Monetary policy: Meaning and instruments.

 Q. What is meant by Monetary Policy? Explain the main instruments of monetary policy. 

Ans. Meaning of Monetary Policy: Monetary policy refers to that policy through which central bank of the country (Reserve Bank in India) controls (i) the supply of money, (ii) availability of money, and (iii) the cost of money in order to attain a set of objectives focusing on growth and stability of the economy.

It is an economic policy that manages the size and growth rate of the money supply in the economy. It is primarily concerned with the management of interest rate and the total supply in money in circulation and is generally carried out by central bank.

In the words of G.K. Shaw, “By monetary policy, we mean any conscious action undertaken by the monetary authorities to change the quantity, availability or cost (rate of interest) of money.”

Main instruments of Monetary Policy: 

Monetary policy instruments to credit control is often categorised as Quantitative and Qualitative. Quantitative instruments are applied as non-discriminatory credit policy of the central bank: all sectors of economy are uniformly treated while monetary policy is being pursued. Qualitative instruments are applied as discriminatory credit policy of the government: different sections are treated differently depending on the prevailing situation in the country. Qualitative credit control is also called selective credit control.

I. Quantitative Instruments: Following are the instruments for quantitative credit control:

(1) Bank Rate: Bank rate is an important instrument of credit control. Bank rate is that minimum rate of interest at which central bank of a country is willing to discount the first grade securities of other banks or lends on approved securities. Rise in Bank rate raises the rate of interest and fall in bank rate lowers rate of interest. When bank rate is raised, there is contraction of credit, fall in aggregate demand and hence fall in prices. On the contrary, to check deflation in the country, bank rate is lowered.

(2) Open Market Operations: When the central bank of a country buys or sells securities in the open market is called Open Market Operations. If the credit is to be contracted, the central bank begins to sell securities in the open market. On the contrary, if the central bank wants to expand credit, it begins to buy securities in the open market. In the event of inflation, central bank sells securities in the open market. As a result of it, credit is contracted, aggregate demand goes down and prices tend to fall. On the contrary during depression, the central bank buys securities as a result of which credit expands, aggregate demand increases and prices tend to rise.

(3) Change in Minimum Reserve Ratio: Commercial banks are required to keep a given percentage of their total deposits as cash reserve with the central bank. If the central bank wants to contract credit, it raises the cash reserve ratio. As a result, banks have to keep a larger percentage of their deposits in terms of cash with the central bank. It reduces their cash reserves. Lower cash reserves reduces credit creation capacity of the commercial banks. On the other hand, when the central bank wants to expand credit, it lowers the cash reserve ratio. This leaves the banks with larger cash reserves to create credit.

(4) Change in Liquidity Ratio: Every bank is required to keep a given proportion of its total assets in the form of liquid (or near liquid) assets. It is called liquidity ratio. When the central bank is to contract credit, it raises liquidity ratio. On the contrary, when the central bank is to expand credit, it lowers the liquidity ratio.

II. Qualitative (or Selective) Policy Instruments:

(1) Change in Margin Requirements of Loans: When the central bank feels that the traders are stock piling (collects/hoards) certain commodities as a result of which their prices are rising, then it controls the availability of credit for these goods by changing margin requirement. It means that the margin between the value of the goods pledged as security and the amount of loan is increased. Supposing a person pledges goods worth ₹100 as security with a bank and gets a loan amounting to ₹80. In this example, margin requirement is ₹20, or say 20 per cent. If the margin requirement is raised, then the borrower will have to pledge goods of greater in order to secure loan of a given amount. This way credit is contracted. Supposing, margin requirement is raised to ₹60 only against the security of goods worth ₹100 only. Obviously, if the margin requirement is lowered, there will be expansion of credit. 

(2) Rationing (allocating, distributing) of credit: Central bank is the lender to the last resort to commercial banks. Hence, if it so chooses, it can introduce rationing of credit in order to control credit. Rationing of credit may have any of the four variants:

(i) The central bank can decline loan to a specified category of commercial banks.

(ii) The central bank can reduce the quantum of loans for all the banks.

(iii) Central bank can fix credit quota for different banks.

(iv) Central bank can determine the limit of credit granted to industry and trade. As a result of credit rationing banks become cautious in advancing loans; accordingly flow of credit is restricted.

(3) Direct Action: Sometimes, the central bank may initiate direct action against the commercial banks defying its directives. The central bank may impose strict restrictions on the functioning of defaulting banks including denial of loans.

