OU-MBA(Day) 3rd Semester Syllabus

OU-MBA(Day) 3rd Semester Syllabus

3.1: Total Quality ManagementUnit-I: TQM- History and Evolution:
Connotations of Quality, Quality Dimensions – Product and Se rvice. The concept of TQM, Evolution of TQM – Inspection, SQC, QA and TQM. Conventional quality management versus TQM. Customer supplier focus in TQM. Benefits and Costs of TQM. Historical perspectives of TQM. Quality System Awards and Guidelines – ISO, Malcolm Baldrige Nationa l Quality Award (MBNQA), European Foundation for Quality Management (EFQM).
Unit – II: Tools of TQM:
Measurement Tools: Check Sheets, Histograms, Run Charts, Scatter Diagrams, Cause and Effect Diagrams, Pareto’s Chart, Process Capability Measurement. Analytical Tools: Process Mapping, Regression Analysis, Resource Utilization and Customer Se rvice Analysis, The Five Why’s, Overall Equipment Effectiveness. Improvement Tools and techniques: Kaizen, JIT, Quality Circles, Forced field Analysis, Five S’s. Control Tools: Gantt Chart, Network Diagram, Radar Chart, The PDCA cycle, Milestone Tracker Diagram and Earned Value Management.
Unit – III: Techniques of TQM:
Quantitative techniques: Failure Mode Effect Analysis (FMEA), Statistical Process Control (SPC), Quality Function Deployment (QFD), Design of Experiments (DOE), Quality by Design and Monte Carlo Technique (MCT). Qualitative techniques: Benchmarking, The Balanced Scorecard, Sales and Operations Planning, Kanban and Activity Based Costing (ABC). Taguchi methods: Quality loss function, Orthogonal arrays, Signal-to-Noise ratio: Nominal- the- best, Target-the-best, Smaller-the-best, Larger-the-best. Parameter design, Tolerance design.
Unit – IV: Six Sigma:
The concept of Six Sigma, Objectives of Six Sigma, The frame-work of Six Sigma programme, Six Sigma Organization: roles and responsibilities, Six Sigma problem solving approach: The DMAIC model, Six Sigma Metrics: Cost of poor quality, Defects per million opportunities and First pass yield. Benefits and costs of Six Sigma.
Unit –V: TQM in the Service Sectors:
Implementation of TQM in service organization: Framework for improving service quality, Model to measure service quality programs. TQM in Health-care services, Hotels and financial services –Banks, Investment Company and Mutual Funds.
Suggested Books:
1. John L. W. Beckford, “Quality: A Critical Introduction”, 3r d Ed. Routledge – Taylor and Frances Group, New York and London.
2. Dale H. Besterfield, Carol Besterfield - Michna, Glen H Besterfield and Mary Besterfield-sacre, “Total Quality Management”, 2006, 3r d Ed. PHI.
3. Ron Basu, “Implementing Quality: A Practical Guide to Tools and Techniques”, 2006, THOMPSON.
4. Greg Brue, “Six Sigma for Managers”, 2002, TMH.
5. R. P. Mohanty & R. R. Lakhe, “TQM in the Service Sector”, Jaico Books.
6. Kanishka Bedi, “Quality Management”, Oxford University Press.
7. Howard S Gitlow, Alan J Oppenheim, Rosa Oppenheim and David M Levine, “Quality Management”, Tata McGraw-Hill, 3r d Ed.
8. Sunil Sharma, “Total Engineering Quality Management”, 2003, Macmillan India Ltd.
9. Poornima M Charantimath, “Total Quality Management”, 2003, Pearson.
10. Mukherjee, P N, “Total Quality Management”, 2007, PHI.
11. “The Six Sigma Instructor Guide”, Green belt Training made easy, 2008, 2n d Ed. Macmillan
12. Kanji K. Gopal & Asher Mike, “100 methods for TQM’, Response.

3.2: International BusinessUnit - I: Global Imperative:
An overview–International Business: A global perspective–Emergence of Globalization–Drivers of Globalization–Internationalization Process–Stages in International Business–Approaches to International Business; The World of International Business: Regional and Global Strategy–The Multina tional Enterprise–Triad and International Business–International Trade Theories; Environment of Internat ional Business-Cultural Environment and Political Environment.
Unit - II: Glob al Business & National Regulation:
Rationale for Government Intervention–Forms of Trade Regulation at National Level-Tariff and Non-Tariff Barriers. Regional Economic Integration: Levels of Economic Integration–Benefits & Costs of Economic Integration-Major Trading Blocks: EU, NAFTA, ASEAN and SAAR C. Multilateral Regulation of Trade and Investment-Basic Principles of Multilateral Trade Negotiations–GATT and its early Rounds–World Trade Organization–Structure and functions–TRIPs & TRIMs-WTO & India–UNCTAD.
Unit – III: Global Business and Entry Strategies:
Global Market Entry Strategies–Exporting, Licensing, Franchising, Contract Manufacturing,
Assembly and Integrated Local manufacturing. Global Ownership Strategies: Strategic Alliance–Types of Strategic Alliances–Selection of Strategic Alliance Partner, managing and sustaining Strategic Alliance–Cost and Benefit Analysis of Entry Strategies: Entry Analysis and Entry strategy configurati on.
Unit – IV: Global E-Business:
Conceptual Framework of E-business–Prerequisites for Effective E-business Transactions–E-enabled Business Process Transformation and Challenges–E-business Technology and Environment–E-Business Applications–E- Business Models–Alternative E-business Strategi es–Global E- Marketing –Electronic Processing of International Trade Documents – Policy Framework for Global E-business
Unit - V: Managing Global Busines s:
Strategy and Global Organization -Global Strategic Planning–Going Global and Implementing Strategies–Intercultural Communications–Intercultural Human Resources Management in Global Context.
Suggested Books:
1. Charles W.K Hill, and Arun K. K. Jain, “International Business, - Competing in the Global Market Place”, 2010, 6t h Ed. Tata McGraw Hill. S. Tamer Cavusgil, Gary Knight, JohnR. Riesenberger, 2010, Pearson Ed.
2. Michael R. Czinkota, LLkk. A. Ronkainen and Michael H. Moffett, “International Business”, 2009, 7th Ed, Cengage Learning, New Delhi.
3. Alain Verbeke, “International Business Strategies” 1st edition, 2009, Cambridge
4. Rakesh Mohanh Joshi, “International Business”, 2009, Oxford University Press.
5. David H. Holt and Karen W. Wigginton, “International Management”, 2007, Thomson.
6. Jeanett and Hennessey, “Global Marketing Strategies”, 2005, Jaico, New Delhi.
7. Subba Rao, 2007, “International Business”, 2010, Himalaya Publications, New Delhi.
8. Bholanath Dutta, “International Business Management”, 2010, Text & Cases, Excel, New Delhi.
9. John D. Daniels & Lee H. Radebaugh, “International Business”, 2006, Pearson Education.
10. Hodgetts, Luthans and Doh, “International Management Culture, Strategy and Behaviour”, 2006, Tata McGraw-Hills, New Delhi.
11. Anan t. K. Sundaram and J. Stewart Black, “The International Business Environment”, 2009, Test and Cases, PHI Learning, New Delhi.
12. Pradip Kumar Sinha and Sanchari Sinha, “International, Business Management”, 2008, Excel, New Delhi.
13. Mike W. Peng, “International Business”, 2008, Cengage Learning, New Delhi.
14. Aswathappa, K, “International Business”, 2010, Tata McGraw Hill, New Delhi.
15. Nag. “International Business Strategy”, 2010, Vikas.
16. Mamah Adhilcary, “Global Business Management”, 2009, Macmillan.

3.3: Managerial CommunicationUnit – I:
The role of and process of communication. Barriers to communication Surmounting barriers to communication, Types of communication; Listening process–Elements of good listening–improving listening competence. Importance of feedback – Principles of feedback
Unit – II:
Characteristics of non verbal communication–Types and functions of non verbal communication–Interpreting non verbal communication; Negotiations-Approaches to negotiations–Preparing for and conducting negotiations
Unit – III:
Making Presentations–Choosing a method of speaking–Anal yzing the audience–Nonverbal
dimensions of presentations–Speeches for commemorative occasions–Effective presentation
strategies. Persuasive speaking
Unit – IV:
Report writing–Types of reports–Structure of reports–Individual and committee reports–Essentials of good report writing. Business letters–Drafting letters relating to enquiries and replies; orders and replies; complaints and claims. Effective business correspondence . drafting a resume
Unit – V:
Media relations–Building better relations with media. Investor relations–Framework for managing investor relations. Managing government relations–ways and means of managing governing power. Crisis communication–Do’s and dont’s in the wake of a crisis.
Suggested Books:
1. Penrose, Rasberry and Myers, “Business Communication for Managers”, Cengage Learning.
2. Kathleen Fearn-Banks, “Crisis Communications, A Casebook Approach”, Routledge.
3. Mary Munter, “Guide to Managerial Communication” 6th Ed Pearson Education.
4. Lesikar, R.V. and M.E. Flatley, “Basic Business Communication”, 2008 11th Ed. New York,McGraw-Hill.
5. Disanza, “Business and Professional communication”, Pearson Education.
6. CSG Krishnamacharyalu and L.Ramakrishnan, “Business Communications”, 2009, Himalaya Publishing House.
7. Paul A Argenti, “Strategic Corporate Communications”, Tata McGraw Hill
8. Krizan, Merrier, Logan and Williams, “Effective Business Communicati on”, 2008 Cengage Learning.
9. Paul R.Timm, “Straight Talk: Written communication for career success”, Routledge
Publication.
10. David Irwin, “Effective Business Communications”, 2009, Vi va Books.
11. Kelly Quintanilla and Shawn T Wahl, “Business and Professional communication”, Sage
Publications.
12. U S Rai & S M Rai, “Business Communication”, Himalaya Publishing House.

