M. M: 80 Mid Term Answer Key ( ) Business Studies (Set -A) Class: XII

Transcription

1 M. M: 80 Mid Term Answer Key (204-5) Business Studies (Set -A) Class: XII In an organization, employees are happy and satisfied, there is no chaos and the effect is noticeable. Which characteristic of management is highlighted by this statement? Ans. Mgt. is intangible 2 Business environment includes both specific and general forces. List any four specific forces. Ans. Customers, competitors, suppliers, investors. If planning involves working out details for the future, why does it not ensure success? Ans. does not guarantee success rely on previously tried & tested successful plans. 4 Define the term Marketing Mix. Ans.is defined as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market. 5 Organising stimulates creativity amongst the managers. Name the relevant point highlighted with respect to importance of organizing. Ans. Development of personnel Which test measures the existing skills of an individual? Ans. Trade test 7 Define the term Single use plans. Ans. Which are relevant for a specific period of time & are prepared again for a new situation or period. 8 Why is staffing function considered to be the key to other managerial functions? Ans. B coz it deals with human resources, which is the most valuable resource of any orgz. If right person is placed at the right job for higher performance. 9 Explain the essential elements of delegation. Ans. (i) Authority right of an individual to command his subordinates & to take action within the scope of his position. flows from top to bottom. (ii) Responsibility obligation of a subordinate to properly perform the assigned duty flows upwards. (iii) Accountability being answerable for the final outcome - flows upwards. 0 Discuss the impact on business organization due to changes in legal environment. Ans. Legal environment includes various legislations passed by the govt legislative orders issued by govt authorities, court judgments & decisions taken by various commissions and agencies centre or state levels. () It is imperative for the mgt to obey the laws of the land. Therefore, adequate knowledge of these rules and regulations framed by the govt is a pre requisite for better business performance. () Non compliance of laws can land the bs. enterprise into problems. Eg Companies Act 95; Factories Act 948; Trade Union Act 92, etc. () XYZ Power Ltd. Set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and risks. The demand for lanterns was increasing day by day, so the company decided to increase production to generate higher sales. For this, they decided to employ people from nearby villages as very few job opportunities were available in that area. The company also decided to open schools and crèches for the children of its employees. (i) (ii) Identify and explain the objectives of management discussed above. State any two values which the company wanted to communicate to the society. Ans. The objectives of management are: a. Organisational objectives These refer to the utilization of human and material resources considering the interest of all stakeholders. (Expl. Of growth and survival is also correct) (0.5 for naming & 0.5 for expl.) b. Social objectives These refer to the creation of benefit for various constituents of the society. (0.5 for naming & 0.5 for expl.)

2 Values which the company wanted to communicate to the society are: a. Providing employment opportunities b. Dev of backward regions c. Providing basic amenities to employees d. Concern for the environment (any 2) (0.5 each) 2 Name and explain the technique of scientific management which is the strongest motivator for a worker to reach standard performance. Ans. Differential Piece rate system to differentiate b/w efficient & inefficient workers different wages for those who perform above standard & for those who perform below standard. e.g ( naming, for exp. & for eg) Differentiate between Taylor s principles of scientific management and Fayol s principles of management on any four basis. Ans. ( each) S.No. Basis Fayol Taylor i Perspective Top level of mgt Shop floor level of a factory ii Unity of command Staunch proponent Did not feel it that imp as under functional foremanship a worker received orders from eight specialists iii Applicability Applicable universally Applicable to specialized situations iv Basis of formation Personal experience Observations and experiments 4 Explain the steps in the process of Organizing. 4 4 Ans. a. Identification & division of work to identify & divide the work in accordance with previously determined plans work is divided to avoid duplication & to share the burden of work. b.departmentalisation activities similar in nature are grouped together to facilitate specialization group on the basis of territory or product. c.assignment of duties to allocate work to various employees form departments & make an individual incharge allocate jobs to the individual on the basis of skills & competencies. d.establishing reporting relationships merely allocating work is not enough each person shld know from whom to take orders & be accountable to whom this will help in coordination among depts.. (0.5 for heading & 0.5 for expl.) 5 (i) Give one violating effect of the principle of Remuneration of employees. (ii) Which principle of management envisages that each group of activities having the same objectives must have one head and one plan? Explain the principle with a suitable example. Ans. (i) one violating effect of remuneration increase in the turnover of employees ; dissatisfaction & demotivation of employees. (any ) () (ii)unity of direction- all units in an orgz. Shld. Be moving towards the same objectives through coordinated efforts ensures unity of action & cood. each division shld. Have its incharge example ( for naming & 2 for expl.) A company is manufacturing paper plates and bowls. It produces,00,000 plates and bowls each day. Due to local festival, it got an urgent order of extra 50,000 plates and bowls. Advise the sources of external recruitment (any three) which can be adopted by the company to fulfill its order. Can the company rely on internal sources of recruitment also? Suggest. Ans. Sources of external recruitment i. Direct recruitment a notice is placed on the notice board of the enterprise specifying the jobs available. ii. Casual Callers a database of applicants is kept in the offices; a list of such job seekers is prepared & screened to fill the vacancies when they arise. + 4

