Critically Evaluate Globalisation of Indian Economy

 Q. Critically evaluate globalisation of Indian economy.

Ans. Globalisation means linking the economy of a country with the economies of other countries by means of free trade, free mobility of capital and labour, etc. It also means inviting multinational corporations to invest in India. As a result, there will be unrestricted flow of goods and services, capital, capital, people, technology and expertise among different countries of the world. There will be increased cooperation of Indian economy with different economies across the world. Capital and technology will flow from the developed countries of the world towards India. The ultimate aim of globalisation is to look upon the world as a ‘global village’. 

Evaluation: It is very necessary to have knowledge of effects of globalization in order to make its evaluation. Globalisation has both positive and negative effects on Indian economy. 

(A) Positive Effects of Globalisation:

1. Increase in Foreign Trade: As a result of foreign trade policies adopted in the weak of globalisation, India’s share in the world trade has gone up. 

2. Increase in Foreign Investment: As a consequence of globalisation, there has been a considerable increase in foreign direct investment as well as foreign portfolio investment. 

(a) Foreign Direct Investment (FDI): Foreign direct investment is made by foreign companies in order to establish wholly owned companies in another country and to manage them or to purchase shares of companies in another country for the purpose of managing such companies. The main characteristic of foreign direct investment is that native companies are managed by the foreign companies or new companies are set up in india by foreign companies. In this type of investment, it is the foreign investors who takes risk and is solely responsible for profit/loss of such company. 

(b) Portfolio Investment: Under this type of investment, foreign companies/foreign institutional investors (FIIs) buy shares/debentures of native companies, however management and control remain vested with the native/domestic companies themselves. 

Because of significant increase in foreign investment, India began to experience improvement in foreign exchange reserves. 

3. Increase in Foreign Collaborations: Globalisation has promoted collaboration of foreign companies with many Indian companies. These collaboration agreements can be technical collaboration, financial collaboration or both. In financial collaboration, foreign companies provide financial resources, while in technical collaboration modern foreign technology is provided by foreign companies. Foreign companies are setting up many enterprises in India in collaboration with Indian companies. 

4. Increase in Foreign Exchange Reserves: As a result of globalisation of Indian economy, foreign exchange reserves have also increased substantially. 

5. Expansion of Market: Globalisation has expanded the size of market. It has permitted Indian business units to expand their business in the whole world. Now multinational corporations have no national boundaries. Indian companies like Infosys, Tata Consultancy, Wipro, Tata Steel, Reliance, etc. are doing their business in many countries.

6. Technological Development: Globalisation has enabled the inflow of foreign technology, which is very superior and advanced. Now Indian business units use this modern technology.

7. Brand Development: Globalisation has promoted the use of branded goods. Now not only durable goods are branded but products like garments, juices, snacks, food grains, etc., are also branded. Foreign brands are very popular among Indian consumers. Brand development has  led to quality improvement.

8. Development of Service Sector: Globalisation has helped in development of Indian capital market. Now many foreign investors invest in Indian capital market. There has been substantial increase in inflow of foreign direct investment and portfolio investment. 

9. Development of Service Sector: Globalisation has helped in growth of service sector. With the entry of foreign countries, tremendous improvement has been witnessed in various services like telecommunication, insurance, banking, etc. 

10. Increase in Employment: Globalisation has promoted employment opportunities. Foreign companies are establishing their production and trading units in India. It has increased employment opportunities for Indians, e.g. many Indians are presently employed in foreign insurance companies, mobile companies, etc. 

11. Reduction of Brain Drain: As a result of globalisation, many multinational corporations have set up their business units in India. These MNCs provide attractive salary package and good working conditions to efficient, skilled Indian engineers, managers, professionals, etc. Now Indians get good employment opportunities in India. It has resulted in reduction in brain drain. 

12. Improvement in Standard of Living: As a result of globalisation, the standard of living of Indian population. Now Indians get better quality goods at low prices.  Globalisation has resulted in reduction of prices of many products particularly electronic items like television, AC, mobile phones, refrigerator, etc. Now middle-income group also uses these luxury products, bids were earlier used by rich class only.

