BUSINESS MANAGEMENT ETHICS AND COMMUNICATION - ICSI

490 Pages·2012·1.7 MB·English

STUDY MATERIAL
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BUSINESS MANAGEMENT
ETHICS
AND COMMUNICATION
PAPER 2
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FOUNDATION PROGRAMME – IMPORTANT NOTE
The study material has been written in lucid and simple language and conscious efforts have been made to
acquaint students with basic principles of management, ethics and communication skills applied in business
environment. This study material has been divided into three main parts–
Part-A Business Management,
Part-B Business Ethics, and
Part-C Business Communication
The institute has decided that the first examination for Foundation Programme under new syllabus will be held
from December 2012 session in the Optical Mark Recognition (OMR) format, whereby students are required to
answer multiple choice questions on OMR sheet by darkening the appropriate choice by HB pencil. One mark
will be awarded for each correct answer. There is NO NEGATIVE mark for incorrect answers.
The specimen OMR sheet is appended at the end of the study material. There are two self test question papers
in the study to acquaint students with the pattern of examination. These are for practice purpose only, not to be
sent to the institute.
For supplementing the information contained in the study material, students may refer to the economic and
financial dailies, commercial, legal and management journals, Economic Survey (latest), CS Foundation Course
Bulletin, Suggested Readings and References mentioned in the study material and relevant websites.
The objective of the study material is to provide students with the learning material according to the syllabus of
the subject of the Foundation Programme. In the event of any doubt, students may write to the Directorate of
Academics and Professional Development in the Institute for clarification at [email protected]
Although due care has been taken in preparing and publishing this study material, yet the possibility of errors,
omissions and/or discrepancies cannot be ruled out. This publication is released with an understanding that the
Institute shall not be responsible for any errors, omissions and/or discrepancies or any action taken on the basis
of contents of the study material.
Should there be any discrepancy, error or omission noted in the study material, the Institute shall be obliged if
the same are brought to its notice for issue of corrigendum in the CS Foundation Course Bulletin.
iii
SYLLABUS
PAPER 2: BUSINESS MANAGEMENT, ETHICS AND COMMUNICATION
Level of Knowledge: Basic Knowledge
Objectives: To acquaint with the basic principles of management, ethics and communication techniques.
PART A: BUSINESS MANAGEMENT (40 Marks)
1. Nature of Management and its Process
– Meaning, Objectives, Importance; Nature of Management- Science, Art Profession; Management
Approaches; Management Functions- Planning, Organizing, Personnel Management, Directing and
Control; Principles of Management- Fayol’s and Taylor’s Principles; Managerial Skills; Task and
Responsibilities of Professional Manager
2. Planning
– Concept, Features, Importance, Limitations; Planning process; Types of Plans - Objectives, Strategy,
Policy, Procedure, Method, Rule, Budget; Plan vs. Programme, Policies and Procedures; Decision-
Making
3. Organisation
– Concept, Features, Importance, Limitations; Organizing Process; Types of Organisation; Structure of
Organisation; Centralisation and De-Centralisation; Delegation; Growth in Organisation
4. Human Resource Management
– Concept, Features, Importance, Limitations; Recruitment Process- Selection; Training and Development-
Methods; Functions of Personnel Manager; Performance Appraisal
5. Direction and Co-ordination
– Direction: Concept, Features, Importance, Limitations; Elements of Direction: Elements of Directing –
Supervision, Motivation, Leadership, Communication;
– Co-ordination: Concept, Features, Importance, Limitations; Types- Internal and External; Co-ordination-
the Essence of Management
6. Controlling
– Concept, Features, Importance, Limitations; Control Process; Essentials of a Good Control System;
Techniques of Control- Traditional and Non-Traditional Control Devices; Relationship between Planning
and Controlling; Change Management
7. Recent Trends in Management
– Change Management
– Crisis Management
– Total Quality Management
– Risk Management
– Global Practices
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PART B: BUSINESS ETHICS (20 MARKS)
8. Business Ethics
– Genesis, Concepts, Elements, Ethics in Business
– Challenges of business ethics and corporate leadership
– Ethical principles in business – Indian perspective
PART C: BUSINESS COMMUNICATION (40 Marks)
9. Business Communication
– Concept, Features, Importance, Limitations; Means of Communication- written, oral, visual, audio-
visual
– Principles and Essentials of Business Communication
– Process of Communication
– Barriers to Communication
10. Essentials of Good English
– Grammar and usage; enriching vocabulary, words - multiple meaning, single word for a group of words
- choice of words - words frequently mis-spelt; punctuations, prefix and suffix; parts of speech; articles;
synonyms and antonyms; tenses; idioms and phrases; foreign words and phrases commonly used;
abbreviations and numerals; pronunciation. Latin, French and Roman words which are used in
abbreviated form like “e.g., RSVP, viz. etc.”
