Tag: International Finance Mumbai University BMS Notes

Management Notes

Banking System in India

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In India the banks and banking have been divided in different groups. Each group has their own benefits and limitations in their operations. They have their own dedicated target market. Some are concentrated their work in rural sector while others in both rural as well as urban. Most of them are only catering in cities and major towns.

Indian Banking System: Structure

Bank is an institution that accepts deposits of money from the public.

Anybody who has account in the bank can withdraw money. Bank also lends money.

Indigenous Banking

The exact date of existence of indigenous bank is not known. But, it is certain that the old banking system has been functioning for centuries. Some people trace the presence of indigenous banks to the Vedic times of 2000-1400 BC. It has admirably fulfilled the needs of the country in the past.

However, with the coming of the British, its decline started. Despite the fast growth of modern commercial banks, however, the indigenous banks continue to hold a prominent position in the Indian money market even in the present times. It includes shroffs, seths, mahajans, chettis, etc. The indigenous bankers lend money; act as money changers and finance internal trade of India by means of hundis or internal bills of exchange.

Disvantages

(i) They are unorganized and do not have any contact with other sections of the banking world.

(ii) They combine banking with trading and commission business and thus have introduced trade risks into their banking business.

(iii) They do not distinguish between short term and long term finance and also between the purpose of finance.

(iv) They follow vernacular methods of keeping accounts. They do not give receipts in most cases and interest which they charge is out of proportion to the rate of interest charged by other banking institutions in the country.

Suggestions for Improvements

(i) The banking practices need to be upgraded.

(ii) Encouraging them to avail of certain facilities from the banking system, including the RBI.

(iii) These banks should be linked with commercial banks on the basis of certain understanding in the respect of interest charged from the borrowers, the verification of the same by the commercial banks and the passing of the concessions to the priority sectors etc.

(iv) These banks should be encouraged to become corporate bodies rather than continuing as family based enterprises.

Structure of Organized Indian Banking System

The organized banking system in India can be classified as given below:

Reserve Bank of India (RBI)

The country had no central bank prior to the establishment of the RBI. The RBI is the supreme monetary and banking authority in the country and controls the banking system in India. It is called the Reserve Bank’ as it keeps the reserves of all commercial banks.

Commercial Banks

Commercial banks mobilise savings of general public and make them available to large and small industrial and trading units mainly for working capital requirements.

Commercial banks in India are largely Indian-public sector and private sector with a few foreign banks. The public sector banks account for more than 92 percent of the entire banking business in India—occupying a dominant position in the commercial banking. The State Bank of India and its 7 associate banks along with another 19 banks are the public sector banks.

Scheduled and Non-Scheduled Banks

The scheduled banks are those which are enshrined in the second schedule of the RBI Act, 1934. These banks have a paid-up capital and reserves of an aggregate value of not less than Rs. 5 lakhs, hey have to satisfy the RBI that their affairs are carried out in the interest of their depositors.

All commercial banks (Indian and foreign), regional rural banks, and state cooperative banks are scheduled banks. Non- scheduled banks are those which are not included in the second schedule of the RBI Act, 1934. At present these are only three such banks in the country.

Regional Rural Banks

The Regional Rural Banks (RRBs) the newest form of banks, came into existence in the middle of 1970s (sponsored by individual nationalized commercial banks) with the objective of developing rural economy by providing credit and deposit facilities for agriculture and other productive activities of al kinds in rural areas.

The emphasis is on providing such facilities to small and marginal farmers, agricultural labourers, rural artisans and other small entrepreneurs in rural areas.

Other special features of these banks are

(i) Their area of operation is limited to a specified region, comprising one or more districts in any state.

(ii) Their lending rates cannot be higher than the prevailing lending rates of cooperative credit societies in any particular state.

(iii) The paid-up capital of each rural bank is Rs. 25 lakh, 50 percent of which has been contributed by the Central Government, 15 percent by State Government and 35 percent by sponsoring public sector commercial banks which are also responsible for actual setting up of the RRBs.

These banks are helped by higher-level agencies: the sponsoring banks lend them funds and advise and train their senior staff, the NABARD (National Bank for Agriculture and Rural Development) gives them short-term and medium, term loans: the RBI has kept CRR (Cash Reserve Requirements) of them at 3% and SLR (Statutory Liquidity Requirement) at 25% of their total net liabilities, whereas for other commercial banks the required minimum ratios have been varied over time.

Cooperative Banks

Cooperative banks are so-called because they are organized under the provisions of the Cooperative Credit Societies Act of the states. The major beneficiary of the Cooperative Banking is the agricultural sector in particular and the rural sector in general.

The cooperative credit institutions operating in the country are mainly of two kinds: agricultural (dominant) and non-agricultural. There are two separate cooperative agencies for the provision of agricultural credit: one for short and medium-term credit, and the other for long-term credit. The former has three tier and federal structure.

At the apex is the State Co-operative Bank (SCB) (cooperation being a state subject in India), at the intermediate (district) level are the Central Cooperative Banks (CCBs) and at the village level are Primary Agricultural Credit Societies (PACs).

