Management, Ethics and Communication for CS Foundation Tejpal Sheth Practising Company Secretary and Visiting Faculty ICSI – Ahmedabad Chapter Milan Shah Assistant Professor Gandhinagar Institute of Technology (GIT) Gujarat Technological University, Ahmedabad AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd ii 22//1144//22001133 1111::5511::3355 AAMM Copyright © 2013 Dorling Kindersley (India) Pvt. Ltd. Licensees of Pearson Education in South Asia No part of this eBook may be used or reproduced in any manner whatsoever without the publisher’s prior written consent. This eBook may or may not include all assets that were part of the print version. The publisher reserves the right to remove any material in this eBook at any time. ISBN 9788131793824 eISBN 9789332514058 Head Office: A-8(A), Sector 62, Knowledge Boulevard, 7th Floor, NOIDA 201 309, India Registered Office: 11 Local Shopping Centre, Panchsheel Park, New Delhi 110 017, India AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd iiii 11//88//22001133 33::0044::5599 PPMM Contents Preface v About the Authors vii Before Examination ix Chapter 1 Nature of Management and Its Processes 1 Chapter 2 Planning 40 Chapter 3 Organization 79 Chapter 4 Human Resources Management 130 Chapter 5 Direction and Co-ordination 178 Chapter 6 Controlling 232 Chapter 7 Recent Trends in Management 270 Chapter 8 Business Ethics 319 Chapter 9 Business Communication 329 Chapter 10 Essentials of Good English 345 Chapter 11 Business Correspondence-I 387 Chapter 12 Business Correspondence-II 395 Chapter 13 Administration 399 Chapter 14 Inter-Departmental Communication 405 Chapter 15 Preparation of Press Release 410 Chapter 16 E-Correspondence 415 Mock Test Paper 419 AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd iiiiii 11//88//22001133 33::0044::5599 PPMM This page is intentionally left blank. AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd iivv 11//88//22001133 33::0044::5599 PPMM Preface It is a matter of immense pleasure for us to present before you the book entitled Business Management, Ethics and Communication to the students of Company Secretary of India for foundation examina- tion, an entry-level test for CS Course. The ICSI has introduced new syllable, since February 2012, for foundation course. New CS foundation course will test the basic knowledge of students on the following four subjects: 1. Business environment and entrepreneurship 2. Business management, ethics and communication 3. Business economics 4. Fundamentals of accounting and auditing The foundation course consists of four papers. Each paper has 100 marks multiple-choice questions (MCQs). The examination for foundation programme under new syllabus will be held in two days, each day having two sessions of two hours. The existing foundation examination that is presently con- ducted in descriptive format has been replaced by MCQs pattern. Since the new foundation course comprises only MCQs, while writing this book, we attempted to give maximum number of MCQs. The book consists of 4000+ MCQs. The important features of the book is that the subject matters have been divided into different topics and topic-wise MCQs have been given to enable students to answer all the possible type of questions under particular topics. These questions ensure the clarity of concepts and will enable the students to have thorough understanding of the subject and will also help them in choosing the correct available options with accuracy. The Institute of Company Secretaries of India has decided that fi rst examination under new s yllable will be held from December 2012 session in optical mark recognition (OMR) format, whereby stu- dents are requested to answer MCQs on OMR sheet by darkening the appropriate choice by HB pencil. One mark will be awarded for correct answer. There is no negative mark for incorrect answer. Model test paper based on the pattern prescribed by the directorate of academics, ICSI, has also been included to enhance the utility of book. All these features go to make the book a complete and comprehensive book on the subject. We earnestly hope that this book will meet the requirement of the students of CS Foundation. We are highly indebted to CS. Umesh Ved, CS. Hitesh Buch, CS. B. G. Pandya, Mr Ashish Dholakia and Ms Charu Dholakia. We should not forget the contribution of CS. Jigisha Thakkar who has worked untiringly on fi nalization of the book. We wish to place on record the co-operation and support extended by Mr Dhiraj Pandey, Mr M. Balkrishnan, Mr Varun Goenka and Mr Naresh of Pearson India. In the event of any suggestion, student and faculty may write to [email protected]. AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd vv 11//88//22001133 33::0044::5599 PPMM This page is intentionally left blank. AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd vvii 11//88//22001133 33::0044::5599 PPMM About the Authors Tejpal Sheth is an associate member of the Institute of Company Secretaries of India (ICSI) and holds an MBA degree in international business and a diploma in pharmacy. He has taught innumerable students of CA, CS, ICWA, MBA, BBA, CPA (USA) and the Global CFA programme on various topics such as mercantile law, business law, corporate law, regulation, business ethics and communication. Milan Sureshchandra Shah is an assistant professor in MBA Department, Gandhinagar Institute of Technology, affi liated to Gujarat Technological University, Ahmedabad. He is pursuing his Ph.D. in fi nancial management from Sardar Patel University and has M.Com., CAPE-II, UGE-NET. He has more than fi ve years of industry experience and more than eight years of academic expe- rience. He has presented research papers in various national and international conferences. AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd vviiii 11//88//22001133 33::0044::5599 PPMM This page is intentionally left blank. AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd vviiiiii 11//88//22001133 33::0044::5599 PPMM Before Examination ANSWERING MCQs Read questions very carefully. Watch out for double negatives such as ‘Which of the following is not incorrect…’. It is very important not to miss words, or part of words, by reading too quickly. For non-numerical questions, read all answer choices. Do not just stop when you get to one that sounds right; there may be a better choice. For long questions, dissect the bits of information that are provided. What information is relevant? What is most specifi cally related to the questions? Often a wrong answer looks good because it is consistent with information in the question that is actually irrelevant. After you read the question, determine what you think the question is asking. This can help you fi lter out extraneous information and focus quickly on appropriate answer choice. Similarly, after you read the question, it is good idea to formulate your own answer before reading the answer choice. Develop an expectation of what the answer should be. This may make the correct answer sound better to you when you read it. Do not look for patterns in answers. Just because the last three questions all had ‘C’ for an answer, do not expect the next answer not to be ‘C’. There is no reason to expect that ICSI institute has pattern. Be very sure that you are marking your answer in the right place on the answer sheet. If you skip questions, be especially careful to check yourself. Obviously, mis-marking can be devastating if you do not catch it right away. Finally and probably most important, do not lose confi dence. Even if you struggled on a few questions, may be even fi ve or six in a row, do not lose confi dence. UNDERSTANDING VARIETIES OF MCQs This book consists of following varieties of MCQs. In the examination also, you will fi nd these types of MCQs. 1. Sentence completion with four choices, such as following: Required skill – To answer this type of MCQs, student should have basic knowledge of theory. AA0011__SSHHEETTHH33882244__0011__SSEE__PPRREELL..iinndddd iixx 11//88//22001133 33::0044::5599 PPMM