Sector

Electronics

Sub - Sector
Electronics Manufacturing System

Occupa on
Manufacturing
Reference ID : ELE/Q3501, Version 2.0
NSQF Level 4

Assembly Operator-RAC
 Skilling is building a better India.
If we have to move India towards
development then Skill Development
should be our mission.

Shri Narendra Modi

Prime Minister of India

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24.02.2022
02.06.2025

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Acknowledgements
The need for having a standard curriculum for the Job Role based Qualification Packs under
the National Skills Qualification Framework was felt necessary for achieving a uniform skill-
based training manual in the form of a participant handbook.

I would like to take the opportunity to thank everyone who contributed in developing this
handbook for the QP RAC Assembly Operator.

The handbook is the result of tireless pursuit to develop an effective tool for imparting the
Skill Based training in the most effective manner.

I would like to thank the team of KontentEdge for their support to develop the content, the
SME and the team at the ESSCI along with the industry partners for the tireless effort in
bringing the handbook in the current format.

CEO

Electronics Sector Skills Council of India

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 [

About this Book

This Participant Handbook is designed to enable training for the specific Qualification Pack
(QP). Each National Occupational (NOS) is covered across Unit/s.
Key Learning Objectives for the specific NOS mark the beginning of the Unit/s for that NOS.
• Describe the manufacturing process
• Describe the assembly line process
• Explain the assembly line process in a refrigerator manufacturing unit
• Describe electric circuits
• Describe voltage, current and resistance
• Define Ohm's law
• Define the principle of refrigeration
• Explain the uses and terms in refrigeration
• Explain the methods used in refrigeration
• Identify the types of tools used for assembling
• Describe the assembling flow of a refrigerator
• Explain the assembling steps
• Identify work requirements and targets
• List the ways to ensure quality and timely completion of work
• Identify standard safety procedures
• Explain the importance of participating in fire drills

The symbols used in this book are described below.

Symbols Used

Key Learning Steps Role Play Tips Notes Unit

Outcomes Objectives

Activity Practical

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Table of Contents

S. No Modules and Units Page No.

1. Basics of Assembling Process in Refrigeration and Air Conditioning (RAC) (ELE/N3506, ELE/N3507) 1
Unit 1.0 – Introduction to Assembling Process 3
Unit 1.1 – Refrigerator Manufacturing Process 7
Unit 1.2 – Air-Conditioner Manufacturing Process 10
2. Basics of Electricity and Electronics (ELE/N3506, ELE/N3507) 13
Unit 2.1 – Basics of Electric Circuits 15
Unit 2.2 – Components of an Electric Circuit 20
3. Refrigeration and Air Conditioning (RAC) (ELE/N3506, ELE/N3507) 33
Unit 3.1 – Basics of RAC 35
Unit 3.2 – Components in RAC 42
Unit 3.3 – Refrigerants 51
4. RAC: Tools and Safety while Handling Tools (ELE/N3506, ELE/N3507) 61
Unit 4.1 – Tools and its Maintenance 63
Unit 4.2 – Safety while Handling Tools 72
5. Assembling Process of Refrigerator and AC (ELE/N3506, ELE/N3507) 77
Unit 5.1 – Assembling of Refrigerator 79
Unit 5.2 – Assembly of AC 91
Unit 5.3 – Safety Policies, Precautions and Procedures 103
6. Soft Skills and Work Ethics (ELE/N9905) 117
Unit 6.1 – Effective Communication and Coordination at Work 119
Unit 6.2 – Working Effectively and Maintaining Discipline at Work 126
Unit 6.3 – Maintaining Social Diversity at Work 137
7. Basic Health and Safety Practices (ELE/N1002) 145
Unit 7.1 – Workplace Hazards 147
Unit 7.2 – Fire Safety 159
Unit 7.3 – First Aid 163
Unit 7.4 – Waste Management 167
8. Employability and Entrepreneurship Skills 173
Unit 8.1 – Personal Strengths and Value System 177
Unit 8.2 – Digital Literacy: A Recap 196
Unit 8.3 – Money Matters 201
Unit 8.4 – Preparing for Employment and Self-Employment 211
Unit 8.5 – Understanding Entrepreneurship 221
Unit 8.6 – Preparing to be an Entrepreneur 242

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1. Basics of
Assembling Process in
Refrigeration and Air
Conditioning (RAC)

Unit 1.0 – Introduction to Assembling Process

Unit 1.1 – Refrigerator Manufacturing Process
Unit 1.2 – Air-Conditioner (AC) Manufacturing
Process

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Key Learning Outcomes

At the end of this module, you will be able to:
1. Describe the manufacturing process
2. Describe the assembly line process
3. Explain the assembly line process in a refrigerator manufacturing unit
4. Explain the assembly line process in an AC manufacturing unit

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UNIT 1.0: Introduction to Assembling Process

Unit Objectives
At the end of this unit, you will be able to:
1. Describe the manufacturing process
2. Describe the assembly line process

1.0.1 The Manufacturing Process

A manufacturing process is a sequence of steps that transforms raw materials into a final
product. The process begins with creating the design of the product to be made. The raw
materials are then finalized and sourced. They are then shaped into desired parts. The parts
are assembled to make the final product. The product is then subjected to quality control
checks and inspection. Once it is cleared, the product is packed and shipped for delivery.
The following image shows the various stages of the manufacturing process:

Fig. 1.0.1: The manufacturing process

There are different types of manufacturing processes such as production line, assembly line,
custom manufacturing and fixed position manufacturing. The refrigerator and air-
conditioner manufacturing process follows the assembly line process by using various
equipment and machines.

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The following image shows the equipment and machines for the production of refrigerators
at a factory:

Fig. 1.0.2: Refrigerator manufacturing factory

1.0.2 What is Assembly Line Process?

An assembly line process is an automated process that involves breaking down the
manufacturing of a product into steps or tasks in a pre-defined sequence. Each worker is
responsible for executing a specific task on the product. The product then moves on to the
next worker or machine which in turn completes another specific task. This process goes on
till the manufacturing is complete and the product is made. The following image depicts the
concept of a basic assembly line process:

Fig. 1.0.3: Assembly line process

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The assembly line process was introduced by Henry Ford in mass production of automobiles
in 1908. Its success led to other industries adopting the process and it is now a common
method to assemble complex products such as household appliances, electronic goods,
automobiles and so on.
Principles of Assembly Line
Assembly line process is a continuous-flow production process in which the worker remains
stationary and performs the same small task repetitively. The product, on the other hand,
moves down in a sequence from operation to operation until it is completed. The following
figure lists the principles of the process:

The worker
The tools and men completes his/her
The product arrives
are placed in task and drops the
at the work station
position product in same
place

This process goes on The part arrives at The part is carried

till the product is the next work forward through
complete station conveyor belt

Fig. 1.0.4: Principles of assembly line process

Advantages of Assembly Line Process

Prior to assembly line production, the products were generally made one at a time by hand
by a single or a team of workers. They would make the parts, assemble them into a final
product and then carry out final tests before declaring a product fit for delivery. This
resulted in longer production times and dependency on skilled labour force. The following
figure lists the various advantages of the assembly line process:

• Increased production
• Reduced costs
• Interchangeable parts
• Standarized production process
Advantages • Less dependency on skilled labour
•Improved working conditions

Fig. 1.0.5: Advantages of assembly line process

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Activity
Write down the steps of the assembling process in an RAC assembly unit.

The product arrives

_____________ _____________
at the work station

The part arrives at

_____________ the next work _____________
station

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UNIT 1.1: Refrigerator Manufacturing Process

Unit Objectives
At the end of this unit, you will be able to:
1. Describe the manufacturing process of a refrigerator
2. Describe the assembling process of a refrigerator

1.1.1 Manufacturing Process of a Refrigerator

The manufacturing process of a refrigerator involves various steps from receiving the raw
materials to packing of tested, finished product. As an assembly operator the candidate
should be aware of each step in the manufacturing process and focus majorly on assembling
process.

The following figure shows the various stages of the manufacturing process of a refrigerator:

Raw material Press shop Vaccum foaming

Pre assembly
Assembly Paint shop
shop

Testing Packaging

Fig. 1.1.1: Manufacturing process of a refrigerator

Raw Material
In the first step, the raw material is obtained in the manufacturing plant which includes
metal sheets, assembling parts like copper tubes, foaming chemical, nuts, bolts and screws,
pre-assembled parts like compressors and evaporators and so on. These are then used in
different phases of refrigerator manufacturing.
Press Shop
In the press shop, the metal sheets are cut into required shapes for making the refrigerator
cabinet and doors. Small slots are made to make the fitting of the sheet panels and for
mounting screws. Heavy bench press and sheet metal cutting presses are used in this stage.

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Vacuum Foaming
In the vacuum foaming stage, the inner lining of the refrigerator cabinet and the door
assembly is filled with foam to provide insulation to the compartments. This process is done
by using a foaming machine which fills the foam into the lining and after some time creates
an insulation.
Paint Shop
In the paint shop, the metal parts after coming from the press shop are painted with
multiple coatings of protective paints to give better surface finish and long life to the metal.
Pre-Assembly Shop
In the pre-assembly shop, the parts like doors and cabinet are assembled before the final
assembly. The foamed cabinet is sealed, and the doors are attached with the gaskets and
shelves.
Assembly
In the assembling part, the different parts of the refrigerator are assembled on a single
moving assembling line. The assembly of refrigerator cabinet, door, evaporator and the
condenser, the charging of refrigerant and all other related tasks are done to make the
finished final product at the end of the assembly line.
Testing
Testing involves gas leak test and functionality test of individual components that have been
assembled. This is done to check their working in a single refrigeration system.
Packaging
In the final step, the tested refrigerator units are packed safely and then transported for
selling.

1.1.2 Assembling Process of a Refrigerator

The assembling process of refrigerator majorly depends upon the type of refrigerator unit,
which are shown in the following figure:
Types of
refrigerators

Direct cool Frost free

refrigerators refrigerators

Fig. 1.1.2: Types of refrigerators as per assembling process

The basic difference between the direct cool and the frost-free refrigerator systems is that in
frost free, there is no requirement of manual defrosting. A small element is placed instead,
which helps in melting the accumulated ice. Thus, the assembling process differs in the two
types of refrigerator systems.

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Some components such as cooling fan, fan motor, freezer, bimetal thermostat, sensors and
duct are installed in the front portion of a frost-free refrigerator. Some of these components
are not installed in the direct cool refrigerator or they are placed in the back assembly of the
refrigerator units. Later in the modules, after discussing the basics of refrigeration, the
assembling process of refrigerator has been explained.

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UNIT 1.2: Air Conditioning (AC) Manufacturing Process

Unit Objectives
At the end of this unit, you will be able to:
1. Describe the steps in the manufacturing process of an AC
2. Describe the assembling process of an AC

1.2.1 Manufacturing Process of an Air Conditioner (AC)

The manufacturing process of an AC involves steps in which the raw material such as metal
sheet is taken and then machined to create the assembling components. Other components
are then assembled, and then final product is tested and packed.
The following figure shows the steps involved in manufacturing of the AC:

Raw material Press shop Paint shop

Pre assembly
Testing Assembly
shop

Packaging

Fig. 1.2.1: Manufacturing process of AC

The basic manufacturing process flow is the same as that of refrigerators. In AC

manufacturing, the foaming process which is done for insulation in a refrigerator’s assembly
is replaced, as insulation in the AC unit is done with a different method. For insulation in AC
units, the foam-based structure is installed in the lining.

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1.2.2 Assembling Process of an Air Conditioner (AC)

The assembling process of an AC depends upon its type. The following are the types of ACs:
• Window AC
• Split AC
Assembling of a Window AC
A window AC works in a single unit; thus, the assembling is done on a single base and all the
components, such as PCB controls, compressor, copper tubing, condenser and so on are
installed over it. The assembly of a window AC starts with a foam base in assembly line, then
the assembling is done from the front and the back side simultaneously.
Assembling of a Split AC
A split AC contains two functioning parts which are indoor unit (IDU) and outdoor unit
(ODU). Thus, the assembling of each unit takes place on the assembly line. This assembly has
the same approach of simultaneous assembly of the front and back side. In indoor units, the
basic assembly of components such as control panel and air filters are installed. In outdoor
units, the heavy working parts like condenser, compressor and service valves ae installed.
These two units are installed separately and then connected with a pre-charged line set.

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2. Basics of Electricity
and Electronics

Unit 2.1 – Basics of Electric Circuits

Unit 2.2 – Components of an Electric Circuit

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Key Learning Outcomes

At the end of this module, you will be able to:
1. Describe electric circuits
2. Describe voltage, current and resistance
3. Define Ohm's law
4. Explain the difference between alternating current (AC) and direct current (DC)
5. Measure power and energy
6. Describe active components
7. Describe passive components
8. List electromagnetic components
9. Identify colour coding in different electrical components

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UNIT 2.1: Basics of Electric Circuits

Unit Objectives
At the end of this unit, you will be able to:
1. Describe electric circuits
2. Define voltage, current and resistance
3. Define Ohm's law
4. Explain the difference between AC and DC
5. Measure power and energy

2.1.1 Electric Circuits

An electric circuit is a path made by the interconnection of electrical components. Electrons
from a voltage or current source flow along this path. The following figure lists the elements
present in a basic electric circuit:

A source that provides electrical pressure known as

voltage or Electromagnetic force (EMF) to electrical
equipment to enable them to work.
Example: Battery

A device in a circuit which consumes electric power is

called load.
Example: Bulb

A conductor that connects the supply source and the

load.
Example: Wires

Fig. 2.1.1: Electric circuit constituents

An electric circuit consists of two paths/loops, as shown in the following image:

Fig. 2.1.2: Open and closed path

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In a typical circuit, a battery provides voltage for the load through wires. For example, the
required voltage for a bulb to glow is provided by a battery. The following image shows such
an electric circuit:

Fig. 2.1.3: An electric circuit

2.1.2 Types of Electric Circuits

An electric circuit is classified into two types:
• Series circuit
• Parallel circuit
Series Circuit
In this type of a circuit, all components are connected as a chain and the current flowing
through each one of them is the same all over the circuit. There is a single route through
which the current flows. So, the current passes through each and every component. Opening
or breaking any point in a series circuit causes the whole circuit to stop functioning, which
then needs to be replaced. The following image shows a series circuit:

Fig. 2.1.4: A series circuit

Parallel Circuit
In this type of a circuit, two or more than two components are connected in parallel. In a
parallel circuit, the components are of the same voltage. The current flow varies across the
components. If any point of the circuit gets damaged, only that part needs to be replaced.
The following image shows a parallel circuit:

Fig. 2.1.5: A parallel circuit

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2.1.3 Parameters of Electric Circuit

Electricity comes into existence whenever there is a flow of electric charge between any two
components. The main parameters associated with electricity are as follows:
1. Voltage
2. Current
3. Resistance
Voltage
A force that causes electricity to move across a wire/cable is known as voltage. Volt is the
unit of voltage and is denoted with letter V.
Current
Electric current, or simply current, is the flow of electric charge carried through electrons
moving across wires. Ampere is the unit of current and is denoted with letter I.
AC and DC Current
The following figure lists the two types of current sources that are dependent on the
direction in which the electrons flow:

AC can be defined as the flow DC can be defined as the flow

of current in which electrons of current in which the drift of
keep switching directions, electrons remains steady in a
going either forward or single direction.
backward. In this the magnitude of
In this, the magnitude of induced current remains
induced current varies with constant.
time. Types of DC are Pure and
Types of AC are Sinusoidal, Pulsating.
Trapezoidal, Triangular,
Square.
Fig. 2.1.6: Difference between AC and DC current

Resistance
Resistance is an obstruction caused by a substance to the current flow. The unit of resistance
is ohm and it is denoted with the symbol, Ω. According to Ohm’s law, 1Ω resistance allows
1A of current to flow from one point to the other with a 1V voltage difference.

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2.1.4 Ohm's Law

According to Ohm's law, the flow of current through a conducting material is directly
proportional to the conductor’s voltage. The mathematical equation of Ohm’s law is as
follows:
I = V/R
Where,
I is the current
V is the potential difference
R is the resistance
Ohm's law states that R in the preceding relation is constant and independent of the current
flowing through it as shown in the following image:

Fig. 2.1.7: Ohm’s law triangle

2.1.5 Power Calculation and Energy Consumption

When electricity flows in an electric circuit, it results in some work done. For example, when
it flows in a fan, the fan’s blades rotate and when it flows in a refrigerator, it cools the things
inside. Thus, when electricity flows through an appliance, it results in some work done. To
calculate the electricity consumed, the following two parameters need to be considered:
1. Energy
2. Power
Energy
If the electric power is the rate or speed of work done, then electric energy is the total
amount of work done in a given time period. It is a product of the power of an electrical
appliance and the duration of its usage.
Power
Electric power is the rate of electrical energy transferred by any electrical circuit in a given
time. The SI unit of power is watt which is represented by ‘W’, which is one joule per second.
The following equation shows the electrical power and energy calculation formula:
Electrical Energy (E) = Power (P) x Duration of Energy usage (T) = Power (Watt) x Time (hour)
E (Wh) = P (W) x T (h)
Power = Energy / Time
Example:
If 500W is used for a device for 4 hours, then consumption is = 0.5 kW * 4 Hrs. = 2 KWh.

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Activity
Calculate resistance in a given circuit using Ohm’s law.
Equipment required:
1. Resistor
2. Multimeter
3. Power Source

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UNIT 2.2: Components of an Electric Circuit

Unit Objectives
At the end of this unit, you will be able to:
1. Describe active and passive components
2. List electromagnetic components
3. Identify colour coding of different electronic components

2.2.1 Circuit Elements

A circuit consists of a number of components that may be electrical, electronic, mechanical
and so on. The following figure shows various types of circuit elements or components that
are used in a control panel:

Active Components

Passive Components

Electromechanical
Components

Fig. 2.2.1: Circuit elements

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2.2.2 Active Components

Active components depend on a source of energy to perform their functions. These
components can amplify current and can produce a power gain.
The following figure lists the different types of active components in a circuit:

Diode

Light Emitting Active

Transistor
Diode(LED) Components

Integrated
Circuit(IC)

Fig. 2.2.2: Active components

Diode
A diode is a specialized electronic component with two terminals known as the anode and
the cathode. It has very less resistance, ideally zero, to the flow of current in one direction
whereas it has high resistance, ideally infinite, in the other direction. Diodes are usually
made up of semiconductor materials such as germanium, silicon or selenium. Appliances
such as refrigerators and ACs have this component in circuit boards. The following image
shows diodes:

Fig. 2.2.3: Diodes

Transistor
A transistor is an electronic device that is made up of a semiconductor material. Usually, it
consists of three or more terminals for connecting to an external circuit. It is utilized to
amplify or switch electrical power and electronic signals. Appliances such as refrigerators
and ACs have this component in circuit boards. The following image shows a transistor:

Fig. 2.2.4: A transistor

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IC
An IC, also known as a microchip, is a semiconductor wafer on which a number of small
resistors, capacitors and transistors are fabricated. It can work as an oscillator, an amplifier,
a timer, a counter, a microprocessor or as computer memory. Appliances such as
refrigerators and ACs have this component in circuit boards. The following image shows an
IC:

Fig. 2.2.5: An IC
LED
An LED is made of a p-n junction diode which releases light when it is activated. It is a two-
lead semiconductor source of light. Appliances such as refrigerators and ACs have this
component in their control panel display. The following image shows an LED:

Fig. 2.2.6: An LED

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2.2.3 Passive Components

Passive components are those components which can perform their specific functions
without any power source. These components are incapable of controlling current.
The following figure lists the different types of passive components in a circuit:

Transformer

Thermistor Resistor

Passive
Components

Inductor Capacitor

Fig. 2.2.7: Passive components

Transformer
A transformer consists of a metal core with coils of wire around it. It is a device used to
convert AC to the required values by decreasing or increasing the alternating voltages in an
electronic or electric system. Appliances such as refrigerators and ACs have this component
in their power circuit board.
The following image shows a transformer:

Fig. 2.2.8: A transformer

Resistor
A resistor is a component in an electronic circuit which is built to resist or limit the flow of
current in that circuit. Its size varies in length from 5mm up to 300mm. Appliances such as
refrigerators and ACs have this component in their circuit boards.

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The following image shows resistors:

Fig. 2.2.9: Resistors

Colour Coding of Resistors

Colour coding was formulated to indicate the value of electronic resistance of a resistor.
In a resistor, colour coding is read as follows:
• Colour bands should be read from that end which has the bands nearest to it.
• The 1st and 2nd bands stand for the first two digits.
• The 3rd band represents the power-of-ten multiplier (the number of zeroes after the
second digit).
• The 4th band represents the manufacturer's tolerance (accuracy of the resistor).
The following figure represents colour coding in a resistor:

Fig. 2.2.10: Colour coding in a resistor

Capacitor
A capacitor is a device which is made up of one or more pairs of conductors and an insulator
separating them. It is used to store electric charge. Appliances such as refrigerators and ACs
have this component. The following image shows capacitors:

Fig. 2.2.11: Capacitors

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Inductor
An inductor consists of a coil or a wire loop. This component is used to store energy in the
form of a magnetic field. The more the turns in the coil, the more will be the inductance.
Appliances such as refrigerators and ACs have this component. The following image shows
inductors:

Fig. 2.2.12: Inductors

Thermistor
A thermistor is a kind of resistor which is more sensitive to temperature as compared to
other resistors. It is extensively used as a temperature sensor, a self-regulating heating
element and a self-resetting overcurrent protector. Appliances such as ACs have this
component. The following image shows a thermistor:

Fig. 2.2.13: A thermistor

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2.2.4 Electromechanical Components

Electromechanical components convert electric energy into mechanical energy (mechanical
movement) or vice versa for carrying out electric operations. The following figure lists
various electromechanical components:

Motor
Printed
Circuit
Timer Boards
(PCBs)

Electromechanical
Starter Relay
Components

Circuit
Connector Breaker

Switch

Fig. 2.2.14: Electromechanical components

Motor
A motor is an electrical component which is used to transform electrical energy into
mechanical energy to produce linear or rotary force. These motors can be powered by using
DC or AC motors. The following image shows an electric motor which runs on AC power
supply.

Fig. 2.2.15: A motor powered by AC current

PCB
A PCB acts as a base for the components that are mounted on its surface and are
interconnected with wires, conductive tracks and so on. The components are generally fixed
on the circuit board according to the specified design with the help of soldering.

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Appliances such as refrigerators and ACs have this component. The following image shows a
PCB:

Fig. 2.2.16: A PCB

Switch
A switch is a component used to make or break connections in an electrical circuit. It is used
to divert the current from one conductor to another. It can be operated manually to control
a circuit such as a light switch or can be operated by a moving object.
The following image shows a typical switch used in small appliances such as refrigerators and
ACs:

Fig. 2.2.17: Switch

Relay
A relay is a switch that controls an electrical circuit by opening and closing contacts in
another circuit, electromechanically or electronically. In electromechanical relays, the
opening and closing of contacts is done by a magnetic force. The electromechanical relays
are operated by an electromagnet, which is a coil of wire wrapped round an iron core. In
solid state relays, the switching is electronic as there are no contacts. Appliances such as
refrigerators and ACs have this component. The following image shows both the relays:

Fig. 2.2.18: Solid state relay and electromagnetic relay

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Circuit Breaker
A circuit breaker is a requisite component of an electrical power system required for its
control and protection. It is a switching device which can be operated manually as well as
automatically. Its main function is to shield an electric circuit from harm caused by overload
or short circuit. It interrupts the current flow when protective relays find out a fault.
Appliances such as refrigerators and ACs have this component. The following image shows a
circuit breaker:

Fig. 2.2.19: A circuit breaker

Starter
A starter in a refrigeration or air conditioning system helps start the motor. The starter is
used since the motor windings installed in the system takes time to start as there is a
previously maintained high pressure head in the system. This starter motor helps the main
motor to start by decreasing the voltage and varying the value of frequency to the main
motor start up. The following image shows a starter:

Fig. 2.2.20: A starter

Timer
A timer or time switch is a type of circuit which is used for timing the refrigeration or air
conditioning units. The timer operates as a switch which is controlled by a timing circuitry
device. Air conditioning systems have timers which turns on/off the unit for certain period of
time, set automatically or manually.

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In refrigeration units, the timer works for activating the defrost switch to melt the frost for
certain period of time by turning off the evaporator coil.
The following image shows a timer:

Fig. 2.2.21: Refrigerator defrost timer

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Activity
Identify the different electronic components and write down their names in the boxes given
below them:

1. 2.

3. 4.

5.

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Activity
Perform categorisation of the following components as active or passive:
1. Resistor
2. Transistor
3. Capacitor
4. Diode
5. LED
6. Inductor
7. IC
8. Thermistor
9. Transformer

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Practical
Perform a task to create series and parallel circuit connections.
Equipment required:
1. Power Source
2. Loads
3. Connecting wires

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3. Refrigeration and Air

Conditioning (RAC)

Unit 3.1 – Basics of Refrigeration

Unit 3.2 – Components in Refrigeration cycle
Unit 3.3 – Refrigerants

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Key Learning Outcomes

At the end of this module, you will be able to:
1. Define the principle of refrigeration
2. Explain the uses and terms in refrigeration
3. Explain the methods used in refrigeration
4. Explain the sealing system and its advantages
5. Define basic components in refrigeration
6. Identify the types of compressors
7. Explain the working of the basic components
8. Define refrigerant
9. List the properties of refrigerant
10. Identify the types of refrigerants
11. Explain the safe working conditions with refrigerants

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UNIT 3.1: Basics of Refrigeration

Unit Objectives
At the end of this unit, you will be able to:
1. Define the principle of refrigeration
2. Explain the uses and terms in refrigeration
3. Explain the methods used in refrigeration
4. Explain the sealing system and its advantages

3.1.1 Refrigeration
Refrigeration is a process in which heat from a low temperature region is transferred to a
high temperature region. In other words, cooling of a substance by removing heat from it is
refrigeration. Refrigeration systems are used to cool substances to a temperature below the
temperature of the surrounding environment to preserve them. The following image shows
the basic principle of refrigeration:

Fig. 3.1.1: Refrigeration

3.1.2 Principle of Refrigeration

Refrigeration works on the second law of thermodynamics which states that heat does not
flow from a low temperature body to a high temperature body without the help of external
work. The following image shows refrigeration by means of external work:

Fig. 3.1.2: Refrigeration principle

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3.1.3 Uses of Refrigeration

Refrigeration has had a huge impact on lifestyle, agriculture, manufacturing and processing
industry. It has made it possible to preserve food for long periods of time, to store and
distribute agriculture produce over long distances, to facilitate many chemical processes, to
manufacture different medicines and to provide comfort by air conditioning.
The following image shows the major uses/applications of refrigeration:

Food industry Chemical and process industry

Pharma industry Air conditioning

Fig. 3.1.3: Uses of refrigeration

Food Industry
One of the most important applications of refrigeration has been in the food processing,
preservation and distribution industry. It has enabled processing of raw food into packaged
food such as beverages, dairy products and frozen foods. Processed food can be stored and
preserved at temperatures at or below zero-degree C. Cold storages, refrigerated trucks and
rail cars have made it possible to cover large distribution areas without affecting the quality
and taste of the produce.
Chemical and Process Industry
Many chemical processes require temperatures below zero-degree C to work. Refrigeration
has made it possible to separate and liquefy gases in petrochemical industry, dehumidify air,
solidify solutes, remove heat from chemical reactions, recover solvents and control
fermentation.

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Pharmaceutical Industry
Refrigeration has changed the face of the pharmaceutical and medical industry. It has made
it possible to manufacture several antibiotics and other drugs that require a process known
as freeze drying. It is now possible to store and distribute medicines, vaccines, blood plasma
and tissues and preserve blood and bone marrow. It has enabled the use of local
anaesthesia for surgeries.

Air Conditioning
Air conditioning is based on the principle of refrigeration and has been developed to provide
comfort to humans. Air conditioning in buildings such as homes, schools, offices, hotels,
restaurants and so on ensure that the core body temperature is maintained around 37
degrees Celsius, thereby providing comfort and satisfaction.

3.1.4 Terms Used in Refrigeration

Refrigerant: Refrigerant is the main working fluid in any refrigeration system and it has a low
boiling point. It vaporizes at low temperature and takes the heat away from the substance
which has to be refrigerated.
Examples: Freon 12 are used in domestic refrigerators and Freon 22 are used in ACs.
Cooling Capacity: It is the rate at which heat is removed from a cold body or the rate of
refrigeration produced.
Unit of capacity of refrigeration is ton. One ton of refrigeration is the quantity of heat
removed to freeze one ton of ice at a temperature of 0 °C in a time period of 24 hours.
British thermal unit (BTU): Is defined as the amount of heat which is required to raise the
temperature of one pound of water by one-degree Fahrenheit.
Cal or Watt: The amount of energy which is required to raise the temperature of one gram
of water by one degree Celsius at constant pressure of one atmosphere.
Refrigeration Effect: It is the quantity of heat removed in unit time or the ratio of quantity of
heat removed to the total time taken to remove that heat.
Heat removed
Refrigeration effect =
Time taken
Psychometry: It is the study of the properties of moist air or mixture of air and water
vapour.
Dry Air: Dry air is the atmospheric air without the presence of water vapour.
Moist Air: Air which contains water vapour is called as moist air.
Humidity: The amount of water vapour present in air is called as its humidity. Humidity of air
depends upon temperature and is independent of pressure.
Relative Humidity: It is the ratio of mass of water vapour present in air to the mass of water
vapour in fully saturated air at the same temperature and volume standards.

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3.1.5 Methods of Refrigeration

The refrigeration method can be divided into two categories on the basis of its working:
1. Vapour Compression Refrigeration
2. Vapour Absorption Refrigeration
Vapour Compression Refrigeration
This type of refrigeration system is used mostly as domestic refrigerators and works on
vapour compression refrigeration system (VCRS). In VCRS cycle the vapour changes its phase
from vapour to liquid and vice versa.
A VCRS has basic components as shown in the following figure:

•It compresses the refrigerant from low pressure and low

Compressor
temperature to high temperature and high pressure.

•It is a coil of copper tubes which condenses the refrigerant from

Condenser
vapour form to liquid form.

•It is used to control the refrigerant rate of flow to reduce its

Capillary Tube
pressure.

•It is made of copper tubing and provides a space where cooling

Evaporator
takes place.

Fig. 3.1.4: Basic components of VCRS

Working Principle of VCRS

The refrigerant at low pressure and low temperature flows through the compressor, where
it is compressed into a high pressure and temperature range. This vapour form of the
refrigerant, which is at high temperature and pressure, passes through the condenser. The
condenser helps the refrigerant to condense into a high-pressure liquid refrigerant. This fluid
passes through the expansion valve where the pressure and temperature of the refrigerant
is lowered. Then, this goes into the evaporator where it is converted into a low-pressure
vapour. In the end, the low pressure refrigerant enters the compressor.
The following image shows the basic working of a VCRS:

Fig. 3.1.5: A VCRS

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Vapour Absorption Refrigeration

In a VCRS, the compressor consumes large amount of energy. So, in vapour absorption
refrigeration system (VARS) the compression cycle is eliminated and in place of that the
following processes are introduced:
• Ammonia in vapour form is absorbed into water
• This is pumped into a high-pressure cycle
• Ammonia vapour is produced by heating this mixture
A VARS has basic components as shown in the following figure:
•The generator heats the aqua-ammonia solution received
Generator from the absorber. Thus, it forms ammonia vapour at high
pressure and hot ammonia solution with water.

•It converts high pressure vapour ammonia into liquid

Condenser
ammonia by circulating cooling water.

Capillary Tube/ •Liquid ammonia is expanded and converted into low

Expasnion Valve pressure and low temperature ammonia.

•This part is made up of copper coils and acts as a cold

Evaporator chamber where the cooling process takes place by removing
heat from the substance to be cooled.

•It mixes the low pressure ammonia vapour and the weak
Absorber
ammonia solution to make a strong aqua ammonia solution.

Fig. 3.1.6: Basic components of VARS

Working Principle of VARS

The following image shows the basic working of a VARS:

Fig. 3.1.7: A VARS

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In a VARS, ammonia works as the working fluid. In the absorber, there is a strong aqua-
ammonia solution which is pumped into a generator where the solution is heated. The
ammonia gets evaporated at high pressure and weak ammonia solution is left.
This low-pressure ammonia passes through the evaporator and absorbs the heat from the
substance which needs to be cooled. Thus, the ammonia gets evaporated to form low
pressure ammonia vapour which is sent to the absorber and this cycle is repeated.

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Activity
1. Write the uses of refrigeration and air conditioning shown in the following images in the
boxes provided below them.

2. Fill the red outlined places as per the diagram of the working principle of refrigeration.

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Unit 3.2: Components in a Refrigeration System

Unit Objectives
At the end of this unit, you will be able to:
1. Identify the basic components in refrigeration system
2. Identify the types of compressors
3. Explain the working of the basic components
4. Describe the working of refrigerators and ACs

3.2.1 Refrigeration System Components

A refrigeration system consists of four main components as shown in the following figure:
Components of a
refrigeration
system

Evaporator Compressor Condenser Capillary tube

Fig. 3.2.1: Basic components of a refrigeration system

Evaporator
The evaporator turns the cold, low pressure refrigerant into vapour. It is located in the
freezer section of the refrigerator and has a fan blowing across coils of copper or aluminium
tubing. The cooler refrigerant absorbs the warmer heat from the surrounding and its
temperature rises. This cools down the surrounding and a warm, low pressure refrigerant is
sucked into the compressor. There are two types of evaporators:
• Fin type evaporator: It is used in AC’s mostly.
• Roll bond evaporator: It is used mostly in domestic refrigerators.
The following image shows the two types of evaporators:

Fig. 3.2.2: A fin type and a roll bond type evaporator

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Compressor
The compressor is the most important part of the refrigeration system. It pulls in the low-
pressure refrigerant from the evaporator through a suction line and compresses it into a
high-pressure vapour. The following image shows a compressor:

Fig. 3.2.3: A compressor

The compressor is a mechanical device that consists of a power source; that is the motor and
a compressing mechanism sealed inside a metal housing. There are five main types of
compressors that are used in any refrigeration system. These are as shown in the following
figure:
Reciprocating compressor
•A positive displacement compressor that delivers gas at
high pressure by using pistons.