(B) Negative Effects of Globalisation:

1. Ĺoss to Domestic Industries: As a consequence of globalisation, foreign competition has increased in india. Now Indian industrial units have to compete with foreign industrial units. Because of better quality and low cost of foreign goods, many industrial units have failed to face competition and have been closed. Small and cottage industries are worst hit by this increased competition. 

2. Unemployment: Foreign companies operating in India use capital intensive technology. Even some Indian companies use imported capital intensive technology. With the increasing use of computers and automatic machines, employment avenues are reduced.

3. Exploitation of Labour: Globalisation is exploiting unskilled workers by giving lower wages, less job security, long working hours. Labourers have to work even in these conditions because bad job and less wages are better than no jobs.

4. Demonstration Effect: With the easy availability of foreign goods, demonstration effect has increased among Indians. Now many consumers are using luxury products by imitating others. It has promoted tendency of wasteful consumption in India. This increasing wasteful expenditure has in turn reduced saving and capital information.

5. Increase in Inequalities: Globalisation has increased inequalities in our economy.  Globalisation has beneftted MNCs and big industrial units but small and cottage industries are adversely hit by it. It has increased income inequalities in India.

6. Dominance of Foreign Institutions: With globalisation domination of foreign institutions has increased in India. Globalisation has helped foreign companies in enlarging their market share.  For example, in Indian cold drink market, a large share is controlled by Pepsi and Coca-Cola, which are foreign companies.

7. Bad Effect on Culture and Value System: Many global companies sell such products as distort our culture and value system. The vulgar advertisements shown by some MNCs pollute the thinking of young generation. Some MNCs indulge in unethical and corrupt practices for their self-interest. These companies do not hesitate to offer bribe to high officials of host nation to allow them to enter into such transactions which only serve their own interest.

8. Less Entry in Strategic Areas: The global companies mostly take entry in consumer goods like readymade garments, cosmetics, processed foods, soft drinks, toothpaste, etc. These goods do not play vital role in the economic development of any nation. The global companies do not invest in strategic areas like power sector, steel industry, fertilizers, etc. The entry in risky projects is also very limited. Similarly, there is insufficient entry of global companies in the area of technology and capital goods. [Strategic means important or essential]

9. Problem of Brain Drain: The global companies recruit qualified and skilled engineers, technicians, experts in the host nations and after sometime, these experts are posted abroad in their foreign subsidiaries/head office. That way, global companies drain talented persons of host nation to other nations.

10. Production of Prohibited Goods: In order to get more profits, global companies indulge in production of even those goods which are harmful for the consumers. Many a times, the global companies indulge in production of such medicines and other products, the production of which is otherwise banned in their parent nation. Thus, global companies earn profit even at the cost of health of consumers. 

11. Political Interference: The global companies prove detrimental to the economic and political freedom of host countries. These companies interfere in the politics of host nation. These global companies make all efforts to bring that political party to power in the host country which is favourably inclined to them.

12. Unbalanced Regional Development: Global companies set up industries in developed cities and towns where infrastructural facilities are easily available and not in backward areas. It leads to further development of already developed areas and backward areas continued to remain backward. As a result, regional disparities increase.

13. Tax Evasion: The host country imposes corporation tax on the income of companies. To avoid this tax, global companies reduce their profits by adopting transfer pricing methods. Under this method, global companies buy intermediate goods from their subsidiaries abroad at high price and thus reduce their local profits. Similarly, global companies export their products to their subsidiaries abroad at lower prices, so as to under-value the exports and thereby show lower local profits. In other words, global companies over-invoice the imports and under-invoice the exports, so as to show less profits. That way through manipulation of bills, global companies evade tax. 

Differentiate a single user operating system and a multi user operating system.

 Q. Differentiate a single user operating system and a multi user operating system. 

Ans. Single User System: In this kind of system the processor or a computer does only one job at a time. That is at one point of time only one task can be performed. For example : MS-DOS.

Multi User System: This type of system is used by more than one user. It allows the interaction of one user with the other. It also helps in executing more than one task at a particular time. For example : Unix and Windows NT.

Difference between Single User & Multi User O.S.

