for our senior managers. ‘Dairy Crest has around 60 senior
managers.
Semester I Examination Paper
4
IIBM Institute of Business Management
The participants are selected for each cohort of the program by the company’s Trading Board,
which comprises the managing directors of the various business units. Before the programming
begins, Roffery Park runs a mentoring workshop for the participants and for members of the Trading
Board, who act as their personal mentors. The participants themselves then provide one-to-one
mentoring and coaching for those on the managers’ program. The Leaders’ Program starts with a twoday
Development Centre, which involves exercises based on Dairy Crest’s management competency
framework, 360 degree feedback and a personality questionnaire. Each participant uses this
information to review their own leadership style and behavior and to create their Personal
Development Plan.’ We were very keen to start the program with a Development Centre because this
enables the participants to think through their strengths and development needs at the outset, ‘said
Judith Bufton. ‘This information provides a base which they can use to guide their learning
throughout the program.’
The four modules, each lasting two days, are then delivered approximately three months apart.
The modules, designed specifically for Dairy Crest, cover leadership, strategy, managing change and
business finance. Some of the sessions are presented by Dairy Crest’s senior executives, which not
only focuses the learning on the practical business needs but also demonstrates the company’s
commitment to the program. The senior managers meet periodically in two Learning Sets-small
groups in which the individuals challenge and support each other-to share their learning and to work
on a business project. Facilitated by Roffey Park tutors, these meetings help to reinforce the more
formal learning on the modules. The program ends with a closing event where the learning Set groups
present their project recommendations-and their learning from the program- to senior executives. ‘We
were very keen to provide skills development for our line managers because we see them as a vital
link for unlocking people’s potential across the business,’ said Judith Bufton. Dairy Crest has around
400 managers at the target level. Its Managers’ Program aims to raise management capability by
improving core management and coaching skills. The first group of 16 middle managers is now
undertaking the six-day program. These participants were nominated by their managing directors but
for future cohorts, the managers will be able to nominate themselves. Delivered at Roffey Park, the
program is based on Dairy Crest’s management competency framework, which covers ten
competencies in four clusters; thinking skills, working with people, providing direction and delivering
results. It begins with a three-day Development Centre where participants assess their development
needs and review their preferred management style and behaviors. They then compile their own
Personal Development Plan. A few months later, the participants meet again for three days of
management skills training and group work on a business project. The sessions on this workshop are
tailored according to the development needs identified on the first workshop. Gareth Hopkins says
that one of the key benefits is that the two program bring people together from across the
organization. ‘Our one-to-one mentoring process has had a very positive impact as it encourages
people actively to pursue their personal development plans,’ she said. It has also helped to further
develop and strengthen relationships between managers at different levels.
1. Explain the two program developed by Dairy Crest with the help of Roffey Park to train their
managers at different levels.
2. Designing a training session involves the analysis of training needs and plan a training
program. Explain the aspects such as the content of training sessions, the training
methods, the trainer and trainee aspect in designing of a training session.
Semester I Examination Paper
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Caselet 2
Risks are enormous in the petroleum business. The price of raw materials can swing from $4 to $40
per unit, dictators can affect the business climate at will, and human error resulting in an oil spill can
cost $3 billion or more. Royal Dutch/ Shell, an Anglo-Dutch multinational corporation, has a
reputation for handling such risks well. Despite soft prices in the oil industry, mounting costs for
development of new fields, and greater environmental requirements, Royal Dutch/Shell has adopted a
growth strategy.
At Royal Dutch/Shell, pursuing growth amid uncertainty has led to significant rewards. In
1990, the company passed Exxon to become the world’s largest oil company. The company has
annual revenues exceeding $100 billion and is able to handle most of its capital spending through
cash flow. Still, weak oil and gas prices have made Shell’s operating profits somewhat flat over the
past decade. Because the company has continued to invest in exploration and new facilities that
cannot yield large immediate returns, Shell has been under pressure to cut costs in order to boost
profit levels and return on equity. Recently oil prices have improved somewhat, and the cost-cutting
efforts are beginning to have a positive effect on profit levels. Royal Dutch/Shell has developed
several approaches to help handle the uncertainties of the industry. Within a culture that encourages
individual initiative, until recently, approximately 260 operating units were generally free to make
their own decisions; with the help of service units that offer research and technical support. The
relative autonomy allowed managers of operating units, such as Shell Oil Company, a U.S.
subsidiary, to consider local conditions, monitor regularity requirements, and shift quickly to handle
customer needs or crisis. Both, to help with the cost cutting and to achieve better coordination, Shell
has recently instituted a more centralized approach whereby teams of senior executives oversee global
divisions such as exploration and production.