3.4.1. (F): Investment ManagementUnit – I: Investments:
Concept; Real vs. Financial assets; Investment decision process; Sources of investment-
information; Investment vs. Speculation; Factors t o be considered in investment decision-Liquidity, Return, Risk, Maturity, Safety, Tax and Inflation. The concept and measurement of return-realized and expected return. Ex-ante and ex-post returns. The concept of risk. Sources and types of risk. Measurement of risk-Range, Standard Deviation and Co-Efficient of Variation. Risk-return trade-off. Risk premium and risk aversion. Approaches to investment analysis-Fundamental Analysis; Technical Analysis; Efficient Market Hypothesis, Behavioural Finance and heuristic driven biases.
Unit – II: Fixed Income Securities - Analysis, Valuation and Management:
Features and types of debt instruments, Bond indenture, factors affecting bond yield. Bond yield measurement-Current yield, holding period return, YTM, AYTM and YTC. Bond valuation: Capitalization of income method, Bond-price theorems, Valuation of compulsorily / optionally convertibl e bonds, Valuation of deep discount bonds. Bond duration, Macaula y’s duration and modified Macaulay’s duration. bond convexity, Considerations in managing a bond portfolio, term structure of interest rates, risk structure of int erest rates. Managing Bond Portfolio: Bond immunization, active and passive bond portfolio management strategies.
Unit – III: Common Stocks - Analysis and Valuation:
Basic Features of Common Stock, Approaches to valuation–Balance sheet model, dividend
capitalization models; earnings capitalization models; Price-Ea rnings multiplier approach and capital asset pricing model, Free Cash flow model, relative valua tion using comparables-P/E,P/BV, P/S; Security Market Indexes, their uses; computational procedure of Sensex and Nifty.
Unit – IV: Portfolio Theory:
Concept of portfolio. Portfolio return and risk. Harry Markowitz’s Portfolio theory, construction of minimum risk portfolio, the single-index model. Capital market theory: Introduction of risk-free asset, Capital Market Line, Separation theorem. Capital asset pricing model (CAPM): Security Market Line. Identifying over-priced and under-priced securities. Arbitrage pricing theory (APT): The Law of one price, two factor arbitrage pricing, Equilibrium risk-return relations. A synthesis of CAPM and APT.
Unit – V: Portfolio Evaluation:
Performance measures-Sharpe’s reward to variability index, Treynor’s reward to volatility index, Jensen’s differential index, Fama’s decomposition of returns. Mutual funds: genesis, features, types and schemes. NAVs, costs, loads and return of mutual funds, Problems and prospects in India, Regulation of mutual funds and investor’s protection in India.
Suggested Books:
1. Alexander. G.J, Sharpe. W.F and Bailey. J.V, “Fundamentals of Investments”, PHI, 3r d Ed.
2. Zvi Bodie, Alex Kane, Marcus.A.J, Pitabas Mohanty, “Investments”, TMH, 8t h Ed.
3. Prasanna Chandra, “Investment Analysis and Portfolio Management”, TMH, 3r d Ed.
4. Charles.P.Jone s, “Investments: Analysis and Management”, John Wiley &Sons, Inc. 9t h Ed.
5. Francis. J.C. & Taylor, R.W., “Theory and Problems of Investments”. Schaum’s Outline Series, McGraw Hill
6. Herbert. B. Mayo, “Investments: an Introduction”, Thomson – South Western. 9th Ed.
7. Peter L. Bernstein and Aswath Damodaran, “Investment Management”,Wiley Frontiers in Finance.
8. Dhanesh Khat ri, “Security Analysis and Portfolio Management”, 2010, Macmillan Publishers.
9. Sudhindra Bhat, “Security Analysis and Portfolio Management”, 2009, Excel Books.
10. Preeti Singh, Investment Management, 2010, HPH, 17t h Revised Edition.
11. Stephen A. Ross, Randolph Westerfield, and Jeffrey Jaffe, “Corporate Finance”, TMH.
12. S. Chand “Investment Management: Security Analysis & Portfolio Management”.
13. S. Kevin, “Analysis and Portfolio Management”, PHI.
14. Punithavathy Pandian, “Security Analysis and Portfolio Management”, Vikas Publishing House
15. Donald E. Fisher and Ronald J. Jordan: “Securities Analysis and Portfolio Management”,
Prentice Hall.
16. Graham & Dodd, “Security Analysis and Portfolio Management”, McGraw Hill.
17. Jack Clark Francis, “Investment”, TMH, New Delhi.

3.4.2. (F): Strategic Management AccountingUnit – I: Introduction to Management Control:
Strategic Management accounting–Meaning–Scope–Strategic importance–nature and
characteristics of Management Control system. Cost behaviour and decision making–Fixed and variable costs–C.V.P analysis–Marginal Costing-Concept of break even analysis–Uses for decision making–Optimization of product mix–Make or buy–Capacity Utilization–Plant shutdown–Key factor analysis.
Unit – II: Strategic Planning and Control & Accounting for Control:
Strategic Planning, Management Control and Operational Control–Meaning and Concept and purpose. Standard costing–Concept and purpose of standards–types of standards–Standard setting–Variance analysis–Interpretation-Budgetary control–Meaning & purpose–Component of effective budgeting program–Performance budgeting–Zero based budgeting–Concept–Import ance and relevance.
Unit – III: Responsibility Accounting:
Responsibility Centers–Need for divisionalization–types of responsibility centers–Performance reports–responsibility accounting–Behavioural aspects–Segmented Performance evaluation–Transfer Pricing.
Unit – IV: Activity based Costing and Customer account profitability analysis :
Activity based costing systems–Meaning–tracing costs from activities to products and services–Activity based Management–Activity Cost drivers–Activity based Costing vs traditional costing. Customer account profitability analysis–Meaning and need for CAP analysis–Managing Customer Profitability Managing Relationships–Customer Costs in Service Companies.
Unit – V: Strategic decisions for Prod uct life cycle, Activity Based Costing and
Competitor analysis:Product life cycle costing–PLC assessment–Cost assessment–Pricing and evaluation criteria for products at different stages of PLC. Competitor accounting–Concept and Importance–Sources of Competitor information–Competitive pricing and bidding. Target Costing and Cost analysis for Pricing decisions.
Suggested Books:
1. Hansen& Mowen, “Management Accounting”, 2009, 7th ed. Cengage Learning, New Delhi.
2. Bamber, Braun & Harrision, “Managerial Accounting”, 2009, Pearson Ed, New Delhi.
3. Ronald.W.Hilton, G.Ramesh&M.Jayadev, “Managerial Accounting”, 2008, Tata McGraw-Hill.
4. Ward. K, “Strategic Management Accounting”, 2010, Butterworth Heinemann, New Delhi.
5. Edward J. Blocher, Kung H. Chen, Gary Cokins and Thomas W. Lin, “Cost Management-A strategic Emphasis”, 2006, Tata McGraw Hill.
6. “Management Control System”, Anthony & Deardon,
7. Asish K. Bhattacharya, “Cost Accounting for Business Managers, Elsevier”, 2009, New Delhi.
8. Garrison, Noreen and Brewer, “Managerial Accounting”, 2009, Tata McGraw Hill.
9. S.C. Vaidya, Suveera Gill, “Cost Management–A Strategic Approach”, 2009, Macmillan India.
10. Sudhindra Bhat, “Management Accounting”, 2009, Excel Books, New Delhi.
11. Paresh Shah, “Management Accounting”, 2010, Oxford University Press, Publications
12. M. C. Shukla, T.S. Grewal and M.P. Gupta, “Cost Accounting – Test and Problems”, 2010, S. Chand.
13. Atkinson. A.A., Kaplan. R.S., and Young S.M., G. Arun Kumar, “Management Accounting”, 2009, IV edition, Pearson/ Prentice Hall of India.
14. Khan M.Y. and Jain. P.K., “Management Accounting – Text, Problems and cases”, 2007, 4t h edition, Tata McGraw Hill, New Delhi.
15. M.A. Sahaf, “Management Accounting – Principles and Practice”, 2009, Vikas, New Delhi.
16. James Jiambalvo, “Managerial Accounting”, 2004, John Wiley & Sons, Inc.
17. Colin Daury, “Management and Cost Accounting”, 2009, Cengage Learning, New Delhi.