SINGLE USER (OS)	MULTI USER (OS)
1. Single person can use at a time.	1. More than one user can use at a time.
2. Standalone	2. Many systems are connected with one system.
3. More secure	3. Less secure.
4. No sharing of data	4. Sharing of data
5. More interactive	5. Less interactive.
6. Simple	6. Complex
7. Cheap	7. Costly
8. Less functions	8. More functions
9. Small in size	9. Large in size
10. Examples are DOS, Windows	10. Examples are Windows NT, Unix

Single User And Multi User Operating System.

What is Delegation of Authority? Its Difference from Decentralisation and Importance

 Q. What do you mean by delegation of authority? How is it different from decentralisation? What is the importance of delegation of authority? 

Ans. Meaning of Delegation of Authority: Delegation of authority is an important part of the organising process. Its need felt when due to excessive workload on a manager, he is unable to perform all jobs independently. In this situation, he divides his work among the subordinates. But, just mere a division of work does not guarantee success. For the successful work performance, authority should be given to the subordinates to take work decisions. Thus, dividion of work and assigning authority for the successful work performance is called delegation of authority. 

Delegation of authority is the process of entrusting responsibility and authority, and creating accountability of the person to whom work or responsibility has been handed over. 

According to F.G. Moore, “Delegation of authority means assigning work to others and giving them authority to do it.”

Difference between Delegation and Decentralisation: Delegation refers to the process of assigning responsibility and authority to subordinates to perform specified tasks. On the other hand, Decentralisation refers to the systematic dispersal of authority throughout the organisation to lower levels of management. The difference between Delegation and Decentralisation is as follows :

Sr. No.	Basis of Difference	Delegation	Decentralisation
1.	Transfer of Accountability	Under delegation the ultimate responsibility or accountability lies on the delegator, meaning thereby that there cannot be any transfer of accountability.	Under decentralisation there is a transfer of accountability along with authority.
2.	Control	The delegator continues having his control over his subordinates even after delegation of authority.	Under this the person giving authority losses the power to control his subordinates.
3.	Compulsion	Delegation is essential in all enterprises because the manager has to delegate his authority to his subordinates to get work out of them. It means that without it the work is impossible.	It is not necessary to have it because it is not essential that the superior should divide his authority in a comprehensive way in the entire organisation. It means that in its absence work is possible.
4.	Permanency in Transfer of Authorities	Under delegation the transfer of authority is temporary. It means that authority can be taken back any time.	Under decentralisation authority is permanently given to the subordinates.
5.	Scope	Delegation shows a limited transfer of authority and hence its scope is limited.	It shows a wide distribution of authority and, therefore, its scope is wide.
6.	Relation between Delegator and Delegant	The delegant is the nearest subordinate of the delegator. It is, therefore, a relation between the two persons.	Many departments get authority simulultaneously and the delegator is the general manager. Hence, it is a relation among the top management and various departments.
7.	Deliberate Policy	Delegation is adopted by the managers for works of daily routine. It is not necessary to formulate any policy at the top hierarchy.	Delegation is essential for decentralisation. It means it depends on delegation.
8.	Dependence	Decentralisation is not essential for delegation.	Decision-making authority is distributed among various levels of management.
9.	Creation of Profit and Centres	A subordinate does not become a separate profit centre because of delegation. It means there is no creation of profit centres under it.	Decentralisation creates many separate units which can be called separate profit centres. Hence, all the units can have separate profit-loss amounts.

Importance of Delegation of Authority: Delegation of Authority is an important instrument for effective management. If the workload of a person is more than his capacity, he tries to sustain his capacity through delegation of authority. Thus, it is clear that power of an officer is extended to delegation of authority. The importance of delegation of authority is clarified through the following facts:

(1) Effective Management: Effectiveness means successful accomplishment of an objective. Delegation of authority reduces the workload of a manager. Manyers who practice delegation of authority are definitely better decision makers than those managers who do not delegate authority. The former ones get the benefit of the skills of their subordinates. This situation eases the attainment of objectives. As a result, the effectiveness of managers is improved.