Long-term agriculture credit is provided by the Land Development Banks. The funds of the RBI meant for the agriculture sector actually pass through SCBs and CCBs. Originally based in rural sector, the cooperative credit movement has now spread to urban areas also and there are many urban cooperative banks coming under SCBs.

Management Notes

Types of Securities in Banks

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Security is what the borrower puts up to guarantee payment of the loan. Moreover security means immovable & chattel or personal asset or assets to which a lender can have recourse if the borrower defaults in the loan payment. Bankers, whenever advancing loans, first ask for the security to be put for the loans requested. Different types of securities are used depending upon the nature of the advances issued by the banks. A good security must be enough to cover the risk, highly liquid, free from any encumbrance, clean in ownership and easy to handle.

There are two types of banks security.

  • Personal Security
  • Non-personal security

  1. Personal security

If any banks client himself or third party is considered as security is called personal security. without receiving the immovable & chattel assets as security, if bank can receive any client himself or any person own self on be half of that client as security is considered as personal security. Bank will consider the person or third party only for then when he has enough social dignity and goodwill or a scope of applying law against himself in future or he is engaged in renowned business, government or recognized non government organization.

  1. Non-personal security

without receiving any client himself or any person own self on be half of that client as security , if bank can receive the immovable & chattel assets as security is considered as non-personal security. There are four types of non-personal security. such as-

  • Lien
  • Pledge
  • Mortgage
  • Hypothecation

The above four categories of non-personal security are given below with detail.

(a) Lien

The right of retain foods is known as lien. The lawful right of a lender to offer the guarantee property of an account holder who neglects to meet the commitments of an advance contract. A lien exists, for instance, when an individual takes out a vehicles advance. The lien holder is the bank that allows the advance, and the lien is discharged when the credit is forked over the required funds. Another kind of lien is a repairman’s lien, which can be appended to genuine property if the property proprietor neglects to pay a foreman for administrations rendered. In the event that the account holder never pays, the property can be sold to pay the lien holder. There are two types of lien:-

  • General lien: Here, Bank has the possess of the assets have been kept as security and bank can’t transfer the possession to another until the loan amount is being paid.
  • Special lien: Here, Bank has the possess of the assets have been kept as security and bank can transfer the possession to another on conditions is called special lien.

(b) Pledge

Here the possess of assets is to bank or loan provider, but the ownership is to borrower. After payment, bank transfers the possession of security assets to borrower. When a customer takes loan against jewels he pledges the jewel to the bank.  Similarly a customer availing loan on key cash credit basis pledges the  goods to the banker by keeping them in a godown under lock and key  control of the bank. Pledged goods are to be insured and the pledgee (banker) has to take reasonable care to protect the property pledged.

3. Mortgage

It is an interest in property created as security for a loan or payment of debt and terminated on payment of the loan or debt. A mortgage is a contract that permits a loan provider partially or fully to foreclose that security when a borrower is unable to pay the loan amount. Mortgage is applicable only for immovable assets and this is why it is called immovable property mortgage. There are many types of mortgage have been described below.

  • Simple mortgage: If the loan amount isn’t paid by borrower and legal step is taken against him or lender can purchase which security assets on the opinion of borrower is called simple mortgage.
  • Fixed mortgage: The borrower gives which property in black & white or in registering to the lender and if the loan is not paid in time, then legal possession of that security is gained by lender is called fixed mortgage.
  • Conditional mortgage: If the loan amount isn’t paid in time and without fulfilling the determined conditions, the which security is not sold or transfered is called conditional mortgage.
  • Floating mortgage: The possession right of which mortgage properly is belonged to borrower and only documents are submitted to loan provider is called floating mortgage.
  • Equitable mortgage: The documents of which mortgage property is kept to bank for a specific time period and possession is belonged to borrower and after exceeding the payment period bank try to gain the legal possession is called equitable mortgage.
  • Registered equitable mortgage: The ownership documents of which mortgage property is kept to lone provider with registration for a specific time period and possession is belonged to borrower is called registered equitable mortgage.
  • Use fructuary mortgage: The possession & consumption of which mortgage property is given to loan provider as loan providing till a specific time period and after exceeding that time period the belongingness of that property is leaved to borrower is called use fructuary mortgage.
  • English mortgage: The ownership of which mortgage property is to loan provider and possession or belongingness of that property is to borrower is called English mortgage. If borrower is fail to pay the loan amount then the possession power is automatically gone to loan provider.
  1. Hypothecation

It is pledge to secure an obligation without delivery of title or possession.

At last we can say that, at the modern banking sectors a great changes has been occurred in the categories of categories of mortgage.

