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Effect of company । संगति का असर । motiv...

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Who funds Ildian Industry, Why it matters ? Using data on listed lnidan firms from the mid-1980s to the 1990s, several issues relating to lndian indutry were investigated. One aspect then wast the extremely limited extent to which promoters and entrepreeneurs actually owned shares in the various compaines they had control of . Nevertheless in spite of the relative lack of ownership, the majority of listed entities , mostly private sector companies , were managed by these founders, their successive family members and other promoters as if they were fiefdoms. By and large, Indian companies were essentially financed by debt. This was unlike in the West. if the total debt plus nominal equity capital in the average. Indian company was 100, then 67 per cent of that amount came if the form of debt capital while equity capital contributed only 33 per cent. if the share of govberment ownership in corporate equity and the share of financial instituions, equity was added, then over 60 per cent (26.69+ 19.89 + 5.49+ 8.44) of firms' finances were funded by the state in one form or another. Foreign shareholder, in spite of a lot a clamour about their role in Inida's corporate economy, hardly owned more than 4 per cent ( 3.54) of the shares in Inida's listed compnaies. While the public at large probided about 11 per cent of th finaces of a average Inidan listed company, the sharte of the Top 50 shareholders was less than 2 ( 1.85) per cent. IT is within this particular shareholding category that promoters, entrepreneurs and the other large shareholder's equity stakes fall under for the purposes of classification. The public at large provides five times as much money for the company as teh enrepreneurs. Yetm a group of induviduals, whose fiancial contributions towards a company are exceedingly small in magnitude, effectively control the company. Explain few factors affecting this decsion.

A company X Ltd. Is setting up a new plant in India for manufacturing auto components. India has highly competitive and cost-effective production base in this sector. Many reputed car manufactures source their auto components form here. X Ltd. Si planning to capture about 40% of the market share in India and also export to the tune of at least $ 5 million in about 2 years of its planned operations. To achieve these targets, it requires a highly trained and motivated workforce. You have been retained by the company to advise it in this matter. Suggest the company about the three main aspects of staffing function.

Mr Sandhu worked as a manager in a company manufacturing stationery items for 10 years. Later he thought of starting his own business as he acquired the skills and expertise in past years. He started his own venture. He divides the organisation into six major departments Production, Purchase, Marketing, Legal, Human resource and Finance. After a month, he called upon the meeting of all the department heads in his office and told and production marketing and finance department managers to be very vigilant as their departments are critical to the success of the business. Short comings in Purchase, Personnel or Legal department would not affect much the success of business. Therefore, Mr Sandhu determined deviation tolerance limits for the critical departments. 1. Identify the two functions of management referred above. 2. Describe the relevent concept of the indetified functions.

A company X ltd. Is setting up a new plant in India for manufacturing auto components, India is highly competive and cost effective production base in this sector. X Ltd. Is planning to capture about 40% of the market share in India and also export to the tune of at least $ 5 million in about 2 years of its planned operations. To achieve these targets it requries a highly trained and motivated work force. you has been retained by the company to advise it in this matter. (i) Outline the process of staffing the company should flow. (ii) Which sources of recruitment shold the company refy upon? Give reason for your recommedation. (iii) Outline the process of selection the company should follow with reasons? (iv) Which methods of training and development should company initiate? Explain giving reasons.

Y Ltd. Is a bank functioning in India. It is planning to diversity into insurance business. Lately, the government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But not with liberalisation of the company and to make the field competitive other companies have been given licence to start insurance business under the regulation of 'Insurance Regulatory and Development Authority'. Y Ltd. plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business. a) Identify how the company can supervise its employees and agents effectively. b) What financial and non-financial incentive can the company use for employees and agents separately to motivate them? c) How can the company ensure that higher order needs i.e., esteem and self actualisation as specified by Maslow are met? d) How can informal communication help to supplement formal communication?

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