3.4.3. (F): International FinanceUnit - I: International Financial System:
Evolution of international financial system–gold standard, Breton woods standard, floating
exchange rate; currency board, sterilized and unsterilized intervention; int ernational financial markets-Eurocurrency market, international bond market, int ernational equit y market,international money market; global financial institutions–IMF, Bank for International Settlements; international banking-euro bank, type s of banking offices-correspondent bank, representative office, foreign branch, subsidiary bank, offshore bank; international financial instruments–euro CP, Eurobonds, foreign bonds, global bonds, euro equity, ADR, GDRs
Unit - II: Foreign Exc hange Market and International Parity Relationships:
Participants in foreign exchange market, structure of foreign exchange market in India; quotes in spot market and forward market, triangular arbitrage; nominal effective exchange rate (NEER), real effective exchange rate (REER); currency derivatives–forwards, futures, forward rate agreement, options, swaps; Foreign Exchange Management Act ; BOP, BOP trends in India; current account convertibility, capital account convertibility, Tara pore Committ ee Report; Parity Conditions- Purchasing Power Parity, Interest Rate Parity, International Fisher Effect, Unbiased
Forward Rate Theory. International debt crises and currency crises-Asian currency crisis, Greek debt crisis.
Unit - III: Multinational Corporate Decisions in Glob al Markets:
Foreign investment decision-Foreign direct investment (FDI)–motives, FDI theories-theory of comparative advantage , OLI paradigm of FDI in India, modes of foreign investment–licensing, management contracts, joint venture, Greenfield investment, acquisition, strategic alliance, evaluation of overseas investment proposal using APV; Financial goals of MNC, financial performance measurement, international cash management, multinational capital structure decision, cost of capital , international portfolio diversification- rationale, barriers, home country bias, project financing
Unit - IV: Risk Management in Multinational Corporations:
Types of risk-currency risk, transaction exposure, translation exposure, accounting standard for translation exposure in India, economic exposure and assessment; interest rate risk, country risk assessment–political risk, financial risk; risk management through hedging-natural hedges, hedges with currency derivatives–forward market hedge , options market hedge, money market hedge, hedging recurre nt exposure through swaps, hedging contingent exposure, hedging t hrough invoice currency

Unit - V: International Tax Environment: Types of tax–income tax, withholding tax, value added tax, Tobin tax; taxation methods–
worldwide approach, territorial approach; tax havens, offshore financial centres, reinvoicing centre; Tax treaties-Double taxation Avoidance agreement, multilateral tax treaties; foreign tax credit, tax neutrality tax equity, taxes and the location of foreign operations, tax implications of dividend remittance by overseas affiliate, taxes and organizational form–controlled foreign corporation; Taxation of foreign source income in India; Transfer pricing (TP) and tax planning–TP methods, TP rules in India
Suggested Books:
1. Eun C.S., Resnick B.G., “International Financial Management”, 2010, Tata McGraw Hill
Education Pvt. Ltd., 4th Ed. Special Indian Edition.
2. Levi M., “International Finance”, 2009, 5th Ed. Routledge, Taylor & Francis Group.
3. Shailaja G, “International Finance”, 2010, 2n d Ed. Orient Black’swan.
4. Hendrik Van den Berg, “International Finance and Open Economy Macro Economics”, 2009,
1s t Ed. Cambridge.
5. Sharan V., “International Financial Management”, 2009, 5th Ed. PHI, EEE.
6. Madura J., “International Financial Management”, 2010, 4t h Ed. Cengage Learning.
7. Apte P.G., “International Finance”, 2008, 2nd Ed. McGraw Hill.
8. “Risk Management, 2006 Indian Institute of Banking & Finance, Macmillan.
9. Madhu Vij, “International Financial Management”, 2010, 3r d Ed. Excel Books.

3.5.1. (HR): Compensation ManagementUNIT - I: Introduction to Strategic Compensation Management:
Concept of compensation-Exploring and defining the compensation context–System of
compensating–compensation dimensions-concept of reward–Role of compensation in Organization-Non-financial compensation system–Concept of total reward system-New trends in compensation management–The 3-P compensation concept.
UNIT – II: Compensation and Employee Behaviour:
Bases For Traditional Pay System and Modern Pay System–Establishing Pay Plans–Aligning Compensation Strategy with HR Strategy and Business Strategy-Seniority and Longevity pay-Linking Merit Pay wit h Competitive Strategy-Incentive Pay-Person focus to Pay–Team Ba sed Pay.
UNIT – III: Designing Compensation System:
Building internally consistent Compensation System-Creating Internal Equity through Job Analysis and Job Valuation-Building Market Competitive Compensation System-Compensation Surveys–Integrating Internal Job Structure with External Market Pay Rates-Building Pay Structures that Recognize Individual Contributions-Constructing a Pay Structure-Designing Pay for Knowl edge Program.
UNIT – IV: Employee Benefits Management:
Components-Legally required Benefits–Benefits Administration–Employee Benefits and Employee Services–Funding Benefits through VEBA–Costing the Benefit s–Components of Discretionary Core Fringe Compensation-Designing and Planning Benefit Program–Totally Integrated Employee Benefit Program.
UNIT – V: Contemporary Strategic Compensation Challenges:
International Compensation and Competitive Strategies-Executive Compensation Packages–
Compensating Executives-Compensating the Flexible Workforce-Contingent Employees and Flexible Work Schedules–Compensation for Expatriates and Repatriates–Strategic Issues and Choices in Using Contingent and Flexible Workers.
Suggested Books:
1. Handerson, “Compensation Management in a Knowledge Based World”, 2007, Pearson Ed.
9t h Ed.
2. Joseph J.Martocchio, “Strategic Compensation”, 2006, Pearson Ed Richard I 3r d Ed.
3. Milkovich & NewMan, “C ompensation”, 2005, Tata McGraw –Hill, New Delhi.
4. Dr. Kanchan Bhatia, “Compensation Management”, 2009, Himalaya Publishing House.
5. Tapomoy Deb, “Compensation Management”, 2009, Excel Books, New Delhi.
6. Dipak Kumar Bhattacha ryya, “Compensation Management”, 2009, Oxford University Press.


3.5.2. (HR): Organizational DevelopmentUnit – I: Gener al Introduction to OD:
Overview of the field of OD-Definitions of OD-A short history of OD and its evolution- Growth and relevance of OD-Characteristics of OD-Values, assumpti ons, and beliefs in OD.
Unit - II: Foundations of OD:Models and Theories of Planned Change-(a) Lewin’s Change Model (b) Burke–Litwin Model (c) General Model of Planned Change-Systems theory-Participation and Empowerment-Teams and Team work-Parallel learning structures-A ‘normative-reductive’ strategy of changing-Applied behavioral Science-Action Research as a process and as an approach.
Unit—III: Managing the OD Process:
Diagnosis - The six-box Model-The action component-OD interventions and their nature-An overview of classification of OD interventions-Planning choosing, and implementing of an intervention strategy-Evaluating and institutionalizing OD int erventions-The program management component-Conditions for optimal success of OD-Issues in Consultant–Client Relationship.
Unit—IV: Human Process Interventions:
Human Process approaches: T-Groups-Process-consultation-Third party intervention-Team
interventions-Techniques and exercises used in Team interventions: Role Analysis Technique-Role Negotiation Technique-Responsibility Charting-Force Field Analysis-Broad Team Buildi ng interventions.Organizational process approaches: Organization Confrontation-Inter-group Relations interventions-Grid OD.
Unit—V: Techno-Structural and Strategic Interventions:
Techno-structural interventions: Structural Design-(i) Restructuring organization-Downsizing-Reengineering (ii) Employee involvement: Quality Circles-Total Quality Management (iii) Work Design: Engineering approach-System Approach.
Strategic Interventions: Organizational Transformation and its Characteristics-Culture Change –Self – designing organizations-Organizational Learning.
Suggested Books:
1. Thomas G. Cummings, Christopher G Worley, “Organization Development and Change”,
2007, Thomson, 8th Ed.
2. Wendell French, Cicil, H. Bell, Jr, Veena Vohra, “Organization Development”, 2006, Pearson
Education.
3. Wendell French, Cicil, H. Bell, Jr. (6e) “Organization Development”, Prentice Hall of India.
4. Reider Dale, “Organization & Development — Strategies, Structures, and Process”, 2006,
Sage Publications, New Delhi.
5. Kavitha Singh, “Organization Change & Development”, 2005, Excel Books.
6. R. Sullivan, Gary Mclean, Jossey Bass. Brown, “Practicing Organization Development’, 2006,
Pearson Education.
7. S. Ramanarayan, T.V. Rao, Kuldeep Singh, “Organization Development-Intervention and
Strategies”, 2006, Response Books.