Strategic directions for Royal Dutch/Shell are determined by the committee of managing
directors. The six members are chosen from the top ranks of Royal Ditch Petroleum and Shell
Transport and Trading, the Dutch and the British holding companies that own Royal Dutch/Shell. The
committee operates on the basis of consensus; key strategic and personnel decisions must be
unanimous, and the focus is long-term. Shell uses three major mechanisms to deal with uncertainty:
geographic diversification, concentric product diversification, and speedy adaptation to change. For
example, Shell explores for oil and gas in about 50 countries, has refineries in 34, and sells its
products in 100. As a result, political or economic upheaval in a particular country cannot severely
damage the company. Shell expects particularly high returns in high-risk countries; otherwise it does
not do business there. In the area of product diversification, Shell stays close to the energy and
chemical businesses that it knows best(i.e., a concentric product diversification). Speed is also a key
factor. When Spain discontinued the state monopoly over service stations, Shell quickly began
developing a network of stations there.
Shell’s managing directors try to identify changes in the industry by studying and debating
scenarios prepared by their planning department. The scenarios attempt to depict reasonable, but
alternative pictures of conditions in the world 10 years in the future. Each of the geographic regions
and operating companies then uses the scenarios to formulate its own strategies within the overall
strategic plan. Supplementing the scenario process, war gaming helps Shell handle the unexpected.
For example, local operating companies are expected to stimulate supply disruptions and prepare
alternatives. As a result, when the Gulf war disrupted supplies from the Middle East, Shell was able
to quickly redirect alternative supplies. Shell is currently being severely criticized by some
shareholders and activists for polluting the environment around the Niger delta in Nigeria and for
supporting Nigeria’s military dictatorship by continuing to work in some parts of the country. Shell
has admitted that its environment standards in the country were not as high as elsewhere and has
offered to clean up the area, but does not want to abandon all of its operations in Nigeria. Cor
Semester I Examination Paper
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IIBM Institute of Business Management
Herkstroker, Shell’s Dutch President, says: “We want a constructive solution. Leaving Nigeria
doesn’t get you that. It is much more constructive to stay there and do the right things, such as
reconciliation.
1. What evidence exists that Shell uses an effective decision-making process in making various
decisions? What were the various problems with decision-making?
2. Explain how scenarios help Shell’s managing directors engage in divergent thinking? Discuss the
limitations of such an approach?
END OF SECTION B
Section C: Applied Theory (30 marks)
??This section consists of Long Questions.
??Answer all the questions.
??Each question carries 15 marks.
??Detailed information should form the part of your answer (Word limit 150-200 words).
1) General Electric was composed of one hundred businesses, before Jack Welch became the CEO.
When he became the CEO he streamlined the organization by selling businesses and acquired
new ones. He recreated the organization and made it a profitable firm in the world. Thus Jack
Welch became the greatest Transformational leader in the world. What makes a
Transformational leader so?
2) What are the different precautions should be taken by a job seeker while attaining
interviews?
END OF SECTION C
---------------------------------------------------------****-----------------------------------------------------------

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Examination Paper: Portfolio Management
1
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Portfolio Management
Section A: Objective Type (30 marks)
•?This section consists of Multiple Choices questions & short note questions.
•?Answer all the questions.
•?Part one questions carry 1 mark each & Part Two questions carry 4 marks each.
Part One:
Multiple Choices:
1. _________ is the market for issue of new securities.
a. Secondary Market
b. Consumer Market
c. Primary Market
d. Stock Market
2. Inflation is measured in terms of either wholesale price or_______.
a. Face Value
b. Retail Prices
c. MRP Value
d. Tax Value
3. _______ is basically a channel through which the savings of investors are made available to
corporations for investment.
a. Consumer Market
b. Stock Market
c. Retail Market
d. Whole sale Market
4. The share premium reserve is the amount paid by the ______ in excess of the par value of the
shares.
a. Shareholders
b. Stakeholders
c. Tax payers
d. Employees
5. _______ measures the return on sales and assets of the firm.
a. Liquidity Ratios
b. Turnover Ratios
Examination Paper: Portfolio Management
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IIBM Institute of Business Management
c. Common Stock Ratios
d. Profitability Ratios
6. In which of the following chart, the closing price for each period is plotted as a point?
a. Line Chart
b. Bar Chart
c. Point and Figure Chart
d. R- Chart
7. Capital gains or losses arise when the investors sells his securities at a price____.
a. Similar from the Cost
b. Different from the Cost
c. Different from the Profit
d. Similar from the Loss.