University of Mumbai BMS Notes

Corporate Restructuring University of Mumbai BMS 4th Sem Notes

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Unit 1 Corporate Restructuring: Introduction and Concepts {Book}
Corporate Restructuring, Historical Background, Meaning of Corporate Restructuring, Corporate Restructuring as a Business Strategy VIEW
Need and Scope of Corporate Restructuring VIEW
Planning, Formulation and Execution of Various Restructuring Strategies VIEW
Important Aspects to be considered while Planning or Implementing Corporate Restructuring Strategies VIEW
Forms of Restructuring:
Merger VIEW VIEW
Demerger, Reverse merger VIEW
Disinvestment VIEW
Merger Takeover/acquisition VIEW VIEW
Joint Venture (JV) VIEW VIEW
Strategic Alliance VIEW
Franchising and Slump sale VIEW
Unit 2 Accounting of Internal Reconstruction (Practical and theory) {Book}
Accounting of Internal Reconstruction VIEW VIEW
Need for Reconstruction and Company Law provisions VIEW
Distinction between Internal and External Reconstructions VIEW
Methods including alteration of Share capital, Variation of share-holder rights, Sub division, Consolidation, Surrender and reissue/Cancellation, Reduction of Share Capital, with relevant Legal provisions and Accounting treatments for same VIEW
Unit 3 Accounting of External Reconstruction (Amalgamation/ Mergers/ Takeovers and Absorption) (Practical and theory) {Book}
Accounting of External Reconstruction (Amalgamation/ Mergers/ Takeovers and Absorption) VIEW
In the nature of merger and purchase with corresponding accounting treatments of pooling of interests and purchase methods respectively VIEW
Computation and meaning of Purchase consideration and Problems based on Purchase method VIEW VIEW
Unit 4 Impact of Reorganization on the Company: An Introduction (Only Theory) {Book}
Change in the Internal Aspects on Reorganization: Change of Name and Logo, Revised Organization Chart, Communication, Employee Compensation, Benefits and Welfare Activities, Aligning Company Policies, Aligning Accounting and Internal Database Management Systems, Re-Visiting Internal Processes and Re-Allocation of People VIEW
Change in External Aspects on Reorganization: Engagement with Statutory Authorities, Revised ISO Certification and Similar Other Certifications, Revisiting past Government approvals, decisions and other contracts VIEW
Impact of Reorganization: Gain or Loss to Stakeholders, Implementation of Objectives, Integration of Businesses and Operations, Post Merger Success and Valuation and Impact on Human and Cultural Aspects VIEW

University of Mumbai BMS Notes

Financial Accounting University of Mumbai BMS 5th Sem Notes

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Unit 1 Preparation of Final Accounts of Companies {Book}
Relevant provision of Companies Act related to preparation of Final Accounts VIEW
Preparation of Financial statements as per Companies Act VIEW VIEW
AS1 in relation to final accounts of companies VIEW VIEW
Unit 2 Underwriting of Shares and Debentures{Book}
Underwriting VIEW VIEW
Underwriting of Shares, Debentures VIEW
Underwriting Commission, Provision of companies Act. with respect to Payment of underwriting commission VIEW
Underwriters, Sub-underwrites, Brokers and Managers to issues VIEW
Types of Underwriting, Abatement Clause VIEW
Market, Unmarked and Firm-underwriting applications VIEW
Liability of the underwriters in respect of underwriting contract VIEW
Unit 3 Accounting of Transactions of Foreign Currency {Book}
In Relation to purchase and Sale of goods, Services, assets loan and Credit transactions VIEW
Computation and Treatment of exchange rate Differences VIEW
Unit 4 Investment Accounting (w.r.t Accounting Standard-13) {Book}
Investment Accounting for Shares (Variable income bearing securities) VIEW
Investment Accounting for Debentures/Preference Shares (fixed income bearing securities) VIEW
Accounting for transactions of purchase and Sale of investments with ex and cum interest prices VIEW
Finding cost of investment sold and carrying cost as per weighted average method VIEW
Columnar format for investment Account VIEW
Unit 5 Ethical Behaviour and Implications for Accounts {Book}
Introduction, Meaning of Ethical Behaviour in Accounts VIEW
Financial Reports: Link between law, corporate governance, CSR and ethics VIEW
Need of ethical behavior in accounting profession VIEW
Implication of ethical values for the principles versus rule-based approaches to accounting Standards VIEW
The principle-based approach and ethics VIEW
The accounting standard setting process and ethics VIEW VIEW VIEW
The IFAC code of ethics for Professional Accountants VIEW
Contents of Research report in Ethical Practices VIEW
Implications of unethical behavior for financial reports VIEW
Company code of ethics VIEW VIEW VIEW
The increasing role of Whistle-Blowing VIEW

 

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University of Mumbai BMS Notes

Strategic Marketing Management University of Mumbai BMS 5th Sem Notes

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Unit 1 Introduction to Strategic Marketing Management {Book}
Marketing: Nature of Marketing, marketing as an art, Science and Business discipline VIEW
Marketing as a Value Creation process VIEW
Strategic Decisions: Nature of Strategy, The Marketing Strategy interface VIEW
Difference between Marketing planning and Strategic planning VIEW
Identifying the market: The five C Framework: Customer, Company, Collaborator, Competitor, Context VIEW
The 7 tactics of Marketing mix: Product, Service, Brand, Price, Incentives, Communication and Distribution VIEW
Business Model and Strategic Marketing Planning VIEW
Role of Business models in marketing management VIEW
Strategies for Developing a Business Model: Top-down Business Model generation, Bottom-up Business Model Generation VIEW
The G-STIC frame work for marketing planning: Goal-Strategy-Tactics-Implementation-control VIEW

 