11. Business Correspondence
– Human Resource: Preparation of Resume, Job application, Drafting Of Interview Letters, Call Letters and
Offer of Appointment, Provisional and Final Appointment Orders; Goodwill Messages, Condolence Letters
– Purchase: Requests for Quotations, Tenders, Samples and Drawings; Purchase Order, Order
acceptance, Complaints and Follow-Up
– Sales: Drafting of Sales Letters, Circulars, Preparation of Sale Notes, Sales Reports, Sales Promotion
Matters, Customers’ correspondence - Regarding Dues, Follow up Letters
– Accounts: Correspondence with Various Agencies; Banks - Regarding Over-Drafts, Cash Credits and
Account Current, Insurance Companies - Regarding Payment, Renewal of Insurance Premium, Claims
and their Settlement
– Secretarial: Correspondence With Shareholders And Debenture-Holders Pertaining To Dividend And
Interest, Transfer And Transmission, Stock Exchanges, Registrar Of Companies And Various Authorities
Like Reserve Bank Of India, SEBI
– Introduction to Preparation of Agenda and Minutes for Meetings
12. Administration
– Drafting of Messages; Messages through Electronic Media; Public Notices and Invitations;
Representations to Trade Associations, Chambers of Commerce and Public Authorities
13. Inter-departmental Communication
– Internal memos; Office Circulars; Office Orders; Office Notes; Representation to Chief Executive and
Replies thereto; Communication with Regional/Branch Offices
14. Preparation of Press Releases
15. E Correspondence
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LIST OF RECOMMENDED BOOKS*
PAPER 2 : BUSINESS MANAGEMENT, ETHICS AND COMMUNICATION
Readings
1. N.C. Jain, Saakhshi Management: Theory and Practice; A.I.T.B.S. Publishers, Delhi.
2. J.P. Mahajan Management – Theory and Practice; Ane Books Pvt. Ltd., Daryaganj, New Delhi-26
3. L.M. Prasad Principles and Practice of Management
4. T. Ramasamy Principles of Management; Himalaya Publishing House
5. M.C. Shukla Business Organisation & Management; Sultan Chand & Co., New Delhi.
6. Y.K. Bhusan Fundamentals of Business Organisation & Management; Sultan Chand & Co.,
New Delhi.
7. Singh & Chabra Business Organisation and Management; Kitab Mahal, Allahabad.
8. J.S. Chandan Management: Concepts and Strategies; Vikas Publishing House Pvt. Ltd., New Delhi.
9. George IT Milkovich Human Resource Management
and Jahri W. Boudreau,
Chicago
10. Lan Breadwell and Human Resource Management; Macmillan, New Delhi.
Lan Holden
11. C.S. Venkataratnam Personnel Management and Human Resources; Tata McGraw Hill, New Delhi.
and B. K. Srivastava
12. K. Dayal Management Training in Organizations; Prentice Hall of India, New Delhi.
13. Daryl Koehn The Ground of Professional Ethics
14. Robert Almeder, Business Ethics – Revised Edition – Corporate Values and Society
James Humber
15. Robert E. Federick Companion to Business Ethics; Blackwell Publishers Limited, UK
16. Ashok K. Nadhani Business Ethics and Business Communications; Taxmann Publications Pvt.
Ltd., New Delhi.
17. S. Balachandran, Ethics, Indian Ethos and Management; Shroff Publication.
Raja, Nair
18. Vikas Publishing Modern Grammar with Practical Exercises.
House Pvt. Ltd.
19. Rodney Huddleston English Grammar - An Outline; Low Price Editions, Cambridge University Press.
20. G.S. Mudambadithaya English Grammar and Composition; Vikas Publishing House Pvt. Ltd.
21. K. K. Sinha Business Communication Galgotia Publishing Company Ltd.
22. Varinder Kumar Business Communication & organisation management.
and Bodh Raj
23. R.S.N. Pillai Commercial Correspondence and Office Management; S. Chand & Company
and Bagavathi Ltd.
*This study material is sufficient from the point of view of syllabus. The students may refer these books for further knowledge and
study of the subject.
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24. Reddy, Appannaiah & Essentials of Business Communication Himalaya Publishing House.
Nagaraj Raja Rao
25. Ramesh M.S., Business Communication; R. Chand & Co., 1, Ansari Road, Daryaganj, New
Pattanshetti & Delhi.
Madhumati M. Kulkarni
26. R.C. Bhatia Business Communication; AES Publishers, Daryaganj, New Delhi.
27. R. Satya Raju & Management – Text and Cases, PHI Learning Pvt. Ltd.
A. Parthasarthi
References
1. P.C. Tripathi and Principles of Management; Tata McGraw Hills Publishing Company Ltd., New
P.N. Reddy Delhi.