(2) Employee Development: The mental growth of a person take place only when he has authority to take decisions. The process of delegation of authority provides managers the authority to take decisions. With the given authority, managers take decision contingent to the situation. Not only this but they even guide and motivate their subordinates. This type of practice adds on to their knowledge and experience. As a result, in future they become more able to take extra responsibility.

(3) Motivation of Employees: In the process of delegation of authority, both of authority and responsibility are deleged to the subordinates. This situition provides liberty to work and take decisions on part of subordinates. Gaining through this, they exhibit their talent and skill. With better performance, the subordinates create a niche of themselves in the organisation. Consequently, they get job satisfaction and feel motivated to perform even better.

(4) Facilitation of Growth: Delegation of authority does not only develop only one person or division but facilitate the development of organisation as a whole. As a result, profits are increased and managers as well as subordinates feel motivated. With this situation in an organisation efficiency, motivation and satisfaction are at their maximum peak. As adequate number of able employees are available in an organisation to take decisions; expansion, modernisation and diversification of a business can be done with full confidence. 

(5) Basis of Management Hierarchy: Management hierarchy is inevitable to run a business organisation successfully. Only because of this hierarchy, the superior and subordinates they come in contact with each other and get an opportunity to understand one another. The hierarchy is established through the process of delegation of authority. Under this, authority flows from top level to bottom level. As a result, senior and subordinate links are established from top to bottom.

(6) Better Coordination: Delegation of authority is a process to establish relation between responsibility, authority and accountability. Through this, employees get clarification with regard to their powers, duties and accountability for work performance. Thus, a clear picture is delineated (defined) for all the jobs performed at various levels, which automatically establishes better coordination. The advantage of this is that neither duplicacy nor overlapping of work take place. 

(7) Leads to Quick and Better Decisions: Decisions by delegation are taken not only at the top hierarchy but at all levels of management and it leads to quick decisions. All the subordinates fully know the problems of their field and this knowledge helps them in taking good decisions. 

(8) Continuity in Organisation: Because of delegation of authority the subordinates continue getting information about the activities of the superiors. If some superior leaves the concern or is promoting do some higher rank, his subordinate can easily be appointed in his place. Thus, continue in the organization has maintained and the work performance is not impeded (delayed, prevent, hindered). 

Body Language: Meaning, Types, Significance and Importance | Kinesics

 Q. What do you mean by Body Language ? Discuss the types and significance of body language. 

OR

Q. What do you mean by Kinesics or Body Language ? Discuss the types and importance of body language. 

Ans. Meaning of Body Language: Body language is a prominent and an important medium of non-verbal communication. It communicates very rapidly even the most suitable ideas. Body language expresses internal feelings very clearly. Effect of motions, ideas, thoughts, attitudes and feelings is reflected in human behaviour. 

Non-verbal means like body movement, gesture, posture, eye contact, pitch variation, etc. communicate ideas and messages in an effective manner. 

Body language is also called Kinesics. In it a person transmits message by the movement of different parts of his body, such as, face, eyes, shoulders, head, hands, etc. For instance, nodding head up and down conveys agreement; shaking head from side to side means disagreement; movement of hand is a mark of greeting or good bye, affection or annoyance can be expressed by eyes. 

Thus, kinesics is a study of body movements and gestures. 

Types of Body Language: Body language may be classified into the following types :

(1) Postures: Posture refers to way of sitting and standing. Physical structure of everybody is nature-bestowed. It can be made more attractive and agile by regular exercise and yoga, etc. 

Since posture is less well controlled than voice, it may serve as a clue to emotional states which otherwise might be successfully disguised. While to some extent posture like facial, legs communicate non-verbal messages. Posture and movement can convey self-confidence, status or interest. A confident executive may have a relaxed posture and yet may stand more erect than a timid subordinate.  An interesting listener may lean forward toward the speaker, one who is bored may lean away, slump or glance at the desk. 

(2) Gestures: Gestures are physical movements of our arms, legs, hands, torsos and head nods. Through the movement of each of these body parts, we can assert and reinforce our verbal messages. And we can observe how others punctuate their verbal efforts with gestures. 

Gestures have a role of their own in communication. In oral communication proper co-ordination of speech and gestures render communication effective manifold. Ordinarily, however, gestures express emotion or describe objects of special shape and appear to be closely coordinated with speech.