Unit 2 Segmenting, Targeting, Positioning and Creation of Value in the context of Strategic Marketing: {Book}
Segmentation: Essence of segmentation VIEW
Factors to be considered while Segmenting VIEW VIEW
Key Segmenting Principles: Relevance, Similarity, Exclusivity VIEW
Identifying Target Customers VIEW VIEW
Factors to be Considered while Targeting VIEW
Targeting Strategies: One for all strategy, one for each strategy VIEW
Strategic Targeting Criteria: Target Attractiveness, Target Compatibility VIEW
Essential Strategic assets for Target compatibility: Business infrastructure, Collaborator networks, Human capital, intellectual property, Strong brands, established customer base, synergistic offerings, access to scarce resources and capital VIEW
Creating Customer Value through Positioning VIEW
Role of Strategic positioning VIEW
Strategic Positioning options: The Quality option, Value option, The Pioneer, A Narrow Product focus, Target Segment Focus VIEW
Strategies for Creating Superior customer value VIEW
Creating Company Value: Understanding Company Value: Monetary, functional and psychological value VIEW
Strategically managing profits: Increasing sales revenue-through volume, optimizing price, Lowering costs VIEW
Creating Collaboration Value: Meaning of Collaborators, Collaboration as Business process, Advantages and Drawbacks of Collaboration VIEW
Levels of Strategic Collaboration: Explicit, Implicit VIEW
Alternatives to Collaboration: Horizontal and Vertical integration, Managing collaborator relations VIEW
Gaining Collaborator power: Offering Differentiation; Collaborator size, Strategic importance, Switching costs VIEW
University of Mumbai BMS Notes

International Finance University of Mumbai BMS 6th Sem Notes

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Unit 1 Fundamentals of International Finance {Book}
a) Introduction to International Finance:
Meaning/ Importance of International Finance, Scope of International Finance VIEW
Globalization of the World Economy, Goals of International Finance, The Emerging Challenges in International Finance VIEW
b) Balance of Payment:
Introduction to Balance of Payment, Accounting Principles in Balance of Payment VIEW
Components of Balance of Payments, Balance of Payment Identity VIEW
Indian Heritage in Business, Management, Production and Consumption VIEW
c) International Monetary Systems:
Evolution of International Monetary System, Gold Standard System, Bretton Woods System VIEW
Flexible Exchange Rate Regimes; 1973 to Present VIEW VIEW
Current Exchange Rate Arrangements VIEW
European Monetary System VIEW
Fixed & Flexible Exchange Rate System VIEW
d) An introduction to Exchange Rates: Foreign Bank Note Market VIEW
Spot Foreign Exchange Market VIEW
Exchange Rate Quotations, Direct & Indirect Rates, Spread & Spread VIEW
Cross Currency Rates VIEW
Factors Affecting Exchange Rates VIEW

 

Unit 2 Foreign Exchange Markets, Exchange Rate Determination & Currency Derivatives {Book}
a) Foreign Exchange Markets:
Introduction to Foreign Exchange Markets VIEW
Structure of Foreign Exchange Markets, Types of Transactions & Settlement Date VIEW
Exchange Rate Quotations & VIEW
Exchange Rate Arbitrage VIEW VIEW
Forward Quotations (Annualized Forward Margin) VIEW
b) International Parity Relationships & Foreign Exchange Rate:
Interest Rate Parity VIEW
Purchasing Power Parity VIEW
Fishers Parity VIEW VIEW
Forecasting Exchange Rates (Efficient Market Approach, Fundamental Approach, Technical Approach, Performance of the Forecasters) VIEW
Global Financial Markets & Interest Rates VIEW
Domestic & Offshore Markets VIEW
Money Market Instruments VIEW VIEW
c) Currency & Interest Rate Futures:
Introduction to Currency Options (Option on Spot, Futures & Futures Style Options) VIEW
Futures Contracts, Markets & the Trading Process VIEW VIEW
Hedging & Speculation with Interest Rate Futures VIEW VIEW
Currency Options in India VIEW

 

Unit 3 World Financial Markets & Institutions & Risks {Book}
a) Euro Currency Bond Markets:
Introduction to Euro Currency Market, Origin of Euro Currency Market, VIEW
Euro Bond Market (Deposit, Loan, Notes Market), Types of Euro Bonds VIEW
Innovation in the Euro Bond Markets, Competitive Advantages of Euro Banks VIEW
Control & Regulation of Euro Bond Market VIEW
b) International Equity Markets & Investments:
Introduction to International Equity Market, International Equity Market Benchmarks VIEW
Risk & Return from Foreign Equity Investments VIEW
Equity Financing in the International Markets, Depository Receipts; ADR, GDR, IDR VIEW
c) International Foreign Exchange Markets:
Meaning of International Foreign Exchange Market VIEW
FERA v/s FEMA VIEW
Scope & Significance of Foreign Exchange Markets VIEW
Role of Forex Manager, FDI v/s FPI, Role of FEDAI in Foreign Exchange Market VIEW
d) International Capital Budgeting:
Meaning of International Capital Budgeting, Capital Budgeting Decisions, VIEW
Incremental Cash Flows VIEW
Cash Flows at Subsidiary and Parent Company VIEW VIEW
Repatriation of Profits VIEW
Capital Budgeting Techniques:
Payback Period VIEW
Accounting Rate of Return VIEW
Internal Rate of Return VIEW
NPV VIEW

