MASTER OF BUSINESS ECONOMICS DURATION OF COURSE : 2 YEARS

ELIGIBILITY : ANY DEGREE

COURSE CODE : 315

FIRST YEAR

PAPERS Subject Max. Marks Exam Hrs

1 Business Economics 100 3

2 Economics of Marketing 100 3

3 International Trade 100 3

4 Management Practice 100 3

5 Organizational behavior 100 3

SECOND YEAR

PAPERS Subject Max. Marks Exam Hrs

1 Managerial Economics 100 3

2 Fiscal Economics 100 3

3 Economics of Human Resource

Management 100 3

4 Operation Research 100 3

5 Research Methodology 100 3

Ist - YEAR

Paper - 1

BUSINESS ECONOMICS

UNIT – I

Definition – Meaning and scope of Economics – Micro and Macro Economics –

Economic growth and Economic Development – Role of economics in business decisions –

Economic system and resource allocation.

UNIT – II

Utility analysis of Demand – Demand Analysis and Elasticity of Demand –

Indifference curve Analysis.

UNIT – III

Production Analysis – Law of returns and production functions, supply and elasticity of

supply.

UNIT – IV

Market Analysis – Factor Analysis – Cost Revenue & Break – even Analysis.

UNIT – V

Price policy and pricing methods – Theory of Distribution – National income –

Business cycle – Public finance.

Reference:

Business Economics – by S.Sankaran

Principles of Economics – by D.M.Mithani

Managerial Economics – by S.N. Maheswari

Paper – 2

ECONOMICS OF MARKETING

UNIT – I

Marketing – Definition – Nature and Scope of Marketing – Marketing objectives –

Marketing Process – Marketing Functions – Marketing Mix – Market Planning – Market

Environment – Marketing segmentation.

UNIT – II

Product Planning and Development – Product life cycle – Brand Management – New

Product Development – Distribution channels – Channel choice – Developing a channel

strategy – Retailing and wholesaling – Promotion methods – Advertising – Personal selling.

UNIT – III

Consumer Behavior – Meaning and Definition – theory of consumer Behavior –

appreciation of Indifference curve analysis – Exchange – Index number – Consumer surplus –

Review of Demand Theory – Choice under condition of Risk and uncertaining.

UNIT – IV

Perfect Competition : Features – Price and output determinan in the short and long run,

importance of Time Element – Monopoly: Features, price and output determination, price

discrimination, degrees of monopoly – dumping – Perfect competition – Monopoly

comparison. Monopolistic Competition : Features – price and output determination under

individual and group equilibrium, selling costs, product differentiation – Excess Capacity –

Wastes of monopolistic competition.

UNIT – V

Difference between Internal and International Trade – Need for a Separate Theory of

International Trade – Ricardian Comparative Cost Theory – Modern Theory – Gains from

International Trade and Terms of Trade. Balance of Payments: Current and Capital Accounts –

Causes for Disequilibrium – Methods of Correcting Adverse Balance of Payments – Free

Trade Policy – Protection: forms of Protection on International Trade, Effects of Protection –

role of Protection in Under Developed Countries – The International Monetary Fund and

International Liquidity – The World Bank.

Reference:

1. Monetary Economics : Dr. R. Cauvery et al.

Paper -3

INTERNATIONAL TRADE

1 Introduction: International Trade – Meaning and concepts – scope and

challenges – theories of International Trade – Economic Theories – Modern

Theories – New Theories – Balance of Payments – Trade Barriers.

2 International Business Environment: Globalization of business-WTO and

trade liberalization-emerging issues-implications for India-Regional Trade

Blocks-Inter-regional trade among regional groups.

3 Counter Trades and Foreign Exchange: Forms of Counter Trade – Reasons

for the growth of counter trade – Foreign Exchange Market – SWAP

operations-Determination of Foreign Exchange Rates – Exchange control-

objectives of exchange control-methods of Exchange control.

4 Multinational Corporations and Market Entry Strategies: Definition –

Dominance of MNC‟s – MNC‟s and International Trade – Merits of MNCs –

Demerits-New Trends – code of conduct – MNC in India. Marketing entry

strategies – mergers and acquisitions – Strategic alliance – third country

location - market segment selection.

5 Trade Procedure and Indias Trade Policy: Export regulations – Export

procedures – Export packaging – Insurance – Import Regulations – Import

procedure – Export documentation – Import documentation – Indias Trade

policy – New Import and Export Policy.

Text Book:

1. Francis Cherunilam, International Trade and Export Management, Himalaya Publishing

House, New Delhi.

2. M.N.Mishra, International Marketing Management, Oxford and IBH Pub., New Delhi.

3. John D.Daniels and Lee H.Radebangh, International Business, Pearson Education Asia

New Delhi-2000.

