National Institute of Technology 2009 M.B.A Finance ESSENTIALS OF MANAGEMENT - Question Paper

To ensure that the code of ethics is firmly ingrained, I would appoint an ethics committee which would consist of internal and external directors. The functions of such a committee would include:
Holding regular meetings to explain ethical problems
Communicating the code to all members of the organization
Checking for possible violations of the code
Enforcing the code
Rewarding compliance and punishing violations
Reviewing and updating the code
Reporting activities of the committee to the board of directors


Q. 2: A) "Planning is looking ahead and Control is looking back"- Comment.
ANS: Planning involves selecting missions and objectives and the actions to achieve them. It needed decision making that is, choosing from among option future courses of action. Plans thus give a rational approach to achieve reselected objectives. Planning bridges the gap from where we are to where we want to go.
Control involves the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accomplished.
Planning and Control are inseparable - the Siamese twins of management or like blades of a pair of scissors. The scissors cannot work unless there are 2 blades. Any attempt to control without plans is meaningless, since there is no way for people to tell whether they are going where the> want to go unless they 1st know where they want to go. Without objectives and plans, control is not possible because performance has to be measured against a few established criteria. Plans thus furnish the standards of control. Plans are the yardsticks against which managers devise controls.
Q. 2: B) Why are contingency strategies important?
ANS:
The last key aspect of the strategic planning process is testing for consistency and preparing contingency plans. Since the future cannot be predicted with a high degree of certainty, contingency plans used to be prepared. E.g.: A strategy may be prepared with the assumption that Gross National Product may increase 3% annually over the next three years. A contingency plan may also be made in which the scenario includes a major recession.
a different example of preparing contingency strategies is in the BPO/ITES industry where data is critical to their operations. In fact the data is critical to the very existence of these organizations. Contingency strategies need to be in place in the event of a telecommunication breakdown or a few natural disasters like floods or earthquakes

Earning:   Approval pending.