Rotary compressor
•A positive displacement compressor that uses a rotary
impeller to drive the air through a curved chamber to
compress it.

Scroll compressor
•A positive displacement rotary compressor with a fixed
and rotating scroll. Gas is compressed by confining in
between the two scrolls.

Fig. 3.2.4: Types of compressors

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Condenser
The condenser is a device that removes heat from the refrigerant and changes it to a liquid
form. It consists of coils of aluminium exposed to the atmosphere and a fan that blows
across the coils. It is located at the back of a refrigerator. When the hot, high pressure
refrigerant flows through the copper tubes, the fan cools the vapour refrigerant and changes
it into liquid. This liquid refrigerant enters the expansion valve.
The following image shows a condenser:

Fig. 3.2.5: A condenser

Capillary Tube
For decreasing the pressure of the refrigerant coming from the compressor, a device is
installed in the refrigeration/air conditioning system known as a capillary tube. This is a
throttling device used commonly in refrigeration and air conditioning systems. It is a copper
tube with a very small internal diameter. This tube is coiled multiple times. The small
opening of the tube helps in pressure drop of the refrigerant. The following image shows a
capillary tube:

Fig. 3.2.6: A capillary tube

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3.2.2 Working of Refrigerator and AC

Refrigerators and ACs contain components such as a compressor, an evaporator, solenoids
and controls which are connected with each other to work as a system.
Domestic Refrigerators
Refrigerators are used to lower the temperature of food and other products to improve their
life. In refrigerators, the heat is transferred from a confined space which stores the item to
be cooled to the external environment.
The refrigerators based on it uses are of two types:
• Frost Free Refrigerators: In frost free refrigerators, no manual defrosting is required. A
small element helps remove the accumulated ice time to time. Basic difference is in
circuit diagram. The following figure shows the basic components of a frost free
refrigerator:

Fig. 3.2.7: Frost free refrigerator

• Direct Cool Refrigerators: In direct cool refrigerators, a defrost circuit is attached which
helps to melt the ice when turned on to remove the accumulated ice. The following
image shows the basic components of a direct cool refrigerator:

Fig. 3.2.8: Direct cool refrigerator

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The evaporator tubes made of copper are connected to capillary tubes and they are sealed
properly to prevent any leakage of the refrigerant gas. The other end of the evaporator
tubing is connected to the compressor from where the refrigerant in compressed form flows
into the evaporator. The other end of the compressor is connected to the condenser cooling
unit. The evaporator is connected between the capillary tube and the compressor. The
compressor contains a compressor relay box from where its settings can be changed as per
the use. The main power supply is attached to the compressor for the functioning of the
refrigeration cycle. The filter drier is attached between the capillary tube and the condenser.
The thermostat and the cold control is connected to the compressor control and the
evaporator. The door switch and the interior light is connected to the compressor control.
All pipe connections are sealed to prevent any refrigerant leakage.
Basic Wiring of a Domestic Refrigerator
• Frost Free Refrigerators: In frost free refrigerators, a defrost heater is attached, which is
activated when there is ice accumulation in the compartment. It also helps in the
circulation of air to keep the food item safe.
The following image shows the basic wiring diagram of the components of a domestic
refrigerator:

Fig. 3.2.9: Basic wiring of a frost-free refrigerator

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• Direct Cool Refrigerators: In direct cool refrigerators, there is a manual switch in the
circuit which needs to be manually switched on to defrost the ice accumulated in the
refrigerator compartment.
The following image shows the circuit diagram of a direct cool refrigerator:

Fig. 3.2.10: Basic wiring of a direct cool refrigerator

AC
Air conditioning is the process of removing heat and moisture from an area to a place
outside of the area, which makes the environment comfortable for the occupants. This
basically works on the principle of refrigeration.
The air conditioning systems are basically of two types:
• Window AC: Window AC basically comprises of a single working unit which can be
installed at a window. The condenser and the evaporator work on a single base. The
following image shows the basic components of a window AC:

Fig. 3.2.11: Window AC diagram

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• Split AC: A split AC is basically a two unit set. One is indoor unit (IDU) and the other one
is outdoor unit (ODU). The IDU contains the evaporator, the basic air filter and the vents
and the ODU contains the condenser coils, the fan motor and other compressor like
parts. The following image shows the basic components of a split AC:

Fig. 3.2.12: Split AC diagram

Basic Wiring of ACs
• Window AC: As window AC comprises of only one unit in which all the components are
connected, the wiring is done for a single unit. The following image shows the basic
wiring diagram of the components of a window AC:

Fig. 3.2.13: Basic wiring of a window AC

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• Split AC: A split AC contains two units, IDU and ODU. So, both the compartments have
their different wiring connections. The following image shows the circuit diagram of
both the units of a split AC:

Fig. 3.2.14: Basic wiring of a split AC

The main power supply chord is split into ground wire, live wire and neutral wire.
Ground wire is connected to the metal casing of the AC. Live wire is connected to the
selector switch to supply power in the compressor, the motor and the other parts of the
AC. The live wire from the selector switch is connected to the thermostat switch, then to
the compressor of the AC and with the fan motor as well. The neutral wire is connected
to the fan motor and the compressor and it goes directly without involving any switch.
The connections are done at the backside of the selector switch. All the neutral wires are
connected so that they become common to each other; this enables the connection to
be connected at the same point.

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Activity
1. Write the basic components of a refrigeration system in the space provided in the
following figure.

Components of a
refrigeration
system

___________ ____________ ____________ ____________

2. Identify the components of an RAC unit and write their names in the space given below
their images.

_________ _________

__________ __________

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Unit 3.3: Refrigerants

Unit Objectives
At the end of this unit, you will be able to:
1. Define refrigerant
2. List the properties of refrigerant
3. Identify the types of refrigerants
4. Explain the safe working conditions with refrigerants

3.3.1 Refrigerant
A refrigerant is a chemical compound that is used in the refrigeration cycle to transfer heat
from one area to another. Refrigerants are used in all cooling devices such as refrigerators,
freezers and air-conditioners. Most commonly used commercial refrigerants are ammonia,
sulphur dioxide and non-halogenated hydrocarbons.
Properties of Refrigerants
An ideal refrigerant should satisfy certain thermodynamic, chemical and physical properties
to be able to be used safely and efficiently in a refrigerating equipment. In addition, they
should not pose any danger to health and property. The following figure shows the
properties that an ideal refrigerant should possess:
Thermodynamic Chemical Physical
Other Properties
Properties Properties Properties
•Low boiling •Odourless •Low viscosity •Easy to handle
point •Non-toxic •High thermal •Readily
•Low freezing •Non conductivity available
point inflammable •Low specific •Low cost
•Low •Non corrosive volume •Low power
condensing •Immiscible with •Low specific requirement
pressure oil heat
•High latent •High electric
heat of resistance
vaporization

Fig. 3.3.1: Properties of refrigerants

Selection of Refrigerants
Even though a variety of refrigerants are available commercially nowadays, no one
refrigerant has proved to be ideal under all circumstances. In some applications, a non-toxic,
non-inflammable refrigerant is a must but in other applications, these two characteristics
might not be that important. Therefore, when selecting an appropriate refrigerant, care
must be taken to choose the one which has properties closest to an ideal refrigerant for that
application.

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3.3.2 Types of Refrigerants

There are two main categories in which refrigerants are divided. These are shown in the
following figure:

Chloroflurocarbons (CFCs)

Hydrochloroflurocarbons
Synthetic
(HCFCs)

Hydroflurocarbons (HFCs)

Refrigerants Hydrocarbons

Carbon dioxide

Natural Ammonia

Water

Air

Fig. 3.3.2: Types of refrigerants

Synthetic Refrigerants
Synthetic Refrigerants are man-made refrigerants. They are very harmful to the environment
and have led to ozone depletion and a rise in global warming.
CFCs
CFC is an organic compound that is made up of Chlorine, Fluorine and Carbon. They were
developed in the 1930s and were used in nearly all households and commercial, industrial
and automotive industries. CFCs are chemically very stable. They are compatible with most
substances. They are non-toxic, non-flammable and non-reactive. The most common CFC
refrigerants are R11, R12, R13, R13B1, R113, R114, R500, R502 and R503. However, it was
discovered that chlorine in CFC is damaging the ozone layer, leading to its depletion.
Therefore, their use has been prohibited since 1987 by the Montreal protocol.

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The following image shows the molecular structure of CFC:

Fig. 3.3.3: CFC

HCFCs
HCFC is an organic compound that is made up of Hydrogen, Chlorine, Fluorine and Carbon.
They too have been widely used since 1930s in households and commercial, industrial and
automotive industries. They are energy-efficient, low-in-toxicity and cost effective. They are
less stable than CFCs but are equally compatible with most substances. The most common
HCFC refrigerants are R22, R123 and R124. They are less damaging to the ozone layer and
have helped to bring down the CFC consumption by 75%. However, their main drawback is
that they are strong greenhouse gases. The following image shows the molecular structure
of HCFC:

Fig. 3.3.4: HCFC

HFCs
HFC is an organic compound that is made up of Hydrogen, Fluorine and Carbon. They have
been widely used since 1990s in all applications that were initially using CFCs and HCFCs.
HFCs are chemically very stable. They are compatible with most substances. The most
common HFC refrigerants are R134a, R32, R125 and R143a. As they do not contain chlorine,
they pose no damage to the ozone layer. However, their main drawback is that they are
strong greenhouse gases.
The following image shows the molecular structure of HFC:

Fig. 3.3.5: HFC

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Natural Refrigerants
Natural Refrigerants are present in nature and do not need to be artificially created. As they
have no impact either on the ozone layer or on global warming, they are considered as safe
and cost-effective refrigerants.
Hydrocarbons (HCs)
HFC is an organic compound that is made up of Hydrogen and Carbon. They were widely
used until 1930s and have been reapplied since 1990s. HCs are chemically very stable and
are compatible with most substances. The most common HC refrigerants are R600A, R290,
R1270 and their blends. They pose no damage to the ozone layer. The following image
shows the molecular structure of HC:

Fig. 3.3.6: HC
Ammonia (NH3, R717)
Ammonia is an organic compound that is made up of Hydrogen and Nitrogen. It has been
widely used as a refrigerant since 1800s and is at present used for commercial refrigeration
and chillers. It is chemically stable but reacts with carbon dioxide, water or copper. It is very
cost effective and easily available. It has no impact on the ozone layer. The following image
shows the molecular structure of ammonia:

Fig. 3.3.7: Ammonia

Carbon dioxide (CO2, R744)
Carbon dioxide is an organic compound that is made up of Carbon and Oxygen and has been
widely used as a refrigerant in 1800s and then reapplied from 1990s. It is used in industrial
refrigeration, cold storage and hot-water pumps. It is chemically very stable and compatible
with most substances. It is non-inflammable and has low toxicity. It is very cost effective and
easily available. It has no impact on the ozone layer.

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The following image shows the molecular structure of carbon dioxide:

Fig. 3.3.8: Carbon dioxide

The following table shows the properties of different types of refrigerants used in
commercial applications:

Refrigerant Description Image

HCFC R22 • Suitable for installations requiring
low evaporating temperature
• Used with reciprocating, rotary and
centrifugal compressors
• Non-inflammable, non-poisonous,
non-corrosive and non-irritating
• Colour code: green
R290 • Highest latent heat
• Largest vapour density
• Miscible in oil and compatible with
copper
• Low molecular mass and vapour
pressure
• Saves up to 20% energy
HFC R134a • Eco-friendly
• Used as replacement for R12
• Non-inflammable, non- toxic, non-
corrosive
• Used with reciprocating, rotary,
screw and centrifugal compressors
• Colour code: light blue
HC R600a • Most common refrigerant for
refrigerators
• Colourless, odourless and
inflammable
• Colour code: orange
HC Blends R410a • Blend of R32 and R125
• Ozone friendly
• Does not contain chlorine
• Chemically stable
• Non-inflammable and non-
poisonous
• Colour code: pink

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3.3.3 Sealed System

A sealed system essentially means any system whose working is concealed and is closed to
the atmosphere. An RAC sealed system is the system in which the cooling takes place. It
consists of an evaporator, a condenser, a compressor, a suction tube and a metering device.
All the parts containing the refrigerant are sealed with brazing or welding and have capped
valves and service ports to enable repair.
The following image shows the components of a sealed system in refrigeration:

Fig 3.3.9: Components of a sealed system

Advantages of a Sealed System

The individual components and pipes in a sealed system have only brazed connections; they
do not have joints. The entire pipeline is in a single piece. The following figure shows the
advantages of a sealed system:

Possible to attain
Reliable operation lower temperatures

No possibility of air Unit can run in

ingress vacuum
Advantages

Fig 3.3.10: Advantages of a sealed system

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3.3.4 Safety While Working with Refrigerants

The refrigerants are basically chemicals and while working with them safety precautions
should be taken. An assembly operator should wear personal protective equipment (PPE)
while working with the refrigerants. The following image shows the PPE to be used:

Safety mask
Safety glasses Safety gloves

Safety shoes

Fig. 3.3.11: PPE

• To protect the eyes, safety goggles should be used.

• To protect hands and to avoid direct contact with the gas, safety gloves should be used.
• While handling heavy gas cylinders, safety shoes should be used.
• To prevent inhalation of harmful refrigerant gas, a gas mask should be used.
Some safety precautions to be followed while working with hydrocarbon refrigerants are
shown in the following figure:

Minimise the emission of refrigerant.

Maintain proper ventilation to allow air to dilute the refrigerant gas.

Remove the ignition sources from the work area like open flame or
electrical switches or motors.

Keep dry powder fire extinguisher near the work area to handle any fire.

Fig. 3.3.12: Safety precautions to be followed while working with hydrocarbons

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Activity
Write the name of the refrigerant gas below each of the following images as per the colour of
the refrigerant gas cylinder shown in the image.

____________ ____________ ____________

____________ ____________

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Practical
Perform a check of wiring of a refrigerator as per the wiring diagram of refrigerator.
Equipment Used:
1. Wiring diagram of a refrigerator
2. Refrigerator unit
3. PPE such as safety shoes and safety gloves
4. Electrical tester.

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Practical
Perform a circuit diagram check of the components of a window AC.
Equipment Used:
1. Circuit diagram for window AC components
2. Window AC unit
3. PPE such as safety shoes and safety gloves
4. Tool box

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4. RAC: Tools and Safety

while Handling Tools

Unit 4.1 – Tools and their Maintenance

Unit 4.2 – Safety while Handling Tools

Key Learning Outcomes

At the end of this module, you will be able to:

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Key Learning Outcomes

At the end of this module, you will be able to:
1. Identify the types of tools used for assembling
2. Identify the equipment used in assembling of RAC components
3. Explain the safety measures to be taken while handling tools

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UNIT 4.1: RAC: Tools and their Maintenance

Unit Objectives
At the end of this unit, you will be able to:
1. Identify the types of tools used for assembling
2. Identify the equipment used in assembling of RAC components

4.1.1 Introduction to Tools

Tools are non-consumable items that can be used in assembling RAC components.
Tightening of bolts, stripping wires and measuring angles and length can be easily done with
the help of specific tools. The tools can be divided into following categories based on the
type of use:
• Hand Tools: These tools can be operated easily to perform tasks by using power and grip
of hand. Some examples of hand tools are screw driver, hammer, measuring tape,
wrenches and so on. The following image shows the basic hand tools used in the
assembling of RAC components:

Fig. 4.1.1: Hand tools used in RAC components’ assembling

• Pneumatic Assembly Line Tools: These tools are pneumatically powered tools used in
the assembly line. They are handy and quick to operate. These tools are available on the
line and thus easy to access and operate by the assembly operator. The following image
shows a pneumatic tool used in the assembly line:

Fig. 4.1.2: Pneumatic tool used in RAC components’ assembling

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4.1.2 Basic Hand Tools

The following tools are used for basic assembling of RAC components:
1. Detachable Small Handle Screwdriver: It is a screw driver which can be used from either
end. One end has a plus ‘+’ shape for ‘+’ shaped screws and the other end is for minus ‘-’
shaped screws.
2. Detachable Long Handle Screw Driver: It is a similar kind of a screw driver with a long
stem. This also can be used from either end. One end has a plus '+' shape for '+' shaped
screws and the other end is for minus'-' shaped screws.
3. Slim Line Slot Head Screw Driver: It is used where hands or fingers cannot reach. It has a
long and thin stem and has a minus'-' shape.
4. Round Screw Driver: It is used to screw and un-screw the minus '-', plus '+', star '*',
hexagonal or any other type of screw. It has a magnetic front socket which can hold bits
of various shapes.
5. Bit Pad: It is a pad with eight-ten bits of varied shapes to be used with a round screw
driver.
6. Extension Bit/Rod: It is a component that is attached to the front of the round screw
driver to increase its length. Once attached, it increases the reach of the screw driver by
an inch to three-four inches. The following image shows a screw driver set:

Fig. 4.1.3: A screw driver set with bits

7. Tester: It is used to check the presence of electric current in various sockets and wires
during the assembling process. The following image shows a tester:

Fig. 4.1.4: A tester

8. Double Ended Round Spanner: It is a round spanner that can be used at either end. Each
end has a different size. Generally, a set of spanners has a combination of sizes 10-
11mm,
12-13 mm or 13-14mm.

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9. Simple Spanner: It is a normal spanner (wrench) which can be used at either end. These
are also two in number. One is a combination of 10-11mm and the other is a
combination of 12-13mm and 14-15mm. The following image shows a spanner set:

Fig. 4.1.5: Spanner with wrench heads

10. Adjustable Wrench: It is a spanner that can be adjusted as per the head size of a
nut/bolt. It is helpful in situations where the assembly operator encounters a head
which is either bigger or smaller than the limited sized spanner they otherwise carry
along with them.
11. Measuring Tape: It is a self-retracting pocket tape measure which is used to measure
the lengths and other parameters of objects while carrying out assembling. The
following image shows a measuring tape:

Fig. 4.1.6: A measuring tape

12. Spirit Level Meter: It is an ideal tool for precise determination of horizontals, inclines
and angles of a surface. The following image shows a spirit level meter:

Fig. 4.1.7: A spirit level meter

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13. Heavy Duty Hammer: It is used for driving nails, fitting parts, and breaking objects. It has
a handle and a head, with most of the weight in the head. One side of the head has a
little slit that is used to pull out nails from brackets. The following image shows a heavy-
duty hammer:

Fig. 4.1.8: A heavy duty hammer

14. Pliers: Pliers are hand tools that are designed primarily for gripping objects by using
leverage. Three types of pliers are used by an assembling operator. They are as follows:
a. Combination Pliers: These are used for gripping small objects, to cut and bend wire
and cable and to hammer other small tools such as a chisel, a screwdriver and small
nails. These pliers have a gripping joint at their snub nose and cutting edge in their
craw. They also have insulated handle grips that reduce (but do not eliminate) the
risk of an electric shock due to contact with live wires.
b. Side Cutter or Heavy Duty Cutter: These are used to cut wires and nails.
c. Wire Stripper/Cutter: It is used for stripping electric wires to remove insulation from
the wires while leaving them intact. It is an adjustable plier which can be adjusted
using a screw driver to enable its usage on a thicker wire as well. The following image
shows pliers and cutters:

Fig. 4.1.9: Cutters and pliers

15. Component Box: It is a small box to keep small spare parts like screws, nuts, bolts, p-
clips and so on.

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16. Digital Multimeter: It is an electronic device which is capable of taking various electronic
measures such as current, voltage or resistance. The basic measurements that are
normally made include voltage, current (both AC and DC) as well as resistance.
Advanced multimeters have a variety of other functions such as measurement of
frequency (not up to a high level of precision), capacitance and temperature. The
following image shows a digital multimeter:

Fig. 4.1.10: A digital multimeter

17. Hacksaw: It is used by the installer to cut a plastic pipe or a plastic conduit. It is a hand
saw with a C shaped frame which holds a blade. The following image shows a hacksaw:

Fig. 4.1.11: A hacksaw

18. Cutting Knife: It is used at a workplace to cut the tape of sealed packages without
damaging the packaging content. It is also known as a utility knife. The following is an
image of a cutting knife:

Fig. 4.1.12: A cutting knife

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19. Tube Cutter: This tool is used to cut a copper or a plastic pipe in a clean, convenient and
fast manner. It is also known as a pipe cutter. The following image shows a tube cutter:

Fig. 4.1.13: A tube cutter

20. Torque Wrench: It is used to measure the torque in nuts or bolts. It is mainly used in
prevention of over tightening of bolts. The following image shows a torque wrench:

Fig. 4.1.14: A torque wrench

21. Wrench: This tool is used to turn fasteners such as nuts and bolts by applying torque and
tightening the screw. The following image shows a wrench:

Fig. 4.1.15: A wrench

22. Refrigerant Gas Detector: This tool is used to detect a gas leak around the appliance or
in the surrounding. The following image shows a gas detector:

Fig. 4.1.16: A gas detector

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23. Digital Clamp Meter: An electrical tester which combines a multimeter with a current
sensor is known as a clamp meter. The probes in the device measure voltage whereas
the clamps measure the current. The clamps are the hinged jaws joined to an electric
meter that allows users to clamp around the cable/wire anytime for measuring the
current without disturbing any other element. While using a clamp meter, the
wire/cable to be measured is not disconnected.
The following image shows a clamp meter:

Fig.4.1.17: A clamp Meter

4.1.3 Pneumatic Tools

These tools as discussed earlier are powered by compressed air and are easy to operate. The
tools are quick to work with and thus increase the work efficiency on the assembly line.
1. Drill Machine: It is used to create holes and through-holes in concrete and masonry
(max. diameter 20 mm). It is also used for drilling metal sheets, wood, drywall and
driving screws. It operates at 600 W. It can be operated in two modes, normal as well as
hammer. The normal motion is a rotatory motion whereas hammer motion is a
combination of rotatory and hammer motion.
There are separate bits for both the modes. The following image shows a drill machine
and drill bits:

Fig. 4.1.18: A drill machine and drill bits

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Bits: The way a drill machine has two modes, normal and hammer, bits are also of two
types. One set of bits is used for normal drilling whereas the other set is used for
hammer drilling. A hammer drilling bit has got a different shape and also has grooves for
better grip. It is generally used for concrete and comes in varied sizes such as 6mm,
8mm, 10mm, 12mm and 47mm in length.
2. Pneumatic Screw Drivers: Pneumatic screw drivers are used to tighten or loosen the
screws that are mounted with a measurable amount of strength, which is required for a
good mounting. It is a multipurpose tool as only by changing the head of the tool,
multiple types of screws can be mounted and removed. The following image shows a
pneumatic screw driver:

Fig. 4.1.19: A pneumatic screw driver

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Activity
Look at the picture. Pick any 6 tools and write about them in the following table:

Name of the tool Function/Usage of the tool

1.

2.

3.

4.

5.

6.

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UNIT 4.2: Safety While Handling Tools

Unit Objectives
At the end of this unit, you will be able to:
1. Safety measures to be taken while handling tools

4.2.1 Maintenance and Housekeeping of Tools

As tools are essential for an assembly operator, regular maintenance and checks needs to be
done to maintain the tools in good condition. Using or working with a damaged, broken or
unsuitable tool is hazardous.
To keep the tools in good condition, the following practices should be adhered:
• The tools should be taken from the store as per the requirement and returned in good
condition after completion of work.
• A regular routine check of the tools should be done to examine their condition.
• The damaged and worn out tools should be fixed, else the tools should be replaced.
• Before and after completion of the work, the tools should be cleaned properly.
• The edges of sharp edged tools should be maintained sharp.
• The tools should be kept in the store department in an ordered way in proper toolboxes.
• The sharp tools should be kept with protective guard over the sharp edges.
• The broken tools should be discarded with care.
• Regular examination, repair and maintenance of the tools should be carried out only by
a competent person.
• Any issue related to damage or faulty tool/equipment should be reported to the store
supervisor or senior.

4.2.2 Safety while Working

While working at a site, an assembly operator should ensure to follow the safety regulations
to avoid any accident. Safety is the primary concern as per any company’s policy and
standards.
Safety should be followed:
• While handling tools/equipment
• Working around machines and electrical components.
The following safety points should be considered while working:
• Overloading – While using tools/equipment, make sure that they are not overloaded or
operated beyond working limits. The ladder or structure over which work has to be done
should not be overloaded as well.
• Overreach – Do not try to reach beyond a point while working on an elevated surface.
Keep the safety line tied with the safety belt while working.

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• Resting Tools – Avoid resting or hanging of tools over the assembly line.
• Carrying Tools – Always carry tools safely or use tool belts for carrying them.
• Stability – Always ensure to make a stable point of contact on the ground, especially
while working around automated machines or assembly lines. Ensure making three
points of contact rule for stable position before starting the work.
• Standardised Equipment – Ensure the use of standardised equipment like tools, ladders
and safety equipment.
• Maintenance – Always maintain tools and equipment in good condition and clean them
before using.
First Aid
While working on an assembly line and handling tools and equipment, a person might suffer
some injury. So, to handle such a situation the operator should know how to use the first aid
kit, which can provide the necessary first aid. The first aid box may contain:
• Instructions to provide first aid
• Sterile and antiseptic liquids
• Bandages of appropriate sizes and cotton
• Scissors, clippers and tweezers
• Cold pads
• Disposable gloves
The operator should have the required basic knowledge to provide first aid. Also, in case of
any accident, the person should contact emergency services as soon as possible via the
available communication methods.

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Activity
List 5 points that can help an assembly operator to keep his/her tools in a good working
condition:

1. _______________________________________________________________________
2. _______________________________________________________________________
3. _______________________________________________________________________
4. _______________________________________________________________________
5. _______________________________________________________________________

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Practical
Perform cleaning, maintenance and placement of the given hand tools:
• Hammer
• Plier
• Crimpers multimeter
• Screw driver
• Drill machine
Use the items such as dry cloths, cleaning agent, sand paper, and tool box.

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ssssssssssss

5. Assembling Process of
Refrigerator and Air
Conditioner

Unit 5.1 – Assembling of Refrigerator

Unit 5.2 – Assembling of Air Conditioner (AC)
Unit 5.3 – Safety Policies, Precautions and Procedures

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Key Learning Outcomes

At the end of this module, you will be able to:
1. Describe the assembling flow of a refrigerator
2. Explain the assembling steps
3. Explain the methods used in copper tube brazing
4. Describe the assembling flow of an AC
5. Explain the assembling steps
6. Explain safety precautions while electrical wiring
7. Identify the PPE in assembling process
8. Explain 5s and Kaizen methods as work standards

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UNIT 5.1: Assembling of Refrigerator

Unit Objectives
At the end of this unit, you will be able to:
1. Describe the assembling flow of a refrigerator
2. Explain the assembling steps
3. Explain the methods used in copper tube brazing

5.1.1 Refrigerator Assembling Based on its Type

In a refrigerator assembling process, different modules like storage cabinet, trays, doors and
electrical controls are received from the stores. The storage cabinet which has been foamed
and formed during the manufacturing process is first received. After that, the assembling
process takes place, in which all the modules are assembled to form a final product. It is vital
to ensure that these modules are in proper working condition.
The assembling of refrigerators is different for different types of refrigerators and models
based on their manufacturers. Majorly, the refrigerator assembly can be divided into two
parts based on the type of refrigerators discussed earlier.

Direct Cool Refrigerators

After the refrigerator cabinet is received on the assembly line, the assembling takes place in
two segments simultaneously, which are the front and the back assembly. At the end of the
assembly, performance test is done to check the functioning of each component and to
check if the standard desired result can be obtained for passing the refrigerator unit as per
the standards.
In direct cool, the assembling processes that are done are shown in the following flowchart:
Front Assembly Back Assembly

Install
Attach doors
evaporator

Assemble shelves
Install condenser
and racks

Add electrical Install

components compressor

Assemble the Install capillary

gasket sealing tube

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Pressurize and do
leak testing

Evacuate

Charge with gas

Performance test
Fig. 5.1.1: Assembling of a direct cool refrigerator

Frost Free Refrigerators

A frost-free refrigerator works on a different principle; so it requires a different type of
assembling. The basic of assembling remains the same as the refrigerator cabinet moves
forward in the assembly line and the operators install the components simultaneously from
the front and back side. After the final assembling, the refrigerator is tested and send for
packaging. The following flowchart shows the front assembly process of a frost-free
refrigerator:

Front assembly Back assembly

Assemble cooling coil Install condenser

Assemble fan motor Install compressor

Assemble freezer Brazing of joints

Assemble bimetal Pressurize and do leak

thermostat testing

Assemble sensors Evacuate

Assemble duct Charge with gas

Fig. 5.1.2: Assembling of a frost-free refrigerator

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Before assembling the components, first the pre-assembled manufactured components are
received and checked; then the final assembly on the block takes place.
Receive Foam-based Panels
As a part of the assembling process, foam-based pre-manufactured refrigerator
compartments are received in the assembling area. These include a refrigerator cabinet unit,
which is made from bent metal sheets. In this unit, foam is filled in the lining to make it
insulated. Proper slots and sections are made while foaming for assembling of freezer,
evaporator and other units. Door assembly is also manufactured in the same manner along
with the refrigeration compartments. These units are taken from the storage or
manufacturing units. The steps shown in the following flowchart are performed in receiving
the foam-based panels and cabinet and preparing them for further assembling process:

Receive the foam-based refrigerator cabinet and door assembly

and remove the packaging carefully.

Dispose the waste as per the working instruction.

Check the cabinet and foaming carefully for any damage.

Forward the cabinet and panels which are suitable and send the
damaged units back to the manufacturing or store department.

Fig. 5.1.3: Receiving and checking pre-assembled parts

Front Assembly Process

The steps for the front assembly process are as follows:
1. Assemble the Door Panel
The steps for assembling a door panel are as follows:
a. Receive the storage cabinet and the doors for the assembly and ensure that they are
in good condition.
b. Install the clamp over the storage cabinet where the door assembly needs to be
installed and secure it by tightly fitting the screws.
c. Place the door panel on the side of the cabinet over the clamps and align the door.
d. Install the clamps and place the screws; then tighten them to make a secure door fit.

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e. Swing the door to ensure its smooth functioning.

f. Ensure proper space is left for the smooth functioning of the door.

The following image shows the steps in assembling the door panel of a refrigerator:

Fig. 5.1.4: Assembling of the door panel

2. Assemble the Trays, Shelves and Doors Handles

The steps for assembling the door handles, trays and shelves are as follows:
a. Receive the door handles, the shelves and the trays and check if the specification is
as per the refrigerator model.
b. Install the door clamp on the refrigerator door and secure it with screws.
c. Install the handle clamps and secure it with screws.
d. Install the handle by sliding the clamp over the door.
e. Make sure that the fitting is tight and secure.
f. Open the refrigerator door up to the safe limit to easily install the shelves and the
trays.
g. Install the trays and the shelves by sliding them over the slots given in the inside of
the refrigerator cabinet.
h. Make sure that the right type of shelves are installed in the right slots.
i. Make sure that the shelves and the trays are installed securely and are in the right
position as per the installation manual.

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The following image shows the assembling of the trays, shelves and door handles of a
refrigerator:

Fig. 5.1.5: Assembling of the door handle, trays and shelves

3. Assemble the Evaporator/Cooling Coil and Fan Motor

The steps for assembling an evaporator are as follows:
a. Receive the evaporator assembly and remove the packaging safely using proper
tools. Dispose the packing waste as per the working instructions.
b. Check if the evaporator and evaporator fan assembly specification is matching with
the refrigerator model and type.
c. Install the evaporator in the desired slots given in the foamed refrigerator cabinet.
d. Place the evaporator carefully without damaging the cabinet.
e. Mount the screws to secure the position of the evaporator assembly.
f. Make sure that the evaporator connections are open and free to make connection in
further assembly process.
g. Connect the evaporator fan assembly in the desired slot given on the refrigerator
cabinet.
h. Mount screws to secure the fan assembly at its position.
i. Make sure the fan electrical wires are free to make connections.
j. Check the fitting of assembled components and forward the unit in the assembling
process.
k. Assemble the fan motor over the coil.
l. Attach the connecting cable to the given socket for power connection.
m. Secure the fan at its position by securing it with screws.

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The following image shows the steps in assembling the evaporator of a refrigerator:

Fig. 5.1.6: Assembling of the evaporator

4. Assemble the Electrical Components (Sensors and Ducts)

The steps for assembling an electrical panel are as follows:
a. Receive the PCB control panel along with the wiring connections.
b. Insert the control panel PCB in the control board housing.
c. Make the electrical wiring connection to the electronic board wiring.
d. Install the cover mount over the electrical board.
e. Install the electrical board over the refrigerator and secure the panel with screws.
f. Check the electrical connection by switching on the main power connection and
check the supply in each module.
g. Install the sensor on the panels provided in the inner lining of the refrigerator
compartment.
h. Connect the sensors with the supply ports given.
i. Mount the duct for proper air and water ventilation.
j. Secure the structures by mounting and fixing them with screws.

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The following image shows the steps in assembling the electrical panel:

Fig. 5.1.7: Assembling of the electrical panel

5. Assemble the Gasket Sealing

The steps for assembling a gasket sealing are as follows:
a. Install the gasket on the outer surface of the door lining.
b. Loosen the inner lining and install the screws.
c. Tighten the screws using a screw driver.
The following image shows the steps to assemble the refrigerator door gasket:

Fig. 5.1.8: Assembling of the door gasket

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Back Assembly Process

1. Assemble the Condenser
The steps for assembling a condenser are as follows:
a. Receive the condenser assembly and check for any damage.
b. Install the condenser over the back panel of the fridge on the slots given for
installation of condenser and secure it with screws.
c. Make sure that the opening for refrigerator filter and capillary tube are free for
assembling these components.
The following image shows the steps in assembling the condenser of a refrigerator:

Fig. 5.1.9: Assembling of the condenser

2. Assemble the Compressor

The steps for assembling a compressor are as follows:
a. Check that the compressor compatibility and specifications are as per the
refrigerator.
b. Connect the discharge and the suction tube using pliers and also install the valve in
the process tube.
c. Install the capacitor on the relay and the overload protector on the compressor.
d. Make the wiring connection for cooling and for the overload protector.
e. Cover the electrical components with a protective cover.
f. Remove the manifold and install the service valve caps.