3 iii. Recommendation of employees friends & relatives of present employees ; background sufficiently known iv. Labour contractors maintain close contacts with labourers & provide the required no. of unskilled workers at short notice. (any three) ( x ) Yes, the company rely on internal sources of recruitment also as existing workers are well informed about the process of production; no wastage of resources. () 7 (i) Explain the following features of Planning: a. Planning is a primary function. b. Planning is futuristic (ii) Distinguish between policy and procedure as types of plans. Ans.(i) a. Planning is called primary function because it lays down the base for other managerial functions. b.it is futuristic as it involves looking ahead & preparing for the future; to meet future events effectively to the best advantage of an orgz. (ii) Basis Policy Procedure Meaning A guide to decision making Are routine steps on how to carry out activities. Derived from Derived from objectives Framed within the settings provided by the policies. Scope Lays down the broad area of action Are specific to a situation. 8 A company is manufacturing garments. The manager wants to increase profit by - Purchasing new high speed machines, or - Increasing the sale price, or - Using waste material in manufacturing stuff toys. He decided that using waste material to increase the profit is the best solution for him. (i) Identify the concept of management involved. (ii) Mention the steps involved in the above process by quoting the lines from (iii) the question. To complete the process of the concept identified in (i), what further steps does the manager have to take? Ans.i. concept involved is Planning. () ii. the steps involved in the above process by quoting the lines from the question are: a. Establishing objectives wants to increase the profit. b. Identifying alternative courses of action: - Purchasing new high speed machines, or - Increasing the sale price, or - Using waste material in manufacturing stuff toys. c. Selecting the best alternative - using waste material to increase the profit is the best solution for him. ( x = ) iii. The manager is further required to take the following steps: a. Formulating & implementing the plan b. Follow up action. ( = ) 9 Do you think management has the characteristics of a full fledged profession? Explain. Ans. No, management does not have the characteristics of a full fledged profession (0.5) Profession requires special skill & training in a specific field. Features are: i. Well defined body of knowledge () ii. Restricted entry () iii. Professional association () iv. Ethical code of conduct () v. Service motive (0.5) The above pts signify that mgt does not have the characteristics of a full fledged profession. 20 The policy of liberalization, privatization and globalization of the government has made a significant impact on the working of enterprises in business and industry

