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    CH 4 Question Bank Answers

    Uploaded by

    Kunal Budhwant

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    CH 4 Question Bank Answers

    Uploaded by

    Kunal Budhwant
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    Ch 4 Question Bank Answers

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    4 views5 pages

    CH 4 Question Bank Answers

    Uploaded by

    Kunal Budhwant

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    What are the financial stages of startup?

    1. Pre-seed Stage
    • Objective: Developing the initial idea or prototype.
    • Funding Source: Founders’ savings, friends, family, and angel investors.
    • Focus: Building a Minimum Viable Product (MVP) and early market research.

    2. Seed Stage
    • Objective: Early commercialization.
    • Funding Source: Angel investors, seed funds, incubators, accelerators.
    • Focus: Product refinement, market research, and initial customer acquisition.

    3. Series A
    • Objective: Scaling up the business.
    • Funding Source: Venture capital firms.
    • Focus: Optimizing the product, expanding the user base, and generating revenue.

    4. Series B
    • Objective: Expansion.
    • Funding Source: Larger venture capital firms.
    • Focus: Growing the team, entering new markets, and scaling operations.
    • Valuation: $30M–$60M+.

    5. Series C
    • Objective: Large-scale growth and diversification.
    • Funding Source: Late-stage VCs, hedge funds, private equity firms.
    • Focus: Global expansion, product diversification, or acquisitions.

    6. Series D
    • Objective: Addressing challenges or accelerating growth.
    • Funding Source: Institutional investors, private equity firms.
    • Focus: Overcoming setbacks, preparing for an IPO, or creating new growth opportunities.
    • Valuation: High but can vary significantly.

    7. Series E (or beyond)


    • Objective: Last round before an IPO or acquisition.
    • Funding Source: Large institutional investors.
    • Focus: Maximizing market share or resolving last-minute hurdles.
    • Valuation: Substantially high, often reaching or exceeding 100 crores.

    Final Stage: IPO or Acquisition


    • Objective: Going public or being acquired.
    • Focus: Liquidity for investors and founders.
    Financial vs. Non-Financial Motivation

    Financial Methods:

    1. Salaries and Wages – Regular income; basic motivator.


    2. Bonuses – Extra pay for performance; encourages hard work.
    3. Profit Sharing – Distributes profits, creating ownership.
    4. Commissions – Percentage of sales, motivating higher performance.
    5. Stock Options – Aligns employee goals with company growth.

    Pros: Tangible, measurable, boosts short-term performance.


    Cons: Short-lived impact, potential unhealthy competition, costly.

    Non-Financial Methods:

    1. Recognition – Public praise boosts morale.


    2. Career Development – Training and growth opportunities.
    3. Job Enrichment – More responsibility and variety.
    4. Flexible Work – Improves work-life balance.
    5. Positive Culture – Supportive environment enhances loyalty.

    Pros: Long-lasting, cost-effective, improves satisfaction.


    Cons: Hard to measure, varies by employee, needs consistency.

    Thus,
    Financial rewards offer short-term boosts, while non-financial methods foster long-term
    engagement and loyalty. A balanced approach is ideal.
    What are the 5 P’s of Strategic Management Process?

    The 5 P's of Strategic Management, developed by Henry Mintzberg, represent different


    perspectives through which strategy can be understood. Here's a pointwise breakdown:

    1. Plan

    • Definition: A strategy as a carefully crafted plan for future actions.


    • Objective: To establish a clear direction and outline steps to achieve goals.
    • Example: A company planning to enter a new market or launch a new product.

    2. Ploy

    • Definition: A specific maneuver intended to outsmart or outmaneuver a competitor.


    • Objective: To use tactics that can gain a competitive edge.
    • Example: Temporarily lowering prices to undercut a competitor.

    3. Pattern

    • Definition: A consistent behavior or pattern of decisions, whether intended or not.


    • Objective: To recognize strategies emerging from repeated actions over time.
    • Example: A company consistently expanding through acquisitions reflects a growth
    strategy.