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The following image shows the steps in assembling the compressor of a refrigerator:

Fig. 5.1.10: Assembling of the compressor

3. Assemble the Capillary Tube and the Refrigerant Filter

The steps for assembling a capillary tube and a refrigerant filter are as follows:
a. Receive the capillary tube and the refrigerant and check for any damage. Also, check
if the specification is matching with the refrigerator’s specification.
b. Attach the capillary tube end with the condenser and the evaporator and fit the joint
temporarily using a plier.
c. Make sure that the joints are made correct as per the assembling instruction so that
brazing can be done to make the joint permanent.
The following image shows the assembly of the capillary tube and the refrigerant filter:

Fig. 5.1.11: Assembling of the capillary tube and the refrigerant filter

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4. Sealing and Charging the System

Sealing and charging of a refrigeration system is a two done in single stage. Sealing is
done by performing the brazing operation and then the leak test is performed. After
checking the leaks the system is charged with the refrigerant gas.
Sealing the System
Sealing of the system is done by brazing operation. Brazing is the process of joining two
metals by filling the joint with a different metal, melted at a very high temperature. The
filler or the brazing rod is melted by the heat of the metals rather than the flame.
The following figure shows the most commonly used brazing techniques:
•Uses fuel in a gas flame such as acetylene, and oxygen
Torch brazing
with appropriate brazing torch to generate heat

Induction brazing •Uses a rapidly alternating current to generate heat

•Uses resistance of a metal to an electric current to

Resistance brazing
generate heat

Furnace brazing •Uses a furnace to generate heat

Fig. 5.1.12: Brazing techniques

The following table shows the steps of brazing a copper tube:

Step Task Image

No.
1. Cut the desired length of the
tube.

2. Remove the internal burrs with a

deburrer.

3. Assemble the tubes and the

fitting. Purge the residues out of
the tubes before brazing.

4. Apply uniform heat to both the

tubes and the fitting.

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5. Apply the filler material.

6. Complete the joint evenly and

remove heat.

Fig. 5.1.13: Steps of brazing a copper tube

Charging the Refrigerant:

The steps involved in charging the refrigerant in the refrigeration system are as follows:
a. Connect the tap valve line with the charging valve hose.
b. Open the charging valve and let the air flow out of the system.
c. Close the air outlet valve.
d. Ensure that the ambient temperature and the scale temperature are on level.
e. Open the line tap valve to let the refrigerant flow in the system.
f. Allow the system pressure to equalise and then close the charging valve when the
system is charged fully.
g. Wait for some time so that the liquid vaporizes and the system pressure equalizes;
after that close the line tap valve.
h. Disconnect the charger system and braze the valves of the compressor to seal the
system.
i. Perform a leak test.
The following image shows the steps in charging of refrigerant in a refrigeration system:

Fig. 5.1.14: Charging of refrigerant in refrigeration system

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Activity
Match the basic components of a refrigerator with their names:

Component Component’s name

Condenser

Expansion valve/Capillary tube

Evaporator

Compressor

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UNIT 5.2: Assembling of AC

Unit Objectives
At the end of this unit, you will be able to:
1. Describe the assembling flow of an AC
2. Explain the assembling steps

5.2.1 Air Conditioning Assembling Based on its Type

In the assembling of an AC system, different modules like the AC cabinet, the blower, the
condenser, the evaporator coil, the PCB with the control panels and the front panel are
assembled together to make a final complete working system. The assembling process of
ACs is different for different types, models and manufacturers. Majorly, the assembling of
ACs can be divided into two categories and the assembling process can be categorised on
this basis.
Window AC
A window type of an AC is made of a single working unit; so the assembling process of a
window AC includes front and back assembly. The following flowchart shows the assembling
process of a window AC:

Front assembly Back assembly

Assemble cooling
Install condenser
coil

Assemble venturi Install compressor

Add control Install drier

panel

Assemble Install copper tube

accessories

Pressurize,
evacuate and fill gas

Performance testing
Fig. 5.2.1: Assembling of a window AC

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Split AC
A split AC is made of two parts which are IDU and ODU. Both the components are assembled
separately on the assembly line.
The AC assembling process can be explained by the following flow chart:
Indoor Unit (IDU) Outdoor Unit (ODU)

Assemble evaporator/
Install condenser
cooling coil

Assemble fan Install condenser fan

Assemble air filter

Install compressor

Add control panel and

display Install capacitors
and service valves

Assemble vents
Install copper tubing
and perform brazing

Pressurize, evacuate
and fill gas

Install top cover

Performance testing
Fig. 5.2.2: Assembling of a split AC

Before starting the assembly of any type of AC the assembly operator has to receive the
pre-manufactured base compartment and perform a basic inspection to check if there is
any damage or fault which might affect the final product or further assembly.
Receive the Base Frame Compartment and the Other Modules
The steps for receiving the base frame compartment and other modules are as follows:
1. Receive the AC base frame/compartment.
2. Ensure that the condenser, the filter, the PCB, the control panel and the other modules
are as per the specifications.

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3. Unpack the modules carefully and dispose the packaging waste properly.
4. Inspect and make sure that the modules are not damaged. If there is any damage, then
report to the supervisor.
5. Prepare the modules for the final assembling process by doing the basic fittings.
The following image shows a foam-based AC compartment being inspected on an assembly
line:

Fig. 5.2.3: Inspection of AC compartment before assembly

The following are the steps involved in assembly of both window and split type AC:

1. Assemble the Condenser Assembly Unit

The steps for assembling a condenser assembly are as follows:
a. Receive the condenser unit which has to be assembled in the AC cabinet.
b. Insert the condenser into the AC cabinet in the slots given for the condenser unit.
c. Connect the thermistor on the mounting clip.
d. Attach the mounting screws holding the base plate of the condenser to the cabinet.
e. Connect the inlet and the outlet coolant line.
f. Mount the screws of the AC cabinet and the condenser.
The following image shows the steps involved in assembling the AC condenser:

Fig. 5.2.4: Assembling of the condenser unit

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2. Assemble the Evaporator Assembly/Cooling Coil

The steps for assembling an evaporator assembly are as follows:
a. Inspect the received evaporator coils for any damage or crack.
b. Install the evaporator coils in the ports given in the AC cabinet.
c. Connect the pipes with the compressor and the expansion valve for the coolant to
flow.
d. Mount and tighten the screws to fit the evaporator on the AC cabinet.
e. Make sure that the electrical connection are suspended freely.
The following image shows the steps involved in assembling the AC evaporator:

Fig. 5.2.5: Assembling of the evaporator unit

3. Assemble the Compressor

The steps for assembling a compressor unit are as follows:
a. Receive the compressor from the store and check the unit for any damage.
b. Install the compressor unit over the AC housing and secure its position with screws.
c. Connect the suction line with the evaporator and the discharge line with the
condenser unit.
d. Make temporary connection of the pipes that can be made permanent during
sealing of the system.

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The following image shows the steps involved in assembling the compressor in a
window AC unit:

Fig. 5.2.6: Assembling of the compressor unit

4. Assemble the Motor, Fan and Filter Unit

The steps for assembling a blower are as follows:

a. Check the received blower assembly.

b. Attach the fan motor to the blower.
c. Mount the motor assembly over the motor housing.
d. Attach the housing in front of the evaporator and secure it with screws.
e. Connect the power supply wirings of the blower by referring to the assembling
manual.
f. Mount the blower housing cabinet.
g. Secure the cabinet with screws.

The following image shows the steps involved in assembling a window AC blower:

Fig. 5.2.7: Assembling of the motor, fan and filter unit

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5. Assemble the Copper Tubing and Service Valves

The steps for assembling a copper tubing and service valves are as follows:
a. Receive the copper tubing and service valves.
b. Attach the copper tubing ends with the coils and condenser assembly.
c. Make temporary joints on the valves and the coils.
The following image shows the steps involved in assembling the AC copper tubing and
valves:

Fig. 5.2.8: Assembling of the copper coil and service valves

6. Assemble the PCB and the Control Panel

The steps for assembling a PCB and control panels are as follows:
d. Receive the PCB for assembling.
e. Check the connections on the PCB using a multimeter.
f. Mount the PCB on the AC cabinet.
g. Make the necessary wiring connections by referring to the assembling manual.
h. Secure the connections by fastening the screws.

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The following image shows the steps involved in assembling the AC PCB and control
panel:

Fig. 5.2.9: Assembling of the PCB and the control panel

7. Assemble the Filter Unit

The steps for assembling a filter unit are as follows:
a. Receive the filter assembly and check for any damage or crack.
b. Place the filter unit over the front housing of the AC.
c. Secure the filter with the clamps provided for holding it.
d. Mount the front panel of the AC.
e. Secure the front panel with screws.

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The following image shows the steps involved in assembling the window AC filter:

Fig. 5.2.10: Assembling of the filter unit

8. Braze the System, Perform Leak Test and Charge Refrigerant

Braze the System
The steps for sealing the system are as follows:
a. Deburr, clean and apply flux on the copper tubing connecting evaporator, condenser
and compressor units.
b. Leave the compressor valves for charging the refrigerant.
c. Make sure to apply the flux in the tubes’ inner lining.
d. Ignite the torch and apply the flame over the joints.
e. Keep moving the torch to avoid overheating.
f. Apply brazing agent over the joint while flaming the joint.
g. Fill the joints uniformly with the melted brazing agent.
h. Allow the joint to cool and then remove the residue flux.
i. Check the unit for a leak test using soap water solution.
j. Fill the leaks and make sure that the system is sealed properly.
Perform Leak Test
The steps for leak testing of the refrigerant are as follows:
a. Insert the leak testing meter at the end of the compressor.
b. Check the gas flow reading on the meter.
c. Also, perform the soap water test by applying soap water on the copper tube to
test for any leak.

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The following image shows the steps involved in leak testing of the refrigerant:

Fig. 5.2.11: Leak testing of the refrigerant

Charge Refrigerant
The steps for charging the refrigerant are as follows:
a. Take the refrigeration kit to a safe place near the AC unit.
b. Attach the service valve of the kit to the compressor line.
c. Attach the other compressor line to the tap valve.
d. Make sure that the connections are tight and secure.
e. Observe the pressure balance on the charging gauge.
f. Let the refrigerant fill in the unit completely.
g. Remove the refrigerant line and secure the compressor lines.
h. Seal the compressor line using the brazing method.
i. Perform a leak test for the refrigerant and fix if there is any leakage issue.
The following image shows the steps involved in brazing the system and charging the
refrigerant:

Fig. 5.2.12: Brazing the system and charging the refrigerant

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9. Assemble the Supply Unit and the Front Panel

The steps for assembling the supply unit and front panel are as follows:
a. Receive the power cord and the housing and check for any damage or crack.
b. Connect the power supply cord to the PCB control panel and the capacitor unit.
c. Secure the electrical connection as per the assembling and wiring diagram.
d. Check the connections using the ammeter.
e. Mount the power housing and secure it with screws.
f. Mount the front panel and the back panel on the AC.
g. Secure the panels using the right tools.
The following image shows the steps involved in assembling a window AC supply unit
and front panel:

Fig. 5.2.13: Assembling of the power supply unit and the front panel

10. Labelling and Packaging

In labelling and packaging, the assembly operator has to label the product with company
specific logos and labels. Then, the final assembled AC is packed in cardboard cartons for
dispatch or storage. The following image shows the steps in labelling and packaging:

Fig. 5.2.14: Labelling and packaging of assembled AC units

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Activity
Match the components of an AC with the corresponding alphabets as per their placement in
the air conditioning cycle given in the diagram below the table and also write their names:

Components Position in the Diagram

A

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UNIT 5.3: Safety Policies, Precautions and Procedures

Unit Objectives
At the end of this unit, you will be able to:
1. Explain safety precautions in electrical wiring
2. Identify the PPE in the assembling process
3. Explain 5s and Kaizen methods as work standards

5.3.1 Safety Precautions in Assembly Unit

It is important to follow precautions while working with an RAC unit as it is an electrical
system. Any negligence or carelessness can cause electrical shock leading to severe personal
injury or death. The following figure represents the electrical safety precautions to be
followed:

Ensure that all wiring is secure before switching on the

power supply

Refer to the instructions given in the electrical wiring

diagram

Ensure that the unit is properly grounded

Ensure that there are no loose/false connections

Fig. 5.3.1: Electrical safety precautions

It is critical to follow safety precautions while assembling an RAC unit. Any negligence or
carelessness can pose a threat to health and safety and cause personal injuries.

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The following figure represents the general guidelines to be followed while working with
electrical systems:

Follow the correct procedures to ensure zero accidents at work.

Obey safety signs, stickers and tags on the equipment/devices.

Use an appropriate tool for the respective task.

Read labels and instructions given on the components.

Wear appropriate clothing and remove metal objects before working.

Use prescribed protective safety equipment only.

Follow electrical safety rules when working with electrical machinery/equipment.

Report all unsafe acts or unsafe conditions to the supervisor.

Fig. 5.3.2: Safety guidelines

In addition to these general guidelines, few more safety precautions should be followed
while assembling RAC components.

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The following image shows the safety precautions that should be followed while assembling
RAC units:

Make sure that the Wear rubber gloves Check current, voltage
power supply is shut off and capacity

Ensure water does not Ensure that any wiring is Make sure that proper
drip into electrical parts not damaged wires are connected at
right places
Fig. 5.3.3: Safety precautions

5.3.2 Personal Protective Equipment (PPE)

The tools selected for a particular set of job should be specifically suitable for that job. The
tools should have a proper handle grip so as to avoid their slipping while working. They
should be used only for the purpose they are made for and not for any other purpose.
The tools should be used under the safe working limits as per the design specification of the
tool.
An operator should always wear personal protective wear such as safety gloves, safety
helmet, safety goggles, safety shoes, ear protecting plugs and safety mask. The following
image shows some types of PPE:

Safety helmet Safety glasses Safety gloves Ear plugs

Safety shoes
Fig. 5.3.4: PPE

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The tools should be carried in a proper toolbox in a managed and organised way. They
should be kept at a secure place to avoid any unauthorised access or occurrence of accident
due to them. Before beginning work, check the work piece to prevent any damage to the
tool to be used on the work piece.
While working at heights, the tools should be tied or put in a safe place to avoid their
slipping or dropping. The tools should be operated in the correct position with proper
strength so that they can be held and operated effectively. While using tools, correct
procedure should be followed as per the manufacturer’s instruction to operate the tool.
While using sharp edged tools, ensure that the direction of movement of the tool should be
away from the body. After completion of work, the tools should be put in their appropriate
place securely.

5.3.3 5S and Kaizen 5S

5S describes how to efficiently and effectively organize a workplace by maintaining the area,
identifying the items used and storing them in their proper place and ensuring sustainability
to the order. 5S uses a list of Japanese words that start with “S”. The following figure
represents the elements of 5S:

Sustaining Sorting
(Shitsuke) (Seiri)

5S
Systematic
Standardizing
Arrangement
(Seiketsu)
(Seiton)

Shining
(Seiso)

Fig. 5.3.5: 5S elements

Sorting
Sorting includes:
• Keeping all the items, necessary for the work, in the work area.
• Disposing or keeping the items, which are not frequently used, in a distant storage place.
• Discarding the extra and unneeded items.

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Systematic Arrangement
Arrange the items systematically as it promotes efficient workflow and easy retrieval. There
should be a clearly labelled place for each item and every item should be in its place.
Shining
Keep workspace and all equipment clean and organized. To sustain improvement, daily
follow-up cleaning is essential.
Standardizing
Work practices in an organization must be standardized and consistent. Work stations must
be identical for a particular job so that employees can work in any station with the tools kept
at the identical location in that station.
Sustaining
Sustaining involves maintaining focus on a new way of operation and gradual improvement.
The impact of continuous improvement leads to:
• Less waste
• Better quality and
• Faster lead times.
Kaizen
The Japanese word ‘Kaizen’ is a business philosophy that involves setting of standards and
improving the set standards continuously. Kaizen also involves training of employees to
achieve the specific standards and maintain their improvement to manage those standards.

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The following figure represents the activities of Kaizen:

Standardize activities
and operations

Measure standardized
Continue the cycle
operation

Check the
Standardize new and
measurements against
improved operations
requirements

Innovate new processes

to meet requirements
and increase
productivity

Fig 5.3.6: Kaizen activities

The following figure represents the key elements of Kaizen:

Employee
Quality Communication
Involvement

Willingness to
Effort
Change

Fig 5.3.7: Kaizen elements

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Safety Standards
Safety related standards are designed to ensure safety of products, processes, activities and
so on. The assembly operator or any designated person must ensure that the comprehensive
schematic diagram is updated from time to time as per the modifications in it.
• Work premises must be kept clean and all the electrical shafts should be kept clean and
locked.
• Inflammable materials should be stored in the places constructed for that purpose
according to the provisions of Indian Explosives Act.
• Rubber or insulating mats have to be provided where the main switchboards or other
control equipment are placed.
• Protective equipment such as rubber gloves, earthing rods and so on should be provided
at the work station.
• Safety goggles must be provided where jobs such as electric welding are undertaken.
• First aid boxes, as prescribed by the Indian Red Cross Society, must be provided in each
work station and availability of the same must be ensured.
• Preventive maintenance works should be pre-planned and names of the assigned
persons for the maintenance must be recorded in a logbook.
• The wiring and control switches should be inspected periodically and any defective
wiring or any broken part of the switches should be identified as they may expose the
live current conducting parts. These defective parts should be replaced immediately to
make the panel safe for users.
Preventive Measures
To avoid any type of mishap at the workplace the practices shown in the following figure
should be ensured:

•Schematic diagram for every assembling

Make sure there is •No loose wiring
•No overloading

•Maintenance of records of events and breakdowns

You should ensure •Preventive maintenance schedule for every assembling
•Proper supervision of assembling

Fig 5.3.8: Preventive measures

Safety Precautions
Some safety precautions to avoid accidental hazards are as follows:
• Stay away from water to avoid an electric shock while working with electricity.
• Never touch any electrical equipment with wet hands.
• Avoid using equipment with damaged insulation or broken parts.

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• Always check for any warning signs while working with electrical equipment and ensure
this adherence while working.
• Follow the safety rules provided by the local electrical code.
• Use insulated rubber gloves and safety goggles while working on an electrical circuit.
• Avoid working on any energized equipment. Ensure that the equipment is using a tester
before starting work.
• Be aware of the local wire code.
• Connect all the metallic components that are not carrying current to earth.

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Activity
Identify and write names of the PPE given in the images below. Also, tick the PPE that
provide protection from electrical shocks:

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Practical
Perform assembling of a refrigerator door and door seal.
Equipment used:
1. A refrigerator without gasket seal
2. A gasket seal for the refrigerator
3. A Philipps screwdriver
4. A hot blower
5. Gasket cement
6. PPE such as safety gloves, safety shoes and safety glasses

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Practical
Perform installation of a thermostat in a refrigerator assembly.
Equipment used:
1. A refrigerator without thermostat
2. Thermostat for the refrigerator
3. A screw driver
4. Electrical tape
5. PPE such as safety gloves, safety shoes and safety glasses

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Practical
Install a unit run capacitor in an AC unit.
Equipment used:
1. An AC unit without a unit run capacitor installed
2. A unit run capacitor for AC
3. A screw driver
4. PPE such as safety gloves, safety shoes and safety glasses
5. Female wire terminal tabs

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Practical
Install the copper tubing in the condenser assembly of an AC.
Equipment used:
1. An AC condenser unit without a copper tubing installed
2. Copper tubes for the assembly of the AC’s condenser
3. A brazing kit
4. A hammer
5. PPE such as safety gloves, safety shoes and safety glasses

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Practical
Perform safe and secure connection of two electrical wires.
Equipment used:
1. PPE such as safety gloves, safety shoes and safety glasses
2. Wire stripper
3. Electrical tape

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�� �o� �ki��s ���

Work Ethics
Unit 6.1 – Effec ve Communica on and Coordina on at
Work
Unit 6.2 – Working Effec vely and Maintaining Discipline
at Work
Unit 6.3 – Maintaining Social Diversity at Work

ELE/N9905
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Key Learning Outcomes

By the end of this unit, participants will be able to:
1. State the importance of work ethics and workplace etiquette
2. State the importance of effective communication and interpersonal skills
3. Explain ways to maintain discipline in the workplace
4. Discuss the common reasons for interpersonal conflict and ways of managing them effectively.

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UNIT 6.1: Efffecte Communicacation aCoordinainati t Work

Unit Objectives
By the end of this unit, participants will be able to:
1. Work efffectely at the workplace.
2. Demonstrate practicesrelated to gender and PwD sensitazation.

6.1.1 Importance of Work Ethics and Workplace Etiquette

Workplace ethics are a set of moral and legal guidelines that organizations follow. These
guidelines influence the way customers and employees interact with an organization. Workplace
ethics essentially guide how an organization serves its clients and treats its employees.
For example, if a company seeks to fulfil the promises it makes, it may develop processes and set
up a robust support system to address this policy and build customer/client loyalty. To achieve this
goal, the company may implement specific incentive programs for employees to encourage them
to produce high-quality work and ensure the organization fulfils the promises it makes to its
clients/ customers.
Many organizations, often the large ones, set detailed ethical codes to guide their operations and
control how the organizational processes impact the stakeholders. These ethics usually help
organizations maintain certain standards of responsibility, accountability, professionalism and
among others, as they navigate through different challenges and day-to-day circumstances. By
following these guidelines, organizations often experience several benefits that improve the lives
of stakeholders, such as customers, employees, leaders, etc.

Examples of Common Workplace Ethics

Accountability
Responsibility
Equality
Transparency
Trust
Fulfilling promises
Loyalty
Fairness
Cooperaton
Dedication
Discipline
Professionalism

Fig. 6.1.1 Examples of Common Workplace Ethics

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Workplace ethics are essen al for a successful organiza on with a sa sfied and loyal team. High ethical
standards help in ensuring all stakeholders, such as customers, investors, employees, and other
individuals involved in the workplace opera ons, feel the organiza on is safeguarding their interests. By
crea ng and implemen ng ethical guidelines, organiza ons can keep the best interests of their
employees in mind while maintaining a posi ve influence on those they impact through their processes.
As a result, employees maintain the organiza on's best interests by being ethical in their daily work
du es. For example, fairly-treated employees of an organiza on who understand the organiza on's
commitments to environmental sustainability are usually less likely to behave in a manner that causes
harm to the environment. Thus, they help maintain a posi ve public image of the organiza on. It means
that workplace ethics help in maintaining reciprocal rela onships that benefit organiza ons at large and
the individuals associated with and influenced by the organiza onal policies.

Benefits of Workplace Ethics

There are various benefits of implemen ng workplace ethics. When organiza ons hold themselves
to high ethical standards, leaders, stakeholders, and the general public can experience significant
improvements. Following are some of the key benefits of employing ethics in the workplace:

Employee satsffacon

Improved workplace culture

Legal compliance

Improved public reputa on

Customer engagement and loyalty

Streamlined decision-making processes

Fig. 6.1.2 Benefits of Workplace Ethics

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6.1.2 Interpersonal Communica on

Interpersonal communica on is a process that involves sharing ideas and emo ons with another
person, both - verbally and non-verbally. It is essen al to interact effec vely with others in both
personal and professional lives. In professional life or the workplace, strong interpersonal skills play a
crucial role in achieving effec ve collabora on with colleagues.

Interpersonal Skills
Interpersonal skills, in other terms, are known as people skills, which are used to communicate and
interact with others effec vely. These are so� skills one uses to communicate with others and
understand them. One uses these skills in daily life while interac ng with people

Examples of Interpersonal Skills

Ac v listening

Teamwork

Responsibility

Dependability

Leadership

Motvaaon

Flexibility

Patence

Empathy

Conflict resooluon

Nego atn

Fig 6.1.3 Examples of Interpersonal Skills

Numerous interpersonal skills involve communica on. Communica on can be verbal, such as
persuasion or tone of voice — or non-verbal, such as listening and body language.

Importance of Interpersonal Skills

Interpersonal skills are essen al for communica ng and collabora ng with groups and individuals in
both personal and professional life. People with strong interpersonal skills o�en are able to build good
rela onships and also tend to work well with others. Most people o�en enjoy working with co-workers
who have good interpersonal skills.
Among other benefits of good interpersonal skills is the ability to solve problems and make the best
decisions. One can use the ability to understand others and good interpersonal communica on skills to
find the best solu on or make the best decisions in the interest of everyone involved. Strong
interpersonal skills help individuals work well in teams and collaborate effec vely. Usually, people who
possess good interpersonal skills also tend to be good leaders, owing to their ability to communicate
well with others and mo vate the people around them.

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Interpersonal communica onis the key to working in a team environment and working ccollectely to
achieve shared goals. Following are the interperso

Verbal Communica on
The ability to speak clearly, appropriately and confidently can help one communicate effec vely with
others. It is vital to select the appropriate vocabulary and tone for the target audience.
For example – one should speak formally and professionally in the work environment, while informal
language is acceptable in an in mate environment with close friends and family. Also, one should avoid
using complex or technical language while communica ng with an audience that may not be familiar
with it. Using simple language in a courteous tone helps achieve be�er communica on, irrespec ve of
the audience.

Ac ve Listening
Ac ve listening is defined as the ability to pay complete or undivided a�en on to someone when they
speak and understand what they are saying. It is important for effec ve communica on because
without understanding what the speaker is saying, it becomes difficult to carry forward a conversa on.
One should ensure to use appropriate verbal and non-verbal responses, e.g. eye contact, nodding, or
smiling, to show interest in what the speaker says. Ac ve listening is also about paying a�en on to the
speaker's body language and visual cues. Asking and answering ques ons is one of the best ways to
demonstrate an interest in conversing with the other person.
Ac ve listening is cri cal for communica ng effec vely without ambiguity. It helps one understand the
informa on or instruc ons being shared. It may also encourage co-workers to share their ideas, which
ul mately helps achieve collabora on.

Body Language
One's expression, posture, and gestures are as important as verbal communica on. One should prac ce
open body language to encourage posi vity and trust while communica ng. Open body language
includes - maintaining eye contact, nodding, smiling and being comfortable. On the other hand, one
should avoid closed body language, e.g. crossed arms, shi�ing eyes and restless behaviour.

Empathy
Empathy is the ability to understand the emo ons, ideas and needs of others from their point of view.
Empathy is also known as emo onal intelligence. Empathe c people are good at being aware of others'
emo ons and compassionate when communica ng with them. Being empathe c in the workplace can
be good to boost the morale of employees and improve produc vity. By showing empathy, one can gain
the trust and respect of others.

Conflict Resolu on
One can use interpersonal communica on skills to help resolve disagreements and conflicts in the
workplace. This involves the applica on of nego a on and persuasion skills to resolve arguments
between conflic ng par es. It is also important to evaluate and understand both sides of the argument
by listening closely to everyone involved and finding an amicable solu on acceptable to all.
Good conflict resolu on skills can help one contribute to crea ng a collabora ve and posi ve work
environment. With the ability to resolve conflicts, one can earn the trust and respect of co-workers.nal
communica onskills that vital for success at work:

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Teamwork
Employees who communicate and work well in a team o�en have be�er chances of achieving success
and common goals. Being a team player can help one avoid conflicts and improve produc vity. One can
do this by offering to help co-workers when required and asking for their feedback and ideas. When
team members give their opinions or advice, one should posi vely receive and react to the
opinions/advice. One should be op mis c and encouraging when working in groups.

Improving Interpersonal Skills

One can develop interpersonal skills by prac sing good communica on and se�ng goals for
improvement. One should consider the following ps to improve their interpersonal skills:
Ÿ One should ask for feedback from co-workers, managers, family or friends to figure out what needs
improvement concerning their interpersonal skills.
Ÿ One can iden fy the areas of interpersonal communica on to strengthen by watching others.
Ÿ One can learn and improve interpersonal skills by observing co-workers, company leaders and
professionals who possess good interpersonal skills. This includes watching and listening to them to
note how they communicate and the body language used by them. It is vital to note their speed of
speaking, tone of voice, and the way they engage with others. One should prac ce and apply such
traits in their own interac ons and rela onships.
Ÿ One should learn to control their emo ons. If stressed or upset, one should wait un l being calm to
have a conversa on. One is more likely to communicate effec vely and confidently when not under
stress.
Ÿ One can reflect on their personal and professional conversa ons to iden fy the scope of
improvement and learn how to handle conversa ons be�er or communicate more clearly. It helps to
consider whether one could have reacted differently in a par cular situa on or used specific words or
posi ve body language more effec vely. It is also vital to note the successful and posi ve interac ons
to understand why they are successful.
Ÿ One should prac ce interpersonal skills by pu�ng oneself in posi ons where one can build
rela onships and use interpersonal skills. For example, one can join groups that have organized
mee ngs or social events. These could be industry-specific groups or groups with members who
share an interest or hobby.
Ÿ Paying a�en on to family, friends and co-workers and making efforts to interact with them helps a
lot. One should complement their family, friends and co-workers on their good ideas, hard work and
achievements. Trying to understand someone's interests and showing interest in knowing them can
help one build strong interpersonal skills. Offering to help someone, especially in difficult situa ons,
helps build stronger and posi ve workplace rela onships.
Ÿ One should avoid distrac ons, such as a mobile phone, while interac ng with someone. Giving
someone full a�en on while avoiding distrac ons helps achieve a clear exchange of ideas. By
listening with focus, one can understand and respond effec vely.

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Ÿ One can a�end appropriate courses on interpersonal skills or sign up for workshops at work to
improve interpersonal skills. One can find many resources online also, such as online videos.
Ÿ For personal mentoring, one can approach a trusted family member, friend, co-worker, or current/
former employer. A person one looks up to with respect and admires is o�en a good choice to be
selected as a mentor. One can even hire a professional career or communica on coach.
Interpersonal communica on skills o�en help one boost their morale, be more produc ve in the
workplace, complete team projects smoothly and build posi ve and strong rela onships with co-
workers.

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Notes

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UNIT 6.2: Working Efffectely and Maintaining Discipline at Work

Unit Objec ves

By the end of this unit, par cipants will be able to:
Ÿ Discuss the importance of following organizational guidelines for dress code, time schedules,
language usage and other behavioural aspects
Ÿ Explain the importance of working as per the workflow of the organization to receive instructions
and report problems
Ÿ Explain the importance of conveying information/instructions as per defined protocols to the
authorised persons/team members
Ÿ Explain the common workplace guidelines and legal requirements on non-disclosure and
confidentiality of business-sensitive information
Ÿ Describe the process of reporting grievances and unethical conduct such as data breaches, sexual
harassment at the workplace, etc.
Ÿ Discuss ways of dealing with heightened emotions of self and others.

6.2.1 Discipline at Work

Discipline is essential for organizational success. It helps improve productivity, reduce conflict and
prevent misconduct in the workplace. It is important to have rules concerning workplace discipline and
ensure that all employees comply with them. In the absence of discipline, a workplace may experience
conflicts, bullying, unethical behaviour and poor employee performance. An efficient workplace
disciplinary process helps create transparency in the organization. Benefits of disciplinary standards:

All employees follow the same rules which helps establish uniformity and equality
in the workplace

Managers and supervisors have defined guidelines on what accon to take while
ini atg disciplinary y aon

With well-defined and enforced disciplinary rules, an organiizaon can avoid

various safety, security, rupa nal risks

Fig 6.2.1 Benefits of Disciplinary Standards

Maintaining an organized and cohesive workforce requires maintaining discipline in both personal and
professional behaviour. It is important to follow the appropriate measures to keep employees in line
without affecting their morale.

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Defining Discipline
The first and crucial step in maintaining workplace discipline is to define what is meant by discipline. It
helps to evaluate common discipline problems and devise guidelines for handling them effectively.

Among a number of areas, discipline usually covers:

Personal
use of
Personal company
e use in assets
Harassment the office
Company
processes
Dress code and
Deadlines procedures
Atendance

Fig 6.2.2 Examples of Workplace Discipline

According to demography and local issues, it may also include substance use and related issues.

It is vital for a workplace to have an employee handbook or company policy guide, to serve as a
rulebook for employees to follow. The employee handbook/ company policy guide should be reviewed
and updated periodically according to any issues or areas, or concerns identified concerning workplace
discipline. Such manuals should also cover all the laws and regulations governing workplace behaviour.

Defining and documenting workplace rules aids in their implementation, ensuring little or no
ambiguity. All employees in a workplace should also have easy access to the workplace guidelines so
that they can refer to them to get clarity whenever required. To maintain discipline at work, it is also
critical to ensure uniform application of workplace guidelines to all employees without exception.

6.2.2 Employee Code of Conduct

The employee code of conduct manual serves as a guide for employees to inform them regarding the
behaviour expected from them at work. It helps create a good work environment with consistent
behaviour from employees. The manual should list examples of acceptable and not acceptable
behaviours at work. The code of conduct should be discussed with employees so that they have the
clarifications required.
For example, an organization may create guidelines concerning the conduct with clients to ensure no
contact is made with them except for business purposes, also prescribing the use of appropriate means
of communication.
Employees should have a clear understanding concerning their job responsibilities and the behaviour
expected from them with all stakeholders, e.g. company personnel, clients and associated third parties.
It is critical to have documented guidelines for employees to follow concerning all aspects of work. It
should also document the disciplinary action to be followed in case of non-compliance, e.g. verbal and

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then written warning, temporary suspension or eventual termination of service in case of repeated non-
compliance with the employee code of conduct. Employees should know what the company rules are and
what will happen if they break the rules. However, disciplinary action should be initiated only when
reasonably required to avoid its misuse for employee harassment.

There should also be an effective mechanism for employees to raise their concerns/ grievances and have
them addressed while maintaining privacy, as required, e.g. raising concerns regarding the behaviour of a
co-worker.

The employee code of conduct manual must be duly reviewed and approved by the concerned
stakeholders, such as the Human Resources (HR) department and company executives.

6.2.3 Interpersonal Conflicts

Interpersonal conflict is any type of conflict between two or more people. These are found in both -
personal and professional relationships - among friends, family, and co-workers. In the workplace,
interpersonal conflict is often observed when a person or group of people interfere with another
person's attempts at completing assignments and achieving goals. It is critical to resolve conflicts in the
workplace to boost the morale of employees, repair working relationships among them, and improve
customer satisfaction.

Reasons for Workplace Conflicts

Workplace conflicts are often observed when two or more people have different points of view. This
can happen between managers, co-workers, or clients and customers. In general, interpersonal
conflicts are caused by a lack of communication or unclear communication.
Some of the leading reasons for workplace conflicts are:
Ÿ Difference in values
Ÿ Personality clashes
Ÿ Poor communication
Example of poor communication – if a manager reassigns a task to another employee without
communicating with the employee to whom it was originally assigned, interpersonal conflict can arise
among them. This may potentially make the first employee, i.e. who was originally assigned the task,
feel slighted and mistrusted by the manager. It may even cause animosity in the first employee toward
the employee who has now been assigned the task.

