Nature and Significance of Management — Business Studies STD 12 Commerce — Question

There are two managers of a company, Rahul and Rohit. Rahul is saying that ‘Planning is looking ahead whereas controlling is looking back’. On the other hand, according to Rohit, ‘Planning is looking back whereas controlling is looking ahead’. Who is correct and why?

Distinguish between ‘Primary’ and ‘Secondary’ market on the basis of:

1. Sale of securities.
2. Capital formation.
3. Determination of price.
4. Location.

Despite internal sources of recruitment being economical, why do the companies not always use this source? Give any four reasons.

Define the Management. Explain the features that establish it as a social science.

State the functions performed by financial market.

Sanket, after completing his entrepreneurship course from U.S.A. returned to India and started a coffee shop ‘Fioma Coffee’ in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well.
Riya, took a feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard time for processing the order. She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, within a short period Riya was able to attract the customers.
Identify and explain any two techniques of scientific management used by Riya to solve the problem.

Radhika opens a jewellry showroom in Jaipur after completing a course in jewellry designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialised job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.
In context of the above case :

1. Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
2. Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
3. State any one effect of the violation of the principle of management by Radhika as identified in part(b) of the question.

Define ‘Planning’. State any four points of importance of planning.

State any four points which highlight the importance of principles of management.

Give the meaning of ‘Objectives’ and ‘Procedure’ as types of plans.