KVS RAIPUR REGION
Study Materials (MODULE) for Low Scorer Students
Subject: Business Studies – XII
Subject Co-ordinator: Sh. V. Kalyanraman, Principal KV MahasamundS.N. / Name of the Teacher’s / Designation / Topics / KV
01 / Sh. G. Shrivastava / PGT / Marketing Management, Consumer Protection / Dongargarh
02 / Sh. R. K. Thakur / Financial Management and Financial Market / Raipur No. 02
03 / Smt. Anita Darfade / Directing and Controlling / Raipur No. 01
04 / Ms. Sarita Devi / Organizing and Staffing / Raipur No. 01
05 / Sh. V Jaisawal / Management & Business Environment, Planning / Durg
06 / Sh. Deepak Gupta / Nature & Significance of Management, Principles of Management / Mahasamund
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Points to be remembered
DO IT
- Do the work neat and clean.
- Don’t draw the margin line, just fold the answer sheet from both the edges (left and right).
- Put the answer number clearly on the middle of the page and highlight it by underlining.
- Solve all the parts of the question together.
- Make strategy/plan to solve the question, to avoid vesting of time for making wrong answer.
DON’T DO IT
- Spending time on a particular question more than its requisite time
- Cramming to learn journal entries, posting to ledger etc.
- Ignoring about writing of heading, conclusion etc.
- Solving some part of one question at the another place
- Request to examiner for giving pass mark
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NATURE&SIGNIFICANCEOFMANAGEMENT and
PRINCIPLESOFMANAGEMENT
1. Mohan, a manager, does not distribute the work amongst his subordinates, either
according to capability or proportionately. Which principle of management is being
overlooked and why ?(2007---5—2)
2. Write a short note on ‘Management as a Discipline’.(2007---6---3)
3. Explain in brief the objective of management.(2007---11---4)
4. Briefly explain the techniques of Taylor’s Scientific Management.(2007---16---5)
5. List any two personal objective of management.(2009---1----1)
6. Give any one reason why principles of management are not rigid prescriptions. (2009—2---1)
7. Hero Ltd. target is to produce 10,000 shirts per month at a cost of Rs. 150 per shirt.The Production Manager could achieve this target at a cost of Rs.160 per shirt.Do you think the Production Manager is ‘effective’? Give reason in support of your answer. (2009---3---1)
8. State the objective of ‘Motion Study’.(2009---4---1)
9. ‘Art is concerned with personal application of knowledge.’In the light of this statement compare all the features of art with management and prove that it is an art. (2009---21---5)
10. (i) Name and explain the principal of management in which workers should be encouraged to develop and carry out their plans for improvement in the organization.
(ii) Name and explain the technique of scientific management which helps in enimilating the unnecessary diversity of product s and thus results in saving cost. (2009---22---5)
11. Your grandfather has retired from an organization in which he is responsible for implementing the plans developed by the top management. At which level of management was he working? State one more function performed at this level. (2011---1---1)
12. List any two social objective of management.(2011---2---1)
13. State any one reason why ‘Principal of Management’ are important.(2011---3---1)
14. Give the meaning of ‘Mental Revolution’ as suggested by F.W.Taylor.(2011---4---1)
15. ’Management is a Profession like medical or legal Profession .‘ Do you agree with this statement ? Give any five reasons in support of your answer. (2011---21---5)
16. Expain Fayol’s principles of ‘Equity’ and ‘Order’ with examples.(2011---22---5)
17. Identify the nature of management when it is practiced as personal application of existing knowledge to achieve desired results. (2012---3---1)
18. Name the level of management at which the management are responsible for implementing and controlling the plans and strategies of the organization. (2012---4---1)
19. Explain how principles of management :
(i)help in optimum utilization of resources and effective administration, and
(ii) help the managers in meeting changing environment requirements.(2012---11---3)
20. Explain the technique of scientific management which is the strongest motivator for a worker to reach standard performance. (2012---16---4)
21. Explain how management ‘increase efficiency’ and ‘helps in the development of society’.
(2012---21---5)
22. Identify the nature of management when it is said to be a systematized body of knowledge that explain certain general truths. (2012---3---1)
23. At which level of management the managers are responsible for the welfare and survival of the organization. (2012---4---1)
24. Explain how principles of management:
(i) provide useful insight into reality and
(ii) helpful in thoughtful decision making.(2012---11---3)
25. Explain the technique of scientific management that is the extension of ‘Principal of division of work and specialisation’. (2012---16---4)
26. What is meant by ‘Co-Ordination’? How it ‘integrates group efforts’ and ‘ensures unity of action’ ? Explain. (2012---21---5)
27. Identify the nature of management when a manager applies the existing theortical knowledge in his own unique manner. (2012---3---1)
28. At which level of management are the managers responsible for maintaining the quality of output and safety standards ? (2012---4---1)
29. Explain the technique of scientific management which separates the planning and execution work.(2012---16---4)
30. What is meant by ‘Co-Ordination’ ? Explain any two points of its importance in management.(2012---21---5)
Solution:
1.Work Division,Because the work should be divided into small tasks to the competent persons which leads to specialization.Specialisation is the most efficient way to use human effort.