3.5.3. (HR): Leadership and Change managementUnit – I: Introduction to leadership:
Traits, styles, skills, behaviors, vision, inspiration and momentum of leadership-International framework for analyzing leadership-Personality Types and Leadership-Five factor model of personality-Leadership perspectives on cult ural values, social responsibility and organizational performance-Current issues in leadership-Contemporary leadership styles.
Unit – II: Leadership development programs and models:
Characteristics, types and evaluation of Leadership Development efforts-Trait, behavior, power influence, situational and integrative approaches to leadership-Causal and Normative models-Leader-member exchange theory-LPC model-VIM of self–leadership–Perspectives on change: Contingency, Resource dependence, population ecology, and institutional.
Unit – III: Strategic change process:
Hopson’s change curve–Virginia Satir Change Model–Noer’s redundancy intervention model–Change path Diagnostics–Reactive and Proactive change path–Nabisco’s renewal path–Diagnostic models for Organizational Change–Methods for dealing with resistance to change–Enablers and Barriers to change–Model of cognitive, effective, and behavioral responses to change-Five stages of planned Cha nge.
Unit – IV: Initiating Change:
Weinberg’s change process, triggers, drivers and tracers of change-Leavitt model-change mapping, change spectrum, Gestalt change cycle-Tropics Test, Behavioral, cognitive, psycho-dynamic and humanistic approaches to change. Beckhard’s change formula-Buchanon and Mc Calman’s model of perpetual transition management-Types of individual, group and organizational change.Organizational Change matrix.
Unit – V: Methods and models for change manag ement:
Warfield 6-3-5 method-Rosemary Stewart’s model-Tony Buzan’s mind maps-Edward de Bono’s six thinking hats-Johari window-Nadler and Tushman’s congruence model-Scenario analysis-power-interest matrix-Kotter’s 8-step change model-Pendlebury, Nadl er, Kanter and Taffinder’s planned change models. Dunphy Contingency Model of C hange.
Suggested Books:
1. Cameron & Green, “Making sense of change mgt ”, 2009, Kogan page.
2. Peter G. Northouse, “Leadership”, 2010, Sage.
3. Peter Lornge, “Thought leadership Meets Business”, 1st edition, 2009, Cambridge.
4. John ADAIR, “Inspiting Leadership”, 2008, Viva Books.
5. Gary Yukl, “Leadership in organizations”, 2006, Pearson.
6. A. J. DuBrin, “Leadership”, 2005, Wiley.
7. Mark Hughes, “Change management in organizations”, 2008, Jaico.
8. Kavitha Singh, “Organization Change & Development”, 2005, Excel Books.
9. Lussir, “Effective Leadership”, 2009, Cengage.
10. Eric Flamholtz & Yvonne Randle, “Leading Strategic Change” 1st Ed. 2009, Cambridge.
11. Ian Palmer, “Managing organizational change”, 2008, TMH.
12. Jim Grieves, “Organizational change”, 2010, Oxford.
13. Jeffry Russell, “Change Basics”, 2006, ASTD Press.
14. N. Sengupta, “Managing change in organizations”, 2006, PHI.
15. Srivastava, “Transformation Leadership”, 2008, Macmillan.

3.6.1. (M): Product and Brand ManagementUnit - I: Product and Branding Decisions:
Product, Policy, objectives, Product Mix, Product line, Packaging, Product Modification and Deletion.Brand management: Branding, Brand positioning, repositioning strategies and Brand Loyalt y, Brand Equity, Brand management practices.
Unit - II: Product Market Evolution:
Strategy and Planning. New Product Development: Innovation and New Product Development (NPD), Theories of NPD, Models of NPD, Generic Product Development Process.
New Product Introduction, Growth Strategies Intensive, Interactive, Diversification strategies. Product Portfolio analysis BCG, GE, Ad little. Shell International, Risk-return analysis.

Unit - III: Product Modification and New Product Introduction:
Idea generating device. Role of R & D. Product Maps, Market Maps and Joint Space Maps. Idea-Screening. Product Concept generation, concept selecti on, and Concept Testing, Product architecture, Design for manufacturing, Prototype Product.
Unit - IV: Market Segmentation:
Market Structure Analysis. Preference Segmentation. Perceptual mapping, Preference – choice models, Wind Robertson Market Model, BRANDAID model and Defender model, DESIGNR, and PREFMAPS–flow charts and concepts.Business Analysis-Cost Behavior-learning curve analysis. Innovation diffusion and adoption process- Demand Analysis–First Purchase and repeat purchase, trial and repeat models.
Unit - V: Product Development and Testing :
Product Launching, Six guiding principles of product launching, Pre-testing, Test marketing, Marketing Mix allocations. Planning annual Budget and strategy. Organization for product Management.
Suggested Books:
1. Ulrich K T, Anitha Goyal, “Product Design and Development”, 2010, McGraw Hill.
2. Bently, Davis & Ginsbury, “Trade Markets and Brands”, 2008, Cambridge University Press
3. Pessemier Edgar, “Product Management”, 1982, John Wiley & Sons.
4. Richard Elliott, “Strategic Brand management”, 2007, Oxford press.
5. Sridhar J Murthy and Gary L Lilien, “Marketing Models”, 2006, PHI.
6. Helen Edwards, “Creating Passion brands”, 2009, Kogan Page Publ ishers.
7. Chunnawala, “Compendium of Brand Management”, 2008, HPH.
8. U C Mathur, “Product and Brand management”, 2009, Excel Books New Delhi.
9. Wind Yoram, “Product Policy”, 1982, Addison and Wesley.
10. Dr. Anandan, “Product Management”, 2010, Tata McGraw Hill.
11. Kavin Keller, “Strategic Brand Management”, 2008, Pearson Ed 3r d Edition.

3.6.2. (M): Promotion & Distribution ManagementUnit-I: Marketing Communications:
The nature of marketing communications. The integration of marketing communication. Integrated marketing communication planning process. Model of marketing communications decision process. Establishing objectives and budgeting for the promotional programme.
Unit – II: Developing Integr ated Marketing Communications:
Creative strategy development. Process of exe cution of creative strategy: Appeals, execution styles and creative tactics. Media planning & Strategy: Developing Media Plans & Strategies and Implementation with IMC perspective.
Unit – III: Personal Selling:
Role of personal selling in IMC programme. Integration of personal selling with other promotional tools. Personal selling process and approaches. Evaluating, motivating and controlling sales force effort.
Unit – IV: Sales Promotion and Support media:
Sales Promotion - objectives, consumer and trade oriented sales promotion. Developing and operating sales promotion for consumers & trade: Sales promotion tools: off - shelf offers, price promotions, premium promotions, prize promotions. Coordinating Sales promotions and advertisement.Support media – Element s of Support media and their role.
Direct marketing, the internet & Interactive Marketing, publicity and public relations. Monitoring, evaluating & controlling promotion programme.
Unit – V: Distribution Management:
Role and functions of channels of distribution. Distribution Systems. Distribution cost, control and customer service. Channel design, and selection of channels, selecting suit able channel partners. Motivation and control of channel members. Distribution of Services, market logistics & supply chain management.
Suggested Books:
1. Shimp “Advertising and Promotion”, 2007, Cengage Learning.
2. George E Belch, Micheal A Belch & Keyoor Purani “Advertising and Promotion”, 2010, Tata McGraw Hills, 7th Ed.
3. Shah & D’souza “Advertising & Promotion”, 2010, Tata McGraw Hills.
4. Iane, King & Russel “Advertising Procedure” 6/c Pearson Publishers.
5. S.A. Chunnawalla , K.C.Sethia “Advertising”, 2010, HPH.
6. SHH Kazmi & Satish Batra “Advertising & Sales Promotion”, 2009, Excel Publishers.
7. Dr. S. Gupta “Sales & Distribution Management”, 2010, Excel Books, 2nd Ed.
8. Krishna K. Havaldar and Vasant M. Cavale “Sales & Distribution Management”, 2009, Tata McGraw Hills.
9. Roddy Mullion “Sales Promotion”, 2010, Kogan Parge Publishers.
10. Panda & Sahadev “Sales & Distribution Management”, 2008, Oxford University Press, U.P.
11. Ogvinn, Allen & Semenik “Advertising Management”, 2010, Cengage Learning.
12. Tony Carter “Sales Force Management”, 2008, Jaico Publishers.
13. Rositer & Percy, “Ad-Management & Integrated Marketing Communication”, 2006, Tata McGraw Hills.

3.6.3. (M): Marketing EngineeringUnit – I:
Marketing Engineering approach, Key Concepts of Marketing Engineering ( ME),Model, Verbal Model, Box and Arrow model, Graphic model, Response Model, Mathematical model, Models Vs Judgements, Trial / Repeat Model, Marketing decision Environment, Tools for Marketing Engineering, Business value of Marketing Engineering, Customer Value, Value in Use assessment, Economic Life time value, Approache s to Measure Customer Value.
Unit – II:
Segmentation, Targeting, Positioning-Traditional Segmentation, targeting, Positioning through Brand Linkages, Perceptual maps, Preference maps, Limit ations of Perceptual and Preference Map. Forecasting methods- judgemental Method, Market and Product Analysis method, Time Series methods, Causal Methods, Product Life Cycle, new Product forecasting Models- The bass Model, Bases Model, selection of forecasting methods.
Unit – III:
Market response Models: Concept of a Response Model, response Models- Aggregate Response Model, Individual Response Models, Shared Expenditure Models, Qualitative Response Models.
Unit – IV:
Strategic Market Analysis, Strategic marketing Decision Making, Advertising Budget Model, Rao & Miller Model, Ad budg model, the Full Model, Advisor Model, Media Decisions, Steps in Ad design, Adcad system, Syntex Approach.
Unit – V:
Geo-demographic analysis, Gravity Model, Pricing Models, Differential Pricing, Competitive Bidding, Bases for Differential Pricing, Revenue Management Process, Promotional analysis. Promotional Effects, Promotional types and targets, Promotional Effects Model.
Suggested Books:
1. Gary L Lilien, Arvind Rangaswamy, Arnaud De Bruyn, “Principles of Marketing Engineering”,
2005, P H I.
2. Gary L Lilien, Philip Kotler, Sridhara Moorthy, “Ma rketing Models”, 2005, PHI.
3. Gary L Lilien, Arvind Rangaswamy, “Marketing Engineering”, 2006, Trafford Publishing.
4. Paul W Farris, Neil T Bendle, Phillip E. Pfeifer, David J. Reibstein, “Marketing Metrics”, 2010,Wharton School Publishing.