Reference:

1. Cateora, International Marketing, Mc Graw Hill.

2. ONKVISIT, SHAW, International marketing , Prentice Hall India

3. Waran Kegan, Global Marketing Management, Prentice Hall India.

4. Charles W.L.Hill, International Business, Irwin Mc Graw Hill, New York,2001.

5. Anand K.Sundaram and IndiaStewart Black, the International Business Environment,

Prentice Hall of India, New Delhi,2001.

Paper 4

MANAGEMENT PRACTICE

1 Basics of Management: Definition of Management - Evolution of

Management thought – Early & Modern Approaches - Management Vs.

Administration – Management Science or Art.- Managers vs. Entrepreneurs-

Managers vs. Leaders.

2 Planning: Nature and Importance- steps in planning- types of plans- Planning

premises – Objective- Characteristics and Hierarchy of objectives-

Management by objectives- Management by Exception.

3 Organizing: Nature of organizing- formal and informal organization-structure

and process of organizing- authority and responsibility- Delegation of

authority- Departmentation and its basis - Decision making-Styles of Decision

Making.

4 Staffing and Directing: Staffing- purpose of staffing- recruitment and

selection- training and development- performance appraisal- principles of

direction- elements of direction- span of supervision- Motivation- Leadership

– Communication.

5 Controlling: Concept of Managerial Control - Nature of control - Needs for

control - Significance and limitations of control - Types of control - Control

process – Control techniques: Traditional and Modern Techniques.

Text Books:

1. Tripathi and Reedy “ Principles of Management” TMH Edition II, 1994.

2. Hereld Koontz and Heinz weihrich “Essentials of Management” McGraw Hill Publishing

House, Singapore International Edition, 1990

Reference:

1. L.M. Prasad, “Principles and Practice of Management” Sultan chand and sons Publishers

2. Joseph. L. Massie “Essentials of Management” Prentice Hall, 1985.

3. Stephen P Robbins and David A Decenzo “Fundamentals of Management” , Pearson

Education, Third Edition, 2000.

4. C.B.Gupta - Management: Theory and Practice, Sultan chand and sons Publishers

Paper - 5

ORGANISATIONAL BEHAVIOUR

1 Focus and Purpose: Definition, need and importance of Organisational

behaviour-Nature and scope-Framework-Organisational Behaviour Models.

2 Individual Behavior: Personality-Types-Factors influencing personality-

Theories. Learning-Types of Learners-The Learning Process-Learning

Theories-Organisational Behaviour Modification. Attitudes-formation of

attitude –measurement of attitude. Perception-Importance-Factors influencing

perception-Interpersonal perception. Motivation-Importance-Types-Effects on

work behaviour.

3 Group Behaviour: Organisation Structure-Formation-Groups in

Organisations-Influence-Group Dynamics-Emergence of informal leaders and

working norms-Group Decision Making Techniques-Interpersonal relations-

Communication-Control

4 Leadership and Power: Meaning-Importance-Leadership styles-Theories-

Leaders vs Managers-Sources of Power, Power Centers-Power and Politics.

5 Dynamics of Organisational Behavior: Organisational Climate-Factors

affecting Organisational climate-Importance. Job Satisfaction-Determinants-

Measurement-Influence on behaviour. Organisational change-Importance-

Stability vs change-Proactive vs Reactive change-The change process-

Resistance to change-Managing change.Organisational Development-

Characteristics-Objectives-Team building. Organisational Effectiveness-

Perspectives-Effectiveness vs efficiency-Approaches - The Time Dimension-

Achieving organisational effectiveness.

Text Books:

1. Stephen P.Robbins, Organisational Behaviour, Prentice Hall of India, 9th Edition, 2001.

2. Hellriegel, Slocum and Woodman, Organisational Behavior, South-Western, Thomson

Learning, 9th edition, 2001.

References:

1. Schermerhorn, Hunt and Osborn, Organisational Behavior, John Wiley, 7th

edition 2001.

2. Jit S.Chand, Organisational Behavior, Vikas Publishing House Pvt.Ltd, 2nd

edition 2001.

3. Fred Luthans, Organisational Behavior, Mc Graw Hill Book Co., 1998.

4. New Strom and Davis, Organisational Behaviour, Mc Graw Hill-2001.

SECOND YEAR

Paper - 6

MANAGERIAL ECONOMICS

1 Scope of managerial economics, demand analysis, basic concepts, tools for

demand forecasting, use of business indicators, Elasticity concepts.

2 Cost and production functions, short and long run cost functions, cost-price

output relations, input-output analysis

3 Market Structure- pricing and output General equilibrium, perfect competition

and monopolistic competition.