According to Murphy, hand and arm gestures are used for several reasons : (i) To Emphasize; (ii) To Point; (iii) To Reject; (iv) To Describe.

In fact, gestures change with person and place. With change of time or person, meanings of gestures also undergo a change.

(3) Facial Expressions: The facial expression or the expression of the face is the most important feature of body language. We look at the face to determine much of the meaning behind body language and non-verbal communication. Argyle observes that facial expressions are used in close combination with speech to emphasize or modify meanings and to provide feedback. Vine has observed that a listener signals his responses to what is being said by small movements of the eyebrows and mouth, expressing surprise, pleasure, puzzlement, disagreement and other reactions. Similarly, a speaker signals through appropriate expressions the context which his speech is to be interpreted – whether it is serious, funny, friendly or cold.

Darwin believed that there is a small number of universal emotions and associated with these emotions are universal facial expressions. Subsequent research generally identified six basic emotions (happiness, surprise, sadness, fear, disgust and anger), from which more complex or blended emotions are derived. Basic emotions are associated with quite distinctive patterns of facial muscle activity: for instance, surprise is associated with raised eyebrows, dropped jaw, horizontal wrinkles across the forehead, raised upper eyelid, and lowered lower eyelid show posed versions of the six basic emotions. 

Some facial expressions are associated with basic emotions appearing to be fairly universal.

(4) Eye Contact: Eye contact, an older term for non-verbal channel refers more precisely to mutual gaze.

The amount and pattern of gazing is a rich source of information about people’s feelings, their relative status, their credibility and honesty and their competence and attentiveness.

An old cliche says, “Look a person in the eye when you talk to him.” This simply means that when you are communicating with others, try looking them in the pupil and let the pupils tell you their real feelings. Under certain conditions, the pupils may dilate or contract as per the attitude and mood of the individual. For example, when one is excited the pupils can dilate up to four-times their normal size. Whereas during ire, frustration, depression or any other negative mood, they are contract. 

In fact, the way you establish eye contact with someone speaks about your attitude or the situation in which you are communicating with him. 

Some studies divide gaze behaviour into three categories:

(i) Formal Gaze: This is appropriate for boardrooms, business meetings, job interviews, project presentation, public speaking etc. Here, one should look at the imaginary triangle on the other person’s forehead above the area between the eyes. With this kind of gaze, one will be able to control the interaction to an extent. 

(ii) Informal Gaze: This is suitable for interacting with friends and associates. In this case, let your gaze casually drop between the other person’s eye zone forming an imaginary triangle downward on thr area between his eye and chin. This will add a congenial to the interface. 

(iii) Lateral Gaze: This type of gaze is used to convey either your interest or hostility towards the other person or situation. Interest towards the other gender, especially in courtship, can be expressed by smiling and slightly raising the eye-brows. 

North Americans whites see eye contact as a sign of honesty. But in many cultures, dropped eyes are a sign of appropriate respect to a superior.

Puerto Rican children are taught not to meet the eyes of adults.  The Japanese are taught to look at the neck. In Korea, prolonged eye contact is considered rude. The lower-ranking person is expected to look down first. In Muslim countries, women and men are not supposed to have eye contact.

Eye movement and eye contact with complete facial expression convey their messages more effectively.

(5) Bodily Contact: Bodily contact includes hitting, pushing, holding, striking, shaking hands, embracing, touching and a variety of other activities. Their use varies with the type of relation and situation. 

Touch is perhaps the earliest form of communication we learn. Long before we learn language, we give and receive information by touch. There are many different types of touch of different parts of the body. The meaning of attach parries as a function of the type of touch, the context within which the touch occurs. From analysis of fifteen hundred bodily contacts between people, Jones and Yarbrough identified five discrete categories of touch :

(i) Positive affect: to communicate appreciation, affection, reassurance, nurturance or sexual interest. 

(ii) Playful: to communicate humour and playfulness.

(iii) Control: to draw attention or induce compliance.

(iv) Ritualistic: to satisfy ritualised requirements (for example, greetings and departures).