 

Unit 4 Foreign Exchange Risk, Appraisal & Tax Management {Book}
a) Foreign Exchange Risk Management:
Introduction to Foreign Exchange Risk Management, Types of Risk, Trade & Exchange Risk VIEW
Portfolio Management in Foreign Assets VIEW
Arbitrage VIEW VIEW VIEW
Speculation VIEW VIEW VIEW
b) International Tax Environment:
Meaning of International Tax Environment, Objectives of Taxation, Types of Taxation VIEW
Benefits towards Parties doing Business Internationally VIEW
Tax Havens, Tax Liabilities VIEW
c) International Project Appraisal:
Meaning of International Project Appraisal VIEW
Review of Net Present Value Approach (NPV) VIEW
Option Approach to Project Appraisal VIEW
Project Appraisal in the International Context VIEW
Practice of Investment Appraisal VIEW

 

University of Mumbai BMS Notes

Project Management University of Mumbai BMS 6th Sem Notes

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Unit 1 Introduction to Project Management & Project Initiation {Book}
a) Introduction to Project Management:
Meaning/Definition of Project & Project Management, Classification of Projects VIEW
Why Project Management VIEW
Characteristics/Importance of Project Management VIEW
Need for Project Management (Objectives), History of Project Management VIEW
b) Organizational Structure (Project Organization):
Meaning/Definition of Project Organizational Structure, Types of Organizational Structure VIEW
Organizational Work Flow, Developing Work Integration Positions VIEW
Forms of Organization VIEW
Strategic Business Units (SBU) in Project Management VIEW
c) Project Initiation: VIEW
Project Selection, Meaning of Project Selection, Importance VIEW
Criteria for Project Selection (Models), Types of Project Selection VIEW
Understanding Risk & Uncertainty in Project Selection VIEW
Project Manager: Meaning of Project Manager, Role of Project Manager, Importance of Project Manager VIEW
Role of Consultants in Project Management, Selecting Criteria for Project Manager VIEW
Project Planning, Importance of Project Planning, Functions of Project Planning, System Integration VIEW
Project Management Life Cycle VIEW
Conflicts & Negotiation Handling in Project Management VIEW
Planning Cycle & Master Production Scheduling VIEW

 

Unit 2 Analyzing Project Feasibility {Book}
a) Project Feasibility Analysis: Meaning/Definition of Project Feasibility, Importance of Project Feasibility, Scope of Project Feasibility VIEW
Types of Project Feasibility: Market Feasibility, Technical Feasibility, Financial Feasibility, Economic Viability, Operational Feasibility VIEW
SWOT Analysis (Environment Impact Assessment, Social Cost Benefit Analysis) VIEW
b) Market Analysis: Meaning of Market Analysis VIEW
Demand Forecasting VIEW
Product Mix Analysis, Customer Requirement Analysis VIEW
c) Technical Analysis: Meaning of Technical Analysis, Use of Various Informational Tools for Analyzing, Advancement in the Era of e-Commerce in Project Management VIEW
d) Operational Analysis: Meaning of Operation Management, Importance of Operation Management VIEW
Operation Strategy; Levels of Decisions VIEW
Production Planning VIEW VIEW
Production Control VIEW
Material Management VIEW
Work Study & Method Study VIEW
Lean Operations VIEW

 

Unit 3 Budgeting, Cost & Risk Estimation in Project Management {Book}
a) Funds Estimation in Project: Means of Financing, Types of Financing, Sources of Finance VIEW
Government Assistance towards Project Management for Startups VIEW
Cost Control (Operating Cycle, Budgets & Allocations) VIEW
Determining Financial Needs for Projects, Impact of Leveraging on Cost of Finance VIEW
b) Risk Management in Projects: What is Risk, Types of Risk in Projects, Risk Management Process, Risk Analysis & Identification VIEW
Impact of Risk Handling Measures, Work break Down Structure VIEW
New Venture Valuation (Asset Based, Earnings Based, Discounted Cash flow Models) VIEW
c) Cost Benefit Analysis in Projects:
Introduction to Cost Benefit Analysis in Projects, Efficient Investment Analysis VIEW
Cash-Flow Projections VIEW
Financial Criteria for Capital Allocation, Strategic Investment Decisions VIEW

 

Unit 4 New Dimensions in Project Management {Book}
a) Modern Development in Project Management: Introduction to Modern Development in Project Management, VIEW
Project Management Maturity Model (PMMM) VIEW
Continuous Improvement VIEW
Developing Effective Procedural Documentation VIEW
Capacity Planning VIEW
b) Project Monitoring & Controlling:
Introduction to Project Monitoring & Controlling, The Planning, Monitoring, Controlling Cycle VIEW
Computerized Project Management Information System (PMIS) VIEW
Balance in Control System in Project Management VIEW
Project Auditing; Life Cycle VIEW
c) Project Termination & Solving Project Management Problems:
Meaning of Project Termination, Reasons for Termination of Projects, Process for Terminating Projects VIEW
Strategy/ Ways to Solve Project Management Problems VIEW
Project Review & Administrative Aspects VIEW
Execution Tools for Closing of Projects VIEW

