A Company secretary is a high-level officer. He enjoys certain rights and power as per the contract made with the company, which are as follows:
(i) Supervision and Control: As a head of the office, a company secretary has the rights to supervise, direct and control all office activities of subordinate offices.
(ii) Singing authority: Being a principal officer, a company secretary can sign. contracts, proceedings of the company meeting, files and documents on behalf of the company.
(iii) Exercising power: He has the right to exercise powers as granted by a board of directors.
(iv) Issuing testimonial: A company secretary can issue testimonials to employees on behalf of the company.
(v) Claiming salary and damages: As per the contract, he has the right to claim his salary and other allowances. He can also take legal action against the company if there is any breach of contract.
(vi) Preferential creditor: During winding up of a company, the company secretary can claim his legal dues on a preferential basis.
(vii) Attending a meeting: He has the right to be physically present in the meetings of the shareholders and board of directors.

Secretary has to discharge non-statutory functions in relation to directors, shareholders and office and staff. These functions are briefly mentioned.
(a) Functions as an agent of directors;
(b Functions towards shareholders;
(c) Functions towards office and staff.
(i) Functions in Relation to Directors: A company secretary acts under the full control of the board of directors and carries out the instructions of the directors. The secretary provides necessary advice and information to the board to formulate company policy and arrive at decisions.
(ii) Functions in Relation to Shareholders: The company secretary must serve in the best interests of the shareholders.
(iii) Functions in Relation to Office and Staff: The Secretary is the kingpin of the whole corporate machinery. He is responsible for the smooth functioning of the office work. He exercises overall supervision, control, and coordination of all clerical activities in the office.

General provisions relating to the appointment of directors
(i) Every director should be appointed by the company in general meeting as per the provision of the Act.
(ii) Director Identification Number is compulsory for the appointment of a director of a company.
(iii) Every person proposed to be appointed as a director shall furnish his Director Identification Number and a declaration that he is not disqualified to become a director under the Act.
(iv) A person appointed as a director should give his consent to hold the office of director in physical form on or before his appointment i.e., Consent to act as a director of a company.
(v) A company should file Form with the Registrar of Companies mentioning particulars of appointment of directors and Key Managerial Persons along with A the Consent form signed by Directors, as an attachment within 30 days of the appointment of a director with necessary fee.
(vi) Articles of the Company may provide the provisions relating to the retirement of all directors.

Directors are the persons duly appointed by the Company to lead and manage its affairs and their legal position.
(i) Directors as Agents: A company as an artificial person, acts through directors who are elected representatives of the shareholders and who execute decision made for the benefit of shareholders. Hence directors share a relationship of an agent and a principal with the company.
(ii) Directors as Managing partners: The management of a company is vested in the hands of many executives. So, the directors are virtuals managing partners and the Directors elected by shareholders are like partners to the shareholders.
(iii) Directors as trustees: Directors are trustees of the company's money and property and they have to safeguard them and use them for the sake of the company and on behalf of the company.
(iv) Directors as employees: Directors are professionals who manage the company for the benefit of themselves and for the benefit of the shareholders. However, if a director accepts employment in the same company under a separate contract of service, then, in addition to the directorship, he is also treated as an employee or servant of the company.
(v) Directors as officers: "Officer" includes any director, manager or key managerial personnel or any person in accordance with the directions or instructions the Board of Directors or any one or more of the directors who are or are accustomed to act. Therefore Director is treated as officers of a company.

(i) It is issued by the Company in the form of a certificate under the common seal.
(ii) It is movable property
(iii) Debenture holders are the creditors of the company
(iv) Debentures carry a fixed rate of interest.
(v) A debenture is redeemed after a fixed period of time.
(vi) Debentures may be either secured or unsecured.
(vii) Interest payable on a debenture is a charge against profit and hence it is a tax deductible expenditure.
(viii) Debenture holders do not enjoy any voting right.
(ix) Interest on debenture is payable even if there is a loss.

The earliest business associations in England were the "Merchant Guilds". Some of the merchant Associations or guilds who have regulated the companies.
(i) A Royal Charter established the East India Company in the year 1600.
(ii) In England, the Joint Stock Companies Act was passed for the first time in 1844.
(iii) In the year 1850, taking the English Joint Stock Companies Act 1844 as a base, a provision was made for registration of joint stock companies in India.
(iv) The Joint Stock Companies Act was passed in India by introducing the concept of limited liability in the year 1857.
(v) In 1913, the Indian Companies Act of 1913 was passed. The Act introduces the institution of private companies in the corporate sector in India. After Independence. Based on the recommendation of the Shri. H. C. Baba committee in 1950 and the provisions of the English Companies Act 1948, the Companies Act 1956 was introduced in the parliament.

Successful Entrepreneurs in Tamilnadu:
(i) G. Chandramogan Sold his father's agricultural land to mobilize funds for. starting ice cream enterprise in Tamilnadu known as 'Arun Ice-cream' which has emerged as one of the top-notch dairy companies in India.
(ii) Mr. T.V Sundarm Iyengar who started his career as a lawyer shifted his job to Indian railways in the later years and then further shifted to bank Then he started bus service company on his own A in Madurai before nationalization of transport service in Tamilnadu. Now the enterprise has diversified into producing a variety of automobile products under the banner TVS group.
(iii) Mr. Murugappa ChettIar started his career as an apprentice in Burma when it was under the British Colonisation. He returned to India and started his business in diversified fields. Murugappa has transformed his family business into a corporate enterprise.
(iv) Mr. K.R. Nagarajan made a foray into the textile industry, Tirupur was hailed as the 'dollar city' and an undisputed business center. Mr. K .R. Nagarajan chose the road less traveled. His focus was not on the hefty bottom line but on progress and growth for the poor village weaver. Eighteen years of networking with dealers across the length and breadth of South India have ensured Ramraj's leadership in this part of the world.
(v) Mr. N. Natarajan began his entrepreneurial journey with a fruit shop in Coimbatore that he started with his brother in 1965. 'Kovai Pazhamudir Nilayam, a Coimbatore based 40 outlets strong fruit and vegetable retail chain that achieved a combined turnover of Rs.220 crore this year. The retail chain now has 56 outlets spread all over Tamil Nadu and Pondicherry, of which the other brothers operate between them 9 outlets located in different parts of Tamil Nadu.

(i) Pure Entrepreneur:
(a) Pure entrepreneurs are individuals who are propelled to enter into the venture by psychological and economic motives.
(b) They apply their knowledge, skill, and insight in making the venture a great success in order to earn maximum profit out of the venture.
(ii) Induced Entrepreneur:
(a) An induced entrepreneur is one who is inspired to take up entrepreneurial activity thanks to entrepreneurship-friendly policies put in place by the Government.
(b) The government provides a great deal of support in the form of loans, subsidies, the nominal rate of interest, tax breaks, tax holidays, training, import of technology from abroad, concessions for the export-oriented item, allotment of sheds, and lands at subsidised price etc.
(iii) Motivated Entrepreneur:
(a) Motivated entrepreneurs are those motivated to take up venture by the desire for self-fulfilment.
(b) They are motivated to produce and market product or service by the sheer prospect of making a huge profit.
(iv) Spontaneous Entrepreneur:
(a) These entrepreneurs have natural inclination to start a venture.
(b) They are supposed to be bold, optimistic and enterprising persons. They have a passion for meeting the challenges.

1. It increases chances new talents and skills.
2. It would create a healthy competition among the employees.
3. The new employees wotild be existing employee of some other organisation. It will be in ideas of other industries.
4. It would avoid the problem between the existing employees.
5. This increased chance provides better availability of skilled and qualified employee.
6. One common things they look for is a well experienced and qualified candidate.
7. The recruitment is done in a fair manner equally for all candidates where internal politics are avoided

(i) Employee referral: The existing employees of the organisation may recommend some of their relatives or known people who will be suitable for the existing vacancies.
(ii) Government/Public Employment Exchanges: These are exchanges established by Government which facilitates recruitment throughout the country.
(iii) Private Employment Agencies: These are similar to Public employment exchanges except that the ownership is the hands of private parties.
(iv) Employment consultancies: These types of firms facilitate recruitment on behalf of client companies at cost.
(v) Professional associations: Organisations seeking applicants of high calibre and repute with technical knowledge approach professional associations like Institute of chartered accountants, The Indian Medial association and All India Management Association etc.
(vi) Deputation: A person who is already an employee of an organisation can be deputed for a specific job for a specified period as a short term solutions.
(vii) Labour contractors: Organisations recruit unskilled and manual labourers through these contractors.

Managerial Functions
(i) Planning: Under planning, the entrepreneur has to lay down the objectives, goals, vision, mission, policies, procedures, programs, budget, schedules, etc., for enabling the venture to proceed towards established destinations.
(ii) Organizing: Entrepreneur puts in place suitable organizational structure to perform various managerial functions namely choosing the type of organization, creating department, fitting the human resources to appropriate organization slots, defining and delegating authority, distributing responsibility and creating accountability for the efficient performance of activities.
(iii) Directing: The process of directing involves issuing orders and instructions, guiding, counseling and mentoring of employees, supervising employees, maintaining discipline, motivating employees and providing leadership.
(iv) Controlling: The various steps involved in control function includes fixing performance standards, measuring the actual performance, comparing actual performance with standards, finding out causes for deviation if any, undertaking corrective measures to bring actual performance to standards set.
(v) Coordination: Entrepreneur has to evolve a mechanism to pull together the diverse functions performed by various departments or teams and direct them towards the established goals of the organization for accomplishment.