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Types of Interpersonal Conflict

Following are the four types of interpersonal conflicts:

a. Policy-related interpersonal conflict

When a conflict relates to a decision or situation that involves both parties, it can be called a
policy-related interpersonal conflict. Example – two people or groups working on the same
project, trying to adopt different approaches. To resolve policy-related interpersonal conflicts,
the parties involved should try to look for a win-win situation or make a compromise. This is
especially critical to resolve trivial issues so that work is not affected and common goals are
achieved.

b. Pseudo-conflicts
Pseudo-conflict arises when two people or groups want different things and cannot reach an
agreement. Pseudo-conflicts usually involve trivial disagreements that tend to hide the root of
the issue.

c. Ego-related interpersonal conflicts

In ego conflicts, losing the argument may hurt or damage a person's pride. Sometimes ego
conflicts arise when a number of small conflicts pile up on being left unresolved. To resolve ego-
related conflicts, it's best to find the root of the issue and work towards a resolution.

d. Value-related interpersonal conflicts

Sometimes conflicts may occur between people when they have different value systems. Such
conflicts can be difficult to identify initially, making the people involved think the other party is
being disagreeable or stubborn, wherein they just have different values. Some co-workers may
highly value their personal/ family time after office that they may be unreachable to clients
during non-office hours, while others may place a high value on client satisfaction and may still
be available for clients during non-office hours. Conflict may arise among such people when
they may be required to coordinate to help a client during after-office hours. Value-related
interpersonal conflicts are often difficult to settle since neither party likes to compromise.

Resolving Interpersonal Conflicts

Conflicts are usually likely in the workplace; they can, however, be prevented. Often resolving
interpersonal conflicts through open communication helps build a stronger relationship, paving the
way for effective coordination and success. Some ways to resolve interpersonal conflict:
Ÿ Communication - A great way to resolve interpersonal conflicts is for the opposing parties to listen
to one another's opinions and understand their viewpoints. Meeting in person and keeping the
conversation goal-oriented is important. One can have effective communication by following some
measures, e.g. staying on the topic, listening actively, being mindful of the body language,
maintaining eye contact, etc.

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Ÿ Active Listening - One should patiently listen to what the other person is saying without interrupting
or talking over them. It helps one display empathy and get to the root of the issue. Asking questions
to seek clarification when required helps in clear communication and conveys to the other person
that one is listening to them. Practising active listening is a great way to improve one's
communication skills.
Ÿ Displaying Empathy - Listening attentively and identifying the anxieties/ issues of co-workers is a
great way to show empathy and concern. It is essential to understand their feelings and actions to
encourage honesty and avoid future conflict.
Ÿ Not Holding Grudges - With different types of people and personalities in a workplace, it is common
for co-workers to have conflicts. It is best to accept the difference in opinions and move on. Being
forgiving and letting go of grudges allows one to focus on the positive side of things and perform
better at work.

Work-related interpersonal conflicts can be complicated because different people have different
leadership styles, personality characteristics, job responsibilities and ways in which they interact. One
should learn to look above interpersonal conflicts, resolving them to ensure work goals and
environment are not affected.

6.2.4 Importance of Following Organiza onal Guidelines

Policies and procedures or organizational guidelines are essential for any organization. These provide a
road map for the operations of the organization. These are also critical in ensuring compliance with the
applicable laws and regulations by guiding the decision-making process and business operations.
Organizational guidelines help bring uniformity to the operations of an organization, which helps
reduce the risk of unwanted and unexpected events. These determine how employees are supposed to
behave at work, which ultimately helps the business achieve its objectives efficiently.
However, organizational guidelines are ineffective and fail to serve their purpose if they are not
followed. Many people don't like the idea of following and abiding by specific guidelines. Such people
should be made to understand the benefits of following the organizational guidelines. Some of the key
benefits are given below:

With well-defined organizational guidelines in place, no individual can act arbitrarily, irrespective of
their position in the organization. All individuals will know the pros and cons of taking certain actions
and what to expect in case of unacceptable behaviour. Benefits of following organizational guidelines:

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Ÿ Consistent processes and structures - Organization guidelines help maintain consistency in

operations, avoiding any disorder. When all employees follow the organizational guidelines, an
organization can run smoothly. These ensure that people in different job roles operate as they are
supposed to, knowing what they are responsible for, what is expected of them, and what they can
expect from their supervisors and co-workers. With clarity in mind, they can do their jobs with
confidence and excellence. With every person working the way intended, it's easy to minimise
errors.
With all the staff following organizational guidelines, the organization has a better scope of using
time and resources more effectively and efficiently. This allows the organization to grow and
achieve its objectives.
Ÿ Better quality service - By following organizational guidelines, employees perform their duties
correctly as per the defined job responsibilities. It helps enhance the quality of the organization's
products and services, helping improve the organization's reputation. Working with a reputable
organization, employees can take pride in their work and know they are contributing to the
reputation.
Ÿ A safer workplace - When all employees follow organizational guidelines, it becomes easy to
minimise workplace incidents and accidents. It reduces the liabilities associated with risks for the
organization and limits the interruptions in operations. Employees also feel comfortable and safe in
the workplace, knowing their co-workers are ensuring safety at work by following the applicable
guidelines.

Different organizations may have different guidelines on dress code, time schedules, language usage,
etc. For example – certain organizations in a client-dealing business requiring employees to meet
clients personally follow a strict dress code asking their employees to wear formal business attire.
Similarly, organizations operating in specific regions may require their employees to use the dominant
regional language of the particular region to build rapport with customers and serve them better.
Certain organizations, such as banks, often give preference to candidates with knowledge of the
regional language during hiring.
Working hours may also differ from one organization to another, with some requiring employees to
work extra compared to others. One should follow the organizational guidelines concerning all the
aspects of the employment to ensure a cohesive work environment.

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6.2.5 Workflow
Workflow is the order of steps from the beginning to the end of a task or work process. In other words,
it is the way a particular type of work is organised or the order of stages in a particular work process.
Workflows can help simplify and automate repeatable business tasks, helping improve efficiency and
minimise the room for errors. With workflows in place, managers can make quick and smart decisions
while employees can collaborate more productively.
Other than the order that workflows create in a business, these have several other benefits, such as:
Ÿ Identifying Redundancies - Mapping out work processes in a workflow allows one to get a clear, top-
level view of a business. It allows one to identify and remove redundant or unproductive processes.

Workflow gives greater insights into business processes. Utilizing such useful insights, one can
improve work processes and the bottom line of the business. In many businesses, there are many
unnecessary and redundant tasks that take place daily. Once an organization has insight into its
processes while preparing workflow, it can determine which activities are really necessary.

Identifying and eliminating redundant tasks creates value for a business. With redundant tasks and
processes eliminated, an organization can focus on what's important to the business.

Ÿ Increase in Accountability and Reduction in Micromanagement - Micromanagement often causes

problems in a business setting as most employees don't like being micromanaged, and even many
managers don't like the practice. Micromanagement is often identified as one of the reasons why
people quit their job.

However, the need for micromanagement can be minimized by clearly mapping out the workflow.
This way, every individual in a team knows what tasks need to be completed and by when and who
is responsible for completing them. This makes employees more accountable also.

With clearly defined workflow processes, managers don't have to spend much time
micromanaging their employees, who don't have to approach the manager to know what the
further steps are. Following a workflow, employees know what is going on and what needs to be
done. This, in turn, may help increase the job satisfaction of everyone involved while improving the
relationships between management and employees.

Ÿ Improved Communication - Communication at work is critical because it affects all aspects of an

organization. There are instances when the main conflict in an organization originates from
miscommunication, e.g. the management and employees disagreeing on an aspect, despite
pursuing the same objectives. Poor communication is a common workplace issue that is often not
dealt with.

Ÿ This highlights why workflow is important. Workplace communication dramatically can increase
with the visibility of processes and accountability. It helps make the daily operations smoother
overall.

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Ÿ Better Customer Service - Customers or clients are central to a business. Therefore, it is imperative
to find and improve ways to improve customer experience. Relying on outdated manual systems
may cause customer requests or complaints to be overlooked, with dissatisfied customers taking
their business elsewhere. However, following a well-researched and defined workflow can help
improve the quality of customer service.
By automating workflows and processes, an organization can also reduce the likelihood of human error.
This also helps improve the quality of products or services over time, resulting in a better customer
experience.

6.2.6 Following Instruc ons and Repor ng Problems

All organizations follow a hierarchy, with most employees reporting to a manager or supervisor. For
organizational success, it is vital for employees to follow the instructions of their manager or
supervisor. They should ensure they perform their duties as per the given instructions to help achieve
the common objectives of the organization and deliver quality service or products. This consequently
helps maintain the reputation of the organization.

It is also important to be vigilant and identify problems at work or with the organizational work
processes. One should deal with the identified within their limits of authority and report out of
authority problems to the manager/ supervisor or the concerned person for a prompt resolution to
minimise the impact on customers/clients and business.

6.2.7 Informa on or D ta Sharing

Information or data is critical to all organizations. Depending on the nature of its business, an
organization may hold different types of data, e.g. personal data of customers or client data concerning
their business operations and contacts. It is vital to effective measures for the appropriate handling of
different types of data, ensuring its protection from unauthorized access and consequent misuse.

One should access certain data only if authorised to do so. The same is applicable when sharing data
which must be shared only with the people authorised to receive it to use it for a specific purpose as
per their job role and organizational guidelines. For example – one should be extra cautious while
sharing business data with any third parties to ensure they get access only to the limited data they
need as per any agreements with them. It is also critical to monitor how the recipient of the data uses
it, which should strictly be as per the organizational guidelines. It is a best practice to share appropriate
instructions with the recipient of data to ensure they are aware of the purpose with which data is
being shared with them and how they are supposed to use and handle it. Any misuse of data must be
identified and reported promptly to the appropriate person to minimise any damage arising out of data
misuse.

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These days most organizations require their employees and business partners or associated third
parties to sign and accept the relevant agreement on the non-disclosure of business-sensitive
information. In simple terms, business-sensitive information is confidential information. It is
proprietary business information collected or created during the course of conducting business,
including information about the business, e.g. proposed investments, intellectual property, trade
secrets, or plans for a merger and information related to its clients. Business-sensitive information may
sometimes also include information regarding a business's competitors in an industry.
The release of business-sensitive information to competitors or the general public poses a risk to a
business. For example, information regarding plans for a merger could be harmful to a business if a
competitor gets access to it.

6.2.8 Repor ng Issues at Work

Most organizations have defined guidelines on appropriate reporting processes to be followed for
reporting different types of issues. For example – one can report any grievances or dissatisfaction
concerning co-workers to their manager/supervisor, e.g. data breaches or unethical conduct. If the
concern is not addressed, then the employee should follow the organizational guidelines and hierarchy
for the escalation of such issues that are not addressed appropriately.

For example – any concern related to sexual harassment at the workplace should be escalated to the
concerned spokesperson, such as Human Resources (HR) representative, and if not satisfied with the
action taken, it should be reported to the senior management for their consideration and prompt
action.

6.2.9 Dealing with Heightened Emo ons

Humans are emotional beings. There may be occasions when one is overwhelmed by emotions and is
unable to suppress them. However, there may be situations when one must manage emotions well,
particularly at work.
Stress in one's personal and professional life may often cause emotional outbursts at work. Managing
one's emotions well, particularly the negative ones, is often seen as a measure of one's
professionalism. Anger, dislike, frustration, worry, and unhappiness are the most common negative
emotions experienced at work.
Ways to manage negative emotions at work:
Ÿ Compartmentalisation – It's about not confining emotions to different aspects of one's life. For
example, not letting negative emotions from personal life affect work-life and vice versa. One
should try to leave personal matters and issues at home. One should train their mind to let go of
personal matters before reaching work. Similarly, one can compartmentalise work-related stresses
so that negative emotions from work don't affect one's personal life.

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Ÿ Deep breathing and relaxation – Deep breathing helps with anxiety, worry, frustration and anger.
One should take deep breaths, slowly count to ten - inhaling and exhaling until one calms down.
One can also take a walk to calm down or listen to relaxing music. Talking to someone and sharing
concerns also helps one calm down.

Ÿ The 10-second rule - This is particularly helpful in controlling anger and frustration. When one feels
their temper rising, they should count to 10 to calm down and recompose. If possible, one should
move away to allow temper to come down.

Ÿ Clarify - It is always good to clarify before reacting, as it may be a simple case of misunderstanding
or miscommunication.

Ÿ Physical activity - Instead of losing temper, one should plan to exercise, such as running or going to
the gym, to let the anger out. Exercise is also a great way to enhance mood and release any physical
tension in the body.

Ÿ Practising restraint - One should avoid replying or making a decision when angry, not allowing anger
or unhappiness to cloud one's judgement. It may be best to pause any communication while one is
angry, e.g. not communicating over email when angry or upset.

Ÿ Knowing one's triggers - It helps when one is able to recognise what upsets or angers them. This
way, one can prepare to remain calm and plan their reaction should a situation occur. One may even
be able to anticipate the other party's reaction.

Ÿ Be respectful - One should treat their colleagues the same way one would like to be treated. If the
other person is rude, one need not reciprocate. It is possible to stay gracious, firm and assertive
without being aggressive. Sometimes, rude people back away when they don't get a reaction from
the person they are arguing with.

Ÿ Apologise for any emotional outburst – Sometimes, one can get overwhelmed by emotions,
reacting with an emotional outburst. In such a case, one should accept responsibility and apologise
immediately to the affected persons without being defensive.

Ÿ Doing away with negative emotions - It is recommended to let go of anger, frustration and
unhappiness at the end of every workday. Harbouring negative emotions affects one emotionally,
affecting their job performance also. Engaging in enjoyable activities after work is a good stress
reliever.

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UNIT 6.3: Maintaining Social Diversity at Work

Unit Objec ves

By the end of this unit, par cipants will be able to:
1. Explain the concept and importance of gender sensi vityand equality.
2. Discuss ways to create sensi vityfor different genders and Persons with h Disabili (PwD).

6.3.1 Gender Sensi vity

Gender sensitivity is the act of being sensitive towards people and their thoughts regarding gender. It
ensures that people know the accurate meaning of gender equality, and one's gender should not be
given priority over their capabilities.

Fig 6.3.1 Gender Equality

Women are an important source of labour in many sectors, yet they have limited access to resources
and benefits. Women should receive the same benefits and access to resources as men. A business can
improve its productivity and quality of work by providing better support and opportunities to women.

Important Terms
Ÿ Gender Sensitivity- Gender sensitivity is the act of being sensitive to the ways people think about
gender.
Ÿ Gender Equality - It means persons of any gender enjoy equal opportunities, responsibilities, and
rights in all areas of life.
Ÿ Gender Discrimination – It means treating an individual unequally or disadvantageously based on
their gender, e.g. paying different wages to men and women for similar or equal job positions.

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Strategies for Enhancing Gender Equity

To enhance gender equity, one should:
Ÿ Follow gender-neutral practices at all levels at work.
Ÿ Participate together in decision-making.
Ÿ Help in promoting women's participation in different forums.
Ÿ Assist women in getting exposure to relevant skills and practices.
Ÿ Assist women in capacity building by mentoring, coaching or motivating them, as appropriate.
Ÿ Assist in the formation and operation of women support groups.
Ÿ Assist in the implementation of women-centric programmes.
Ÿ Combine technical training with reproductive health and nutrition for coffee farming households.
Ÿ Assist in making a work environment that is healthy, safe, and free from discrimination.

Bridging Gender Differences

Men and women react and communicate very differently. Thus, there are some work differences as
both genders have their style and method of handling a situation.

Although, understanding and maturity vary from person to person, even between these genders, based
on their knowledge, education, experience, culture, age, and upbringing, as well as how one's brain
functions over a thought or problem.
In order to bridge the gap, one should:
Ÿ Not categorize all men and women in one way.
Ÿ Be aware of the verbal and non-verbal styles of communication of every gender to avoid any
miscommunication and work better.
Ÿ Be aware of partial behaviour and avoid it.
Ÿ Encourage co-workers of different genders to make room by providing space to others.

Ways to reduce Gender Discrimination

Ÿ Effective steps against sexual harassment by the concerned authorities and general public.
Ÿ Gender stereotypes are how society expects people to act based on their gender. This can only be
reduced by adopting appropriate behaviour and the right attitude.
Ÿ Objectification of females must be abolished.

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Ways to Promote Gender Sensitivity in the Workplace

Practices that promote gender diversity should be adopted and promoted.
Ÿ All genders should receive equal responsibilities, rights, and privileges.
Ÿ All genders should have equal pay for similar or the same job roles/ positions.
Ÿ Strict and effective workplace harassment policies should be developed and implemented.
Ÿ An open-minded and stress-free work environment should be available to all the employees,
irrespective of their gender.
Ÿ Women should be encouraged to go ahead in every field of work and assume leadership roles.
Ÿ Follow appropriate measures for women's empowerment.
Ÿ Men should be taught to be sensitive to women and mindful of their rights.

6.3.2 PwD Sensi vity

Some individuals are born with a disability, while others may become disabled due to an accident,
illness or as they get old. People with Disabilities (PwD) may have one or more areas in which their
functioning is affected. A disability can affect hearing, sight, communication, breathing, understanding,
mobility, balance, and concentration or may include the loss of a limb. A disability may contribute to
how a person feels and affect their mental health

Important Terms
·Persons with Disabilities (PwD) – Persons with Disabilities means a person suffering from not less
than 40% of any disability as certified by a medical authority.

·Types of Disability:
a. Blindness – Visually impaired
b. Low Vision
c. Leprosy Cured
d. Hearing impairment
e. Locomotor disability
f. Mental retardation
g. Mental illness

PwD Sensitivity
PwD sensitivity promotes empathy, etiquette and equal participation of individuals and organizations
while working with individuals with a disability, e.g. sensory, physical or intellectual.

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Ways to be PwD Sensitive

To be sensitive to PwD, one should:

Ÿ Be respectful to all Persons with Disabilities (PwD) and communicate in a way that reflects PwD
sensitivity.
Ÿ Always be supportive and kind towards a PwD with their daily chores.
Ÿ Be ready to assist a PwD to help them avail of any benefit/ livelihood opportunity/ training or any
kind that helps them grow.
Ÿ Encourage and try to make things easier and accessible to PwD so that they can work without or with
minimum help.
Ÿ Protest where feasible and report any wrong act/behaviour against any PwD to the appropriate
authority.
Ÿ Learn and follow the laws, acts, and policies relevant to PwD.

Appropriate Verbal Communication

As part of appropriate verbal communication with all genders and PwD, one should:
Ÿ Talk to all genders and PwD respectfully, maintaining a normal tone of voice with appropriate
politeness. It is important to ensure one's tone of voice does not have hints of sarcasm, anger, or
unwelcome affection.
Ÿ Avoid being too self-conscious concerning the words to use while also ensuring not to use words that
imply one's superiority over the other.
Ÿ Make no difference between a PwD and their caretaker. Treat PwD like adults and talk to them
directly.
Ÿ Ask a PwD if they need any assistance instead of assuming they need it and offering assistance
spontaneously.

Appropriate Non-verbal Communication

Non-verbal communication is essentially the way someone communicates through their body language.
These include:
Ÿ Facial expressions - The human face is quite expressive, capable of conveying many emotions
without using words. Facial expressions must usually be maintained neutral and should change
according to the situation, e.g. smile as a gesture of greeting.
Ÿ Body posture and movement - One should be mindful of how to sit, stand, walk, or hold their head.
For example - one should sit and walk straight in a composed manner. The way one moves and
carries self, communicates a lot to others. This type of non-verbal communication includes one's
posture, bearing, stance, and subtle movements.

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Ÿ Gestures - One should be very careful with their gestures, e.g. waving, pointing, beckoning, or using
one's hands while speaking. One should use appropriate and positive gestures to maintain respect
for the other person while being aware that a gesture may have different meanings in different
cultures.

Ÿ Eye contact - Eye contact is particularly significant in non-verbal communication. The way someone
looks at someone else may communicate many things, such as interest, hostility, affection or
attraction. Eye contact is vital for maintaining the flow of conversation and for understanding the
other person's interest and response. One should maintain appropriate eye contact, ensuring not to
stare or look over the shoulders. To maintain respect, one should sit or stand at the other person's
eye level to make eye contact.
Ÿ Touch - Touch is a very sensitive type of non-verbal communication. Examples are - handshakes,
hugs, pat on the back or head, gripping the arm, etc. A firm handshake indicates interest, while a
weak handshake indicates the opposite. One should be extra cautious not to touch others
inappropriately and avoid touching them inadvertently by maintaining a safe distance.

Rights of PwD

PwD have the right to respect and human dignity. Irrespective of the nature and seriousness of their
disabilities, PwD have the same fundamental rights as others, such as:
Ÿ Disabled persons have the same civil and political rights as other people
Ÿ Disabled persons are entitled to the measures designed to enable them to become as self-
dependent as possible
Ÿ Disabled persons have the right to economic and social security
Ÿ Disabled persons have the right to live with their families or foster parents and participate in all
social and creative activities.
Ÿ Disabled persons are protected against all exploitation and treatment of discriminatory and abusive
nature.

Making Workplace PwD Friendly

Ÿ One should not make PwD feel uncomfortable by giving too little or too much attention
Ÿ One should use a normal tone while communicating with a PwD and treat them as all others keeping
in mind their limitations and type of disability
Ÿ Any help should be provided only when asked for by a PwD
Ÿ One should help in ensuring the health and well-being of PwD.

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Expected Employer Behaviour

Some of the common behavioural traits that employees expect from their employers are:
Ÿ Cooperation: No work is successful without cooperation from the employer's side. Cooperation helps
to understand the job role better and complete it within the given timeline.
Ÿ Polite language: Polite language is always welcomed at work. This is a basic aspect that everybody
expects.
Ÿ Positive Attitude: Employers with a positive attitude can supervise the work of the employees and
act as a helping hand to accomplish the given task. A person with a positive attitude looks at the best
qualities in others and helps them gain success.
Ÿ Unbiased behaviour: Employers should always remain fair towards all their employees. One should
not adopt practices to favour one employee while neglecting or ignoring the other. This might create
animosity among co-workers.
Ÿ Decent behaviour: The employer should never improperly present oneself before the employee. One
should always respect each other's presence and behave accordingly. The employer should not
speak or act in a manner that may make the employee feel uneasy, insulted, and insecure.

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Exercise
1. List down three examples of workplace ethics.
2. List down three examples of interpersonal skills.
3. Identify two reasons for workplace conflicts.
4. Identify two ways of resolving interpersonal conflicts
5. List down two ways of dealing with heightened emotions at work.
6. List down two types of non-verbal communication.

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7. Basic Health and

Safety Prac ces
Unit 7.1 - Workplace Hazards

Unit 7.2 - Fire Safety

Unit 7.3 - First Aid

Unit 7.4 - Waste Management

ELE/N1002
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Key Learning Outcomes

By the end of this module, par cipa ts will be able to:
1. Discuss job-site hazards, risks and accidents
2. Explain the organizational safety procedures for maintaining electrical safety, handling tools and
hazardous materials
3. Describe how to interpret warning signs while accessing sensitive work areas
4. Explain the importance of good housekeeping
5. Describe the importance of maintaining appropriate postures while lifting heavy objects
6. List the types of fire and fire extinguishers
7. Describe the concept of waste management and methods of disposing of hazardous waste
8. List the common sources of pollution and ways to minimize them
9. Elaborate on electronic waste disposal procedures
10. Explain how the administer appropriate first aid to victims in case of bleeding, burns, choking,
electric shock, poisoning and also administer first aid to victims in case of a heart attack or cardiac
arrest due to electric shock

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UNIT 7.1: Workplace Hazards

Unit Objec ves

By the end of this unit, par cipants will be able to:
• Discuss job-site hazards, risks and accidents
• Explain the organizational safety procedures for maintaining electrical safety, handling tools and
hazardous materials
• Describe how to interpret warning signs while accessing sensitive work areas
• Explain the importance of good housekeeping
• Describe the importance of maintaining appropriate postures while lifting heavy objects
• Explain safe handling of tools and Personal Protective Equipment to be used.

7.1.1 Workplace Safety

Workplace safety is important to be established for creating a safe and secure working for the workers.
The workplace has to be administered as per the rules of the Occupational Safety and Health
Administration (OSHA). It refers to monitoring the working environment and all hazardous factors that
impact employees' safety, health, and well-being. It is important to provide a safe working environment
to the employees to increase their productivity, wellness, skills, etc.

The benefits of workplace safety are:

Ÿ Employee retention increases if they are provided with a safe working environment.
Ÿ Failure to follow OSHA's laws and guidelines can result in significant legal and financial
consequences.
Ÿ A safe environment enables employees to stay invested in their work and increases productivity.
Ÿ Employer branding and company reputation can both benefit from a safe working environment.

7.1.2 Workplace Hazards

A workplace is a situation that has the potential to cause harm or injury to the workers and damage
the tools or property of the workplace. Hazards exist in every workplace and can come from a variety
of sources. Finding and removing them is an important component of making a safe workplace.

Common Workplace Hazards

The common workplace hazards are:
·Biological: The threats caused by biological agents like viruses, bacteria, animals, plants, insects and
also humans, are known as biological hazards.

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Ÿ Chemical: Chemical hazard is the hazard of inhaling various chemicals, liquids and solvents. Skin
irritation, respiratory system irritation, blindness, corrosion, and explosions are all possible health
and physical consequences of these dangers.
Ÿ Mechanical: Mechanical Hazards comprise the injuries that can be caused by the moving parts of
machinery, plant or equipment.
Ÿ Psychological: Psychological hazards are occupational hazards caused by stress, harassment, and
violence.
Ÿ Physical: The threats that can cause physical damage to people is called physical hazard. These
include unsafe conditions that can cause injury, illness and death.
Ÿ Ergonomic: Ergonomic Hazards are the hazards of the workplace caused due to awkward posture,
forceful motion, stationary position, direct pressure, vibration, extreme temperature, noise, work
stress, etc.

Workplace Hazards Analysis

A workplace hazard analysis is a method of identifying risks before they occur by focusing on
occupational tasks. It focuses on the worker's relationship with the task, the tools, and the work
environment. After identifying the hazards of the workplace, organisations shall try to eliminate or
minimize them to an acceptable level of risk.

Control Measures of Workplace Hazards

Control measures are actions that can be taken to reduce the risk of being exposed to the hazard.
Elimination, Substitution, Engineering Controls, Administrative Controls, and Personal Protective
Equipment are the five general categories of control measures.
Ÿ Elimination: The most successful control technique is to eliminate a specific hazard or hazardous
work procedure or prevent it from entering the workplace.

Ÿ Substitution: Substitution is the process of replacing something harmful with something less
hazardous. While substituting the hazard may not eliminate all of the risks associated with the
process or activity, it will reduce the overall harm or health impacts.

Ÿ Engineering Controls: Engineered controls protect workers by eliminating hazardous situations or

creating a barrier between the worker and the hazard, or removing the hazard from the person.

Ÿ Administrative Controls: To reduce exposure to hazards, administrative controls limit the length of
time spent working on a hazardous task that might be used in combination with other measures of
control.

Ÿ Personal Protective Equipment: Personal protective equipment protects users from health and
safety hazards at work. It includes items like safety helmets, gloves, eye protection, etc.

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7.1.3 Risk for a Drone Technician

A drone technician may require to repair the propeller, motor and its mount, battery, mainboards,
processor, booms, avionics, camera, sensors, chassis, wiring and landing gear. A technician may face
some risks while repairing the drones' equipment.
Ÿ The technician is susceptible to being physically harmed by propellers.
Ÿ Direct contact with exposed electrical circuits can injure the person.
Ÿ If the skin gets in touch with the heat generated from electric arcs, it burns the internal tissues.
Ÿ Major electrical injuries can occur due to poorly installed electrical equipment, faulty wiring,
overloaded or overheated outlets, use of extension cables, incorrect use of replacement fuses, use
of equipment with wet hands, etc.

7.1.4 Workplace Warning Signs

A Hazard sign is defined as 'information or instruction about health and safety at work on a signboard,
an illuminated sign or sound signal, a verbal communication or hand signal.'
There are four different types of safety signs:
Ÿ Prohibition / Danger Alarm Signs
Ÿ Mandatory Signs
Ÿ Warning Signs
Ÿ And Emergency

1. Prohibition Signs: A "prohibition sign" is a safety sign that prohibits behaviour that is likely to
endanger one's health or safety. The colour red is necessary for these health and safety signs. Only
what or who is forbidden should be displayed on a restriction sign.

Fig. 7.1.1. Prohibi on arning Signs

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2. Mandatory Signs:
Mandatory signs give clear directions that must be followed. The icons are white circles that have been
reversed out of a blue circle. On a white background, the text is black.

Fig. 7.1.2. Mandatory Signs

3. Warning Signs
Warning signs are the safety informa oncommunicaa osigns. They are shown as a ‘yellow colour
triangle’.

Fig. 7.1.3. Warning Signs

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4. Emergency Signs

The loca onor routes to emergency ffacili eare indicated by emergency signs. These signs have a
green backdrop with a white emblem or wri ng.These signs convey basic informaa oand frequently
refer to housekeeping, company procedures, or logis cs.

Fig. 7.1.4. Emergency Signs

7.1.5 Cleanliness in the Workplace

Workplace cleanliness maintenance creates a healthy, efficient and productive environment for the
employees. Cleanliness at the workplace is hindered by some elements like cluttered desks, leftover
food, waste paper, etc. A tidy workplace is said to improve employee professionalism and enthusiasm
while also encouraging a healthy working environment.

Benefits of cleanliness in the workplace:

1. Productivity: Cleanliness in the workplace can bring a sense of belonging to the employees, also
motivating and boosting the morale of the employees. This results in increasing their productivity.
2. Employee Well-being: Employee well-being can be improved by providing a clean work
environment. Employees use fewer sick days in a workplace where litter and waste are properly
disposed of, and surfaces are cleaned regularly, resulting in increased overall productivity.
3. Positive Impression: Cleanliness and orderliness in the workplace provide a positive impression on
both employees and visitors.
4. Cost saving: By maintaining acceptable levels of cleanliness in the workplace, businesses can save
money on cleaning bills and renovations, which may become necessary if the premises are not
properly kept.

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Reasons for Cleaning the Workplace

Ÿ Cleaning of dry floors, mostly to prevent workplace slips and falls.

Ÿ Disinfectants stop bacteria in their tracks, preventing the spread of infections and illness.
Ÿ Proper air filtration decreases hazardous substance exposures such as dust and fumes.
Ÿ Light fixture cleaning improves lighting efficiency.
Ÿ Using environmentally friendly cleaning chemicals that are safer for both personnel and the
environment.
Ÿ Work environments are kept clean by properly disposing of garbage and recyclable items.

7.1.� Li�ing and �andling of �eavy Loads

Musculoskeletal Injuries (MSIs), such as sprains and strains, can occur while lifting, handling, or
carrying objects at work. When bending, twisting, uncomfortable postures and lifting heavy objects are
involved, the risk of injury increases. Ergonomic controls can help to lower the risk of injury and
potentially prevent it.
Types of injuries caused while lifting heavy objects:
• Cuts and abrasions are caused by rough surfaces.
• Crushing of feet or hands.
• Strain to muscles and joints

Fig. 7.1.�. �i�ing ����s ec�ni��e

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Preparing to lift
A load that appears light enough to bear at first will grow increasingly heavier as one carries it further.
The person carrying the weight should be able to see over or around it at all times.
The amount of weight a person can lift, depends on their age, physique, and health
It also depends on whether or not the person is used to lifting and moving hefty objects.

Common Causes of Back Injuries

The Most Common Causes of Back Injuries are:
1) Inadequate Training: The individual raising the load receives no sufficient training or guidance.
2) Lack of awareness of technique: The most common cause of back pain is incorrect twisting and
posture, which causes back strain.
3) Load size: The load size to consider before lifting. If the burden is too much for one's capacity or
handling, their back may be strained and damaged.
4) Physical Strength: Depending on their muscle power, various persons have varied physical
strengths. One must be aware of their limitations.
5) Teamwork: The operation of a workplace is all about working together. When opposed to a single
person lifting a load, two people can lift it more easily and without difficulty. If one of two people
isn't lifting it properly, the other or both of them will suffer back injuries as a result of the extra
strain.
Techniques for Lifting Heavy Objects

Technique Demonstraton

1. Ensure one has a wide base of support before lifting

the heavy object. Ensure one's feet are shoulder-width
apart, and one foot is slightly ahead of the other at all
times. This will help one maintain a good balance
during the lifting of heavy objects. This is known as the
Karate Stance.

2. Squat down as near to the object as possible when one

is ready to lift it, bending at the hips and knees with
the buttocks out. If the object is really heavy, one may
wish to place one leg on the floor and the other bent
at a straight angle in front of them.

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3. Maintain proper posture as one begin to lift

upward. To do so, one should keep their back
straight, chest out, and shoulders back while
gazing straight ahead.

4. By straightening one's hips and knees, slowly

elevate the thing (not the back). As one rises,
they should extend their legs and exhale. Lift
the heavy object without twisting the body
or bending forward.

5. Do not lift bending forward.

6. Hold the load close to the body.

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7. Never lift heavy objects above the shoulder

8. Use the feet (not the body) to change direction,

taking slow, small steps.

9. Set down the heavy object carefully, squatting with

the knees and hips only.

Table 7.1.1 Techniques for li�ing he vy objects

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7.1.7 Safe Handling of Tools

Workers should be trained on how to use tools safely. When tools are misplaced or handled incorrectly
by workers, they can be dangerous. The following are some suggestions from the National Safety Council
for safe tool handling when they are not in use:
Ÿ Never carry tools up or down a ladder in a way that makes it difficult to grip them. Instead of being
carried by the worker, tools should be lifted up and down using a bucket or strong bag.
Ÿ Tools should never be tossed but should be properly passed from one employee to the next. Pointed
tools should be passed with the handles facing the receiver or in their carrier.
Ÿ When turning and moving around the workplace, workers carrying large tools or equipment on their
shoulders should pay particular attention to clearances.
Ÿ Pointed tools such as chisels and screwdrivers should never be kept in a worker's pocket. They can be
carried in a toolbox, pointing down in a tool belt or pocket tool bag, or in hand with the tip always
held away from the body.
Ÿ Tools should always be stored while not in use. People below are put in danger when tools are left
sitting around on an elevated structure, such as a scaffold. In situations when there is a lot of
vibration, this risk increases.