3.7.1. (S): Relational Database Management Systems (RDBMS)Unit – I: Database Concepts and Modeling:
Introduction & overview – Client/Server Technology: 3 Tier architecture, data modeling,
hierarchical, network, object oriented, Introduction to distributed databases. Relational Data structure: tuple, attributes, set; relat ional algebra operators, entity relationship diagrams, design of E-R Schema, E-R Schema to tables.
Unit – II: Relational Lang uages and Relational Database:
Functional dependence: normal forms, integrity constraints, domain, referential integrity, Codd’s rules. Elementary operations, set operations, aggregate functions, null values, nested sub queries, derived relations, views, joined relations, DDL, embedded SQL, QBE, QUEL.
Unit – III: Transaction Processing:
Transaction concepts, states, atomicity, durability, Serializability, isolation, transaction definition in SQL, concurrency control, locking, deadlock, handling, recovery systems, log based shadow paging.
Unit – IV: Distributed and Special Database:
Distributed data storage, network transparency, distributed query processing, commit protocols,concurrency controls, deadlock handling. Data analysis, data mining, data warehousing, spatial and geographical, multimedia database, mobility and personal database, distributed information system. World Wide Web.
Unit – V: ORACLE:
Introduction: SQL-SQL commands for data definition & data manipulation, views-procedures-indexing, PL/SQL, forms design process, triggers, SQL report writer, SQL menus.

Suggested Books:
1. Lee Chao, “Database Development and Management”, 2010, Special Indian Ed. Auerbach Publications.
2. Abraham Shibershatz, Henry F. Korth & S Sudershan- “Data Base System Concepts”,
McGraw Hill.
3. Rob & Coronel, “Database Systems”, Thomson.
4. Page, Jr. Special edition Using Oracle 8/8i, Prentice Hall-
5. Narayan S. Umanath & Richard W. Scamwell, “Data Modeling and Data Base Design”,
Thomson – India Edition.
6. Lemme & Colby, “Implementi ng and Managing Oracle Databases”, Prentice Hall.
7. Hansen & Hansen, “Database Management & Design”, Prentice Hall.

3.7.1.1.: RDBMS – LAB Oracle – Practical Syllabus1. Creating Tables & Applying All Constraints
2. Inserting Data into Tables
3. Updating Tables
4. Alias Table
5. Deleting Data From Table
6. Drop Table
7. Working with All SQL Queries using functions(Number, string functions etc.)
8. Working with sub queries
9. Working with Joins
10. Creating Views
11. Creating Object s (i.e. Cluster, Synonyms, Indexes etc.)
12. Writing PL/SQL programs
13. Creation of Cursors
14. Creation of Functions.
15. Creation of Procedures.
16. Creation of Triggers
17. Generation of SQL report
18. Creating forms and working with different objects.
19. Graphics
20. Reports.

OU - MBA 4th Semester Syllabus

OU - MBA (Day) 4th Semester Syllabus

4.1: Strategic ManagementUnit: I:
Strategic Management, Definition, The Managerial Process of Crafting and Executing Strategy: Developing a strategic Vision, Mission Statement, Establishing objectives, Crafting & executing strategy. Concept of strategic Intent, A model of elements of Strategic Management: The Strategic Position–Strategic Choices-Strategy in action
Unit: II:
Strategic Position: Evaluating a Company’s external environment–Relevant components of
External Environment–Creating the Environmentally aware Organization–The General Environment –Demographic Segment, Socio culture Segment, Political Segment, Technological, Economic Segment & Global Environment–The Competitive Environment-The Macro Environment–K ey drivers of change–Porter’s Diamond Model–Porter’s Five Forces Model–Industry Analysis-Strategic groups- opportunities, threats, Industry Competition, Sources of Competition-Competitor analysis, otherinternal environment–St rategic Capability-Evaluating a Company’s Resources and Competitive Position–Value-Chain Analysis Resources, capabilities and core competencies–Cost Efficiency-Sustaining Competitive Advantage–Diagnosing strategic capability–Managing Strategic capabili ty
Unit: III:
Strategy Formulation; Business–Level Strategy-Creating and Sustaining Completive Advantages: Strategy and Competitive advantage–Strategic Choices–Bases of Competitive Advantage-Generic Strategies Sustaining Completive advantage–Competitive Strategy in hypercompetitive conditions-Industry Life Cycle Stages: Strategic Implications: Tailoring strategy to fit specific industry and company situations-Strategies for competing in Emerging industries, Turbulent and high velocitymarkets, Maturing Industries, Stagnant industries, and Fragmented industries. Strategies for Industry leaders, Runner-up firms, weak and crisis ridden Business.
Unit IV:
Strategy alternatives: Corporate Level and International Strategy: Creating Value through
Diversification–Related Diversification-Vertical integration strategies, unrelated diversification,Unbundling and Outsourcing strategies, using offensive and defensive strategies. Outsourcing, Various activities for outsourcing, Benefits of outsourcing, growth and drivers of outsourcing, Supplementing the Chosen Competitive Strategy-Co-operative strategies, Product & Market Diversification-Merger and Acquisition strategies, Strategic Alliances.
Unit: V:
Strategic Implementation: Strategic Control and Corporate Governance–Responding Effectively to Environmental Change-Attaining Behavioral Control: Instilling a Corporate Culture that promotes Good Strategy Execution–Leading the Strategy Execution Process. Strategy & Leadership, Social Responsibility & Corporate Governance, Corporate Culture: Organizational Structure and Controls, Strategic Leadership, Strategic Entrepreneurship–Crafting a Social Responsibility Strategy, Corporate gov ernance.

4.2: Supply Chain ManagementUnit - I:
i. Introduction to Supply Chain Management-Concept, Objectives and function of SCM,
conceptual framework of SCM, supply chain strategy- collaboration, demand flow, Customer
Service, Technology integration, Problems of complexity confronting SCs.
ii. Global Supply Chain Management, Reverse Supply Chain, Value chain and value delivery systems for SCM, The role of Modelling, SCOR Model and optimization in SC,.
iii. Demand Planning, Forecasting, Aggregate planning, Managing Predictable Variability, Bull-whip effect.
Unit - II:
i. Logistics Management, Inbound, Internal and Outbound Logistics in SCM, Developing theLogistics organization for effective Supply Chain Management, development of integratedlogistics strategy, Logistics in Maximizing profitability and cash flow, 3PL, 4PL, International Logistics, Reverse Logistics.
ii. Sourcing of material, Global sourcing–issues and Problems. e-Procurement, Group Purchasing, Reverse Auctions, Creati ng and managing Supplier Relations, Supplier Partnerships, Multi-tier Supplier partnerships.
iii. Inventory Management in Supply chain-Role and importance of inventory in SC, Inventory policies, inventory as an element of customer service, JIT, VMI, Outsourcing, Factors influencing the decision making process of outsourcer.
Unit - III:
i. Transportation in SC, Transportation formats, Modes of Transportation, factors affecting
transportation performance, Factors influencing the selection of transporter, modes of transport, Fleet Management, multi model transport, Containerisation, Vehicle Scheduling and routing, Milk run and cross docking.
ii. Warehousing- types of warehouses, warehousing operations, Warehouse aut omation, Warehouse management systems. Third party and value added warehousing, Role and importance of Handling systems, Selection of Handling systems. iii. Pricing, Revenue Management and role of IT in SCM.
Unit - IV:
i. Strategic Issues in Supply Chains-Strategic Partnerships, Alliances and Collaborative advantage, St rategic relationships in–logistics, Handling systems, Equipment Warehousing, PPP environment, SC restructuring-issues, problems and benefits.
ii. Bench marking - Issues and problems in Bench Marking, types of bench marking, methods of BM, Process of BM.
iii. Lean Manufacturing, Agile Manufacturing, elements of lean manufacturing, Integration of lean manufacturing and SCM.
Unit - V:
i. SC Network Design, Distribution network in SC, Channel design, factors influence design, options in distribution network, Role and importance of Distributors in SCM, SC integration-Internal and external, Role and importance and selection of Handling systems in SC integration.
ii. Role of Human Resources in SCM. Issues in Workforce Management and Relationship
Management with suppliers and Customers and employees.
iii. Retail SCM- Problems and issues in Transport ation, inventory, Packaging and Repackaging. Customer led business, Customer focus in SC, Complaint Handling, Developing customer service strategy, RFID, bar coding.