The following points highlight the significance of entrepreneurship.
(i) Innovation: Entrepreneurship and innovation are closely intertwined with each other. Entrepreneurs have contributed in no small measure to the economic development of any country by innovation.
(ii) Contribution to Gross Domestic Product (GDP): Promotion of entrepreneurship all across the country would undoubtedly add to Gross Domestic Product and National Income of a country. It is stated that the countries like America, Japan, Germany and so on have recorded a phenomenal increase in the GDP, per capita income and national income, due to the stupendous growth of entrepreneurship.
(iii) Balanced Regional Development: Encouragement of entrepreneurship in underdeveloped and undeveloped regions of a country through various incentives and concessions is more likely to promote balanced regional development across the country.
(iv) Export Promotion: Entrepreneurship helps a country not only earn precious foreign exchange but also preserve it. Similarly, if entrepreneurship is encouraged to produce products which are usually imported from foreign countries i.e. import substitute goods, it can help the country save precious foreign exchange.
(v) Full utilisation of Latent Resources: Promotion of entrepreneurship across the country leads to better utilisation of economic, human, material and natural resources which would remain otherwise unutilized in a country.

The following are the characteristics of human resource management:
(i) Universally relevant: Human Resource Management has universal relevance. The approach. and style varies depending the nature of organisation structure and is applicable at all level.
(ii) Goal oriented: The accomplishment of organisational goals is made possible through best utilisation of human resource in an organisation.
(iii) A systematic approach: Human resource management lays emphasis on a systematic approach in managing the tasks performed by human resource of an organisation. The two sets of functions performed are managerial and operative functions.
(iv) It is all pervasive: Wherever there is existence of human resource the effective management of the available human resource is very important especially in functional areas.
(v) It is a continuous process: As long as there is human resource in the running of an organisation, the activities relating to managing human resource exists.
(vi) It is an integrative tool: The main idea behind managing the human resource is to motivate, participate and coordinate the available work force.
(vii) Focuses on development: Human resource management focuses on the development of manpower through training and development programmes.

The vital resource namely human resource is Significant because of the following reasons:
(i) It is only through human resource all other resources are effectively used.
(ii) The sustainable growth of an organisation depends on the important resource called human resource.
(iii) Industrial relations depend on human resource.
(iv) Human relations is possible only through human resource.
(v) Human resource manages all other factors of production.
(vi) The skill sets of the human resources can be improved through training and development programmes.
(vii) Human resource can be utilised at all levels of management.
(viii) Human resources are well protected by legislative frame works.

(i) Regulation of Stock Exchanges
The first objective of SEBI is to regulate stock exchanges so that efficient services may be provided to all the parties operating there.
(ii) Protection to the Investors
(a) The capital market is meaningless in the absence of the investors.
(b) The protection of the interests of the investors means protecting them from the wrong information given by the companies in their prospectus, reducing the risk of delivery and payment, etc.
(iii) Checking the Insider Trading
(a) Insider trading means the buying and selling of securities by directors Promoters, etc.
(b) Who have access to some confidential information about the company and who wish to take advantage of this confidential information.
(c) This affects the interests of the general investors and is essential to check this tendency.
(iv) Control over Brokers
(a) It is important to supervise/ check the activities of the brokers and other middlemen in order to control the capital market.
(b) To regulate their activities, it was necessary to establish the SEBI.

(i) Bearer Instrument: Promissory Note, Bill of Exchange or cheque is payable to bearer is called bearer instrument subject to fulfilment of either of the two conditions:
(1) It must be expressed to be payable
(2) The only or last endorsement should be a blank endorsement.
(ii) Order Instrument: Promissory Note, Bill of Exchange or cheque is payable to order is called Order instrument.
(iii) Inland Instrument: Promissory Note, Bill of Exchange or cheque is an inland instrument subject to the following conditions:
(a) It must be drawn in India
(b) It must be payable in India
(c) It must be drawn upon any person resident in India
(iv) Foreign Instrument: An instrument which is not the inland instrument is called a foreign instrument.
(1) Bill drawn outside India
(2) Bill payable outside India
(3) Bill drawn upon foreign citizens
(v) Ambiguous Instrument: An ambiguous instrument means an instrument which can be construed either as a promissory note or a bill of exchange.
(vi) Inchoate Instrument: It means an incomplete instrument in some respect.

Characteristics of a Promissory Note:
(i) A promissory note must be in writing. An oral promise to pay does not constitute a promissory note.
(ii) It must contain a promise or undertaking to pay a mere acknowledgment of indebtedness will not make it a promissory note.
(iii) The promise to pay must be unconditional.
(iv) It must be signed by the maker. The signature must be in any part of the instrument and it need not be at the bottom.
(v) The maker of the note must be a certain person.
(vi) A promissory note originally made payable to bearer is illegal.
(vii) The promise must be for payment of money only.
(viii) The sum payable must be certain and must be specified in the note itself-.
(ix) A bank note or a currency note is not a promissory note.
(x) A promissory note must be sufficiently stamped.

Speculators in a stock market are of different types. They carry their names depending on their motive of trading in the stock exchange. Types of speculators are as follows:
(i) Bull:
(a) A Bull or Tejiwala is an operator who expects a rise in prices of securities in the future.
(b) He is called bull because just like a bull tends to throw his victim up in the air, the bull speculator stimulates the price to rise.
(c) He is an optimistic speculator.
(ii) Bear:
(a) A bear or Mandiwala speculator expects prices to fall in future and sells securities at present with a view to purchase them at lower prices in future.
(b) A bear usually presses its victim down to ground.
(c) A bear is a pessimistic speculator.
(iii) Stag:
(a) A stag is a cautious speculator in the stock exchange.
(b) He selects those companies whose shares are in more demand and are likely to carry a premium.
(c) He sells the shares before being called to pay the allotment money. He is also called a premium hunter.
(iv) Lame Duck:
(a) When a bear finds it difficult to fulfill his commitment, he is said to be struggling like a lame duck.
(b) A bear speculator contracts to sell I securities at a later date.
(c) On the appointed time he is not able to get the securities as the holders are not willing to part with them.

As of 2016, there are 60 stock exchanges in the world. Of these, there are 16 exchanges with a market capitalization of dollar1 trillion or more, and they account for 87% of global market capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are all in North America, Europe, or Asia.

Right of an Unpaid Seller against the Buyer Personally
(i) Suit for price: Where the ownership in the goods has passed to the buyer and the buyer refuses to pay for the goods, the seller can file a case against the buyer for the price.
(ii) Suit for Damage for Non-acceptance: Where the buyer wrongfully refuses to accept the goods, the seller can sue him for damages for non-acceptance of the goods.
(iii) Suit for Cancellation of the contract before the Due Date:  Where the buyer cancels the contract before the date of delivery, the seller may either treat the contract as continuing or wait till the due date or he can file a case against buyer immediately.
(iv) Suit for Interest: Where there is a specific agreement between buyer and seller regarding charging interest on the price the seller can recover interest from the buyer from the due date of the contract till the date of payment of purchase price.

Forms of Privatization:
(i) Contraction (minimisation) of public sectors: The number of industries reserved for public sector was reduced from 17 (as per 1956 policy) to only 8 industries viz, Arms and Ammunition, Atomic Energy, Coal and Lignite, Mineral oils, Mining of ores, Mining of copper, lead, zinc etc., Minerals for atomic energy and Railways.
(ii) Sales of shares of public sectors to the private sector: Indian Govt. started selling shares of PSUs to public and financial institution. Now the private sector will acquire ownership of these PSU's.
(iii) Memorandum of Undersatanding: MOU system was introduced in 1991to raise the productivity and performances of PSUs. It strengthens the relationship between PSUs and administrative departments.
(iv) Disinvestment in PSUs: The Govt has started the process of disinvestment in those PSUs which had been running into loss. It means that Govt. has been selling out these industries to private sector. So disinvestment is a system of privatizing government enterprises.

The government of India has adopted several measures of liberalization. Some of these measures are as under:
(i) Liberalization for industrial licensing: In India, it was mandatory to obtain license before liberalization for setting up certain industries. After liberalisation, all industries except six specific industries were liberalized i.e., free from obtaining license.
(ii) Freedom for expansion and poduction to industries: Earlier government used to fix the maximum limit of production capacity. Now the industries are free to decide their production limits by their own on the basis of the requirement of the markets.
(iii) Increase in the investment limit of the small industries: Investment limit of the small scale industries has been raised to Rs. 1 cr. So these companies can upgrade their machinery and improve their efficiency.
(iv) The first important reform in the external sector was made in the foreign exchange market. This led to an increase in the inflow of foreign exchange.
(v) Liberalization of export and import transactions: By simplifying procedures for imports and exports the government wanted to permit the international flow of goods, services, capital, human resources and technology, without many restrictions.

The process of MBO is explained below:
(i) Defining Organisational Objectives: Initially, organisational objectives are framed by the top level employees of an organisation. The definition of organisational objectives states why the business is started and exists.
(ii) Goals of Each Section : Objectives for each section, department or division are framed on the basis of overall objectives of the organisation. Goals or objectives are expressed in a meaningful manner.
(iii) Fixing Key Result Areas: Key result areas are fixed on the basis of organisational objectives premises. Key Result Areas (KRA) are arranged on a priority basis. KRA indicates the strength of an organisation.
(iv) Setting Subordinate Objectives or Targets : The objectives of each subordinate or individual are fixed. It is preferable to fix the objectives at lower level in quantitative units. There should be a free and frank discussion between the superior and his subordinates.
(v) Matching Resources with Objective : The objectives are framed on the basis of availability of resources. If certain resources (technical personnel or scarce raw material) are not adequately available, the objectives of an organisation are changes accordingly.
(vi) Periodical Review Meetings: The superior and, subordinates should hold meetings periodically in which they discuss the progress in the accomplishment of objectives.
(vii) Appraisal of Activities: At the end of the fixed period for achieving the objectives, there should be a discussion between the superior and subordinates.

Tata has always been values-driven. These values continue to direct the growth and business of Tata companies. The five core Tata values underpinning the way we do business are:
(i) Integrity: We will be fair, honest, transparent and ethical in our conduct; everything we do must stand the test of public scrutiny.
(ii) Excellence: We will be passionate about achieving the highest standards of quality, always promoting meritocracy.
(iii) Unity: We will invest in our people and partners, enable continuous learning, and build caring and collaborative relationships based on trust and mutual respect.
(iv) Resonsibility : We will integrate environmental and social principles in our businesses, ensuring that what comes from the people goes back to the people many times over.
(v) Pioneering: We will be bold and agile, courageously taking on challenges, using deep customer insight to develop innovative solutions.
(vi) Mission: To improve the quality of life of the communities we serve globally through long-term stakeholder value creation based on Leadership with Trust.