8. A steep rise in price, followed by wide uniform fluctuations around an average price lead to
formulation of a ______.
a. Channel
b. Triangle
c. Flag
d. Wedge
9. CML stands for______.
a. Capital Market Life
b. Cost Market Line
c. Capital Market Line
d. Capital Measurement Line.
10. The security return on any day is defined as:-
a. Today’s Return = Today’s Price + Yesterday’s Price
Yesterday’s Price
b. Today’s Return = Today’s Cost?yesterday’s Cost
Yesterday’s Price
c. Today’s Return = Today’s Price + Today’s Cost
Yesterday’s Price
d. Today’s Return = Today’s Price ? yesterday’s Price
Yesterday’s Price
Examination Paper: Portfolio Management
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IIBM Institute of Business Management
Part Two:
1. Discuss the characteristics of Stock Exchange in India.
2. Describe the Dow Theory.
3. Write a short note on Capital Market Line.
4. Mr. X has put Rs. 9000 in a five – year fixed deposit account with a bank. If the bank pays
interest at the rate of 15% per annum how much money would Mr. X receive on maturity of the
deposit?
5. Mr. Robert bought 90 shares of ICA Fertilizers Ltd. at Rs. 59 each on 1/1/2008. On 1/6/2008, the
company issued bonus shares in the ratio of 1:2. On 1/1/2010 Robert sold 35 of the bonus shares
for Rs. 78. What is the capital gain made by him ignoring indexation?
Section B: Case lets (40 Marks)
•?This section consists of Case lets.
•?Answer all the questions.
•?Each case lets carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Case let 1
The stock market has a method in its madness. Behind the turbulence evident in the market behavior of
the last two years was the revival of the concept ‘big is beautiful’. Being ‘lean and mean’ may be the
management pundits prescription for success in the product market, but the capital market prefers ‘big’
companies and ‘big’ here refers to market capitalization. Large-cap companies are the safest bets for
appreciation in equity values.
Hindustan Lever’s market capitalization grew from a mere Rs. 9,071 crore in 1996 to Rs. 44,838 crore in
1999- a compounded annual growth rate of a little over 70 percent. This growth was achieved largely by
the market pegging the company’s share at a higher value from time to time rather than any infusion of
fresh capital by its shareholders. The collective market cap of top 50 Indian companies went up around
six times- from Rs. 27,475 crore in January, 1996 to Rs. 1,64,973 crore now, that is a compounded annual
growth of nearly 80 percent. In contrast, the market capitalization of all listed stocks on the Bombay
Stock Exchange grew only 15 percent.
Investments in the shares of these companies are coveted for the wealth gains they fetch for the investors.
Profit earned on a unit of share capital would, then offer the best prospects. But the problem with
choosing investment candidates based on current profitability is the risk of these companies not being
able to sustain the level of profits. In an intensely competitive world, with many players jostling for
consumer attention, a small company is particularly vulnerable a predatory attack on its market by a
larger player, however, profitable it may be at the present juncture. In fact, the more profitable it may be
END OF SECTION A
Examination Paper: Portfolio Management
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IIBM Institute of Business Management
at the present juncture. In fact the more profitable it is, the greater the risk of such an attack. As the attack
on its market intensifies, the company responds by price cuts, product promotion and other tactics, all of
which cost money without any guarantee of success.
Soon the company begins to slip on profitability and investor fancy. Rather than wait for a price decline
to exit from the scrip, a long-term investor would be better off investing in companies that are large and ,
by extension, less vulnerable.
Size is a function of the asset base of a company. Assets are financed by a combination of debt and
equity. In the short run, the relationship between debt and equity may be expected to be stable. Hence size
can be measured by reference to the growth in equity capital. As the equity base expands, so must the
company’s market capitalization, price remaining constant. Therefore, it is appropriate that market
capitalization is used to measure corporate size.
Large market cap companies have a greater ability to acquire other companies, take advantage of growth
opportunities, and protect themselves from takeover bids. On the other hand, low market cap companies
must accept lower valuations and be prepared for hostile takeover bids from larger cap companies, unless
they achieve critical mass through mergers and acquisitions.
Questions:
1. Analyze the characteristics of companies which have a small asset base and a low ratio of Market
to book Value?
2. Market capitalization of a company is a product of number of outstanding shares and the current
market price. Since the current market price (CMP) of the stock does not remain constant, is
investing for a long-term in a company looking at its present market value a good guiding
principle? Explain.
