Master Quick Recall — Complete Revision Sheet

Last-mile revision condensing all 96 topics of UGC NET-JRF Management Paper 2 into one document. Use this in the final 48 hours before the exam — each chapter’s Quick Recall callouts pulled together in syllabus order.

Chapter 1 — Management Foundations And Managerial Economics

1. Management – Concept, Process, Theories and Approaches, Management Roles and Skills

Topic 1 Quick Recall

Management = goal-directed coordination of work; judged on efficiency (means) and effectiveness (ends). Drucker: doing things right vs doing the right things.
Three lenses: Science · Art · Profession → settled view: inexact science, practising art, developing profession.
Three levels: Top (strategic, conceptual), Middle (tactical, human+conceptual), Lower (operational, technical+human).
Katz’s three skills: Technical (peaks at bottom), Human (equal at all levels), Conceptual (peaks at top). Design added later by Koontz — not Katz’s original.
Mintzberg (1973), 10 roles, 3-3-4 split: Interpersonal (Figurehead, Leader, Liaison) · Informational (Monitor, Disseminator, Spokesperson) · Decisional (Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator).
Process functions: Fayol’s POCCC (5) → Gulick & Urwick’s POSDCORB (7) → modern POSLC / POSDC (5).
Three waves: Classical (Taylor 1911, Fayol 1916, Weber 1922) → Neo-classical (Mayo 1924–32, Maslow 1943, McGregor 1960, Herzberg 1959) → Modern (Bertalanffy 1968 systems, Burns–Stalker / Woodward / Lawrence–Lorsch / Fiedler contingency, Simon 1947 quantitative + bounded rationality).
Taylor’s 4 principles; Fayol’s 14 principles & 5 functions; Weber’s 3 authority types (Traditional, Charismatic, Rational-legal).
Hawthorne (Western Electric, Chicago; 4 experiments — Illumination, Relay Assembly, Mass Interview, Bank Wiring): attention > physical conditions.
MBO — Drucker, Practice of Management (1954); codified by Odiorne (1965); SMART objectives (Doran 1981).
Koontz’s “Management Theory Jungle” (1961, 1980) — 11+ overlapping schools.
Simon — bounded rationality + satisficing; 1978 Nobel Prize.

2. Functions of Management — Planning, Organising, Staffing, Directing, Controlling

Topic 2 Quick Recall

Five functions (Koontz, Robbins): Planning · Organising · Staffing · Directing · Controlling. POSDCORB adds CO-ordinating · Reporting · Budgeting (Gulick & Urwick 1937).
Fayol’s original five (1916): Plan, Organise, Command, Coordinate, Control — note “command” not “lead”.
Planning steps (Koontz, 8): opportunity → objectives → premises → alternatives → comparison → choice → derivative plans → budgeting.
Plan hierarchy: Mission → Objectives → Strategies → Policies → Procedures → Rules → Programmes → Budgets. Standing (policy/procedure/rule) vs Single-use (programme/project/budget).
MBO (Drucker 1954; Odiorne 1965) — joint goal-setting; SMART = Specific, Measurable, Achievable, Relevant, Time-bound (Doran 1981).
Organising tagline: authority delegated, responsibility never. Authority flows down, responsibility flows up.
Graicunas (1933): R = n(2ⁿ/2 + n − 1). n=4 → 44, n=5 → 100, n=6 → 222.
Authority types: Line (command), Staff (advisory), Functional (limited specialist command).
Departmentation bases: Functional, Product, Geographic, Customer, Process, Matrix.
Directing’s 4 pillars: Supervision · Motivation · Leadership · Communication.
Control process (4 steps): Standards → Measure → Compare → Corrective action. Three timings: Feedforward / Concurrent / Feedback.
Control techniques: Budgetary, Standard costing, SQC, BEP, Ratio, Audit, MIS, Balanced Scorecard (Kaplan & Norton 1992), PERT/CPM, Six Sigma.
MBE (Taylor; Bittel 1964) — focus only on significant deviations.
Coordination ≠ sixth function → it is the essence. Follett’s 4 principles: Direct contact · Early stage · Reciprocal relationship · Continuity. Coordination is enforceable; cooperation is voluntary.

3. Communication — Types, Process and Barriers

Topic 3 Quick Recall

Definition: communication = transfer + understanding of meaning (Robbins). Barnard — first function of an executive is to maintain a system of communication.
Shannon-Weaver (1949) — 7 elements: Sender · Encoding · Message · Channel · Decoding · Receiver · Feedback (+ Noise).
Berlo SMCR (1960) — Source · Message · Channel · Receiver, each with 5 sub-factors.
Older models: Aristotle (Speaker→Speech→Audience); Lasswell (1948 — Who/Says What/Channel/To Whom/Effect); Schramm (1954 — circular, field of experience); Westley-MacLean (1957 — gatekeeping).
Four directions: Downward, Upward, Horizontal/Lateral, Diagonal/Crosswise.
Formal vs Informal (Grapevine) — Keith Davis (1953): 4 patterns (Single Strand, Gossip, Probability, Cluster — most common); grapevine is 70–80 % accurate.
Channel richness (Daft & Lengel 1986): face-to-face > video > phone > email > formal report > posted notice.
Mehrabian (1971) 55-38-7 — body language 55 %, tone 38 %, words 7 % (for feelings only).
Non-verbal branches: Kinesics (body), Paralanguage (tone), Proxemics (space — Hall 1966), Chronemics (time), Haptics (touch), Oculesics (eye).
Hall’s 4 zones: Intimate · Personal · Social · Public.
7 C’s — Completeness · Conciseness · Consideration · Concreteness · Clarity · Courtesy · Correctness.
5 barriers — Physical · Semantic · Psychological · Organisational · Personal. Named barriers: Filtering (sender), Selective perception (receiver), Information overload.
Active / empathetic listening — Carl Rogers; listening to understand, not to reply.

4. Decision Making — Concept, Process, Techniques and Tools

Topic 4 Quick Recall

Simon — “management = decision making”; introduced programmed vs non-programmed and bounded rationality + satisficing (Administrative Behavior, 1947). Nobel 1978.
Three information states: Certainty · Risk (EMV, decision trees) · Uncertainty (criteria below). Knight (1921) added ambiguity.
Five rules under uncertainty: Maximax (optimist) · Maximin/Wald (pessimist) · Minimax Regret (Savage) · Hurwicz (α-weighted) · Laplace (equal probabilities).
EMV = Σ pᵢ × Vᵢ. Picked when probabilities are known and decision-maker is risk-neutral.
Robbins’s 8 steps: Problem · Criteria · Weights · Alternatives · Analyse · Select · Implement · Evaluate (with feedback loop).
Bounded rationality = limits of info, cognition, time → satisficing. Administrative Man vs Economic Man.
Kahneman & Tversky — biases (anchoring, availability, confirmation, sunk-cost, framing, loss aversion, hindsight, representativeness). Thinking, Fast and Slow (2011): System 1 (fast/intuitive) · System 2 (slow/analytical). Kahneman Nobel 2002.
Group techniques: Brainstorming (Osborn 1953) · NGT (Delbecq–Van de Ven 1968) · Delphi (Helmer–Dalkey 1959) · Devil’s Advocate (Mason–Mitroff).
Groupthink (Janis 1972) — 8 symptoms; remedies: devil’s advocate, outside experts, second-chance meetings.
Klein (1998) — recognition-primed intuitive decisions in experts.
OR tools: LP/Simplex (Dantzig 1947) · Game theory (von Neumann–Morgenstern 1944) · Queueing (Erlang 1909) · EOQ (Harris 1913) · PERT/CPM (1957–58) · Monte Carlo (1940s) · Markov chains (1906).
Vroom-Yetton-Jago five decision styles: AI · AII · CI · CII · GII.

5. Organisation Structure and Design — Types, Authority, Centralisation, Span of Control

Topic 5 Quick Recall

Six Robbins blocks: Work specialisation · Departmentation · Chain of command · Span of control · Centralisation/Decentralisation · Formalisation.
6 bases of departmentation: Functional · Product · Geographic · Customer · Process · Matrix.
Span: Narrow → tall; Wide → flat. Graicunas (1933) R = n(2ⁿ/2 + n−1); n=5 → 100.
Authority (delegable, flows down) vs Responsibility / Accountability (non-delegable, flow up).
3 sources of authority: Formal (Fayol/Weber top-down) · Acceptance (Barnard 1938 — zone of indifference) · Competence (expertise).
3 authority types: Line · Staff · Functional.
French & Raven (1959) — 5 bases of power: Legitimate · Reward · Coercive · Expert · Referent (Raven added Informational in 1965). Position = first 3; Personal = last 2.
Mechanistic vs Organic (Burns & Stalker, 1961) — mechanistic for stable, organic for dynamic environments.
Mintzberg’s 5 parts: Strategic Apex · Middle Line · Operating Core · Technostructure · Support Staff (later +Ideology).
Mintzberg’s 5 configurations: Simple (direct supervision) · Machine Bureaucracy (work processes) · Professional Bureaucracy (skills) · Divisionalised (outputs) · Adhocracy (mutual adjustment).
Contingency studies: Woodward 1958 (Technology — unit/mass/process) · Burns-Stalker 1961 (Environment) · Lawrence-Lorsch 1967 (Differentiation-Integration) · Aston 1968 (Size).
Chandler (1962) — “Structure follows strategy”; later Hall-Saias reversed it.
Matrix violates unity of command; boundaryless popularised by Jack Welch at GE.

6. Managerial Economics — Concept and Importance

Topic 6 Quick Recall

Managerial Economics = economic theory + decision sciences applied to the firm. Spencer & Siegelman (1959) — most-quoted definition. Joel Dean (1951) — first textbook.
Predominantly microeconomic; uses macro as planning premises.
Positive (what is) vs Normative (what ought to be). Managerial decisions need both.
Six fundamental concepts: Incremental · Opportunity cost · Time perspective · Discounting · Equi-marginal · Contribution / Marginal.
Equi-marginal (Marshall 1890): MR₁/P₁ = MR₂/P₂ = … = MRₙ/Pₙ. PV = C/(1+r)ⁿ.
Why the firm? Coase (1937) — transaction costs. Williamson — TCE.
Theories of profit: Walker (rent) · Taussig (wages) · Clark (dynamic) · Schumpeter (innovation) · Hawley (risk) · Knight (uncertainty).
Accounting profit vs Economic profit; Normal profit = zero economic profit (the entrepreneur’s opportunity cost).
Alternative firm goals: Baumol (sales) · Williamson (managerial utility) · Marris (growth) · Cyert & March (behavioural / satisficing) · Freeman (stakeholders 1984) · Rappaport (shareholder value 1986) · Elkington (triple bottom line 1994 — People/Planet/Profit).
Agency theory — Jensen & Meckling (1976). Earlier: Berle & Means (1932) on separation of ownership and control.
Scope (6 areas): Demand · Cost/Production · Pricing · Profit · Capital · Risk.

7. Demand Analysis — Utility, Indifference Curves, Elasticity and Forecasting

Topic 7 Quick Recall

Demand = willingness + ability to buy at a price & period (ceteris paribus). Demand vs Quantity demanded — shift vs movement.
Law of demand — inverse P–Q relationship (Marshall). Drivers: substitution + income effects.
Exceptions: Giffen (inferior, poor) · Veblen (conspicuous, rich) · Speculation · Necessities · Ignorance.
Demand types: Joint · Composite · Derived · Autonomous; Individual vs Market; Short-run vs Long-run.
Cardinal / Utility analysis (Marshall): DMU = Gossen’s 1st Law; Equi-marginal (MUₓ/Pₓ = MUᵧ/Pᵧ) = Gossen’s 2nd Law; Consumer surplus = Marshall.
Ordinal / Indifference analysis (Pareto · Hicks-Allen 1934): IC properties; equilibrium MRS = Pₓ/Pᵧ. Hicks decomposed price effect into substitution + income components.
Engel’s Law (1857): food share of income falls as income rises.
Elasticity: Eₚ (own-price), E_Y (income), E_XY (cross), advertising. Five degrees (0, <1, =1, >1, ∞).
TR–Eₚ rule (Marshall): Eₚ > 1 → P↑ shrinks TR; Eₚ = 1 → TR fixed; Eₚ < 1 → P↑ grows TR.
E_Y signs: < 0 inferior; 0–1 necessity; > 1 luxury. E_XY: + substitutes; − complements; 0 independent.
Forecasting methods — Qualitative (Consumer survey, Sales force, Delphi, Market experiment) · Quantitative (Trend, Moving avg, Exponential smoothing, ARIMA, Regression, Barometric, Input-output).
Criteria of a good forecast: Accuracy · Plausibility · Durability · Flexibility · Economy.

8. Market Structures and Price Determination

Topic 8 Quick Recall

Five determinants of market structure: Number, Product, Entry, Information, Mobility.
Four classical structures: Perfect Competition (many · homogeneous · free entry · price-taker) · Monopolistic Competition (many · differentiated) · Oligopoly (few · interdependent) · Monopoly (one · blocked entry).
Universal profit-max rule: MR = MC, with MC rising. In PC: P = AR = MR = MC = min LAC (long run).
Marshall’s time periods: Market period (supply fixed) · Short run · Long run · Secular.
MR–Eₚ relation: MR = P(1 − 1/Eₚ). Monopolist always operates where Eₚ > 1.
Monopoly sources: Legal, Natural, Technical (natural monopoly), Strategic.
Pigou’s three degrees of price discrimination: First (perfect) · Second (block) · Third (segment).
Monopolistic competition (Chamberlin & Robinson, 1933) — excess capacity theorem; product differentiation; non-price competition.
Oligopoly models: Cournot (quantity, 1838) · Bertrand (price, 1883) · Stackelberg (sequential, 1934) · Sweezy (kinked demand, 1939) · Edgeworth.
Game theory — von Neumann-Morgenstern (1944), Nash equilibrium (1950, Nobel 1994). Cartels unstable because of prisoner’s dilemma.
Price leadership — dominant-firm or barometric.
Pricing methods: Cost-plus · Marginal · Target-return · Going-rate · Skimming (high → low) · Penetration (low to gain share, e.g., Jio) · Value-based · Predatory · Limit · Loss-leader · Bundle · Two-part tariff · Peak-load (Uber surge) · Auction · Psychological (₹999).
Other market types: Monopsony (one buyer) · Oligopsony (few buyers) · Bilateral monopoly.

9. National Income — Concept, Types and Measurement

Topic 9 Quick Recall

Definitions — Marshall (production), Pigou (money-measurability), Fisher (consumer-services), Kuznets (final use; Nobel 1971).
Five aggregates on three axes (Gross/Net · Domestic/National · MP/FC). GNP = GDP + NFIA; NNP = GNP − Depreciation; NI = NNP at FC; FC = MP − Indirect Tax + Subsidies.
Three measurement methods: Product/Value-added · Income (W+R+I+P+Mixed) · Expenditure (C + I + G + X − M). All three are equal by identity.
Personal Income = NI − retained profits − corp tax − SS contribution + transfers. DPI = PI − Personal Direct Tax.
GDP deflator = (Nominal / Real) × 100. Broader than CPI / WPI.
Exclude from NI: transfer payments, second-hand sales, capital gains, intermediate goods, illegal income (officially).
India institutional set-up: Naoroji 1868 (first estimate) → V.K.R.V. Rao 1925 → Mahalanobis 1949 NI Committee → CSO 1955 → base year 2011-12 (since 2015) → NSO/MoSPI (2019). Sectoral shares ~ Primary 17 %, Secondary 26 %, Services 57 %.
Alternative welfare measures: HDI (UNDP 1990 — Mahbub ul Haq & Amartya Sen) · GPI · GNH (Bhutan) · OECD Better Life · Stiglitz-Sen-Fitoussi (2009).
Circular flow equilibrium: I + G + X = S + T + M in four-sector economy.

10. Inflation — Concept, Types, Measurement and Control

Topic 10 Quick Recall

Definitions: Crowther (falling money value), Pigou (money-income expansion), Friedman (“always and everywhere a monetary phenomenon”), Coulborn (“too much money chasing too few goods”).
Related concepts: Deflation (negative) · Disinflation (slowing) · Stagflation (inflation + stagnation) · Reflation.
By severity: Creeping (<3 %) · Walking (3–10 %) · Galloping (10–100 %) · Hyperinflation (Cagan: > 50 %/month).
By cause: Demand-pull (AD ↑) vs Cost-push (AS ↓ / wage / oil shock). Built-in (wage-price spiral); Imported (depreciation).
By context: Open vs Suppressed · Headline vs Core (excludes food & fuel).
Theories: Fisher MV = PT · Cambridge cash-balance M = kPY · Keynes inflationary gap · Friedman monetarist + k% rule · Phillips curve (1958) · Friedman-Phelps long-run vertical at NRU/NAIRU (1968).
Effects — gainers (borrowers, equity, producers, government [inflation tax]) vs losers (creditors, bondholders, fixed-income earners).
India indices: WPI (base 2011-12, DPIIT Economic Adviser, wholesale, 697 items) · CPI-Combined (base 2012, NSO, retail, headline since 2014) · CPI-IW · CPI-AL.
Inflation Targeting (India) — 4 % ± 2 % CPI; 6-member MPC; statutory since 2016 amendment of RBI Act; Urjit Patel Committee 2014. First adopter: New Zealand 1990.
Control toolkit: Monetary (Repo, CRR, SLR, OMO, MSF, LAF, Bank Rate) · Fiscal (cut spending, raise direct tax) · Trade (lower import duties, restrict exports) · Administered (PDS, buffer stock) · Income policy.

12. Ethical Issues and Dilemma

Topic 12 Quick Recall

Ethical issue = moral implications; Ethical dilemma = no clean choice; Ethical problem = decision needed with possibly a right answer.
Three hallmarks of a dilemma: conflict · stakes · no clean choice.
Common issues: Conflict of Interest (disclose + recuse — actual / potential / apparent) · Insider trading (SEBI PIT Regs, 2015) · Bribery (PoCA 1988; FCPA 1977; UK Bribery Act 2010 — no facilitation payments) · Discrimination · POSH Act 2013 (from Vishaka 1997) · Privacy (DPDP 2023, GDPR 2018) · Whistleblowing.
Kidder (1995) — four “right-vs-right” paradigms: Truth–Loyalty · Individual–Community · Short-term–Long-term · Justice–Mercy. Three resolution principles: Ends-based · Rule-based · Care-based.
Velasquez 6-step decision framework; Laura Nash’s 12 Questions (HBR 1981); PLUS model; Markkula five lenses.
Quick gut tests: Front-page (Buffett) · Mom · Mirror · TV · Universalisability (Kant) · Reversibility (Golden Rule).
Iconic cases: Bhopal 1984 (safety) · Tylenol 1982 (positive) · Enron 2001 → SOX 2002 (accounting) · Satyam 2009 (India’s Enron) · VW Dieselgate 2015 (emissions) · Wells Fargo 2016 (sales culture) · Cambridge Analytica 2018 (privacy) · IL&FS 2018 · PNB-Nirav Modi 2018 · Boeing 737 MAX 2018-19.
Code of Ethics mandated by Companies Act Schedule IV + SEBI LODR Reg 17/26. UN Global Compact — 10 principles in 4 areas (HR, Labour, Environment, Anti-corruption) launched 2000.
India anti-corruption: CVC (1964) · CBI · Lokpal (Act 2013, first appointed 2019) · SFIO (2003) · ED.

13. Corporate Governance

Topic 13 Quick Recall

Definitions: Cadbury 1992 (“directed and controlled”); OECD 2015 (relationships); Murthy (trusteeship); King (ethics).
Pillars (TARF): Transparency · Accountability · Responsibility · Fairness; King adds Sustainability.
Foundations: Berle & Means 1932 (separation of ownership and control); Jensen-Meckling 1976 (agency theory); Donaldson-Davis 1991 (stewardship theory); Freeman 1984 (stakeholder).
Global reports: Cadbury 1992 (UK) · Greenbury 1995 · Hampel 1998 → Combined Code · King I-IV (SA, 1994–2016) · OECD Principles 1999/2004/2015/2023 — 6 chapters · SOX 2002 (US) — S.302, S.404, PCAOB · Higgs 2003 · Smith 2003.
India: CII Bajaj 1998 · Kumar Mangalam Birla 1999 → Clause 49 (2000) · Naresh Chandra 2002 · Narayana Murthy 2003 revised Clause 49 (2006) · Companies Act 2013 · LODR 2015 · Uday Kotak Committee 2017 → LODR amendments 2018.
Companies Act 2013 key sections: 134 · 135 (CSR) · 138 (Internal audit) · 139 (Auditor rotation: 5+5 / 10+10) · 149 (Board composition; 1 woman director; ≥ 1/3 independent) · 165 (Cap: 20 total / 10 public) · 166 (Director duties — 7) · 177 (Audit Cttee — 3 mins, 2/3 independent + vigil mechanism) · 178 (NRC + Stakeholders Cttee) · 188 (RPT) · 197 (11 % cap on remuneration) · 245 (Class action) · Schedule IV (IDs).
LODR 2015: Reg 17 (Board) · Reg 18 (Audit) · Reg 19 (NRC) · Reg 20 (Stakeholders) · Reg 21 (Risk Mgmt — top 1 000) · Reg 22 (Vigil mechanism) · Reg 23 (RPT — 10 % materiality) · Reg 25 (ID obligations) · Reg 34 (BRSR for top 1 000).
ID tenure: 2 × 5-year terms = 10 years max, then 3-year cooling off.
Companion regimes: Insider Trading Regs 2015 · IBC 2016 · DPDP 2023 · BRSR FY 2022-23.

14. Value-Based Organisation

Topic 14 Quick Recall

Values = enduring beliefs that guide behaviour (Rokeach). Value-based organisation = values + purpose drive decisions; rules tell what, values tell who.
Values vs Vision vs Mission vs Strategy: who · where · why · how.
Schein’s three levels: Artefacts → Espoused values → Basic underlying assumptions (deepest).
Rokeach (1973): 18 Terminal (end-states) + 18 Instrumental (modes of behaviour) values.
Schwartz (1992) — 10 universal motivational values on 2 axes (self-enhancement vs self-transcendence; openness vs conservation).
Hofstede (1980 IBM study, extended 2010) — 6 dimensions: PDI · IDV · MAS · UAI · LTO (1991) · IVR (2010). India: high PDI, low UAI.
Allport-Vernon (1931) — 6 value orientations: Theoretical, Economic, Aesthetic, Social, Political, Religious.
Indian Ethos in Management (S.K. Chakraborty, IIM Calcutta) — Sat-Chit-Ananda · Karma yoga (Gita ch. III) · Dharma · Niskama karma · Sthitaprajna · Shreyas-Preyas (Katha Upanishad) · Trusteeship (Gandhi) · Lokasamgraha · Yajna spirit.
Three Gunas: Sattva · Rajas · Tamas.
Collins & Porras (1994) — Built to Last; “Preserve the core, stimulate progress”; BHAG = Big Hairy Audacious Goal.
Iconic value statements: Tata (Integrity, Responsibility, Excellence, Pioneering, Unity); J&J Credo (Patients → Employees → Community → Shareholders); Infosys C-LIFE; Wipro Spirit; Mahindra Rise.