The management concept can be understood from its profound characteristic features as follows:
1. Body Knowledge:
(i) Management has now developed a specialised body of management theory and philosophy.Management literature is growing in all countries.
2. Management Tools:
Tools of management have been developed such as, accounting, busines law, psychology, statistics, econometrics, data processing, etc.
3. Separate Discipline:
Management studies in many universitis and institutions of higher learning are recognised as a separate discipline.
4. Specialisation:
There is a growing tendency to select and appoint highly qualified, trained and experienced persons to manage the business in each functional area of management.
5. Code of Conduct:
Enlightened businessmen have recognised that business management is a social institution and it has social responsibilities to be fulfilled - towards customers, employees, and the public or community.
 

(i) These are the functions which help or facilitate in the transfer of goods and services from the producer to the consumer.
(i) They are not directly connected with the transfer of goods, under this category the following functions are included.
(i) Financing:
a. Long-term finance
b. Medium term finance
c. Short- term finance
(ii) Risk bearing:
a. Time risk
b. Place risk
c. Competition risk
d. Risk of change in demand
e. Risk arising from natural calamities
f. Human risks
g. Political risks
(iii) Market Information:
According to Clark and Clark market information means "all the facts, estimates, opinions and other information used in marketing of goods".
(iv) Standardization:
Standardization means establishment of certain standards based on intrinsic qualities of a commodity.
The quality may be determined on the basis of various factors like size, colors, taste, appearance, etc.
(v) Grading:
Grading means classifications of standardised products in to certain well defined classes.
(vi) Branding:
Branding means giving a name or symbol to a product in order to differentiate it from competitive products.
(vii) Packing:
Packing means wrapping and crating of goods before distribution.
Goods are packed in packages or containers in order to protect them against breakage, leakage, spoilage and damage of any kind.
(viii) Pricing :
Pricing is perhaps the most important decision taken by a businessman. It is the decision upon which the success or failure of an enterprise depends to a large extent.
Therefore, price must be determined only after taking all the relevant factors into consideration.

There are two important functions under this classification:
(i) Transportation
(ii) Storage and warehousing
(i) Transportation:
a) Transport means carrying of goods, materials and men from one place to another.
b) It plays an important role in the marketing. It creates place utility by moving goods from the place where they are available in plenty, to places where they are needed.
c) Various types of transport are used for carrying goods like a. Land transport, b. Water transport and c. Air transport.
d) Innovation, Representation, Decision-making, and Communication are the subsidiary functions of management. 
(ii) Storage and Warehousing:
a. Storage:
i) Storage is another function of marketing process and it involves the holding and preservation of goods from the time they are produced to the time they are consumed.
ii) Generally, there is a time gap between the production and consumptiop of goods.
iii) Therefore, there is need for storing so as to make the goods available to the consumers and when they are required
b. Warehousing:
Warehouses create time utility by storing the goods throughout the year and releasing them as and when they are needed. Several types of warehouses are used for storage of goods, which are as follows:
(i) Private warehouses
(ii) Public warehouses
(iii) Bonded warehouses

The complaint should contain the following particulars:
(i) The name and complete address of the complainant
(ii) The name and complete address of the opposite party/parties
(iii) Date of purchase of goods or services availed
(iv) Amount paid for the above purpose
(v) Particulars of goods purchased with number or details of services availed
(vi) The details of complaint, whether it is against Unfair Trade Practices/supply of defective goods/deficiency in service provided/ collection of excess price, should explicitly be mentioned in the complaint petition.
(vii) Bills/receipts and copies of related correspondence, if any.

The first step in filing a consumer complaint is to send a legal notice to the seller or company. A legal notice must be drafted with the help of a consumer court lawyer and include the following:
(i) Details of the consumer like name,address, product or services purchasedetails of the company, etc.
(ii) Necessary details of the problem faced and describe the deficiency in service.
(iii) Action taken by the company in response to the customer complaint
(iv) Action expected from the company
(v) Time period given to the company to take action
(vi) The legal action that will be taken upon failure by the company in sending a reply to the legal notice.

On the basis of geographical area can be classified into (a) Family market, (b) Local market, (c) National market, (d) International market or World market.
(a) Family market : When exchange of goods or services are confined within a family or close members of the family, such a market can be called as family market.
(b) Local market: Participation of both the buyers and sellers belonging to a local area or areas, may be a town or village, is called as local market. 
(c) National market : Certain type of commodities has demand throughout the country. Hence it is called as a national market.
(d) International market or World market: World or International market is one where the buyers and sellers of goods are from different countries i.e., involvement of buyers and sellers beyond the boundaries of a nation.

The purpose of training can be explained as follows:
(i) Improved Quality of Work
Training helps to focus on specific area and develop employee skills.
It enables employee to increase the guality ofwork.
(ii) Enhance Employee Growth
Employees who undergo training becomes good at their job.
Imparting new skills helps in performance enhancement of the employees.
(iii) Motivating Employees
An employee needs continuous development to move along the career path as per the career planning.
Training motivates and instils organizational commitment.
(iv) Reduced Supervision
Trained employees need minimum supervision as they are educated about various aspect of job in detail at the training programme.
(v) Better Adaptability
Employees are able to adapt themselves to new technologies and new methods of work.which constantly undergoes changes

(i) Lecture Method : Under this method trainees are educated about concepts, theories, principles and application of knowledge in any particular area. Trainer are generally drawn from Colleges, Universities, Consultancies, Institutions, Manufacturing concerns, Union, etc.
(ii) Group discussion method : Group of people participate and discuss particular subject or one topic. Under this method participants are divided into various groups. They were provided a particular issue for deliberation.
(iii) Case Study Method : Trainees are described a situations which stimulate their interest to find solution. They have to use their theoretical knowledge and practical knowledge to find solution to the problem presented
(iv) Role Play Method: Under this method trainees are explained the situation and assigned roles. They have to act out the roles assigned without any rehearsal. There is no pre-prepared dialogues.
(v) Field Trip Method : A held trip or field work or training in the field is a journey undertake by a group of employees trainees to a place away from their actual work site. This method helps the trainees to strengthen their theoretical knowledge obtained in a class room environment by practical exposure.

Origin: 
(i) In the beginning of 20th century industrial economy reached a boom state
(ii) The early 20th century marked a period of reform and expansion in many areas as well.
(iii) Industrial reform for consumers would be an answerable to inconsistencies that existed between product, price and consumer satisfaction.
Evolution of Consumerism:
(i) The major causes of consumerism in India have been identified as rising prices, poor product performance and service quality, product shortages and deceptive advertising and inflation.
(ii) Government has been very responsive to the consumer needs through legislative actions.
(iii) Economic discontent has been generated out of spiralling inflation.
Growth:
(i) Consumerism or consumer movement is an outcome of sufferings, and exploitations of consumers.
(ii) It intends to shield the consumers from commercial terrorism and exploitative practices.
(iii) Its aim is to safeguard their interests by establishing their rights and powers in relation to products and sellers.

(i) It is the social force protecting the consumer and aiding the consumer.
(ii) Consumerism is the society's attempt to bring back the balance in the exchange between the buyers and sellers as the strength of power is normally in favour of sellers rather than buyers.
(iii) Producers, sellers and service providers give importance to the consumers.
(iv) In a sense every one of us is a consumer. It may be individuals, families and institutions.
(v) they consume a variety of products and avail a number of services almost everyday

(i) The market scenario in the world today is changing very rapidly.
(ii) The boundaries of nations are disappearing for exploiting the opportunities of business.
(iii) Today's customers are global and exhibit international characteristics. Because of developments of information technology, rapid means of transportation, liberalization, and mobility of people across the world, their buying habits are fast varying and so are the fortunes of various organisations.
(iv In the Globalised business environment, the marketer must move goods faster and quicker to satisfy the consumers needs and wants by serving the best quality goods and services.
(v) Therefore marketers are shifting from transaction thinking to relationship building and also focusing on life long customers.
(vi) So, marketer has given more emphasis on the notion, "offer more for less" and adopt different strategies to satisfy the consumers.
(vii) They use a variety of tools like computers, laptops, tablet and smart or android phone devices to access different websites.
(viii) Besides the social media networks have opened new avenues of interacting with customers.

Advantage of E-Marketing :
(i) Any Time market: E - Marketing provides 24 hours and 7 days "24/7" service to its users. So consumer can shop or order the product anytime from anywhere.
(ii) Direct contact of end consumer by the manufacturers cuts down the substantially intermediation cost. Thus products bought through e-marketing become cheaper.
(iii) Customer can buy whatever they want/ need just by browsing the various sites.
Disadvantages of E-Marketing :
(i) E-Marketing a strong Online advertising campaign need for which company have to spend large amount for website design, software, hardware, maintenance of business site, Online distribution costs.
(ii) It is not suitable for small size business and also deters customers from buying who lives on long distances.
(iii) While the number of customers is continuously growing, companies hardly update the information on website.
(iv) Many buyers are suspicious about the security of the Internet. As a result, many visitors of business web sites do not like to use their credit card to make a purchase. So, there is a fear of their cards being misused by fraudulent practitioners.

Factors influencing employee selection process are listed below:
(i) Nature of Post :
The process of selection of employee varies according to type of personnel to be recruited. For instance, selection process of probationary officer of a bank differs from that of selection of officer for Indian Police Service. 
(ii) Number of Candidates :
Selection process depends on the response of candidates to the advertisement inviting applications for the post. For instance, for clerical and other physical jobs, more candidate tend to apply. Hence short listing needs to be done. 
(iii) Selection Policy :
The selection policy and selection process are inter-related. For example some organizations put in place tougher selection process involving several steps to identify the best fit while certain other organizations just conduct straight interview and thus cutting short the selection procedure.
(iv)  Cost factor / Budget :
The longer selection process entails higher cost. Hence, organizations which cannot afford to spend a larger resource tend to shorten selection process while organizations with sound financial condition can afford to adopt lengthier selection process.
(vi) Level of Educational Qualities and Experience and Exposure: 
The process of selection depends on the experience and educational qualification, and exposure required for the post. For example for selection of finance officer, treasurer, legal adviser, designer, architecture, CEOs, scientist, chairman etc.

