Gautam Buddha University School of Management
Greater Noida
Programme: MBA
Course: Financial Management (MB-454)
Area: Finance and Economics Credit: 3
Sessions: Forty Five (MB- 454)
Introduction:
Up to 1950s the roles of a finance manager were limited up to raise funds and manage cash
positions of the organization and it was pretty much also. Only after the acceptance and
recognition of present value concepts, financial managers expanded their roles to the selection of
capital projects and judicious utilization of funds. Now these managers play a dynamic role modern
corporate world. Increased corporate competition, volatility in inflation and interest rates, changes
in legal environment, including tax laws & ethical concerns and technological changes, have
impact on various financial decisions in day to day life. As a result finance area has acquired more
vital strategic role in today’s world. The modern thinking in financial management accords a far
greater importance to management decision making and policy.
Thus today’s financial manager must have the flexibility to adapt to the changing external
environment if his or her firm is to survive. This subject is designed to impart required knowledge
and equip students with all important techniques and tools to take real world decisions.
Aims and Objectives:
To help the students gain a thorough understanding about the process and system of
Financial Management in an organization, it’s necessity, structure, goals and scope.
To gain insights for financing decisions and to make students aware of the various long-
term and short-term sources of finance along with concept and approaches of capital
structure, cost of capita, leverages and its importance.
The uses of various techniques of project evaluation to develop expertise in analyzing and
interpreting financial information to deciding the best among different projects for
investment decision.
To develop required skills for using concepts, methods and estimation of working capital
management along with cash, inventory and receivables management.
To make students aware of the concepts and approaches of dividend decision and
management of earnings.
Pedagogy:
A mix of Classroom instructional methods will be used like lectures, case analysis and exercises.
The efforts would be made to strengthen the conceptual knowledge and application through cases
and exercises. Emphasis throughout will be applications of concepts, principles and techniques to
company data available from published sources. Special Emphasis will be given to help the
students to develop analytical ability to analyze corporate decisions. This will be done with the
help of practical exercises. Case and Exercises will be announced separately.
Learning Outcomes:
After completion of the course student would be able to-
Understand the process and system of Financial Management in organizations
Design capital structure of an organization from all available resources (Equity, Bond etc.)
by evaluating corresponding cost of capital.
Use various techniques of project evaluation and analyze & interpret financial information
to choose the best among different projects for investment decision.
Analyze and design Inventory and Receivables Management and use of Cash
Management including short-term borrowing for effective Working Capital Management.
Comprehend current practices of dividend distribution and take decisions on management
of earnings.
Evaluation Scheme:
Quizzes/ Class Tests/Presentations 15%
Mid-Semester Exam 25%
Term- Semester Exam 60%
TOTAL : 100 marks
Class participation
It is expected to maintain 100% attendance in classes however for any unforeseen circumstances,
maximum 25% waiver would be allowed only after reasonable justification. Students are
encouraged to participate actively and contribute to the quality of teaching-learning process.
Assignments and Exercises
Assignments shall be illustrative in nature. In case of Group Assignment, The group shall be
decided in consultation with the course coordinator. The emphasis would be on to analytical writing
and ability to relate it with the context. Exercises would be for practice of numerical problems.
Project & Presentations
Projects shall be comprehensive in nature. In case of Group Project, The group shall be decided in
consultation with the course coordinator. Students are expected to do some research and detailed
analysis before submitting the project and presenting final outcomes of the project. It is mandatory
that the participants use Power Point Slides in their class presentations. Credit shall be given for
structured presentation, analytical content and ability to respond to queries.
Mid-Semester Exam
Mid-Sem test shall comprise of application oriented questions based on theoretical concepts. The
test shall be of two hours duration. The test shall be based broadly on the syllabus covered till mid-
term teaching.
End-Semester Exam
End-Sem test shall comprise of fundamental, analytical and application oriented questions. The
test shall be based on the entire course coverage (more weightage on the post-mid term
coverage) and designed to test the conceptual clarity of the subject and their applications.