Chapter 2 — Organisational Behaviour and HRM Foundations

15. Organisational Behaviour — Significance and Theories

Topic 15 Quick Recall

OB = systematic study of human behaviour in organisations (Robbins-Judge). Three units: Individual · Group · Organisation.
Luthans’s four goals: Describe · Understand · Predict · Control.
Lewin equation: B = f(P, E).
Contributing disciplines: Psychology (individual) · Sociology + Social Psych + Political Science (group/organisation) · Anthropology (culture) · Economics.
Three waves: Classical (Taylor/Fayol/Weber — efficiency) → Neo-classical (Mayo/Maslow/McGregor — human relations) → Modern (Lewin, Schein, Bandura, Robbins).
Hawthorne (Mayo, Western Electric Chicago 1924–32) — four experiments; Hawthorne Effect; Bank Wiring Room reveals informal group norms.
Behavioural anchors: Lewin (force-field, change), Maslow (hierarchy of needs, 1943), McGregor (X/Y, 1960), Herzberg (two-factor, 1959), Likert (4 systems, 1961), Argyris (immaturity-maturity), Skinner (operant), Bandura (social learning + self-efficacy 1977), Schein (culture 1985).
Davis’s five OB models: Autocratic → Custodial → Supportive → Collegial → System.
OB approaches: Human Resource · Contingency · Systems · Productivity · Interdisciplinary · Inter-actionist.
Pre-classical: Robert Owen (Father of Personnel Management); Charles Babbage 1832.
Indian contributors: Udai Pareek (Father of HRD in India), T.V. Rao (HRD audit), S.K. Chakraborty (Indian ethos), P.N. Khandwalla.

16. Individual Behaviour — Personality, Perception, Values, Attitudes, Learning, Motivation

Topic 16 Quick Recall

Six building blocks: Personality · Perception · Attitudes · Values · Learning · Motivation.
Personality determinants: heredity · environment · situation.
Big Five (OCEAN) — Conscientiousness is the strongest performance predictor.
Other trait models: Cattell 16PF · Eysenck PEN · HEXACO (+Honesty-Humility) · Dark Triad (Mach, Narcissism, Psychopathy).
MBTI — 4 dichotomies → 16 types; built on Jung. Freud’s Id/Ego/Superego; Erikson’s 8 psychosocial stages.
Key OB attributes: Locus of Control (Rotter 1966) · Self-monitoring (Snyder) · Type A/B (Friedman-Rosenman) · Self-efficacy (Bandura) · Machiavellianism · Proactive personality.
Perception: 3 factors (perceiver/target/situation); shortcuts — Halo · Horn · Stereotyping · Projection · Contrast · Primacy/Recency · Pygmalion (Rosenthal-Jacobson 1968).
Kelley attribution: Distinctiveness · Consensus · Consistency. Errors — Fundamental, Self-serving, Actor-observer.
Attitudes ABC: Affective · Behavioural · Cognitive. Cognitive dissonance — Festinger 1957. Three commitments — Affective/Continuance/Normative (Meyer-Allen 1991).
Learning: Classical (Pavlov) · Operant (Skinner) · Cognitive (Tolman) · Social (Bandura 1977 + self-efficacy).
Reinforcement strategies: Positive · Negative · Punishment · Extinction. Schedules: Continuous vs Intermittent (FI · VI · FR · VR most resistant).
Content motivation: Maslow (5 levels) · ERG (Alderfer 1969) · McClelland (nAch/nAff/nPow 1961) · Herzberg (Hygiene vs Motivator 1959).
Process motivation: Vroom Expectancy (M = E × I × V, 1964) · Adams Equity (1963) · Locke-Latham Goal-Setting · Porter-Lawler (1968) · Skinner Reinforcement.

17. Group Behaviour — Team Building, Leadership, Group Dynamics

Topic 17 Quick Recall

Group — interacting + interdependent + objective (Robbins-Judge). Schein adds felt membership.
Types: Formal (command, task, committee, project) · Informal (interest, friendship, reference, membership).
Tuckman (1965+1977): Forming → Storming → Norming → Performing → Adjourning. Alternative — Gersick’s Punctuated Equilibrium (1988) with mid-point transition.
5 group properties: Roles · Norms · Status · Size · Cohesiveness.
Iconic group experiments: Asch (1951 — conformity) · Zimbardo Stanford Prison (1971 — roles) · Milgram (obedience) · Ringelmann (1913 — social loafing) · Latané (1979 — social loafing rediscovered).
Groupthink — Janis 1972; 8 symptoms; cases: Bay of Pigs, Challenger, Iraq WMD.
Group decision techniques: Brainstorming (Osborn) · NGT (Delbecq-Van de Ven) · Delphi (Helmer-Dalkey) · Devil’s Advocate · GDSS.
Team vs Group: positive synergy + mutual accountability + complementary skills.
Belbin’s 9 team roles in 3 clusters (action / people / thinking).
Leadership families: Trait · Behavioural (Ohio · Michigan · Blake-Mouton 9,9 Team Mgmt) · Contingency (Fiedler LPC, Hersey-Blanchard 4 styles by R1-R4, House Path-Goal 4 styles, Vroom-Yetton-Jago 5 styles) · Transformational (Bass’s 4 I’s) · Contemporary (Servant — Greenleaf 1970, Authentic — George 2003, LMX — Graen 1975).
Lewin 3 styles: Autocratic · Democratic · Laissez-faire.
Power bases (French-Raven): Legitimate · Reward · Coercive (position) + Expert · Referent (personal) + Informational (Raven 1965).
Thomas-Kilmann conflict modes: Competing · Collaborating · Compromising · Avoiding · Accommodating. Pondy stages: Latent → Perceived → Felt → Manifest → Aftermath.
Negotiation: Distributive vs Integrative; BATNA — Fisher-Ury 1981.

18. Interpersonal Behaviour and Transactional Analysis

Topic 18 Quick Recall

Johari Window (Luft & Ingham 1955) — 4 panes: Open/Arena · Hidden/Façade · Blind · Unknown. Two processes: self-disclosure (shrinks Hidden) + feedback solicitation (shrinks Blind). Goal: enlarge the Arena.
4 interpersonal styles by self-disclosure × feedback: Turtle · Interviewer · Bull · Effective.
Transactional Analysis (Eric Berne 1961, Games People Play 1964) — three ego states (PAC): Parent (Critical / Nurturing) · Adult · Child (Free / Adapted / Little Professor).
3 transaction types: Complementary · Crossed · Ulterior.
4 life positions (Thomas Harris 1969 I’m OK — You’re OK): healthy is I’m OK — You’re OK.
Strokes — units of recognition. Berne: “Any stroke is better than no stroke.”
Time structuring (6 ways): Withdrawal · Rituals · Pastimes · Activities · Games · Intimacy.
Stages of TA: Structural · Transactional · Game · Script analysis.
FIRO-B (William Schutz 1958) — 3 interpersonal needs (Inclusion · Control · Affection) × 2 dimensions (Expressed · Wanted).
Interpersonal skills: Active listening (Carl Rogers) · Empathy · Assertiveness (vs Aggression vs Passive vs Passive-Aggressive) · Constructive feedback · Conflict management · Non-verbal awareness.

19. Organisational Culture and Climate

Topic 19 Quick Recall

Culture = shared meanings (“the way we do things around here” — Deal-Kennedy). Schein’s three levels: Artefacts → Espoused values → Basic underlying assumptions.
Robbins’s 7 characteristics: Innovation/risk · Detail · Outcome · People · Team · Aggressiveness · Stability.
Functions: boundary, identity, commitment, stability, sense-making. Dysfunctions: barrier to change, diversity, M&A, new entrants.
Typologies: Handy (Power/Zeus · Role/Apollo · Task/Athena · Person/Dionysus) · Deal-Kennedy (Tough-Guy · Work-Hard · Bet-the-Company · Process — on risk × feedback) · Cameron-Quinn (Clan · Adhocracy · Market · Hierarchy + OCAI) · Trompenaars (Family · Eiffel Tower · Guided Missile · Incubator) · Ouchi Theory Z (1981).
National-culture frameworks: Hofstede 6 dimensions (PDI, IDV, MAS, UAI, LTO 1991, IVR 2010) · GLOBE (Robert House 2004 — 9 dimensions, 62 countries) · Trompenaars 7 dimensions.
Culture creation/sustenance: founders → indoctrination → role modelling. Schein’s 6 primary + 6 secondary embedding mechanisms.
Socialisation: Pre-arrival → Encounter → Metamorphosis. Trice-Beyer 6 rites: Passage · Enhancement · Renewal · Integration · Conflict reduction · Degradation.
Climate (surface, short-term, perception-based) vs Culture (deep, long-term, assumption-based). Litwin-Stringer (1968) 6 climate dimensions: Structure · Responsibility · Reward · Risk · Warmth & support · Conflict. Indian — Pareek’s MAO-C.

20. Workforce Diversity and Cross-Cultural Organisational Behaviour

Topic 20 Quick Recall

Diversity layers: Surface-level (demographic) vs Deep-level (personality, values). Loden-Rosener: Primary (unchangeable) vs Secondary (changeable).
Vocabulary: EEO < AA < D&I < DEI < DEIB / DEIA. Equality vs Equity vs Inclusion vs Belonging.
Gender concepts: Glass ceiling (Hymowitz-Schellhardt 1986) · Sticky floor · Glass cliff (Ryan-Haslam 2005) · Leaky pipeline · Mommy track.
Indian laws: Constitution Arts 14/15/16/17/39 · Equal Remuneration Act 1976 (now Code on Wages 2019) · Maternity Benefit Amendment 2017 — 26 weeks · POSH Act 2013 (from Vishaka 1997; ICC for 10+ employees) · RPwD Act 2016 — 21 categories, 4 % reservation · Transgender Act 2019. Total reservation = 59.5 % after EWS 2019.
Cross-cultural frameworks: Hofstede 6 (PDI · IDV · MAS · UAI · LTO 1991 · IVR 2010) · Trompenaars 7 (Universalism/Particularism, Indiv/Communit, Specific/Diffuse, Neutral/Affective, Achievement/Ascription, Sequential/Synchronous, Internal/External) · Hall (High/Low-context, Mono/Polychronic) · GLOBE 9 (House 2004, 62 countries).
Culture shock 4 stages (Oberg 1960): Honeymoon · Disillusionment · Adjustment · Mastery.
Berry’s 4 acculturation strategies: Integration · Assimilation · Separation · Marginalisation.
Cox & Blake (1991) — 6 business advantages: Cost · Resource acquisition · Marketing · Creativity · Problem-solving · System flexibility.
R. Roosevelt Thomas Jr. — Father of corporate diversity management; founded AIMD 1984.

21. Emotions and Stress Management

Topic 21 Quick Recall

Affect (umbrella) > Emotions (intense, directed, brief) vs Moods (diffuse, longer). Ekman 6 (happiness, sadness, surprise, fear, anger, disgust) · Plutchik 8 in 4 pairs.
AET (Weiss-Cropanzano 1996) — work events → emotions → attitudes/behaviour.
Emotional labour (Hochschild 1983) — Surface vs Deep acting; emotional dissonance; display rules.
EI — proposed by Salovey-Mayer 1990; popularised by Goleman 1995. Goleman 5 = Self-Awareness · Self-Regulation · Motivation · Empathy · Social Skills. EQ = Bar-On.
Three EI models: Ability (MSCEIT) · Mixed (ECI, EQ-i) · Trait (TEIQue).
Stress — Selye 1936 (father of stress); eustress vs distress; GAS three stages: Alarm · Resistance · Exhaustion.
Yerkes-Dodson (1908) — inverted U between arousal and performance.
Stressor sources: Environmental · Organisational · Personal (Robbins). Karasek Demand-Control — high-strain = high demand + low control. Siegrist Effort-Reward Imbalance (1996). Holmes-Rahe SRRS (1967) — death of spouse = 100 LCU.
Burnout (Maslach 1981) 3 dimensions: Emotional Exhaustion · Depersonalisation · Reduced Personal Accomplishment. WHO ICD-11 (2019) — burnout = occupational phenomenon.
Type A vs Type B (Friedman-Rosenman 1959); Type D (Denollet 1996).
Coping: Lazarus-Folkman 1984 (Problem-focused vs Emotion-focused). MBSR — Jon Kabat-Zinn 1979. CBT (Beck), REBT (Ellis).
PsyCap — HERO (Luthans): Hope · Efficacy · Resilience · Optimism.
India: Mental Healthcare Act 2017.

22. Organisational Justice and Whistle-blowing

Topic 22 Quick Recall

Organisational Justice coined by Jerald Greenberg 1987 = study of fairness at work.
Equity Theory (Adams 1963/65) = compare own input/outcome ratio with a referent. Six responses to inequity. Four referents (Self-inside / Self-outside / Other-inside / Other-outside).
Four dimensions of justice (Colquitt 2001): Distributive (Adams/Homans — outcomes) · Procedural (Thibaut-Walker 1975 + Leventhal 1980 — process) · Interpersonal + Informational (Bies-Moag 1986; Greenberg 1993).
Distributive allocation rules: Equity · Equality · Need.
Leventhal’s 6 procedural criteria: Consistency · Bias suppression · Accuracy · Correctability · Representativeness · Ethicality.
OCB (Dennis Organ 1988) — 5 dimensions: Altruism · Conscientiousness · Sportsmanship · Courtesy · Civic Virtue. Justice perception predicts OCB.
CWB / Workplace Deviance (Robinson-Bennett 1995): Production · Property · Political · Personal aggression (minor/serious × interpersonal/organisational).
Whistle-blowing definition (Near-Miceli 1985); types — Internal/External · Open/Anonymous · Personal/Impersonal.
Iconic whistle-blowers: Daniel Ellsberg (Pentagon Papers 1971) · Mark Felt (Watergate 1972) · Sherron Watkins (Enron 2001) · Cynthia Cooper (WorldCom 2002) · Coleen Rowley (FBI 9/11) · Edward Snowden (NSA 2013) · India: Satyendra Dubey (NHAI 2003) · S. Manjunath (IOC 2005) — murdered.
Time Persons of the Year 2002 = Cooper · Watkins · Rowley.
Legal framework: US — False Claims Act 1863 (qui tam) · SOX Sec 806 (2002) · Dodd-Frank (2010) — 10-30 % bounty. UK — PIDA 1998. EU — Whistleblower Directive 2019. India — Whistleblowers Protection Act 2014 (public servants; CVC) · Companies Act Sec 177(9) · SEBI LODR Reg 22 vigil mechanism · SEBI PIT Reg 7B (insider-trading reward).

23. Human Resource Management — Concept, Perspectives and Recent Trends

Topic 23 Quick Recall

Working definitions: Flippo (procurement→separation, 6 sub-processes) · Dessler · Aswathappa · Armstrong · Storey.
Personnel Management → HRM → SHRM → HCM — same field, different emphasis.
Storey (1992) — Personnel vs HRM: Compliance vs Commitment; Pluralist vs Unitarist; Bureaucratic vs Organic.
Objectives (Cherrington): Societal · Organisational · Functional · Personal.
Functions: Managerial + Operative (Procurement · Development · Compensation · Integration · Maintenance · IR · Separation).
Models: Michigan / Matching (Fombrun-Tichy-Devanna 1984; Hard) · Harvard 4 Cs (Beer et al. 1984; Soft — Commitment · Competence · Congruence · Cost-effectiveness) · Guest (1989 — 4 policy goals + 4 outcomes) · Warwick (Hendry-Pettigrew 1990 — inner + outer context) · Ulrich (1997 — 4 HR roles: Strategic Partner · Change Agent · Admin Expert · Employee Champion).
Pfeffer’s 7 HR practices; Schuler’s 5-P (Philosophy · Policies · Programmes · Practices · Processes); AMO Model (Ability × Motivation × Opportunity); HPWS (bundles); RBV / VRIN (Barney 1991).
SHRM approaches: Best-practice (Pfeffer) · Best-fit (Schuler-Jackson 1987) · Configurational (Delery-Doty 1996).
Indian milestones: Royal Commission on Labour 1929 · Factories Act 1948 · NIPM 1959 Kolkata · NHRDN 1985 · Udai Pareek & T.V. Rao designed L&T HRD 1974 · Pareek “Father of HRD in India”.
HRD vs HRM — HRD is a subset focused on development; Leonard Nadler coined HRD in 1969 (ASTD Miami Beach).
Modern trends: People Analytics · AI in HR · Gig economy · Hybrid work · EX · Wellness · DEI · Green HRM · HR-tech · Continuous PM · Skill-based hiring.

24. HR Planning, Recruitment, Selection, Induction, Training and Development

Topic 24 Quick Recall

HRP = right number + right kind + right time + right place. 6 steps: Objectives → Demand → Supply → Gap → Action → Monitor.
Hard HRP (quantitative) vs Soft HRP (qualitative).
Forecasting: Qualitative (judgement, Delphi, NGT) · Time-series · Ratio · Work-study · Skills inventory · Markov.
Job Analysis → JD (duties) + JS (qualifications). Methods: Observation · Interview · Questionnaire (PAQ — McCormick 1972) · Diary · Critical Incident (Flanagan 1954) · Performance · Conference.
Recruitment = positive (attract); Selection = negative (reject). Internal vs External sources.
Realistic Job Preview (Wanous 1973) reduces turnover.
Selection process — 7 steps: Preliminary screen → Tests → Interview → References → Medical → Offer → Induction.
Tests: Intelligence · Aptitude · Personality · Interest · Achievement · Projective · SJT · Work-sample · Assessment Centre (AT&T 1956, Douglas Bray).
Schmidt-Hunter validity ranks: structured interview (~0.51) ≈ GMA (~0.51) > work sample > AC > unstructured interview > experience > references > graphology.
Interview types: Structured · Unstructured · Patterned · Panel · Stress · BDI (STAR — Situation/Task/Action/Result) · Situational.
Selection errors: Type I (False Positive — hired unfit) · Type II (False Negative — rejected fit).
Induction — 3-stage socialisation (Pre-arrival/Encounter/Metamorphosis).
Training vs Development — short skills vs long capability. ADDIE model (Analyse-Design-Develop-Implement-Evaluate). TNA — McGehee & Thayer 1961 3 levels (Organisational · Task · Person).
OJT (rotation, coaching, apprenticeship, JIT 4-step) vs Off-JT (lecture, case, role-play, in-basket, simulation, T-group/sensitivity NTL 1947).
Kirkpatrick 4 levels (1959): Reaction · Learning · Behaviour · Results. Phillips ROI Level 5. CIPP (Stufflebeam 1971).
70-20-10 (Lombardo-Eichinger 1996) — 70 % on-job · 20 % others · 10 % formal.
Action Learning — Reg Revans (1940s) — L = P + Q.
Super’s 5 career stages: Growth · Exploration · Establishment · Maintenance · Decline.
India: NIPM (1959 Kolkata) · ASCI (1956 Hyderabad) · LBSNAA Mussoorie · NSDC 2009 · PMKVY · NSQF (2013, 10 levels) · Skill India 2015.

25. Job Analysis, Job Evaluation and Compensation Management

Topic 25 Quick Recall

Job Analysis → JD (duties) + JS (qualifications) — foundation of JE.
Job Design approaches: Engineering (Taylor) · Human Relations (Mayo) · Job Characteristics (Hackman-Oldham) · Socio-technical (Tavistock — Trist & Bamforth 1951).
Job Rotation · Enlargement (horizontal) · Enrichment (vertical, Herzberg).
JCM (Hackman-Oldham 1976) — 5 core dimensions: Skill variety · Task identity · Task significance · Autonomy · Feedback → MPS = avg(SV+TI+TS) × Autonomy × Feedback → meaningfulness · responsibility · knowledge of results.
Job Crafting (Wrzesniewski-Dutton 2001).
Job Evaluation — evaluates job, not worker.
JE methods: Non-quantitative (Ranking · Classification) vs Quantitative (Point — Lott 1925 · Factor Comparison — Benge 1926).
Compensable factors (Equal Pay Act 1963): Skill · Effort · Responsibility · Working conditions.
Hay Method (1951): Know-how · Problem-solving · Accountability + Working conditions.
Theories of wages: Subsistence (Ricardo) · Wages-Fund (Mill) · Surplus-Value (Marx) · Residual-Claimant (Walker) · Marginal Productivity (J.B. Clark 1899) · Bargaining (Davidson) · Behavioural (March-Simon).
Indian wage concepts: Minimum · Statutory Minimum · Fair · Living · Need-based (15th ILC 1957 — Aykroyd formula).
Equity tests: Internal (JE) · External (surveys) · Individual (PMS).
Indian wage laws: Payment of Wages 1936 · Minimum Wages 1948 · Equal Remuneration 1976 · Payment of Bonus 1965 (8.33-20 %) · Gratuity 1972 (15 days × LDS × years; cap ₹20 lakh) · EPF 1952 (12 % each) · ESI 1948 · Maternity Benefit 1961 (2017 amend — 26 weeks).
Four Labour Codes (2019-20): Wages · Industrial Relations · Social Security · OSH.
Section 197 Companies Act — managerial remuneration cap 11 % of net profit.
Incentive plans: Piece-rate · Taylor differential · Halsey (50 % saved) · Rowan · Gantt · Bedaux · Scanlon · Rucker · Improshare · ESOP.
Compa-ratio = salary / midpoint. Broadbanding = collapse pay grades. Pay-level strategy: lead / match / lag.
WorldatWork Total Rewards (6): Compensation · Benefits · Well-being · Recognition · Development · Work-life.

Chapter 3 — Strategic HRM and Industrial Relations

26. Strategic Role of Human Resource Management

Topic 26 Quick Recall

SHRM — Wright & McMahan 1992; HRM coupled with business strategy.
SHRM vs Traditional HRM — proactive vs reactive; long-term vs short-term; integrated vs siloed.
Three approaches: Best-Practice (Pfeffer 1998 — 7 practices); Best-Fit (Schuler-Jackson 1987); Configurational (Delery-Doty 1996).
Miles-Snow (1978): Defenders · Prospectors · Analysers · Reactors.
Schuler-Jackson HR fit for Porter’s three strategies.
6 SHRM models: Michigan (Fombrun-Tichy-Devanna 1984) · Harvard 4 Cs (Beer 1984) · Guest (1989) · Warwick (Hendry-Pettigrew 1990) · 5-P (Schuler 1992) · Ulrich 4 roles (1997).
Golden-Ramanujam (1985) linkage levels: Administrative · One-way · Two-way · Integrative.
HPWS — Huselid (1995) — bundles produce 24 % higher market value.
RBV — VRIN (Barney 1991); VRIO adds Organisation.
HR Scorecard — Becker, Huselid & Ulrich (2001) — 4 perspectives.
War for Talent — McKinsey (Chambers et al.) 1998.
Boundaryless career — Arthur & Rousseau (1996).
Modern SHRM trends — People Analytics · AI · Hybrid · EX · Skill-based · DEI · Sustainability.

