Organising — Business Studies STD 12 Commerce — Question

“Organisation is a machine of management”. Comment.

Explain how ‘Management by Exception’ in helps in controlling process.

Nakul belongs to a small village in Varanasi. Being the only literate person in his immediate family, he decides to settle in a city. So he opens a sweets shop in Chandni Chowk, Delhi as he possesses extraordinary culinary skills. Very soon he starts getting requests from his cousins in the village to engage them in some kind of job in his business. Considering it to be his moral obligation, he engages five of his cousins in his business without paying any specific attention to their individual capabilities. This leads to wastage of materials, time, effort and energy, resulting in lower productivity and poor quality of products. As a result, the profitability of his business starts falling. Soon, he realised that for the success of the business it is essential that right kind of people must be available in right number at the right time.
In the context of the above case :

1. Identify and explain the function of management that has been overlooked by Nakul.
2. Describe briefly the importance of the function of management as identified in part (1).

Distinguish between Policy and Procedure.

State any three points which highlight the importance of delegation for an organisation.

Explain any three advantages of labelling.

Anmol, the sales manager of PQR Ltd., is given the responsibility of selling 2,000 LEDs in a month. This target could be achieved if he has a sales team of 10 people. Presently, only 8 persons are working under him. He was not allowed to hire more persons by his superiors. As a result, he fails to meet the target.

1. Which principle is being violated here?
2. Explain the above principle.

Explain ‘order’ and ‘initiative’ as principles of general management.

State how planning
(I) reduces creativity
(II) leads to rigidity.

Bharat is running an ice cream parlour in a local market. Keeping in mind the changing perceptions about health among the people, one of his employee Abhiraj suggests to him that they should introduce a range a flavoured yogurt. Bharat accepts his suggestion as a result both the image and the profitability of his business increases.
In the context of the above case :

1. Identify the feature of management which is being highlighted.
2. State the related dimension of the business environment.
3. Name and explain the related principle of general management.