Personality test comprises of following tests:
(i) Interest test:  Interest test measures a candidate's extent of interest in a particular area chosen by him/her so that organization can assign the job suited to his/her in term.
(ii) Personality Inventory test: Under this method standardise questionnaire is administered to the candidate to find out traits like interpersonal rapport, dominance, intravertness, extravertness, self confidence, lower sign quality etc.
(iii) Projective Test/Thematic appreciation test : This test measures the candidate's values, attitude apprehensive personality etc. out of the interpretation or narration given by the candidate to the pictures, figures etc. shown to him in the test situation.
(iv) Attitude test : This test measures candidate's tendencies towards the people, situation, action and related things. For example, moral study and values study.

I. Open Procedure:
This type of voting has no secrey as the all the members assembled can see voting. There are two popular methods of open voting namely voice voting and voting by show of hands.
(a) By Voice : Voice voting is a popular type of voting in which the chairman allows themembers to raise their voice in favour or against an issue 'Yes' for approval and 'No' for rejection. Chairmnan announces the result of voice voting on the basis of strength of words shouted, It is an unscientific method. I cannot be Employed for deciding complex ssue.
(b) By show ot hands: Under this methed, the chairnan, requests the menbers to ratse their hands of those who are in favour of the proposal or Candidate andthen requeststhose are against. llhenthe chairmancounts the number of hands ralsed for 'Yes' and 'No' respectively can announce the result on the basis of hands counted,
II. Secret Procedure:
Secret procedure is adopted to decided certain vital issues. It is a popular voting methodtthat couldnaintain the secrecy of the voter.
(a) By Ballot : Under this system, ballot paper bearingserial number is given to the members to record their opinion by marking with the symbol or Shareholders have to cast their vote ina secret chamber and put the ballot paper into the ballot box. The votes are counted and the results are announced.
(b) Postal Ballot : Big companies or big associations having members scattered all over the country follow this method of voting. The members or voters fill in the ballot papers and return them in sealed covers which are opened when the ballot box is opened for counting the votes.

Functions of the company secretary may be discussed under two headings
(i) Statutory functions / duties
(ii) Non-statutory functions/duties
(i) Statutory function
As the principal officer of the company, the secretary must observe all legal formalities in respect of the provisions of the Companies Act and other laws (eg) Income-tax Act, Stamp Act, Sales-tax Acts, etc.) which have a bearing on the activities of the company.
(ii) Non-statutory function
Secretary has to discharge non-statutory functions in relation to directors, shareholders and office and staff. These functions are briefly mentioned.
(i) Functions as agent of directors;
(i) Functions towards shareholders;
(iii) Functions towards office and staff.

(i) General Optimum Combination: Board of Directors shall have an optimum combination of executive and non executive directors with at least one woman director and not less than fifty percent of the board of directors shall comprise of non-executive directors.
(ii) When the non-executive Director is the Chairperson: In this case, at least one-third of the board of directors shall comprise of independent directors and where the company does not have a regular non-executive chair person.
(iii) when the non-executive chairperson is a promoter: When the non-executive chairperson is a promoter or is related to any promoter or person occupying management positions at the level of board of director or at one level below the Board of Directors.

(i) Key-Managerial Personnel of a Company :
Companies Act, 2013 (Act) has introduced many new concepts and Key Managerial Personnel (KMP) is one of them. KMP covers the traditional roles of managing director and whole time director and.also includes some functional heads like Chief Financial Officer and Chief Executive Officer and Company Secretary
(ii) Key Managerial Personnel : Managerial personnel is contained in section 2(51) of the Companies Act, 2013.This Section states:
(a) The Chief Executive Officer
(b) The Managing Director or the Manager
(c) The Company Secretary
(d) The Whole-time Director
(e) The Chief Financial Officer, and
(f) Such other officer as may be prescribed.

'Formation of a company' has been divided into four stages: 1. Promotion 2. Registration 3. Capital subscription and 4. Commencement of business.
1. Promotion : Promotion stage begins when the idea to form company comes in the mind of a person. The Person who envisages the idea is called promoter.
2. Registration : The second stage in the formation of the company is incorporation on registration. In this stage the promoter does the following.
(i) Application for availability of name of company
(ii) Preparations of memorandum and articles of association.
(iii) Declaration from the professional, etc.
3. Capital Subscription : Both private company and public company not having share capital can commence its business after the completion of the above stages.
But a public limited company having its share capital has to pass through two more stages:
Example
(i) The fulfilling formalities to raise necessary capital
(ii) Fulfilling the condition for valid allotment by director.
(iii) Despatch allotment letters to allottees.
4. Commencement : As per section 11 of the Act, a company having share capital should file with the registrar declaration starting that
(i) Every subscriber to the memorandum has paid the value of shares agreed to be taken by him.
(ii) Paid up capital is not less than Rs 5 lakhs in the case of public limited company and Rs. 1 lakh in the case of private limited company.
(iii) It has filed the Registrar the verification of the Registered Office.

SI.No	Debentures	Shares
1.	Debentures constitute a loan	Shares are part of the capital of a company
2.	Middle and lower level	Top level
3.	Debenture holder gets fixed rate of Interest which carries a priorities over dividend.	Shareholders gets dividends with a varying rate
4.	Debentures generally have a change on the assets of the company	Shares do not carry any such change
5.	Debentures can be issued at a discount without restrictions	Shares cannot be issued at a discount.

 

The various steps involved in starting a venture have been highlighted.
(i) Selection of the product:
An entrepreneur may select a product according to his aspiration, capacity, and motivation after a thorough scrunity of the micro and macro environment of business.
(ii) Selection of form ownership: 
Entrepreneur has to choose the form of organization suitable and appropriate for his venture namely family ownership, partnership, and private limited company.
(iii) Selection of Site:
(i) Entrepreneur has to choose suitable plot for accommodating his venture.
(ii) Entrepreneur may buy private land and develop it for industrial use.While choosing the site, consider Nearness to native place, Incentives provided by theGovernment, Nearness to market, Infrastructure Facilities.
For example Nearness to native place, Incentives provided by the Government, Near to market.
(iv) Designing Capital Structure:
Entrepreneur has to determine the souce of fhnance for funding the venture, He/she may mobiline funds from his own savings, lons from friends and relatives, term loans from banks and financial institutions.
(v) Acquisition of Manufacturing know-how: 
Entrepreneur can acquire manufacturing know-how from Government research laboratories, research and development divisions of industries, and individual consultants.
(vi) Preparation of project report:
Project reports nreds to be prepared accoring to the form t prescribed in the loan application from of term lending instítutions,An entrepreneur can get the report prepared either by technical consultancy oryanisation or by auditors or by consultants or by developrneht agencies.

(i) Make in India:
(a) This scheme is designed to transform India into global design and manufacturing hub, the Make in India initiative was launched in September 2014.
(b) It came as a powerful call to India's citizens and business leaders, and an invitation to potential partners and investors around the world to centraliz information about opportunities in India's manufacturing sector
(ii) Atal Innovation Mission (AIM):
AIM is the Government ofIndia's endeavour to promote a culture of innovatíon and entreprerneurship,and itserves as a platform for promotion of world-class Innovatíon
Hubs, GrandChallenges, start-up businesses and other self-employment activities, particularly in technology driven areas.
(iii) Support to Training and Employment Programme for Women (STEP) : STEP was launched by the Government of India's Ministry of Women and Child Development to train women who have access to formal skill training facilities, especially in rural India.
(iv) Digital India :
(a) The Digital India initiative has been launched to moderníze the Indian economy to make all government services available electronically.
(b) The initiative aims at transforming India into a digitally-empowered society and knowledge economy with universal access to goods and services.
(v) Science for Equity Emnpowerment and
Development(SEED):
(a) SEED aims to provide opportunities tomotivated scientists and field level workers to undertake action-oriented, location specific projects for socio economic gain, particularly in rural areas.
(b) SEED emphasizes equity in development, so that the benefits oftechnology accrue to a vast section of the population, particularly the disadvantaged.

SI.No	Rural Entrepreneur	Urban Entrepreneur
1.	These are people who start a venture in rural locations like villages and semi-urban areas.	These are people who commence his entrepreneurial activities in urban areas like State Capital District headquarters, Towns, Municipalities.
2.	They are agricultural and trading entrepreneurs prefer to set up their venture in rural areas.	They may be industrial entrepreneur or cor entrepreneur.
3.	They are provided a lot of economic and fiscal incentives to start their venture In rural and semi-urban areas.	There is no such incentives are provided to those entrepreneurs.
4.	The cost of operation of rural ventures tends to be low	The cost of operation in urban areas are high
5.	It creates employment opportunities in rural areas.	Employment opportunities are low.

1. Innovating Entrepreneur
(a) Innovative entrepreneur is one who is always focussed on introducing a new-project or introducing something new in the venture already started. 
(b) Their innovation may take the form of brand new product, upgraded product, new method of production, reengineering of existing product etc.
2. Imitative Entrepreneur
(a) Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology already in place in advanced countries.
(b) For example many electronic products invented in advanced countries are simply reengineered in developing countries
3. Fabian Entrepreneur
(a) These entrepreneurs are said to be conservatives and sceptical about plasticising any change in their organisation. They are of risk-averse type.
(b) They do not simply change themselves, they change only when they fear than non-adaptability will lead to loss of the enterprise.
4. Drone Entrepreneur
(1) Drone Entrepreneur are those who are totally opposed to changes unfolding in the environment.
(2) Drone never try to adapt themselves with the changes even as a last resort. Example : Global Tooth Power.