27. Competency Mapping and Balanced Scorecard

Topic 27 Quick Recall

McClelland 1973 — “Testing for Competence Rather than Intelligence” — origin of competency in HRM.
Boyatzis 1982 — The Competent Manager; 21 management competencies.
Spencer & Spencer 1993 — Iceberg model: Knowledge + Skill (visible) vs Self-concept + Traits + Motives (hidden).
KSAO: Knowledge · Skills · Abilities · Other characteristics.
Threshold vs Differentiating competencies.
Core Competence — Hamel & Prahalad (HBR 1990): 3 tests — Customer value · Competitive uniqueness · Extendability. Honda engines, Sony miniaturisation, Canon optics.
Competency mapping — 8 steps; BEI (McClelland); Repertory Grid (Kelly).
Lominger (Lombardo-Eichinger) — 67 competencies, 6 clusters.
Balanced Scorecard — Kaplan & Norton (HBR 1992) — four perspectives: Financial · Customer · Internal Process · Learning & Growth.
Strategy Map (2004) — L&G → Process → Customer → Financial.
Five principles of strategy-focused organisation (Kaplan-Norton 2001): Translate · Align · Everyone’s job · Continual · Mobilise.
HR Scorecard (Becker-Huselid-Ulrich 2001) — HR adaptation of BSC.
Other frameworks: Tableau de Bord (France 1930s) · Performance Pyramid · EFQM · Six Sigma · OKR (Grove at Intel; Doerr at Google 1999) · Skandia Navigator (Edvinsson 1994) · TBL (Elkington 1994) · Beyond Budgeting (Hope-Fraser 2003).

28. Career Planning and Development

Topic 28 Quick Recall

Career = sequence of work experiences over a lifetime (Schein 1978, Hall 2002).
Career planning (individual) vs Career development (joint) vs Career management (organisation).
Schein’s 8 career anchors: Technical · Managerial · Autonomy · Security · Entrepreneurial · Service · Challenge · Lifestyle (added later).
Super (1957) — 5 stages: Growth · Exploration · Establishment · Maintenance · Decline; Career Rainbow (1980).
Hall — 4 stages: Exploration · Establishment · Maintenance · Decline.
Greenhaus — 5 stages: Occupational Prep · Org Entry · Early · Mid · Late.
Holland RIASEC (1973): Realistic · Investigative · Artistic · Social · Enterprising · Conventional — hexagon model.
Levinson (1978) — Seasons of life; mid-life transition 40-45.
Protean Career — Hall (1976) — self-directed, psychological success.
Boundaryless Career — Arthur & Rousseau (1996) — across firms, geographies.
Portfolio Career — Handy (1989); Plateau — Ference-Stoner-Warren (1977); Kaleidoscope ABC — Mainiero-Sullivan (2005).
Frank Parsons (1909) — founder of vocational guidance; Self-knowledge + Work-knowledge + True reasoning.
Career paths: Vertical · Lateral · Diagonal · Dual-ladder (IBM, Bell Labs).
Succession planning — 7 steps; 9-Box Grid (McKinsey-GE 1970s) — Performance × Potential.
Kram (1985): Career + Psychosocial functions; phases Initiation → Cultivation → Separation → Redefinition.
Modern trends: gig, hybrid, AI pathing, microcredentials, skill-based progression, sabbaticals, ESG careers.

29. Performance Management and Appraisal

Topic 29 Quick Recall

Performance Appraisal (event, periodic) vs Performance Management (continuous process).
Aubrey Daniels popularised PM in the 1970s/80s; Michael Armstrong standardised.
Definitions: Flippo (excellence + potential), Yoder, French, Armstrong, Aguinis (continuous, strategy-aligned).
Two objectives: Administrative (reward, promotion) + Developmental (training, feedback).
Cycle: Plan → Act → Monitor → Review → Develop.
Aguinis 6 steps: Prerequisites → Planning → Execution → Assessment → Review → Renewal.
Traditional methods: Ranking · Paired Comparison · Forced Distribution (20/70/10 — Jack Welch GE) · Graphic Rating · Checklist · Critical Incident (Flanagan 1954) · Essay · Confidential Report · Field Review.
Modern methods: MBO (Drucker 1954) · 360° (GE; Edwards-Ewen 1996) · BARS (Smith-Kendall 1963) · BOS (Latham-Wexley 1977) · Assessment Centre · HRA (Lev-Schwartz 1971 — PV of future earnings) · BSC cascade · Continuous PM (Adobe Check-in 2012) · OKRs.
Appraisal errors: Halo · Horn · Central Tendency · Leniency · Strictness · Recency · Primacy · Similar-to-me · Contrast · Stereotyping · Spillover · Status · Attribution.
Reducing errors: Rater training · Multiple raters · BARS/BOS · Calibration · Critical-incident diaries.
Feedback models: Pendleton (6 steps) · SBI (CCL) · GROW (Whitmore 1992) · AID.
Goal Setting Theory — Locke-Latham (1990): Clarity · Challenge · Commitment · Feedback · Task Complexity.
India: ACR → APAR since 2009 (2nd ARC) — open, two-way.
Pay-for-performance: Merit · Bonus · Profit-sharing · Scanlon-Rucker gainsharing · ESOPs.
Modern trends: Continuous PM · OKRs · People analytics · Real-time feedback apps · Strength-based · Hybrid-work outcome-based · DEI + ESG metrics.

30. Organisation Development and Change

Topic 30 Quick Recall

OD = planned, organisation-wide, top-managed, behavioural-science-based effort for effectiveness + health (Beckhard 1969).
Foundations: Kurt Lewin (T-groups, action research, Force Field) · NTL Bethel (1947) · Tavistock (1947).
Lewin’s 3 stages: Unfreeze → Change → Refreeze.
Force Field Analysis — drivers vs restrainers; reduce restrainers.
Action Research — Lewin (1946); French-Bell 8 stages.
Schein — psychological mechanisms; Process Consultation.
Kotter (1996) — 8 steps: Urgency · Coalition · Vision · Communicate · Empower · Short-term wins · Consolidate · Anchor.
ADKAR — Prosci/Hiatt (2003): Awareness · Desire · Knowledge · Ability · Reinforcement.
McKinsey 7S (1980) — 3 Hard (Strategy/Structure/Systems) + 4 Soft (Shared values · Skills · Style · Staff).
Burke-Litwin (1992) — transformational vs transactional factors.
Bridges (1991) — change vs transition; Ending → Neutral Zone → New Beginning.
Greiner (1972) — 5+1 growth stages with crises (Leadership · Autonomy · Control · Red tape · Internal · Identity).
Nadler-Tushman Congruence model.
Senge (1990) — Five Disciplines: Personal Mastery · Mental Models · Shared Vision · Team Learning · Systems Thinking ★.
Cummings-Worley 4 families: Human Process · Technostructural · HRM · Strategic Change.
Human-process interventions: T-Group · Team Building · Process Consultation · Third-Party Peacemaking · Survey Feedback · Confrontation Meeting.
Other: Grid OD (Blake-Mouton) · QWL (Walton) · QC (Ishikawa) · TQM · BPR (Hammer-Champy 1993) · Appreciative Inquiry 4-D (Cooperrider 1987) · Open Space · World Café · Future Search · Six Sigma · Lean/Kaizen.
Resistance — Kotter-Schlesinger (1979): 4 reasons; 6 strategies (Education · Participation · Facilitation · Negotiation · Manipulation · Coercion).
India: ISABS 1971 · Pareek-Rao HRD philosophy · OCTAPACE (Openness, Confrontation, Trust, Autonomy, Pro-activity, Authenticity, Collaboration, Experimentation).
Modern trends: Agile change · Digital transformation · Network-of-teams · Design thinking · Behavioural nudges · People analytics · Psychological safety · DEI + ESG culture change.

31. Talent Management and Skill Development

Topic 31 Quick Recall

War for Talent — McKinsey 1997 (Hankin) → The War for Talent (Michaels-Handfield-Jones-Axelrod 2001).
Definitions: Lewis-Heckman (2006), CIPD, McKinsey, Ulrich’s formula — Talent = Competence × Commitment × Contribution, Bersin.
HRM vs TM — TM focuses on critical / hi-po talent.
Inclusive vs Exclusive TM; modern firms hybrid.
6-step TM process: Workforce planning → Acquire → Onboard → Perform → Develop → Retain → Succession.
EVP — Tandehill (1998), Minchington (2005); Gartner’s 5 pillars (Compensation, Benefits, Career, Work Env, Culture).
Employer brand — Barrow & Ambler (1996).
Great Place to Work — Levering (1981): Trust Index = Credibility + Respect + Fairness; + Pride + Camaraderie.
Korn Ferry 3A Hi-Po: Ability + Aspiration + Engagement.
Lominger Learning Agility (5): Mental · People · Change · Results · Self-Awareness.
9-Box Grid (Topic 28) for Performance × Potential.
Skills: Hard · Soft · Functional · Cognitive · Digital · Future (WEF) · Life Skills (WHO 1993 — 10 core).
Reskilling (new role) vs Upskilling (deeper in same role) vs Cross-skilling · Right-skilling.
WEF Future of Jobs — 50 %+ workers need reskilling.
India skill ecosystem: NSDC (2008) · NSQF (2013 — 10 levels) · MSDE (2014) · PMKVY (2015) · Skill India Mission · National Apprenticeship Promotion Scheme · DDU-GKY · JSS · Sector Skill Councils.
70-20-10 — Lombardo-Eichinger / CCL: 70 % experience · 20 % exposure · 10 % education.
Learning theories (recap): Behaviourism (Skinner) · Social Learning (Bandura) · Experiential (Kolb) · Andragogy (Knowles 1968) · Bloom (revised: Remember-Understand-Apply-Analyse-Evaluate-Create) · Kirkpatrick 4 levels · Phillips ROI.
Modern learning: LMS · LXP (Degreed) · MOOCs (Coursera, edX, NPTEL) · microlearning · adaptive · VR/AR · AI tutors · microcredentials.
Retention levers — total rewards · career · meaning · recognition · WLB · manager quality · ESOPs · stay/exit interviews.
Modern trends: skills-based orgs · internal talent marketplaces · AI talent intelligence · boomerang hiring · gig integration · quiet quitting/quiet hiring · eNPS · holistic well-being · DEI + ESG employer brand.

32. Employee Engagement and Work-Life Balance

Topic 32 Quick Recall

Engagement origin — William Kahn (1990), AMJ; harnessing of selves to work roles.
Kahn’s 3 conditions: Meaningfulness · Safety · Availability.
Definitions: Kahn · Schaufeli-Bakker · Gallup · CIPD · Aon · Towers Watson.
UWES — Schaufeli & Bakker: Vigour · Dedication · Absorption.
Engagement is opposite of Burnout — Maslach Burnout Inventory: Exhaustion · Cynicism · Reduced Efficacy. WHO ICD-11 (2019) classified burnout as occupational phenomenon.
JD-R model — Demerouti et al. (2001): Job Demands vs Job Resources.
Gallup Q12 — Q01: “I know what is expected of me”. Three levels: Engaged · Not Engaged · Actively Disengaged. India ~30 %.
Aon Hewitt 3S: Say · Stay · Strive.
Distinguish: Job Satisfaction (Locke, Herzberg) · Org Commitment (Meyer-Allen — Affective, Continuance, Normative) · Engagement (Kahn, UWES).
Flow — Csikszentmihalyi (1990).
WLB origin: Kanter (1977); Greenhaus-Collins-Shaw definition.
Evolution: Balance → Integration (Friedman) → Harmony.
Theories: Role · Spillover (Staines 1980) · Compensation · Segmentation · Enrichment (Greenhaus-Powell 2006).
Greenhaus-Beutell (1985) — Time / Strain / Behaviour-based conflict.
WLB interventions: Flexitime · WFH · Compressed week · Job share · Sabbatical · Parental leave · Childcare · EAP · Wellness · Right-to-disconnect (France 2017).
India: Maternity Benefit Act amended 2017 — 26 weeks; POSH 2013; Factories Act; Labour Codes 2019-20.
Wellness dimensions: Physical · Mental · Financial · Social · Career · Spiritual · Environmental.
EAP — origins in US workplace alcoholism (Hughes Act 1970).
Trends: Hybrid · 4-day workweek · Right-to-disconnect · Burnout focus · Quiet quitting · Bleisure · eNPS · DEI · ESG-linked engagement.

34. Trade Unions and Collective Bargaining

Topic 34 Quick Recall

Webbs (1894) — foundational definition; History of Trade Unionism.
Definitions: Webbs · Indian TUA 1926 Sec. 2(h) · Yoder · Cole · V.V. Giri.
Functions: Militant · Welfare/Fraternal · Political · Social-responsibility.
Hoxie (1921) — Business · Uplift · Revolutionary · Predatory.
Theories: Marx (revolutionary) · Webbs (Industrial Democracy) · Perlman (Job consciousness 1928) · Tannenbaum (dehumanisation) · Commons (markets) · Hoxie (functional) · Gandhi (trusteeship) · Cole (guild socialism).
Types: Craft · Industrial · General · White-collar · Federation; Plant-Industry-National levels.
Indian milestones: 1918 — Madras Labour Union (B.P. Wadia) and Ahmedabad TLA (Gandhi) · 1920 — AITUC (Lajpat Rai, N.M. Joshi) · 1926 — Trade Unions Act · 1947 INTUC · 1948 HMS · 1955 BMS (D.B. Thengadi) · 1970 CITU · 1972 SEWA (Ela Bhatt).
TU Act 1926: Reg threshold (2001) — 10 % or 100; 50 % office bearers from establishment; Immunities Sec. 17-18; General Fund + voluntary Political Fund (Sec. 16).
12 CTUOs recognised by Ministry of Labour.
Problems: multiplicity · rivalry · outside leadership · small size · politicisation · low coverage.
CB term: Beatrice Webb coined 1891; Webbs developed 1897.
Definitions: Webbs · ILO · Flippo · Richardson.
ILO: C87 (1948) Freedom of Association · C98 (1949) Right to Organise & CB · C154 (1981). India has not ratified C87 and C98.
Walton-McKersie (1965): Distributive · Integrative · Attitudinal · Intra-organisational.
Other CB types: Conjunctive · Cooperative · Productivity (Flanders 1964) · Concession · Composite · Pattern · Adversarial vs Interest-based.
Stages: Preparation → Negotiation → Agreement → Ratification → Implementation → Renewal.
Fisher-Ury (1981, Getting to Yes) — 4 principles + BATNA.
India CB: 1918 Ahmedabad · 1956 Bata · 1959 TISCO-Tata Workers; NCL I 1969 (Gajendragadkar) · NCL II 2002 (Ravindra Varma).
IR Code 2020 Sec. 14: Negotiating Union ≥ 51 %; else Negotiating Council (≥ 20 % each).
Modern trends: declining density · gig workers organising · white-collar IT unions · global framework agreements · social-movement unionism · single-table · IBB · concession · ESG clauses.

35. International Human Resource Management

Topic 35 Quick Recall

IHRM textbook: Dowling, Festing & Engle.
Definitions: Dowling et al. · Morgan (1986) · Schuler-Dowling-De Cieri (1993) · Brewster.
IHRM vs Domestic HRM — 6 differences (Dowling): more functions, broader perspective, more personal involvement, more risk, external influences, wider mix of employees.
Morgan’s 3D model: HR activities × Country categories × Employee categories.
Employee categories: PCN (parent), HCN (host), TCN (third); Inpatriate (HCN → parent); Expatriate (PCN/TCN → abroad).
Perlmutter EPRG (1969 EPG; R added 1979 Heenan): Ethnocentric (PCNs) · Polycentric (HCNs) · Regiocentric · Geocentric (best person).
Adler-Ghadar four phases — Domestic · International · Multinational · Global/Transnational.
Bartlett-Ghoshal (1989) — 4 strategies on 2 × 2 (Integration × Responsiveness): Multinational · Global · International · Transnational (H+H).
Cross-cultural frameworks: Hofstede 6 dimensions · Trompenaars 7 · GLOBE (House 2004) · Hall context · Kluckhohn-Strodtbeck · Schwartz.
Expat selection — Mendenhall-Oddou (1985): Self · Others · Perceptual · Cultural toughness.
Adjustment — Black-Mendenhall-Oddou (1991): Work · Interaction · General.
U-curve — Lysgaard (1955): Honeymoon → Culture Shock → Adjustment → Mastery.
W-curve — Gullahorn & Gullahorn (1963) — adds repatriation.
Expat failure: spouse/family adjustment #1 (Tung); historic 20-40 % US firms.
Tung CCT 4 levels: Information · Cultural orientation · Cultural immersion · Interaction.
Repatriation — forgotten phase; reverse culture shock (Adler 1981).
Compensation: Balance Sheet (build-up) vs Going Rate (market); Lump-sum · Cafeteria · Regional · Global.
Components: Base · Foreign-service premium · COLA · Housing · Education · Home leave · Tax equalisation · Relocation · Dual-career.
ILO (1919, Geneva, Nobel 1969) — tripartite; 8 Fundamental Conventions in 4 categories.
OECD Guidelines for MNEs (1976); UN Global Compact (2000); ILO Decent Work (1999, Somavía).
Modern trends: Virtual / Short-term / Commuter assignments · Inpatriation · SIEs · Gig global · Global EOR (Deel) · AI location-pay · Modern Slavery Act 2015 · German Supply Chain Act 2023.

36. Green HRM

Topic 36 Quick Recall

GHRM origin: Wehrmeyer (1996) Greening People; Renwick-Redman-Maguire (2013) IJMR review.
Definitions: Wehrmeyer · Renwick · Mandip · Mathapati · Opatha-Arulrajah (2014).
Drivers: climate · regulatory · investor (ESG) · customer · employee · reputation · cost.
Triple Bottom Line — Elkington (1994/1997): People · Planet · Profit.
Sustainable Development — Brundtland 1987 definition; Our Common Future / WCED.
GHRM Functions: Green Job Analysis · Recruitment · Training · Performance · Compensation · ER/Engagement · Exit.
AMO theory (Appelbaum 2000) mapped to GHRM by Renwick et al. (2013): Ability (recruit/train) · Motivation (PM/comp) · Opportunity (involvement/culture).
ISO 14001 (1996/2015) — EMS; PDCA cycle.
Green office: paperless · 3Rs · LED · solar · green commuting · LEED.
LEED — USGBC (1998) — Certified/Silver/Gold/Platinum. India: GRIHA (TERI-MNRE 2007) · IGBC (CII).
Reporting frameworks: GRI (1997) · CDP (2000) · SASB (2011) · TCFD (2017, Mark Carney) · ISSB (2021) · India BRSR (SEBI 2021 — top 1000 listed).
Global milestones: Stockholm 1972 · Brundtland 1987 · Rio 1992 · Kyoto 1997 · MDGs 2000 · UN Global Compact 2000 · Paris 2015 (1.5-2 °C) · SDGs (17, 2015-2030) · EU Green Deal 2050 · India Net-Zero 2070 (Panchamrit).
Sustainable HRM (Ehnert 2009) — extends GHRM to all three TBL pillars.
India initiatives: Environment Protection Act 1986 · NAPCC 2008 · Companies Act 2013 Sec 135 (2 % CSR) · GRIHA/IGBC · National Solar Mission 2010 · BRSR 2021 · LiFE Mission 2022 · Mission Net Zero 2070 · Green Hydrogen Mission 2023 · SEBI ESG Ratings 2023.
Modern trends: ESG-linked exec comp · climate clawback · net-zero HR roadmaps · carbon literacy · just transition · green skills frameworks · internal carbon pricing · ecological well-being · climate-aligned employer brand.

Chapter 4 — Accounting And Financial Management

37. Accounting Principles and Financial Statements

Topic 37 Quick Recall

Pacioli (1494) — father of accounting; double-entry; Summa de Arithmetica.
AICPA 1941 definition: art of recording, classifying, summarising, interpreting financial transactions.
Branches: Financial · Cost · Management · Tax · Forensic · HR · Social · Environmental.
Concepts: Business entity · Money measurement · Going concern · Cost · Dual aspect (A = L + C) · Accounting period · Accrual/Matching · Realisation · Periodicity · Objective evidence.
Conventions: Consistency · Conservatism/Prudence (“no profit, all losses”) · Materiality · Full disclosure · Substance over form.
Accounting equation: Assets = Liabilities + Capital (+ Revenue − Expenses − Drawings).
Golden rules — Personal (Receiver/Giver) · Real (Comes in/Goes out) · Nominal (Expenses-Losses/Incomes-Gains).
Modern rules by 5 categories: Asset, Liability, Equity, Revenue, Expense.
Accounting cycle: Transaction → Journal → Ledger → TB → Adjusting → FS → Closing.
3 statements: P&L · Balance Sheet · Cash Flow (+ Statement of Changes in Equity + Notes).
Income statement flow: Revenue → COGS → GP → Opex → EBIT → Interest → PBT → Tax → PAT.
Indian BS: Schedule III — Equity & Liabilities + Assets, with non-current and current split.
Cash Flow (AS-3 / Ind AS-7): Operating · Investing · Financing; Direct vs Indirect method.
Inventory: FIFO · Weighted Avg · Specific ID · NRV; LIFO not allowed under IFRS/Ind AS-2.
Depreciation (AS-10 / Ind AS-16): SLM · WDV · Units of Production · SYD · Annuity. Companies Act 2013 Schedule II — useful-life-based.
Ind AS (IFRS-converged) — phased from FY 2016-17 for listed + ≥ ₹250 cr.
NFRA — Sec 132, replaced NACAS (2018).
Key Ind AS: 1 (Presentation) · 2 (Inventory) · 7 (Cash Flow) · 16 (PPE) · 115 (Revenue, 5-step) · 116 (Leases, on-BS).
Companies Act 2013: Sec 128 (books) · 129 (true & fair view) · 132 (NFRA) · 134 (board report) · 135 (CSR 2 %) · 138 (internal audit) · 143 (auditor).
Audit reports: Unqualified · Qualified · Adverse · Disclaimer; KAM (SA-701).
Modern trends: IFRS convergence · Integrated Reporting (IIRC 2013) · ESG/sustainability · AI in audit · Blockchain · Cloud accounting · XBRL · Forensic accounting.