 

University of Mumbai BMS Notes

Indian Ethos in Management University of Mumbai BMS 6th Sem Notes

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Unit 1 Indian Ethos: An Overview {Book}
a) Indian Ethos
Meaning, Features, Need, Relevance, History, Principles practiced by Indian Companies VIEW
Requisites, Elements, Role of Indian Ethos in Managerial Practices VIEW
b) Management Lessons from Scriptures:
**Management Lessons from Bhagavad Gita VIEW
**Management Lessons from Quran Ramayana VIEW
Management Lessons from Vedas VIEW
Management Lessons from Mahabharata VIEW
Management Lessons from Bible VIEW
Management Lessons from Quran VIEW
Management Lessons from Kautilya’s Arthashastra VIEW
Indian Heritage in Business, Management, Production and Consumption VIEW
Ethics v/s Ethos VIEW
Indian Management v/s Western Management VIEW

 

Unit 2 Work Ethos and Values {Book}
a) Work Ethos: Meaning, Levels, Dimensions, Steps VIEW
Factors Responsible for Poor Work Ethos VIEW
b) Values:
Meaning, Features, Values for Indian Managers VIEW
Relevance of Value Based Management in Global Change VIEW
Impact of Values on Stakeholders: Employees, Customers, Government, Competitors and Society VIEW
Values for Managers VIEW
Trans-Cultural Human Values in Management and Management Education VIEW
Secular v/s Spiritual Values in Management VIEW
Importance of Value System in Work Culture VIEW

 

Unit 3 Stress Management {Book}
a) Stress Management Meaning VIEW
Types of Stress at Work VIEW VIEW
Causes of Stress VIEW VIEW
Consequences of Stress VIEW
b) Stress Management Techniques: VIEW
Meditation Meaning, Techniques, Advantages VIEW
Mental Health and its Importance in Management VIEW
Brain Storming, Brain Stilling VIEW
Yoga Meaning, Significance VIEW VIEW
c) Leadership Meaning VIEW
Contemporary Approaches to Leadership VIEW VIEW
Joint Hindu Family Business VIEW
Leadership Qualities of Karta VIEW
d) Motivation Meaning, Techniques VIEW VIEW
Indian Approach to Motivation VIEW

 

Unit 4 Indian Systems of Learning {Book}
a) Learning Meaning, Mechanisms VIEW VIEW
Gurukul System of Learning: Meaning, Features, Advantages, Disadvantages VIEW
Modern System of Learning Meanings, Features, Advantages, Disadvantages VIEW
Karma Meaning, Importance of Karma to Managers, Nishkama Karma VIEW
Laws of Karma The Great Law, Law of Creation, Law of Humility, Law of Growth, Law of Responsibility, Law of Connection VIEW
Corporate Karma Meaning, Methodology, Guidelines for good Corporate Karma VIEW
Self-Management Personal growth and Lessons from Ancient Indian Education System VIEW
Personality Development Meaning, Determinants VIEW
Indian Ethos and Personality Development VIEW

 

Management Notes

Management Information System (MIS) Concept, Types, Process, Advantages and Disadvantages

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A management information system (MIS) is an information system used for decision-making, and for the coordination, control, analysis, and visualization of information in an organization.

The study of the management information systems testing people, processes and technology in an organizational context.

Management Information Systems (MIS) refer to the integration of information technology, individuals, and business procedures to capture, store, and process data with the objective of generating valuable insights for day-to-day decision-making. By extracting data from diverse sources, MIS facilitates the production of information that empowers decision-makers and fuels business growth.

  • Need for Management Information Systems (MIS)

Management Information Systems (MIS) play a vital role in enabling decision-makers to access essential information for making effective choices. These systems also facilitate seamless communication within and outside the organization. Internally, employees can readily access the necessary information for day-to-day operations, while externally, communication with customers and suppliers is streamlined through features like Short Message Service (SMS) and Email integrated within the MIS system.

Additionally, MIS systems serve as comprehensive record-keeping tools, meticulously capturing all business transactions of an organization. They act as a reliable reference point, providing a historical record and valuable insights into past activities and financial dealings.

Components of Management Information Systems (MIS):

  1. People: The users who interact with the information system, including employees and managers.
  2. Data: The recorded information that the system processes and stores, such as transaction data and business records.
  3. Business Procedures: The set of established procedures and guidelines for data recording, storage, and analysis within the system.
  4. Hardware: The physical components that make up the system, including servers, workstations, networking equipment, and printers.
  5. Software: The programs and applications used to manage and handle the data, such as spreadsheet software and database systems.

Types of Information Systems

 

  1. Transaction Processing Systems (TPS): Used to record and manage day-to-day business transactions. An example is a Point of Sale (POS) system, which tracks daily sales.
  2. Management Information Systems (MIS): These systems guide middle-level managers in making semi-structured decisions. They use data from the Transaction Processing System as input.
  3. Decision Support Systems (DSS): Utilized by top-level managers for semi-structured decision-making. DSS systems receive data from the Management Information System and external sources like market forces and competitors.