4 Explain how by giving five points? Ans. 5 pts to depict changes are : a. Increasing compt. Due to changes in licensing policy & entry of foreign firms ; b. More demanding customers as well informed & wider choice ; c. Rapidly changing tech. ; d. Necessity for change e. Need for developing human resource f. Market orientation g. Loss of budgetary support to the public sector 2 (i) Explain any three Sales Promotion techniques. (ii) A product is a bundle of utilities. Comment. Ans. (i) a. Rebate- Offering products at special prices to clear inventory; e.g. to sell a particular brand of car at a discount of Rs.0,000 for a limited period. b. Product Combination - Offering another product as a gift along with the purchase of a product; ½ kg pack of rice free with the purchase of a bag of Atta. c. Instant Draws and Assigned gift e.g. scratch a card & instantly win a refrigerator, car, T- shirt with the purchase of a TV. ( each) () (ii) Product is a bundle of utilities provides satisfaction to customers of certain need types of benefit (i) functional benefit; (ii) psychological benefit; & (iii) social benefit. e.g. purchase of a motorcycle provides functional utility of transportation, but satisfies the need for prestige & esteem & social benefit by acceptance from a group. () Define the term Public Relations. Explain its role in marketing. Ans. Public relations a strategic mgt. function that add value to an organization by helping it to manage its reputation. () Role i. Image Building ii. Helps in winning loyalty of the public iii. Helps in promoting new products 22 Differentiate between Functional structure and Divisional structure on the basis of formation, specialization, responsibility, managerial development, cost and coordination. Define Functional structure. Explain any five advantages of functional structure. Ans. Basis functional structure divisional structure (i) Formation Formation is based on functions Formation is based on product lines & is supported by functions (ii) Specialization Functional Specialization Product Specialization (iii) Responsibility Difficult to fix on a Easy to fix resp. for performance. department (iv) Managerial dev. Difficult as each functional manager has to report to the top mgt. Easier, autonomy as well as the chance to perform multiple functions helps in managerial dev. (v) Cost Functions are not duplicated, so economical. Duplication of resources in various depts., hence costly. (vi) Coordination Difficult for a multi product company. Easy, because all functions related to a particular are integrated in one dept. Functional Structure Grouping of jobs of similar nature according to their functions. () five advantages : (i) leads to occupational specialization since emphasis is placed on specific

5 functions; employees perform similar tasks within a dept.& improve performance (i) Promotes control & coordination within a department b coz of similarity in the tasks being performed (ii) Helps increasing managerial & operational efficiency & results in increased profit. (iii) Leads to minimal duplication of effort which results in economies of scale & this lowers cost (iv) Makes training of employees easier as focus is on limited range of skills. (v) Ensures that different functions get due attention. ( each) 2 Though advertising is one of the most frequently used medium of promotion of goods and services, yet it attracts a lot of objections. Explain any four such objections. Physical distribution includes some components for physically moving the goods from manufacturers to the customers. Explain these components. Ans. Four such objections are :- a. Adds to cost b. Undermines social values c. Confuses the buyers d. Encourages sale of inferior products e. Some ads are in bad taste (any 4) (0.5 for heading & for expl.) Components of Physical dis. (i) Order Processing (.5) (ii) Transportation () (iii) Warehousing () (iv) Inventory Control (2.5) 24 Explain the following methods of training: (i) Vestibule training (ii) Apprenticeship Programmes (iii) Internship training Explain any three benefits of training to the organization and to the employee. Ans..(i) Vestibule learn their jobs on the equipment they will be using training is conducted away from the shop floor Actual work env. Created & employees use same materials, files to handle sophisticated machines (ii) Apprenticeship puts the trainee under the guidance of a master worker eg plumbers ; spend considerable time working with an experienced guide. (iii) Internship joint programme of training in which educational institutions & business firms cooperate ; work in factory /office to gain practical skills. (2 each) Benefit of training to the organization.. (i)training is a Systematic learning always better than hit & trial methods. (ii) It enhances employee productivity both in terms of quality & quantity. (iii) equips the future mgr who can take over in the case of emergency. (iv)increases employee morale & reduces absenteeism (any ) Benefit of training to the employee i.improved skills & knowledge due to training - better career ii. help to earn more iii. more efficient to handle machines iv. increases employee morale & satisfaction (any )

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