38. Financial Statement Analysis

Topic 38 Quick Recall

Pioneers: Alexander Wall (1919) — ratio analysis; John Myer (1952) — FSA textbook.
Tools: Comparative (horizontal) · Common-size (vertical) · Trend · Ratio · Fund flow · Cash flow · Du Pont · EVA/MVA.
5 ratio classes: Liquidity · Leverage · Activity · Profitability · Market.
Liquidity: Current (2:1) · Quick (1:1) · Cash (0.5:1) · Defensive Interval · NWC.
Leverage: D/E · D/TA · Proprietary · Capital Gearing · Interest Coverage = EBIT/Int (≥4) · DSCR (≥1.5).
Activity: Inv T/O = COGS/Avg Inv · Debtors T/O · Creditors T/O · Asset T/O · CCC = Inv + Debtors − Creditors days.
Profitability: GP · OP · NP · Operating Ratio · ROA · ROE · ROCE = EBIT/CE · ROI.
Market: EPS · P/E · DPS · Dividend Yield · Payout · Earnings Yield · P/B · Tobin’s Q · PEG.
Du Pont (DuPont, F.D. Brown 1919): 3-step ROE = NPM × TAT × Equity Multiplier; 5-step adds Tax Burden + Interest Burden.
Fund Flow (Cole 1908, Finney) = changes in working capital (legacy; not required under Ind AS).
Cash Flow (AS-3 / Ind AS-7): Operating · Investing · Financing; Direct vs Indirect method.
EVA — Stern Stewart 1991 = NOPAT − (WACC × Capital Employed); MVA = Market Value − Book Value.
Altman Z-Score (1968): Z = 1.2X₁ + 1.4X₂ + 3.3X₃ + 0.6X₄ + 1.0X₅; Safe > 2.99, Distress < 1.81.
Beneish M-Score (1999) — earnings manipulation; Piotroski F-Score (2000) — financial strength (max 9).
Limitations: historical · inflation · accounting policies · window dressing · qualitative factors missed.
Indian frauds: Satyam 2009 (₹7,800 cr; Ramalinga Raju) · Kingfisher · PNB-Nirav Modi · IL&FS · DHFL · Yes Bank · PMC Bank.
Modern trends: real-time analytics · AI fraud detection · NLP on MD&A · ESG ratios · forensic ratios · industry platforms (Capital IQ, ProwessIQ) · sentiment analysis · big-data ratio benchmarking.

39. Cost Sheet, Marginal Costing and CVP Analysis

Topic 39 Quick Recall

CIMA (UK 1919) · ICAI-CMA / ICWAI (India 1944) · CASB issues Cost Accounting Standards.
Elements of cost: Direct Material · Direct Labour · Direct Expenses · Indirect (Overheads).
Cost aggregates: Prime Cost = DM + DL + DE → Factory Cost → Cost of Production → COGS → Cost of Sales → Sales.
Conversion Cost = DL + Factory OH.
Behaviour classes: Fixed · Variable · Semi-variable · Step.
Decision costs: Relevant · Sunk · Opportunity · Differential · Marginal · Out-of-pocket · Imputed · Joint · Replacement · Shutdown.
Methods: Job · Batch · Contract · Process · Operation · Service/Operating · Unit · Composite.
Techniques: Standard · Marginal · Absorption · ABC · Target · Life-cycle · Throughput · Kaizen.
Cost Sheet flow: DM → +DL → +DE → Prime Cost → +Factory OH → Factory Cost → +Admin OH → CoP → +Opening FG − Closing FG → COGS → +S&D OH → Cost of Sales → +Profit → Sales.
Marginal Costing (Harris 1936, Lawrence, CIMA): Sales − VC = Contribution = FC + Profit.
P/V Ratio = Contribution / Sales × 100.
BEP units = FC / Contribution p.u.; BEP ₹ = FC / P/V Ratio.
Target Profit units = (FC + Desired Profit) / Contribution p.u.
MOS = Actual Sales − BEP Sales = Profit / P/V Ratio.
At BEP, Contribution = Fixed Cost.
Absorption vs Marginal: external (Ind AS 2) vs internal decisions.
Composite BEP = Total FC / Weighted P/V Ratio.
Limiting factor: rank by Contribution per unit of limiting factor.
ABC (Cooper-Kaplan, HBR 1988): cost pools + drivers; TDABC (Kaplan-Anderson 2004).
Target Costing (Toyota 1960s): Target Cost = Price − Required Margin.
Life-Cycle Costing: ~80 % of cost locked at design phase.
Throughput Accounting (Goldratt 1984): only DM is variable; TOC.
Modern trends: ABC/TDABC · Lean accounting (Maskell) · Strategic cost mgmt (Shank-Govindarajan 1993) · Quality cost reporting (PAF) · Green cost accounting · CAS · AI cost prediction · cost-of-AI compute.

40. Standard Costing and Variance Analysis

Topic 40 Quick Recall

Standard Costing origin: Scientific management (Taylor, Gilbreth); G. Charter Harrison (1911) systematised in US; Sir John Mann in UK.
Definitions: CIMA · ICMA · Horngren · Brown-Howard · Wheldon.
Standard vs Estimate — should-be vs likely-to-be.
8 objectives — cost control, performance evaluation, cost reduction, pricing, inventory valuation, MbE, budgeting, productivity.
4 standards: Ideal (perfect, demotivating) · Basic (long-term, trends) · Normal (average) · Attainable / Current (tight but realistic — most used).
Setting standards — DM (qty × price), DL (time × rate), VOH, FOH (budgeted FOH / budgeted output), Sales.
Variance = Standard − Actual; Favourable / Adverse.
Material variances: MCV = MPV + MUV; MUV = MMV + MYV.
MPV = (SP − AP) × AQ; MUV = (SQ − AQ) × SP.
Labour variances: LCV = LRV + LEV; LEV = LMV + LYV + LITV.
LRV = (SR − AR) × AH; LEV = (SH − AH) × SR; LITV = Idle Hours × SR (always Adverse).
Variable OH: Expenditure + Efficiency.
Fixed OH: Cost = Expenditure + Volume; Volume = Capacity + Efficiency + Calendar.
Sales variances (value): Price = (AP − SP) × AQ; Volume = (AQ − SQ) × SP; further split Mix + Quantity.
Sales variances (contribution/margin method) under marginal costing.
Responsibility: MPV → Purchase · MUV → Production · LRV → HR · LEV → Production Supervisor · FOH Volume → Top Mgmt · Sales → Marketing.
Disposition: Write off · Prorate · Carry forward.
MbE (Drucker): focus on significant variances (±5-10 %).
Advantages: cost control · performance evaluation · inventory valuation · budgeting · motivation.
Limitations: setting costly · obsolete fast · poor in service · dysfunctional behaviour · misaligned with lean.
Modern alternatives: Kaizen Costing · Lean Accounting (Maskell) · Throughput Accounting (Goldratt) · ABC · Target Costing.

41. Financial Management — Concept and Functions

Topic 41 Quick Recall

Definitions: Solomon · Van Horne (acquisition + financing + management of assets) · Weston-Brigham · Howard-Upton · Pandey.
3 phases: Traditional (procurement) → Transitional (working capital) → Modern / Analytical (1950s+).
Modern FM origins: Markowitz (1952) MPT · MM (1958) Capital Structure · Sharpe-Lintner CAPM (1964) · Black-Scholes (1973).
Goal: Wealth Maximisation > Profit Maximisation (Solomon 1969).
Profit vs Wealth: short vs long; ignores vs considers risk + time value + cash flows.
Stakeholder theory (Freeman 1984); Triple Bottom Line (Elkington 1997); ESG; B-Corp.
3 (or 4) decisions: Investment · Financing · Dividend (+ Working Capital).
Investment: Capital Budgeting + Working Capital + Asset Replacement + M&A.
Financing: Capital Structure + Cost of Capital + Leverage + Source choice.
Dividend: Payout vs retention + Form + Stability + Theories.
Foundational concepts: Time Value of Money · Risk-Return · Valuation Principle (PV of expected cash flows).
TVM formulas: FV = PV(1+r)ⁿ · PV = FV/(1+r)ⁿ · FVA · PVA · Perpetuity A/r · Growing A/(r−g) · EAR.
Agency theory: Berle-Means (1932) · Jensen-Meckling (1976) · Monitoring + Bonding + Residual loss.
Mitigating agency: ESOPs · Board oversight · Free Cash Flow theory (Jensen 1986) — debt disciplines · Takeovers · Disclosure.
Sources of finance: Long/Medium/Short × Owned/Borrowed; Modern: VC · PE · Angel · Crowdfunding · IPO · QIP · FDI/FPI · ECB · GDR/ADR · Masala/Green Bonds · AIF/REIT/InvIT · ICO/STO.
Indian regulators: RBI (1935) · SEBI (1988/1992 statutory) · IRDAI (1999) · PFRDA (2003/2013) · IBBI (IBC 2016) · NFRA (2018) · CCI · NHB · EXIM · SIDBI.
FSDC (2010) — apex coordination; chaired by FM; sub-cmt by RBI Governor.
CFO functions: planning · capital structure · investments · dividends · working capital · risk mgmt · reporting · tax · IR · M&A · treasury · liaison.
Modern trends: ESG · FinTech · AI/ML in finance · Blockchain/DeFi · CBDCs · TCFD/ISSB · Behavioural finance · Stakeholder capitalism (BRT 2019) · Tokenisation.

42. Capital Structure and Cost of Capital

Topic 42 Quick Recall

Definitions: Gerstenberg · Hampton · Pandey · Weston-Brigham.
Capital vs Financial Structure — long-term only vs entire liabilities.
Optimal CS — maximises value, minimises WACC; key features: flexibility, solvency, control, profitability.
Factors: business risk · tax · flexibility · asset structure · profitability · size · industry · market · growth · control.
Four classical theories:
- NI Approach (Durand 1952) — Kd, Ke constant → 100 % debt optimal.
- NOI Approach (Durand 1952) — WACC constant → no optimal CS.
- Traditional (Solomon, Schwartz) — U-shaped WACC → optimum exists.
- MM (1958, 1963) — V_L = V_U (no tax); V_L = V_U + Tc × D (with tax); arbitrage proof; homemade leverage.
MM Prop II: Ke = Ko + (Ko − Kd) × (D/E).
Trade-Off Theory: V_L = V_U + PV(Tax Shield) − PV(Distress Costs).
Pecking Order — Myers-Majluf (1984): Internal → Debt → Equity.
Market Timing — Baker-Wurgler (2002): cumulative effect of past issuance timing.
Signalling — Ross (1977): debt signals confidence; equity signals overvaluation.
Cost of Capital: hurdle rate; minimum required return.
Components: Kd = I(1−t)/NP · Kp = D/NP · Ke (3 models) · Kr ≈ Ke × (1−t)(1−b).
Cost of Equity: Dividend Yield (D/P) · Gordon (D₁/P₀) + g · CAPM Rf + β(Rm − Rf) · Earnings Yield · Bond Yield + Risk Premium.
WACC = wₑKₑ + wₚKₚ + wd × Kd(1−t).
Weights: Book vs Market vs Target; Market-Target preferred.
MCC — marginal cost of one additional rupee.
India: Companies Act 2013 Sec 180 (borrowing > paid-up + reserves needs SR); SEBI debt-listing reforms; Bharat Bond ETF 2019.
Modern trends: ESG-linked debt · green/social bonds · mezzanine · convertibles · perpetuals · SPACs · crypto debt · tokenisation · AT1/CoCos · climate transition bonds.

43. Budgeting and Budgetary Control

Topic 43 Quick Recall

Budget: quantified plan + commitment + targets for future period.
Definitions: CIMA · Terry · Batty · Brown-Howard · ICMA.
Budget vs Forecast vs Standard — commitment vs prediction vs per-unit benchmark.
10 objectives: planning · coordination · communication · motivation · control · evaluation · allocation · cash · profitability · decisions.
7 steps: objectives → key factor → functional → master → approval → implementation → review.
Key budget factor: limiting resource — usually sales.
Budget committee + budget manual + budget officer + budget period + budget centre.
By time: long · short · current · rolling.
By function: Sales · Production · Materials · Labour · Overhead · Cash · CapEx · R&D · Master.
By flexibility: Fixed / Static vs Flexible / Variable.
By position: Surplus · Balanced · Deficit.
ZBB — Peter Pyhrr, Texas Instruments 1969; Carter US Federal 1977: zero start; 4-step process; decision packages.
Performance Budgeting — Hoover Commission 1949; India Estimates Committee 1968.
PPBS — McNamara, US DoD 1965 (RAND).
Outcome Budget — Chidambaram, India 2005-06; Gender Budget — 2005-06.
ABB · Kaizen Budgeting · Rolling / Continuous Budgeting.
Beyond Budgeting — Hope & Fraser (2003); Handelsbanken case.
Driver-based / FP&A 2.0 — Anaplan, Workday Adaptive.
Traditional/Incremental vs ZBB comparison.
Budgetary Control cycle: budget → record actuals → variance → investigate → correct → adjust.
Behavioural issues: budget slack · padding · year-end spending · sandbagging · cookie-jar reserves · goal incongruence.
India Budget: Article 112 (AFS) · 110 (Money Bill) · 113-117 (DfG, Appropriation, Finance Bill) · 1 Feb since 2017 · Railway merged 2017 · Plan/Non-Plan abolished 2017-18 · FRBM Act 2003 (N.K. Singh 2017) · Outcome + Gender 2005-06 · Consolidated Fund + Public Account + Contingency Fund.
Modern trends: rolling forecasts · driver-based · scenario · AI/ML · Anaplan/Pigment · IBP · xP&A · ESG-budgeting · participatory · continuous closure.

44. Leverages and EBIT-EPS Analysis

Topic 44 Quick Recall

Leverage = use of fixed-cost resources to magnify changes; cuts both ways.
Definitions: Van Horne · Khan-Jain · Pandey · Solomon · Brigham.
Three leverages: Operating · Financial · Combined.
Operating Leverage — Sales → EBIT; arises from fixed operating costs.
DOL = % Δ EBIT / % Δ Sales = Contribution / EBIT.
At Operating BEP, DOL = ∞.
High DOL → high BEP, high business risk.
Financial Leverage — EBIT → EPS; arises from fixed financial costs (interest + pref div).
DFL = % Δ EPS / % Δ EBIT = EBIT / EBT (with pref div grossed up by 1−t).
All-equity firm DFL = 1.
At Financial BEP (EPS = 0), DFL = ∞.
Trading on equity — favourable when ROI > Kd; unfavourable when ROI < Kd.
Combined Leverage — Sales → EPS.
DCL = DOL × DFL = % Δ EPS / % Δ Sales = Contribution / EBT.
Risk decomposition: Business risk (OL) + Financial risk (FL) = Total risk.
Strategic mix: high DOL × high DFL = dangerous; conservative firms keep one low.
EBIT-EPS Analysis — compares EPS across financing plans.
Indifference Point: EPS equal under two plans; above → debt preferable; below → equity preferable.
Financial Break-Even EBIT = Interest + Pref Div / (1−t); EPS = 0.
Modern themes: SaaS = ultra-high OL; asset-light reduces OL; PE-LBOs amplify DFL; banks have structurally very high DFL; ESG-linked debt; covenant-lite loans.
Limitations: linear cost assumption; not EPS-maximisation ≠ wealth-maximisation; ignores time value and qualitative factors.

Chapter 5 — Investment Financing And Corporate Finance

45. Value and Returns

Topic 45 Quick Recall

Valuation Principle: Value = PV of expected future cash flows at risk-adjusted rate.
TVM: FV/PV/Annuity/Perpetuity/Growing Perpetuity/EAR/Continuous compounding.
Rules of thumb: 72/r (doubling), 69/r (more accurate).
Types of value: Face · Book · Market · Intrinsic (PV) · Liquidation · Replacement · Going-Concern · Fair Value (Ind AS 113).
Bond pricing: P = Σ C/(1+r)ᵗ + FV/(1+r)ⁿ.
Yield measures: Nominal · Current · YTM (IRR) · YTC · Realised.
Malkiel bond theorems (1962): inverse · longer maturity = larger change · diminishing rate · lower coupons = greater sensitivity · convexity.
Duration: Macaulay = weighted time; Modified = Macaulay/(1+YTM); Zero-coupon duration = maturity; PVBP/DV01.
Bond at: par (coupon = YTM); premium (coupon > YTM); discount (coupon < YTM).
Equity DDM: John Burr Williams (1938); Gordon (1959, 1962): P = D₁ / (Ke − g).
Sustainable growth: g = b × ROE.
Other equity methods: Earnings cap · PE · Book Value · FCFE (at Ke) · FCFF (at WACC) · Residual Income · EVA · Tobin’s Q · Relative multiples.
HPR = (D + P₁ − P₀) / P₀.
Returns: Arithmetic mean ≥ Geometric mean (CAGR); IRR; Time-weighted; Real (Fisher); EAR; Continuously compounded.
Fisher Effect: (1 + nominal) = (1 + real)(1 + inflation).
Risk-adjusted measures: Sharpe (SD) · Treynor (β) · Jensen Alpha · Information ratio · Sortino · M².
Investment trilemma: at most 2 of high return + low risk + high liquidity.
EMH — Fama (1970, Nobel 2013): Weak (past) · Semi-Strong (public) · Strong (private).
Behavioural finance — Kahneman (Nobel 2002), Thaler (Nobel 2017): loss aversion · overconfidence · anchoring · herding · representativeness · availability · mental accounting · disposition effect · confirmation · sunk cost.
Modern trends: ESG valuation · real options · Monte Carlo · ML · crypto valuation · platform-firm valuation · sustainability premium · DLOM/DLOC · TSR · climate scenarios.

46. Capital Budgeting and Investment Evaluation

Topic 46 Quick Recall

Capital Budgeting: long-term investment decision. Joel Dean (1951) is the foundational text.
8 importance points: long-term commitment, large outlay, irreversibility, risk, profitability, strategy, competitive position, complexity.
Types of projects: Replacement · Expansion · Modernisation · Diversification · R&D · Mandatory · Welfare · Strategic.
6-step process: Identify → Screen → Evaluate → Rank/Select → Implement → Post-audit.
Cash-flow rules: incremental · after-tax · ignore sunk · include opportunity · WC changes · side effects · consistency with inflation.
3 phases: Initial (CF₀) · Operating (CFt = EBIT(1−t) + Dep) · Terminal (Salvage + WC).
Two families:
- Non-DCF: Payback · ARR.
- DCF: NPV · IRR · PI · MIRR · Discounted Payback.
Decision rules:
- NPV > 0 · IRR > Cost of Capital · PI > 1 · PB < cut-off · ARR > required.
NPV vs IRR conflict: scale · timing · life · multiple IRRs → prefer NPV.
Crossover (Fisher) Rate: NPVs of two projects equal.
MIRR: reinvest CFs at cost of capital → corrects IRR’s flaw.
Capital Rationing: rank by PI (independent divisible); IP for indivisible; hard vs soft.
Risk analysis: RADR · CE method · Sensitivity · Scenario · Monte Carlo · Decision Trees · Real Options.
CE method discounts at risk-free rate; RADR discounts at adjusted rate.
Real Options — Stewart Myers (1977): defer · expand · abandon · contract · switch · compound · growth · timing.
APV — Myers (1974): NPV (all-equity) + PV (financing side effects).
Inflation: use nominal-nominal OR real-real consistently.
Different lives: use EAC = NPV / PVIFA; lower EAC preferred.
Modern trends: real options · Monte Carlo · big-data CFs · ESG-NPV · carbon shadow · stage-gate R&D · platform CapEx · behavioural correction · climate-resilient capex.

47. Dividend Theories and Determination

Topic 47 Quick Recall

Dividend = third pillar of FM alongside investment and financing.
Forms: Cash · Stock/Bonus · Stock split · Property · Scrip · Liquidating · Buy-back · Special.
Key terms: DPS · EPS · Payout · Retention (b) · Yield · Cover · g = b × ROE.
5 dates: Declaration · Record · Ex-Dividend · Book-closure · Payment.
Two schools: Relevance (Walter, Gordon, Bird-in-Hand, Signalling, Clientele, Agency) vs Irrelevance (MM 1961).
Walter (1963) formula: P = [D + (r/Ke)(E − D)] / Ke.
- r > Ke → 0 payout · r = Ke → indifferent · r < Ke → 100 % payout.
Gordon (1962) Bird-in-Hand: P₀ = D₁ / (Ke − g).
MM (1961) Irrelevance — arbitrage / homemade dividends in perfect markets.
Lintner (1956) — partial-adjustment model; managers focus on changes; dividends are sticky.
Other theories: Signalling (Bhattacharya 1979; Miller-Rock 1985; John-Williams 1985) · Clientele · Tax Differential (Litzenberger-Ramaswamy 1979) · Residual · Agency (Easterbrook 1984; Jensen 1986) · Catering (Baker-Wurgler 2004).
Determinants (14): earnings · stability · liquidity · investment opps · cost of capital · access to markets · life cycle · legal · loan covenants · tax · control · expectations · signalling · industry · inflation.
Policies: Stable · Constant payout · Stable + extra · Residual · Hybrid.
Buy-back (Sec 68 Companies Act 2013): ≤ 25 % of paid-up + reserves; D/E ≤ 2:1; 1-year cooling.
Indian tax: Classical → DDT (1997) → DDT abolished (Finance Act 2020); buy-back tax reform 2024.
Companies Act 2013: Sec 123 (declaration) · Sec 124 (unpaid → IEPF after 7 yrs) · Sec 125 (IEPF) · Sec 127 (penalty) · interim Sec 123(3).
Modern trends: rising buy-backs · sticky dividends · ESG-linked · dividend ETFs · classical tax convergence · REIT/InvIT distributions · 2024 buy-back tax reform.