Case let 2
Whenever there is a plea for tax concessions for dedicated gilt funds, the government raises the bogey of
principles of high public finance. It is argued that concessions do not make for an optimal tax system and,
therefore, should not be provided to dedicated gilts.
Now what does one make out of this schizophrenic response of the government? The only explanation is
that, the government, to prove its sense of fair play, hates gilts which is its own instrument, and to doubly
prove the point, resorts to sell- flagellation. This sounds harsh but the action of government belies all
logic.
Questions:
1. Why is the government reluctant to provide concession or remove tax on dividends declared by
dedicated gilt funds?
2. How can dedicated gilt funds be used to develop a retail segment for government securities?
3. If dedicated gilt funds are exempted from income tax for individuals, what will be the
implications of such measures on the retail gilt market?
END OF SECTION B
Examination Paper: Portfolio Management
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IIBM Institute of Business Management
Section C: Applied Theory (30 Marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 10 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 Words)
1. Discuss the concept of Portfolio Insurance.
2. Discuss the fundamental notions of modern portfolio theory.
3. Consider a Rs. 50 crores mutual funds floated on 1-1-2003 with a life of 8 year. The fund
estimates that its annual outflow on account of dividend, operating and management costs would
amount to Rs.15.5 crores. Suppose that the rate of interest is 16%. What is the target duration for
this mutual fund?
END OF SECTION C

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IIBM Institute of Business Management
Examination Paper MM.100
Project Management in IT
Section A: Objective Type (30 marks)
•?This section consists of multiple choice questions and short notes type questions.
•?Answer all the questions.
•?Part One questions carry 1 mark each and Part two questions carry 5 marks each.
Part One:
Multiple choices:
1. The knowledge areas of Project Management Process Group are:
a. Planning and Initiating
b. Executing and Closing
c. Monitoring and Controlling
d. All of the above
2. To create a successful project, a project manager must consider:
a. Scope
b. Time
c. Cost
d. All of the above
3. Which one of the following is not involved in the top ten skills or competencies of an effective
project manager:
a. People skills
b. Leadership
c. Integrity
d. Technical skills
4. Another name of a phase exit is a _______ point.
a. Review
b. Stage
c. Meeting
d. Kill
5. Which process group includes activities from each of the nine knowledge areas?
a. Initiating
b. Planning
c. Executing
d. Closing
Examination Paper: Project Management
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IIBM Institute of Business Management
6. The project team works together to create the ______.
a. Scope statement
b. WBS
c. WBS dictionary
d. Work package
7. __________ is a network diagramming technique used to predict total project duration.
a. PERT
b. A Gantt chart
c. Critical Path Method
d. Crashing
8. Which of the following is not a key output of project cost management:
a. A cost estimate
b. A cost management plan
c. A cost baseline
d. None of the above
9. CMMI Stands for:
a. Capability Maturity Model Integration
b. Complex Maturity Model Integration
c. Common Maturity Model Information
d. Capability Maturity Model Information
10. A proposal evaluation sheet is an example of:
a. RFP
b. NPV analysis
c. Earned value analysis
d. Weighted scoring model
Part Two:
1. Define Product Life Cycle.
2. What is Project Integration Model?
3. Write a note on Gantt charts.
4. What is Project Quality Management?
END OF SECTION A
Examination Paper: Project Management
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IIBM Institute of Business Management
Section B: Caselets (40 marks)
•?This section consists of Caselets.
•?Answer all the questions.
•?Each Caselet carries 20 marks.
•?Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
A preliminary estimate of costs for the entire project is $140,000. This estimate is based on the
project manager working about 20 hours per week for six months and other internal staff working a
total of about 60 hours per week for six months. The customer representatives would not be paid for
their assistance. A staff project manager would earn $50 per hour. The hourly rate for the other
project team member would be $70 per hour, since some hours normally billed to clients may be
needed for this project. The initial cost estimate also includes $10,000 for purchasing software &
services from suppliers. After the project is completed, maintenance costs of $40,000 are included
for each year, primarily to update the information and coordinate the “Ask the Expert” feature and
online articles. Projected benefits are based on a reduction in hours consultants spend researching
project management information, appropriate tools and templates, and so on. Projected benefits are
also based on a small increase in profits due to new business generated by this project. If each of
more than 400 consultants saved just 40 hours each year (less than one hour per week) and could bill
that time to other projects that generate a conservative estimate of $10 per hour in profits, then the
projected benefit would be $160,000 per year. If the new intranet increased business by just 1
percent, using past profit information, increased profits due to new business would be at least
$40,000 each year. Total projected benefits, therefore, are about $200,000 per year.