4 Nature and Scope of macro economic issues:

Circular flow of income-national income concepts-methods of measuring

national income – difficulties in measuring national income - the role of

economic planning-Indian economic planning.

5 Analysis of external sector:

International Trade -the role of trade policy – Balance of payments - analysis

of performance of Indian economy in external sector.

Text Book:

1. Sloman, John, Economics, Prentice-Hall of India Pvt.Ltd., New Delhi, 1998.

2. Dr.Sankaran, s., Managerial Economics, Margham Publications, Chennai, 1999, 4th

ed.

3. Dwivedi D.N.Macroeconomics-Theory and Policy, Tata Mc Graw Hill Publishing Co.Ltd,

New Delhi,2001.

References:

1. Ruddar Dutt and K.P.M. Sundaram, Indian Economy, S.Chand and Co., Ltd,New Delhi-

2002.

2. Irvin B.Tucker Macroeconomics for Today, Thomson Learning-2001.

3. Government of India, Economic Survey (Annual Publication, New Delhi)

4. Business dailies like Economic Times, Financial Express and Business Line.

5. Economic and political weekly.

6. World Bank and IMF Reports.

7. T.N.Hajela, “Macro Economic Theory” Konark Publishers Pvt. Ltd., Delhi. – 1998.

8. Varshney, R.L.and maheswari, K.L., Managerial Economics, sultanchand, NewDelhi,

1999, 14th Ed.

9. Adhikary, M.Managerial Economics, Khosla Publishing House, New Delhi, 1996, 3rd

Ed.

Paper - 7

FISCAL ECONOMICS

UNIT I

Welfare Economic Functions of Public Finance : Multiple Theory of Public House

Hold – Allocation, distribution and stabilization functions – private goods – public goods –

merit goods – market failures – externalities – efficiency rules for the provision of private and

public goods – second best economy.

UNIT II Theory and Practice of Public Expenditure :

Canons of Public Expenditure - Pure Theory of Public Expenditure., Pigou, Lindahl,

Samelson, Musgrave. Evaluation of Public Expenditure : Cost – benefit analysis – fixed and

variable budget – long term projects and the need for discounting. Risk and uncertainly in

public investment decisions. Structure and growth of the expenditure of the Govt. of India and

Govt. of Tamilnadu.

UNIT III TAXATION

Definition – canons – objects – Structure of taxation – Williamson, Horichs, Musgrave,

Lutz-Chelliah role and effectsof taxations – on growth and distribution of income – principles

of taxation – fiscal neutrality – doctrine of excess, burden – equity – benefit – equal sacrifice

and equity – theoretical background for progressive taxation – shifting and incidence of

taxation – traditional and modern analysis – dynamic incidence – tax reforms in India –

Kaldor, Wanchoo, K.N.Raj, Chokshi, L.K.Jha, Committees recommendations.

UNIT IV

Public debt – Classical, Keynesian and post Keynesian views – techniques of

borrowing – Management, burden effects – redemption – public dept of the Govt. of India.

Deficit financing – conceptual difference in USA, UK and India – extent, effect, and role as a

tool of financing five year loans. Budget – coordination in India. Fiscal policy – objectives –

tools and techniques fiscalists versus monetarist – its role in developed and developing

countries.

UNIT V

Theory of fiscal federalism – federal finance in India recommendations of finance

commissions – Dr.P.V.Rajamammar Committee‟s Report.

Reference :

1. Musgrave RA : Theory of Public finance (all the units)

2. Musgrave & Musgrave Public finance in theory and practice (all the units)

3. Musgrave : Fiscal Systems (Unit I)

4. N.Kaldor : Essays on value and distribution (Unit I)

5. Hyman, David : The economics of Governmental Activity (Unit I)

6. Hyman, David : Public finance : A Contemporary application of theory to

policy (Unit I)

7. Twiney : Public enterprise (Unit I)

8. Buchanan : The demand and supply of public goods (Unit I)

9. Musgrave & AT Peacock : Classics in the theory of public finance (Unit I)

10. S.K. Singh : Public finance in developed and developing countries (Unit I)

11. V.K.Subramaniam : The Indian financial system ((Unit II)

12. Millard, Robert : Public expenditure economics (Unit I)

13. K.N.Reddy : The growth of public expenditure in India (Unit II)

Paper - 8

ECONOMICS OF HUMAN RESOURCE MANAGEMENT

1

Perspectives in Human Resource Management: Evolution of Human

Resource Management-The Importance of Human Factor-Objectives of

Human Resource Management-Role of Human Resource Manager-Human

Resource Policies-Computer Applications in Human Resource Management.

2 The Concept of Best Fit Employee: Importance of Human Resource

Planning-Forecasting Human Resource requirements-Internal and External

sources. Selection Process-Screening-Tests-Validation-Interview-Medical

Examination-Recruitment. Induction-Importance-Practices-Socialisation

benefits.