48. Mergers, Acquisitions and Corporate Restructuring

Topic 48 Quick Recall

M&A / Restructuring = significant change in ownership, business model, capital structure.
Terminology: Merger · Acquisition · Amalgamation (Indian) · Consolidation · Demerger · Spin-off · Slump sale.
Section 2(1B) Income Tax Act — Indian “amalgamation” definition.
Types: Horizontal (Voda-Idea) · Vertical Forward/Backward · Conglomerate · Concentric · Reverse Merger.
Motives: Synergy (Op/Financial/Managerial) · Diversification · Strategic · Speed · Tax · Market power · Hubris (Roll 1986) · acqui-hire.
Forms of payment: Cash · Stock-for-stock · Mix · Debt assumption · Earn-out · Asset purchase.
Swap ratio based on intrinsic-value ratio; balances dilution vs price.
Valuation: DCF · Multiples · NAV · Comparable transactions · SOTP · Real Options · LBO.
Value of combined firm = V_A + V_B + PV(Synergy) − Integration costs.
Hostile tactics: Tender offer · Proxy fight · Bear hug · Dawn raid · Creeping acquisition.
Defences: Poison Pill · Crown Jewel · White Knight · White Squire · Pac-Man · Greenmail · Golden Parachute · Staggered Board · Super-majority · Dual-class · Macaroni · Killer bees · Scorched Earth · Standstill.
M&A process — 8 steps; due diligence covers financial, legal, tax, HR, IT, IP, operational, environmental, commercial.
Accounting — Ind AS 103 / IFRS 3: Acquisition method (fair value + goodwill); Pooling for common control. Goodwill not amortised; annual impairment test.
LBO — debt-heavy; KKR; RJR Nabisco 1989; Tata-Tetley 2000.
Demerger types: Spin-off · Split-off · Split-up · Equity Carve-out · Tracking Stock · Divestiture.
Reverse merger — ICICI Ltd into ICICI Bank (2002); HDFC into HDFC Bank (2023, $40 bn).
Indian regulation: Companies Act 2013 Sec 230-240 (schemes) · NCLT approval · CCI (Competition Act 2002) · SEBI Takeover Code 2011 (25 % trigger, 26 % open offer) · SEBI LODR 2015 · Income Tax (Sec 2(1B), 72A) · FEMA · RBI · Stamp Act.
CCI 2024 reform — deal-value threshold ₹2,000 cr; green-channel.
IBC 2016: CIRP 330-day cap · CoC 66 % approval · RP · IBBI · NCLT.
Famous Indian cross-border: Tata-Tetley · Tata-Corus · Hindalco-Novelis · Tata-JLR · Bharti-Zain · Walmart-Flipkart · HDFC-HDFC Bank.
70-80 % of M&As fail to create acquirer value (KPMG, McKinsey).
Modern trends: PE/LBO record · SPACs · Big-Tech antitrust · ESG divestitures · carve-outs/spin-offs · IBC-driven distressed M&A · AI acqui-hires.

49. Portfolio Management, CAPM and APT

Topic 49 Quick Recall

MPT — Markowitz (1952, Nobel 1990): mean-variance optimisation; Efficient Frontier.
6-step PM process: IPS → AA → SS → Execute → Monitor → Evaluate.
Single asset: E(R), σ², σ, CV.
Portfolio risk (2-asset): σp² = w₁²σ₁² + w₂²σ₂² + 2w₁w₂ρ₁₂σ₁σ₂; ρ < 1 → diversification benefits.
CML — Capital Market Line: introduce Rf → Rf + (Rm − Rf)/σm × σp; all efficient portfolios; total risk.
Tobin’s Separation Theorem (1958, Nobel 1981): separate investment (M) from financing (Rf vs M).
Single Index — Sharpe (1963): Ri = αᵢ + βᵢ Rm + eᵢ; simplifies Markowitz.
Risk types: Systematic (market, non-diversifiable) + Unsystematic (firm-specific, diversifiable).
Empirical: 20-30 stocks eliminate most unsystematic risk (Evans-Archer 1968, Statman 1987).
Beta: Cov(Ri, Rm)/σm²; β=1 market; >1 aggressive; <1 defensive; <0 counter-cyclical.
CAPM — Sharpe (1964), Lintner (1965), Mossin (1966), Nobel 1990: Ri = Rf + β(Rm − Rf).
SML — Security Market Line: Y = E(R), X = β; above SML → undervalued; below → overvalued.
CML vs SML: CML uses σ (efficient portfolios); SML uses β (all assets).
Roll’s Critique (1977): true market portfolio unobservable → CAPM untestable.
Fama-French 3-factor (1992): Market + SMB (size) + HML (value).
Fama-French 5-factor (2015): + RMW (profitability) + CMA (investment).
Carhart 4-factor (1997): + UMD (momentum).
APT — Ross (1976): multi-factor, no-arbitrage; Chen-Roll-Ross (1986) common factors: inflation, IP, risk premia, yield curve.
Performance measures: Sharpe · Treynor · Jensen’s α · Information ratio · Sortino · M² · Fama decomposition.
PM strategies: Active · Passive · Buy-Hold · Constant Weight · TAA · SAA · Core-Satellite · Smart Beta · Risk Parity (Bridgewater) · 120/Age · Black-Litterman (1990).
Behavioural PM (Shefrin-Statman 2000): mental accounts; pyramid portfolios.
India: PMS ≥ ₹50 lakh (SEBI 2019) · MF Regs 1996 · AMFI · AIFs Cat I/II/III ≥ ₹1 cr · NPS/PFRDA · ULIPs/IRDAI · IA Regs 2013 · Smallcase.
Modern trends: Robo-advisors · Smart beta / factor ETFs · ESG · Direct indexing · Thematic · Crypto · AI portfolios · Risk parity · Black-Litterman · Tax-loss harvesting · PE/VC · Liquid alts.

50. Derivatives — Options, Forwards and Futures

Topic 50 Quick Recall

Derivative = contract whose value derives from underlying. SCRA 1956 Indian definition.
Milestones: CBOT 1848 · CBOE 1973 · Black-Scholes 1973 · India NSE F&O June 2000.
Four basic types: Forwards · Futures · Options · Swaps.
Forward vs Future: OTC/customised/no MTM/high counterparty risk vs Exchange/standardised/daily MTM/clearing house.
Forward pricing: F₀ = S₀ × e^(rT); cost-of-carry; arbitrage-enforced.
Margins: Initial · Maintenance · Variation · MTM · SPAN · Exposure · Special.
Option = right (not obligation). Call = right to buy; Put = right to sell.
Option terms: Strike · Premium · Expiry · ITM/ATM/OTM · Intrinsic + Time value.
Style: European (expiry only) · American (anytime) · Bermudan (dates). India = European since 2010.
Option payoffs: Long Call max loss = Premium, max profit = Unlimited; Short Call vice versa; Put symmetric.
Put-Call Parity (European): C − P = S − K × e^(−rT).
Black-Scholes-Merton (1973, Nobel 1997) — pricing European options; 5 inputs: S, K, T, σ, r (+ dividends). Expected return NOT an input.
Binomial — Cox-Ross-Rubinstein (1979); converges to BSM as steps → ∞.
Greeks: Δ Delta (price) · Γ Gamma (delta sensitivity) · Θ Theta (time decay) · ν Vega (volatility) · ρ Rho (rate); Vanna, Volga (2nd order).
Option strategies: Covered Call · Protective Put · Bull/Bear Spread · Straddle (vol bet) · Strangle · Butterfly · Iron Condor · Collar · Calendar · Diagonal · Risk Reversal.
Swaps: IRS · Currency · Equity · CDS (Blythe Masters JPMorgan 1994) · Commodity · Total Return.
Uses: Hedging · Speculation · Arbitrage · ALM · Price discovery.
India: L.C. Gupta & J.R. Varma Committees 1998; SCRA Amendment 1999; NSE Index Futures June 2000; Options 2001; Currency 2008; FMC merged into SEBI 2015; SEBI 2024 F&O retail tightening.
Indian exchanges: NSE · BSE · MCX · NCDEX · MSEI.
OTC vs Exchange-traded comparison.
Famous failures: Barings 1995 (Leeson) · LTCM 1998 · Enron · AIG 2008 · JPM London Whale 2012 · NSEL 2013 · SocGen Kerviel 2008.
Modern trends: Crypto derivatives · ESG/carbon derivatives · VIX · weather · ILS · algo dominance · CCP central clearing · SOFR (post-LIBOR) · AI pricing · tokenised DeFi · India F&O retail rules 2024.

51. Working Capital Management

Topic 51 Quick Recall

WC = funds for day-to-day ops.
Gross WC = CA; Net WC = CA − CL.
Permanent vs Temporary WC; Tandon Committee — Core, Cyclical, Seasonal, Special.
Operating Cycle: Cash → RM → WIP → FG → Debtors → Cash.
CCC = Inv Days + Debtor Days − Creditor Days; lower (or negative) better; Amazon example.
Determinants (14): nature, scale, cycle length, credit, inventory, seasonality, growth, business cycle, efficiency, margins, dividends, credit access, inflation, technology.
Sources: Spontaneous (trade credit) · Short-term Negotiated (CC, OD, CP, factoring) · Long-term (equity, debentures, RE) — for permanent WC.
Bank finance forms: CC, OD, WCDL, Bills discounting, LC, BG, Packing/Post-shipment Credit, Factoring.
Three approaches: Hedging (matching) · Conservative · Aggressive.
Indian committees: Dahejia 1968 · Tandon 1974 (3 methods; Method II most used) · Chore 1979 · Marathe 1982 · Vaz 1990 · Nayak 1991 (20 % of turnover for SSI) · Kannan 1997.
Cash Mgmt — Keynes (1936) 3 motives: Transaction · Precautionary · Speculative.
Cash models: Baumol (1952) — EOQ for cash; Miller-Orr (1966) — random walk.
Cash techniques: speed-up collections (UPI, BBPS, lock-box) · slow disbursements · float mgmt · concentration banking · zero-balance accounts.
Receivables: 5-pillar credit policy + 5 Cs (Character, Capacity, Capital, Collateral, Conditions).
Tools: Ageing schedule · DSO · CEI · receivables turnover · bad-debt ratio.
Receivable financing: bill discounting · factoring · forfaiting (non-recourse export) · TReDS (RBI 2017; RXIL/A.TReDS/M1xchange) · LC discounting.
Inventory motives: Transaction · Precautionary · Speculative.
Inventory costs: Ordering · Carrying · Stock-out.
EOQ — Harris (1913), Wilson (1934): Q* = √(2DO/C).
Inventory techniques: ABC (value) · VED (criticality) · FSN (velocity) · SDE (procurement) · HML · JIT/Kanban (Toyota) · MRP/MRP II · ERP · VMI.
ABC Pareto: A=10% items/70% value · B=20%/20% · C=70%/10%.
Liquidity vs Profitability trade-off — CFO optimises.
Modern trends: real-time treasury · AI cash forecasting · supply chain financing · dynamic discounting · blockchain LCs · embedded finance · WCaaS · ESG supplier finance · CBDC · negative CCC.

52. International Financial Management

Topic 52 Quick Recall

IFM = FM in multi-currency, multi-country setting (Shapiro; Eun-Resnick; Eiteman-Stonehill-Moffett).
6 differences from domestic FM: currencies, regulations, political risk, country risk, integrated markets, cultural diversity.
FX market: $7.5 tn daily (BIS 2022); London > NY > Singapore > HK > Tokyo > Zurich; 24-hour OTC.
Quotes: Direct (domestic/foreign) · Indirect (foreign/domestic) · Cross · Bid · Ask · Spread · Pip.
Spot (T+2) vs Forward; Forward premium = F > S; Forward discount = F < S.
5 parity conditions linked: PPP (Cassel 1918, Big Mac Index 1986) · CIRP / UIRP · Fisher Effect · IFE · Unbiased Forward.
PPP formulas: Absolute (S = P_d / P_f); Relative (S₁/S₀ = (1+i_d)/(1+i_f)).
CIRP: F/S = (1 + i_d)/(1 + i_f).
Exchange-rate systems: Free Float · Managed Float · Fixed Peg · Currency Board · Crawling Peg · Bands · Dollarisation · Currency Union (Euro).
IMS history: Gold Standard 1879-1914 · Bretton Woods 1944 ($35/oz; IMF + IBRD) · Nixon Shock 15 Aug 1971 · Floating 1973+ · Euro 1999.
BoP (IMF BPM6 2009): Current + Capital + Financial + E&O = 0; FDI/FPI under Financial.
Theories: Mint Parity · PPP · BoP theory · Asset Market · Monetary · Portfolio Balance · Dornbusch Overshooting (1976) · Mundell-Fleming.
Impossible Trinity (Mundell, Nobel 1999): Fixed FX + Free Capital + Independent Monetary Policy — pick 2.
3 exposures: Transaction · Translation (Ind AS 21) · Economic/Operating.
4 translation methods: Current · Temporal · Monetary/Non-Monetary · Current/Non-Current.
Hedging — Internal: invoicing · leading/lagging · netting · re-invoicing · matching · diversification.
Hedging — External: Forwards · Futures · Options · Swaps · Money-market hedge · FCY debt · ECB.
International capital markets: Eurobonds · Yankee/Samurai/Bulldog · ADR/GDR · Masala Bonds (2014, INR offshore) · Green/Social bonds · ECBs · Eurocurrency loans · GIFT IFSC.
India: FERA 1973 (restrictive, criminal) → FEMA 1999 (liberal, civil); INR managed float since 1993; forex reserves ~$650-700 bn.
NRE/NRO/FCNR(B)/RFC accounts; LRS — USD 250,000 / yr; ECB framework; IFSCA 2020.
Institutions: IMF (1944) · IBRD (1944) · BIS (1930) · WTO (1995, GATT 1947) · OECD · ADB · AIIB (2016, China-led) · NDB (2015, BRICS) · FSB.
SDR (1969) basket: USD · EUR · CNY · JPY · GBP; CNY added 2016.
Modern trends: de-dollarisation · CBDCs (digital rupee) · sanctions fragmentation · cross-border CBDC (Project mBridge) · SOFR · climate finance · GIFT City IFSC · geopolitical premia · reshoring · friend-shoring.

Chapter 6 — Strategic Management And Marketing Foundations

53. Strategic Management — Concept, Process and Types

Topic 53 Quick Recall

Strategy etymology: Greek strategos (general); modern usage from Chandler (1962) Strategy and Structure.
Definitions: Chandler · Andrews · Ansoff · Porter (“being different”) · Mintzberg (pattern) · Glueck.
Mintzberg’s 5 Ps: Plan · Ploy · Pattern · Position · Perspective.
Strategic intent hierarchy: Vision · Mission · Values · Goals · Objectives · Strategies · Tactics.
Strategic Intent — Hamel & Prahalad (1989): ambitious aspiration; stretch.
Three levels of strategy: Corporate (what businesses?) · Business / SBU (how to compete?) · Functional (how do functions support?).
Strategic management process: Environmental Scanning → Formulation → Implementation → Evaluation & Control.
Mintzberg’s Ten Schools (Strategy Safari 1998): Design · Planning · Positioning (prescriptive) · Entrepreneurial · Cognitive · Learning · Power · Cultural · Environmental · Configuration.
Deliberate vs Emergent: Realised = Deliberate + Emergent.
Corporate strategies (4): Growth · Stability · Retrenchment · Combination.
Growth: Intensive (Ansoff) · Integration · Diversification · M&A · JV · Alliances.
Retrenchment: Turnaround · Divestment · Liquidation.
Ansoff’s matrix (1957): Penetration · Market Development · Product Development · Diversification.
Diversification: Concentric (related) · Conglomerate (unrelated) · Horizontal · Vertical.
Porter’s Generic Strategies (1980): Cost Leadership · Differentiation · Focus; warning of “stuck in the middle”.
Other frameworks: Bowman’s Strategy Clock (1996) · Blue Ocean — Kim-Mauborgne (2005) · Hypercompetition — D’Aveni (1994) · Co-opetition — Brandenburger-Nalebuff (1996) · RBV — Wernerfelt 1984, Barney 1991 · Dynamic Capabilities — Teece-Pisano-Shuen 1997.
Miles-Snow (1978): Defender · Prospector · Analyser · Reactor.
Functional strategies: Marketing · HR · Operations · Finance · R&D · IT · Sustainability.
Strategic decisions: long-term · resource-heavy · cross-functional · irreversible · uncertain · top-mgmt.
Strategic vs Operational: effectiveness vs efficiency; long vs short.
Drucker’s 5 strategic questions: Mission · Customer · Value · Results · Plan.
Indian scholars: Sumantra Ghoshal · Ghemawat · Vijay Govindarajan (Reverse Innovation) · Anil K. Gupta.
Modern trends: digital transformation · AI strategy · platform · ecosystem orchestration · ESG · stakeholder capitalism · geopolitical · dynamic capabilities · real options · open strategy · resilience > optimisation.

54. Strategic Analysis — External and Internal

Topic 54 Quick Recall

Strategic Analysis = External + Internal + SWOT integration.
External layers: Macro (PESTEL) + Industry (5 Forces) + Competitor.
PESTEL — Aguilar (1967 PEST): Political · Economic · Social · Technological · Environmental · Legal. Variants: STEEPLE · STEEPLED · DESTEP.
Porter’s Five Forces (1979): Rivalry · New Entrants · Suppliers · Buyers · Substitutes.
Sixth Force — Brandenburger-Nalebuff (1996): Complementors / Co-opetition.
Industry Life Cycle: Introduction · Growth · Maturity · Decline.
Strategic Groups — Michael Hunt (1972); popularised by Porter.
Competitor Analysis: Future Goals · Current Strategy · Assumptions · Capabilities.
RBV — Wernerfelt (1984), Barney (1991) — internal sources of advantage.
Resources: Tangible · Intangible · Capabilities · Competence · Core competence · Distinctive.
VRIN / VRIO — Barney: Valuable · Rare · Inimitable · Non-substitutable / Organised.
Sources of inimitability: historical, causal ambiguity, social complexity, IP.
Value Chain — Porter (1985): 5 Primary (Inbound · Operations · Outbound · M&S · Service) + 4 Support (Firm Infra · HRM · Technology · Procurement).
Service-Profit Chain — Heskett (1997).
Core Competence — Hamel & Prahalad (HBR 1990): 3 tests — market access, customer benefit, hard to imitate. Honda, Sony, Canon, 3M.
CSFs — Rockart (1979, MIT Sloan).
Distinctive Capabilities — John Kay (1993): Architecture · Reputation · Innovation (+ Strategic Assets).
Benchmarking — Robert Camp / Xerox (1989): Internal · Competitive · Functional · Generic · Strategic · Performance · Process.
SWOT — Andrews / SRI Humphrey (1960s): Internal-Helpful (S), Internal-Harmful (W), External-Helpful (O), External-Harmful (T).
TOWS — Weihrich (1982): SO Maxi-Maxi, ST Maxi-Mini, WO Mini-Maxi, WT Mini-Mini.
Indian textbook tools: ETOP · SAP.
Scenario Planning — Pierre Wack / Shell (1970s); QUEST · Delphi · Cross-Impact · Wargames.
Country analysis: Porter’s Diamond (1990); CAGE Distance — Ghemawat.
Indian examples: Reliance · Tata · HUL · Maruti · ITC · Infosys/TCS.
Modern trends: big-data competitor intel · AI/ML · real-time PESTEL · geopolitical · ESG materiality · platform/ecosystem analysis · VUCA/BANI scenario planning · OSINT.

55. Strategy Formulation

Topic 55 Quick Recall

Strategy Formulation = translating analysis into choice; 2nd stage of strategic management.
Three tiers: Corporate (what businesses?) · Business/SBU (how to compete?) · Functional (how do functions support?).
Glueck’s 4 grand strategies: Stability · Growth · Retrenchment · Combination.
Ansoff (1957): Market Penetration · Market Development · Product Development · Diversification — risk rises.
Integration: Vertical Forward · Vertical Backward · Horizontal.
Diversification: Concentric (related) · Conglomerate (unrelated) · Horizontal · Vertical.
Cooperative: Strategic Alliance · JV · M&A · Licensing · Franchising · Outsourcing · Networks · Ecosystems.
Retrenchment: Turnaround · Divestment · Spin-off · Carve-out · Liquidation · IBC.
Porter Generic Strategies (1980): Cost Leadership · Differentiation · Cost Focus · Differentiation Focus. Stuck-in-the-middle warning.
Hybrid strategies — Toyota, Zara — modern view permits.
Bowman’s Strategy Clock (1996) — 8 positions on Price × Perceived Value.
Blue Ocean — Kim & Mauborgne (2005): ERRC framework (Eliminate, Reduce, Raise, Create); value innovation.
BCG Matrix — Bruce Henderson (1968): Star · Cash Cow · Question Mark · Dog (Growth × Market Share).
GE-McKinsey Matrix — 3 × 3 = 9 cells (Industry Attractiveness × Business Strength).
Other: Shell DPM · ADL Life Cycle · SPACE · BCG New Matrix · Hofer.
Strategy formulation models: SPACE · Grand Strategy Matrix (David) · QSPM (David).
Strategic Choice — Johnson-Scholes-Whittington SAF/SFA test: Suitability · Acceptability · Feasibility.
Real Options (Myers 1977) — strategic flexibility.
International strategies (Bartlett-Ghoshal 1989) — International · Multinational · Global · Transnational.
Entry modes (lowest to highest commitment): Export → Licensing → Franchising → Contract Mfg → JV → Alliance → WOS → Greenfield/Brownfield.
Disruptive Innovation — Christensen (1997) — The Innovator’s Dilemma.
Hypercompetition — D’Aveni (1994) — 7-S framework.
Modern trends: Platforms · Ecosystem orchestration · Business model innovation · Lean strategy · Agile/OKRs · AI-augmented · Stakeholder strategy · Open strategy · VUCA/BANI · Frugal innovation · Reverse Innovation (Govindarajan) · Web3/DAO strategy.

56. Strategy Implementation

Topic 56 Quick Recall

Strategy Implementation = action stage; Bossidy-Charan Execution (2002); Kaplan-Norton Execution Premium (2008).
Hrebiniak (2005): 60-90 % of strategies fail at implementation.
Reasons for failure: change-management, vague strategy, no model, info silos, conflicting rewards, top-mgmt lack, resources, politics, time.
Formulation vs Implementation — analytical vs operational; top vs throughout; opportunity vs efficiency cost.
8 implementation levers: Resources · Structure · Processes · Leadership · Culture · People · Communication · Control.
Chandler (1962) — “structure follows strategy”; reverse also observed.
Structures: Simple · Functional · Divisional / M-Form (Sloan at GM) · SBU · Matrix · Network/Virtual · Holding · Team-based · Modular.
M-Form vs U-Form (Williamson Nobel 2009).
Galbraith Star Model (1977, 1995): Strategy · Structure · Processes · Rewards · People.
McKinsey 7S (1980) — Peters, Waterman, Pascale, Athos: Hard (Strategy/Structure/Systems) + Soft (Shared Values centre + Skills/Style/Staff).
Leadership styles: Transactional (Bass) · Transformational (Burns 1978; Bass-Avolio) · Servant (Greenleaf 1970) · Authentic (George) · Adaptive (Heifetz) · Level 5 (Collins 2001).
Strategic leadership tasks (Hitt-Ireland-Hoskisson 6): Direction · Resources · Culture · Ethics · Controls · Human capital.
“Culture eats strategy for breakfast” (Drucker).
Change models for implementation: Lewin (3) · Kotter (8) · ADKAR (Hiatt 2003) · Bridges · McKinsey Influence.
Communication: cascading, townhalls, strategy maps, OKRs, storytelling, repetition.
Schreyögg-Steinmann 4 strategic controls: Premise · Implementation · Strategic Surveillance · Special Alert.
Newman: feedforward · concurrent · feedback.
Performance systems: BSC (Kaplan-Norton 1992) · Strategy Maps (2004) · Six Sigma · TQM · Hoshin Kanri · OKRs (Grove/Doerr) · EVA/MVA · KPIs.
Reward principles: pay-for-performance · equity-based (ESOPs) · team incentives · LTIPs · tournament theory.
Indian implementation cases: Reliance Jio · Maruti · Infosys GDM · HUL Project Shakti · Aravind Eye · ITC E-Choupal · Tata under Ratan Tata.
Modern trends: Agile execution · OKRs at scale · people analytics · real-time dashboards · AI-augmented tracking · pods/squads (Spotify) · network-of-teams (McChrystal) · continuous strategy · behavioural nudges · ESG-linked KPIs · digital execution platforms.