4.4.1. (F): Financial Services and SystemsUnit – I:
Financial Services concept and meaning–Financial system–Growing importance of financial services in financial system–Classification–Traditional and Modern view–Fund based and non fund based services–Financial engineering–Need for innovation–New financial products and services–An overview of Indian financial services sector scenario.
Unit – II:
Concept of leasing–Classification–Rationale, advantages of leasing–Legal aspects–Lease documentation and contract–Tax and accounting aspects of leasing–Financial evaluation of leasing–NPV and IRR approaches–Break even lease rental- Lease v/s buy decisions
Hire purchase concept and features–Legal and tax frame work–Financial evaluation of hire purchase–H.P. mathematics–Flat and effective interest rates.
Unit – III:
Factoring concept and features–Classification–Functions of factor–Legal aspects–Financial
evaluation of factoring–Decision analysis for factoring–Factoring scenario in India–Kalyan
Sundaram Committee – RBI guidelines.Bill discounting–Concept and characteristics–Process of bill discounting–Legal aspects–Parties involved and their legal obligations–Financial aspects–Calculation of discount charges and effective interest rates.
Unit – IV:
Venture Capital Financing–Concept and features–Venture Capital funding process–Funding and entry strategies of VCF–Structuring venture capital financing–Valuation of VCF-Conventional valuation method–First Chicago method–Revenue multiplier method–Exit strategies of VCF–Ventures capital financing scenario in India–R egulatory frame work of VCF.
Unit – V:
Merchant Banking concept and evolution–Functions of M.B. eligibility norms–Lead manager–Underwriter–Brokers and Bankers to issue–R egistrar–portfolio managers–New issue management process and stages involved–pricing of public issues–Book building process–Green shoe option–Initial public offering–Promoter’s contribution–Preferential issues–SEBI guidelines relating to new issues of securities. Credit rating concept and advantages of ratings–Types of ratings–Symbols of ratings and grades-Dimensions of credit rating methodology and process–Credit rating agencies in India and their rationale. .

4.4.2. (F): Banking and InsuranceUnit – I: Introduction to Banking:
Bank, Customer, Bank-customer Relationship, Role of commercial banks in Economic Development. Evolution of Banking in India–origin, nationalization, reforms, overview of Financial Inclusion in India, Sources of risk in banks. Various services offered by banks, Financial statements of banks with special focus on Indian banks, Analyzing banks’ financial statements: CAMELS, Ratings, Key Performance indicators. Sources of Bank Funds- Deposits and Other sources
Unit –II: Uses of Bank Funds:
Features of Bank Credit, types of lending, steps to be followed in the assessment of credit worthiness of a prospective borrower, the credit process and management, different types of loans and their features, Loan Pricing: The basic model, pricing fixed & floating rate loans, cost-benefit loan pricing, Customer Profitability Analysis, NPA’s:- The gross and net concept of NPA’s, causes, implications & recovery of NPA’s
Unit – III: Regulation and Innovations in Banking System:
Regulation of Bank Capital: The need to regulate Bank Capit al, Concept of Economic Model, Concept of Regul atory Capital, Basel Accords I a nd II.Banking Innovations:-Core Banking Solution, Retail Banking-Products & Services-Nature, Scope, Future and Strategies, Plastic Money, National Electronic Funds Transfer, ATM, Mobile Phone Banking, Net Banking, Banc-assurance. Changing role of Banks as Financial Intermediaries.
Unit – IV: Introductio n to Insurance:
Insurance as a Risk Management Technique: Principle of Indemnity, Insurable Interest,
subrogation, utmost good faith. Requisites of insurable risks. Characteristics of Insurance contract, Functions of Insurers: Production, Underwriting, Rate Making, Managing Claims and Losses, Investment & Financing, Accounting & Record Keeping and other miscellaneous functions, Types of Insurers, Reinsurance: the concept, uses and advantages. Marketing channels: Agents & brokers –professionalism, remuneration, responsibilities, classification, criteria for appointment and capital adequacy norms for broker, an overview of IRDA.
Unit – V: Life Insurance and General Insurance:
The concept of Life Insurance, types of Life Insurance contracts, Tax treatment of Life Insurance. Life Insurance Products- Term Insurance, Whole Life Insurance, Universal Life Insurance, Variable Life Insurance, Adjustable Life Insurance, Endowment Life Insurance, Participating & Non-participating Life Insurance, Classification of Life Insurance: Ordinary, Industrial, Group & Credit, The Actuarial Science: The concept and the responsibilities of an actuary, Provisions of Life Insurance contracts: Settlement Options, Non-forfeiture Options, Dividend Provisions, Optional Provisions and Universal Life Policy Provisions, Special Life Insurance forms: Characteristics, uses, advantages & disadvantages. Healt h and General insurance–Overview, Types, Third Party Administrators.
4.5.1. (HR): Performance ManagementUnit – I: Introduction:
Definition, concerns and scope of PM. Performance Appraisals. Determinants of job performance. Mapping, process, sequence and cycle of PM. Performance planning and Role clarity. KPAs-Performance Targets. Trait, Behavior and Results approaches to measuring performance. The impact of HRM practices on performance.
Unit – II: Performance Appraisal:
Assessment center-psychometric tests. Role Play–Self-appraisal-360 Degree appraisals-Rating-less appraisals for the future of PMS. Critical incidents worksheet, Combining behavior and outcomes, Attribution theory-Causal matrix. Diagnosis and Performance improvement. Performance review, Performance analysis.
Unit – III: Performance Bench marking:
Human information processing and performance loop, performance shaping factors–Yerkes–Dodson’s Law-Corporate performance management-EFQM Excellence model–Diagnostic and Process bench marking. PM Audit, PM pathway analysis. The impact of Performance Management on Line managers and Employees.
Unit – IV: Competency mapping and Pay Plans:
Competency Mapping–Mercer’s Human Capital Wheel–Human Asset worth estimator and Accession rate-CIPD Human Capit al framework, Performance, Competence and Contribution related pay models. Cafeteria benefits plan, call back pay. The McBer Generic managerial competency model-Competency causal flow model-Competency gap–Compet ency Assessment-Balanced Score Card framework.
Unit – V: Performance Metrics and Models:
Performance measures pyramid. Steps for designing metrics, Wang Lab, Smart pyramid,
Conceptual, DHL, RCN Models of PM, Gilbert’s performance matrix and Behavior Engineering model.Direction of trouble shooting with Behavior model–Mager and Pipes trouble shooting model - ATI performance improvement model, Spangenberg’s Integrated model of PM, Sears model for organizational performance.

4.5.3. (HR): Talent and Knowledge ManagementUnit – I:
Meaning and importance of talent management. Designing and building a talent reservoir–
Segmenting the Talent Reservoir. Talent Management Grid. Creating a talent management system. Institutional strategies for dealing with talent management.
Unit – II:
Competency–meaning, characteristics, types–Steps in developing a valid competency model. Talent management information systems. Developing a talent management information strategy. Role of leaders in talent management.
Unit – III:
The nature of knowledge management–Alternative views of knowledge. Types of knowledge. Location of knowledge. Rise of the knowledge worker. Features of knowledge int ensive firm. Key processes in knowledge intensive firms.
Unit – IV:
Knowledge management framework of Hansen–Earl’s seven schools of knowledge management–Alvesson and Karreman’s knowledge management approaches. Knowledge management solutions, mechanisms and systems. Knowledge management infrastructure.
Unit – V:
Organizational impacts of knowledge management-on people, processes, products and
organizational performance. Factors influencing knowledge management. Knowledge management assessment of an organization–importance, types and timing. Knowledge discovery systems.

4.6.2. (M): Services and Retail MarketingUnit – I: Service:
Concepts, Scope of Services. Goods-Services continuum. 4Is of Services Goods and Services. Categorization. Industrial Services. Segmentation target Marketing and positioning. Customerexpectations and perceptions of services.
Unit – II: Service marketing Mix:
Product, Pricing, Place, Promotion, People, Physical evidence and process. Service Quality-
Dimensions of quality. Understanding Quality Management. Measuring service Quality.
Unit – III: Strategies for Marketing:
Overview, strategies for dealing with intangibility, inventory, inconsistency and inseparability.Building customer Relationship through Segmentation and retention strategies. Service Marketing Triangle- External Marketing, Internal Marketing, Relationship Marketing and Interactive Marketing.
Unit – IV: Introductio n to Global Marketing
Importance of Global Markets–Consumer Markets–The Environment of Global Marketing–Cultural Environment–Economic Environment–Demographic Environment–Political and Government Environment–Technological Environment.
Unit – V: International Brands and International Products
Identifying Global customer needs–Satisfying Global Customers-Coordinating Marketing Activities-Global Product Planning–Product Objectives–New Products in Global Marketing–Distinction between Global Marketing and Indian Marketing .