Suggested Readings:
Text Book
Pandey, I.M.. Financial Management, (10th Edition), Vikas Publications
Reference Readings
Van Horne, James C.- Financial Management & Policy, 2005 (Twelth Edition), Prentice Hall of India
Brealey, Richard A. Myers, & Stewart C.- Principles of Corporate Finance, 2003 (Seventh Edition),
Tata McGraw Hill
Hampton, John J.- Financial Decision Making, Concepts, Problems & Cases, 1996(Fourth Edition),
Prentice Hall of India
Clark, John, Hindland, Thomas J. & Pritchard, Robert E - Capital Budgeting –Planning and Control
of Capital Expenditure, 1989, Prentice Hall
Levy, H. & Sarnat, M : Capital Investment and Financial Decisions, 1990, Prentice Hall
Hill, Ned C. & Sartoris William L., Short Term Financial Management – Text and Cases, 1995 (Third
Edition),Prentice Hall
Damodaran, Aswath- Corporate Finance – Theory & Practice 2004 (Second), John Wiley &Sons
Brigham Eugene F., Houston Joel F.- Fundamentals of Financial Management, Tenth Edition,
Thomson
Knott G - Financial Management (Palgrave,) [KnG]
R P Rustagi - Financial Management (Galgotia, [RPG]
Lawrence J - Gitman- Principles of Managerial Finance, (Pearson Education, ) [LJG]
Pandey I M - Financial Management (Vikas) [ IMP]
Van Horne - Financial Management and Policy (Pearson Education, 12th edition) [VH]
Sharma & Gupta, Financial Management, (Kalyani Publications ) [SG]
Prasanna Chandra- Fundamentals of Financial Management (TMH,) [PC]
Session Plan: 45 sessions (Each session of 60 minutes)
FINANCIAL MANAGEMENT
UNITS TOPICS TO BE COVERED SESSIONS REFERENCE
Concept of finance, scope and objectives of Pandey: Chp 1
finance; Profit maximization vs. Wealth KJ: Chp 1
maximization; Functions of Finance Manager 1 VH: Chp- 1
in Modern Age PC: Chp- 1
Financial decision areas, Time value of Pandey: Chp- 2 & 4
money, risk and return analysis 2-3 KJ: Chp- 2
PC: Chp-7
Valuation of securities; Shares and Bonds Pandey: Chp- 3
UNIT-I 4-5 KJ: Chp- 4
VH chp 2
Sources of Finance & Related activities: Pandey: Chp- 20 & 21
Long Term: Capital market; Public Issue & KJ: Chp- 17,18,19,20 &21
6-7
Private placement of shares, PC: Chp- 8, pg 191-213
bonds/debentures, Term loans and Lease
Merchant Banking & Investment Banking Pandey: Chp- 19
8-9
Money Market and instruments and Call KJ: Chp- 4, pg 4.1-4.9
Money Market PC: Chp- 8, pg 191-213
Problems and Revision 10
Concept of Gross Working Capital & Net Pandey: Chp- 27
11-12
Working Capital, Various Approaches to KJ, : Chp- 26
Working Capital Management
Factors affecting working Capital requirement Pandey: Chp- 28
13
SG: Chp- 23, pg 23.1-23.11
Working Capital Management: Management Pandey: Chp- 27
of cash: Motives of Holding Cash, Floats and KJ: Chp- 29, pg 29.1-29.18
14
their use, Methods of accelerating cash SG: Chp- 24, pg 24.1-24.12
Inventory: Pandey: Chp- 29
UNIT-II Motives, Use and Importance, Levels of KJ: Chp- 31, pg 31.1- 31.12
15-16
Inventory, Inventory Mgt. Systems; EOQ, ABC, SG: Chp- 24, pg 24.13-24.19
VED, JIT etc.
Receivables: Pandey: Chp- 28
Receivables Mgt., Credit Policy; formulation KJ: Chp- 30, pg 30.1-30.12
and execution, Costs involved in receivables, 17-18 SG: Chp- 24, pg 24.24-24.40
factoring
Sources of short term financing, Role of Pandey: Chp- 30 & 31
commercial bank in working capital SG: Chp- 23, pg 23.30-23.35
19-20
management; Commercial paper; Factoring
and other tools of working capital financing
Problems and Revision 21 Pandey: Chp- 28 - 31
Long-term sources of finance, potentiality of Pandey: Chp- 20 & 21
UNIT-III equity shares, preference shares, debentures 22 SG: Chp- 21, pg 21.3-21.19
and bonds as source of long-term finance PC: Chp- 17, pg 462-473
Concept and approaches of capital structure Pandey: Chp- 15
decision; NI, NOI, Traditional and Modigliani 23-25 SG: Chp- 18, pg 18.1-18.21
Miller Approach; KJ: Chp- 15, pg 15.1-15.20
Cost of equity share, preference share and Pandey: Chp- 9
debentures 26-27 SG: Chp- 29, pg 29.38-29.46
Capital Budgeting: Nature and Identifying Pandey: Chp- 8
relevant Cash Flows 28 PC: Chp- 14, pg 385-400
Evaluation Techniques: Non-Discounting and Pandey: Chp- 8
Discounting; NPV,IRR and PI 29-30 KJ: Chp- 10 & 11, pg 10.3-11.51
Project selection in Capital Rationing 31 AD: Chp- 10 & 11, pg 285-310
Analysis of risk and uncertainty: Methods; Pandey: Chp- 12
Adjusted Rate, Certainty Co-officient, AD : Chp- 12, pg 352-375
32-33
Probability, Sensitivity Analysis and Decision
Tree Analysis and Problems
Problems and Revision 34
Concept of retained earnings and plough back Pandey: Chp- 17
of profits, relevancy and irrelevancy theory of SG: Chp- 29, pg 29.38-29.46
35-37