57. Marketing Concept, Orientation and Customer Value

Topic 57 Quick Recall

Kotler — father of modern marketing.
Definitions: Kotler · AMA · CIM · Drucker · Levitt (Marketing Myopia 1960).
10 core concepts: Needs · Wants · Demands · Products · Value · Satisfaction · Exchange · Markets · Relationships · Networks.
5 orientations (Kotler): Production · Product · Selling · Marketing · Societal.
Selling vs Marketing: inside-out (product) vs outside-in (customer).
Customer-Perceived Value (CPV): Benefits / Costs (or Benefits − Costs).
Benefits: Product · Service · Personnel · Image.
Costs: Monetary · Time · Energy · Psychic · Switching.
Satisfaction = Performance − Expectations.
Measurement: CSAT · NPS (Reichheld 2003) · CES · VOC · mystery shop.
CLV — Peppers-Rogers (1993): PV of future profits.
CRM evolution: Transactional → Relationship (Berry 1983) → CRM → CEM → Customer Centricity (Fader).
IDIC (Peppers-Rogers): Identify · Differentiate · Interact · Customise.
Kotler 5-step process: Understand · Design strategy (STP) · Programme (4 Ps) · Build relationships · Capture value.
Marketing environment: Internal · Microenvironment · Macroenvironment (DEPEST).
4 Ps — McCarthy (1960): Product · Price · Place · Promotion.
7 Ps — Booms & Bitner (1981): + People · Process · Physical Evidence (for services).
4 Cs — Lauterborn (1990): Consumer · Cost · Convenience · Communication.
Other variants: SAVE (Ettenson 2013) · 4 As — Sheth-Sisodia (emerging markets) · 8 Ps · Digital Mix.
Holistic Marketing — Kotler-Keller (2006) 4 pillars: Relationship · Integrated · Internal · Performance/Socially Responsible.
Modern concepts: Relationship (Berry 1983) · One-to-One (Peppers-Rogers 1993) · Permission (Godin 1999) · Experience (Pine-Gilmore 1998) · Co-creation (Prahalad-Ramaswamy 2004) · SDL (Vargo-Lusch 2004) · Marketing 3.0/4.0/5.0 (Kotler 2010/2017/2021) · Inbound (HubSpot) · Content (Pulizzi) · Customer-Centricity (Fader).
India: Pre/Post 1991 · Sheth · Saxena · Ramaswamy-Namakumari · Bharat marketing · frugal · Digital India (UPI, ONDC) · ASCI 1985.
Modern trends: customer-centricity · personalisation · omnichannel · influencer · content · marketing automation · voice/conversational · privacy-first (GDPR, DPDP 2023) · purpose-driven · Web3/Metaverse · community-led · generative AI.

58. Market Segmentation, Targeting and Positioning

Topic 58 Quick Recall

STP = Segmentation · Targeting · Positioning.
Origin — Wendell R. Smith (JM 1956) — coined market segmentation.
Definitions: Smith · Kotler · Stanton · Cravens.
8 benefits of segmentation.
5 bases: Geographic · Demographic · Psychographic · Behavioural · Hybrid.
Demographic variables: Age · Gender · Income (SEC A1-E) · Occupation · Education · Family Life Cycle (Wells-Gubar 1966) · Religion · Generation.
Psychographic: AIO (Plummer 1974) · VALS (Mitchell SRI 1978; VALS2 1989) · LOHAS · PRIZM · MOSAIC.
Behavioural: Occasion · Benefit (Yankelovich 1964) · Usage rate · User status · Loyalty · Buyer-readiness · Attitude.
B2B: Bonoma-Shapiro nested model (1984) — 5 levels.
Kotler’s effective segmentation criteria (5): Measurable · Substantial · Accessible · Differentiable · Actionable.
Levels (Kotler): Mass · Segment · Niche · Local/Micro · Individual / One-to-One.
STP process (6 steps): Identify bases → Profile segments → Evaluate → Select → Position → Mix.
Targeting (Kotler 5): Single-Segment Concentration · Selective · Product Specialisation · Market Specialisation · Full Market Coverage.
3 classic targeting strategies: Undifferentiated (Mass) · Differentiated (Multi-segment) · Concentrated (Niche); plus Micromarketing.
Segment evaluation: size/growth · 5 Forces · profitability · resource fit · competition · distribution · risk.
Positioning — Ries & Trout (1981) Battle for Your Mind.
Positioning bases: Attribute · Benefit · Use · User · Competitor · Category · Quality/Price · Cultural symbol · Hybrid.
Differentiation dimensions (Kotler 5): Product · Service · Channel · People · Image.
Perceptual maps; MDS — Kruskal (1964).
Brand positioning statement template (Kotler-Keller).
Repositioning: Tangible · Symbolic · Augmented · De-positioning.
Positioning errors (Kotler 4): Under · Over · Confused · Doubtful.
USP — Rosser Reeves (1961) Reality in Advertising.
Positioning models: Aaker · Keller’s CBBE Pyramid (Salience → Performance/Imagery → Judgements/Feelings → Resonance) · Kapferer · Y&R BAV.
Indian examples: Maruti · HUL · ITC Aashirvaad · Patanjali · Royal Enfield · OYO · Tata Nano · MakeMyTrip · boAt.
Modern trends: micro-segmentation with AI · hyper-personalisation · behavioural cohorts · lookalike models · JTBD (Christensen) · tribes (Godin) · values-based · real-time contextual · privacy-first · gen-AI personas · sentiment segmentation · omnichannel positioning.

59. Product and Pricing Decisions

Topic 59 Quick Recall

Product — anything offered to satisfy need (Kotler).
Five levels: Core · Generic · Expected · Augmented · Potential.
Classification: Convenience · Shopping · Speciality · Unsought (consumer); Industrial.
Mix dimensions: Width · Length · Depth · Consistency.
PLC — Levitt (HBR 1965): Intro · Growth · Maturity · Decline. Variants: fad, fashion, style.
NPD 8 stages (Booz-Allen 1982); Stage-Gate (Cooper 1988); Lean Startup (Ries 2011) — MVP; Design Thinking; Agile; Open Innovation (Chesbrough 2003); Co-creation (Prahalad-Ramaswamy).
Diffusion — Rogers (1962): 2.5 % Innovators · 13.5 % Early Adopters · 34 % Early Majority · 34 % Late Majority · 16 % Laggards.
Chasm — Moore (1991).
Branding (Topic 62 detail).
Packaging — 5th P (Vance Packard 1957).
Price = only revenue-producing mix element.
Kotler’s 3 Cs: Cost · Customer · Competitor.
Pricing objectives — Survival · Max current profit · Max share · Max skim · Quality leader.
11 pricing methods: Cost-plus · Target-return · Break-even · Perceived-value · Value · Going-rate · Auction · Group · Dynamic · EDLP · High-Low.
New-product: Skimming (Apple) vs Penetration (Jio 2016).
Mix pricing: Product-line · Optional · Captive · By-product · Two-part · Bundle.
Psychological: Charm (₹99) · Prestige · Anchoring · Reference · Decoy.
Adjustments: Discounts · Segmented · Promotional · Geographic · Dynamic.
Elasticity — |Ep| >1 elastic; <1 inelastic; =1 unit.
India: Legal Metrology 2009 · DPCO 1995 / NPPA · CCI predatory rules · GST 2017 · sachet pricing · frugal · dynamic (Uber, BMS) · subscription.
Modern: subscription · freemium · dynamic / AI · outcome-based · pay-what-you-want · carbon-conscious · PaaS.

60. Place and Promotion Decisions

Topic 60 Quick Recall

Place — distribution channels; Stern-El Ansary-Coughlan Marketing Channels.
Channel functions: Information · Promotion · Contact · Matching · Negotiation · Physical · Financing · Risk.
Channel levels: Zero (direct) · One · Two · Three.
Intermediaries: Merchant wholesalers · Brokers/Agents · Retailers · C&F · Distributors · Franchisees · E-commerce platforms.
Coverage: Intensive (FMCG) · Selective (autos) · Exclusive (luxury).
Conflict: Horizontal · Vertical · Multi-channel · Online-offline.
VMS (Kotler): Corporate · Contractual (franchise) · Administered.
Retail formats: Dept · Specialty · Super · Convenience · Discount (DMart) · Hyper · Category Killer · Cash & Carry · Off-price · E-tail · Quick Commerce (Blinkit, Zepto) · Direct selling.
India: Kirana 12 mn · HUL Shakti · ITC E-Choupal · Modern trade · D2C · ONDC (2022).
Promotion mix (5 + WoM): Advertising · Sales Promotion · Personal Selling · PR · Direct/Digital.
Communication models: Lasswell (1948) · Schramm · Shannon-Weaver · Berlo.
Hierarchy of effects: AIDA (Lewis 1898) · AIDAS (Strong) · DAGMAR (Colley 1961) · Lavidge-Steiner (1961) · Innovation-Adoption (Rogers 1962).
5 Ms of advertising (Kotler): Mission · Money · Message · Media · Measurement.
Budget methods: Affordable · % of sales · Competitive parity · Objective-and-task.
Media metrics: Reach · Frequency · GRP = R × F · CPM · CPC · CPA · ROAS.
Advertising pioneers: Ogilvy · Bernbach (VW Think Small) · Leo Burnett (Marlboro) · Reeves (USP).
Indian advertising legends: Padamsee (Lalitaji) · Pandey · Khan · Balki · Kakar.
Sales promotion: Coupons · Samples · Premiums · Loyalty · Contests · POP · Demos · Trade allowances.
Personal selling 7 steps: Prospecting · Pre-approach · Approach · Presentation · Handle objections · Close · Follow-up.
PR tools: Press releases · Sponsorships · Events · Crisis comms · Philanthropy.
Digital marketing: Email · SMS · WhatsApp · SEM · Display · Social · Influencer · Content · Programmatic · Mobile · Affiliate.
IMC — Don Schultz (1993): one voice across all touchpoints.
India regulation: DAVP · ASCI (1985) · CCPA · CPA 2019 · Cable TV Networks Act 1995 · IT Rules 2021.
Modern trends: Omnichannel · D2C · Quick Commerce · ONDC · Influencer · Programmatic AI · AR/VR · Voice · Generative AI · Privacy-first · Sustainability messaging · Performance marketing.

Chapter 7 — Marketing Management And Emerging Trends

61. Consumer and Industrial Buying Behaviour

Topic 61 Quick Recall

CB definitions: Kotler · Schiffman-Kanuk · Engel-Blackwell-Miniard · Loudon-Della Bitta.
Four factors (Kotler): Cultural · Social · Personal · Psychological.
Reference groups: Primary · Secondary · Membership · Aspirational · Dissociative · Opinion leaders. Two-step flow (Katz-Lazarsfeld 1955).
Motivation theories: Maslow (1943) · Freud · Herzberg · McGuire · VALS (Mitchell SRI 1978) · Means-End Chain (Gutman 1982).
Perception: Selective attention/distortion/retention · Subliminal · Weber’s Law (JND) · Gestalt principles.
Learning: Classical (Pavlov) · Operant (Skinner) · Cognitive · Social (Bandura) · Drive-Cue-Response-Reinforcement.
Attitudes — ABC: Affective · Behavioural · Cognitive.
Attitude models: Fishbein · TRA (Fishbein-Ajzen 1975) · TPB (Ajzen 1991) · ELM (Petty-Cacioppo 1986) · Cognitive Dissonance (Festinger 1957).
5-stage process: Problem recognition · Information search · Evaluation · Purchase · Post-purchase.
Evoked set — actively considered (Howard-Sheth).
Assael’s 4 types (1987): Complex · Dissonance-reducing · Variety-seeking · Habitual.
CB models: Howard-Sheth (1969) · Nicosia (1966) · EKB (1968) · Andreasen · Sheth Family · Bettman Info Processing.
Industrial vs consumer: fewer buyers, larger orders, buying centre, derived demand, close relationships.
Buying Centre (Webster-Wind 1972) roles: Initiator · Influencer · Decider · Approver · Buyer · User · Gatekeeper.
BUYGRID (Robinson-Faris-Wind 1967): New Task · Modified Rebuy · Straight Rebuy.
Webster-Wind 4 variable sets: Environmental · Organisational · Interpersonal · Individual.
Sheth (1973) industrial model.
8 stages of industrial buying.
Modern trends: hyper-personalisation · behavioural economics · journey mapping · omnichannel · social listening · influencer · ESG · quick-commerce · subscription · D2C · neuromarketing · Gen-Z.

62. Brand Management

Topic 62 Quick Recall

Brand definitions: AMA/Kotler · D. Aaker · Keller · Kapferer · Landor.
Brand vs Product: factory vs mind; tangible vs intangible; copyable vs hard.
Brand Equity — D. Aaker (1991) 5 components: Loyalty · Awareness · Perceived Quality · Associations · Proprietary assets.
CBBE Pyramid — Keller (2001): Salience → Performance/Imagery → Judgements/Feelings → Resonance.
Other equity models: Interbrand · BrandZ/Kantar · Brand Finance · Y&R BAV (D·R·E·K).
Aaker Brand Identity (1996) 4 perspectives: Product · Organisation · Person · Symbol.
Kapferer’s Prism (1992) 6 facets: Physique · Personality · Culture · Relationship · Reflection · Self-image.
Brand Personality — J. Aaker (1997) Big 5: Sincerity · Excitement · Competence · Sophistication · Ruggedness.
Brand Architecture (Aaker-Joachimsthaler 2000): Branded House · House of Brands · Endorsed · Sub-Brands · Hybrid.
Brand naming criteria (Kotler).
Kotler-Keller 4 brand strategies: Line Extension · Brand Extension · Multi-Brand · New Brand.
Co-branding: Ingredient · Joint · Same-company · Multi-sponsor.
Brand Mantra (Keller) — 3-5 word essence.
Brand Repositioning — Cadbury, Mountain Dew, Bournvita Indian examples.
Valuation: Cost · Market · Income · Royalty-Relief (Interbrand) · BrandZ · Brand Finance.
Brand crisis cases: Maggi 2015 · Cadbury 2003 · Tylenol 1982 · VW Dieselgate 2015.
Modern trends: purpose-driven · D2C · personal branding · influencer-led · activism/ESG · AI brand experiences · voice-first · brand-as-platform · cultural brands · Metaverse · gen-AI · sustainability.

63. Logistics and Supply Chain Management

Topic 63 Quick Recall

Logistics vs SCM: within-firm flow vs multi-firm integration. CSCMP definition. Christopher (Cranfield) · Chopra (Kellogg) · Simchi-Levi (MIT).
7 Rs: Product · Place · Time · Quantity · Quality · Customer · Cost.
Modes: Road (last-mile) · Rail (bulk) · Sea (lowest cost intl) · Air (high-value) · Pipeline (oil/gas) · Intermodal.
Chopra-Meindl 6 drivers: Facilities · Inventory · Transportation · Information · Sourcing · Pricing.
Bullwhip — Forrester (1961); Lee (1997) 4 causes: forecast updating · order batching · price fluctuations · rationing & gaming. Cures: info sharing, EDLP, VMI, CPFR.
Inventory: EOQ (Harris) · JIT (Toyota/Ohno) · Kanban · MRP (Orlicky 1975) · VMI · DRP · Cross-docking.
Push vs Pull vs Push-Pull hybrid.
Lean (Toyota, cost) vs Agile (Zara, response) vs Leagile.
Stevens (1989) SC integration: Baseline → Functional → Internal → External.
SCOR: Plan · Source · Make · Deliver · Return (+ Enable).
3PL/4PL/5PL.
India: ~14 % GDP logistics cost · National Logistics Policy 2022 · PM Gati Shakti 2021 · DFC East/West · GST 2017 · E-way bill ₹50,000 · Sagarmala · Bharatmala · UDAN.
3PL leaders India: DHL · Mahindra · DTDC · Blue Dart · Delhivery · Allcargo.
Modern trends: digital SC · AI forecasting · real-time visibility · green logistics · circular SC · reshoring/friend-shoring · quick commerce · drones · autonomous vehicles · predictive maintenance · resilience · 3D printing.

64. Service Marketing

Topic 64 Quick Recall

Services = intangible acts (Kotler). India: 53 %+ GDP. Scholars: Lovelock · Zeithaml · PZB · Heskett.
4 Is: Intangibility · Inseparability · Heterogeneity · Perishability (+ Lack of Ownership).
7 Ps (Booms-Bitner 1981): + People · Process · Physical Evidence.
Servicescape (Bitner 1992): ambient · spatial · signs/symbols.
SERVQUAL (PZB 1985, 1988) RATER: Reliability · Assurance · Tangibles · Empathy · Responsiveness.
Gaps Model (PZB 1985) — 5 gaps.
Service Profit Chain (Heskett-Sasser-Schlesinger 1997) — internal SQ → satisfied employees → SQ → CSAT → loyalty → profit.
Lovelock classification: nature of act · relationship · customisation · demand · delivery.
Zone of Tolerance — adequate ↔︎ desired.
Service Recovery Paradox.
India: IT/ITES, healthcare (Apollo, Aravind), banking, hospitality (Taj), telecom (Jio), aviation (IndiGo), e-commerce, edtech (BYJU’s).
Modern: digital · AI · SST · omnichannel · personalisation · servitization (Rolls-Royce) · subscription · SDL (Vargo-Lusch 2004) · CX · voice · AR/VR.

65. Customer Relationship Marketing

Topic 65 Quick Recall

Relationship Marketing — Berry (1983); CRM = tech implementation.
Transactional vs Relationship — short vs long-term.
IDIC — Peppers-Rogers: Identify · Differentiate · Interact · Customise.
3 CRM types: Operational · Analytical · Collaborative.
Lifecycle: Awareness → Acquisition → Onboarding → Engagement → Retention → Win-back.
Loyalty (Kotler): Hardcore · Split · Shifting · Switchers.
Dick-Basu (1994) loyalty matrix: True · Latent · Spurious · No loyalty.
Loyalty programmes: Points · Tiered · Cashback · Coalition (Payback, Tata Neu) · Subscription (Amazon Prime) · Gamified.
CLV (Topic 57) · NPS — Reichheld 2003.
Customer Equity — Rust-Lemon-Zeithaml: Value · Brand · Retention equity.
Wallet share / Share of customer > Market share focus.
CRM platforms: Salesforce · HubSpot · Zoho · Microsoft Dynamics · Oracle.
CRM failure rate 60-70 %.
India regulation: DPDP Act 2023 · GDPR for EU.
Modern trends: AI CRM · Social CRM · Mobile · Predictive · CDP · VOC · Omnichannel · Privacy-first · Conversational AI · CX management · Community-led growth.

66. Retail Marketing

Topic 66 Quick Recall

Retailing — Kotler/AMA; Levy-Weitz textbook.
India retail $880 bn FY24, 10 % of GDP; organised 12 %; kirana 88 %.
Functions: assortment · breaking bulk · inventory · info · credit · convenience.
14 formats: Dept · Discount · Super · Hyper · Convenience · Speciality · Category Killer · Cash & Carry · Off-price · Online · Quick · Mall · Kiosk · Direct Selling.
Retail strategy (Levy-Weitz): target market · format · SCA · growth · implementation.
6 Ps retail mix: Product · Price · Place · Promotion · People · Presentation.
Location: Trade area · Footfall · Accessibility · Demographics · Competition · Rent.
Models: Reilly’s Gravitation (1929) · Huff Probability (1964) · Nelson 8 factors · GIS.
Atmospherics — Kotler (1973): Sight · Sound · Scent · Touch · Taste + VM, Layout, Servicescape.
VM: Window · Mannequin · Planograms · End-caps · Signage · Lighting.
Merchandising: OTB · Sell-through · Markdown · Turn · GMROI · Category Management (ECR).
Pricing: EDLP (DMart/Walmart) · High-Low (Big Bazaar) · Premium · Discount · Bundle · Loss leader · Dynamic.
Retail evolution theories: Wheel of Retailing (McNair 1958) · Accordion (Hollander) · Retail Life Cycle (Davidson-Bates-Bass 1976) · Big Middle (Levy) · Dialectic · Natural Selection.
India: Reliance Retail (largest) · Tata · DMart · Amazon · Flipkart · Myntra · Nykaa · JioMart · BigBasket · Blinkit · Zepto · D2C (boAt, Mamaearth, Lenskart, Licious).
FDI policy: 100 % cash & carry · 100 % single-brand (automatic) · 51 % multi-brand (rarely used).
ONDC 2022 · GST 2017.
Modern trends: omnichannel · D2C · quick commerce · live/social commerce · phygital · cashier-less (Amazon Go) · AI personalisation · AR/VR · influencer · sustainable · experiential · re-commerce.

67. Emerging Trends in Marketing

Topic 67 Quick Recall

Kotler Marketing 1.0-5.0: Product → Customer → Values → Digital-traditional → Tech for Humanity.
Digital channels: SEM · SEO · SMM · Display · Email · Mobile · Content · Influencer · Programmatic · Affiliate · Video · OTT.
SEO: On-page · Off-page · Technical · Local · E-A-T.
Influencer tiers: Nano (1-10K) · Micro (10-100K) · Macro (100K-1M) · Mega (1M+) · KOL.
Content Marketing — Pulizzi (2015).
Inbound — Halligan-Shah HubSpot (2006).
Marketing Automation: HubSpot · Marketo · Salesforce.
AI/Big Data: predictive · personalisation · chatbots · programmatic · sentiment · gen AI.
Experiential — Pine-Gilmore (1998).
Sensory — Krishna.
Neuromarketing — Smidts (2002).
Green / Cause / Viral / Guerrilla marketing.
STEPPS — Berger (2013).
Guerrilla — Levinson (1984).
D2C: boAt, Mamaearth, Nykaa, Lenskart, Casper, Warby Parker.
Web3 / Metaverse: NFTs · token-gated communities · DAOs · phygital.
Privacy: GDPR 2018 · CCPA · DPDP 2023 · cookieless future.
India: vernacular · Bharat · WhatsApp · OTT ads · D2C boom · ONDC · UPI.