Quantitative and Qualitative credit control are not ‘either-or’ forms of credit control. These are complementary to each other. Both quantitative as well as quantitative policy instruments may be simultaneously pursued with a view to achieving the objectives of monetary policy.

Define Organisational Behaviour and its elements. Discuss the role of Taylor in the development of Scientific Management Approach.

Q. Define Organisational Behaviour and its elements. Discuss the role of Taylor in the development of Scientific Management Approach.

Ans. Meaning of Organisational Behaviour: Organisational Behaviour consists of two words ‘organisation + behaviour’. Organisation means a unit in which two or more people work jointly for the attainment of an objective. On the other hand, behaviour means the actions and reactions of an individual or a group towards their activities. For example, an individual or a group is extremely happy on getting some important assignment. This is his behaviour. In this way, organisational behaviour means the behaviour of people while working in the organisation.

It refers to the study of human behaviour in the organisation so that the organisational effectiveness is improved.

Definition of Organisational Behaviour:

1. According to Davis and Newstram, “Organisational Behaviour is the study and application of knowledge about how people act within organisations.”

Thus, Organisational Behaviour is a term used to explain the actions and reactions of individuals and groups to the stimuli surrounding them as they interact with one another while doing their jobs.

Elements: OB is the study of an individual, group and environmental characteristics. Apart from it, people work in an organisation structure and while working they make use of some techniques also. In this way, OB consists of a sum total of five components, e.g. individual, group, organisation structure and environment.

(1) Individual: Individuals help in the formation of organisation. Therefore, an individual is the most important component of OB. It is a special characteristic of an individual that each individual differs in their behaviour under OB, individuals behaving in almost a similar manner are placed in one category. Then studies are conducted for each category with their own specialities in behaviour. Each category helps in the discovery of techniques regarding explanation, prediction and control in respect of OB.

(2) Group: Organisation means that unit where more than two people work in a group. Therefore, human group has a special significance in the organisational behaviour. Each individual behaves differently as an individual and collectively. Under OB, efforts are made to study that when people happen to be in a group, how do they behave so that the conduct of the people in groups can be controlled.

(3) Job and Technology: Job means the total work allotted to individuals at the place of work. Job itself affects the behaviour of the people. Therefore, it is important to focus attention on the job. It is, however, important to see whether the job allotted to an individual or a group is liked by them or not. The behaviour of people is also influenced by their interaction while handling the job. Therefore, special attention has to be focused on the allotment of job. Similarly, behaviour is also influenced by the technique and equipment used for the completion of the job. The behaviour of the people remains positive if they are provided technique and equipment of their choice, otherwise, the effect is the reverse. Thus, we find that job and technique happen to be important parts of OB.

(4) Organisation Design: Organisation design does influence the work relationship of the people. Under this the power and responsibility is also distributed among the people. Moreover, the reporting technique, recording technique, rules, work procedure are also determined. They happen to be different in every type of organisation design. Organisation design is created keeping in view the nature of the job. Under OB, it is always kept in mind as to what type of organisation design will be suitable in a particular situation. The control on the behaviour of the employees is easier when the organisation design happens to be effective.

(5) Environment: No organisation is established in a vacuum. It is very much a part of the society where it is established. Different parts of society, e.g., family, government, social organisation together create environment. The behaviour of the people is affected by these factors. It is the function of OB to study the effect of these factors of the environment on the behaviour of the people.

Role of Taylor in the development of Scientific Management Approach: F.W. Taylor is the father of scientific management. In his company, he conducted a number of experiments and came to conclusion that the amount of work a labourer was doing was far less as compared to what he was supposed to be doing. He gave number of suggestions to solve this problem and, in doing so, he gave scientific outlook to management.

● Meaning of Scientific Management: The literary meaning of scientific management is performing the work of management in a scientific manner. In other words, discarding the traditional approaches to management and adopting newer and more scientific approaches in their place is called scientific management.

Scientific Management refers to that management which thinks that by scientifically analysing work, it would be possible to find one best way to do it.

● Principles of Scientific Management: The Scientific Management Approach propounded by F.W. Taylor is based upon the following five principles:

(1) Principle of Use of Science for the Rule of Thumb: According to this principle, all the activities bring performed in an organisation should be analysed in detail with the aim of developing a technique of accomplishing the maximum possible work in an efficient manner and at the minimum possible cost. This principle says that we should not get stuck in a set routine and continue with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simpler and easier.