Challenges faced by women Entrepreneurs
(i) Problem of Finance:
(1) The access of women to external sources of funds is limited as they do not generally own properties in their own name.
(2) Because of the limited funds, women entrepreneurs are not able to effectively and efficiently run and expand their business.
(ii)Limited Mobility:
(1) Indian women cannot afford toshed their household responsibilities towards their family even after they plunge into the venture started by them.
(2) This restricts the mobility of women entrepreneur significantly.
(iii) ) Lack of Education :
Iliterate and semi-literate women entrepreneurs encounter a lot of challenges in their entrepreneurial journey with respect to maintaining accounts, understanding money matters, day-to-day operations ofthe company,marketing the products, applying technology etc.,
(2) This reduces the efficiency of operating the business successfully. 
(iv) Lack of Network Support:
The successful operation of any venture irrespective of the size depends upon the network of support extended by various constituencies like family members, friends, relatives, acquaintances, neighbours, institutions and so on.
(2) But it is reported that women entrepreneursget very limited support in times of crisis from most of these constituencies.
(v)Self Competition:
(1) Women entrepreneurs have to face acute competition for their goods trom organised sector and from their male counter parts.
(2) Since, they are not able to spend liberally due to financial constraints, they are not able to compete effectively and efliciently in the market.
(vi) Lack of Information:
Women entrepreneurs are reported not to be generally aware of subsidies and incentives available for them due to their poor literacy levels or due to their pre-occupation with household responsibilities.

 

Characteristics of Entrepreneur.
1. Spirit of Enterprise :
Entrepreneur should be bold enough to encounter risk arising from the venture undertaken.Entreprenour should not get discouraged by setbacks or frustrations cmerging during the course of entrepreneurial journey.
2. Self Confidence :
Entrepreneur should have a sclf confidence in order to achieve high goals in the business. The negativities like inconvenicnce, discomfort, disappointments, rejections, frustrations and so on should not weaken his steely resolve to make the venture a grand success.
3. Flexibility:
Entrepreneur should not doggedly stick to decisions in a rigid fashion. Entrepreneur should change the decisions made already in the light of ever-changing business environment.
4. Innovation:
Entrepreneur should contribute something new or something unique to meet the changing requirements of customers nanely new product, new method of production or distribution, adding new features to the existing product, uncovering a new territory for business, innovating new raw material etc.
Resource Mobilisation :
Entrepreneur should have the capability to mobilise both tangible inputs like manpower, money materials,technology, market, methodetc. Which are scattered over a wide area and certain intangible inputs like motivation, morale and innovativeness cannot be purchased in the market outright.
(vi) Hard work :
Entrepreneur should put in strenuous efforts and constant endeavours to accomplish the goals of the venture successfully. They have to courageously face uncertainties, risks and constraints.

SI.No	Basis of Difference	Cheque	Bill of Exchange
1.	Drawn	A cheque can be drawn only on a particular banker.	A bill of exchange can be drawn on any person including a banker
2.	Payability	It is payable on demand only.	It is payable on demand or on the expiry of a certain period.
3.	Validity	A cheque drawn payable to bearer on |demand is perfectly valid.	A bill made payable to bearer on demand is void by virtue of section 31 of the RBI Act.
4.	Acceptance	A cheque does not require any acceptance.	In case of time bill, acceptance by the drawee is necessary before he can be made liable on it.
5.	Grace Period	No days of grace are allowed in the case of a cheque for the simple reason that is always payableon demand.	Three days of grace are allowed while calculating the maturity date in the case of time bill.
6.	Notice	Notice is not necessary for a cheque.	When a bill is dishonoured, notice of dishonour is necessary.

Certain presumptions as briefly mentioned below:
(i) Every negotiable instrument is presumed to have been drawn, accepted, etc. for consideration.
(ii) A negotiable instrument is presumed to have been accepted.
(iii) Every negotiable instrument bearing, a date is presumed to have been made or drawn on such a date.
(iv) It is presumed to have been accepted within a reasonable time after the date and before its maturity.
(v) The transfer of a negotiable instrument is presumed to have been made before maturity.
(vi) The endorsements appearing upon a negotiable instrument are presumed to have been made in the order to which they appear thereon.
When a negotiable instrument has been lost, it is presumed to have been duly stamped.
(vi) The holder of a negotiable instrument is presumed to be a holder in due course.

Rights of an Unpaid Seller against the Goods
(1) Right of Lien: 
An unpaid seller has a right to retain the goods till he receives the price. But to exercise this lien
(i) He must be in possession of goods
(ii) The goods must have been sold without any stipulation as to credit or where goods have been sold on credit, the terms of credit must have expired.
(iii) It must be remembered that the right of lien depends on actual possession of goods
Where the Property in the Goods has Passed to the Buyer.
(2) Right of Stoppage in Transit: 
Where the seller has delivered the goods to a carrier or other bailee for the purpose of transmission to the buyer, but the buyer has not acquired them, then the seller can stop the goods and regain the possession. 
(3) Right of Resale:
The unpaid seller can resell the goods
(i) Where they are of a perishable nature or
(ii) After exercising his right of lien or stoppage in transit, even though he has given intimation to the buyer of his intention to resell, buyer has not tendered the price within a reasonable time.
(iii) Where the seller has expressly reserved the right of resale in the contract itself.

SI.No	Basis of Difference	Conditions	Warranty
1.	Meaning	It is a stipulation which is essential to the main purpose of the contract of sale.	It is a stipulation which is collateral to the main purpose of contract.
2.	Significance	Condition is so essential to the contract that the breaking of which cancels out the contract.	It is of subsidiary or inferior character. The violation of warranty will not revoke the contract.
3.	Transfer of ownership	Ownership on goods cannot be transferred without fulfilling the conditions.	Ownership on goods can be transferred on the buyer without fulfilling the warranty.
4.	Remedy	In case of breach of contract, the affected party can cancel the contract and claim damages.	In the case of breach of warranty, the affected party cannot cancel the contract but can claim damages only.
5.	Treatment	Breach of condition may be treated as breach of warranty.	Breach of warranty cannot be treated as breach of condition.

(i) Liberalization has opened up new business opportunities abroad and increased foreign direct investment.
(ii) It became very easy to obtain loans from banks for business expansion.
(ii) "Foreign Collaboration'" is the latest outcome of liberalization.
(iv) Privatization has a positive impact on the financial growth by decreasing the deficit and debit
(v) Increase in the efficiency of government undertakings
(vi) Provide better goods and sources to the consumers
(vii) Globalization has led to a boom in consumer products market
(vii) Globalization has touched every aspect of agriculture like technological advancements, improved production techniques and quality based enhancement.

Advantages :
(i) Increase in foreign investment :
If a country liberalises its trade, it will make the country more attractive for inward investment. Inward investment leads to capital inflows but also helps the economy through diffusion of more technology, management techniques and knowledge.
(ii) Increase the foreign exchange reserve :
Relaxation in the regulations covering foreign investment and foreign exchange has paved way for easy access to foreign capital.
(iii) increase in consumption :
Liberalization increases the number of goods available for consumption within a country due to increase in production.
(iv) Control over price :
The removal of tariff barriers can lead to lower prices for Consumers.This would be particularly is benefit for countries who are importers.
Disadvantages :
(i) Increase in unemployment :
Trade liberalisation often leads to a shift in the balance of an economy. Some industries grow, some decline. Therefore, there may often be structural unemployment from certain industries closing.
(ii) Loss to domestic units :
With fewer entry restrictions, it has been possible for many entrants to make inroads into the country which poses a threat and competition to the existing domestic units.
(iii) Increased dependence on foreign nations :
Trade liberalisation means firms will face greater competition from abroad.When competition is not automatically enhanced, it can lead to domination by big institution that has market controlling powers.
(iv) Unbalanced development :
Trade liberalisation may be damaging for developing economies which cannot compete against free trade. 

The significance of understanding business environment is as follows
(i) Helps in formulating strategy and future planning
(ii) Enables to identity the opportunities available
(iii) Environment scanning
(iv) Business aids
(v) Public image
Internal factors affecting business:
(a) Values system:
The values of the founder/owner of the business, percolates down to the entire organization and has a profound effect on the organisation.
(b) Vision and objectives:
The vision and objectives of a business guides its operations and strategic decisions.
(c) Management structure and nature:
The structure of management/board and their style of functioning, the level of professionalism of management and the composition of the board are the various factors which affects the decision making.
(d) Internal power relations:
This refers to the internal power relations that exist in an organisation.
(e) Human resources : 
The success of an enterprise is solely dependent on its manpower. Therefore the quality, skill competency, right attitude and commitment of its human resources is essential for the success of an organisation.
(f) Company image:
The image of an organisation plays an important role in introducing new products, selecting agents and dealers for distribution, forging alliances with suppliers, expanding and entering new markets both domestic and international, raising finance etc.

Micro environment rcfers to th0se factors which are in the imncdiate environment of businessaffecting itsperformance. "These includes the following:
(i) Suppliers:In any organisation the suppliers ofraw materials and other inputs play a very vital rolc. Timely procurement of materiáls from suppliers enables continuity in production and reduces the cost ofmaintaining stock/ inventory.
(ii) Customers : The aim of any business is to satisfy the needs of its customers. The customer is the king and the fulcrum around which thebusiness revolves.
(iii) Competitors:All organisationsface competition at all levels such as local, national and global. Itis important for a business to understand its competitors and modify their business strategies in the face of competition.
(iv) Financiers :The financiers of a business which includes the debenture holders and financial institutions play a significant part in the running of a business. Their financial capability, policies strategies, attitude towards risk and ability to give non-financial assistance are all important to a business.
(v)Marketing Channel members:The marketing inter-mediaries serve as a connecting link between the business and its customers. The middlemen like dealers, wholesalers and retailers ensure transfer of product to customers. Insurance firm is another marketing intermediary which provides coverage for risk in business.
(vi) Public: This refers to any group like media group, citizen action group and local public which has an impact on the business. Many companies had to face closure due to actions by local public.