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7.1.8 Personal Protec ve Equipment

Personal protective equipment, or "PPE," is equipment worn to reduce exposure to risks that might
result in significant occupational injuries or illnesses. Chemical, radiological, physical, electrical,
mechanical, and other job dangers may cause these injuries and diseases.

PPE used for protec on fom the following injuries are:

Injury Protecton Protecton PPE

Falling or flying objects, stationary

Head Injury
Protecton objects, or contact with electrical wires
can cause impact, penetration, and
electrical injuries. Hard hats can
protect one's head from these injuries.
A common electrician's hard hat is
shown in the figure below. This hard
hat is made of nonconductive plastic
and comes with a set of safety goggles.

In addition to foot protection and

Foot and Leg
safety shoes, leggings (e.g., leather)
Injury Protecton
can guard against risks such as falling
or rolling objects, sharp objects, wet
and slippery surfaces, molten
metals, hot surfaces, and electrical
hazards.

Eye and Face Spectacles, goggles, special helmets

Injury Protecton or shields, and spectacles with side
shields and face shields can protect
against the hazards of flying
fragments, large chips, hot sparks,
radiation, and splashes from molten
metals. They also offer protection
from particles, sand, dirt, mists,
dust, and glare.

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Hearing protection can be obtained by

Protecton
wearing earplugs or earmuffs. High
against Hearing
Loss noise levels can result in permanent
hearing loss or damage, as well as
physical and mental stress. Self-
forming earplugs composed of foam,
waxed cotton, or fibreglass wool
usually fit well. Workers should be
fitted for moulded or prefabricated
earplugs by a specialist.

Hand Injury Hand protection will aid workers who

Protecton are exposed to dangerous substances
by skin absorption, serious wounds, or
thermal burns. Gloves are a frequent
protective clothing item. When
working on electrified circuits,
electricians frequently use leather
gloves with rubber inserts. When
stripping cable with a sharp blade,
Kevlar gloves are used to prevent cuts.
Workers must protect their entire
Whole Body bodies from risks such as heat and
Protecton radiation. Rubber, leather, synthetics,
and plastic are among the materials
used in whole-body PPE, in addition to
fire-retardant wool and cotton.
Maintenance staff who operate with
high-power sources such as
transformer installations and motor-
control centres are frequently obliged
to wear fire-resistant clothes.

Table 7.1.2. Personal protec ve equipment

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UNIT 7.2: Fire Safety

Unit Objec ves

By the end of this unit, par cipants will be able to:
1. List the types of fire and fire e ex nguiss.

7.2.1 Fire Safety

Fire safety is a set of actions aimed at reducing the amount of damage caused by fire. Fire safety
procedures include both those that are used to prevent an uncontrolled fire from starting and those
that are used to minimise the spread and impact of a fire after it has started. Developing and
implementing fire safety measures in the workplace is not only mandated by law but is also essential
for the protection of everyone who may be present in the building during a fire emergency.
The basic Fire Safety Responsibilities are:
• To identify risks on the premises, a fire risk assessment must be carried out.
• Ascertain that fire safety measures are properly installed.
• Prepare for unexpected events.
• Fire safety instructions and training should be provided to the employees.

7.2.2 Respond to a Workplace Fire

• Workplace fire drills should be conducted on a regular basis.
• If one has a manual alarm, they should raise it.
• Close the doors and leave the fire-stricken area as soon as possible. Ensure that the evacuation is
quick and painless.
• Turn off dangerous machines and don't stop to get personal items.
• Assemble at a central location. Ascertain that the assembly point is easily accessible to the
employees.
• If one's clothing catches fire, one shouldn't rush about it. They should stop and descend on the
ground and roll to smother the flames if their clothes catch fire.

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7.2.3 Fire Ex nguisher

Fire extinguishers are portable devices used to put out small flames or minimise their damage until
fire-fighters arrive. These are maintained on hand in locations such as fire stations, buildings,
workplaces, public transit, and so on. The types and quantity of extinguishers that are legally necessary
for a given region are determined by the applicable safety standards.

Types of fire extinguishers are:

There are five main types of fire extinguishers:
1. Water.
2. Powder.
3. Foam.
4. Carbon Dioxide (CO2).
5. Wet chemical.

1. Water: Water fire extinguishers are one of the most common

commercial and residential fire extinguishers on the market. They're
meant to be used on class-A flames.

2. Powder: The L2 powder fire extinguisher is the most commonly

recommended fire extinguisher in the Class D Specialist Powder
category, and is designed to put out burning lithium metal fires.

3. Foam: Foam extinguishers are identified by a cream rectangle with the

word "foam" printed on it. They're mostly water-based, but they also
contain a foaming component that provides a quick knock-down and
blanketing effect on flames. It suffocates the flames and seals the
vapours, preventing re-ignition.

4. Carbon Dioxide (CO2): Class B and electrical fires are extinguished with
carbon dioxide extinguishers, which suffocate the flames by removing
oxygen from the air. They are particularly beneficial for workplaces and
workshops where electrical fires may occur since, unlike conventional
extinguishers, they do not leave any toxins behind and hence minimise
equipment damage.

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5. Wet Chemical: Wet chemical extinguishers are designed to put out fires
that are classified as class F. They are successful because they can put out
extremely high-temperature fires, such as those caused by cooking oils
and fats.

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UNIT 7.3: First Aid

Unit Objec ves

By the end of this unit, participants will be able to:
1. Explain how the administer appropriate first aid to victims in case of bleeding, burns, choking,
electric shock, poisoning
2. Explain how to administer first aid to victims in case of a heart attack or cardiac arrest due to
electric shock.

7.3.1 First Aid

First aid is the treatment or care given to someone who has sustained an injury or disease until more
advanced care can be obtained or the person recovers.
The aim of first aid is to:
Ÿ Preserve life
Ÿ Prevent the worsening of a sickness or injury
Ÿ If at all possible, relieve pain
Ÿ Encourage recovery
Ÿ Keep the unconscious safe.
First aid can help to lessen the severity of an injury or disease, and in some situations, it can even save
a person's life.

7.3.2 Need for First Aid at the Workplace

Ÿ In the workplace, first aid refers to providing immediate care and life support to persons who have
been injured or become unwell at work.
Ÿ Many times, first aid can help to lessen the severity of an accident or disease.
Ÿ It can also help an injured or sick person relax. In life-or-death situations, prompt and appropriate
first aid can make all the difference.

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7.3.2 Need for First Aid at the Workplace

In the workplace, first aid refers to providing immediate care and life support to persons who have
been injured or become unwell at work.
Many times, first aid can help to lessen the severity of an accident or disease.
It can also help an injured or sick person relax. In life-or-death situations, prompt and appropriate first
aid can make all the difference.

7.3.3 Trea ng Minor Cuts and Scapes

Steps to keep cuts clean and prevent infec onsand scars:
Ÿ Wash Hands: Wash hands first with soap and water to avoid introducing bacteria into the cut and
causing an infection. One should use the hand sanitiser if one is on the go.
Ÿ Stop the bleeding: Using a gauze pad or a clean towel, apply pressure to the wound. For a few
minutes, keep the pressure on.
Ÿ Clean Wounds: Once the bleeding has stopped, clean the wound by rinsing it under cool running
water or using a saline wound wash. Use soap and a moist washcloth to clean the area around the
wound. Soap should not be used on the cut since it may irritate the skin. Also, avoid using hydrogen
peroxide or iodine, as these may aggravate the wound.
Ÿ Remove Dirt: Remove any dirt or debris from the area. Pick out any dirt, gravel, glass, or other
material in the cut with a pair of tweezers cleaned with alcohol.

7.3.4 Heart Atack

When the blood flow carrying oxygen to the heart is blocked, a heart attack occurs. The heart muscle
runs out of oxygen and starts to die.
Symptoms of a heart attack can vary from person to person. They may be mild or severe. Women,
older adults, and people with diabetes are more likely to have subtle or unusual symptoms.

Symptoms in adults may include:

Ÿ Changes in mental status, especially in older adults.
Ÿ Chest pain that feels like pressure, squeezing, or fullness. The pain is most often in the centre of the
chest. It may also be felt in the jaw, shoulder, arms, back, and stomach. It can last for more than a
few minutes or come and go.
Ÿ Cold sweat.
Ÿ Light-headedness.
Ÿ Nausea (more common in women).
Ÿ Indigestion.

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Ÿ Vomiting.
Ÿ Numbness, aching or tingling in the arm (usually the left arm, but the right arm may be affected
alone, or along with the left).
Ÿ Shortness of breath
Ÿ Weakness or fatigue, especially in older adults and in women.

First Aid for Heart Attack

If one thinks someone is experiencing a heart attack, they should:
Ÿ Have the person sit down, rest, and try to keep calm.
Ÿ Loosen any tight clothing.
Ÿ Ask if the person takes any chest pain medicine, such as nitro-glycerine for a known heart condition,
and help them take it.
Ÿ If the pain does not go away promptly with rest or within 3 minutes of taking nitro-glycerine, call for
emergency medical help.
Ÿ If the person is unconscious and unresponsive, call 911 or the local emergency number, then begin
CPR.
Ÿ If an infant or child is unconscious and unresponsive, perform 1 minute of CPR, then call 911 or the
local emergency number.

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UNIT 7.4: Waste Management

Unit Objec ves

By the end of this unit, par cipants will be able to:
1. Describe the concept of waste management and methods of disposing of hazardous waste.
2. List the common sources of pollu onand ways to minimize them.
3. Elaborate on electronic waste disposal procedures.

7.4.1. Waste Management and Methods of Waste Disposal

The collection, disposal, monitoring, and processing of waste materials is known as waste
management. These wastes affect living beings' health and the environment. For reducing their effects,
they have to be managed properly. The waste is usually in solid, liquid or gaseous form.
The importance of waste management is:
Waste management is important because it decreases waste's impact on the environment, health, and
other factors. It can also assist in the reuse or recycling of resources like paper, cans, and glass. The
disposal of solid, liquid, gaseous, or dangerous substances is the example of waste management.
When it comes to trash management, there are numerous factors to consider, including waste disposal,
recycling, waste avoidance and reduction, and garbage transportation. Treatment of solid and liquid
wastes is part of the waste management process. It also provides a number of recycling options for
goods that aren't classified as garbage during the process.

7.4.2 Methods of Waste Management

Non-biodegradable and toxic wastes, such as radioactive remains, can cause irreversible damage to the
environment and human health if they are not properly disposed of. Waste disposal has long been a
source of worry, with population increase and industrialisation being the primary causes. Here are a
few garbage disposal options.
1. Landfills: The most common way of trash disposal today is to throw daily waste/garbage into
landfills. This garbage disposal method relies on burying the material in the ground.
2. Recycling: Recycling is the process of transforming waste items into new products in order to
reduce energy consumption and the use of fresh raw materials. Recycling reduces energy
consumption, landfill volume, air and water pollution, greenhouse gas emissions, and the
preservation of natural resources for future use.

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3. Composting: Composting is a simple and natural bio-degradation process that converts organic
wastes, such as plant remnants, garden garbage, and kitchen waste, into nutrient-rich food for
plants.
4. Incineration: Incineration is the process of combusting garbage. The waste material is cooked to
extremely high temperatures and turned into materials such as heat, gas, steam, and ash using this
technology.

7.4.3 Recyclable, Non-Recyclable and Hazardous Waste

1. Recyclable Waste: The waste which can be reused or recycled further is known as recyclable waste.
2. Non-recyclable Waste: The waste which cannot be reused or recycled is known as non-recyclable
waste. Polythene bags are a great example of non-recyclable waste.
3. Hazardous Waste: The waste which can create serious harm to the people and the environment is
known as hazardous waste.

7.4.4 Sources of Pollu on

Pollution is defined as the harm caused by the presence of a material or substances in places where
they would not normally be found or at levels greater than normal. Polluting substances might be in
the form of a solid, a liquid, or a gas.
Ÿ Point source of pollution: Pollution from a point source enters a water body at a precise location
and can usually be identified. Effluent discharges from sewage treatment plants and industrial sites,
power plants, landfill sites, fish farms, and oil leakage via a pipeline from industrial sites are all
potential point sources of contamination.
Point source pollution is often easy to prevent since it is feasible to identify where it originates, and
once identified, individuals responsible for the pollution can take rapid corrective action or invest in
longer-term treatment and control facilities.
Ÿ Diffuse source of pollution: As a result of land-use activities such as urban development, amenity,
farming, and forestry, diffuse pollution occurs when pollutants are widely used and diffused over a
large region. These activities could have occurred recently or in the past. It might be difficult to
pinpoint specific sources of pollution and, as a result, take rapid action to prevent it because
prevention often necessitates significant changes in land use and management methods.

Pollution Prevention
Pollution prevention entails acting at the source of pollutants to prevent or minimise their production.
It saves natural resources, like water, by using materials and energy more efficiently.

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Pollution prevention includes any practice that:

Ÿ Reduces the amount of any hazardous substance, pollutant, or contaminant entering any waste
stream or otherwise released into the environment (including fugitive emissions) prior to recycling,
treatment, or disposal;
Ÿ Reduces the hazards to public health and the environment associated with the release of such
substances, pollutants, or contaminants (these practices are known as "source reduction");
Ÿ Improved efficiency in the use of raw materials, energy, water, or other resources, or Conservation
is a method of safeguarding natural resources.
Ÿ Improvements in housekeeping, maintenance, training, or inventory management; equipment or
technology adjustments; process or method modifications; product reformulation or redesign; raw
material substitution; or improvements in housekeeping, maintenance, training, or inventory
control.

7.4.5 Electronic Waste

Lead, cadmium, beryllium, mercury, and brominated flame retardants are found in every piece of
electronic waste. When gadgets and devices are disposed of illegally, these hazardous compounds are
more likely to contaminate the earth, pollute the air, and leak into water bodies.
When e-waste is dumped in a landfill, it tends to leach trace metals as water runs through it. The
contaminated landfill water then reaches natural groundwater with elevated toxic levels, which can be
dangerous if it reaches any drinking water bodies. Despite having an environmentally benign approach,
recycling generally results in international shipment and dumping of the gadgets in pits.
Some eco-friendly ways of disposing of e-waste are:
Ÿ Giving back the e-waste to the electronic companies and drop-off points
Ÿ Following guidelines issued by the government
Ÿ Selling or donating the outdated technology-based equipment
Ÿ Giving e-waste to a certified e-waste recycler

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Exercise
1. Name all five types of fire extinguishers.
2. Explain PPE in brief.
3. List the common workplace hazards.
4. Fill in the blacks:
i. A "_________ sign" is a safety sign that prohibits behaviour that is likely to endanger one's health
or safety.
ii. ____________ entails acting at the source of pollutants to prevent or minimise their production.
iii. __________ is the treatment or care given to someone who has sustained an injury or disease
until more advanced care can be obtained or the person recovers.
iv. The threats caused by biological agents like viruses, bacteria, animals, plants, insects and also
humans, are known as ________________.
v. The workplace has to be administered as per the rules of the ___________________.

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8. Employability &
Entrepreneurship Skills

Unit 8.1 – Personal Strengths & Value Systems

Unit 8.2 – Digital Literacy: A Recap
Unit 8.3 – Money Matters
Unit 8.4 – Preparing for Employment & Self-Employment
Unit 8.5 – Understanding Entrepreneurship
Unit 8.6 – Preparing to be an Entrepreneur

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Key Learning Outcomes

At the end of this module, you will be able to:
1. Explain the meaning of health
2. List common health issues
3. Discuss tips to prevent common health issues
4. Explain the meaning of hygiene
5. Discuss the purpose of Swacch Bharat Abhiyan
6. Explain the meaning of habit
7. Discuss ways to set up a safe work environment
8. Discuss critical safety habits to be followed by employees
9. Explain the importance of self-analysis
10. Discuss motivation with the help of Maslow’s Hierarchy of Needs
11. Discuss the meaning of achievement motivation
12. List the characteristics of entrepreneurs with achievement motivation
13. List the different factors that motivate you
14. Discuss the role of attitude in self-analysis
15. Discuss how to maintain a positive attitude
16. List your strengths and weaknesses
17. Discuss the qualities of honest people
18. Describe the importance of honesty in entrepreneurs
19. Discuss the elements of a strong work ethic
20. Discuss how to foster a good work ethic
21. List the characteristics of highly creative people
22. List the characteristics of highly innovative people
23. Discuss the benefits of time management
24. List the traits of effective time managers
25. Describe effective time management technique
26. Discuss the importance of anger management
27. Describe anger management strategies
28. Discuss tips for anger management
29. Discuss the causes of stress
30. Discuss the symptoms of stress
31. Discuss tips for stress management
32. Identify the basic parts of a computer
33. Identify the basic parts of a keyboard
34. Recall basic computer terminology
35. Recall the functions of basic computer keys
36. Discuss the main applications of MS Office
37. Discuss the benefits of Microsoft Outlook
38. Discuss the different types of e-commerce
39. List the benefits of e-commerce for retailers and customers
40. Discuss how the Digital India campaign will help boost e-commerce in India

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41. Describe how you will sell a product or service on an e-commerce platform
42. Discuss the importance of saving money
43. Discuss the benefits of saving money
44. Discuss the main types of bank accounts
45. Describe the process of opening a bank account
46. Differentiate between fixed and variable costs
47. Describe the main types of investment options
48. Describe the different types of insurance products
49. Describe the different types of taxes
50. Discuss the uses of online banking
51. Discuss the main types of electronic funds transfers
52. Discuss the steps to prepare for an interview
53. Discuss the steps to create an effective Resume
54. Discuss the most frequently asked interview questions
55. Discuss how to answer the most frequently asked interview questions
56. Discuss basic workplace terminology
57. Discuss the concept of entrepreneurship
58. Discuss the importance of entrepreneurship
59. Describe the characteristics of an entrepreneur
60. Describe the different types of enterprises
61. List the qualities of an effective leader
62. Discuss the benefits of effective leadership
63. List the traits of an effective team
64. Discuss the importance of listening effectively
65. Discuss how to listen effectively
66. Discuss the importance of speaking effectively
67. Discuss how to speak effectively
68. Discuss how to solve problems
69. List important problem-solving traits
70. Discuss ways to assess problem solving skills
71. Discuss the importance of negotiation
72. Discuss how to negotiate
73. Discuss how to identify new business opportunities
74. Discuss how to identify business opportunities within your business
75. Explain the meaning of entrepreneur
76. Describe the different types of entrepreneurs
77. List the characteristics of entrepreneurs
78. Recall entrepreneur success stories
79. Discuss the entrepreneurial process
80. Describe the entrepreneurship ecosystem
81. Discuss the purpose of the Make in India campaign
82. Discuss key schemes to promote entrepreneurs

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83. Discuss the relationship between entrepreneurship and risk appetite

84. Discuss the relationship between entrepreneurship and resilience
85. Describe the characteristics of a resilient entrepreneur
86. Discuss how to deal with failure
87. Discuss how market research is carried out
88. Describe the 4 Ps of marketing
89. Discuss the importance of idea generation
90. Recall basic business terminology
91. Discuss the need for CRM
92. Discuss the benefits of CRM
93. Discuss the need for networking
94. Discuss the benefits of networking
95. Discuss the importance of setting goals
96. Differentiate between short-term, medium-term and long-term goals
97. Discuss how to write a business plan
98. Explain the financial planning process
99. Discuss ways to manage your risk
100. Describe the procedure and formalities for applying for bank finance
101. Discuss how to manage your own enterprise
102. List important questions that every entrepreneur should ask before starting an
enterprise

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UNIT 8.1: Personal Strengths & Value Systems

Unit Objectives
At the end of this unit, participant will be able to:
1. Explain the meaning of health
2. List common health issues
3. Discuss tips to prevent common health issues
4. Explain the meaning of hygiene
5. Discuss the purpose of Swacch Bharat Abhiyan
6. Explain the meaning of habit
7. Discuss ways to set up a safe work environment
8. Discuss critical safety habits to be followed by employees
9. Explain the importance of self-analysis
10. Discuss motivation with the help of Maslow’s Hierarchy of Needs
11. Discuss the meaning of achievement motivation
12. List the characteristics of entrepreneurs with achievement motivation
13. List the different factors that motivate you
14. Discuss the role of attitude in self-analysis
15. Discuss how to maintain a positive attitude
16. List your strengths and weaknesses
17. Discuss the qualities of honest people
18. Describe the importance of honesty in entrepreneurs
19. Discuss the elements of a strong work ethic
20. Discuss how to foster a good work ethic
21. List the characteristics of highly creative people
22. List the characteristics of highly innovative people
23. Discuss the benefits of time management
24. List the traits of effective time managers
25. Describe effective time management technique
26. Discuss the importance of anger management
27. Describe anger management strategies
28. Discuss tips for anger management
29. Discuss the causes of stress
30. Discuss the symptoms of stress
31. Discuss tips for stress management

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8.1.1 Health, Habits, Hygiene: What is Health?

As per the World Health Organization (WHO), health is a “State of complete physical,
mental, and social well-being, and not merely the absence of disease or infirmity.” This
means being healthy does not simply mean not being unhealthy – it also means you need to
be at peace emotionally and feel fit physically. For example, you cannot say you are healthy
simply because you do not have any physical ailments like a cold or cough. You also need to
think about whether you are feeling calm, relaxed and happy.

Common Health Issues

Some common health issues are:
• Allergies
• Asthma
• Skin Disorders
• Depression and Anxiety
• Diabetes
• Cough, Cold, Sore Throat
• Difficulty Sleeping
• Obesity

8.1.1.1 Tips to Prevent Health Issues

Taking measures to prevent ill health is always better than curing a disease or sickness. You
can stay healthy by:
• Eating healthy foods like fruits, vegetables and nuts
• Cutting back on unhealthy and sugary foods
• Drinking enough water everyday
• Not smoking or drinking alcohol
• Exercising for at least 30 minutes a day, 4-5 times a week
• Taking vaccinations when required
• Practicing yoga exercises and meditation

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How many of these health standards do you follow? Tick the ones that apply to you.

1. Get minimum 7-8 hours of sleep every night.

2. Avoid checking email first thing in the morning and right before you
go to bed at night.
3. Don’t skip meals – eat regular meals at correct meal times.

4. Read a little bit every single day.

5. Eat more home cooked food than junk food.

6. Stand more than you sit.

7. Drink a glass of water first thing in the morning and have at least 8
glasses of water through the day.
8. Go to the doctor and dentist for regular check-ups.
9. Exercise for 30 minutes at least 5 days a week.

10. Avoid consuming lots of aerated beverages.

[

8.1.1.2 What is Hygiene?

As per the World Health Organization (WHO), “Hygiene refers to conditions and practices
that help to maintain health and prevent the spread of diseases.” In other words, hygiene
means ensuring that you do whatever is required to keep your surroundings clean, so that
you reduce the chances of spreading germs and diseases.

For instance, think about the kitchen in your home. Good hygiene means ensuring that the
kitchen is always spick and span, the food is put away, dishes are washed, and dustbins are
not overflowing with garbage. Doing all this will reduce the chances of attracting pests like
rats or cockroaches, and prevent the growth of fungus and other bacteria, which could
spread disease.

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How many of these health standards do you follow? Tick the ones that apply to you.

1. Have a bath or shower every day with soap – and wash your hair with
shampoo 2-3 times a week.

2. Wear a fresh pair of clean undergarments every day.

3. Brush your teeth in the morning and before going to bed.

4. Cut your fingernails and toenails regularly.

5. Wash your hands with soap after going to the toilet.

6. Use an anti-perspirant deodorant on your underarms if you sweat a lot.

7. Wash your hands with soap before cooking or eating.

8. Stay home when you are sick, so other people don’t catch what you have.

9. Wash dirty clothes with laundry soap before wearing them again.

10. Cover your nose with a tissue/your hand when coughing or sneezing.

See how healthy and hygienic you are, by giving yourself 1 point for every ticked statement!
Then take a look at what your score means.

Your Score
• 0-7/20: You need to work a lot harder to stay fit and fine! Make it a point to practice
good habits daily and see how much better you feel!
• 7-14/20: Not bad, but there is scope for improvement! Try and add a few more good
habits to your daily routine.
• 14-20/20: Great job! Keep up the good work! Your body and mind thank you!

8.1.1.3 Swachh Bharat Abhiyan

We have already discussed the importance of following good hygiene and health practices
for ourselves. But, it is not enough for us to be healthy and hygienic. We must also extend this
standard to our homes, our immediate surroundings and to our country as a whole.

The ‘Swachh Bharat Abhiyan’ (Clean India Mission) launched by Prime Minister Shri
Narendra Modi on 2nd October 2014, believes in doing exactly this. The aim of this mission
is to clean the streets and roads of India and raise the overall level of cleanliness. Currently
this mission covers 4,041 cities and towns across the country. Millions of our people have
taken the pledge for a clean India. You should take the pledge too, and do everything possible
to keep our country clean!

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8.1.1.4 What are Habits?

A habit is a behaviour that is repeated frequently. All of us have good habits and bad habits.
Keep in mind the phrase by John Dryden: “We first make our habits, and then our habits
make us.” This is why it is so important that you make good habits a way of life, and
consciously avoid practicing bad habits.

Some good habits that you should make part of your daily routine are:
• Always having a positive attitude
• Making exercise a part of your daily routine
• Reading motivational and inspirational stories
• Smiling! Make it a habit to smile as often as possible
• Making time for family and friends
• Going to bed early and waking up early

Some bad habits that you should quit immediately are:

• Skipping breakfast
• Snacking frequently even when you are not hungry
• Eating too much fattening and sugary food
• Smoking, drinking alcohol and doing drugs
• Spending more money than you can afford
• Worrying about unimportant issues
• Staying up late and waking up late

Tips
• Following healthy and hygienic practices every day will make you feel good mentally and
physically.
• Hygiene is two-thirds of health – so good hygiene will help you stay strong and healthy!

8.1.2: Safety: Tips to Design a Safe Workplace

Every employer is obligated to ensure that his workplace follows the highest possible safety
protocol. When setting up a business, owners must make it a point to:
• Use ergonomically designed furniture and equipment to avoid stooping and twisting
• Provide mechanical aids to avoid lifting or carrying heavy objects
• Have protective equipment on hand for hazardous jobs
• Designate emergency exits and ensure they are easily accessible
• Set down health codes and ensure they are implemented
• Follow the practice of regular safety inspections in and around the workplace
• Ensure regular building inspections are conducted
• Get expert advice on workplace safety and follow it

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8.1.2.1 Negotiable Employee Safety Habits

Every employer is obligated to ensure that his workplace follows the highest possible safety
protocol. When setting up a business, owners must make it a point to:
• Immediately report unsafe conditions to a supervisor
• Recognize and report safety hazards that could lead to slips, trips and falls
• Report all injuries and accidents to a supervisor
• Wear the correct protective equipment when required
• Learn how to correctly use equipment provided for safety purposes
• Be aware of and avoid actions that could endanger other people
• Take rest breaks during the day and some time off from work during the week

Tips
• Be aware of what emergency number to call at the time of a workplace emergency
• Practice evacuation drills regularly to avoid chaotic evacuations

8.1.3 Self-Analysis – Attitude, Achievement Motivation

To truly achieve your full potential, you need to take a deep look inside yourself and find out
what kind of person you really are. This attempt to understand your personality is known as
self-analysis. Assessing yourself in this manner will help you grow, and will also help you to
identify areas within yourself that need to be further developed, changed or eliminated. You
can better understand yourself by taking a deep look at what motivates you, what your
attitude is like, and what your strengths and weaknesses are.

8.1.3.1 What is Motivation?

Very simply put, motivation is your reason for acting or behaving in a certain manner. It is
important to understand that not everyone is motivated by the same desires – people are
motivated by many, many different things. We can understand this better by looking at
Maslow’s Hierarchy of Needs.

8.1.3.2 Maslow’s Hierarchy of Needs

Famous American psychologist Abraham Maslow wanted to understand what motivates
people. He believed that people have five types of needs, ranging from very basic needs
(called physiological needs) to more important needs that are required for self-growth
(called
self-actualization needs). Between the physiological and self-actualization needs are three
other needs – safety needs, belongingness and love needs, and esteem needs.

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These needs are usually shown as a pyramid with five levels and are known as Maslow’s
Hierarchy of Needs.

Fig. 8.1.1: Maslow’s Hierarchy of Needs

The lowest level depicts the most basic needs. According to Maslow, our behaviour is driven
by our basic needs, until those needs are fulfilled. Once they are fulfilled, we move to the
next level and are motived by the next level of needs. Let’s understand this better with an
example.

Rupa comes from a very poor family. She never has enough food, water, warmth or rest.
According to Maslow, until Rupa is sure that she will get these basic needs, she will not even
think about the next level of needs – her safety needs. But, once Rupa is confident that her
basic needs will be met, she will move to the next level, and her behaviour will then be
motivated by her need for security and safety. Once these new needs are met, Rupa will
once again move to the next level, and be motivated by her need for relationships and
friends. Once this need is satisfied, Rupa will then focus on the fourth level of needs – her
esteem needs, after which she will move up to the fifth and last level of needs – the desire
to achieve her full potential.

8.1.3.3 Understanding Achievement Motivation

We now know that people are motivated by basic, psychological and self-fulfillment needs.
However, certain people are also motivated by the achievement of highly challenging
accomplishments. This is known as Achievement Motivation, or ‘need for achievement’.

The level of motivation achievement in a person differs from individual to individual. It is

important that entrepreneurs have a high level of achievement motivation – a deep desire
to accomplish something important and unique. It is equally important that they hire people
who are also highly motivated by challenges and success.

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What Motivates You?

What are the things that really motivate you? List down five things that really motivate you.
Remember to answer honestly!
I am motivated by:

Characteristics of Entrepreneurs with Achievement Motivation

Entrepreneurs with achievement motivation can be described as follows:
• Unafraid to take risks for personal accomplishment
• Love being challenged Future-oriented Flexible and adaptive
• Value negative feedback more than positive feedback
• Very persistent when it comes to achieving goals
• Extremely courageous
• Highly creative and innovative
• Restless - constantly looking to achieve more
• Feel personally responsible for solving problems

Think about it:

• How many of these traits do you have?
• Can you think of entrepreneurs who display these traits?

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8.1.3.4 How to Cultivate a Positive Attitude?

The good news is attitude is a choice. So, it is possible to improve, control and change our
attitude, if we decide we want to!

The following tips help foster a positive mindset:

• Remember that you control your attitude, not the other way around
• Devote at least 15 minutes a day towards reading, watching or listening to something
positive
• Avoid negative people who only complain and stop complaining yourself
• Expand your vocabulary with positive words and delete negative phrases from your
mind
• Be appreciative and focus on what’s good in yourself, in your life, and in others
• Stop thinking of yourself as a victim and start being proactive
• Imagine yourself succeeding and achieving your goals

8.1.3.5 What is Attitude?

Now that we understand why motivation is so important for self-analysis, let’s look at the
role our attitude plays in better understanding ourselves. Attitude can be described as your
tendency (positive or negative), to think and feel about someone or something. Attitude is
the foundation for success in every aspect of life. Our attitude can be our best friend or our
worst enemy. In other words:
“The only disability in life is a bad attitude.”

When you start a business, you are sure to encounter a wide variety of emotions, from
difficult times and failures to good times and successes. Your attitude is what will see you
through the tough times and guide you towards success. Attitude is also infectious. It affects
everyone around you, from your customers to your employees to your investors. A positive
attitude helps build confidence in the workplace while a negative attitude is likely to result in
the demotivation of your people.

8.1.3.6 What Are Your Strengths and Weaknesses?

Another way to analyse yourself is by honestly identifying your strengths and weaknesses.
This will help you use your strengths to your best advantage and reduce your weaknesses.
Note down all your strengths and weaknesses in the two columns below. Remember to be
honest with yourself!

Strengths Weaknesses

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Tips
• Achievement motivation can be learned.
• Don’t be afraid to make mistakes.
• Train yourself to finish what you start.
• Dream big.

8.1.4 Honesty & Work Ethics: What is Honesty?

Honesty is the quality of being fair and truthful. It means speaking and acting in a manner
that inspires trust. A person who is described as honest is seen as truthful and sincere, and
as someone who isn’t deceitful or devious and doesn’t steal or cheat. There are two
dimensions of honesty – one is honesty in communication and the other is honesty in
conduct.

Honesty is an extremely important trait because it results in peace of mind and builds
relationships that are based on trust. Being dishonest, on the other hand, results in anxiety
and leads to relationships full of distrust and conflict.

8.1.4.1 Qualities of Honest People

Honest individuals have certain distinct characteristics. Some common qualities among
honest people are:
• They don’t worry about what others think of them. They believe in being themselves –
they don’t bother about whether they are liked or disliked for their personalities.
• They stand up for their beliefs. They won’t think twice about giving their honest opinion,
even if they are aware that their point of view lies with the minority.
• They are think skinned. This means they are not affected by others judging them harshly
for their honest opinions.
• They forge trusting, meaningful and healthy friendships. Honest people usually surround
themselves with honest friends. They have faith that their friends will be truthful and
upfront with them at all times.

They are trusted by their peers. They are seen as people who can be counted on for
truthful and objective feedback and advice.
• Honesty and employees: When entrepreneurs build honest relationships with their
employees, it leads to more transparency in the workplace, which results in higher work
performance and better results.
• Honesty and investors: For entrepreneurs, being honest with investors means not only
sharing strengths but also candidly disclosing current and potential weaknesses,
problem areas and solution strategies. Keep in mind that investors have a lot of
experience with startups and are aware that all new companies have problems. Claiming
that everything is perfectly fine and running smoothly is a red flag for most investors.

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• Honesty with oneself: The consequences of being dishonest with oneself can lead to
dire results, especially in the case of entrepreneurs. For entrepreneurs to succeed, it is
critical that they remain realistic about their situation at all times, and accurately judge
every aspect of their enterprise for what it truly is.

8.1.4.2 Importance of Honesty in Entrepreneurs

One of the most important characteristics of entrepreneurs is honesty. When entrepreneurs
are honest with their customers, employees and investors, it shows that they respect those
that they work with. It is also important that entrepreneurs remain honest with themselves.