3 Training and Executive Development: Types of training methods-Purpose-

Benefits-Resistance. Executive development programmes-Common practices-

Benefits-Self Development-Knowledge Management.

4 Sustaining Employee Interest: Trade Union – Objectives – Growth –

difficulties-recommendation for strengthening Trade Union - Compensation

Plans-Rewards - Workers Participation in Management.

5 Performance Evaluation: Methods of Performance Evaluation-Feedback-

Industry practices. Promotion, Demotion, Transfer and Separation-

Implications of job change. Grievances-Causes-Implications-Redressal

Methods

Text Books:

1. Decenzo and Robbins, Human Resource Management, Wiley, 6th edition,2001.

2. Biswajeet Pattanayak, Human Resource Management, Prentice Hall of India,2001.

3. K.Aswathappa, Human Resource and Personnel Management, TMH, 3rd

Edition 2002.

References:

1. Eugene Mckenna and Nic Beach. Human Resource Management, Pearson Educatin

Limited,2002.

2. Dessler, Human Resource Management, Pearson Education Limited,2002.

3. Mamoria C.B.and Mamoria S.Personnel Management, Himalaya Publishing Company-

1997.

4. Wayne Cascio, Managing Human Resources.Mc.Graw Hill,1998.

5. Invancevich, Human Resource Management Mc Graw Hill,2002.

Paper - 9

OPERATION RESEARCH

1 Linear Programming Problems(LPP) : LPP- Meaning – Formulation of LPP

- Graphical Method - Simplex solution- Big M Method.

2 Transportation & Assignment Problems: Transportation problem-North -

West corner Solution – Least Cost Method – Vogel‟s Approximation Method-

Stepping Stone Method - MODI Method-Degeneracy, unbalanced matrix.

Assignment model- Hungarian method- Traveling salesmen problem.

3 Sequencing Problem and Game theory: Sequencing Problem – Processing N

jobs through 2 Machines- Processing N jobs through 3 Machines -Processing

N jobs through M Machines- Processing 2 jobs through M Machines. Game

Theory – Meaning – Saddle Point – Two persons Zero Sum Games-

Dominance Property- Graphical and L.P.model problems.

4 Network Project Scheduling &Replacement Theory : Network and Basic

Components- Rules – CPM and PERT for project scheduling- Resource

leveling, crashing, Resource planning. Replacement Theory – Introduction-

Replacement of items with gradual Deterioration – Items that fail completely

and suddenly.

5 Decision Theory: Decision making under certainty - Decision making under

Uncertainty- Decision making under risk: Expected value , EVPI- Decision

trees Analysis.

Text Books:

1. R.Panneerselvam, "Operations Research", Prentice Hall of India-2002.

2. Hamdy A Taha, "An Introduction to Operations Research Prentice Hall, Sixth edition-

2000.

3. J.K.Sharma, "Operations Research. Theory and Applications", Macmillan-1997.

Reference Books:

1. P.K.Gupta.D.S.Hira, "Problems in Operations Research", S.Chand & Company-2002.

2. P.K.Gupta and D.S.Hira, "Operations Research", S.Chand & Co.Ltd., New Delhi-2002.

3. C.K.Mustafi, "Operations Research: Methods and Practice", New Age International(P)

Ltd., Publisher-2000.

4. S.Kalavathy, "Operations Research", Vikas Publishing House(P) Ltd-2000.

5. Dr.N.G.Nair, “Resource Management Techniques” Vikas Publishing House(P)Ltd

Paper - 10

RESEARCH METHODOLOGY

UNIT I

Meaning of Research-Types of Research-Logical Methods – Scientific Methods –

Defining Research Problem – Research Design Problems pure Applied, Action and Evaluation

Research, Economic Research and its Significance for Policy.

UNIT II

Formulation of Hypothesis - Methods of Social Survey – Cases and Sample Survey –

Sample ring Design – Sources of Data – Types of Data – Methods of Data Collection –

Processing of Data Tabulation – Presentation – Statistical Tools. Correlation – Simple

Correlation - Multiple Correlation – Regression – Simple Regression – Multiple Regression.

UNIT III

Characteristics of Statistical Methods for Economic Analysis – Model Buildings –

Econometric Models - Steps in Econometric Research - Multivariate Analysis – Factor

Analysis – Path Analysis.

UNIT IV

Teaching of Hypothesis – Types of Errors – Parametric – Non Parametric – Standard

Tests of Hypothesis „T‟ Test – „Z‟ Test – „F‟ Test- Chi Square Test.

UNIT V

Thesis and Report Writing Different Stages in Writing Report – Layout of the Research

Reports – Types – Precaution for Writing Research Reports.