4.6.3. (M): Customer Relationship ManagementUnit – I: Evolution of Customer Relationship:
CRM- Definition, Emergence of CRM Practice, Factors responsible for CRM growth, CRM process, framework of CRM, Benefits of CRM, Types of CRM, Scope of CRM, Customer Profitability, Features Trends in CRM , CRM and Cost-Benefit Analysis, CRM and Relationship Marketing,
Unit – II: CRM Concepts:
Customer Value, Customer Expectation, Customer Satisfaction, Customer Centricity, Customer Acquisition, Customer Retention, Customer Loyalty, Customer Lifetime Value. Customer Experience Management, Customer Profitability, Enterprise Marketing Management, Customer Satisfaction Measurements, Web based Customer Support.
Unit – III: Planning for CRM:
Steps in Planning-Building Customer Centricity, Setting CRM Objectives, Defining Data
Requirements, Planning Desired Outputs, Relevant issues while planning the Outputs, Elements of CRM plan, CRM Strategy: The Strategy Development Process, Customer Strategy Grid.
Unit – IV: CRM and Marketing Strategy:
CRM Marketing Initiatives, Sales Force Automation, Campaign Management, Call Centers. Practice of CRM: CRM in Consumer Markets, CRM in Services Sector, CRM in Mass Markets, CRM in Manufacturing Sector.
Unit – V: CRM Planning and Implementation:
Issues and Problems in implementing CRM, Information Technology tools in CRM, Challenges of CRM Implementation. CRM Implementation Roadmap, Road Map (RM) Performance: Measuring CRM performance, CRM Metrics.
4.7.1. (S): E – Business
Unit – I: E-Business Overview:
Traditiona l Commerce Vs E-Commerce- E-commerce and E-Business- Categories of E-Commerce–Development and Growth of E-Commerce-Advantages and Disadvantages of e-commerce–International Nature of e-commerce.
Unit – II: E-Business Infrastructure:
E-Commerce architectural framework-The Internet and WWW-Internet Protocols–Internet, Intranet and Extranets–Internet connection options–Security Issues in E-Commerce environment-Encryption Techniques–Payment systems–Types of Payments–Legal, Ethical and Tax Issues in E-commerce.
Unit – III: Online Marketing and Supply Chain Management:
Online Marketing–Business Models of E-Marketing–Online Advertisement-Advertisement Methods & strategies–Online retailing–E-Auctions.Supply Chain Management-Procurement Process and the Supply Chain–Types of Procurement-Multi tier Supply Chains-Trends in Supply Chain Management.
Unit – IV: Online Services:
Online Financial Services- Online Banking & Brokerage, Online Insurance Services- Online Real
Estate services-Online Travel Services-Online Hospitality Services-Online Recruitment Services-Online Publishing Services–Online Entertainment –E-Learning.
Unit – V: Mobile Commerce:
Definition of Mobile Commerce–Mobile Commerce Framework–Growth of Mobile Commerce-Benefits & Limi tations of Mobile Commerce-Mobile Network Infrastructure-Information Distribution for Mobil e Networks–Multimedia Content Publishing–Mobile Payment Models-Mobile Commerce Applications

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About National Stock Exchange (NSE) (MBA)

National Stock Exchange:The National Stock Exchange of India Limited was set upon the basis of the recommendations of the High Powered Study Group on Establishment of New Stock Exchanges. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSF commenced operations in the Wholesale Debt Market (WDM) seg7ment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.

The National Stock Exchange (NSE) was incorporated in November 1992 with an equity capital of Rs. 25 crores. It was promoted by the International Securities Consultancy (ISC) of Hong Kong in association with financial institutions, insurance companies, banks, SBI Capital Markets Ltd., Infrastructure Leasing and Financial Services Ltd., and Stock Holding Corporation Ltd. ISC has prepared the detailed business plan, including the installation of hardware and software systems. It aims at promoting professionalism in the capital market and providing better securities trading facilities to investors nationwide. NSE transcends geographical barriers and overcomes fragmentation by providing a screen-based trading system instead of the conventional trading ring. This results in greater depth and liquidity of the market and reduces the transaction costs.

The NSE is not an exchange in the traditional sense of the term, where brokers own and manage the exchange. Its two tier administrative set up involves a company board and a governing board of the exchange.
NSF is a professionally managed national market for shares, PSU bonds., debenture and government securities with all the necessary infrastructure and trading facilities.
THE MISSIONNSF was set up to realize the following objectives:
I Establishing a nationwide trading facility for equities, debt instruments and hybrids
2. Ensuring equal access to investors all over the country through an appropriate communication network
3. Providing a fair, efficient and transparent securities market to investors using electronic trading systems
4. Enabling shorter settlement cycles and book entry settlements systems, and
5. Meeting the current international standards of securities markets
The standards set by NSE in terms of market practices and technology has become industry benchmarks and is being emulated by other market participants as well. NSE is more than a mere market facilitator. It guides the industry towards new horizons and greater opportunities.
Trading MechanismIn order to encourage an institutional market where large volume trades come up for settlement in jumbo lots, two exclusive additional market segments, the institutional lot segment and trade-for-trade segment have been setup. NSF has an order driven system, which allows members to undertake jobbing in securities of their choice. Several members undertake jobbing on account of the cease of entry and exit, and narrow margins which results in improved liquidity and reduced transaction costs.
SettlementThe settlement cycle is completed within eight days from the last day of the trading cycle. The trading period is a week (Wednesday to Tuesday) and the settlement of trades takes place in the ensuing week.
Counter GuaranteeNSE’s Clearing Corporation stands guarantee to all trades done in the cash market on the exchange. The counter guarantee of the Clearing Corporation ensures that no default, either in payment or delivery takes place for trades done on NSF.
Price BandsThe price bands are based on the liquidity of a company’s shares as well as its volatility. The chances for price manipulation are more in the case of liquid securities. The factors, which determine the measure of liquidity of a security, are:
1. Frequency of trading
2. Average daily volume of trading
3. Average daily value of trading
4. Average daily number of trades
Listing RequirementThe exchange has also modified two of its listing clauses. The minimum paid-up capital requirement for initial public offerings has been increased from Rs.10 crores to Rs. 20 crores. With regard to companies whose shares are already listed on another exchange, there will now be a requirement of a minimum market capitalization of Rs. 20 crores (for companies with a paid-up capital of at least Rs. 10 crores) or of Rs. 40 crores (for companies with a paid-up capital of less than Rs. 10 crores). Companies, which have not paid dividend for at least two of the last three years, will not be required to have a net worth of at least Rs. 50 crores for seeking listing on the house.
TRADINGThe National Stock Exchange of India started its trading operations in debt market segment from June 30, 1994. The NSE has adopted a fully automated screen-based trading system, which allows trading members to trade from their offices through a communications network. Price, time and volume conditions are quite flexible. Securities like the government bonds, treasury bills, PSU bonds, CPS, floating rate bonds and Unit 64 of UTI are traded on the exchange. The capital market segment covers the trading done in convertible/non-convertible debentures and hybrids, both in equities and retail trade.
Wholesale Debt MarketTwo distinctive segments representing Wholesale Debt Market (W’DM) and Capital Market have started operations in 1994-95, providing secondary market trading facilities. WDM is a facility for institutions and corporate bodies to enter into high value transactions in instruments such as government securities, treasury bills, PSU bonds, Unit 64 of UTI, CPS and CDs. Few large investors and a high average trade volume characterize the segment. The principal participants are banks, corporates and mutual funds.
There are two types of entities on WDM, Trading Members and Participants. Trading members are the recognized members of NSE. They can either trade on their own account or on behalf of their clients, including participants. In the WDM segment of the exchange more than nine categories of instruments are allowed for trading. The capital market segment of NSE commenced operations on November 3, 1994 to provide trading facilities for institutions and retail investors. The exchange has allowed for trading 1,300 securities of medium and large companies with nationwide investor bases. Because of the nationwide equal access, such securities can be traded anywhere in country at the same price.
Electronic Trade Monitoring SystemThe Stock-Watch s is a computer system designed and programmed to monitor market activity and identify aberrations from historical patterns. The algorithm for the NSF system is similar to the one prevalent at NASDAQ in the United States. However, the trading systems at NASDAQ and NSE are totally different. The algorithm 0fNASDAQ has been adapted to NSF trading conditions. The system enables NSE to electronically monitor the trading patterns, which would lead to a more effective surveillance. Currently, NSE officials have to manually screen the trading patterns to ascertain any strange price fluctuations. The electronic track monitoring S stem will automatically kick off alerts. It will make the task of surveillance easier and more effective. There is a great need to enhance information flow and this will go hand-in-hand with better monitoring of trading patterns to reduce eases of price manipulation. SEW will define the kind of information the stock exchanges need to furnish so as to make their enforcement job more effective,
CORPORATE STRUCTURENSF is one of the first demutualized stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policy makers in the country, it has been set up as a public limited company, owned by the leading situational investors in the country.
The ownership, management and trading is in the hands of three different sets of people. NSF is owned by set of leading financial institutions, banks, insurance companies and other financial intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely ruminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework.
BoardThe Board of NSF comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc public representatives, three nominees of SEBI including a senior official of SEBI and one full time executive of the Exchange.
Executive CommitteeWhile the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to an Executive Committee (EC) formed under the Articles of Association and Rules. The EC includes representatives from trading members, the public and the management. The EC has four broker-members who are nominated by the Board of NSEI based on their experience in stock market and represent different regions. The day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff
PromotersNSE was promoted by leading financial institutions, banks, insurance companies and other financial intermediaries such as the following:
1. Industrial Development Bank of India
2. Industrial Finance Corporation of India Limited
3. Life Insurance Corporation of India
4. State Bank of India
5. CICI Bank Limited
6. Infrastructure Leasing and Financial Services Limited
7. Stock Holding Corporation of India Limited
8. SBI Capital Markets Limited
9. Unit Trust of India
10. Bank of Baroda
11. Canara Bank
12. General Insurance Corporation of India
13. National Insurance Company Limited
14. The New India Assurance Company Limited
15. The Oriental Insurance Company Limited
16. United India Insurance Company Limited
17. Punjab National Bank
18.. Oriental Bank of Commerce
19. Corporation Bank
20. Indian Bank
21. Union Bank of India
CommitteesThe Exchange has constituted various committees to advise it on areas such as good market practices, settlement procedures, risk containment systems, etc. Industry professionals. These committees, are manned by industry trading members, exchange staff as also representatives from the market regulator.
1. Executive Committee
2. Committee on Settlement Issues (COSI)
3. Dispute Resolution Committee (DRC)
4. Committee On Trade Related Issues (COTI)
5. Advisory Committee—Listing of securities
PRODUCTSNSE has played a catalystic role in bringing about a favorable transformation in the securities market in terms of microstructure, market practices and trading volumes. The market has witnessed several innovations in products and services. NSE offers a wide range of products and services in the equities, debt and derivative segments of the market as shown below:
I. Indices: Major Indices/Other Indices
2. Derivatives—Futures/Options
3. Computer to Computer Link (CTCL) facility: Equities Derivatives
4. Internet-based Trading: Equities Derivatives
5. Initial Public Offering (IPO)
6. Mutual Funds
7. Mutual Fund Service System (MFSS)
8. Exchange Traded Funds (ETFs)
9. Index Funds
10. Working Capital Funding
11. Direct Payout to Investors
Debt MarketI. References Rates (MIBID/MIBOR)
2. Zero-coupon Yield Curve (ZCYC)
3. Var for Government Securities
4. Constituent SGL Account
Major Indices
The NSE deals with the following major indices:
1. S&P CNX Nifty
2. CNX Nifty Junior
3. S&PCNX500
4. S&P CNX Defty
5. CNX Midcap 200
6. Other IISL Indices
7. CNX IT Sector Index
8. CNX FMCG Index
9. CNX Millennium Index
10. CNX Segment Indices CNX PSE Index/CNX MNC index /CNX IBG Index
I. S & P CNX Industry Indices
12. Customized Indices
DerivativesThe derivatives that are dealt in include:
I. S&P CNX Nifty Futures
2. S&P CNX Nifty
3. Futures on Individual Securities
4. Options on Individual Securities
Computer-to-Computer Link (CTCL) FacilityNSE offers a facility to its trading members by which members can use their own trading front-end software in J order to trade on the NSE trading system. This facility called Computer-to-Computer Link (CTCL) facility is available only to trading members of NSE.
Trading Members can use their own software running on any suitable hardware/software platform of their choice. This software would be a replacement of the NEAT front-end software that is currently used by members to trade on the NSF trading system. Members can use software customized to meet their specialized needs like provision of on-line trade analysis, risk management tools, integration of back-office operations. etc. The dealers of the member may trade using the software remotely through the members own private networks subject to approvals from Department of Telecommunication, etc as may be required in this regard.
Internet-based TradingThe Securities and Exchange Board of India (SEBJ) approved the report on Internet Trading brought out by the SEBI Committee on Internet Based Trading and Services. Internet trading can take place through order routing systems, which will route client orders to exchange trading systems for execution. Thus a client sitting in any part of the country would be able to trade using the internet as a medium through brokers’ internet trading systems. SF81-registered brokers can introduce Internet based trading after obtaining permission from respective stock exchanges. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start internet based trading and services.
NSE became the first exchange to grant approval to its members for providing internet based trading services. In line with SEBI directives, NSE has issued circulars detailing the requirements and procedures to be complied with by members desirous of providing internet based trading and services. Members can procure the internet trading software from software vendors who are empanelled with NSE or they may develop the software through their own in-house development team or may procure the software from other non-empanelled vendors. Members can also avail of services provided by Application Service Providers(ASP) (which may inter-alia include providing/maintaining software/hardware other infrastructure etc.) for providing Internet based trading services subject to the Application Service Provider being empanelled with the exchange for providing such services.