Process of Management Information System (MIS):

  1. Data Collection:
  • Source of Data: MIS collects data from various sources, including internal databases, external sources, and manual inputs.
  • Methods: Data may be collected through automated systems, surveys, or direct inputs.
  1. Data Processing:
  • Transformation: Raw data is processed and transformed into meaningful information.
  • Analysis: MIS conducts data analysis to derive insights and trends.
  • Normalization: Data is organized and normalized for consistency.
  1. Information Storage:
  • Database: Processed information is stored in databases or data warehouses.
  • Structured Storage: MIS organizes data in a structured manner for easy retrieval.
  1. Information Retrieval:
  • Querying: Users can query the MIS for specific information.
  • Reporting: MIS generates reports, dashboards, and summaries based on user needs.
  1. Information Dissemination:
  • Distribution: MIS distributes information to relevant users and stakeholders.
  • Presentation: Information is presented in a user-friendly format, such as charts or graphs.
  1. Decision Support:
  • Analysis Tools: MIS provides decision support tools for managers.
  • Scenario Analysis: Managers can use MIS for scenario analysis and planning.
  1. Feedback Mechanism:
  • Monitoring: MIS monitors the implementation of decisions.
  • Feedback Loop: MIS establishes a feedback loop for continuous improvement.

Advantages of Management Information System (MIS):

  1. Improved Decision-Making:

  • Access to Information: MIS provides timely and accurate information for decision-making.
  • Informed Choices: Managers can make well-informed decisions based on real-time data.

  1. Enhanced Efficiency:

  • Automation: MIS automates routine tasks, reducing manual effort.
  • Streamlined Processes: Efficiency is improved through streamlined workflows.

  1. Strategic Planning:

  • Long-Term Insights: MIS supports strategic planning with historical data and trend analysis.
  • Goal Alignment: Strategic goals can be aligned with available resources and capabilities.

  1. Better Communication:

  • Centralized Information: MIS centralizes information, facilitating communication across departments.
  • Collaboration: Improved communication enhances collaboration among team members.

  1. Resource Optimization:

  • Resource Allocation: MIS assists in optimal resource allocation.
  • Cost Reduction: Identifying inefficiencies leads to cost reduction.

  1. Competitive Advantage:

  • Market Intelligence: MIS provides insights into market trends and competitor activities.
  • Adaptability: Organizations can adapt quickly to changing market conditions.

  1. Data Accuracy and Integrity:

  • Validation: MIS ensures data accuracy through validation processes.
  • Integrity: The system maintains data integrity, preventing inconsistencies.

  1. Performance Monitoring:

  • KPIs and Metrics: MIS monitors key performance indicators (KPIs) and metrics.
  • Continuous Improvement: Regular performance monitoring facilitates continuous improvement.

Disadvantages of Management Information System (MIS):

  1. Implementation Costs:

  • Initial Investment: Setting up an MIS involves significant initial costs.
  • Maintenance Expenses: Ongoing maintenance and updates add to the costs.

  1. Complex Implementation:

  • Technical Expertise: Implementation requires skilled IT professionals.
  • Integration Challenges: Integrating MIS with existing systems can be complex.

  1. Security Concerns:

  • Data Vulnerability: MIS poses security risks, with sensitive data being vulnerable.
  • Unauthorized Access: The risk of unauthorized access and data breaches exists.

  1. Resistance to Change:

  • Employee Resistance: Employees may resist adopting new processes.
  • Training Needs: Training is required for employees to adapt to the new system.

  1. Dependency on Technology:

  • Technical Issues: Dependency on technology exposes the system to technical glitches.
  • Downtime Impact: System downtime can disrupt operations.

  1. Overemphasis on Data:

  • Data Overload: Too much data can lead to information overload.
  • Relevance Issues: Not all data may be relevant to decision-makers.

  1. Lack of Customization:

  • Generic Solutions: Some MIS solutions may offer generic features, limiting customization.
  • Business Specificity: Tailoring MIS to specific business needs may be challenging.

  1. Ethical Concerns:

  • Privacy Issues: MIS may raise concerns about employee privacy.
  • Ethical Use: Ethical considerations in data collection and utilization.

Management Information System Role in Decision making process

  1. Data Collection and Processing:

  • Role of MIS:
    • Gathers data from various sources, both internal and external.
    • Processes raw data into meaningful information through sorting, summarizing, and analyzing.
  • Impact on Decision Making:
    • Decision-makers have access to comprehensive and organized data.
    • Raw data is transformed into actionable insights for informed decision-making.

  1. Information Accessibility:

  • Role of MIS:
    • Centralizes information, making it easily accessible to authorized users.
    • Utilizes user-friendly interfaces for querying and retrieving information.
  • Impact on Decision Making:
    • Managers can quickly access the information they need.
    • Reduces the time and effort required to gather relevant data for decision-making.

  1. Decision Support Tools:

  • Role of MIS:
    • Provides decision support tools such as reports, dashboards, and data visualization.
    • Facilitates ad-hoc querying and analysis for specific decision needs.
  • Impact on Decision Making:
    • Decision-makers can visually interpret complex data.
    • Supports data-driven decision-making through interactive tools.