The first priority of a consumer organisation is to accelerate consumer awareness towards their rights. To accomplish this task the following efforts are made:
(i) To publish brochures, journals and monographs.
(ii) To arrange conferences, seminars and workshops.
(iii) To educate consumers to help themselves.
(iv) To provide special education to women about consumerism. 

1. As per the Consumer Protection Act of1986 and Section 9 there of the establishment of a District Forum by the State Government in each district is necessary today to protect the interest of aggrieved consumers in that district.
2. The State Government can establish more than one District Forum in a district if it deems fit to do so.
3. Complaints can be filed with the forum by a consumer.
4. The District Forum can entertain complaints within the territory of genuine district and where the value of goods or services and the compensation if any claimed is less than Rs. 20 Lakhs.
5. District Forum also may pass orders against traders indulging in unfair trade practices, sales of defective goods or rendering deficient services.

(i) Buying quality products at reasonable price :
(1) It is the responsibility of a consumer to purchase a product after gaining a thorough knowledge of its price, quality and other terms and conditions. 
(2) The consumer must have the knowledge about the quality from his own experiences or from the experiences of other persons who used product or by browsing the website.
(ii) Reading the label carefully :
(1) It is the duty of the consumer to thoroughly read the label of the product.
(2) It should have correct,complete and true information about the product.
(iii) Beware of false and attractive advertisements :
(1) Often the products are not as attractive as shown in the advertisement by the sellers.
(2) Hence, it is the prime duty of consumer not to get misled by such fraudulent advertisements.
(iv) Ensuring the receipt of cash bill :
(1) It is a legitimate duty of consumers to collect cash receipt and warranty card supplied along with bills.
(2) This will help them in seeking redressal for their grievances.
(v) Buying from reputed shops:
(1) It is advisable for the consumer to make purchase from reputed shops or government shops like super bazaar, cooperative stores, and others.
(vi) Never purchase from black market:
(1) The consumer should not buy things from black market and in excess of his requirements.
(2) At times of scarcity consumer should not resort to panic buying and stock things excessively.



 

(i) Right to Protection of Health and Right of Safety:
1. There may be few products that are more likely to cause physical danger to consumers health, lives and property.
2. They may contain potentially harmful substances which are dangerous from the consumer welfare point of view
(ii) Right to be Informed:
1. Consumers should be given all the relevant facts about the product so that they can take intelligent decisions on purchasing the product.
2. The package should contain the full details about the name of the product, composition, dosage, date of manufacturing, date of expiry, batch number, warnings, antidose etc.
(iii) Right to choose:
1. Consumer satisfaction is the ultimate aim of modern marketing and is the philosophy of marketing concept.
2. Consumer satisfaction can be increased by giving the consumer the widest choice.
3. The term 'Choice' means offering the widest range of products in quality and brand varieties.
(iv) Right to be heard :
1. Consumers have every right to ventilate and register his or her dissatisfaction.
2. Business enterprises should lend a compassionate ear to complaints or grievances of consumers.
(v) Right to seek Redressal :
1. The complaints and protests are not just to be heard but the aggrieved party is to be granted compensation within a reasonable time period .
2. This will boost consumer confidence and help render justice to buyers.
(vi) Right to consumer education :
1. The consumer has a right to acquire knowledge and stay well-informed all through his life.
2. Many consumer organisations and some enlightened businesses are taking a pro active part in educating consumers in this respect.
(vii) Right to Quality of Life
1. Quality of life refers to the preceived well-being of people, in groups and individually and well-being of the environment in which these people live.
2. Consumerism has been defined as 'an improved quality of life'.
(viii) Right to Consumer Protection
The consumer has a right to be aware of his rights and remedies available to him, redress his grievances through publicity in the mass media.
(ix) Right to Basic Needs
1. Every consumer has a right to get basic necessities of life such as food, clothing and water, and right to pure and healthy environment.
2. Community life should be free from various modes of pollution.

(i) Ultimately it is the consumer who alone can put an end to all their unethical trade practices.
(ii) Business enterprises may break the codes and Government may rest content with mere enaction of laws and do little to protect consumers.
(iii) Consumers have to be vigilant and organise themselves into a movement for concerted action.

Consumers are exploited in many ways. Some of them are given below:
(i) Selling at higher price:The price charged by the seller for a product/ service may not be commensurate with the quality but at times it is more than the fair price.
(ii) Adulteration: It refers to mixing or substituting undesirable material in food.This causes heavy loss to the consumers.Adulteration is quite common in food articles.For example : Mixing of stones with grains,coffee powder is adultered with tamarind seed,etc. 
(iii) Duplicate or spurious goods: Duplicate products of popular products are illegally produced and sold. Duplicates are available in plenty in the market for every original and genuine parts or components like automobile spare parts, blades, pens, watches, radios, medicines, jewellery, clothes and even for currency notes. A consumer is not in a position to distinguish duplicate from the original.
(iv) Artificial Scarcity: There are certain situations where the shop-keepers put up the board "No Stock" in front of their shops, even though there is plenty of stock in the store. Even in Cinema houses, board may hang in the main entrance 'House Full' while cinema tickets will be freely available at a higher price in the black market.
(v) Sub-standard: On opening a packet or sealed container one may find the content to be of poor quality.Thus gulliable consumers are easily and legally cheated. 
(vi) Warranty and Services: In case of consumer durable goods like televisions, washing machines, refrigerators, cars, two wheelers and air conditioners etc. free service is guaranteed only for few years called warranty period. But in reality free service is denied on filmsy grounds even during the warranty period.

I. Social Marketing
i) Social marketing is a new marketing tool.
ii) It is the systematic application of marketing philosophy and techniques to achieve specific behavioural goals which ensure social good.
iii) For example, this may include asking people not to smoke in public areas, asking them to wear seat belts or persuading them to follow speed limits.
II. Service Marketing
i) Service marketing is a specialized branch of marketing.
ii) A service is any activity or benefit that one party can offer to another which is essentially intangible and which does not result in the ownership of anything like business and professional services insurance, legal service, medical service etc.

i) In the Globalised business environment, the marketer must move goods, faster and quicker to satisfy the consumer's needs and wants by servicing the best quality goods and services.
ii) Therefore marketers are shipping from transaction thinking to relationship building and also focusing on lifelong customers.
iii) It is possible to carry out all the business transactions thinking to relationship building and also focusing on lifelong customer.
iv) So, marketer has give more emphasis on the notion, "offer more for less" and adopt different strategies to satisfy the consumers.
v) It is possible to carry out all the business transactions over an electronic network, primarily through the Internet.
vi) The number of Internet users is increasing very rapidly. They use a variety of tools like computer, laptops, tablet and smart or android phone devices to access different websites.
vii) Besides the social media networks have opened new aveues of interacting with customers.

They are discussed below :
(i) Product : Product is the main element of marketing. Without a product, there can be no marketing.
(ii) Price : Price is the value of a product expressed in monetary terms. It is the amount charged for the product.
(iii) Place : The third element of product mix, namely place or physical distribution facilitates the movement of products from the place of manufacture to the place of consumption at the right time.
(iv) Promotion : An excellent product with competitive price cannot achieve a desired success and acceptance in market, unless and until its special features and benefits are conveyed effectively to the potential consumers.

(a) To the Society:
(i) Marketing is a connecting link between the consumer and the producer.
(ii) Marketing helps in increasing the living standard of people.
(ii) Marketing helps to increase the nation's income.
(iv) Marketing process increases employment opportunities.
(v) Marketing creates modern cultivators.
(vi) Marketing removes the imbalances of supply by transferring the surplus to deficit areas, through better transport facilities.
(vii) Marketing helps to maintain economic stability and rapid development in underdeveloped or developing countries.
(viii) Marketing includes all activities in the creation of utilities- form, place, time and possession.
(ix) A reduction in the cost of marketing is a direct benefit to society.
(x) Marketing adds value of goods by changing their ownership and by changing their time and place of consumption.
(b) To the individual firms:
(i) Marketing generates revenue to firms.
(iii) Marketing section of a firm is the source of information to the top management for taking overall decisions on production.
(iii) Marketing and innovations are the two basic functions of all businesses, the world is dynamic.
(iv) Marketing facilities the development of business and creates employment opportunities for people.

On the basis of Economic the market can be classified into (a) Perfect market (b) Imperfect market
(a). Perfect market: A market is said to be a perfect
market, if it satisfies the following conditions:
(i) Large number of buyers and sellers.
(ii) Prices should be uniform throughout the market.
(iii) Buyers and sellers have a perfect knowledge of market.
(iv) Goods can be moved from one place to another without restrictions.
(v) The goods are identical or homogeneous. It should be remembered that such types of markets are rarely found.
(b). Imperfect market: A market is said to be imperfect when:
(i) Products are similar but not identical
(ii) Prices are not uniform
(iii) There is lack of communication
(iv) There are restrictions on the movement of goods.