(v) Task-related: to accomplish tasks (for example, a nurse taking one’s pulse or a violin teacher positioning one’s hand).

To these can be added, negative affect (gently pushing an annoying hand away) and aggressive touches (slaps, kicks, shoves, punches). 

(6) Appearance: Appearance covers non-verbal impressions that affect receiver’s attitudes. Appearance may be of two types :

(a) Personal Appearance: Clothing, hairstyles, neatness, jewellery, cosmetics, posture and stature are part of personal appearance. They conveys impressions regarding occupation, age, nationality, social and economic level, job status. 

Terms such as smart, casual or business casual are symbols for appearance. It is important that you know what they mean in your particular environment. 

(b) Appearance of Surroundings: Aspects of surroundings include room size, location, furnishings, machines, architecture, wall decorations, floor (carpeted or bare), lighting, windows, view and other related features wherever people communicate orally. Surroundings will vary according to status and according to country and culture.

(7) Silence: Silences are a natural and fundamental aspect of communication, often ignored. Silences are not absence of communication. They are an integral part of interpersonal communication. In fact, effective communication between people depends heavily on silences because people take turns at talking and at being silent when listening. Silence forms a fascinating part of communication. 

There are different types of silences, each with a meaning of its own and different implications and consequences for communication. For example : (i) Silence when we are worrying about a problem on hand, is different from (ii) Silence, which occurs when we are listening attendively to a speaker or watching a movie. 

Silences cannot be lumped (mixed) all together. Each must be interpreted on its own. Reaction to each of these silences is different because each means something different.

Our silence stems (comes/arises) from different causes which is reflected in our actions, expressions and movements.

Silence may be appropriate or inappropriate depending on the situation. Responding silently to a situation which requires talking and not being silent when we should, is inappropriate. 

Importance/Significance of Body Language: Lesikar is of the opinion that the importance of body language is revealed by the fact that much of what we say to others without using words is sent through the physical movement of our body. The following facts reveal the importance of body language:

(1) Reveals the Working of Emotions: When we wave our arms and fingers, wrinkle our foreheads, stand erect, smile, gaze at another, wear a coat and tie and so on, we convey certain meanings and others convey meaning to us in return. In particular, the face and eyes, gestures, posture, and physical appearance reflect the inner workings of emotions in our bodies. 

The face and eyes are the most important features of body language. We look to the face and eyes to determine much of the meaning behind body language and non verbal communication. For example, happiness, surprise, fear, anger and sadness usually require definite facial expressions and eye patterns. Thus, you should be aware of these two aspects of body language as you speak and listen to others. 

(2) Reveals the status: The relative status of interactants can be very evident from body language.  Higher-status individuals adopt a relaxed, open posture with arms and legs asymmetrically positioned and a backward lean (bent for support) to the body. Lower status individuals adopt a more rigid, closed and upright posture with arms close to the body and feet together. 

(3) Replaces Verbal Communication: When verbal communication breaks down, non-verbal communication may serves as a substitute.

(4) Sustain (to support, to keep alive, to encourage) Verbal Conversation: Once a conversation starts, body language helps sustain it by providing a steady (fixed) stream (direction) of feedback information concerning the other person’s responses. Body language from posture and gestures may also help sustain communication by emphasizing or illustrating points made in the verbal message. Nods of the head, graunts and shifts of gaze or tone of voice are crucial. 

(5) Reveals a Person’s Attitudes and Traits: Body language provides cues to a person’s attitudes and traits and to his identity as a person. It shows intra-cultural differences.

(6) Reveals the Truth: Body language reveals the truth. In the words of Nancy Austin, “When people do not know whether to believe what they are hearing or what they are seeing, they go with the body language — it tells the truth. You can play fast and loose with words, but it is much more difficult to do with gestures”.

(7) Practical Application: Body language is a very important tool of practical application in real life. According to Marilyn Mapie, “When you can consciously ‘read’ what others are saying unconsciously, you can deal with the issue – at work and at home – before they become problems.

(8) Proxemics or Space Language, Time Language: The proxemics is the study of how we use space, time and surroundings in communication. Proxemics involves space and time and how they communicate in speaking and listening.