Let’s look at how being honest would lead to great benefits for entrepreneurs.
• Honesty and customers: When entrepreneurs are honest with their customers it leads
to stronger relationships, which in turn results in business growth and a stronger
customer network.

8.1.4.3 What are Work Ethics?

Being ethical in the workplace means displaying values like honesty, integrity and respect in
all your decisions and communications. It means not displaying negative qualities like lying,
cheating and stealing.

Workplace ethics play a big role in the profitability of a company. It is as crucial to an

enterprise as high morale and teamwork. This is why most companies lay down specific
workplace ethic guidelines that must compulsorily be followed by their employees. These
guidelines are typically outlined in a company’s employee handbook.

8.1.4.4 Elements of a Strong Work Ethic

An entrepreneur must display strong work ethics, as well as hire only those individuals who
believe in and display the same level of ethical behavior in the workplace. Some elements of
a strong work ethic are:
• Professionalism: This involves everything from how you present yourself in a corporate
setting to the manner in which you treat others in the workplace.
• Respectfulness: This means remaining poised and diplomatic regardless of how stressful
or volatile a situation is.
• Dependability: This means always keeping your word, whether it’s arriving on time for a
meeting or delivering work on time.
• Dedication: This means refusing to quit until the designated work is done, and
completing the work at the highest possible level of excellence.
• Determination: This means embracing obstacles as challenges rather than letting them
stop you, and pushing ahead with purpose and resilience to get the desired results.

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• Accountability: This means taking responsibility for your actions and the consequences
of your actions, and not making excuses for your mistakes.
• Humility: This means acknowledging everyone’s efforts and had work, and sharing the
credit for accomplishments.

8.1.4.5 How to Foster a Good Work Ethic?

As an entrepreneur, it is important that you clearly define the kind of behaviour that you
expect from each and every team member in the workplace. You should make it clear that
you expect employees to display positive work ethics like:
• Honesty: All work assigned to a person should be done with complete honesty, without
any deceit or lies.
• Good attitude: All team members should be optimistic, energetic, and positive.
• Reliability: Employees should show up where they are supposed to be, when they are
supposed to be there.
• Good work habits: Employees should always be well groomed, never use inappropriate
language, conduct themselves professionally at all times and so on.
• Initiative: Doing the bare minimum is not enough. Every team member needs to be
proactive and show initiative.
• Trustworthiness: Trust is non-negotiable. If an employee cannot be trusted, it’s time to
let that employee go.
• Respect: Employees need to respect the company, the law, their work, their colleagues
and themselves.
• Integrity: Each and every team member should be completely ethical and must display
above board behaviour at all times.
• Efficiency: Efficient employees help a company grow while inefficient employees result
in a waste of time and resources.

Tips
• Don’t get angry when someone tells you the truth and you don’t like what you hear.
• Always be willing to accept responsibility for your mistakes.

8.1.5 Creativity & Innovation

What is Creativity?

Creativity means thinking outside the box. It means viewing things in new ways or from
different perspectives, and then converting these ideas into reality. Creativity involves two
parts: thinking and producing. Simply having an idea makes you imaginative, not creative.
However, having an idea and acting on it makes you creative.

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Characteristics of Highly Creative People

Some characteristics of creative people are:
• They are imaginative and playful
• They see issues from different angles
• They notice small details
• They have very little tolerance for boredom
• They detest rules and routine
• They love to daydream
• They are very curious

What is Innovation?
There are many different definitions of innovation. In simple terms, innovation means
turning an idea into a solution that adds value. It can also mean adding value by
implementing a new product, service or process, or significantly improving on an existing
product, service or process.

Characteristics of Highly Innovative People

Some characteristics of highly innovative people are:
• They embrace doing things differently
• They don’t believe in taking shortcuts
• They are not afraid to be unconventional
• They are highly proactive and persistent
• They are organized, cautious and risk-averse

Tips
• Take regular breaks from your creative work to recharge yourself and gain fresh
perspective.
• Build prototypes frequently, test them out, get feedback, and make the required
changes.

8.1.6 Time Management

Time management is the process organizing your time and deciding how to allocate your
time between different activities. Good time management is the difference between
working smart (getting more done in less time) and working hard (working for more time to
get more done).

Effective time management leads to an efficient work output, even when you are faced with
tight deadlines and high-pressure situations. On the other hand, not managing your time
effectively results in inefficient output and increases stress and anxiety.

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Benefits of Time Management

Time management can lead to huge benefits like:
• Greater productivity
• Higher efficiency
• Better professional reputation
• Reduced stress
• Higher chances for career advancement
• Greater opportunities to achieve goals

Not managing time effectively can result in undesirable consequences like:

• Missing deadlines
• Inefficient work output
• Substandard work quality
• Poor professional reputation
• Stalled career
• Increase in stress and anxiety

8.1.6.1 Traits of Effective Time Managers

Some traits of effective time managers are:
• They begin projects early
• They set daily objectives
• They modify plans if required, to achieve better results
• They are flexible and open-minded
• They inform people in advance if their help will be required
• They know how to say no
• They break tasks into steps with specific deadlines
• They continually review long term goals
• They think of alternate solutions if and when required
• They ask for help when required
• They create backup plans

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8.1.6.2 Effective Time Management Techniques

You can manage your time better by putting into practice certain time management
techniques. Some helpful tips are:
• Plan out your day as well as plan for interruptions. Give yourself at least 30 minutes to
figure out your time plan. In your plan, schedule some time for interruptions.
• Put up a “Do Not Disturb” sign when you absolutely have to complete a certain amount
of work.
• Close your mind to all distractions. Train yourself to ignore ringing phones, don’t reply
to chat messages and disconnect from social media sites.
• Delegate your work. This will not only help your work get done faster, but will also show
you the unique skills and abilities of those around you.
• Stop procrastinating. Remind yourself that procrastination typically arises due to the
fear of failure or the belief that you cannot do things as perfectly as you wish to do
them.
• Prioritize. List each task to be completed in order of its urgency or importance level.
Then focus on completing each task, one by one.
• Maintain a log of your work activities. Analyse the log to help you understand how
efficient you are, and how much time is wasted every day.
• Create time management goals to reduce time wastage.

Tips
• Always complete the most important tasks first.
• Get at least 7 – 8 hours of sleep every day.
• Start your day early.
• Don’t waste too much time on small, unimportant details.
• Set a time limit for every task that you will undertake.
• Give yourself some time to unwind between tasks.

8.1.7 Anger Management

Anger management is the process of:
1. Learning to recognize the signs that you, or someone else, is becoming angry
2. Taking the best course of action to calm down the situation in a positive way

Anger management does not mean suppressing anger.

Importance of Anger Management

Anger is a perfectly normal human emotion. In fact, when managed the right way, anger can
be considered a healthy emotion. However, if it is not kept in check, anger can make us act
inappropriately and can lead to us saying or doing things that we will likely later regret.

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Extreme anger can:

• Hurt you physically: It leads to heart disease, diabetes, a weakened immune system,
insomnia, and high blood pressure.
• Hurt you mentally: It can cloud your thinking and lead to stress, depression and mental
health issues.
• Hurt your career: It can result in alienating your colleagues, bosses, clients and lead to
the loss of respect.
• Hurt your relationships: It makes it hard for your family and friends to trust you, be
honest with you and feel comfortable around you.

This is why anger management, or managing anger appropriately, is so important.

8.1.7.1 Anger Management Strategies

Here are some strategies that can help you control your anger:

Strategy 1: Relaxation

Something as simple as breathing deeply and looking at relaxing images works wonders in
calming down angry feelings. Try this simple breathing exercise:
1. Take a deep breath from your diaphragm (don’t breathe from your chest)
2. Visualize your breath coming up from your stomach
3. Keep repeating a calming word like ‘relax’ or ‘take it easy’ (remember to keep breathing
deeply while repeating the word)
4. Picture a relaxing moment (this can be from your memory or your imagination)

Follow this relaxation technique daily, especially when you realize that you’re starting to feel
angry.

Strategy 2: Cognitive Restructuring

Cognitive restructuring means changing the manner in which you think. Anger can make you
curse, swear, exaggerate and act very dramatically. When this happens, force yourself to
replace your angry thoughts with more logical ones. For instance, instead of thinking
‘Everything is ruined’ change your mindset and tell yourself ‘It’s not the end of the world and
getting angry won’t solve this’.

Strategy 3: Problem Solving

Getting angry about a problem that you cannot control is a perfectly natural response.
Sometimes, try as you may, there may not be a solution to the difficulty you are faced with.
In such cases, stop focusing on solving the problem, and instead focus on handling and
facing the problem. Remind yourself that you will do your best to deal with the situation, but
that you will not blame yourself if you don’t get the solution you desire.

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Strategy 4: Better Communication

When you’re angry, it is very easy to jump to inaccurate conclusions. In this case, you need
to force yourself to stop reacting, and think carefully about what you want to say, before
saying it. Avoid saying the first thing that enters your head. Force yourself to listen carefully
to what the other person is saying. Then think about the conversation before responding.

Strategy 5: Changing Your Environment

If you find that your environment is the cause of your anger, try and give yourself a break
from your surroundings. Make an active decision to schedule some personal time for
yourself, especially on days that are very hectic and stressful. Having even a brief amount of
quiet or alone time is sure to help calm you down.

8.1.7.2 Tips for Anger Management

The following tips will help you keep your anger in check:
• Take some time to collect your thoughts before you speak out in anger.
• Express the reason for your anger in an assertive, but non-confrontational manner once
you have calmed down.
• Do some form of physical exercise like running or walking briskly when you feel yourself
getting angry.
• Make short breaks part of your daily routine, especially during days that are stressful.
• Focus on how to solve a problem that’s making you angry, rather than focusing on the
fact that the problem is making you angry.

8.1.8 Stress Management

We say we are ‘stressed’ when we feel overloaded and unsure of our ability to deal with the
pressures placed on us. Anything that challenges or threatens our well-being can be defined
as a stress. It is important to note that stress can be good and bad. While good stress keeps
us going, negative stress undermines our mental and physical health. This is why it is so
important to manage negative stress effectively.

Causes of Stress
Stress can be caused by internal and external factors.
Internal causes of stress
• Constant worry
• Rigid thinking
• Unrealistic expectations
• Pessimism
• Negative self-talk
• All in or all out attitude

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External causes of stress

• Major life changes
• Difficulties with relationships
• Having too much to do
• Difficulties at work or in school
• Financial difficulties
• Worrying about one’s children and/or family

8.1.8.1 Symptoms of Stress

Stress can manifest itself in numerous ways. Take a look at the cognitive, emotional, physical
and behavioural symptoms of stress.

Cognitive Symptoms Emotional Symptoms

• Memory problems • Depression
• Concentration issues • Agitation
• Lack of judgement • Irritability
• Pessimism • Loneliness
• Anxiety • Anxiety
• Constant worrying • Anger

Physical Symptoms Behavioural Symptoms

• Aches and pain • Increase or decrease in appetite
• Diarrhoea or constipation • Over sleeping or not sleeping
• Nausea enough
• Dizziness • Withdrawing socially
• Chest pain and/or rapid heartbeat • Ignoring responsibilities
• Frequent cold or flu like feelings • Consumption of alcohol or
cigarettes
• Nervous habits like nail biting and
pacing

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8.1.8.2 Tips to Manage Stress

The following tips can help you manage your stress better:
• Note down the different ways in which you can handle the various sources of your
stress.
• Remember that you cannot control everything, but you can control how you respond.
• Discuss your feelings, opinions and beliefs rather than reacting angrily, defensively or
passively.
• Practice relaxation techniques like meditation, yoga or tai chi when you start feeling
stressed.
• Devote a part of your day towards exercise.
• Eat healthy foods like fruits and vegetables. Avoid unhealthy foods especially those
containing large amounts of sugar.
• Plan your day so that you can manage your time better, with less stress.
• Say no to people and things when required.
• Schedule time to pursue your hobbies and interests.
• Ensure you get at least 7-8 hours of sleep.
• Reduce your caffeine intake.
• Increase the time spent with family and friends.

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UNIT 8.2: Digital Literacy: A Recap

Unit Objectives
At the end of this unit, you will be able to:
1. Identify the basic parts of a computer
2. Identify the basic parts of a keyboard
3. Recall basic computer terminology
4. Recall the functions of basic computer keys
5. Discuss the main applications of MS Office
6. Discuss the benefits of Microsoft Outlook
7. Discuss the different types of e-commerce
8. List the benefits of e-commerce for retailers and customers
9. Discuss how the Digital India campaign will help boost e-commerce in India
10. Describe how you will sell a product or service on an e-commerce platform

8.2.1 Computer and Internet basics

Fig.8.2.1. Parts of a Computer

Fig.8.2.2. Parts of a Keyboard

Basic Parts of a Computer

1. Central Processing Unit (CPU): The brain of the computer. It interprets and carries out
program instructions.
2. Hard Drive: A device that stores large amounts of data.
3. Monitor: The device that contains the computer screen where the information is visually
displayed.

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4. Desktop: The first screen displayed after the operating system loads.
5. Background: The image that fills the background of the desktop.
6. Mouse: A hand-held device used to point to items on the monitor.
7. Speakers: Devices that enable you to hear sound from the computer.
8. Printer: A device that converts output from a computer into printed paper documents.
9. Icon: A small picture or image that visually represents something on your computer.
10. Cursor: An arrow which indicates where you are positioned on the screen.
11. Program Menu: A list of programs on your computer that can be accessed from the Start
menu.
12. Taskbar: The horizontal bar at the bottom of the computer screen that lists applications
that are currently in use.
13. Recycle Bin: A temporary storage for deleted files.

Basic Internet Terms

• The Internet: A vast, international collection of computer networks that transfers
information.
• The World Wide Web: A system that lets you access information on the Internet.
• Website: A location on the World Wide Web (and Internet) that contains information
about a specific topic.
• Homepage: Provides information about a website and directs you to other pages on that
website.
• Link/Hyperlink: A highlighted or underlined icon, graphic, or text that takes you to
another file or object.
• Web Address/URL: The address for a website.
• Address Box: A box in the browser window where you can type in a web address.

Basic Computer Keys

• Arrow Keys: Press these keys to move your cursor.
• Space bar: Adds a space.
• Enter/Return: Moves your cursor to a new line.
• Shift: Press this key if you want to type a capital letter or the upper symbol of a key.
• Caps Lock: Press this key if you want all the letters you type to be capital letters. Press it
again to revert back to typing lowercase letters.
• Backspace: Deletes everything to the left of your cursor

Tips
• When visiting a .com address, there no need to type http://or even www. Just type the
name of the website and then press Ctrl + Enter. (Example: Type ‘apple’ and press Ctrl +
Enter to go to www.apple.com)
• Press the Ctrl key and press the + or - to increase and decrease the size of text.
• Press F5 or Ctrl + R to refresh or reload a web page.

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8.2.2 MS Office and Email

About MS Office

MS Office or Microsoft Office is a suite of computer programs developed by Microsoft.

Although meant for all users, it offers different versions that cater specifically to students,
home users and business users. All the programs are compatible with both, Windows and
Macintosh.

Most Popular Office Products

Some of the most popular and universally used MS Office applications are:
• Microsoft Word: Allows users to type text and add images to a document.
• Microsoft Excel: Allows users to enter data into a spreadsheet and create calculations
and graphs.
• Microsoft PowerPoint: Allows users to add text, pictures and media and create
slideshows and presentations.
• Microsoft Outlook: Allows users to send and receive email.
• Microsoft OneNote: Allows users to make drawings and notes with the feel of a pen on
paper.
• Microsoft Access: Allows users to store data over many tables.

Why Choose Microsoft Outlook?

A popular email management choice especially in the workplace, Microsoft Outlook also
includes an address book, notebook, web browser and calendar. Some major benefits of this
program are:
• Integrated search function: You can use keywords to search for data across all Outlook
programs.
• Enhanced security: Your email is safe from hackers, junk mail and phishing website
email.
• Email syncing: Sync your mail with your calendar, contact list, notes in One Note
and…your phone!
• Offline access to email: No Internet? No problem! Write emails offline and send them
when you’re connected again.

Tips
• Press Ctrl+R as a shortcut method to reply to email.
• Set your desktop notifications only for very important emails.
• Flag messages quickly by selecting messages and hitting the Insert key.
• Save frequently sent emails as a template to reuse again and again.
• Conveniently save important emails as files.

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8.2.3 E-Commerce
What is E-Commerce?

E-commerce is the buying or selling of goods and services, or the transmitting of money or
data, electronically on the internet. E-Commerce is the short form for “electronic
commerce.”

Examples of E-Commerce
Some examples of e-commerce are:
• Online shopping
• Online auctions
• Online ticketing
• Electronic payments
• Internet banking

Types of E-Commerce
E-commerce can be classified based on the types of participants in the transaction. The main
types of e-commerce are:
• Business to Business (B2B): Both the transacting parties are businesses.
• Business to Consumer (B2C): Businesses sell electronically to end-consumers.
• Consumer to Consumer (C2C): Consumers come together to buy, sell or trade items to
other consumers.
• Consumer-to-Business (C2B): Consumers make products or services available for
purchase to companies looking for exactly those services or products.
• Business-to-Administration (B2A): Online transactions conducted between companies
and public administration.
• Consumer-to-Administration (C2A): Online transactions conducted between individual
and public administration.

8.2.3.1 Benefits of E-Commerce

The e-commerce business provides some benefits for retailers and customers.

Benefits for retailers

• Establishes an online presence
• Reduces operational costs by removing overhead costs
• Increases brand awareness through the use of good keywords
• Increases sales by removing geographical and time constraints

Benefits for customers

• Offers a wider range of choice than any physical store
• Enables goods and services to be purchased from remote locations
• Enables consumers to perform price comparisons

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8.2.3.2 Digital India Campaign

Prime Minister Narendra Modi launched the Digital India campaign in 2015, with the
objective of offering every citizen of India access to digital services, knowledge and
information. The campaign aims to improve the country’s online infrastructure and increase
internet connectivity, thus boosting the e-commerce industry.

Currently, the majority of online transactions come from tier 2 and tier 3 cities. Once the
Digital India campaign is in place, the government will deliver services through mobile
connectivity, which will help deliver internet to remote corners of the country. This will help
the e-commerce market to enter India’s tier 4 towns and rural areas.

E-Commerce Activity

Choose a product or service that you want to sell online. Write a brief note explaining how
you will use existing e-commerce platforms, or create a new e-commerce platform, to sell
your product or service.

Tips
• Before launching your e-commerce platform, test everything.
• Pay close and personal attention to your social media.

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UNIT 8.3: Money Matters

Unit Objectives
At the end of this unit, you will be able to:
1. Discuss the importance of saving money
2. Discuss the benefits of saving money
3. Discuss the main types of bank accounts
4. Describe the process of opening a bank account
5. Differentiate between fixed and variable costs
6. Describe the main types of investment options
7. Describe the different types of insurance products
8. Describe the different types of taxes
9. Discuss the uses of online banking
10. Discuss the main types of electronic funds transfers

8.3.1 Personal Finance – Why to Save?

Importance of Saving
We all know that the future is unpredictable. You never know what will happen tomorrow,
next week or next year. That’s why saving money steadily through the years is so important.
Saving money will help improve your financial situation over time. But more importantly,
knowing that you have money stashed away for an emergency will give you peace of mind.
Saving money also opens the door to many more options and possibilities.

Benefits of Saving
Inculcating the habit of saving leads to a vast number of benefits. Saving helps you:
• Become financially independent: When you have enough money saved up to feel
secure you can start making your choices, from taking a vacation whenever you want, to
switching careers or starting your own business.
• Invest in yourself through education: Through saving, you can earn enough to pay up
for courses that will add to your professional experience and ultimately result in higher
paying jobs.
• Get out of debt: Once you have saved enough as a reserve fund, you can use your
savings to pay off debts like loans or bills that have accumulated over time.
• Be prepared for surprise expenses: Having money saved enables you to pay for
unforeseen expenses like sudden car or house repairs, without feeling financially
stressed.
• Pay for emergencies: Saving helps you deal with emergencies like sudden health issues
or emergency trips without feeling financially burdened.

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• Afford large purchases and achieve major goals: Saving diligently makes it possible to
place down payments towards major purchases and goals, like buying a home or a car.
• Retire: The money you have saved over the years will keep you comfortable when you
no longer have the income you would get from your job.

Tips
• Break your spending habit. Try not spending on one expensive item per week, and put
the money that you would have spent into your savings.
• Decide that you will not buy anything on certain days or weeks and stick to your word.

8.3.2 Types of Bank Accounts

In India, banks offer four main types of bank accounts. These are:
1. Current Accounts
2. Savings Accounts
3. Recurring Deposit Accounts
4. Fixed Deposit Accounts

Current Accounts
Current accounts offer the most liquid deposits and thus, are best suited for businessmen
and companies. As these accounts are not meant for investments and savings, there is no
imposed limit on the number or amount of transactions that can be made on any given day.
Current account holders are not paid any interest on the amounts held in their accounts.
They are charged for certain services offered on such accounts.

Saving Accounts
Savings accounts are meant to promote savings, and are therefore the number one choice
for salaried individuals, pensioners and students. While there is no restriction on the number
and amount of deposits made, there are usually restrictions on the number and amount of
withdrawals. Savings account holders are paid interest on their savings.

Recurring Deposit Accounts

Recurring Deposit accounts, also called RD accounts, are the accounts of choice for those
who want to save an amount every month, but are unable to invest a large sum at one time.
Such account holders deposit a small, fixed amount every month for a pre-determined
period (minimum 6 months). Defaulting on a monthly payment results in the account holder
being charged a penalty amount. The total amount is repaid with interest at the end of the
specified period.

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Fixed Deposit Accounts

Fixed Deposit accounts, also called FD accounts, are ideal for those who wish to deposit their
savings for a long term in return for a high rate of interest. The rate of interest offered
depends on the amount deposited and the time period, and also differs from bank to bank.
In the case of an FD, a certain amount of money is deposited by the account holder for a
fixed period of time. The money can be withdrawn when the period expires. If necessary,
the depositor can break the fixed deposit prematurely. However, this usually attracts a
penalty amount which also differs from bank to bank.

8.3.2.1 Opening a Bank Account

Opening a bank account is quite a simple process. Take a look at the steps to open an
account of your own:

Step 1: Fill in the Account Opening Form

This form requires you to provide the following information:
• Personal details (name, address, phone number, date of birth, gender, occupation,
address)
• Method of receiving your account statement (hard copy/email)
• Details of your initial deposit (cash/cheque)
• Manner of operating your account (online/mobile banking/traditional via cheque, slip
books)
• Ensure that you sign wherever required on the form.

Step 2: Affix your Photograph

Stick a recent photograph of yourself in the allotted space on the form.

Step 3: Provide your Know Your Customer (KYC) Details

KYC is a process that helps banks verify the identity and address of their customers. To open
an account, every individual need to submit certain approved documents with respect to
photo identity (ID) and address proof. Some Officially Valid Documents (OVDs) are:
• Passport
• Driving License
• Voters’ Identity Card
• PAN Card
• UIDAI (Aadhar) Card

Step 4: Submit All your Documents

Submit the completed Account Opening Form and KYC documents. Then wait until the forms
are processed and your account has been opened!

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Tips
• Select the right type of account.
• Fill in complete nomination details.
• Ask about fees.
• Understand the rules.
• Check for online banking – it’s convenient!
• Keep an eye on your bank balance.

8.3.3 Costs: Fixed vs Variable

What are Fixed and Variable Costs?

Fixed costs and variable costs together make up a company’s total cost. These are the two
types of costs that companies have to bear when producing goods and services. A fixed cost
does not change with the volume of goods or services a company produces. It always
remains the same.

A variable cost, on the other hand, increases and decreases depending on the volume of
goods and services produced. In other words, it varies with the amount produced.

Differences between Fixed and Variable Costs

Let’s take a look at some of the main differences between fixed and variable costs:

Criteria Fixed Costs Variable Costs

Meaning A cost that stays the same, A cost that changes

regardless of the output when the
produced.
Nature Time related. Volume related.
Incurred Incurred irrespective of units Incurred only when units
being produced. are produced
Unit cost Inversely proportional to the Remains the same, per
number of units produced unit.

Examples Depreciation, rent, salary, Material consumed,

insurance and tax wages, commission on
sales and packing
expenses

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Tips
• When trying to determine whether a cost is fixed or variable, simply ask the following
question: Will the particular cost change if the company stopped its production
activities? If the answer is no, then it is a fixed cost. If the answer is yes, then it is
probably a variable cost.

8.3.4 Investment, Insurance and Taxes

Investment
Investment means that money is spent today with the aim of reaping financial gains at a
future time. The main types of investment options are as follows:
• Bonds: Bonds are instruments used by public and private companies to raise large sums
of money – too large to be borrowed from a bank. These bonds are then issued in the
public market and are bought by lenders.
• Stocks: Stocks or equity are shares that are issued by companies and are bought by the
general public.
• Small Savings Schemes: Small Savings Schemes are tools meant to save money in small
amounts. Some popular schemes are the Employees Provident Fund, Sukanya Samriddhi
Scheme and National Pension Scheme.
• Mutual Funds: Mutual Funds are professionally managed financial instruments that
invest money in different securities on behalf of investors.
• Fixed Deposits: A fixed amount of money is kept aside with a financial institution for a
fixed amount of time in return for interest on the money.
• Real Estate: Loans are taken from banks to purchase real estate, which is then leased or
sold with the aim of making a profit on the appreciated property price.
• Hedge Funds: Hedge funds invest in both financial derivatives and/or publicly traded
securities.
• Private Equity: Private Equity is trading in the shares of an operating company that is
not publicly listed and whose shares are not available on the stock market.
• Venture Capital: Venture Capital involves investing substantial capital in a budding
company in return for stocks in that company.

Insurance
There are two types of insurance, Life Insurance and General Insurance.

Life Insurance Products

The main life insurance products are:
• Term Insurance: This is the simplest and cheapest form of insurance. It offers financial
protection for a specified tenure, say 15 to 20 years. In the case of your death, your
family is paid the sum assured. In the case of your surviving the term, the insurer pays
nothing.

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• Endowment Policy: This offers the dual benefit of insurance and investment. Part of the
premium is allocated towards the sum assured, while the remaining premium gets
invested in equity and debt. It pays a lump sum amount after the specified duration or
on the death of the policyholder, whichever is earlier.
• Unit-Linked Insurance Plan (ULIP): Here part of the premium is spent on the life cover,
while the remaining amount is invested in equity and debt. It helps develop a regular
saving habit.
• Money Back Life Insurance: While the policyholder is alive, periodic payments of the
partial survival benefits are made during the policy tenure. On the death of the insured,
the insurance company pays the full sum assured along with survival benefits.
• Whole Life Insurance: It offers the dual benefit of insurance and investment. It offers
insurance cover for the whole life of the person or up to 100 years whichever is earlier.

General Insurance
General Insurance deals with all insurance covering assets like animals, agricultural crops,
goods, factories, cars and so on.

General Insurance Products

The main general insurance products are:
• Motor Insurance: This can be divided into Four-Wheeler Insurance and Two-Wheeler
insurance.
• Health Insurance: The main types of health insurance are individual health insurance,
family floater health insurance, comprehensive health insurance and critical illness
insurance.
• Travel Insurance: This can be categorised into Individual Travel Policy, Family Travel
Policy, Student Travel Insurance and Senior Citizen Health Insurance.
• Home Insurance: This protects the house and its contents from risk.
• Marine Insurance: This insurance covers goods, freight and cargo against loss or damage
during transit by rail, road, sea and/or air.

Taxes
There are two types of taxes:
1. Direct Taxes
2. Indirect Taxes.

Direct Tax
Direct taxes are levied directly on an entity or a person and are non-transferrable. Some
examples of Direct Taxes are:
• Income Tax: This tax is levied on your earning in a financial year. It is applicable to both,
individuals and companies.
• Capital Gains Tax: This tax is payable whenever you receive a sizable amount of money.
It is usually of two types – short term capital gains from investments held for less than
36 months and long term capital gains from investments held for longer than 36 months.

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• Securities Transaction Tax: This tax is added to the price of a share. It is levied every
time you buy or sell shares.
• Perquisite Tax: This tax is levied is on perks that have been acquired by a company or
used by an employee.
• Corporate Tax: Corporate tax is paid by companies from the revenue they earn.

Indirect Tax
Indirect taxes are levied on goods or services. Some examples of Indirect Taxes are:
• Sales Tax: Sales Tax is levied on the sale of a product.
• Service Tax: Service Tax is added to services provided in India.
• Value Added Tax: Value Added Tax is levied at the discretion of the state government.
The tax is levied on goods sold in the state. The tax amount is decided by the state.
• Customs Duty & Octroi: Customs Duty is a charge that is applied on purchases that are
imported from another country. Octroi is levied on goods that cross state borders within
India.
• Excise Duty: Excise Duty is levied on all goods manufactured or produced in India

Tips
• Think about how quickly you need your money back and pick an investment option
accordingly.
• Ensure that you are buying the right type of insurance policy for yourself.
• Remember, not paying taxes can result in penalties ranging from fines to imprisonment.

8.3.5 Online Banking, NEFT, RTGS etc.

What is Online Banking?
Internet or online banking allows account holders to access their account from a laptop at
any location. In this way, instructions can be issued. To access an account, account holders
simply need to use their unique customer ID number and password.

Internet banking can be used to:

• Find out an account balance
• Transfer amounts from one account to another
• Arrange for the issuance of cheques
• Instruct payments to be made
• Request for a cheque book
• Request for a statement of accounts
• Make a fixed deposit

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Electronic Funds Transfers

Electronic funds transfer is a convenient way of transferring money from the comfort of
one’s own home, using integrated banking tools like internet and mobile banking.

Transferring funds via an electronic gateway is extremely convenient. With the help of
online banking, you can choose transferring funds:
• Into your accounts of the same bank.
• Into other people’s accounts of the same bank.
• Into accounts in different banks through NEFT.
• Into other bank accounts though RTGS.
• Into various accounts through IMPS.

NEFT
NEFT stands for National Electronic Funds Transfer. This money transfer system allows you
to electronically transfer funds from your respective bank accounts to any other account,
either in the same bank or belonging to any other bank. NEFT can be used by individuals,
firms and corporate organizations to transfer funds between accounts.

In order to transfer funds via NEFT, two things are required:

• A transferring bank
• A destination bank

Before you can transfer funds through NEFT, you will need to register the beneficiary who
will be receiving the funds. In order to complete this registration, you will require the
following information:
• Recipient’s name
• Recipient’s account number
• Recipient’s bank’s name
• Recipient’s bank’s IFSC code

RTGS

RTGS stands for Real Time Gross Settlement. This is a real time funds transfer system
which enables you to transfer funds from one bank to another, in real time or on a gross
basis. The transferred amount is immediately deducted from the account of one bank, and
instantly credited to the other bank’s account. The RTGS payment gateway is maintained by
the Reserve Bank of India. The transactions between banks are made electronically.

RTGS can be used by individuals, companies and firms to transfer large sums of money.
Before remitting funds through RTGS, you will need to add the beneficiary and his bank
account details via your online banking account.

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In order to complete this registration, you will require the following information:
• Name of the beneficiary
• Beneficiary’s account number
• Beneficiary’s bank address
• Bank’s IFSC code

IMPS
IMPS stands for Immediate Payment Service. This is a real-time, inter-bank, electronic funds
transfer system used to transfer money instantly within banks across India. IMPS enables
users to make instant electronic transfer payments using mobile phones through both,
Mobile Banking and SMS. It can also be used through ATMs and online banking. IMPS is
available 24 hours a day and 7 days a week. The system features a secure transfer gateway
and immediately confirms orders that have been fulfilled.

To transfer money through IMPS, you need to:

• Register for IMPS with your bank
• Receive a Mobile Money Identifier (MMID) from the bank
• Receive a MPIN from the bank

Once you have both these, you can login or make a request through SMS to transfer a
particular amount to a beneficiary.

In order for the beneficiary to receive the transferred money, he must:

• Link his mobile number with his respective account
• Receive the MMID from the bank

In order to initiate a money transfer through IMPS, you will need to enter the following
information:
• The beneficiary’s mobile number
• The beneficiary’s MMID
• The transfer amount
• Your MPIN

As soon as money has been deducted from your account and credited into the beneficiary’s
account, you will be sent a confirmation SMS with a transaction reference number, for
future reference.

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8.3.5.1 Differences between NEFT, RTGS & IMPS

Criteria NEFT RTGS IMPS

Settlement Done in batches Real-time Real-time
Full form National Electronic Real Time Gross Immediate
Fund Transfer Settlement Payment
Service
Timings on Monday 8:00 am – 6:30 pm 9:00 am – 4:30 pm 24x7
– Friday
Timings on Saturday 8:00 am – 1:00 pm 9:00 am – 1:30 pm 24x7
Minimum amount of ₹1 ₹2 lacs ₹1
money transfer limit
Maximum amount of ₹10 lacs ₹10 lacs per day ₹2 lacs
money transfer limit
Maximum charges as Up to 10,000 – ₹2.5 above 2 – 5 lacs Up to 10,000
per RBI above 10,000 – 1 lac ₹25 – ₹5
- ₹5 above 5 – 10 lacs above 10,000
above 1 – 2 lacs ₹15 ₹50 – 1 lac – ₹5
above 2 – 5 lacs ₹25 above 1 – 2
lacs – ₹15
above 5 – 10 lacs
₹25

Fig.8.3.2: Differences Between NEFT, RTGS & IMPS

Tips
• Never click on any links in any e-mail message to access your online banking website.
• You will never be asked for your credit or debit card details while using online banking.
• Change your online banking password regularly.