2. J. C. Sinha, Business Management; S. Chand & Co., New Delhi.
V. N. Mugata
3. Peter F. Drucker Principles of Management
4. Koontz and O’Donnell Principles of Management
5. Joseph M. Putti Management: A Functional Approach
6.. Raymond Murphy Intermediate English Grammar; Cambridge University Press.
7. Stuart Redman English Vocabulary in Use Pre-intermediate and Intermediate; Low Price
Editions, Cambridge University Press.
8. Michael McCarthy & English Vocabulary in Use - 100 Units of Vocabulary Reference and Practice;
Felicity O’Dell Low-Price Editions, Cambridge University Press.
9. Oxford University Press The Concise Oxford Dictionary; Latest Edition.
10. Cambridge University Cambridge International Dictionary of English; Latest Edition.
Press
11. Harper Perennial The Original Roget’s International Thesaurus.
12. Sidney Greenbaum The Oxford English Grammar; Oxford University Press.
13. Graham King Collins Word Power - Good Grammer; Harper Collins.
14. Rosemary Communication for Results; A.I.T.B.S. Publishers and Distributors.
T. Fruehling &
Joan M. Lacombe
15. Herta A. Murphy & Effective Business Communication; McGraw-Hill International Editions.
Herbet W. Hildebrandt
16. Mary Ellen Guffey Business Communication - Process & Product; South-Western College
Publishing.
17. A. P. Cowie & R. Mackin Oxford Dictionary of Phrasal Verbs; Oxford University Press.
18. A. P. Cowie, R. Mackin Oxford Dictionary of Phrasal English Idioms; Oxford University Press.
& I.R. McCaig
19. Collins (Publishers) The New Collins Thesaurus; Latest Edition.
20. Merriam-Webster Merriam-Webster’s Collegiate Thesaurus.
Incorporated
21. Asha Kaul Business Communication, PHI Learning Pvt. Ltd.
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CONTENTS
PART A: BUSINESS MANAGEMENT
LESSON 1
NATURE OF MANAGEMENT AND ITS PROCESS
Page
Concept of Management 3
Objectives of Management 3
Importance of Management 4
Management – Science or Art 4
– Features of Management as a Science 5
– Features of Management as an Art 5
Management as Profession 6
– Features of Management as Profession 6
Schools of Management 6
Management Functions 8
Review Questions 9
– Planning 9
– Organising 10
– Human Resource Management/Staffing 10
– Direction 11
– Control 11
Innovations and Manager 11
Co-Ordination- The Essence of Management 12
– Principles of Coordination 12
Development of Management Theory 13
Principles of Management 13
– Frederick Taylor 13
– Henry Fayol 14
– Contributions of the Behaviouralists, Sociologists and Psychologists 15
– Importance of Management Theory 16
– Contingency Management 16
– Responsibilities of Management 16
Administration and Management 17
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Page
Managerial Skills 18
Tasks and Responsibilities of Professional Managers 21
LESSON ROUND UP 22
GLOSSARY 23
SELF-TEST QUESTIONS 23
LESSON 2
PLANNING
Concept of Planning 26
Features of Planning 26
Importance of Planning 27
Limitations of Planning 28
Types of Plans 29
Planning Components 29
Review Questions 31
Planning Process/ Steps Involved In Planning 32
Concept of Forecasting 34
Steps in Forecasting 34
Advantages of Forecasting 34
Concept of Decision Making 35
Decision Making Conditions 35
Principles of Decision Making 36
Steps in Decision Making 36
Hierarchy of Decisions 38
Decision Making by Groups 38
Evaluating Decision’s Importance 39
LESSON ROUND UP 39
GLOSSARY 39
SELF TEST QUESTIONS 40
LESSON 3
ORGANISATION
Concept of Organisation 44
Importance of Organisation 44
Process of Organisation 45
Types of Organisation Structure 45
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Page
Formal Organisation Structure 46
1. Line Organisation 46
Review Questions 48
2. Functional Organisation 48
3. Line and Staff Organisation 49
4. Project Management Organisation 50
5. Matrix Organisation 51
Informal Organisation 52
Structure of Organisation 54
Growth in Organisation 55
Authority and Responsibility 56
– Nature of Authority 56
– Responsibility 56
– Accountability 57
– Authority – Power Continuum 57
– Balance of Authority, Power, Responsibility and Accountability 57
– Delegation of Authority 57
– Process of Delegation 58
– Barriers to Delegation 58
– Principles of Delegation 58
Centralisation and Decentralisation 61
– Advantages of Decentralisation 61
– Advantages of Centralisation 61
– Factors Determining the Degree of Decentralisation 62
– Delegation and Decentralisation 63
LESSON ROUND UP 64
GLOSSARY 64
SELF-TEST QUESTIONS 64
LESSON 4
HUMAN RESOURCE MANAGEMENT
Concept of Human Resource Management 68
Difference between Personnel Management and HRM 69
Similarities between PM and HRM 70
Features of Human Resource Management 70
Importance of Human Resource Management 71
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