68. International Marketing

Topic 68 Quick Recall

International Marketing: cross-border 4Ps; Cateora-Gilly-Graham · Keegan.
Levitt (HBR 1983): Globalisation of Markets, standardisation.
Stages: Domestic → Export → International → Multinational → Global → Transnational.
Why go international: market · profit · diversification · capacity · survival · innovation · tax · follow customer · resources · globalisation pressures.
EPRG — Perlmutter (1969): Ethnocentric · Polycentric · Regiocentric · Geocentric.
Entry modes (rising commitment): Export → Licensing → Franchising → Contract Mfg → Mgmt Contract → Turnkey → JV → Alliance → WOS (Greenfield/Brownfield).
Cultural frameworks: Hofstede · Trompenaars · GLOBE · Hall · CAGE — Ghemawat.
Triad Power — Ohmae (1985).
Standardisation vs Adaptation vs Glocal (Sony) vs Modular.
India: DGFT · EXIM Bank · SEZ Act 2005 · MEIS → RoDTEP · Foreign Trade Policy 2023 · PLI (2020) · GIFT IFSC.
Indian global brands: Tata · Infosys · TCS · Mahindra · Sun Pharma · Bharti Airtel (Zain 2010) · OYO · Reliance · Hindalco-Novelis · Mahindra Tractors.
Modern trends: de-globalisation · friend-shoring · China+1/India+1 · digital trade · GIFT City · CBDC · ESG · DPI exports (UPI/ONDC) · Reverse Innovation (Govindarajan) · Gen-AI localisation.

Chapter 8 — Statistics And Operations Management

69. Statistics for Management

Topic 69 Quick Recall

Statistics — descriptive vs inferential. Pioneers: Pearson · Fisher · Gosset · Neyman · Mahalanobis · C.R. Rao.
Stevens (1946) 4 scales: Nominal · Ordinal · Interval · Ratio.
Central tendency: Mean · Median · Mode · GM · HM.
Dispersion: Range · IQR · MD · Variance · SD · CV = σ/X̄ × 100.
Skew: positive (Mean>Median>Mode) · negative · Pearson coeff.
Kurtosis: Meso (3) · Lepto (>3) · Platy (<3).
Probability: Classical · Empirical · Subjective · Axiomatic (Kolmogorov 1933) · Conditional · Bayes (1763) · Independence.
Distributions: Binomial · Poisson · Hypergeometric · Normal · t (Gosset 1908) · χ² · F · Exponential · Uniform.
CLT (Laplace 1810) — n ≥ 30.
Index: Laspeyres (base) · Paasche (current) · Fisher Ideal (√LP) · Marshall-Edgeworth · CPI · WPI · IIP. Tests: Time/Factor/Circular reversal.
Time-series: T · C · S · I; ARIMA (Box-Jenkins 1970) · Holt-Winters · Exponential smoothing.
India: ISI (Mahalanobis 1931) · CSO/NSO/MoSPI · Mahalanobis Distance (1936).
Modern: Big data · Bayesian revival · ML · Causal inference (Pearl, Imbens Nobel 2021) · streaming · R/Python · Tableau.

70. Data Collection and Questionnaire Design

Topic 70 Quick Recall

Data: Primary vs Secondary.
Methods: Survey · Interview · Observation · Experiment · Focus Group · Projective · Ethnography · Web scraping.
Errors: Sampling vs Non-sampling (response, non-response, interviewer, measurement, processing).
Malhotra’s 10-step questionnaire process.
Question types: Open · Close · Dichotomous · MCQ · Rating · Ranking · Filter · Contingency.
Scales: Likert (1932) · Semantic Differential (Osgood 1957) · Thurstone (1928) · Guttman (1944) · Stapel · Bogardus Social Distance (1925) · Q-Sort (Stephenson 1953) · Constant Sum · Paired Comparison.
Validity: Content · Construct (Convergent/Discriminant) · Criterion (Concurrent/Predictive) · Face.
Reliability: Test-retest · Cronbach’s α (1951) ≥ 0.7 · Parallel · Inter-rater (Cohen’s κ) · Split-half.
Question errors: Leading · Loaded · Double-barrelled · Ambiguous · Negative · Jargon · Assumptive.
Indian agencies: IMRB/Kantar · Nielsen · Ipsos · CMIE · Crisil · C-Voter · Hansa · GfK.
Modern trends: online/mobile · big data · social listening · biometrics · neuro · AI/synthetic data · conversational · geo-location · privacy-first.

71. Sampling — Concept, Process and Techniques

Topic 71 Quick Recall

Sampling — subset of population. Neyman (1934) · Mahalanobis Indian surveys.
Terms: Population N · Sample n · Frame · Unit · Parameter (μ) · Statistic (X̄) · Sampling error · Sampling distribution.
Process (5 steps): define population → frame → technique → size → execute.
Probability: SRS · Systematic · Stratified · Cluster · Multi-stage · PPS.
Non-probability: Convenience · Judgemental · Quota · Snowball · Self-selection.
Stratified (homogeneous within strata) vs Cluster (heterogeneous within clusters).
Sample size: n = (Zσ/E)² for mean; n = Z²pq/E² for proportion; Slovin n = N/(1+Ne²); Cochran (1977).
CI: 95 % → Z = 1.96; 99 % → 2.576.
Errors: Sampling (random) vs Non-sampling (coverage, non-response, response, measurement, processing).
India: NSS/NSO · NFHS · PLFS · ASI · IRS · Census · CMIE · CSDS · C-Voter.
Modern: big-data sampling · RDS · Bayesian · sequential · online panels · synthetic data · differential privacy.

72. Hypothesis Testing

Topic 72 Quick Recall

Hypothesis testing — Neyman-Pearson (1928, 1933) building on Fisher (1925).
H₀ vs H₁; One-tailed vs Two-tailed.
α (Type I) vs β (Type II); Power = 1 − β.
6 steps: H₀/H₁ → α → test stat → compute → p-value → decide.
Parametric: Z · t (one-sample, independent, paired) · F · ANOVA (Fisher 1925) · ANCOVA · MANOVA · Pearson.
Non-parametric: χ² · Mann-Whitney U · Wilcoxon Signed-Rank · Kruskal-Wallis H · Friedman · Spearman · K-S · Sign · Runs.
Choice: based on sample size, σ, # groups, samples dependent?, scale.
Effect size: Cohen’s d (0.2 / 0.5 / 0.8) · η² · r · OR.
p-value critique — ASA 2016; replication crisis.
Bayesian: prior + likelihood = posterior; Bayes Factor.
Modern: Bayesian · Bonferroni · FDR (Benjamini-Hochberg) · A/B testing · causal inference · pre-registration · effect-size focus · Bootstrap (Efron 1979) · permutation · ML-driven.

73. Correlation and Regression Analysis

Topic 73 Quick Recall

Correlation — Galton “co-relation” (1888); Karl Pearson (1896).
Pearson r ∈ [−1, +1]; r² = % variance.
Spearman ρ (1904) — ranked data; Kendall τ.
Partial vs Multiple correlation.
Correlation ≠ Causation; Hill’s Criteria (1965): strength · consistency · specificity · temporality · gradient · plausibility · coherence · experiment · analogy.
Regression — Galton (1886) “regression to mean”; OLS via Gauss-Legendre.
Simple linear: Y = α + βX + ε.
Multiple: Y = β₀ + Σβᵢ Xᵢ + ε.
Adjusted R²; F-test (overall); t-test (individual β).
Diagnostics: Multicollinearity (VIF > 10) · Heteroskedasticity · Autocorrelation (Durbin-Watson ≈ 2) · Normality of residuals.
OLS Assumptions (LINE): Linearity · Independence · Normality · Equal variance.
Variants: Polynomial · Logistic · Probit · Multinomial · Ordinal · Poisson · Negative Binomial · Cox PH · Tobit · Ridge · Lasso · ElasticNet · Quantile · Hierarchical · GAM.
Time series: AR · MA · ARMA / ARIMA (Box-Jenkins 1970) · SARIMA · VAR · GARCH · Holt-Winters · Prophet · LSTM.
ML regression: Trees · RF · XGBoost · LightGBM · NN · SVR · k-NN · Bayesian · GP.
India applications: credit scoring · demand forecasting · macro · insurance · elections · healthcare.

74. Operations Management — Role and Scope

Topic 74 Quick Recall

OM = transform inputs → outputs. Stevenson · Heizer-Render · Schroeder.
ITOM: Inputs (5 Ms) → Transformation → Outputs → Feedback.
5 Ps: Product · Plant · Processes · Programmes · People.
History: Smith 1776 · Taylor 1911 · Ford 1913 · Gantt · Gilbreth · Mayo Hawthorne · Deming-Juran Japan quality · Ohno TPS · MRP (Orlicky 1975) · Goldratt TOC 1984 · Motorola Six Sigma 1986 · Hammer BPR 1990 · Industry 4.0.
Manufacturing vs Service: tangible/intangible · inventory · contact · variability.
Production systems: Project · Job · Batch · Mass · Continuous.
Productivity = Output / Input; Partial, Multi-factor, Total, TFP (Solow).
Forecasting: Qualitative (Delphi) · Time series (MA, exp smoothing, ARIMA) · Causal · ML.
Capacity: Design · Effective · Utilisation = Actual/Design · Efficiency = Actual/Effective.
Aggregate Planning: Chase · Level · Hybrid.
India: Maruti JIT · Tata · Reliance Jamnagar · Bharat Forge · Make in India 2014 · PLI 2020 · Atmanirbhar Bharat 2020.
Modern: Industry 4.0 · Digital Twin · 3D Printing · Lean + Agile · Cobots · Smart factories · Servitisation · Real-time control towers · Friend-shoring.

75. Facility Location and Layout

Topic 75 Quick Recall

Location — Weber (1909) — minimise transport cost.
Factors: materials · markets · labour · transport · utilities · incentives · climate · community · land · risk · suppliers.
Models: Weber · Centre of Gravity · Factor Rating · Break-even · Transportation method · Reilly · Huff · GIS · AHP (Saaty).
Strategies: Single · Multi-plant · Hub-and-spoke · Clustering (Marshall) · Offshore/Reshore/Friend-shore.
India: SEZ Act 2005 · DMIC · CBIC · Bharatmala · Sagarmala · State agencies (MIDC, GIDC, KIADB).
Layout types: Product · Process · Cellular (Group Tech) · Fixed-Position · Hybrid · Office · Retail · Warehouse.
Layout principles: minimise handling · use space · flexibility · safety · supervision · flow · morale.
Methods: From-To Chart · REL Chart · SLP (Muther 1961) · CRAFT · ALDEP · CORELAP · BLOCPLAN · Activity Relationship.
Line balancing: Cycle time = T/n; Efficiency = task time / (stations × CT); Heuristics: LTT, MF, RPW.
Modern: Lean · 5S · Cellular · Reconfigurable · Smart/Industry 4.0 · Cobot · LEED · Digital Twin · AGVs · dark stores.

76. Enterprise Resource Planning

Topic 76 Quick Recall

ERP — Gartner (1990); integrated business processes on one database.
Evolution: BOM → MRP (Orlicky 1975) → MRP-II (Wight 1980s) → ERP (1990s; SAP R/3 1992) → ERP-II → Cloud → Composable.
Vendors: SAP S/4HANA · Oracle Fusion/NetSuite · Microsoft Dynamics 365 · Infor · Sage · Workday · Ramco · Tally · Zoho · ERPNext (Indian) · Odoo.
Modules: Finance · HCM · Manufacturing · Supply Chain · Sales · CRM · Project · Quality · Maintenance · BI.
Implementation: Big Bang · Phased · Parallel · Pilot · Geographic.
Markus-Tanis lifecycle (2000): Chartering · Project · Shakedown · Onward.
CSFs: Top-mgmt commitment · clear goals · PM · change mgmt · training · data quality · vendor · avoid customisation · consultant.
Failures: Hershey 1999 · Nike 2000 · HP 2004 · Avon 2013 · Lidl 2018.
Modern: Cloud/SaaS · Two-tier · Composable (Gartner 2020) · AI/ML co-pilots (SAP Joule, Oracle AI) · mobile · embedded analytics · low/no-code · API-first · blockchain · industry-specific · ESG.
India: GSTN · e-invoice · e-way bill mandatory.

77. Scheduling, Loading and Sequencing

Topic 77 Quick Recall

Loading: Finite/Infinite; Forward / Backward / Mixed scheduling.
Sequencing rules: FCFS · SPT (min avg flow) · LPT · EDD (min max lateness) · CR · S/O · Random.
Moore’s algorithm — min number of tardy jobs.
Performance: Makespan · Flow time · Lateness · Tardiness · WIP · Utilisation · Throughput.
Johnson’s Rule (1954) — n jobs, 2 machines, min makespan.
Job shop n×m — NP-hard.
Project scheduling: CPM (DuPont 1957) deterministic · PERT (US Navy 1958, Polaris) probabilistic; t=(o+4m+p)/6; Variance=((p−o)/6)².
Slack / Float; Crashing; Resource levelling; Gantt (Henry Gantt, c.1910).
Mfg scheduling systems: MRP/ERP · Drum-Buffer-Rope (Goldratt TOC) · Kanban · Conwip · Heijunka · APS · MES.
Service: appointments · reservations · cyclic staff · yield management · Erlang C for call centres.
Modern: AI/ML · GA · simulated annealing · real-time/dynamic · Digital Twin · predictive · cloud APS (o9, Kinaxis, Anaplan) · AGV · last-mile · quantum-inspired.

78. Quality Management and Six Sigma

Topic 78 Quick Recall

Gurus: Shewhart (SPC, PDCA) · Deming (14 points, PDSA) · Juran (Trilogy, 80/20) · Crosby (Zero Defects) · Feigenbaum (TQC) · Ishikawa (Fishbone, QC circles, 7 tools) · Taguchi (Robust design, QLF) · Shingo (Poka-Yoke, SMED) · Imai (Kaizen).
PDCA/PDSA: Plan-Do-Check/Study-Act.
PAF costs: Prevention · Appraisal · Internal failure · External failure.
7 QC tools: Check sheet · Histogram · Pareto · Fishbone · Scatter · Control chart · Stratification.
7 new tools (planning): Affinity, Tree, Relations, Matrix, Matrix data, Arrow, PDPC.
TQM: customer focus · employee involvement · process · continual improvement · facts.
Six Sigma — Motorola (Bill Smith 1986); GE Welch 1995. 3.4 DPMO, 99.9997 % yield.
DMAIC (improve) · DMADV / DFSS (new design).
Belts: Champion · MBB · BB · GB · YB/WB.
Lean — 7 wastes (TIMWOOD) + Skills.
SPC: X̄, R, σ, p, np, c, u, CUSUM, EWMA; UCL/LCL = mean ± 3σ.
Process capability: Cp = (USL−LSL)/6σ; Cpk uses mean position; ≥ 1.33 acceptable; ≥ 2 Six Sigma.
Standards: ISO 9001 (QMS) · 14001 · 45001 · 27001 · IATF 16949 · HACCP · GMP · CMMI · Baldrige · Deming Prize · EFQM · CII-Exim · IMC-RBNQA.
India: Tata Steel · Sundaram-Clayton · QCI · BIS · NABL · NABH · FSSAI.
Modern: Lean SS 4.0 · AI/ML quality · IoT · Digital Twin · Quality 4.0 · big-data SPC · blockchain traceability · VoC analytics · NPS · RPA.

79. Operations Research

Topic 79 Quick Recall

OR — WWII Britain 1937; Blackett. Pioneers: Dantzig (Simplex 1947), Kantorovich (LP 1939, Nobel 1975), Bellman (DP 1957), Simon, Karmarkar (interior-point 1984).
OR Phases (Wagner/Taha): Define · Model · Solve · Test · Implement · Maintain.
Models: Iconic/Analog/Math/Sim; Deterministic/Stochastic; Static/Dynamic.
LP: Graphical · Simplex · Two-Phase/Big M · Revised · Dual · Interior-point; solvers: CPLEX, Gurobi, LINDO.
Duality, Shadow prices, Sensitivity analysis.
Transportation: NW Corner · Least Cost · VAM; MODI / Stepping Stone for optimality.
Assignment: Hungarian Method (Kuhn 1955) polynomial.
Game theory: von Neumann-Morgenstern 1944 · Nash 1950 (Nobel 1994) · zero/non-zero sum · pure/mixed · minimax · saddle point · Prisoner’s dilemma.
Queuing: Erlang (1909) · Kendall A/B/c · M/M/1 · Little’s Law L=λW.
Inventory: EOQ Harris 1913 · EPQ · Newsvendor · (s,S) · (Q,R) · ABC · JIT.
Network: Dijkstra · Bellman-Ford · Ford-Fulkerson · Kruskal · Prim · CPM/PERT · TSP NP-hard · VRP.
Simulation: Monte Carlo (Ulam, von Neumann, Manhattan Project) · DES · ABM · System Dynamics (Forrester 1956) · Arena, AnyLogic.
Decision theory: Maximin (Wald) · Maximax · Hurwicz · Minimax Regret (Savage) · Laplace · Decision Tree (Magee 1964) · EVPI · Bayesian.
Other: IP · GP · DP · NLP · Stochastic · Markov · GA · SA · Tabu · PSO · Combinatorial · CP · RL.
Modern: Prescriptive analytics · Opt-as-a-Service · AI-OR fusion · digital twins · stochastic/robust · quantum · ORSI (India 1957).

Chapter 9 — International Business And Information Technology

80. International Business

Topic 80 Quick Recall

IB: cross-border commerce. Hill · Daniels-Radebaugh · Czinkota.
Modes: Export · Licensing · Franchising · Contract Mfg · Turnkey · JV · Alliance · WOS · M&A.
Trade theories: Mercantilism → Smith (Absolute 1776) → Ricardo (Comparative 1817) → Heckscher-Ohlin (Factor 1933) → Leontief paradox (1953) → Vernon PLC (1966) → Krugman NTT (1979; Nobel 2008) → Porter Diamond (1990) → Linder (1961) → Gravity (Tinbergen 1962).
FDI theories: OLI Dunning · Vernon PLC · Internalisation (Buckley-Casson) · Uppsala.
Globalisation 4.0 (WEF); drivers: trade barriers down · technology · capital · MNCs.
MNC strategies (Bartlett-Ghoshal 1989): International · Multidomestic · Global · Transnational.
India: 1991 liberalisation · WTO 1995 founder · top exports oil/pharma/IT/textiles; FTAs (Mauritius, Singapore, Korea, Japan, ASEAN, UAE CEPA 2022, Australia ECTA 2022, EFTA 2024) · Make in India 2014 · PLI 2020.
Modern: Slowbalisation · Friend-shoring · China+1/India+1 · digital trade · ESG · CBDC mBridge · DPI exports (India Stack) · OECD Pillar 2 (15 %) · EU CBAM · Gen-AI compliance.

81. Foreign Direct Investment

Topic 81 Quick Recall

FDI ≥ 10 % equity (IMF/OECD); FPI < 10 %.
Types: Horizontal · Vertical · Conglomerate · Greenfield · Brownfield/M&A · Inward/Outward.
Theories: Hymer (1960) · Vernon PLC (1966) · Buckley-Casson Internalisation (1976) · Dunning OLI (1977-88) · Uppsala (Johanson-Vahlne 1977) · Born Globals (Knight-Cavusgil 1996) · LLL (Mathews 2002) · Springboard (Luo-Tung 2007).
OLI: Ownership · Location · Internalisation.
Pros: capital · tech · jobs · taxes · spillovers · exports · governance.
Cons: crowding out · repatriation · sovereignty · culture · race-to-bottom.
India: FERA 1973 → FEMA 1999 · DPIIT · automatic vs government route · sector caps · Press Note 3 (2020) for neighbours · top sources Mauritius/Singapore/USA/Netherlands/Japan.
Reports: UNCTAD World Investment Report.
Modern: Reshoring · Green FDI · PLI (2020) · OECD Pillar 2 (15 %) · investment screening · DPI as soft-FDI · Indian outbound (Tata, Reliance, Adani).

82. WTO and Multilateral Regulation of Trade

Topic 82 Quick Recall

WTO: 1 Jan 1995 (Marrakesh 1994); Geneva HQ; 164 members; India founding.
DG (since 2021): Ngozi Okonjo-Iweala.
Rounds: Geneva-Annecy-Torquay-Kennedy-Tokyo-Uruguay (WTO formed)-Doha (2001, stalled).
Agreements: GATT (goods) · GATS (services) · TRIPS (IP) · TRIMS (investment) · DSU · AoA · SPS · TBT · Anti-Dumping · SCM · Safeguards · GPA · ITA · TFA (2017) · Fisheries Subsidies (2022).
Principles: MFN · National Treatment · liberalisation · predictability · fair competition · S&DT · transparency · reciprocity.
Dispute Settlement: consultations → panel → Appellate (suspended since 2019) → adoption → retaliation; MPIA as workaround.
TRIPS — 20-year patent · Doha Health Declaration 2001 · COVID waiver 2022 · India CL Natco-Bayer 2012.
Ministerials: Singapore ’96 → Seattle ’99 → Doha ’01 → Bali ’13 (Peace Clause) → Nairobi · BA · Geneva MC12 2022 · Abu Dhabi MC13 2024.
India: founder; champions agriculture (food security), generics, services Mode 4, S&DT; opposes Singapore issues.
Modern: AB reform · e-commerce moratorium · digital trade · plurilateral JSI · environment/CBAM · industrial subsidies · GVCs · US-China.

83. International Trade Procedures and EXIM Policies

Topic 83 Quick Recall

India’s foreign trade: FTDR Act 1992 · DGFT · 5-year FTP (latest FTP 2023 — no sunset, $2 tn by 2030).
Export documents: Pro-forma · Commercial Invoice · Packing list · B/L · AWB · Certificate of Origin · LC · Shipping Bill · GR/SDF · Bill of Exchange.
Import: Bill of Entry · IEC · LC · B/L · Invoice.
Payment methods (risk to exporter): Open Account → D/A · D/P → LC → Cash in Advance.
Incoterms 2020 (ICC): 11 terms; FOB · CIF · CFR · FAS (sea); EXW · FCA · CPT · CIP · DAP · DPU · DDP (any mode).
Indian EXIM bodies: DGFT · CBIC · RBI · ECGC · EXIM Bank (1982) · EPCs (FIEO, GJEPC, AEPC etc) · APEDA · MPEDA · Coffee/Tea/Spices Boards · ITPO · IBEF.
Schemes: EPCG · Advance Authorisation · DFIA · EOU · SEZ · RoDTEP (replaced MEIS) · RoSCTL · Drawback · TIES · NIRVIK.
SEZ Act 2005 · 268 SEZs · DESH Bill pending · GIFT IFSC Gandhinagar.
Barriers: Tariff (specific, ad-valorem, anti-dumping, CVD, safeguard) vs NTB (quotas, licences, embargoes, VER, TBT, SPS, subsidies).
Modern: e-commerce exports · UPI international · ₹-trade · ODOP · TradeConnect · Single-Window SWIFT · AEO · GIFT City · green trade · FTA push (UAE CEPA, Australia ECTA, EFTA, UK, EU).

