Business Studies 6 Marks Question

Following four functions of marketing have been highlighted in this paragraph:
i. Gathering and Analysing Market Information: It refers to the identification of consumers requirements and their expectations so that various decisions relating to the marketing of goods and services are taken successfully. (Before commencing her retail trade of wheat, Suruchi gathered various information from the market and analysed the same)
ii. Branding: It refers to the process by which special identity of the product is established. (To have a distinct identity of her product from other competitors, Suruchi named it Sharbati Healthy Food)
iii. Packing and Labelling: Packaging refers to those activities which are related to designing and production of the containers in which the products are packed. Labelling refers to the process of preparing a label. (Suruchi is doing the job of packaging and labelling)
iv. Pricing: It refers to all those decisions which are concerned with the price fixation of any product or service. (Suruchi is taking all those decisions which are related to the fixation of price of wheat)

Decentralization is an optional policy but it increases the importance of a subordinate’s role. It spreads the decision-making process to all the levels of management. It develops managerial talent and facilitates growth by providing enough opportunities for all the subordinates to show their decision-making ability. Decentralization must always be balanced with centralization in areas of major policy decisions. The major policy decisions cannot be totally decentralized as the onus of such decisions lies on the top-level management.
An organization may choose decentralization because of following reasons:
i. Develops initiative among subordinates: Decentralisation motivates lower level employees to take decisions in favor of organization regarding the problems they face. It promotes self-reliance and confidence among the subordinates and encourages them to take initiative and show their talent and skills. When employees at the lower level get the freedom to take their own decisions and to develop the solutions for the various problems they encounter, they learn to depend on their own judgments and are always ready to accept accountability of their decisions. Decentralization highlights those subordinates who have talent and potential to become dynamic leaders.
ii. Develops managerial talent for the future: When authority is decentralized, employees get a chance of using their own judgments. They learn and understand how to take decisions in crunch situations. This leads to developing their managerial skills. They get experience by completing the given tasks independently which help in the smooth functioning of an enterprise. They get a chance to prove themselves for the managerial positions. Thus, they develop as managerial talent for the future.
iii. Quick decision-making: In a way, the subordinates are independent to take their decisions, therefore, their dependence on their superiors is no longer in the picture. They take the decisions in no time if they believe that the decisions would be beneficial for the organization.
iv. Relief to top management: In the process of decentralization top-level managers are not overburdened with the responsibilities and authority. Decentralization improves managerial efficiency because managers get more time to concentrate on important matters and in strategic planning and policy making. By empowering the employees, managers get freedom from routine work and they get opportunities to explore new areas. However, initially, the managers must decentralize only those tasks which are not of strategic importance.
v. Facilitates growth: Decentralisation results in the growth and diversification of the enterprise. It provides more freedom to the subordinates which motivate them to do the work in an effective manner best suited for their department. As a result, each department doing its best which help in increasing the productivity and organization is able to make more returns which can be used for the expansion of the organization.
vi. Better control: Decentralisation provides better control because performance can be evaluated at each level and the departments can be individually held accountable for their results. It is the process of making subordinate accountable or answerable to the superior for final results. It flows top to downwards i.e. subordinate is answerable or accountable to his superior. A subordinate is fully answerable to his superior for the performance of the task assigned to him. In no way, the subordinates must believe that their decisions will not be questioned, and they will not be held accountable in case a decision backfires.

The various dimensions of business environment highlighted above are:
i. Legal Environment.
ii. Political Environment.
iii. Social Environment.
iv. Social Environment.
v. Economic Environment.
vi. Social Environment.
Since nothing is preventing the company legally, the decision is taken after taking into consideration the social feelings of the people.

Business Environment: It means sum total of all individuals, institutions and other forces that are outside the control of business enterprise but that may affect its performance.
The importance of the business environment is highlighted by the following facts:
i. First Mover Advantage: The business environment provides many opportunities for the firms to improve their performance. The firms which are able to scan these opportunities at an early stage get maximum benefit and can leave their competitors behind.
ii. Warning Signal: Environment understanding helps an enterprise to recognize qualitative information in advance, which can be used to prepare it for facing likely challenges.
iii. Tapping Useful Resources: Business requires many resources like raw materials, tools, types of equipment, finance, labour etc. for performing business activities. These resources are known as inputs. The business environment provides all these inputs to the business firms for carrying out their activities and also expects something in return.
iv. Coping with Rapid Changes: The business environment is very dynamic. One can see changes like new technologies, fragmented markets, more demanding customers, heavy global competition and so on. Thus, in order to efficiently cope with these changes, managers must understand the environment and should adopt appropriate courses of action at the right time. It helps management become more sensitive to the ever-changing needs of customers. As a result, they are able to respond to such changes effectively.

No, I do not agree with this statement. Proper training is required to the workers because of following reasons:
i. Addressing Weaknesses: Most employees have some weaknesses in their workplace skills. A training program allows you to strengthen those skills that each employee needs to improve.
ii. Systematic learning: Training is a systematic learning which improves knowledge and skills of employees. It helps in reducing the wastage of efforts and money.
iii. Higher profits: Training helps in increasing the efficiency and productivity of the workers which lead to high quality products and higher profits.
iv. More efficient: Training makes the employee more efficient and more technical. They can handle any machine easily. Thus, less prone to accidents.
v. Increases Morale of employees: Training increases the satisfaction and morale of employees.
vi. Increased job satisfaction and morale among employees.
vii. Increases capacity to adopt new technologies and methods.
viii. Increases innovation in strategies and products.

Staffing is referred as both line and a staff activity. Steps involved in the staffing process are:
Manpower Planning: The organization estimates the total manpower requirement by considering all the departments of the organization. It is not only about the number of people but also the type of people. Three steps are involved in manpower planning; a) Workload analysis, b) Workforce analysis and c) Comparing both to find out requirement.
Recruitment: Recruitment refers to the process of inducing people to apply for the job. The requirements can be fulfilled from inside the organisation by promotions and transfers. To recruit people from outside the organisations contact various placement consultants or advertise in the newspaper.
Selection: Selection refers to selecting the most suitable candidate to fill the vacant job position. It involves test, interviews,etc. Selected candidates are less than the number of rejected candidates, that's why this method is also called a negative process.
Placement and Orientation: Placement refers to occupying of the post for which he is selected. Orientation refers to the introduction of new employee to the existing employees.
Induction: it is concerned with the process of introduction of a new employee to the organization.
Training and development: To improve the competency of employees and to motivate them. It is more accurately considered as a process of skill formation and behavioural change.
Performance appraisal: Promotion and Compensation are given on the basis of performance appraisal.