    4. Position

    • Definition: A strategy as a means to position the organization within the market or


    environment.
    • Objective: To define how the company is positioned relative to competitors.
    • Example: Being the low-cost provider or the premium product in the market.

    5. Perspective

    • Definition: A strategy as a shared perspective or vision within the organization.


    • Objective: To cultivate a long-term organizational culture or mindset.
    • Example: A company’s commitment to innovation as a core value.

    These 5 P's help managers think of strategy not just as a plan but also as something shaped by
    external and internal factors, competitors, and evolving trends.
    State the 5 principles of Scientific Management by Taylor.

    The 5 principles of Scientific Management by Frederick Winslow Taylor aim to improve


    efficiency and productivity in organizations. Here's a pointwise breakdown:

    1. Science, Not Rule of Thumb

    • Definition: Replace traditional, rule-of-thumb methods with a scientific approach to


    work.
    • Objective: Base decisions on data, analysis, and objective studies to improve efficiency.
    • Example: Studying the best way to perform a task, like optimizing workflow on an
    assembly line.

    2. Harmony, Not Discord

    • Definition: Ensure collaboration and harmonious relationships between workers and


    management.
    • Objective: Promote cooperation and reduce conflict by aligning interests.
    • Example: Creating transparent communication channels to resolve misunderstandings.

    3. Mental Revolution

    • Definition: Change the mindset of both workers and management.


    • Objective: Promote the idea that both parties benefit from improved productivity and
    collaboration.
    • Example: Management should support workers with better tools and training, and
    workers should adopt improved work methods.

    4. Cooperation, Not Individualism

    • Definition: Encourage cooperation between managers and workers rather than allowing
    individuals to work in isolation.
    • Objective: Foster teamwork to achieve shared goals and increase productivity.
    • Example: Managers work closely with employees to set realistic performance targets.

    5. Development of Each Person to Their Greatest Efficiency and Prosperity

    • Definition: Focus on developing workers' skills and capabilities to maximize their


    potential.
    • Objective: Enhance productivity by training employees to work efficiently.
    • Example: Providing training programs that teach best practices for each task.

    These principles aim to create a more efficient, productive, and harmonious work environment.
    Considering recruitment and selection of candidates, how the HR should proceed from the scratch in the HR
    planning process?

    Here’s how HR should proceed with the recruitment and selection process, starting from the HR planning stage:
    1. Assess Organizational Needs
    • Objective: Understand current and future manpower requirements.
    • Steps:
    − Conduct a workforce analysis to identify gaps.
    − Forecast future needs based on company goals and market conditions.
    • Example: Identifying the need for a new marketing team for product expansion.

    2. Job Analysis and Design


    • Objective: Define the roles and responsibilities for the position.
    • Steps:
    − Perform a job analysis to determine the skills, qualifications, and tasks required.
    − Create or update job descriptions and specifications.
    • Example: Listing qualifications and responsibilities for a software developer position.

    3. Develop a Recruitment Strategy


    • Objective: Plan how to attract suitable candidates.
    • Steps:
    − Decide whether to recruit internally or externally.
    − Choose recruitment channels (job boards, company website, recruitment agencies).
    • Example: Posting the job on LinkedIn and collaborating with recruitment firms.

    4. Sourcing and Screening


    • Objective: Attract and identify potential candidates.
    • Steps:
    − Source candidates through advertisements, referrals, and social media.
    − Screen resumes to shortlist candidates who meet the job criteria.
    • Example: Using an Applicant Tracking System (ATS) to filter candidates.

    5. Selection Process
    • Objective: Assess and select the best candidate for the role.
    • Steps:
    − Conduct interviews, assessments, and background checks.
    − Compare candidates’ skills, experience, and cultural fit.
    • Example: Organizing multiple rounds of interviews with department heads.

    6. Onboarding
    • Objective: Smooth transition of the selected candidate into the organization.
    • Steps:
    − Provide training and orientation to integrate the new employee.
    • Example: Scheduling an orientation session to familiarize the new hire with company policies.
    This structured approach ensures HR aligns recruitment with the organization’s strategic needs.

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