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what is SENSEX ? (MBA)

what is SENSEX ?

The Sensex is an "index".
What is an index?
An index is basically an indicator. It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The Sensex is an indicator of all the major companies of the BSE. The Nifty is an indicator of all the major companies of the NSE. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down.
Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE. Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi.

MUTUAL FUNDS Notes by SEBI

MUTUAL FUNDS Notes by SEBI

Hi this is the full notes of MUTUAL FUNDS provided by SEBI(Securities Exchange Board of India) in a Question/Answer Format. Enjoy the power of Knowledge.

SEBI-Investor Education Programe:
Introduction
Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors. Like all investments, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The investors may seek advice from experts and consultants including agents and distributors of mutual funds schemes while making investment decisions.
With an objective to make the investors aware of functioning of mutual funds, an attempt has been made to provide information in question-answer format which may help the investors in taking investment decisions.


What is a Mutual Fund?
Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document.
Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unitholders.
The profits or losses are shared by the investors in proportion to their investments. The mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. A mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public.


What is the history of Mutual Funds in India and role of SEBI in mutual funds industry?
Unit Trust of India was the first mutual fund set up in India in the year 1963. In early 1990s, Government allowed public sector banks and institutions to set up mutual funds.
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI are - to protect the interest of investors in securities and to promote the development of and to regulate the securities market.
As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual funds to protect the interest of the investors. SEBI notified regulations for the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed to enter the capital market. The regulations were fully revised in 1996 and have been amended thereafter from time to time. SEBI has also issued guidelines to the mutual funds from time to time to protect the interests of investors.
All mutual funds whether promoted by public sector or private sector entities including those promoted by foreign entities are governed by the same set of Regulations. There is no distinction in regulatory requirements for these mutual funds and all are subject to monitoring and inspections by SEBI. The risks associated with the schemes launched by the mutual funds sponsored by these entities are of similar type. It may be mentioned here that Unit Trust of India (UTI) is not registered with SEBI as a mutual fund (as on January 15, 2002).


How is a mutual fund set up?
A mutual fund is set up in the form of a trust, which has sponsor, trustees, asset management company (AMC) and custodian. The trust is established by a sponsor or more than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its property for the benefit of the unitholders. Asset Management Company (AMC) approved by SEBI manages the funds by making investments in various types of securities. Custodian, who is registered with SEBI, holds the securities of various schemes of the fund in its custody. The trustees are vested with the general power of superintendence and direction over AMC. They monitor the performance and compliance of SEBI Regulations by the mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee company or board of trustees must be independent i.e. they should not be associated with the sponsors. Also, 50% of the directors of AMC must be independent. All mutual funds are required to be registered with SEBI before they launch any scheme. However, Unit Trust of India (UTI) is not registered with SEBI (as on January 15, 2002).


What is Net Asset Value (NAV) of a scheme?
The performance of a particular scheme of a mutual fund is denoted by Net Asset Value (NAV).
Mutual funds invest the money collected from the investors in securities markets. In simple words, Net Asset Value is the market value of the securities held by the scheme. Since market value of securities changes every day, NAV of a scheme also varies on day to day basis. The NAV per unit is the market value of securities of a scheme divided by the total number of units of the scheme on any particular date. For example, if the market value of securities of a mutual fund scheme is Rs. 200 lakhs and the mutual fund has issued 10 lakhs units of Rs.10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending on the type of scheme.


What are the different types of mutual fund schemes?
Schemes according to Maturity Period:

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on its maturity period.



Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-ended schemes is liquidity.



Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.



Schemes according to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:



Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.



Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.



Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.



Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.



Gilt Fund
These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.



Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as "tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.
There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.


What are sector specific funds/schemes?
These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.


What are Tax Saving Schemes?
These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act, 1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth opportunities and risks associated are like any equity-oriented scheme.


What is a Load or no-load Fund?
A Load Fund is one that charges a percentage of NAV for entry or exit. That is, each time one buys or sells units in the fund, a charge will be payable. This charge is used by the mutual fund for marketing and distribution expenses. Suppose the NAV per unit is Rs.10. If the entry as well as exit load charged is 1%, then the investors who buy would be required to pay Rs.10.10 and those who offer their units for repurchase to the mutual fund will get only Rs.9.90 per unit. The investors should take the loads into consideration while making investment as these affect their yields/returns. However, the investors should also consider the performance track record and service standards of the mutual fund which are more important. Efficient funds may give higher returns in spite of loads.
A no-load fund is one that does not charge for entry or exit. It means the investors can enter the fund/scheme at NAV and no additional charges are payable on purchase or sale of units.

Can  mutual fund impose fresh load or increase the load beyond the level mentioned in the offer documents?
Mutual funds cannot increase the load beyond the level mentioned in the offer document. Any change in the load will be applicable only to prospective investments and not to the original investments. In case of imposition of fresh loads or increase in existing loads, the mutual funds are required to amend their offer documents so that the new investors are aware of loads at the time of investments.


What is sale or redemption/repurchased price?
The price or NAV a unitholder is charged while investing in an open-ended scheme is called sales price. It may include sales load, if applicable.
Repurchase or redemption price is the price or NAV at which an open-ended scheme purchases or redeems its units from the unitholders. It may include exit load, if applicable.


What is an assured return scheme?
Assured return schemes are those schemes that assure a specific return to the unitholders irrespective of performance of a  scheme.
A scheme cannot promise returns unless such returns are fully guaranteed by the sponsor or AMC and this is required to be disclosed by the offer document.
Investors should carefully read the offer document whether return is assured for the entire period of the scheme or only for a certain period. Some schemes assure returns one year at a time and they review and change it at the beginning of the next year.


will a mutual fund change the asset allocation while deploying funds of investors?
Considering the market trends, any prudent fund managers can change the asset allocation i.e. he can invest higher or lower percentage of the fund in equity or debt instruments compared to what is disclosed in the offer document. It can be done on a short term basis on defensive considerations i.e. to protect the NAV. Hence the fund managers are allowed certain flexibility in altering the asset allocation considering the interest of the investors. In case the mutual fund wants to change the asset allocation on a permanent basis, they are required to inform the unitholders and giving them option to exit the scheme at prevailing NAV without any load.

How long will it take for transfer of units after purchase from stock markets in case of close-ended schemes?

According to SEBI Regulations, transfer of units is required to be done within thirty days from the date of lodgment of certificates with the mutual fund.