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UNIT 8.4: Preparing for Employment & Self-Employment

Unit Objectives
At the end of this unit, you will be able to:
1. Discuss the steps to prepare for an interview
2. Discuss the steps to create an effective Resume
3. Discuss the most frequently asked interview questions
4. Discuss how to answer the most frequently asked interview questions
5. Discuss basic workplace terminology

8.4.1 Interview Preparation: How to Prepare for an

Interview?
The success of your getting the job that you want depends largely on how well your
interview for that job goes. Therefore, before you go in for your interview, it is important
that you prepare for it with a fair amount of research and planning. Take a look at the steps
to follow in order to be well prepared for an interview:
1. Research the organization that you are having the interview with.
• Studying the company beforehand will help you be more prepared at the time of the
interview. Your knowledge of the organization will help you answer questions at the
time of the interview, and will leave you looking and feeling more confident. This is
sure to make you stand out from other, not as well informed, candidates.
• Look for background information on the company. Ty and find an overview of the
company and its industry profile.
• Visit the company website to get a good idea of what the company does. A company
website offers a wealth of important information. Read and understand the
company’s mission statement. Pay attention to the company’s products/services
and client list. Read through any press releases to get an idea of the company’s
projected growth and stability.
• Note down any questions that you have after your research has been completed.
2. Think about whether your skills and qualifications match the job requirements.
• Carefully read through and analyse the job description.
• Make a note of the knowledge, skills and abilities required to fulfil the job
requirements.
• Take a look at the organization hierarchy. Figure out where the position you are
applying for fits into this hierarchy.

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3. Go through the most typical interview questions asked, and prepare your responses.
• Remember, in most interviews a mix of resume-based, behavioural and case study
questions are asked.
• Think about the kind of answers you would like to provide to typical questions asked
in these three areas.
• Practice these answers until you can express them confidently and clearly.
4. Plan your attire for the interview.
• It is always safest to opt for formal business attire, unless expressly informed to
dress in business casual (in which case you should use your best judgement).
• Ensure that your clothes are clean and well-ironed. Pick neutral colours – nothing
too bright or flashy.
• The shoes you wear should match your clothes, and should be clean and suitable for
an interview.
• Remember, your aim is to leave everyone you meet with the impression that you are
a professional and highly efficient person.
5. Ensure that you have packed everything that you may require during the interview.
• Carry a few copies of your resume. Use a good quality paper for your resume print
outs.
• Always take along a notepad and a pen.
• Take along any information you may need to refer to, in order to fill out an
application form.
• Carry a few samples of your work, if relevant.
6. Remember the importance of non-verbal communication.
• Practice projecting confidence. Remind yourself to smile and make eye contact.
Practice giving a firm handshake.
• Keep in mind the importance of posture. Practice sitting up straight. Train yourself
to stop nervous gestures like fidgeting and foot-tapping.
• Practice keeping your reactions in check. Remember, your facial expressions provide
a good insight into your true feelings. Practice projecting a positive image.
7. Make a list of questions to end the interview with.
• Most interviews will end with the interviewer(s) asking if you have any questions.
This is your chance to show that you have done your research and are interested in
learning more about the company.
• If the interviewer does not ask you this question, you can inform him/her that you
have some queries that you would like to discuss. This is the time for you to refer to
the notes you made while studying the company.
• Some good questions to ask at this point are:
o What do you consider the most important criteria for success in this job?
o How will my performance be evaluated?
o What are the opportunities for advancement?
o What are the next steps in the hiring process?
• Remember, never ask for information that is easily available on the company
website.

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Tips
• Ask insightful and probing questions.
• When communicating, use effective forms of body language like smiling, making eye
contact, and actively listening and nodding. Don’t slouch, play with nearby items, fidget,
chew gum, or mumble.

8.4.2 Preparing an Effective Resume

A resume is a formal document that lists a candidate’s work experience, education and skills.
A good resume gives a potential employer enough information to believe the applicant is
worth interviewing. That’s why it is so important to create a résumé that is effective. Take a
look at the steps to create an effective resume:

Step 1: Write the Address Section

The Address section occupies the top of your resume. It includes information like your name,
address, phone number and e-mail address. Insert a bold line under the section to separate
it from rest of your resume.

Example:

Step 2: Add the Profile Summary Section

This part of your resume should list your overall experiences, achievements, awards,
certifications and strengths. You can make your summary as short as 2-3 bullet points or as
long as 8-10 bullet points.

Example:

Step 3: Include Your Educational Qualifications

When listing your academic records, first list your highest degree. Then add the second
highest qualification under the highest one and so on. To provide a clear and accurate
picture of your educational background, it is critical that include information on your
position, rank, percentage or CPI for every degree or certification that you have listed.

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If you have done any certifications and trainings, you can add a Trainings & Certifications
section under your Educational Qualifications section.

Example:

Step 4: List Your Technical Skills

When listing your technical skills, start with the skills that you are most confident about.
Then add the skills that you do not have as good a command over. It is perfectly acceptable
to include just one skill, if you feel that particular skill adds tremendous value to your
résumé. If you do not have any technical skills, you can omit this step.

Example:

Step 5: Insert Your Academic Project Experience

List down all the important projects that you have worked on. Include the following
information in this section:

Example:

Step 6: List Your Strengths

This is where you list all your major strengths. This section should be in the form of a
bulleted list.

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Example:

Step 7: List Your Extracurricular Activities

It is very important to show that you have diverse interests and that your life consists of
more than academics. Including your extracurricular activities can give you an added edge
over other candidates who have similar academic scores and project experiences. This
section should be in the form of a bulleted list.

Example:

Step 8: Write Your Personal Details

The last section of your résumé must include the following personal information:
• Date of birth • Gender & marital status

• Nationality • Languages known

Example:

Tips
• Keep your resume file name short, simple and informational.
• Make sure the resume is neat and free from typing errors.
• Always create your resume on plain white paper.

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8.4.3 Interview FAQs

Take a look at some of the most frequently asked interview questions, and some helpful tips
on how to answer them.

Q1. Can you tell me a little about yourself?

Tips to answer:
• Don’t provide your full employment or personal history.
• Offer 2-3 specific experiences that you feel are most valuable and relevant.
• Conclude with how those experiences have made you perfect for this specific role.
Q2. How did you hear about the position?
Tips to answer:
• Tell the interviewer how you heard about the job – whether it was through a friend
(name the friend), event or article (name them) or a job portal (say which one).
• Explain what excites you about the position and what in particular caught your eye
about this role.
Q3. What do you know about the company?
Tips to answer:
• Don’t recite the company’s About Us page.
• Show that you understand and care about the company’s goals.
• Explain why you believe in the company’s mission and values.
Q4. Why do you want this job?
Tips to answer:
• Show that you are passionate about the job.
• Identify why the role is a great fit for you.
• Explain why you love the company.
Q5. Why should we hire you?
Tips to answer:
• Prove through your words that you can not only do the work, but can definitely deliver
excellent results.
• Explain why you would be a great fit with the team and work culture.
• Explain why you should be chosen over any other candidate.
Q6. What are your greatest professional strengths?
Tips to answer:
• Be honest – share some of your real strengths, rather than give answers that you think
sound good.
• Offer examples of specific strengths that are relevant to the position you are applying
for.
• Provide examples of how you’ve demonstrated these strengths.

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Q7. What do you consider to be your weaknesses?

Tips to answer:
• The purpose of this question is to gauge your self-awareness and honesty.
• Give an example of a trait that you struggle with, but that you’re working on to improve.
Q8. What are your salary requirements?
Tips to answer:
• Do your research beforehand and find out the typical salary range for the job you are
applying for.
• Figure out where you lie on the pay scale based on your experience, education, and
skills.
• Be flexible. Tell the interviewer that you know your skills are valuable, but that you want
the job and are willing to negotiate.
Q9. What do you like to do outside of work?
Tips to answer:
• The purpose of this question is to see if you will fit in with the company culture.
• Be honest – open up and share activities and hobbies that interest and excite you.
Q10. If you were an animal, which one would you want to be?
Tips to answer:
• The purpose of this question is to see if you are able to think on your feet.
• There’s no wrong answer – but to make a great impression try to bring out your
strengths or personality traits through your answer.
Q11: What do you think we could do better or differently?
Tips to answer:
• The purpose of this question is to see if you have done your research on the company,
and to test whether you can think critically and come up with new ideas.
• Suggest new ideas. Show how your interests and expertise would help you execute
these ideas.
Q12: Do you have any questions for us?
Tips to answer:
• Do not ask questions to which the answers can be easily found on the company website
or through a quick online search.
• Ask intelligent questions that show your ability to think critically.

Tips
• Be honest and confident while answering.
• Use examples of your past experiences wherever possible to make your answers more
impactful.

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8.4.4 Work Readiness – Terms & Terminologies

Every employee should be well versed in the following terms:
• Annual leave: Paid vacation leave given by employers to employees.
• Background Check: A method used by employers to verify the accuracy of the
information provided by potential candidates.
• Benefits: A part of an employee’s compensation package.
• Breaks: Short periods of rest taken by employees during working hours.
• Compensation Package: The combination of salary and benefits that an employer
provides to his/her employees.
• Compensatory Time (Comp Time): Time off in lieu of pay.
• Contract Employee: An employee who works for one organization that sells said
employee’s service to another company, either on a project or time basis.
• Contract of Employment: When an employee is offered work in exchange for wages or
salary, and accepts the offer made by the employer, a contract of employment exists.
• Corporate Culture: The beliefs and values shared by all the members of a company, and
imparted from one generation of employees to another.
• Counter Offer/Counter Proposal: A negotiation technique used by potential candidates
to increase the amount of salary offered by a company.
• Cover Letter: A letter that accompanies a candidate’s resume. It emphasizes the
important points in the candidate’s resume and provides real examples that prove the
candidate’s ability to perform the expected job role.
• Curriculum Vitae (CV)/Resume: A summary of a candidate’s achievements, educational
work experience, skills and strengths.
• Declining Letter: A letter sent by an employee to an employer, turning down the job
offer employer to the employee.
• Deductions: Amounts subtracted from an employee’s pay and listed on the employee’s
pay slip.
• Discrimination: The act of treating one person not as favourably as another person.
• Employee: A person who works for another person in exchange for payment.
• Employee Training: A workshop or in-house training that an employee is asked to attend
by his or her superior, for the benefit of the employer.
• Employment Gaps: Periods of unemployed time between jobs.
• Fixed-Term Contract: A contract of employment which gets terminated on an agreed-
upon date.
• Follow-Up: The act of contacting a potential employer after a candidate has submitted
his or her resume.
• Freelancer/Consultant/Independent Contractor: A person who works for him or herself
for temporary jobs and projects with different employers.
• Holiday: Paid time-off from work.
• Hourly Rate: The amount of salary or wages paid for 60 minutes of work.

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• Internship: A job opportunity offered by an employer to a potential employee, called an

at the employer’s company for a fixed, limited time period.
• Interview: A conversation between a potential employee and a representative of an
order to determine if the potential employee should be hired.
• Job Application: A form which asks for a candidate’s information like the candidate’s
name, details and work experience. The purpose of a candidate submitting a job
application, is to show that candidate’s interest in working for a particular company.
• Job Offer: An offer of employment made by an employer to a potential employee.
• Job Search Agent: A program that enables candidates to search for employment
opportunities by selecting criteria listed in the program, for job vacancies. background,
made by the and pitches intern, to work employer, in address, contact
• Lay Off: A lay off occurs when an employee is temporarily let go from his or her job, due
to the employer not having any work for that employee.
• Leave: Formal permission given to an employee, by his or her employer, to take a leave
of absence from work.
• Letter of Acceptance: A letter given by an employer to an employee, confirming the
offer of employment made by the employer, as well as the conditions of the offer.
• Letter of Agreement: A letter that outlines the terms of employment.
• Letter of Recommendation: A letter written for the purpose of validating the work skills
o f a person.
• Maternity Leave: Leave taken from work by women who are pregnant, or who have just
given birth.
• Mentor: A person who is employed at a higher level than you, who offers you advice and
guides you in your career.
• Minimum wage: The minimum wage amount paid on an hourly basis.
• Notice: An announcement made by an employee or an employer, stating that the
employment contract will end on a particular date.
• Offer of Employment: An offer made by an employer to a prospective employee that
contains important information pertaining to the job being offered, like the starting
date, salary, working conditions etc.
• Open-Ended Contract: A contract of employment that continues till the employer or
terminates it.
• Overqualified: A person who is not suited for a particular job because he or she has too
m any years of work experience, or a level of education that is much higher than
required f or the job, or is currently or was previously too highly paid.
• Part-Time Worker: An employee who works for fewer hours than the standard number
of hours normally worked.
• Paternity Leave: Leave granted to a man who has recently become a father.
• Recruiters/Head-hunters/Executive Search Firms: Professionals who are paid by
employers to search for people to fill particular positions.
• Resigning/Resignations: When an employee formally informs his or her employer that
he or she is quitting his or her job.

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• Self-Employed: A person who has his or her own business and does not work in the
capacity of an employee.
• Time Sheet: A form that is submitted to an employer, by an employee, that contains the
number of hours worked every day by the employee.

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UNIT 8.5: Understanding Entrepreneurship

Unit Objectives
At the end of this unit, you will be able to:
1. Discuss the concept of entrepreneurship
2. Discuss the importance of entrepreneurship
3. Describe the characteristics of an entrepreneur
4. Describe the different types of enterprises
5. List the qualities of an effective leader
6. Discuss the benefits of effective leadership
7. List the traits of an effective team
8. Discuss the importance of listening effectively
9. Discuss how to listen effectively
10. Discuss the importance of speaking effectively
11. Discuss how to speak effectively
12. Discuss how to solve problems
13. List important problem solving traits
14. Discuss ways to assess problem solving skills
15. Discuss the importance of negotiation
16. Discuss how to negotiate
17. Discuss how to identify new business opportunities
18. Discuss how to identify business opportunities within your business
19. Understand the meaning of entrepreneur
20. Describe the different types of entrepreneurs
21. List the characteristics of entrepreneurs
22. Recall entrepreneur success stories
23. Discuss the entrepreneurial process
24. Describe the entrepreneurship ecosystem
25. Discuss the government’s role in the entrepreneurship ecosystem
26. Discuss the current entrepreneurship ecosystem in India
27. Understand the purpose of the Make in India campaign
28. Discuss the relationship between entrepreneurship and risk appetite
29. Discuss the relationship between entrepreneurship and resilience
30. Describe the characteristics of a resilient entrepreneur
31. Discuss how to deal with failure

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8.5.1 Concept Introduction

Anyone who is determined to start a business, no matter what the risk, is an entrepreneur.
Entrepreneurs run their own start-up, take responsibility for the financial risks and use
creativity, innovation and vast reserves of self-motivation to achieve success. They dream
big and are determined to do whatever it takes to turn their idea into a viable offering. The
aim of an entrepreneur is to create an enterprise. The process of creating this enterprise is
known as entrepreneurship.

8.5.1.1 Importance of Entrepreneurship

Entrepreneurship is very important for the following reasons:
1. It results in the creation of new organizations
2. It brings creativity into the marketplace
3. It leads to improved standards of living
4. It helps develop the economy of a country

8.5.1.2 Characteristics of Entrepreneurs

All successful entrepreneurs have certain characteristics in common.

They are all:

• Extremely passionate about their work
• Confident in themselves
• Disciplined and dedicated
• Motivated and driven
• Highly creative
• Visionaries
• Open-minded
• Decisive

Entrepreneurs also have a tendency to:

• Have a high-risk tolerance
• Thoroughly plan everything
• Manage their money wisely
• Make their customers their priority
• Understand their offering and their market in detail
• Ask for advice from experts when required
• Know when to cut their losses

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8.5.1.3 Examples of Famous Entrepreneurs

Some famous entrepreneurs are:
• Bill Gates (Founder of Microsoft)
• Steve Jobs (Co-founder of Apple)
• Mark Zuckerberg (Founder of Facebook)
• Pierre Omidyar (Founder of eBay)

8.5.1.4 Types of Enterprises

As an entrepreneur in India, you can own and run any of the following types of enterprises:

Sole Proprietorship
In a sole proprietorship, a single individual owns, manages and controls the enterprise. This
type of business is the easiest to form with respect to legal formalities. The business and the
owner have no separate legal existence. All profit belongs to the proprietor, as do all the
losses the liability of the entrepreneur is unlimited.

Partnership
A partnership firm is formed by two or more people. The owners of the enterprise are called
partners. A partnership deed must be signed by all the partners. The firm and its partners
have no separate legal existence. The profits are shared by the partners. With respect to
losses, the liability of the partners is unlimited. A firm has a limited life span and must be
dissolved when any one of the partners dies, retires, claims bankruptcy or goes insane.

Limited Liability Partnership (LLP)

In a Limited Liability Partnership or LLP, the partners of the firm enjoy perpetual existence as
well as the advantage of limited liability. Each partner’s liability is limited to their agreed
contribution to the LLP. The partnership and its partners have a separate legal existence.

Tips
• Learn from others’ failures.
• Be certain that this is what you want.
• Search for a problem to solve, rather than look for a problem to attach to your idea.

8.5.2 Leadership & Teamwork: Leadership and Leaders

Leadership means setting an example for others to follow. Setting a good example means
not asking someone to do something that you wouldn’t willingly want to do yourself.
Leadership is about figuring out what to do in order to win as a team, and as a company.

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Leaders believe in doing the right things. They also believe in helping others to do the right
things. An effective leader is someone who:
• Creates an inspiring vision of the future.
• Motivates and inspires his team to pursue that vision.

8.5.2.1 Leadership Qualities That All Entrepreneurs Need

Building a successful enterprise is only possible if the entrepreneur in charge possesses
excellent leadership qualities. Some critical leadership skills that every entrepreneur must
have are:
1. Pragmatism: This means having the ability to highlight all obstacles and challenges, in
order to resolve issues and reduce risks.
2. Humility: This means admitting to mistakes often and early, and being quick to take
responsibility for your actions. Mistakes should be viewed as challenges to overcome,
not opportunities to point blame.
3. Flexibility: It is critical for a good leader to be very flexible and quickly adapt to change.
It is equally critical to know when to adapt and when not to.
4. Authenticity: This means showing both, your strengths and your weaknesses. It means
being human and showing others that you are human.
5. Reinvention: This means refreshing or changing your leadership style when necessary.
To do this, it’s important to learn where your leadership gaps lie and find out what
resources are required to close them.
6. Awareness: This means taking the time to recognize how others view you. It means
understanding how your presence affects those around you.

8.5.2.2 Benefits of Effective Leadership

Effective leadership results in numerous benefits. Great leadership leads to the leader
successfully:
• Gaining the loyalty and commitment of the team members
• Motivating the team to work towards achieving the company’s goals and objectives
• Building morale and instilling confidence in the team members
• Fostering mutual understanding and team-spirit among team members
• Convincing team members about the need to change when a situation requires
adaptability

8.5.2.3 Teamwork and Teams

Teamwork occurs when the people in a workplace combine their individual skills to pursue a
common goal. Effective teams are made up of individuals who work together to achieve this
common goal. A great team is one who holds themselves accountable for the end result.

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8.5.2.4 Importance of Teamwork in Entrepreneurial Success

For an entrepreneurial leader, building an effective team is critical to the success of a
venture. An entrepreneur must ensure that the team he builds possesses certain crucial
qualities, traits and characteristics. An effective team is one which has:
1. Unity of purpose: All the team members should clearly understand and be equally
committed to the purpose, vision and goals of the team.
2. Great communication skills: Team members should have the ability to express their
concerns, ask questions and use diagrams, and charts to convey complex information.
3. The ability to collaborate: Every member should feel entitled to provide regular
feedback on new ideas.
4. Initiative: The team should consist of proactive individuals. The members should have
the enthusiasm to come up with new ideas, improve existing ideas, and conduct their
own research.
5. Visionary members: The team should have the ability to anticipate problems and act on
these potential problems before they turn into real problems.
6. Great adaptability skills: The team must believe that change is a positive force. Change
should be seen as the chance to improve and try new things.
7. Excellent organizational skills: The team should have the ability to develop standard
work processes, balance responsibilities, properly plan projects, and set in place
methods to measure progress and ROI.

Tips
• Don’t get too attached to your original idea. Allow it to evolve and change.
• Be aware of your weaknesses and build a team that will complement your shortfalls.
• Hiring the right people is not enough. You need to promote or incentivize your most
talented people to keep them motivated.
• Earn your team’s respect.

8.5.3 Communication Skills

Listening is the ability to correctly receive and understand messages during the process of
communication. Listening is critical for effective communication. Without effective listening
skills, messages can easily be misunderstood. This results in a communication breakdown
and can lead to the sender and the receiver of the message becoming frustrated or irritated.

It’s very important to note that listening is not the same as hearing. Hearing just refers to
sounds that you hear. Listening is a whole lot more than that. To listen, one requires focus. It
means not only paying attention to the story, but also focusing on how the story is relayed,
the way language and voice is used, and even how the speaker uses their body language.
The ability to listen depends on how effectively one can perceive and understand both,
verbal and non-verbal cues.

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8.5.3.1 How to Listen Effectively?

To listen effectively you should:
• Stop talking
• Stop interrupting
• Focus completely on what is being said
• Nod and use encouraging words and gestures
• Be open-minded
• Think about the speaker’s perspective
• Be very, very patient
• Pay attention to the tone that is being used
• Pay attention to the speaker’s gestures, facial expressions and eye movements
• Not try and rush the person
• Not let the speaker’s mannerisms or habits irritate or distract you

8.5.3.2 The Importance of Speaking Effectively

How successfully a message gets conveyed depends entirely on how effectively you are able
to get it through. An effective speaker is one who enunciates properly, pronounces words
correctly, chooses the right words and speaks at a pace that is easily understandable.
Besides this, the words spoken out loud need to match the gestures, tone and body
language used.

What you say, and the tone in which you say it, results in numerous perceptions being
formed. A person who speaks hesitantly may be perceived as having low self-esteem or
lacking in knowledge of the discussed topic. Those with a quiet voice may very well be
labelled as shy. And those who speak in commanding tones with high levels of clarity, are
usually considered to be extremely confident. This makes speaking a very critical
communication skill.

8.5.3.3 How to Speak Effectively?

To speak effectively you should:
• Incorporate body language in your speech like eye contact, smiling, nodding, gesturing
etc.
• Build a draft of your speech before actually making your speech.
• Ensure that all your emotions and feelings are under control.
• Pronounce your words distinctly with the correct pitch and intensity. Your speech should
be crystal clear at all times. Use a pleasant and natural tone when speaking. Your
audience should not feel like you are putting on an accent or being unnatural in any way.
• Use precise and specific words to drive your message home. Ambiguity should be
avoided at all costs.
• Ensure that your speech has a logical flow.

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• Be brief. Don’t add any unnecessary information.

• Make a conscious effort to avoid irritating mannerisms like fidgeting, twitching etc.

• Choose your words carefully and use simple words that the majority of the audience will
have no difficulty understanding.
• Use visual aids like slides or a whiteboard.
• Speak slowly so that your audience can easily understand what you’re saying. However,
be careful not to speak too slowly because this can come across as stiff, unprepared or
even condescending.
• Remember to pause at the right moments.

Tips
• If you’re finding it difficult to focus on what someone is saying, try repeating their words
in your head.
• Always maintain eye contact with the person that you are communicating with, when
speaking as well as listening. This conveys and also encourages interest in the
conversation.

8.5.4 Problem Solving & Negotiation Skills

As per The Concise Oxford Dictionary (1995), a problem is, “A doubtful or difficult matter
requiring a solution”

All problems contain two elements:

1. Goals
2. Obstacles

The aim of problem solving is to recognize the obstacles and remove them in order to
achieve the goals.

8.5.4.1 How to Solve Problems?

Solving a problem requires a level of rational thinking. Here are some logical steps to follow
when faced with an issue:
• Step 1: Identify the problem
• Step 2: Study the problem in detail
• Step 3: List all possible solutions
• Step 4: Select the best solution
• Step 5: Implement the chosen solution
• Step 6: Check that the problem has really been solved

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8.5.4.2 Important Traits for Problem Solving

Highly developed problem-solving skills are critical for both, business owners and their
employees. The following personality traits play a big role in how effectively problems are
solved:
• Being open minded
• Asking the right questions
• Being proactive
• Not panicking
• Having a positive attitude
• Focusing on the right problem

8.5.4.3 How to Assess for Problem Solving Skills?

As an entrepreneur, it would be a good idea to assess the level of problem solving skills of
potential candidates before hiring them. Some ways to assess this skill are through:
1. Application forms: Ask for proof of the candidate’s problem solving skills in the
application form.
2. Psychometric tests: Give potential candidates logical reasoning and critical thinking tests
and see how they fare.
3. Interviews: Create hypothetical problematic situations or raise ethical questions and see
how the candidates respond.
4. Technical questions: Give candidates examples of real life problems and evaluate their
thought process.

8.5.4.4 What is Negotiation?

Negotiation is a method used to settle differences. The aim of negotiation is to resolve
differences through a compromise or agreement while avoiding disputes. Without
negotiation, conflicts are likely to lead to resentment between people. Good negotiation
skills help satisfy both parties and go a long way towards developing strong relationships.

Why Negotiate?

Starting a business requires many, many negotiations. Some negotiations are small while
others are critical enough to make or break a start-up. Negotiation also plays a big role
inside the workplace. As an entrepreneur, you need to know not only know how to
negotiate yourself, but also how to train employees in the art of negotiation.

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How to Negotiate?
Take a look at some steps to help you negotiate:
• Step 1: Pre-Negotiation Preparation: Agree on where to meet to discuss the problem,
decide who all will be present and set a time limit for the discussion.
• Step 2: Discuss the problem: This involves asking questions, listening to the other side,
putting your views forward and clarifying doubts.
• Step 3: Clarify the Objective: Ensure that both parties want to solve the same problem
and reach the same goal.
• Step 4: Aim for a Win-Win Outcome: Try your best to be open minded when
negotiating. Compromise and offer substitute solutions to arrive at an outcome where
both win.
• Step 5: Clearly Define the Agreement: When an agreement has been reached, the
details of the agreement should be crystal clear to both sides, with no scope for
misunderstandings.
• Step 6: Implement the Agreed Upon Solution: Agree on a course of action to set the
solution in motion.

Tips
• Know exactly what you want before you work towards getting it
• Give more importance to listening and thinking, than speaking
• Focus on building a relationship rather than winning
• Remember that your people skills will affect the outcome
• Know when to walk away – sometimes reaching an agreement may not be possible

8.5.5 Business Opportunities Identification

“The entrepreneur always searches for change, responds to it and exploits it as an
opportunity.”

Peter Drucker

The ability to find good business opportunities is an important characteristic of an

entrepreneur.

What is an Opportunity?

The word opportunity suggests a good chance or a favourable situation to do something

offered by circumstances.

A business opportunity is typically a good/favourable change that can be used to run a

business in a given environment, at a given point of time.

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Common Questions Faced by Entrepreneurs

A critical question that all entrepreneurs face is how to go about finding the business
opportunity that is right for them.

Some common questions that entrepreneurs constantly think about are:

• Should the new enterprise introduce a new product or service based on an unmet need?
• Should the new enterprise select an existing product or service from one market and
offer it in another where it may not be available?
• Should the enterprise be based on a tried and tested formula that has worked
elsewhere?

It is therefore extremely important that entrepreneurs must learn how to identify new and
existing business opportunities and evaluate their chances of success.

When is an Idea an Opportunity?

An idea is an opportunity when:
• It creates or adds value to a customer
• It solves a significant problem, removes a pain point or meets a demand
• Has a robust market and profit margin
• Is a good fit with the founder and management team at the right time and place

Factors to Consider When Looking for Opportunities

Consider the following when looking for business opportunities:

• Economic trends
• Changes in funding
• Changing relationships between vendors, partners and suppliers
• Market trends
• Changes in political support
• Shift in target audience

Ways to Identify New Business Opportunities

• Identify Market Inefficiencies: When looking at a market, consider what inefficiencies
are present in the market. Think about ways to correct these inefficiencies.
• Remove Key Hassles: Rather than create a new product or service, you can innovatively
improve a product, service or process.
• Create Something New: Think about how you can create a new experience for
customers, based on existing business models.
• Pick a Growing Sector/Industry: Research and find out which sectors or industries are
growing and think about what opportunities you can tap in the same.
• Think About Product Differentiation: If you already have a product in mind, think about
ways to set it apart from the existing ones.

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Ways to Identify Business Opportunities within Your Business

1. SWOT Analysis
An excellent way to identify opportunities inside your business is by creating a SWOT
analysis. The acronym SWOT stands for strengths, weaknesses, opportunities, and
threats. SWOT analysis framework:

Fig.8.5.1. SWOT Analysis

Consider the following when looking for business opportunities:
By looking at yourself and your competitors using the SWOT framework, you can
uncover opportunities that you can exploit, as well as manage and eliminate threats that
could derail your success.
2. Establishing Your USP
Establish your USP in such a way that positions you differently from your competitors.
Identify the uniqueness about your product that will motivate customers to buy from
you and then promote that reason.

Opportunity Analysis

Once you have identified an opportunity, you need to analyse it. To analyse an opportunity,
you must:
• Focus on the idea
• Focus on the market of the idea
• Talk to industry leaders in the same space as the idea
• Talk to players in the same space as the idea

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Tips
• Remember, opportunities are situational.
• Look for a proven track record.
• Avoid the latest craze.
• Love your idea.

8.5.6 Entrepreneurship Support Eco-System

An entrepreneur is a person who:
• Does not work for an employee
• Runs a small enterprise
• Assumes all the risks and rewards of the enterprise, idea, good or service

Types of Entrepreneurs

There are four main types of entrepreneurs:

1. The Traditional Entrepreneur: This type of entrepreneur usually has some kind of skill –
they can be a carpenter, mechanic, cook etc. They have businesses that have been
around for numerous years like restaurants, shops and carpenters. Typically, they gain
plenty of experience in a particular industry before they begin their own business in a
similar field.
2. The Growth Potential Entrepreneur: The desire of this type of entrepreneur is to start
an enterprise that will grow, win many customers and make lots of money. Their
ultimate aim is to eventually sell their enterprise for a nice profit. Such entrepreneurs
usually have a science or technical background.
3. The Project-Oriented Entrepreneur: This type of entrepreneur generally has a
background in the Arts or psychology. Their enterprises tend to be focus on something
that they are very passionate about.
4. The Lifestyle Entrepreneur: This type of entrepreneur has usually worked as a teacher
or a secretary. They are more interested in selling something that people will enjoy,
rather than making lots of money.

Characteristics of an Entrepreneur

Successful entrepreneurs have the following characteristics:

• They are highly motivated
• They are creative and persuasive
• They are mentally prepared to handle each and every task
• They have excellent business skills – they know how to evaluate their cash flow, sales
and revenue

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• They are willing to take great risks

• They are very proactive – this means they are willing to do the work themselves, rather
than wait for someone else to do it
• They have a vision – they are able to see the big picture
• They are flexible and open-minded
• They are good at making decisions

8.5.6.1 Entrepreneur Success Stories

Dhiru Bhai Ambani

Dhirubhai Ambani began his entrepreneurial career by selling “bhajias” to pilgrims in Mount
Girnar on weekends. At 16, he moved to Yemen where he worked as a gas-station
attendant, and as a clerk in an oil company. He returned to India with Rs. 50,000 and started
a textile trading company. Reliance went on to become the first Indian company to raise
money in global markets and the first Indian company to feature in Forbes 500 list.

Dr. Karsanbhai Patel

Karsanbhai Patel made detergent powder in the backyard of his house. He sold his product
door-to door and offered a money back guarantee with every pack that was sold. He
charged Rs.3 per kg when the cheapest detergent at that time was Rs.13 per kg. Dr. Patel
eventually started Nirma which became a whole new segment in the Indian domestic
detergent market.

8.5.6.2 The Entrepreneurial Process

Let’s take a look at the stages of the entrepreneurial process.
• Stage 1: Idea Generation. The entrepreneurial process begins with an idea that has been
thought of by the entrepreneur. The idea is a problem that has the potential to be
solved.
• Stage 2: Germination or Recognition. In this stage a possible solution to the identified
problem is thought of.
• Stage 3: Preparation or Rationalization. The problem is studied further and research is
done to find out how others have tried to solve the same problem.
• Stage 4: Incubation or Fantasizing. This stage involves creative thinking for the purpose
of coming up with more ideas. Less thought is given to the problem areas.
• Stage 5: Feasibility Study: The next step is the creation of a feasibility study to determine
if the idea will make a profit and if it should be seen through.
• Stage 6: Illumination or Realization. This is when all uncertain areas suddenly become
clear. The entrepreneur feels confident that his idea has merit.
• Stage 7: Verification or Validation. In this final stage, the idea is verified to see if it works
and if it is useful.

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Take a look at the diagram below to get a better idea of this process.

Fig.8.5.2: Stages of the entrepreneurial process

8.5.6.3 What is an Entrepreneur?

The entrepreneurship support ecosystem signifies the collective and complete nature of
entrepreneurship. New companies emerge and flourish not only because of the courageous,
visionary entrepreneurs who launch them, but they thrive as they are set in an environment
or ‘ecosystem’ made of private and public participants. These players nurture and sustain
the new ventures, facilitating the entrepreneurs’ efforts. An entrepreneurship ecosystem
comprises of the following six domains:
1. Favourable Culture: This includes elements such as tolerance of risk and errors, valuable
networking and positive social standing of the entrepreneur.
2. Facilitating Policies & Leadership: This includes regulatory framework incentives and
existence of public research institutes.
3. Financing Options: Angel financing, venture capitalists and micro loans would be good
examples of this.
4. Human Capital: This refers to trained and untrained labour, entrepreneurs and
entrepreneurship training programmes, etc.
5. Conducive Markets for Products & Services: This refers to an existence or scope of
existence of a market for the product/service.
6. Institutional & Infrastructural Support: This includes legal and financing advisers,
telecommunications, digital and transportation infrastructure, and entrepreneurship
networking programmes.
These domains indicate whether there is a strong entrepreneurship support ecosystem and
what actions should the government put in place to further encourage this ecosystem.

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The six domains and their various elements have been graphically depicted.

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Fig.8.5.3. Entrepreneurship at a Glance

Every entrepreneurship support ecosystem is unique and all the elements of the ecosystem
are interdependent. Although every region’s entrepreneurship ecosystem can be broadly
described by the above features, each ecosystem is the result of the hundred elements
interacting in highly complex and particular ways.

Entrepreneurship ecosystems eventually become (largely) self-sustaining. When the six

domains are resilient enough, they are mutually beneficial. At this point, government
involvement can and should be significantly minimized. Public leaders do not need to invest
a lot to sustain the ecosystem. It is imperative that the entrepreneurship ecosystem
incentives are formulated to be self-liquidating, hence focusing on sustain ability of the
environment.