(2) Principle of Scientific Selection and Training of Workers: According to this principle, the selection and raining of workers should be done in a scientific manner. Scientific appointment means appointing only those people to do a particular work who possess the necessary capabilities to do it. However, only scientific selection of workers is not adequate in itself, the workers should also be imparted the necessary training from time to time. Proper training of workers increases their efficiency and hence benefits both the workers as well as the organisation.

(3) Principle of Cooperation between Labour and Management: As per this principle, such an atmosphere should be created in the organisation that labour (the major factors of production) and management consider each other other indispensable. Labour should understand that it cannot proceed in its work without the existence of Management, and Management should understand that it has no identity without the existence of Labour. If such an atmosphere prevails in an organisation, then both the parties would aim for the achievement of the same goal (i.e. the maximum and good quality production) and hence both of them will be successful in achieving the goals. Taylor has referred to such a situation as a ‘Mental Revolution’.

(4) Principle of Maximum Output: As per this principle, both the labour as well as management should make full efforts to produce the maximum output. They should spare no efforts for the maximum utilisation of the factors of production available in the organisation. This will have a direct impact on the profits of the organisation and the organisation will earn the maximum possible profits. Higher profits will results in higher wages for the workers and thus make them more dedicated towards the organisation.

(5) Principle of Equal Division of Responsibility: According to this principle, the work of the organisation and the related responsibilities should be clearly divided among the two main groups in the organisation (Management and Labour). Each group should be assigned work which it can accomplish more efficiently. For example, Management should be the one to.decide the time required to do a particular work, while the responsibility for actually doing the work should be with the labour. In this way, if the time required for doing the work is not properly determined, the manager would be accountable, and if the work has not been properly performed the labourer would be responsible. Hence, on proper implementation of this principle, the credit for doing work efficiently would be divided among both the groups and in case of any defaults, the responsibility would also be shared by both the groups.

● Techniques of Scientific Management: Taylor has devised the following techniques for actually implementing the principles of scientific management:

(1) Scientific Study of Work: Scientific management requires deep analysis of all the activities being performed in the organisation with the aim of producing the maximum possible output with the minimum possible efforts. In simple words, it may be said that Taylor was strictly opposed to incompetence and wanted to remove incompetence with whatever possible means. In his efforts to do so, he conducted a number of experiments and proved that (i) if the various parts of the process of production are reduced to the minimum, (ii) while working, unnecessary movements of the body are eliminated, (ii) the time required for doing every work is determined and (iv) recognising that human beings are not inanimate objects and hence are likely to feel fatigued, proper arrangements for their resting are made, then incompetence will be totally eliminated from the organisation. On this basis, he has divided work study into the following four parts: 

(i) Method Study,

(ii) Motion Study.

(iii) Time Study, and

(iv) Fatigue Study.

(2) Scientific Task Planning: Scientific task planning implies analysing all the different aspects of the work before actually commencing upon it, such as what is to be done? how is it to be done? where is it to be done? and when is it to be done? Taylor has advised the managers of industrial organisations to establish a separate Planning Department for this purpose.

(3) Scientific Selection and Training of Workers: First, it is determined that for a particular work, persons possessing what qualities and capabilities are required. Next, through conducting various examinations, capable persons are selected. Scientific selection is selecting the right person for the right position without any bias. According to the traditional techniques of management, this was usually done by the Foreman, however Taylor has advised the establishment of a Personnel Department for this purpose. After selecting suitable persons, they should be imparted proper training before deploying them on the job. Scientific management requires that training should be imparted only through modern techniques as it increases the efficiency of the workers.

(4) Standardisation: Standardisation means setting standards for different factors, after due deliberation. For example, the amount of work to be done by a worker in a day may be standardised. In other words, the worker is expected to do the standard amount of work everyday. In the same manner, standards may also be set for raw materials, machines and tools, techniques, conditions of work, etc.

Standardisation of Work?

It refers to the process of setting standards for various business activities.

(5) Differential Wage System: Taylor has advised the adoption of differential wage systems in order to motivate the employees. According to this system, wages are paid on the basis of work done and not on the basis of time spent in doing the work. In this system two different wage rates are used: one is the high wage rate and the other the low wage rate. Those workers who are able to produce the standard number of units within a fixed duration are paid as per the high wage rate, and those workers who are not able to produce the standard number of units within the same time are paid as per the lower wage rate.