The market can be classified as follows:
I. On the basis of Geographical area :
a. Family market
b. Local market
c. National market
d. International market or world market
II. On the basis of commodities /Goods :
a. Commodity market :
(i) Produce Exchange market
(ii) Manufactured goods market
(iii) Bullion market
b.Capital markets :
(i) Money market
(ii) Foreign Exchange market
(iii) The stock Exchange market
III. On the basis of Economics :
(i) Perfect market
(ii) Imperfect market
IV.On the basis of Transaction:
(i) Spot market
(ii) Future market
V. On the basis of regulation:
(i) Regulated nmarket
(ii) Unregulated narket
VI. On the basis of time :
(i) Very short period market
(ii) Short period market
(iii) Long period market
VII. On the basis of volume of business :
(1) Wholesale market
(2) Whole sale market
VIII.On the basis of importance :
(i) Primary market
(ii) Secondary market
(ii) Terminal market

(1) Benefits to the organisation:
(i) It improves the skill of employees and enhances productivity and profitability of the entity.
(ii) It reduces wastages of materials and idle time.
(2) Benefits to the employees:
(i) It improves the employees productivity
(ii) It enhances the morale of the employee.
(3) Benefits to the customer:
(i) Customers get better quality of product service.
(ii) Customers get innovative products or value added or feature rich products

S.No	Basis	On the Job training	Off the Job training
1l.	Meaning	The employee learns the job in the actual work environment	Off the job training involves the training of employees outside the actual work location
2.	Cost	It is cheapest to carryout	It requires expenses like separate training rooms,specialist, resources like projects.
3.	Location	At the work place	Away from the work place
4.	Suitable for	Generally imparted in case of manufacturing for production related iobs	Mostly imparted for managerial and non-production related jobs.
5	Approach	Practical approach	Theoretical approach
6.	Principle	Learning by performing	Learning by acquiring knowledge

The following principles are followed at the time of placement of an employee.
(i) Job First Man next :
Man should be placed on the job according to the requirements of the job.
There is no compromise on the requirements or qualifications of the man with respect to job. "Job First, Man next" should be the principles of management.
(ii) Job offer :
The job should be offered to the man based on his qualification.
(iii)  Terms and conditions :
The employee should be made conversant with the conditions and culture prevailing in the organisation and all those things relating to the job.
(iv) Aware about penalties :
The employee should also be made aware of the penalties if he / she commits a wrong or lapse.
(v) Loyality and Co-operation :
When placing a new recruit on the job, an effort should be made to develop a sense of loyalty and co-operation in him, so that he/she may realise his/her responsibilities better towards the job and the organisation.

(i) Preliminary Interview:
This interview is conducted to know the general suitability ofthe candidates who have applied for the job.
(ii) Structure/Guided/Planned Interview :
Under this method, a series of question to be asked by the interviewer are pre prepared by the interviewer and only these questions are asked in the interview.
(iii) Unstructured Interview : This is quite contrary to structured interview. Ihere is no pre-prepared questions. appreciation test (iv) Attitude test
(iv) In depth Interview : This interview is conducted to test the level of knowledge of the interviewee in a particular field intensively and extensively.
(v)Panel Interview :
Where a group of people interview the candidate, it is called panel interview. All panel members ask different types of questions on general areas of specialisation of the candidate.

S.No	Basis of comparison	Recruitment	Selection
1.	Meaning	Recruitment is an activity of searching  candidates and encouraging them apply for it.	Selection refers to the process of selecting the suitable candidates and offering the job
2.	Approach	Recruitment is positive	Selection is negative
3.	Objectives	Inviting large number of candidates to apply for the vacant post	Picking up the most suitable candidates and eliminating the rest
4.	Sequence	First	Second
5.	Method	It is an economical method	It is an expensive method
7.	Process	Recruitment process is very simple	Selection process is very complex and complicated

There are basically two ways by which an organisation can recruit its employees namely internal and external sources. External sources can further be classified into Direct and Indirect sources.
(i) Internal Sources: The following are the internal sources of recruitment.
(a) Transfer
(b) Upgrading
(c) Promotion
(d) Demotion
(e) Recommendation by existing employees
(f) Job rotation
(g) Retention
(h) Retired employees
(i) Dependants
(j) Previous applicants
(k) Acquisitions and mergers
(ii) External Sources:
(a) Direct: Advertisements, unsolicited applicants, walk ins, campus recruitment, Recruitment at factory gate, Rival firms, e-Recruitment.
(b) Indirect Exmployee referral, Government / Public Employment Exchanges, Employment agencies, Employment consultancies, Professional Associations, Deputation, Word of mouth, Labour contractors, Job portals, Outsourcing, . Poaching

1. In order to accomplish personal and organisational objectives the unique asset called human resource.
2. The branch of management that deals with managing human resource is known as Human Resource Management.
3. In an organisation the human resource are the employees who are inevitable for the survival and success of the enterprise.
4. It incudes the overall progress of the employee and the enterprise

The managerial functions are as follows:
(i) Planning:
Planning is deciding in advance, what to do, how to do and who is to do it.
It bridges the gap between where we are and where we want to go.
It helps in the systematic operation of business.
(ii) Organising:
It includes division of work among employees by assigning each employee their duties, delegation of authority as required and creation of accountability to make employees responsible.
(iii) Directing:
It involves issue of orders and instructions along with supervision, guidance and motivation to get the best out of employees.
This reduces waste of time, energy and money and early attainment of organisational objectives.
(iv) Controlling :
The control process includes fixing of standards, measuring actual performance, comparing actual with standard laid down, measuring deviations, and taking corrective actions.
This is made possible through observation, supervision, reports, records and audit.

The various powers of SEBI are as follows:
(i) Powers Relating to Stock Exchanges & Intermediaries:
SEBI has wide powers regarding the stock exchanges and intermediaries dealing in securities.It can ask information from the stock exchanges and intermediaries regarding their business transactions for inspection or scrutiny and other purpose.
(ii) Power to Impose Monetary Penalties:
SEBI has been empowered to impose monetary penalties on capital market intermediaries and other participants for a range of violations.
(iii) Power to Initiate Actions in Functions Assigned
SEBI has a power to initiate actions in regard to functions assigned. For example, it can issue guidelines to different intermediaries or can introduce specific rules for the protection of interests of investors.
(iv) Power to Regulate Insider-Trading:
SEBI has power to regulate insider trading or can regulate the functions of merchant bankers.
(v) Powers Under Securities Contracts Act:
 For effective regulation of stock exchange, the Ministry of Finance issued a Notification on 13 September, 1994 delegating several of its powers under the Securities Contracts Act to SEBI.
(vi) Power to Regulate Business of Stock Exchanges:
SEBI is also empowered to regulate the business of stock exchanges, intermediaries associated with the securities market as well as mutual funds, fraudulent and unfair trade practices relating to securities and regulation of acquisition of shares and takeovers of companies.

The functions of SEBI are as follows:
(i) Safeguarding the interests of investors by means of adequate education and guidance.
(ii) Regulating and controlling the business on stock markets.
(iii) Conduct inspection and inquiries of stock exchanges, intermediaries and self-regulating organisations and to take appropriate measures wherever required.
(iv) Barring insider trading in securities.
(v) Prohibiting deceptive and unfair methods used by financial intermediaries operating in securities markets.
(vi) SEBI Issues Guidelines and instructions to businesses concerning capital issues.

Lombard Street
(i) Lombard Street, London, is a street notable for its connections with the City of Londons merchant, banking and insurance industries, stretching back to medieval times.
(ii) From Bank junction, where nine streets converge by the Bank of England, Lombard Street runs southeast for a short distance before bearing left into a more easterly direction. 
Wall Street
(i) Wall Street is a street in lower Manhattan that is the original home of the New York Stock Exchange and the historic headquarters of the largest U.S. brokerages and investment banks.
(ii) The term Wall Street is also used as a collective name for the financial and investment community, which includes stock exchanges and large banks, brokerages, securities and underwriting firms, and big businesses.
(iii) Today, brokerages are geographically diverse, allowing investors free access to the same information available to Wall Streets tycoons.

The stock exchanges rendered various services to the community, company and investors. They are as follows
(i) Benefits to the community :
(a) Economic development : It accelerates the economic development by ensuring steady flow of savings into productive purposes.
(b) Fund ralsmg platform : It enables the well managed, profit making companies to raise limitless funds by fresh issued of shares. from time to time.
(c) Tools to divert resources : Scarce resources are thus diverted to efficiently run enterprises for better utilisation.
(d) Capital Formation It encourages capital formation.
(e) Fund Raiser for Government
(a) It enables Government to raise funds for undertaking projects through sale of securities on the stock exchange.
(b) Thus stock exchange serves as a platform for raising public debt.
(ii) Benefit to the company:
(a) Enhances goodwill or reputation : Companies who shares are quoted on a stock exchange enjoy greater goodwill and credit standing.
(b) Wide market : There is a wide and ready market for such securities.
(c) Raises huge funds: Stock exchange can raise huge funds easily by issue of shares and debentures.
(d) Increases bargaining strength
Companies whose shares rise in the stock exchange command higher bargaining power in the event of further expansion, merger or amalgamation.
(iii) Benefit to investors:
(a) Liquidity: Stock exchange helps an investors to convert his shares into cash quickly and thus increases the liquidity of his investments.
(i) Adding collateral value of security
The fact that a security is dealt on a stock exchange makes it a good collateral security for obtaining loan from banks.
(iii) Investor protection
The stock exchange safeguards, investor's interest and ensures fair dealing by strictly enforcing its rules and regulations.
(iv) Assessing real worth of security.
An investor can easilý assess the real worth of securities in his hands, as market quotations are published daily in the newspapers and in websites.
(v) Mechanism to trade security
Stock Exchange provides a mechanism by which purchase and sale of listed securities take place in a matter of few minutes.

The features of commercial bills are:
(i) Drawer
(ii) Acceptor
(iii) Payee
(iv) Discounter
(v) Endorser
(vi) Assessment
(vii) Maturity
(viii) Credit rating
Types of commercial bills are:
(i) Demand and usance bills:
(a) A demand bill is one wherein no specific time of payment is mentioned.
(b) So, demand bills are payable immediately when they are presented to the drawee.
(ii) Clean bills and documentary bills:
(a) Bills that are accompanied by documents of title to goods are called documentary bills.
(b) Clean bills are drawn without accompanying any document.
(c) Example: Railway receipt and Lorry receipt.
(iii) Inland bills and Foreign bills:
(a) Bills that are drawn and payable in India on a person who is resident in India are called inland bills.
(b) Bills that are drawn outside India and are payable either in India or outside India are called foreign bills.
(iv) Indigeneous bills: The drawing and acceptance of indigenous bills are governed by native custom or usage of trade.
(v) Accommodation and supply bills: Accommodation bills are those which do not arise out of genuine trade of transactions.