8.5.6.4 Government’s Role in the Entrepreneurship

Ecosystem
Encouraging new ventures is a major focus for policymakers. Governments across the world
are recognizing that new businesses flourish in distinctive types of supportive environments.
Policymakers should study the scenario and take into account the following points whilst
they formulate policies and regulations that enable successful entrepreneurship support
ecosystems.
• Policymakers should avoid regulations that discourage new entrants and work towards
building efficient methods for business startups. Policies and regulations which help
existing, leading firms over entrepreneurial ventures, limit competition and obstruct
growth/formation of new companies.
• Therefore, in place of developing policies that are intended to improve market failures,
policymakers should interact with entrepreneurs and understand the challenges faced
by them. The feedback is used to develop policies which encourage exploring ideas,
developing new products and increase the rates of deal flow.
• Entrepreneurial supporters ideally need to create a database that enables identifying
who the members in the ecosystem are and how they are connected. The ecosystem
database are useful tools in developing engagement strategies.
• Disruptions are inevitable in economic as well as social life. However, it’s important to
note that economic disruption gives rise to entrepreneurial opportunities. Architects of
the entrepreneurship ecosystems (entrepreneurs, mentors, policymakers and
consumers,) should anticipate these dips, thus capitalizing on the opportunities they
create.

8.5.6.5 Snapshot of the Entrepreneurship Ecosystem in

India
Entrepreneurship has earned a newfound respect in India. Many Indians, with exposure to
the world of business, who traditionally would have opted for a job, are setting up their
own ventures. Many elements of the entrepreneurship ecosystem are beginning to come

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together. For example, increase in venture capitalists, government schemes and incubators,
academia industry linkages, and emerging clusters and support to rural economy.

All these initiatives are effective but there is a need to scale up and enrich the ecosystem
further in the following ways:
1. We need to review our attitude towards failures and accept them as learning
experiences.
2. We must encourage the educated to become entrepreneurs and provide students in
schools and colleges with entrepreneurship skills.
3. Universities, research labs and the government need to play the role of enablers in the
entrepreneurship support ecosystem.
4. Policymakers need to focus on reducing the obstacles such as corruption, red tape and
bureaucracy.
5. We need to improve our legal systems and court international venture capital firms and
bring them to India.
6. We must devise policies and methods to reach the secondary and tertiary towns in India,
where people do not have access to the same resources available in the cities.
Today, there is a huge opportunity in this country to introduce innovative solutions that are
capable of scaling up, and collaborating within the ecosystem as well as enriching it.

8.5.6.6 Make in India Campaign

Every entrepreneur has certain needs. Some of their important needs are:
• To easily get loans
• To easily find investors
• To get tax exemptions
• To easily access resources and good infrastructure
• To enjoy a procedure that is free of hassles and is quick
• To be able to easily partner with other firms
The Make in India campaign, launched by Prime Minister Modi aims to satisfy all these needs
of young, aspiring entrepreneurs. Its objective is to:
• Make investment easy
• Support new ideas
• Enhance skill development
• Safeguard the ideas of entrepreneurs
• Create state-of-the-art facilities for manufacturing goods

Tips
• Research the existing market, network with other entrepreneurs, venture capitalists,
angel investors, and thoroughly review the policies in place to enable your
entrepreneurship.
• Failure is a stepping stone and not the end of the road. Review yours and your peers’
errors and correct them in your future venture.

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• Be proactive in your ecosystem. Identify the key features of your ecosystem and enrich
them to ensure self-sustainability of your entrepreneurship support ecosystem.

8.5.7 Risk Appetite & Resilience

Entrepreneurship and Risk

Entrepreneurs are inherently risk takers. They are path-makers not path-takers. Unlike a
normal, cautious person, an entrepreneur would not think twice about quitting his job (his
sole income) and taking a risk on himself and his idea.

An entrepreneur is aware that while pursuing his dreams, assumptions can be proven wrong
and unforeseen events may arise. He knows that after dealing with numerous problems,
success is still not guaranteed. Entrepreneurship is synonymous with the ability to take risks.
This ability, called risk-appetite, is an entrepreneurial trait that is partly genetic and partly
acquired.

What is Risk Appetite?

Risk appetite is defined as the extent to which a company is equipped to take risk, in order to
achieve its objectives. Essentially, it refers to the balance, struck by the company, between
possible profits and the hazards caused by changes in the environment (economic
ecosystem, policies, etc.). Taking on more risk may lead to higher rewards but have a high
probability of losses as well. However, being too conservative may go against the company as
it can miss out on good opportunities to grow and reach their objectives.

The levels of risk appetite can be broadly categorized as “low”, “medium” and “high.” The
company’s entrepreneur(s) need to assess all possible alternatives and choose the option
most likely to succeed. Companies have varying levels of risk appetites for different
objectives. The levels depend on:
• The type of industry
• Market pressures
• Company objectives

For example, a start-up with a revolutionary concept will have a very high risk appetite. The
start-up can afford short term failures before it achieves longer term success. This type of
appetite will not remain constant and will be adjusted to account for the present
circumstances of the company.

Risk Appetite Statement

Companies have to define and articulate their risk appetite in sync with decisions made
about their objectives and opportunities. The point of having a risk appetite statement is to
have a framework that clearly states the acceptance and management of risk in business. It
sets risk taking limits within the company. The risk appetite statement should convey the
following:
• The nature of risks the business faces.
• Which risks the company is comfortable taking on and which risks are unacceptable.
• How much risk to accept in all the risk categories.
• The desired trade-off between risk and reward.

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• Measures of risk and methods of examining and regulating risk exposures.

Entrepreneurship and Resilience

Entrepreneurs are characterized by a set of qualities known as resilience. These qualities

play an especially large role in the early stages of developing an enterprise. Risk resilience is
an extremely valuable characteristic as it is believed to protect entrepreneurs against the
threat of challenges and changes in the business environment.

What is Entrepreneurial Resilience?

Resilience is used to describe individuals who have the ability to overcome setbacks related
to their life and career aspirations. A resilient person is someone who is capable of easily
and quickly recovering from setbacks. For the entrepreneur, resilience is a critical trait.
Entrepreneurial resilience can be enhanced in the following ways:
• By developing a professional network of coaches and mentors
• By accepting that change is a part of life
• By viewing obstacles as something that can be overcome

Characteristics of a Resilient Entrepreneur

The characteristics required to make an entrepreneur resilient enough to go the whole way
in their business enterprise are:
• A strong internal sense of control
• Ability to diversify and expand
• Strong social connections
• Survivor attitude
• Skill to learn from setbacks
• Cash-flow conscious habits
• Ability to look at the bigger picture
• Attention to detail

Tips
• Cultivate a great network of clients, suppliers, peers, friends and family. This will not
only help you promote your business, but will also help you learn, identify new
opportunities and stay tuned to changes in the market.
• Don’t dwell on setbacks. Focus on what you need to do next to get moving again.
• While you should try, and curtail expenses, ensure that it is not at the cost of your
growth.

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8.5.8 Success & Failures

Understanding Successes and Failures in Entrepreneurship

Shyam is a famous entrepreneur, known for his success story. But what most people don’t
know, is that Shyam failed numerous times before his enterprise became a success. Read his
interview to get an idea of what entrepreneurship is really about, straight from an
entrepreneur who has both, failed and succeeded.
Interviewer: Shyam, I have heard that entrepreneurs are great risk-takers who are never
afraid of failing. Is this true?
Shyam: Ha ha, no of course it’s not true! Most people believe that entrepreneurs need to be
fearlessly enthusiastic. But the truth is, fear is a very normal and valid human reaction,
especially when you are planning to start your own business! In fact, my biggest fear was the
fear of failing. The reality is, entrepreneurs fail as much as they succeed. The trick is to not
allow the fear of failing to stop you from going ahead with your plans. Remember, failures
are lessons for future success!
Interviewer: What, according to you, is the reason that entrepreneurs fail?
Shyam: Well, there is no one single reason why entrepreneurs fail. An entrepreneur can fail
due to numerous reasons. You could fail because you have allowed your fear of failure to
defeat you. You could fail because you are unwilling to delegate (distribute) work. As the
saying goes, “You can do anything, but not everything!” You could fail because you gave up
too easily – maybe you were not persistent enough. You could fail because you were
focusing your energy on small, insignificant tasks and ignoring the tasks that were most
important. Other reasons for failing are partnering with the wrong people, not being able to
sell your product to the right customers at the right time at the right price… and many more
reasons!
Interviewer: As an entrepreneur, how do you feel failure should be looked at?
Shyam: I believe we should all look at failure as an asset, rather than as something negative.
The way I see it, if you have an idea, you should try to make it work, even if there is a chance
that you will fail. That’s because not trying is failure right there, anyway! And failure is not
the worst thing that can happen. I think having regrets because of not trying, and wondering
‘what if’ is far worse than trying and actually failing.
Interviewer: How did you feel when you failed for the first time?
Shyam: I was completely heartbroken! It was a very painful experience. But the good news
is, you do recover from the failure. And with every subsequent failure, the recovery process
gets a lot easier. That’s because you start to see each failure more as a lesson that will
eventually help you succeed, rather than as an obstacle that you cannot overcome. You will
start to realize that failure has many benefits.
Interviewer: Can you tell us about some of the benefits of failing?
Shyam: One of the benefits that I have experienced personally from failing is that the failure
made me see things in a new light. It gave me answers that I didn’t have before. Failure can
make you a lot stronger. It also helps keep your ego in control.

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Interviewer: What advice would you give entrepreneurs who are about to start their own
enterprises?

Shyam: I would tell them to do their research and ensure that their product is something
that is actually wanted by customers. I’d tell them to pick their partners and employees very
wisely and cautiously. I’d tell them that it’s very important to be aggressive – push and
market your product as aggressively as possible. I would warn them that starting an
enterprise is very expensive and that they should be prepared for a situation where they run
out of money. I would tell them to create long term goals and put a plan in action to achieve
that goal. I would tell them to build a product that is truly unique. Be very careful and ensure
that you are not copying another start-up. Lastly, I’d tell them that it’s very important that
they find the right investors.
Interviewer: That’s some really helpful advice, Shyam! I’m sure this will help all
entrepreneurs to be more prepared before they begin their journey! Thank you for all your
insight!

Tips
• Remember that nothing is impossible.
• Identify your mission and your purpose before you start.
• Plan your next steps – don’t make decisions hastily.

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UNIT 8.6: Preparing to be an Entrepreneur

Unit Objectives
At the end of this unit, you will be able to:
1. Discuss how market research is carried out
2. Describe the 4 Ps of marketing
3. Discuss the importance of idea generation
4. Recall basic business terminology
5. Discuss the need for CRM
6. Discuss the benefits of CRM
7. Discuss the need for networking
8. Discuss the benefits of networking
9. Discuss the importance of setting goals
10. Differentiate between short-term, medium-term and long-term goals
11. Discuss how to write a business plan
12. Explain the financial planning process
13. Discuss ways to manage your risk
14. Describe the procedure and formalities for applying for bank finance
15. Discuss how to manage your own enterprise
16. List important questions that every entrepreneur should ask before starting an
enterprise

8.6.1 Market Study/The 4 Ps of Marketing/Importance of an

IDEA
Understanding Market Research

Market research is the process of gathering, analysing and interpreting market information
on a product or service that is being sold in that market. It also includes information on:
• Past, present and prospective customers
• Customer characteristics and spending habits
• The location and needs of the target market
• The overall industry
• Relevant competitors

Market research involves two types of data:

• Primary information. This is research collected by yourself or by someone hired by you.
• Secondary information. This is research that already exists and is out there for you to
find and use.

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Primary research
Primary research can be of two types:
• Exploratory: This is open-ended and usually involves detailed, unstructured interviews.
• Specific: This is precise and involves structured, formal interviews. Conducting specific
Secondary research
Secondary research uses outside information. Some common secondary sources are:
• Public sources: These are usually free and have a lot of good information. Examples are
government departments, business departments of public libraries etc.
• Commercial sources: These offer valuable information but usually require a fee to be
paid. Examples are research and trade associations, banks and other financial
institutions etc.
• Educational institutions: These offer a wealth of information. Examples are colleges,
universities, technical institutes etc.

8.6.1.1 The 4 Ps of Marketing

The 4 Ps of marketing are Product, Price, Promotion and Place.

Let’s look at each of these 4 Ps in detail.

Product

A product can be tangible, like a good or intangible, like a service.

Whatever your product is, it is critical that you have a clear understanding of what you are
offering, and what its unique characteristics are, before you begin with the marketing
process.

Some questions to ask yourself are:

• What need does the customer have for the product/service?
• What needs does it satisfy?
• Are there any more features that can be added?
• Does it have any expensive and unnecessary features?
• How will customers use it?
• What should it be called?
• How is it different from similar products?
• How much will it cost to produce?
• Can it be sold at a profit?

Price

Once all the elements of Product have been established, the Price factor needs to be
considered. The Price of a Product will depend on several factors such as profit margins,
supply, demand and the marketing strategy.

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Some typical questions to ask yourself include:

• What is the value of the product/service to customers?
• Do local products/services have established price points?
• Is the customer price sensitive?
• Should discounts be offered?
• How is your price compared to that of your competitors?

Promotion

Once you are certain about your Product and your Price, the next step is to look at ways to
promote it. Some key elements of promotion are advertising, public relations, social media
marketing, email marketing, search engine marketing, video marketing and more.

Some questions to ask yourself are:

• Where should you promote your product or service?
• What is the best medium to use to reach your target audience
• When would be the best time to promote your product?
• How are your competitors promoting their products?

Place

According to most marketers, the basis of marketing is about offering the right product, at
the right price, at the right place, at the right time. For this reason, selecting the best
possible location is critical for converting prospective clients into actual clients.

Some questions to ask yourself are:

• Will your product or service be looked for in a physical store, online or both?
• What should you do to access the most appropriate distribution channels?
• Will you require a sales force?
• Where are your competitors offering their products or services?
• Should you follow in your competitors’ footsteps?
• Should you do something different from your competitors?

Importance of an IDEA
Ideas are the foundation of progress. An idea can be small or ground-breaking, easy to
accomplish or extremely complicated to implement. Whatever the case, the fact that it is an
idea gives it merit. Without ideas, nothing is possible. Most people are afraid to speak out
their ideas, out for fear of being ridiculed. However, if are an entrepreneur and want to
remain competitive and innovative, you need to bring your ideas out into the light.

Some ways to do this are by:

• Establishing a culture of brainstorming where you invite all interested parties to
contribute
• Discussing ideas out loud so that people can add their ideas, views, opinions to them

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• Being open minded and not limiting your ideas, even if the idea who have seems
ridiculous
• Not discarding ideas that you don’t work on immediately, but instead making a note of
them and shelving them so they can be revisited at a later date.

Tips
• Keep in mind that good ideas do not always have to be unique.
• Remember that timing plays a huge role in determining the success of your idea.
• Situations and circumstances will always change, so be flexible and adapt your idea
accordingly.

8.6.2 Business Entity Concepts: Basic Business

Terminology
If your aim is to start and run a business, it is crucial that you have a good understanding of
basic business terms. Every entrepreneur should be well versed in the following terms:
• Accounting: A systematic method of recording and reporting financial transactions.
• Accounts payable: Money owed by a company to its creditors.
• Accounts Receivable: The amount a company is owed by its clients.
• Assets: The value of everything a company owns and uses to conduct its business.
• Balance Sheet: A snapshot of a company’s assets, liabilities and owner’s equity at a
given moment.
• Bottom Line: The total amount a business has earned or lost at the end of a month.
• Business: An organization that operates with the aim of making a profit.
• Business to Business (B2B): A business that sells goods or services to another business.
• Business to Consumer (B2C): A business that sells goods or services directly to the end
user.
• Capital: The money a business has in its accounts, assets and investments. The two main
types of capital are debt and equity.
• Cash Flow: The overall movement of funds through a business each month, including
income and expenses.
• Cash Flow Statement: A statement showing the money that entered and exited a
business during a specific period of time.
• Contract: A formal agreement to do work for pay.
• Depreciation: The degrading value of an asset over time.
• Expense: The costs that a business incurs through its operations.
• Finance: The management and allocation of money and other assets.
• Financial Report: A comprehensive account of a business’ transactions and expenses.
• Fixed Cost: A one-time expense.

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• Income Statement (Profit and Loss Statement): Shows the profitability of a business
during a period of time.
• Liabilities: The value of what a business owes to someone else.
• Marketing: The process of promoting, selling and distributing a product or service.
• Net Income/Profit: Revenues minus expenses.
• Net Worth: The total value of a business.
• Payback Period: The amount of time it takes to recover the initial investment of a
business.
• Profit Margin: The ratio of profit, divided by revenue, displayed as a percentage.
• Return on Investment (ROI): The amount of money a business gets as return from an
investment.
• Revenue: The total amount of income before expenses are subtracted.
• Sales Prospect: A potential customer.
• Supplier: A provider of supplies to a business.
• Target Market: A specific group of customers at which a company's products and
services are aimed.
• Valuation: An estimate of the overall worth of the business.
• Variable Cost: Expenses that change in proportion to the activity of a business.
• Working Capital: Calculated as current assets minus current liabilities.

8.6.3 CRM & Networking

What is CRM?

CRM stands for Customer Relationship Management. Originally the expression Customer
Relationship Management meant managing one’s relationship with customers. However,
today it refers to IT systems and software designed to help companies manage their
relationships.

The Need for CRM

The better a company can manage its relationships with its customers, the higher the
chances of the company’s success. For any entrepreneur, the ability to successfully retain
existing customers and expand the enterprise is paramount. This is why IT systems that
focus on addressing the problems of dealing with customers on a daily basis are becoming
more and more in demand.

Customer needs change over time, and technology can make it easier to understand what
customers really want. This insight helps companies to be more responsive to the needs of
their customers. It enables them to modify their business operations when required, so that
their customers are always served in the best manner possible. Simply put, CRM helps
companies recognize the value of their clients and enables them to capitalize on improved
customer relations.

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Benefits of CRM

CRM has a number of important benefits:

• It helps improve relations with existing customers which can lead to:
o Increased sales
o Identification of customer needs
o Cross-selling of products
• It results in better marketing of one’s products or services
• It results in better marketing of one’s products or services
• It enhances customer satisfaction and retention
• It improves profitability by identifying and focusing on the most profitable customers

8.6.3.1 What is Networking?

In business, networking means leveraging your business and personal connections in order
to bring in a regular supply of new business. This marketing method is effective as well as
low cost. It is a great way to develop sales opportunities and contacts. Networking can be
based on referrals and introductions, or can take place via phone, email, and social and
business networking websites.

The Need for Networking

Networking is an essential personal skill for business people, but it is even more important
for entrepreneurs. The process of networking has its roots in relationship building.
Networking results in greater communication and a stronger presence in the entrepreneurial
ecosystem. This helps build strong relationships with other entrepreneurs.

Business networking events held across the globe play a huge role in connecting like-minded
entrepreneurs who share the same fundamental beliefs in communication, exchanging ideas
and converting ideas into realities. Such networking events also play a crucial role in
connecting entrepreneurs with potential investors. Entrepreneurs may have vastly different
experiences and backgrounds but they all have a common goal in mind – they all seek
connection, inspiration, advice, opportunities and mentors. Networking offers them a
platform to do just that.

Benefits of Networking

Networking offers numerous benefits for entrepreneurs. Some of the major benefits are:
• Getting high quality leads
• Increased business opportunities
• Good source of relevant connections
• Advice from like-minded entrepreneurs
• Gaining visibility and raising your profile
• Meeting positive and enthusiastic people

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• Increased self-confidence
• Satisfaction from helping others
• Building strong and lasting friendships

Tips
• Use social media interactions to identify needs and gather feedback.
• When networking, ask open-ended questions rather than yes/no type questions.
]

8.6.4 Business Plan: Why Set Goals?

Setting goals is important because it gives you long-term vision and short-term motivation.
Goals can be short term, medium term and long term.
Short-Term Goals
• These are specific goals for the immediate future.

Example: Repairing a machine that has failed.

Medium-Term Goals
• These goals are built on your short-term goals.
• They do not need to be as specific as your short-term goals.

Example: Arranging for a service contract to ensure that your machines don’t fail again.

Long-Term Goals

These goals require time and planning.

They usually take a year or more to achieve.

Example: Planning your expenses so you can buy new machinery

Why Create a Business Plan?

A business plan is a tool for understanding how your business is put together. It can be used
to monitor progress, foster accountable and control the fate of the business. It usually offers
a 3-5year projection and outlines the plan that the company intends to follow to grow its
revenues. A business plan is also a very important tool for getting the interest of key
employees or future investors.

A business plan typically comprises of eight elements.

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8.6.4.1 Elements of a Business Plan

Executive Summary

The executive summary follows the title page. The summary should clearly state your desires
as the business owner in a short and business like way. It is an overview of your business and
your plans. Ideally this should not be more than 1-2 pages.

Your Executive Summary should include:

• The Mission Statement: Explain what your business is all about.
Example: Nike’s Mission Statement
Nike’s mission statement is “To bring inspiration and innovation to every athlete in the
world.”
• Company Information: Provide information like when your business was formed, the
names and roles of the founders, the number of employees, your business location(s)
etc.
• Growth Highlights: Mention examples of company growth. Use graphs and charts where
possible.
• Your Products/Services: Describe the products or services provided.
• Financial Information: Provide details on current bank and investors.
• Summarize future plans: Describe where you see your business in the future.

Business Description

The second section of your business plan needs to provide a detailed review of the different
elements of your business. This will help potential investors to correctly understand your
business goal and the uniqueness of your offering.

Your Business Description should include:

• A description of the nature of your business
• The market needs that you are aiming to satisfy
• The ways in which your products and services meet these needs
• The specific consumers and organizations that you intend to serve
• Your specific competitive advantages

Market Analysis

The market analysis section usually follows the business description. The aim of this section
is to showcase your industry and market knowledge. This is also the section where you
should lay down your research findings and conclusions.

Your Market Analysis should include:

• Your industry description and outlook
• Information on your target market
• The needs and demographics of your target audience
• The size of your target market

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• The amount of market share you want to capture

• Your pricing structure
• Your competitive analysis
• Any regulatory requirements

Organization & Management

This section should come immediately after the Market Analysis. Your Organization &
Management section should include:
• Your company’s organizational structure
• Details of your company’s ownership
• Details of your management team
• Qualifications of your board of directors
• Detailed descriptions of each division/department and its function
• The salary and benefits package that you offer your people

Service or Product Line

The next section is the service or product line section. This is where you describe your
service or product, and stress on their benefits to potential and current customers. Explain in
detail why your product of choice will fulfil the needs of your target audience.

Your Service or Product Line section should include:

• A description of your product/service
• A description of your product or service’s life cycle
• A list of any copyright or patent filings
• A description of any R&D activities that you are involved in or planning

Marketing & Sales

Once the Service or Product Line section of your plan has been completed, you should start
on the description of the marketing and sales management strategy for your business.

Your Marketing section should include the following strategies:

• Market penetration strategy: This strategy focuses on selling your existing products or
services in existing markets, in order to increase your market share.
• Growth strategy: This strategy focuses on increasing the amount of market share, even
if it reduces earnings in the short-term.
• Channels of distribution strategy: These can be wholesalers, retailers, distributers and
even the internet.
• Communication strategy: These can be written strategies (e-mail, text, chat), oral
strategies (phone calls, video chats, face-to-face conversations), non-verbal strategies
(body language, facial expressions, tone of voice) and visual strategies (signs, webpages,
illustrations).

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Your Sales section should include the following information:

• A salesforce strategy: This strategy focuses on increasing the revenue of the enterprise.
• A breakdown of your sales activities: This means detailing out how you intend to sell
your products or services – will you sell it offline or online, how many units do you
intend to sell, what price do you plan to sell each unit at, etc.

Funding Request
This section is specifically for those who require funding for their venture. The Funding
Request section should include the following information:
• How much funding you currently require.
• How much funding you will require over the next five years. This will depend on your
long-term goals.
• The type of funding you want and how you plan to use it. Do you want funding that can
be used only for a specific purpose, or funding that can be used for any kind of
requirement?
• Strategic plans for the future. This will involve detailing out your long-term plans – what
these plans are and how much money you will require to put these plans in motions.
• Historical and prospective financial information. This can be done by creating and
maintaining all your financial records, right from the moment your enterprise started, to
the present day. Documents required for this are your balance sheet which contains
details of your company’s assets and liabilities, your income statement which lists your
company’s revenues, expenses and net income for the year, your tax returns (usually for
the last three years) and your cash flow budget which lists the cash that came in, the
cash that went out and states whether you had a cash deficit (negative balance) or
surplus (positive balance) at the end of each month.

Financial Planning

Before you begin building your enterprise, you need to plan your finances. Take a look at the
steps for financial planning:
• Step 1: Create a financial plan. This should include your goals, strategies and timelines
for accomplishing these goals.
• Step 2: Organize all your important financial documents. Maintain a file to hold your
investment details, bank statements, tax papers, credit card bills, insurance papers and
any other financial records.
• Step 3: Calculate your net worth. This means figure out what you own (assets like your
house, bank accounts, investments etc.), and then subtract what you owe (liabilities like
loans, pending credit card amounts etc.) the amount you are left with is your net worth.
• Step 4: Make a spending plan. This means write down in detail where your money will
come from, and where it will go.
• Step 5: Build an emergency fund. A good emergency fund contains enough money to
cover at least 6 months’ worth of expenses.
• Step 6: Set up your insurance. Insurance provides long term financial security and
protects you against risk.

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Risk Management

As an entrepreneur, it is critical that you evaluate the risks involved with the type of
enterprise that you want to start, before you begin setting up your company. Once you have
identified potential risks, you can take steps to reduce them. Some ways to manage risks
are:
• Research similar business and find out about their risks and how they were minimized.
• Evaluate current market trends and find out if similar products or services that launched
a while ago are still being well received by the public.
• Think about whether you really have the required expertise to launch your product or
service.
• Examine your finances and see if you have enough income to start your enterprise.
• Be aware of the current state of the economy, consider how the economy may change
over time, and think about how your enterprise will be affected by any of those changes.
• Create a detailed business plan.

Tips
• Ensure all the important elements are covered in your plan.
• Scrutinize the numbers thoroughly.
• Be concise and realistic.
• Be conservative in your approach and your projections.
• Use visuals like charts, graphs and images wherever possible.

8.6.5 Procedure and Formalities for Bank Finance

The Need for Bank Finance

For entrepreneurs, one of the most difficult challenges faced involves securing funds for
start-ups. With numerous funding options available, entrepreneurs need to take a close look
at which funding methodology works best for them. In India, banks are one of the largest
funders of start-ups, offering funding to thousands of start-ups every year.

8.6.5.1 What Information Should Entrepreneurs Offer

Banks for Funding?
When approaching a bank, entrepreneurs must have a clear idea of the different criteria that
banks use to screen, rate and process loan applications. Entrepreneurs must also be aware
of the importance of providing banks with accurate and correct information. It is now easier
than ever for financial institutions to track any default behaviour of loan applicants.
Entrepreneurs looking for funding from banks must provide banks with information relating
to their general credentials, financial situation and guarantees or collaterals that can be
offered.

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General Credentials
This is where you, as an entrepreneur, provide the bank with background information on
yourself. Such information includes:
• Letter(s) of Introduction: This letter should be written by a respected business person
who knows you well enough to introduce you. The aim of this letter is set across your
achievements and vouch for your character and integrity.
• Your Profile: This is basically your resume. You need to give the bank a good idea of your
educational achievements, professional training, qualifications, employment record and
achievements.
• Business Brochure: A business brochure typically provides information on company
products, clients, how long the business has been running for etc.
• Bank and Other References: If you have an account with another bank, providing those
bank references is a good idea.
• Proof of Company Ownership or Registration: In some cases, you may need to provide
the bank with proof of company ownership and registration. A list of assets and liabilities
may also be required.

Financial Situation
Banks will expect current financial information on your enterprise. The standard financial
reports you should be prepared with are:
• Balance Sheet
• Cash-Flow Statement
• Business Plan
• Profit-and-Loss Account
• Projected Sales and Revenues
• Feasibility Study

Guarantees or Collaterals
Usually banks will refuse to grant you a loan without security. You can offer assets which the
bank can seize and sell off if you do not repay the loan. Fixed assets like machinery,
equipment, vehicles etc. are also considered to be security for loans.

8.6.5.2 The Lending Criteria of Banks

Your request for funding will have a higher chance of success if you can satisfy the following
lending criteria:
• Good cash flow
• Adequate shareholders’ funds
• Adequate security
• Experience in business
• Good reputation

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The Procedure

To apply for funding the following procedure will need to be followed.

• Submit your application form and all other required documents to the bank.
• The bank will carefully assess your credit worthiness and assign ratings by analysing your
business information with respect to parameters like management, financial,
operational and industry information as well as past loan performance.
• The bank will make a decision as to whether or not you should be given funding.

Tips
• Get advice on funding options from experienced bankers.
• Be cautious and avoid borrowing more than you need, for longer than you need, at an
interest rate that is higher than you are comfortable with.

8.6.6 Enterprise Management - An Overview

To manage your enterprise effectively you need to look at many different aspects, right from
managing the day-to-day activities to figuring out how to handle a large-scale event. Let’s
take a look at some simple steps to manage your company effectively.

Step 1: Use your leadership skills and ask for advice when required.

Let’s take the example of Ramu, an entrepreneur who has recently started his own
enterprise. Ramu has good leadership skills – he is honest, communicates well, knows how
to delegate work etc. These leadership skills definitely help Ramu in the management of his
enterprise. However, sometimes Ramu comes across situations that he is unsure how to
handle. What should Ramu do in this case? One solution is for him to find a more
experienced manager who is willing to mentor him. Another solution is for Ramu to use his
networking skills so that he can connect with managers from other organizations, who can
give him advice on how to handle such situations.

Step 2: Divide your work amongst others – realize that you cannot handle
everything yourself.

Even the most skilled manager in the world will not be able to manage every single task that
an enterprise will demand of him. A smart manager needs to realize that the key to
managing his enterprise lies in his dividing all his work between those around him. This is
known as delegation. However, delegating is not enough. A manager must delegate
effectively if he wants to see results. This is important because delegating, when done
incorrectly, can result in you creating even more work for yourself. To delegate effectively,
you can start by making two lists. One list should contain the things that you know you need
to handle yourself. The second list should contain the things that you are confident can be
given to others to manage and handle.

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Besides incorrect delegation, another issue that may arise is over-delegation. This means
giving away too many of your tasks to others. The problem with this is, the more tasks you
delegate, the more time you will spend tracking and monitoring the work progress of those
you have handed the tasks to. This will leave you with very little time to finish your own
work.

Step 3: Hire the right people for the job.

Hiring the right people goes a long way towards effectively managing your enterprise. To
hire the best people suited for the job, you need to be very careful with your interview
process. You should ask potential candidates the right questions and evaluate their answers
carefully. Carrying out background checks is always a good practice. Running a credit check is
also a good idea, especially if the people you are planning to hire will be handling your
money. Create a detailed job description for each role that you want filled and ensure that
all candidates have a clear and correct understanding of the job description. You should also
have an employee manual in place, where you put down every expectation that you have
from your employees. All these actions will help ensure that the right people are approached
for running your enterprise.

Step 4: Motivate your employees and train them well.

Your enterprise can only be managed effectively if your employees are motivated to work
hard for your enterprise. Part of being motivated involves your employees believing in the
vision and mission of your enterprise and genuinely wanting to make efforts towards
pursuing the same. You can motivate your employees with recognition, bonuses and
rewards for achievements. You can also motivate them by telling them about how their
efforts have led to the company’s success. This will help them feel pride and give them a
sense of responsibility that will increase their motivation. Besides motivating your people,
your employees should be constantly trained in new practices and technologies. Remember,
training is not a one-time effort. It is a consistent effort that needs to be carried out
regularly.

Step 5: Train your people to handle your customers well.

Your employees need to be well-versed in the art of customer management. This means
they should be able to understand what their customers want, and also know how to satisfy
their needs. For them to truly understand this, they need to see how you deal effectively
with customers.

This is called leading by example. Show them how you sincerely listen to your clients and the
efforts that you put into understand their requirements. Let them listen to the type of
questions that you ask your clients so they understand which questions are appropriate.

Step 6: Market your enterprise effectively.

Also, hire a marketing agency if you feel you need help in this area. Now that you know what
is required to run your enterprise effectively, put these steps into play, and see how much
easier managing your enterprise becomes!

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Tips
• Get advice on funding options from experienced bankers.
• Be cautious and avoid borrowing more than you need, for longer than you need, at an
interest rate that is higher than you are comfortable with.

8.6.7 Considering Entrepreneurship

Questions to ask yourself before considering entrepreneurship.
1. Why am I starting a business?
2. What problem am I solving?
3. Have others attempted to solve this problem before? Did they succeed or fail?
4. Do I have a mentor1 or industry expert that I can call on?
5. Who is my ideal customer2?
6. Who are my competitors3?
7. What makes my business idea different from other business ideas?
8. What are the key features of my product or service?
9. Have I done a SWOT4 analysis?
10. What is the size of the market that will buy my product or service?
11. What would it take to build a minimum viable product5 to test the market?
12. How much money do I need to get started?
13. Will I need to get a loan?
14. How soon will my products or services be available?
15. When will I break even6 or make a profit?
16. How will those who invest in my idea make a profit?
17. How should I set up the legal structure7 of my business?
18. What taxes8 will I need to pay?
19. What kind of insurance9 will I need?
20. Have I reached out to potential customers for feedback

Tips
• It is very important to validate your business ideas before you invest significant time,
money and resources into it.
• The more questions you ask yourself, the more prepared you will be to handle to highs
and lows of starting an enterprise.

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Footnotes:
1. A mentor is a trusted and experienced person who is willing to coach and guide you.
2. A customer is someone who buys goods and/or services.
3. A competitor is a person or company that sells products and/or services similar to your
products and/or services.
4. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. To conduct a SWOT
analysis of your company, you need to list down all the strengths and weaknesses of
your company, the opportunities that are present for your company and the threats
faced by your company.
5. A minimum viable product is a product that has the fewest possible features, that can be
sold to customers, for the purpose of getting feedback from customers on the product.
6. A company is said to break even when the profits of the company are equal to the costs.
7. The legal structure could be a sole proprietorship, partnership or limited liability
partnership.
8. There are two types of taxes – direct taxes payable by a person or a company, or indirect
taxes charged on goods and/or services.
9. There are two types of insurance – life insurance and general insurance. Life insurance
overs human life while general insurance covers assets like animals, goods, cars etc.

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Notes

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