Differential Wage System?

It refers to that technique of scientific management which differentiate between efficient and inefficient workers.

(6) Specialisation or Functional Foremanship: F.W. Taylor has propounded the functional organisation. This form of organisation is totally based on the principle of specialisation and makes full utilisation of the expertise of various experts. In a functional organisation, work is divided into many small parts and each part is assigned to an expert. In this manner, all the benefits of specialisation are availed of.

Functional Foremanship?

It refers to that technique of scientific management which makes possible the full utilisation of the principle of specialisations.

(7) Mental Revolution: Mental Revolution calls for a change in the mindset of both the managers and the workers. According to Taylor, a revolution in mindset of both the managers and the workers is required as it will promote feelings of cooperation, and will be beneficial for both the parties. Normally, it is seen that a conflict between the managers and the workers results in division of profits, with both the parties demanding a larger share of profit. This is the main reason that a mental revolution is required. According to Taylor, instead of fighting over division of profits, both the parties should make efforts for increasing the profits. Such a situation will results in an increase in production, and such a high increase in profits will make any talk of division of profits meaningless.

Mental Revolution?

It refers to the change in the attitude of management and workers towards one another from competition to cooperation.

What is MNC? Discuss the beneficial and harmful effects of MNCs on Indian economy.

 Q. What is MNC? Discuss the beneficial and harmful effects of MNCs on Indian economy.

Ans. Meaning of Multinational Enterprise/Corporation

Multinational corporation is that corporation whose sphere of activity is spread over more than one country. These corporations are known by several names e.g. Transnational Corporation, International Corporation or Global Corporation. Various MNCs are working in our country like Hindustan Unilever, Johnson and Johnson, Philips, Colgate, Coca-Cola, Pepsi, LG, Nestle, Samsung, Hyundai,Cadbury, Vodafone etc.

In the words of President of I.B.M. a world famous corporation, “Multinational Corporation is one that (i) operates in many countries, (ii) carries out research, development, marketing and manufacturing in many countries, (iii) has a multinational management, (iv) has a multinational stock ownership.”

The United Nations defines MNCs as, “Enterprises whose area of working – factories, mines, sales, offices and the like are in two or more countries.”

The Encyclopedia of Management (2005) put multinational companies as business concern with operation in more than one country.

In short, multinational corporation is a big firm, whose headquarter is located in one country but whose trading and manufacturing activities are spread over many other countries.

Beneficial effects of MNCs on Indian economy: 

(1) Availability of Capital: Multinational corporations help to solve the problem of capital faced by underdeveloped countries. Underdeveloped countries suffer from lack of capital. Consequently, their rate of economic growth is low. By making investment in underdeveloped countries, MNCs help them to achieve the objective of higher economic growth.

(2) Availability of Modern Techniques and Management: MNCs provide modern technology and managerial services to enterprises established by them. As a result, the productivity of those enterprises increases and resources are optimally utilised. It is through the medium of multinational corporations that technology has been transferred from developed countries to developing countries. MNCs are providing managerial, administrative and technical skills to developing countries. In many areas MNCs are providing complex and modern technology.

(3) Availability of Marketing Services: Multinational corporations make available marketing services especially related to export marketing, advertising, market research, storage facilities, transport, packaging, branding, etc. All these services are efficiently performed by multinational corporations.

(4) Availability of Foreign Exchange: Multinational corporations bring their capital in foreign currency. It increases the inflow of foreign currency in domestic country. This increases the availability of foreign exchange with the domestic country. It helps the country to make payment of essential imports.

(5) Increase in Employment: Countries, wherein multinational corporations (MNCs) establish their subsidiaries, get employment opportunities. By increasing investment, these subsidiaries set up new enterprises. Consequently, employment increases.

(6) Increase in Knowledge: MNCs impart training to local employees in respect of modern management, marketing, finance, export, etc. In this way, their ability and skill to organise and conduct their activities on modern lines enhances.

(7) Increase in Exports: The multinational corporations utilise cheap domestic labour and their huge capital resources to convert raw materials into finished products. The managerial skill, availability of capital, modern technology and other sources of MNCs result in proper utilisation of resources. Because of better technology, the quality of products is better and these products find easy entry in foreign markets. It leads to increase in exports of the country.

(8) Increase in Competition: Entry of MNCs promotes competition in the domestic economy. Increased competition results in lower prices, which is beneficial for consumers e.g., entry of LG, Samsung, Sony, etc. in electronics has promoted competition in India. It has resulted in decrease in prices of electronic goods.