dividend decision; Walter’s model; Gordon’s KJ: Chp- 24, pg 24.3-24.14
Model and Modigliani Miller model
Factor affecting dividend decision Pandey: Chp- 18
UNIT-IV 38 KJ: Chp- 25, pg 25.1-25.8
SG: Chp- 25, pg 25.10-25.18
Bonus shares, Management of Earnings Pandey: Chp- 26
39-40 KJ: Chp- 25, pg 25.10-25.12
SG: Chp- 25, pg 25.19-25.25
Problems and revision 41
Introduction to various Concepts:
Valuation and Corporate Restructuring; Pandey: Chp- 35
42
Methods of Valuation including MVA and KJ: Chp- 32, pg 32.3-32.30
EVA;
Corporate Restructuring; Mergers, Pandey: Chp- 32-34
UNIT-V Amalgamation, Acquisition and Takeover; 43-45 AD : Chp- 26, pg 834-876
Venture Capital Financing & Infrastructure KJ: Chp- 33, pg 33.3-33.70
Financing; KJ: Chp- 22, 23
Derivatives for Managing Financial Risk; KJ: Chp- 35 &37,
Financial Planning;
Foreign Exchange Markets and Exposures;
Disinvestment in PSUs
Presentations
Gautam Buddha University School of Management
Greater Noida
Programme: MBA
Course: Human Resource Management MB-456
Department: Business Management Credit: 3
Sessions: Fourty Five (60 Minute each)
Course Objectives
Human Resource Management (HRM) involves all management decisions and actions that affect the nature
of the relationship between the organization and its employees. Effective Human Resource Management
creates a win-win relationship with employees by seeking the best fit between organizational and individual
goals. With effective Human Resource Management the organization acquires a competent and committed
workforce, able to support the corporate strategy. Therefore organizations can create a competitive
advantage through their people. There is a dual focus in this course. The first focus is on the various human
resource policies as recruitment, selection, performance management, rewards, staffing and development.
Students will get insight into the basic challenges, strategic approaches and tools within these fields. The
second focus covers the more holistic view on HRM. We go deeper into the relation and fit between HRM
and the strategy, culture and capabilities of an organization and the balance between organizational goals
and individual goals. We will therefore explicitly focus on the frameworks, paradigms and concepts that
integrate the human resource policies and practices into a coherent whole. Furthermore the objective is to
guide students in developing a vision on HRM from a general manager’s perspective.
Student learning outcomes
The students will be able to
• Understand how managers can be effective and efficient in their role in HRM.
• Understand the basic principles and added value of HR policies and HR information systems.
• Understand how HRM is related to the organizational context.
• Develop a vision on the future of HRM.
(Each session of 60 minutes)
Session Session
No.
1-2 Nature of Human Resource Management
Introduction
Scope
Importance
3-4 Strategic Role of HRM
Introduction
Strategic HRM
HRM Framework
5-7 Job Analysis
Process of Job Analysis
Methods of collecting Job Analysis information
Job Description and Job Specification
8-11 Human Resource Planning HRP
concept, methods, evaluation of HRP process
Work environment.
Case study
12-14 Recruitment
Overview of the recruitment process
Case Study
15-18 Selection
Descision making issues in selection
Role Play
19-20 Tools for selection/interviews
21-23 Training and Development
Case Study
Role Play
24-25 Inducting and placing the new hires
Requisites of an effective programme
26-28 Managing Careers
Career planning and Development
Roles in career development
29-30 Managing Careers
Making promotion descision
Handling Transfers
31-34 Performance Appraisal and feedback system
Case Study
35-37 Compensation Management
Salary Structure
Compensation trends
38-40 Incentives and performance based pay
Money and motivation
41-42 International human Resourse Management
Managing international HR Activity
The Expatriate Problem
43-44 Dynamics of employee relations/ Legal Framework
Provisions of Factories Act, Minimum Wages Act etc.
Case Study
45 Contemporary Issues in HRM
Green HRM,Introduction & implication
HR Automation
Text Book
1. Dessler, G. -- Human Resource Management, 2003, 9th or latest ed., Prentice Hall of India Private
Ltd
Suggested Readings
2. Aswathapa – Human Resource Management, 2003, 3rd ed., Tata McGraw Hill.
3. Cynthia Fisher, Loyl F Schoenfeldt, James B Shaw, Human Resource Management, Indian
adaptation, Biztantra , Wiley India
4. Rao, VSP, Human Resource Management, Excel Books
5. Diwedi R S-A textbook of HRM
Evaluation Scheme
Quizzes/ Class Tests/Presentations 15%
Mid-Semester Exam 25%
Term- Semester Exam 60%