  1. Strategic Planning Support:

  • Role of MIS:
    • Offers historical data and trend analysis for strategic planning.
    • Aligns organizational goals with available resources through data insights.
  • Impact on Decision Making:
    • Enables strategic decisions based on long-term trends.
    • Assists in setting realistic goals and objectives.
  1. Monitoring Key Performance Indicators (KPIs):
  • Role of MIS:
    • Tracks and monitors key performance indicators relevant to organizational objectives.
    • Generates performance reports and alerts.
  • Impact on Decision Making:
    • Decision-makers can assess the success of current strategies.
    • Allows for adjustments based on real-time performance data.

  1. Operational Efficiency:

  • Role of MIS:
    • Identifies operational bottlenecks and inefficiencies.
    • Automates routine tasks, reducing manual effort.
  • Impact on Decision Making:
    • Supports decisions aimed at improving operational processes.
    • Enhances overall organizational efficiency.

  1. Forecasting and Predictive Analysis:

  • Role of MIS:
    • Utilizes data trends and patterns for forecasting.
    • Integrates predictive analytics to anticipate future outcomes.
  • Impact on Decision Making:
    • Helps in making proactive decisions based on anticipated trends.
    • Reduces reliance on reactive decision-making.

  1. Collaboration and Communication:

  • Role of MIS:
    • Facilitates communication and collaboration among team members.
    • Enables sharing of information and reports.
  • Impact on Decision Making:
    • Improves communication channels for decision-making teams.
    • Encourages collaborative decision-making processes.

  1. Risk Management:

  • Role of MIS:
    • Identifies and assesses potential risks through data analysis.
    • Offers scenario analysis for risk evaluation.
  • Impact on Decision Making:
    • Assists in making risk-informed decisions.
    • Allows for the formulation of risk mitigation strategies.

  1. Feedback Mechanism:

  • Role of MIS:
    • Establishes a feedback loop for continuous improvement.
    • Monitors the implementation of decisions.
  • Impact on Decision Making:
    • Decision-makers receive feedback on the effectiveness of their decisions.
    • Supports a dynamic and adaptive decision-making process.
Management Notes

Role of Management Information System (MIS)

indiafreenotesby indiafreenotes1

Simply MIS stand For Management Information System. For Simply Understanding Management Information System (MIS) we can divide in to three Word and Understand Part by part

  • Management: “Management is function to do the work at the Right time, by the right Person, For the Right Job.”
  • Information: “Information is the Collection of Organized data which plays a Vital Role for decision making.”
  • System: “System Consist for a set of elements which Provides a Framework to convert Unorganized (Data) into Organized Information.”

Role of Management Information System

Management information system (MIS) has become Very Necessary due to Emergence of high complexity in Business Organization. It is all to know that without information no Organization can take even one step properly regarding the decision making process. Because it is matter of fact that in an organization decision plays an essential role for the achievement of its objectives and we know that every decision is based upon information. If gathered information are irrelevant than decision will also incorrect and Organization may face big loss & lots of Difficulties in Surviving as well.

  1. Helps in Decision making

Management Information System (MIS) plays a significant Role in Decision making Process of any Organization. Because in Any organization decision is made on the basis of relevant Information and relevant information can only be Retrieving from the MIS.

  1. Helps in Coordination among the Department

Management information System is also help in establishing a sound Relationship among the every persons of department to department through proper exchanging of Information’s.

  1. Helps in Finding out Problems

As we know that MIS provides relevant information about the every aspect of activities. Hence, If any mistake is made by the management then Management Information Systems (MIS) Information helps in Finding out the Solution of that Problem.

  1. Helps in Comparison of Business Performance

MIS store all Past Data and information in its Database. That why management information system is very useful to compare Business organization Performance. With the help of Management information system (MIS) Organization can analyze his Performance means whatever they do last year or Previous Years and whatever business performance in this year and also measures organization Development and Growth.

Components

A Management Information System (MIS) comprises five key components – people, business processes, data, hardware, and software. These components work collaboratively to achieve the organization’s objectives and ensure smooth operations.

People:

Users of the information system, such as accountants, human resource managers, etc., record day-to-day business transactions. The ICT department supports these users, ensuring the system’s proper functioning.

Business Procedures:

Agreed-upon best practices that guide users and other components in working efficiently. These procedures are developed by various stakeholders, including users and consultants.

Data:

Recorded day-to-day business transactions, collected from various activities like deposits and withdrawals for a bank.

Hardware:

The physical equipment like computers, printers, and networking devices that provide computing power for data processing, as well as networking and printing capabilities. Hardware accelerates the transformation of data into valuable information.

Software:

Programs that run on the hardware. Software is divided into system software (e.g., operating systems like Windows, Mac OS, Ubuntu) and applications software (e.g., Payroll program, banking system, point of sale system) that facilitate specific business tasks.

In an MIS, these components form an interconnected ecosystem, with people using business procedures to interact with and record data. The hardware, along with the software, processes this data, transforming it into meaningful information accessible to users. The effective collaboration of all these components ensures the MIS serves its purpose, providing valuable insights for decision-making and supporting business operations.

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