 
S.No Features Money Market Capital Market 1. Duration of
funds It is a market for short-term loanable funds for a period of not exceeding one year. It is a market for long-term funds
exceeding period of one year. 2. Deals with
Instruments It deals with instruments like commercial
bills (bills of exchange, treasury bill, commercial papers, etc.) It deals with instruments like shares debentures,government bonds, etc. 3 Money Value Each single money market instrument is of large amount.Each certificate of deposits or commercial paper is for minimum of  ₹ 5 lakhs Each single capital market instrument is of small amount. Each share value is ₹10. Each debenture value is ₹100. 4 Role of major
institutions The central bank and commercial banks are the major institutions in the money market Development banks and Insurance
companies play a dominant role in the
capital market. 5 Risk Low credit and market risk High credit and market risk. 6 Liquidity High liquidity in Money Market Low liquidity in Capital Market

The significance of capital market functions are as follows
(i) Savings and Capital Formation
In capital market, various types of securities help to mobilize savings from various sectors of population likes Individuals, Corporate, Government, etc.
(ii) Permanent Capital
The existence of a capital market/stock exchange enables companies to raise permanent capital.
(iii) Industrial Growth
The stock exchange is a central market through which resources are transferred to the industrial sector of the economy.The existence of capital market/stock exchange encourages people to invest in productive channels.
(iv) Ready and Continuous Market
The stock exchange provides a central convenient place where buyers and sellers can easily purchase and sell securities.
(v) Reliable Guide to Performance
The capital market serve as a reliable guide to the performance and financial position of corporate and thereby promotes efficiency.
(vi) Proper Channelization of Funds
The prevailing market price of security and relative yield are the guiding factors for the people to channelize their funds in a particular company.

Following are the nature/characteristic of a capital market.
(i) Securities Market
The dealings in a capital market are done through the securities like shares, debentures, etc.The capital market is thus called securities market.
(ii) Price
The price of the securities is determined based on the demand and supply prevailing in the capital market for securities.
(iii) Participants
There are many players in the capital market.The participants of the capital market include individuals, corporate sectors, Govt., banks and other financial institutions.
(iv) Location
Capital market is not confined to certain specific locations, although it is true that parts of the market are concentrated in certain well-known centers known as Stock Exchanges. It has its impact in the overall economy, wherever suppliers and users of capital get together and do business.
(v) Market for Financial Assets
Capital market provides a transaction platform for long term financial assets.

The financial market two functions:
I. Intermediary Functions
II. Financial Functions
I. Intermediary Functions: The intermediary functions of a financial market include the following
(i) Transfer of resources: Financial markets facilitate the transfer of real economic resource from lenders to ultimate borrowers.
(ii) Enhancing Income: Financial markets allow lenders earn interest / dividend on their surplus investible funds and thus contributing to the enhancement of the individual and the national income.
(iii) Productive Usage: Financial markets allow for the productive use of the funds borrowed, thus enhancing the income and the gross national income
(iv) Capital Formation: Financial markets provide a channel through which new savings flow to aid capital formation of a country
(v) Price determination: 
1. Financial markets allow for the determination of the price of the traded financial asset through the interaction of buyers and sellers.
2. (ii) They provide a signal for the allocation of funds in the economy, based on the demand and supply; through the mechanism called price discovery process.
(vi) Sale mechanism: Financial market provides a mechanism for selling of a financial asset by investor so as to offer the benefits of marketability and liquidity of such assets.
(vii) Information: The activities of the participants in the financial market result in the generation and the consequent dissemination of information to the various segments of the markets, so as to reduce the cost of transaction of financial assets.
II. Financial Functions
1. The financial functions of a financial market include the following
(i) Providing the borrowers with funds so as to enable them to carry out their investment Plans.
(ii) Providing the lenders with earning assets so as to enable them to earn wealth by deploying the assets in productive ventures.
(iii) Providing liquidity in the market so as to facilitate trading of funds

One of the important requisites for the accelerated development of an economy is the existence of a dynamic and a resilient financial market. A financial market is of great use for a country as it helps the economy in the following manner.
(i) Savings Mobilization:
Obtaining funds from the savers or surplus units such as household individuals, business firms, public sector units.Government is an important role played by financial markets.
(ii) Investment:
Financial market plays a key role in arranging the investment of funds thus collected, in those units which are in need of the same.
(iii) National Growth:
 Financial markets contribute to a nation's growth by ensuring an unfettered flow of surplus funds to deficit units.Flow of funds for productive purposes is also made possible. It leads to overall economic growth.
(iv) Entrepreneurship Growth:
Financial markets contribute to the development of the entrepreneurial class by making available the necessary financial resources.
(v) Industrial Development:
The different components of financial markets help an accelerated growth of industrial and economic development of a country and thus contributing to raising the standard of living and the society's well-being.

(i) The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level
(ii) Furthermore, it takes time to pass the issues to managers.
(iii) Managing employees who deviate from the normal procedures.
(iv) Because of compliance failures are considered difficult to manage and typically find themselves with limited job duties and ultimately dismissed / terminated.

The disadvantages of MBO are:
(i) MBO fails to explain the philosophy; most of the executives do not know how MBO works? What is MBO? and why is MBO necessary? and how participants can benefit by MBO?
(ii) MBO is a time consuming process. Much time is needed by senior people for framing the MBO.
(iii) Next, it leads to heavy expenditure. Sometimes, managers are frustrated over MBO. MBO requires heavy paper work.
(iv) MBO emphasises only on short-term objectives and does not consider the long-term objective
(v) The status of sub-ordinates is necessary for proper objectives setting. But, this is not possible in the process ofMBO.
(vi) MBO is rigid one. Objectives should be changed according to the changed circumstances, external or internal.
(vii) If it is not done, the planned results cannot be obtained.
(viii) The objectives are set without considering the available resources.

Functions of management can be classified into two categories.
A. Main functions; and
B. Subsidiary functions.
A. Main functions:
(i) Planning:
(a) Planning is the primary function of management.
(b) Nothing can be performed without planning.
(c) E.g. Writing a book starts with planning.
(ii) Organising:
(a) Organising is the process of establishing harmonious relationship among the members of an organisation.
(b) Organsing function work is assigned to employees who are given authority to carry out the work assigned and made accountable for it.
(iii) Staffing:
(a) Staffing function comprises the activities of selection and placement of competent personnel.
(b) Staffing refers to placement of right persons in the right jobs.
(iv) Directing:
(a) Directing denotes motivating, leading, guiding and communicating with subordinates.
(b) Employees are kept informed of all necessary matters by circulars, instructions man uals, newsletters, notice-boards, meeting, participative mechanism, etc.
B. Subsidiary functions:
(i) Innovation:
(a) Innovation refers to the preparation of personnel and organisation to face the changes made in the business world.
(b) Innovation includes developing new material, new products, new techniques in production, new package, new design of a product and cost reduction.
(ii) Representation:
(a) A manager has to act as representative of a company.
(b) Manager has dealings with customers, suppliers, government officials, banks, financial institutions, trade unions, etc.
(c) It is the duty of every manager to have good relation with others.
(iii) Decision-making:
(a) Everyemployee of an organisation has to take a number of decisions everyday.
(b) Decision - making helps in the smooth functioning of an organisation.
(iv) Communication:
(a) Communication is the transmission of human thoughts, views or opinions from one person to another person.
(v) Workers are informed about what should be done, where it is to be done, how it is to be done and when it is to be done.

Henry Fayol is the father ofmodern management. The following are the major principles of modern management are,
1. Division of Work:
According to this principle the whole work is divided into small tasks. The specialization of the workforce according to the skills of a person,creating specific personal and professional development within the labour force and therefore increasing productivity.
2. Authority and Responsibility:
Authority means the right of a superior to give the order to his subordinates; whereas responsibility means obligation for performance.
3. Discipline:
It is obedience, proper conduct in relation to others, respect of authority, etc. It is essential for the smooth functioning of all organisations.
4. Unity of Command:
This principle states that each subordinate should receive orders and be accountable to one and only one superior.
5. Unity of Direction:
All related activities should be put under one group, there should be one plan of action for them and they should be under the control of one manager.
 

1. Science, Not Rule of Thumb:
(i) Rule of Thumb means decisions taken my manager as per their personal judgements.
(ii) This principle is concerned with selecting the best way of performing a job through the application of scientific analysis and not by intuition or hit and trial methods.
(iii) The work assigned to any employee should be observed and analyzed the time involved, so as to decide the best way of performing that the work to achieve the standard output.
2. Harmony, Not Discord:
(i) Taylor emphasized that there should be complete harmony between the workers and the management.
(ii) Both the management and the workers should realize the importance of each other.
(ii) It becomes possible by
(a) sharing a part of surplus with workers,
(b) training of employees,
(c) division of work,
(d) team spirit,
(e) positive attitude,
(f) sense of discipline,
(g) sincerity etc.
(iv) Management should always be ready to share the gains of the company with the workers and the latter should provide their full co-operation and hard work for achieving organizational goals.
3 Mental Revolution:
(i) The technique of Mental Revolution involves a change in the attitude of workers and management towards each other.
(ii) Both should realize the importance of each other and should work with full co-operation.
(iii) Management as well as the workers should aim to increase the profits of the organisation.
4. Co-operation, Not Individualism:
(i) Co-operation, Mutual confidence, sense of goodwill should prevail among both, managers as well as workers.
(ii) The intention is to replace internal competition with co-operation.
(ii) Workers should be considered as part of management and should be allowed to take part in decision making process of the management.
(iv) Management should always their suggestions and should also reward them if their suggestions prove to be beneficial for the organization for example reduction of costs or increase in production etc.
5. Development of each and every person to his or her greatest efficiency and prosperity:
(i) Efficiency of any organization also depends on the skills and capabilities of its employees to a great extent.
(ii) To attain the efficiency, steps should be taken right from the process of selection of the employees. Employees should be selected.
(iii) The work assigned to each employee should suit his/her physical, mental and intellectual capabilities
(iv) Efficient employees produce more to earn more. This ultimately helps to attain efficiency and prosperity for both organisation and the employees.