(9) Increase in Industrialisation: Multinational corporations make important contribution in the industrialisation of developing countries. They provide managerial skills, technical know-how and adequate funds required for starting a new industry. Many industries are set up in India by the MNCs, e.g. Phillips, Glaxo, Colgate, Hindustan Uni lever, Proctor and Gamble, Nestle, BPL, Ceat, MRF, etc.

Harmful effects of MNCs on Indian economy:

(1) Outflow of Funds from Host Country: Host country is one where multinational corporations set up their subsidiaries. The main objective of these MNCs is to earn maximum profit. To achieve this objective they invest their capital in underdeveloped countries. Such an investment proves very profitable. Big chunk of profits earned in underdeveloped countries goes to the headquarters of MNCs. Moreover, MNCs take large amount of foreign exchange out of country by way of dividend, royalty, management fees, etc. Because of the operations of MNCs in India, large amount of foreign exchange has gone out of the country. So, in the long run balance of payments becomes unfavourable.

(2) Harmful for Indigenous Producers: MNCs prove harmful to indigenous producers. By making use of improved technology in their production system, these corporations fix lower price of their products and thus compete out indigenous producers. Once the indigenous industry is completely destroyed by this competition, MNCs take full control over the market. By virtue of their competitive strength, they throw out indigenous producers from highly profitable, progressive and developed sectors. It is difficult for local industries to stay in the market for long in the face of huge capital resources, high technology, competent management possessed by these corporations.

(3) Unbalanced Regional Development: Foreign investors set up industries in developed cities and towns whiere infrastructural facilities are easily available and not in backward areas. This leads to further development of already developed areas and the backward areas remain untouched. Thus, regional disparities increase.

(4) Less use of Modern Technology: MNCs do not make much use of modern technology in underdeveloped countries. These corporations use new equipments and technologies only if the same are helpful in reducing the costs and raising their profits. But they take no interest in developing technology for underdeveloped countries because without spending anything on the improved technology, they succeed in raising their profits.

(5) Tax Evasion: Government of the host country imposes corporation tax on the income of companies and corporations, with a view to increase its revenue. In order to avoid corporation tax, MNCs reduce the amount of their profit by adopting transfer pricing methods. According to this method, MNCs buy intermediate goods from their subsidiaries abroad at high price and thus reduce their local profits. Similarly MNCs export their products to their subsidiaries abroad at lower prices, so as to under-value the exports to show lower local profits. Thus, MNCs over-invoice the imports and under-invoice the exports, so as to show less profits. That way through manipulation of bills MNCs evade tax.

(6) Lack in Morality and Ethics: Some MNCs indulge in unethical and corrupt practices for their self-interest They do not hesitate to offer bribe to highly placed officials and politicians of other countries to allow them to enter into such transactions which only serve their own interest.

(7) Political Interference: MNCs prove detrimental to the economic and political freedom of the host countries. These interfere in the politics of the country. These corporations make all efforts to bring that political party to power in the host country which is favourably inclined to them.

(8) Encourage Demonstration Effect: The MNCs incur heavy expenditure on advertisement and publicity. It results in wasteful expenditure whose burden is ultimately born by Indian consumer. MNCs produce products for upper class of consumers like cold drinks, ice-creams, cosmetics, washing machine, cars, high priced shoes etc. This creates demonstration effect. People of underdeveloped countries are crazy about the products of MNCs. It also leads to diversion of resources toward production of non-essential goods.

(9) Competition with Small-Scale Industries: Various MNCs are allowed production in the area where small-scale industries were doing well e.g. potato chips, wafers, biscuits, jam, cosmetics, etc. Because of heavy advertisement and brand image of MNCs, our small-scale industries fail to compete with MNCs e.g. entry of Uncle Chips has resulted in failure of many SSI units (small-scale units) who were producing potato chips. Similarly, entry of Hindustan Unilever Ltd. in consumer goods industry has badly affected many small-scale units producing consumer goods.

(10) Production of Prohibited Goods: The main objective of the multinational corporations is to earn profits. In order to get more profits they indulge in the production of even those goods which are harmful for the consumers. Many of the medicines and other products, the production of which has been prohibited in foreign countries are being manufactured and sold in India by multinational corporations. As such the multinationals earn profits even at the cost of the health of consumers.