Exhibit A summarizes the projected costs and benefits and shows the estimated net percent value
(NPV), return on investment (ROI), and year in which payback occurs. It also lists assumptions
made in performing this preliminary financial analysis. All of the financial estimates are very
encouraging. The estimate payback is within one year, as requested by the sponsor. The NPV is
$272,800, and the discounted ROI based on a three-year system life is excellent at 112 percent.
Discount rate 8%
Assume the
project is done
in about is
months
Year
0 1 2 3 Total
Costs 140,000 40,000 40,000 40,000
Discount
factor
1 0.93 0.86 0.79
Discounted
costs
140,000 37,037 34,294 31,753 243,084
Benefits 0 200,000 200,000 200,000
Discount
factor
1 0.93 0.86 0.79
Discounted
benefits
0 186,185 171,468 158,766 515,419
Discounted (140,000) 148,148 137,174 127,013
Examination Paper: Project Management
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IIBM Institute of Business Management
benefits –
costs
Cumulative
benefits-costs
(140,000) 8,148 145,322 272,336 NVP
Payback in
year 1
Discounted
life cycle
ROI----?
112%
Assumptions
Costs #hours
PM (500hours,
$50/hour)
25,000
Staff (1500
hours,
$70/hour)
105,000
Outsourced
software &
services
10,000
Total project
costs (all
applied in year
0)
140,000
Benefits
# consultants 400
Hours saved 40
$/hour profit 10
Benefits from
saving time
160,000
Benefits from
1% increase in
profits
40,000
Total annual
projected
benefits
200,000
Questions:
1. What according to you are the factors that can hamper the profit growth related with the
project?
2. Mention some strategies to further improve the project’s turnover.
Examination Paper: Project Management
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IIBM Institute of Business Management
Caselet 2
Many organizations spend a great deal of time and money on training efforts for general project
management skills, but after the training, project managers may still not know how to tailor their
project management skills to the organization’s particular needs. Because of this problem, some
organizations develop their own internal information technology project management methodologies.
The PMBOKR Guide is a standard that describes best practices for what should be done to manage a
project. A methodology describes how things should be done, and different organizations often have
different ways of doing things. For example, after implementing a systems development life
cycle (SDLC) at Blue Cross Shield of Michigan, the Methods department became aware that
developers and project managers were often working on different information technology project in
different ways. Deliverables were often missing or looked different from project to project. They may
have all had a project charter, status report, technical documents (i.e., database design documents,
user interface requirements, and so on), but how they were producing and delivering these
deliverables was different. There was a general lack of consistency and a need for standards to guide
both new and experienced project managers. Top management decides to authorize funds to develop a
methodology for project managers that could also become the basis for information technology
project management training within the organization. It was also part of an overall effort to help raise
the company’s Software Capability Maturity Model level. BlueCross BlueShield of Michigan
launched a three-month project to develop its own project management methodology. Some of the
project team members had already received PMP certification, so they decided to base their
methodology on the PMBOKR Guide 2000, making adjustment as needed to best describe how their
organization managed information technology projects. See a complete article on this project on the
companion Web site for this text. Also see the Suggested Reading to review the State of Michigan
Project Management Methodology, which provides another good example of an information
technology project management methodology. Many organizations include project management in
their methodologies for managing Six Sigma projects. Other organizations include project
management in their software development methodologies, such as the Rational Unified Process
(RUP) framework. RUP is an interactive software development process that focuses on team
productivity and delivers software best practices to all team members. According to RUP expert Bill
Cottrell, “RUP embodies industry-standard management and technical methods and techniques to
provide a software engineering process particularly suited to creating and maintaining componentbased
software system solutions,” Cottrell explains that you can tailor RUP to include the PMBOK
process groups. Specifically, IBM Rational, the creators of RUP, found that it could adjust RUP input
artifacts with PMBOK process inputs, RUP steps with PMBOK process tools and techniques, and
RUP resulting artifacts with PMBOK process outputs.
Questions:
1. According to you what are the skills that needed for the project management of an organization?
2. How the six sigma project became a helpful tool in very sophisticated kind of project
management?
END OF SECTION B
Examination Paper: Project Management
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IIBM Institute of Business Management
Section C: Applied Theory (30 marks)
•?This section consists of Applied Theory Questions.
•?Answer all the questions.
•?Each question carries 15 marks.
•?Detailed information should form the part of your answer (Word limit 200 to 250 words).
1. What is cost? What is the importance of Project cost Management and explain basic principles of
Cost Management.
2. Define the following:
a. Resource Histograms
b. Project Communication Management
END OF SECTION C
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