84. International Financial Institutions — IMF and World Bank

Topic 84 Quick Recall

Bretton Woods (1944) — Keynes (UK) + Harry Dexter White (US); created IMF + IBRD.
IMF: 190 members; Washington DC; MD Kristalina Georgieva (since 2019); First Deputy MD Gita Gopinath.
IMF functions: Surveillance · Lending · Capacity Development.
IMF facilities: SBA · EFF · FCL · PLL · RFI · RST (2022) · PRGT · SDR allocation ($650 bn 2021).
SDR (1969) basket: USD, EUR, CNY (since 2016), JPY, GBP.
IMF flagships: WEO · GFSR · Fiscal Monitor · External Sector Report.
India: founder; 1981 + 1991 SBA → liberalisation.
World Bank Group: IBRD (1944), IDA (1960), IFC (1956), MIGA (1988), ICSID (1966); HQ Washington DC; President Ajay Banga (2023).
WB lending: IPF · DPF · PforR · MPA · CIF.
Other IFIs: BIS Basel 1930 · ADB Manila 1966 · AfDB · EBRD · IDB · AIIB Beijing 2016 (India 2nd) · NDB Shanghai 2015 (BRICS, Kamath first president) · IsDB.
Modern: climate finance · pandemic preparedness · CBDC research · MDB reform (Bridgetown) · Common Framework · de-dollarisation · G20 India presidency 2023.

85. Information Technology in Management

Topic 85 Quick Recall

IS Pyramid: TPS (op) → MIS · DSS (middle) → EIS / ESS · BI (top).
Other systems: ERP · CRM · SCM · KMS · GIS · OAS · ES · GSS.
Frameworks: Porter-Millar (1985) IT changes competition · Carr (2003) “IT doesn’t matter” · Brynjolfsson productivity paradox · RBV.
Strategic IT: cost · differentiation · focus · innovation · lock-in · BPR · network effects (Metcalfe n²) · platforms.
E-business: B2C · B2B · C2C · C2B · B2G/G2B/G2C · D2C.
India Stack DPI: Aadhaar 2009 · UPI 2016 · GSTN · CoWIN · ONDC 2022 · DigiLocker · AA framework · DEPA.
Software: System · Application · Middleware · Embedded · Open source · SaaS/PaaS/IaaS.
Governance: COBIT · ITIL · ISO 27001 / 20000 · COSO · TOGAF · NIST CSF; IT Act 2000 · DPDP Act 2023; CERT-In.
Cloud (NIST): IaaS/PaaS/SaaS/FaaS; Public/Private/Hybrid; AWS · Azure · GCP · Oracle · IBM.
Cybersecurity: CIA triad + AAA; threats (malware, ransomware, phishing, DDoS, APT) · defences (firewall, IDS, SIEM, MFA, encryption, zero trust).
Modern: Gen-AI · cloud-native · edge · 5G · IoT · blockchain · quantum · AR/VR · DevSecOps · low/no-code · hyperautomation · digital twins · sustainable IT · India AI Mission 2024 · Semicon India 2021.

86. Artificial Intelligence and Big Data

Topic 86 Quick Recall

AI: Dartmouth 1956 (McCarthy); Turing 1950 imitation game.
AI eras: Symbolic → Winters → Expert Systems → ML → DL (2012 AlexNet) → Generative AI (2022 ChatGPT).
AI types: ANI/AGI/ASI; Reactive/Limited memory/ToM/Self-aware.
ML: Supervised · Unsupervised · Semi · Self-supervised · RL (AlphaGo) · Transfer · Federated · Active.
Algorithms: Regression · DT · RF · XGBoost · k-NN · NB · SVM · k-Means · PCA/tSNE/UMAP · NN · CNN · RNN/LSTM · Transformer (Vaswani 2017) · GAN (Goodfellow 2014) · Diffusion.
GenAI: GPT · BERT · DALL-E · ChatGPT Nov 2022 · GPT-4 · Gemini · Claude · Llama · Mistral · Sora; Indian — BharatGPT · Krutrim · Sarvam · AI4Bharat.
Mgmt applications: Marketing personalisation · HR · Fraud · Predictive maintenance · SCM · CX · Strategy · Cyber.
Big Data (Laney Gartner 2001): 3 Vs (Volume · Velocity · Variety); 5 Vs + Veracity, Value; 7 Vs + Variability, Visualisation.
Tech stack: Hadoop (2006) + MapReduce · HDFS · Spark · Hive · Pig · NoSQL (Mongo, Cassandra, HBase) · Kafka · Flink · cloud (Redshift, BigQuery, Synapse, Snowflake, Databricks) · data lake/lakehouse · Delta Lake.
Analytics maturity (Gartner): Descriptive · Diagnostic · Predictive · Prescriptive.
India: NITI #AIforAll 2018 · IndiaAI Mission 2024 · Bhashini · AI4Bharat · CDAC · IISc; firms — TCS · Infosys · Fractal · Mu Sigma · Tiger Analytics · LatentView.
Ethics: bias · XAI · accountability · privacy · safety/alignment · deepfakes; EU AI Act 2024 · NIST AI RMF · OECD · UNESCO; DPDP Act 2023.
Modern: GenAI · multimodal · agents · RAG · SLMs · AlphaFold · Edge AI · Nvidia H100/TPU · synthetic data · quantum ML · safety/alignment · sustainable AI.

87. Data Warehousing, Mining and Knowledge Management

Topic 87 Quick Recall

DW (Inmon 1990) — subject-oriented, integrated, time-variant, non-volatile.
Inmon (top-down, 3NF) vs Kimball (bottom-up, dimensional/star).
Schemas: Star · Snowflake · Galaxy · SCD types.
OLTP vs OLAP — operations vs analysis.
Architecture: Source → ETL/ELT → DW/Lake → OLAP → Marts → Metadata → BI.
Data mining = KDD — Fayyad (1996) 5 steps; CRISP-DM 6 phases.
Mining tasks: Classification · Regression · Clustering · Association rules (Apriori — Agrawal-Srikant 1994; FP-Growth — Han 2000) · Sequential · Anomaly · Text/Web/Image/Graph · Process mining.
Market basket: Support · Confidence · Lift; Diapers-Beer.
KM: Davenport-Prusak · Nonaka-Takeuchi 1995 · Sveiby · Drucker (knowledge worker 1959).
Tacit vs Explicit (Polanyi 1966).
SECI: Socialisation (T→T) · Externalisation (T→Ex) · Combination (Ex→Ex) · Internalisation (Ex→T); + Ba.
DIKW — Data → Information → Knowledge → Wisdom (Ackoff 1989).
KM strategies (Hansen-Nohria-Tierney 1999): Codification vs Personalisation.
Tools: DMS · CMS · portals · wikis · CoP (Wenger 1998) · ES · Slack · semantic search · LLM+RAG.
India: TCS · Infosys KShop · CII KM · ISRO · IIM-B · Mu Sigma · Fractal.
Modern: Cloud DW (Snowflake, Databricks, BigQuery) · Lakehouse · Kafka+Spark · AutoML · MLOps · DataOps · Knowledge graphs · Vector DBs · Semantic layer · Data Mesh (Dehghani 2019) · differential privacy.

88. Managing Technological Change

Topic 88 Quick Recall

Tech change — Schumpeter “creative destruction” (1942).
Diffusion (Rogers 1962): Innovators 2.5 · Early Adopters 13.5 · Early Majority 34 · Late Majority 34 · Laggards 16; attributes: RA, Compatibility, Complexity, Trialability, Observability.
Disruptive Innovation — Christensen (1997); sustaining vs disruptive (Kodak, Nokia, Netflix).
TAM (Davis 1989): PU + PEOU → Intention → Use; TAM2 (2000); UTAUT (Venkatesh 2003); UTAUT2 (2012).
Tech S-curve: Embryonic → Growth → Maturity → Decline.
Gartner Hype Cycle: Trigger → Peak → Trough → Slope → Plateau.
Change frameworks: Lewin (1947) Unfreeze-Change-Refreeze · Kotter 8 steps (1996) · ADKAR (Hiatt-Prosci) · Bridges · McKinsey 7S · Burke-Litwin.
Resistance — fear, skill, status, habit, misinfo, trust; overcome via Kotter-Schlesinger (1979).
Strategy: First mover · Fast follower · Late entrant; Build vs Buy vs Partner; Open Innovation (Chesbrough 2003); 70-20-10 (McKinsey).
India: Digital India 2015 · Atmanirbhar 2020 · Startup India 2016 · IndiaAI Mission 2024 · Semicon 2021 · National Quantum Mission 2023 · NM-ICPS · Bharatnet · 5G launch 2022 · DPI exports.
Modern: Gen-AI integration · cloud-native · composable · citizen developers · SAFe · bi-modal · tech debt · CoE · hackathons · WEF Future of Jobs · ESG-tech.

Chapter 10 — Entrepreneurship Development

89. Entrepreneurship Development

Topic 89 Quick Recall

Thinkers: Cantillon (1730 risk) · J.B. Say (coordinator) · Knight (uncertainty 1921) · Schumpeter (innovator 1934) · Kirzner (alertness 1973) · Drucker (1985) · McClelland (n-Ach 1961) · Stevenson (opportunity beyond resources).
Functions: opportunity · innovation · risk · resources · decisions · wealth · jobs.
Types: Innovative · Imitative · Fabian · Drone (Danhof); Necessity vs Opportunity (GEM); Intrapreneur (Pinchot 1985); Social (Yunus, Bornstein); Eco; Women; Rural.
Theories: Economic (Schumpeter, Cantillon, Kirzner); Sociological (Weber, Hagen); Psychological (McClelland, Rotter); RBV; Effectuation (Sarasvathy 2001); Bricolage (Baker-Nelson 2005); Lean Startup (Ries 2011).
Process (Bygrave): Idea → Feasibility → Plan → Resources → Launch → Growth/Harvest.
EDP institutions: EDII Ahmedabad (1983) · NIESBUD · IIE Guwahati · MSME-DI · NSIC · KVIC.
India: Startup India 2016 · Stand Up India 2016 · PMMY Mudra 2015 (Shishu/Kishor/Tarun) · Atal Innovation Mission · SIDBI FoF ₹10,000 Cr.
Unicorns: 100+ — Flipkart · Paytm · OYO · Byju’s · Zerodha · Razorpay · Swiggy · Zomato · Nykaa · Mamaearth · Lenskart · PhonePe.
Modern: VC (Peak XV ex-Sequoia, Accel, Nexus, Blume, Kalaari); Angel networks (IAN, Mumbai Angels); bootstrapping; crowdfunding; Lean Startup, Customer Dev (Blank); pivot; DPI advantage; Gen-AI · climate · women-led · tier-2/3 hubs.

90. Intrapreneurship

Topic 90 Quick Recall

Intrapreneurship — Pinchot III (1985); aka corporate entrepreneurship/venturing.
vs Entrepreneur: own risk/reward vs firm’s; constraints; failure cost differs.
Types: corporate venturing · internal/external · strategic renewal · innovation labs · spin-offs.
Drivers: disruption · talent retention · speed · revenue · cultural renewal · ecosystem.
Pinchot’s commandments: top-mgmt support · slack · right to fail · rewards · autonomy · cross-functional · 20 % time · champions.
Models: Burgelman (1983) autonomous/induced · Covin-Slevin EO (1989) — innovativeness, risk, proactiveness · Lumpkin-Dess (1996) added autonomy + aggressiveness · Miller · Stevenson-Jarillo · Wolcott-Lippitz.
Examples: 3M Post-it · Gmail (Google 20 %) · PlayStation (Sony) · Java (Sun) · IBM PC · Lockheed Skunkworks · Saturn (GM) · Nespresso (Nestlé) · Macintosh.
India: Tata Nano · HCL i-Garage · Wipro CTO · Infosys Catapult · Reliance Jio · L&T · TCS COIN · Maruti IRDP.
Challenges: bureaucracy · risk aversion · KPI misalignment · cannibalisation · talent leakage.
Enablers: labs · accelerators · CVC arms (Reliance Ventures, Wipro Ventures) · hackathons · 20 % time · skunkworks · spin-out policy · innovation KPIs.
Modern: open innovation + intrapreneurship · CVC boom · venture studios · agile · Design Thinking · phantom stock · Gen-AI prototyping.

91. Women and Rural Entrepreneurship

Topic 91 Quick Recall

Woman entrepreneur (GoI): ≥ 51 % capital + ≥ 51 % women employees.
Categories: Affluent · Pull · Push · Rural · Educated middle-class · First-gen · Inherited · Tech · Social.
Indian women: Kiran Mazumdar-Shaw (Biocon) · Indra Nooyi · Vandana Luthra (VLCC) · Falguni Nayar (Nykaa) · Ghazal Alagh (Mamaearth) · Anu Aga (Thermax) · Mallika Srinivasan (TAFE) · Ekta Kapoor (Balaji) · Shahnaz Husain.
Challenges: finance · family · mobility · networks · stereotypes · education · marketing · risk aversion.
Schemes (women): Stand Up India 2016 · Mahila Udyam Nidhi · Mahila E-Haat · TREAD · Annapurna · Bhartiya Mahila Bank · NRLM-Aajeevika · Mudra · WEP (NITI 2018) · STEP · Stree Shakti.
Rural entrepreneurship — agri, forest, mineral, engineering, textile, KVI, cottage, sericulture, apiculture.
Rural challenges: finance · infrastructure · skill · markets · technology · logistics · bureaucracy · migration · climate.
Indian institutions: KVIC (1957) · NABARD (1982) · MSME Min · NSIC · SIDBI · NRLM · DRDA · CAPART · DIC (1978) · SFURTI · PMEGP (KVIC) · ASPIRE · PMFME · ODOP · MGNREGA.
SHG: NABARD-SHG Bank Linkage 1992 · MYRADA · SEWA (Ela Bhatt 1972) · Grameen (Yunus); JLG; microfinance (Bandhan, SKS).
Modern: tech-women funding · rural e-commerce (Meesho, ONDC) · Agri-tech (Ninjacart, AgroStar, DeHaat) · rural fintech · clusters (Tiruppur, Sivakasi, Moradabad) · GI-tags · solar entrepreneurs · cooperative (Amul, IFFCO) · D2C women brands.

92. Innovations in Business

Topic 92 Quick Recall

Innovation = commercialised invention (Schumpeter, Drucker 1985).
Schumpeter’s 5: Product · Process · Market · Supply · Organisation.
Types: Product · Process · Marketing · Organisational · Business Model · Service · Open · Frugal/Jugaad · Reverse.
Modes: Radical · Incremental · Architectural (Henderson-Clark 1990) · Disruptive (Christensen) · Sustaining.
Frameworks: Doblin 10 Types · McKinsey 3 Horizons / 70-20-10 · Ambition Matrix · Christensen Disruption · Blue Ocean (Kim-Mauborgne 2005) · Design Thinking (IDEO, Stanford d.school) · Jobs-to-be-Done · Open Innovation (Chesbrough) · Triple Helix · Stage-Gate (Cooper).
Design Thinking 5: Empathise · Define · Ideate · Prototype · Test; Double Diamond.
Blue Ocean: ERRC Eliminate-Reduce-Raise-Create.
Frugal/Jugaad — Radjou-Prabhu-Ahuja (2012); Reverse — Govindarajan.
India examples: Tata Nano · Aravind Eye Care · Aadhaar · UPI · ONDC · Jio · Mitticool · Jaipur Foot · e-Choupal · Amul · Patanjali · ISRO Mangalyaan/Chandrayaan-3.
India NIS: AIM (NITI 2016) · Atal Tinkering Labs · Atal Incubation · NIPER · IITs/NITs · CSIR (38 labs) · DRDO · ISRO · BIRAC · DST/DBT · TIFAC · TIDE 2.0 · NRF Anusandhan 2023 · STIP 2023 · India 39th in GII 2024.
Modern: Gen-AI design · ESG · Circular · Crowdsourced · Hackathons · Govt innovation labs · University-industry · Accelerators · Frugal+Tech Bharat · Quantum/Bio/Nano · AR/VR design.

93. Business Plan and Feasibility Analysis

Topic 93 Quick Recall

Business plan — Bygrave-Zacharakis; Sahlman (HBR 1997) 4 questions (People · Opportunity · Context · Deal).
Purpose: clarify · finance · approvals · feasibility · team · ops · communicate.
Structure (12 sections): Executive Summary · Company · Market (TAM-SAM-SOM, 5 Forces) · Competitive · Product · Marketing (STP/4Ps) · Operations · Management · Financials · Funding · Risk · Appendices.
Feasibility: Market · Technical · Financial · Organisational · Legal-Regulatory · (+Social/Environmental/Ethical).
Tools: TAM-SAM-SOM · 5 Forces · SWOT · PESTEL · BMC (Osterwalder 2010) 9 blocks · Lean Canvas (Ash Maurya) · Value Proposition Canvas · Unit economics (CAC, LTV — LTV/CAC ≥ 3:1) · Break-even (FC/(P−V)) · NPV/IRR/Payback · Sensitivity · MVP (Ries).
Financial: revenue · cost · break-even · P&L/BS/CF · capex · working capital · funding sources · sensitivity · valuation (DCF, multiples).
Pre-investment studies: Pre-feasibility · DPR · TEFR · EIA · Social IA; UNIDO Manual · Little-Mirrlees social cost-benefit.
Plan variants: Pitch deck (Kawasaki 10/20/30) · Exec summary · 1-pager · Full plan · Lean plan · Operational · Strategic.
India: DPIIT recognition · AIM Atal Incubators · SIDBI/NABARD DPR · Stand-Up India · biz-plan competitions (IIT/IIM/Tata SEC).
Modern: Lean · MVP · pivot-friendly · ESG · AI-drafts · data-driven · OKRs · Gen-AI pitch decks · no-code FP&A · continuous planning · DEI · climate.

94. Micro and Small Scale Industries in India

Topic 94 Quick Recall

MSMED Act 2006; revised 2020 — composite Investment + Turnover.
Micro ≤ ₹1 Cr / ₹5 Cr · Small ≤ ₹10 Cr / ₹50 Cr · Medium ≤ ₹50 Cr / ₹250 Cr.
Importance: ~30 % GDP, ~45 % manufacturing, ~48 % exports, ~11 Cr jobs.
Evolution: IPR 1948/56 · Karve Committee 1955 (SSI Board) · Abid Hussain 1997 · MSMED Act 2006 · Atmanirbhar 2020.
Schemes: PMEGP · CGTMSE (collateral-free) · CLCSS · ZED · TReDS · MUDRA (PMMY 2015) · Stand-Up · PMS-Champions · SFURTI · ASPIRE · Lean Mfg · Public Procurement Policy 2012 (25 % MSE) · MSME Samadhaan · ECLGS · RAMP 2022 (World Bank).
Institutions: Min of MSME · DC-MSME · NSIC (1955) · KVIC (1957) · NIESBUD · NI-MSME Hyderabad · MSME-DI/DIC · TIFAC · Coir/Silk/Spices Boards.
Finance: SIDBI (1990) · NABARD · PSBs · MUDRA Shishu/Kishor/Tarun · CGTMSE · BSE-SME, NSE Emerge · NBFC-MFI · Priority Sector Lending.
Problems: finance · technology · marketing · quality · skills · raw material · delayed payments · infra · compliance · sickness · digital gap.
Clusters: Tiruppur (knitwear) · Sivakasi (fireworks/matches/printing) · Moradabad (brass) · Ludhiana · Surat (textile/diamonds) · Jaipur · Bhadohi · Aligarh (locks) · Firozabad (bangles) · Panipat · Coimbatore · Kanchipuram · Agra.
Modern: Udyam Registration (2020) · GeM · ONDC · TReDS (RXIL, A.TReDS, M1xchange) · GST e-invoice · PLI · ODOP · ZED push · ESG · AA framework · AI credit underwriting.

95. Sickness in Small Industries

Topic 95 Quick Recall

Sickness: inability to generate surplus to service debts.
RBI MSME definition (2012): 3-month default OR 50% net-worth erosion + 2-yr production.
Stages: Healthy → Tending → Incipient → Sick → Chronic → Closure.
Symptoms: declining sales · cash deficit · payment default · high inventory · low capacity · turnover · mgmt change · audit qualifications · DE-ratio rise · statutory dues.
Internal causes: poor mgmt · finance · marketing · technology · personnel · WC · fund diversion · family disputes · cost control · inventory.
External causes: policy · recession · raw material · GST/demonetisation/COVID · competition · infra · technology obsolescence · labour · calamities · credit squeeze · FX · geopolitics.
Detection: Altman Z-Score (1968) · Argenti · ratios · cash flow · industry comparison · EWS · SMA classification (RBI).
Revival: OTS · restructuring · ARC · WC infusion · technology upgradation · M&A · alliances · grants · mgmt change · marketing · VRS.
India framework: SICA 1985 (BIFR), AAIFR; SICA repealed 2003 (effective 2016); IBC 2016; CDR (2001); RBI MSME Revival Framework 2015; MSME Pre-pack PIRP 2021 (₹10L-₹1Cr default, 120 days); MSME Samadhaan; ECLGS COVID.
Modern: AI/ML EWS · AA framework · stressed-asset funds · cluster-based revival · sustainability-linked loans · Bharat Credit Risk Index · TReDS.

96. Institutional Finance to Small Industries

Topic 96 Quick Recall

Finance needs: long-term · medium · working capital · margin · trade · bridge · bill discounting.
Sources: Commercial banks (PSB/Private) · SIDBI (1990 Lucknow) · NABARD (1982) · SFCs · SIDCs · NSIC (1955) · KVIC · Cooperative banks · RRBs · NBFC-MFIs · MUDRA (2015) · EXIM Bank · capital markets.
SIDBI roles: refinance · direct lending · MFIs · Fund of Funds for Startups ₹10,000 Cr · CGTMSE · TReDS (RXIL) · capacity building.
CGTMSE (2000) — collateral-free up to ₹5 Cr; 75-85 % cover.
MUDRA: Shishu ≤ ₹50k · Kishor ₹50k-₹5L · Tarun ₹5L-₹10L · Tarun Plus ₹10L-₹20L (FY25).
WC assessment: Operating Cycle · Cash Budget · MPBF (Tandon) · Turnover Method (Nayak 1991 — 20 % of turnover for SSIs).
PSL (RBI): 40 % of ANBC; MSME sub-target.
Capital markets: BSE-SME (2012), NSE Emerge (2012).
Specialised: NEDFI (North-East) · TRIFED · PM Vishwakarma 2023 · PM SVANidhi (street vendors) · Stand-Up India · AIF.
Modern: digital lending fintechs · Account Aggregator · OCEN · GeM Sahay · TReDS (RXIL, A.TReDS, M1xchange) · AI/ML underwriting · cash-flow lending · BNPL · green/sustainability-linked · co-lending · PTPFC (RBI 2023) · ULI unified lending interface.