(11) Problem of Brain Drain: MNCs recruit qualified and skilled engineers, technicians, experts in India and after sometime, these Indian experts are posted abroad in the foreign subsidiaries of MNCs. So that way, MNCs are draining Indian talent and expertise to the other countries.

(12) Non-Essential Products: MNCs are producing such products as can be produced with the help of local technology such as lipstick, toothpaste, cosmetics, ice-cream, biscuits, colas, processed foods, etc. Most of the MNCs are producing consumer goods which are not essential for the economic development of a nation. The main aim of these corporations is to earn profit. These corporations take no interest in the production of capital goods, wage goods and development of scarce resources of the country.

(13) Multiple Collaborations: It means more than one technology agreements for the import of same or similar technology. If a particular technology has already been imported and now the country is importing same or similar technology through another collaboration with foreign country, then it is known as multiple collaboration. This results in repetitive payments for the import of similar technology. The problem of multiple collaboration is common in developing countries. It puts extra burden on foreign exchange reserves.

(14) Unsuitable Technology: The technology brought by MNCs was unsuitable for India. MNCs brought capital intensive technology which does not suit India as our economy is capital scarce and labour abundant economy. Keeping in view, the unemployment problem and scarcity of capital, labour intensive technology is suitable for India, but MNCs use capital intensive technology.

(15) Less Bargaining Capacity of Indian Entrepreneurs: Foreign collaboration agreements are largely in favour of foreign collaborators. Due to less bargaining power of the Indian side, foreign collaboration agreements are largely in favour of foreign collaborators and not in favour of Indians.

(16) Growth of Monopoly Powers: MNCs join hands with big industrial houses in India which lead to growth of monopolies.

(17) Harmful for Consumers: MNCs are harmful to consumers because of following:

(i) Excessive advertisements, thus charging high price from consumers.

(ii) Adopting unfair trade practices like deceptive advertisement.

(18) Purchase of Raw Material and Intermediate Goods from Foreign Subsidiaries: MNCs often purchase raw materials and intermediate goods from the foreign subsidiaries.This results in losses to Indian industries supplying raw materials and intermediate goods. 

In short, the multinationals have both the merits as well as demerits. The government should take special policy measures to avoid the demerits. It will be more appropriate if such multinationals are encouraged which guarantee the export of their production and utilise appropriate technology.

Define Operating System and explain how it acts as a Resource Manager.

 Q. Define Operating System and explain how it acts as a Resource Manager. 

Ans. Operating System: An operating system is an integrated set of specialised programs that are used to manage overall resources and operations of the computer. It is a specialised software that controls and monitors the execution of all the programs that reside in the computer. It is the interface between user and the computer.

A simple way of defining the operating system can be:

An operating system is a program that acts as an interface between the user and the computer hardware and controls and manages the overall resources of computer system.

O.S. as a Resource Manager in following ways:

1. Memory (Storage) Management 

(a) It keeps track of primary memory i.e. what part of it are im use by whom, what part are not in use etc.

(b) In multiprogramming it decides which process will get memory when and how much.

(c) Allocates the memory when the process or program request it to do so.

(d) Declaims (deallocate) the memory when the process no longer needs it or has been terminated. 

2. Processor Management

(a) Keep track of the processor and status of process.

(b) In multiprogramming it decides which process gets the processor & how much time. This function is called process scheduling.

(c) Allocate the processor (CPU) to a process.

(d) Deallocate processor when processor is no longer required.

3. Device Management 

(a) Keeps track of all devices.

(b) Decides which process gets the device when & for how much time.

(c) Allocate the device in the efficient way.

(d) Deallocate devices.

4. File Management 

(a) It keeps track of information, its location, uses, status etc. This collective facilities are often known as file system.

(b) Decides who get the resources.

(c) Allocates the resources.

(d) Deallocates the resources.

5. Security 

By means of passwords & similar techniques, preventing unauthorized access to programs & data.

6. Control over system performance 

Recording delays between request for a service & response from the system.

7. Job accounting

Keeping track of time & resources used by various jobs and/or users.

8. Interaction with the operators

The interaction takes place via the console of the computer in the form of the instructions from the operator acknowledging the same, action thereon, as well as informing the operation by means of a display screen of works & problem encountered.

9. Error -detecting aids

Production of dumps, traces, error messages and other debugging and error-detecting aids.

10. Coordination between other softwares and users

Coordination and assignment of compilers, interpretiers, assemblers and other software to the various users of the computer systems.