2.’Management as a Discipline’ means it is based on systematic body of knowledge .It has well defined principles based on variety of business situation.
3. (i)Organisational Objective:
(a)Survival (b)Profit (c)Growth
(ii)Social Objective : To follow the obligation towards various stakeholders of society.
To use environment friendly method.
(iii) Personal Objective: To satisfy the diverse needs of various employees
To provide good remuneration
To provide good working condition
4.Techniques of Scientific Management (Any five)
(i)Functional Foremanship
To absorb the benefit of specialization, work should be divided into small jobs. Firstly there should be two departments Planning Departments and Production Department and there should be four clerks under each department for efficiency.
(ii)Standardisation : Standard should be fixed for each of the activity performed in the organization.Standard should be fixed for process,raw material,time taken,product,equipment used,methods or working conditions.These standard are the benchmarks which should be adopted during production.It will result in cost reduction and better quality.
(iii)Simplification of Work: Simplification aims at eliminating unnecessary varieties,sizes and dimensions. It will result in saving of cost,labour,machine,stock and tools.
(iv)Method Study : To find the best way to do a job ,right from procurement of raw material and till the final product is delivered to customer.It will result in minimizing the cost and improvement in quality.
(v)Time Study : Time study determines the standard time for a particular job.After several readings a standard time is fixed for each activity.It will reduce the idle time.
(vi) Fatigue Study : It determines that a worker feels tired physically and mentally after continue working.The rest intervals and work rotation will help one to regain energy and it will result in increased productivity.
(vi) Differential Piece Wage System : According to this system Wages should be given on production basis. A high rate should be used to pay efficient worker and low rate should be used to pay inefficient worker.A worker is considered efficient when it achieve the target in standard time.
5. Any two
(i) Providing adequate remuneration (ii)Good working condition (iii)Retirement benefits (iv)Stability in service (v)Education and health facility
6. Because the subject matter of management is human behavior which does not constant in all circumstances.
7. Yes, the production manage is effective because he has completed the work in given time.
8. The main objective of motion study is to eliminate the unnecessary activities from a particular process. Then completion of process will take less time and it will result in increased productivity.
9. ‘Art is concerned with personal application of knowledge.’
The above statement is true because knowledge can be acquired through study,observation and experience and on the basis of such knowledge a person settles the various problems by his own intelligence.Management is an art because of the following reasons :
(i) Existence of theoretical knowledge: Art requires the existence of certain theoretical knowledge on the basis of which experts in various areas have derived some principles. In the same way there is a lot of literature in the field of management thus there is existence of theortical knowledge.
(ii)Personalised application : Art is a personalized concept. Because the use of basic knowledge to achieve targets varies from person to person. The various experts will always differ in demonstrating and using their skill. In the same way in field of management a manager applies various principles and scientific techniques to solve the problem in his unique manner.
(iii) Based on practice and creativity: Art requires the creativity and practice. On the basis of practice an expert improves his performance. In the same way practice makes a manager to perform well. If he is involved in critical situations he will develop his own theory to settle the problem. So we can say that management is an art.
10.(i) Initiative : It is the principle of management in which workers are encouraged to develop and carry out their plans for improvement in the organization. According to this principle the manager should create such an environment in the organization that the employees get motivated to take first step to execute the plan. Their ideas and suggestions should be welcomed and suitably rewarded if they result in reduction of cost and improve the performance of organization.
(ii) Simplification : According to this technique of scientific management the unnecessary design,sizes and varieties of product are eliminated . Because it will result in cost reduction due to less equipments,less inventory, less labour. The management can concentrate on the remaining activities.
11. He is working at middle level of management. He has to interpret the policy of top management to lower level. He has to look after of his respective department. He has to assign duties and responsibilities to his subordinates.
12.The two social objective of management are :
(i) To fulfill the obligation towards various stakeholders.
(ii) To use environment friendly methods and techniques.
(iii) To provide good quality product and appropriate price.
13. Principles of management are important to train the manager and to guide them to take decision.
14. The word ‘Mental Revolution’ means to chage the attitude of employer and employees both. Both should realize that each one is important. Management and workers should transform their thinkings. They should know that their interest is favourable to each other. The management should share the gains of organization. At the same time the workers should also try to work hard for the good of the organization.
15. ’Management is a Profession like medical or legal Profession .‘
To answer it we should examine the salient features of a profession and see whether the management satisfies them.
(i)Well defined body of knowledge : All profession are based on a well-defined body of knowledge. In the same way management also has a well defined body of knowledge. It has various principles for different business situations.
(ii) Restricted Entry: The entry to a profession is restricted because a person has to acquire a special knowledge and degree in a particular field. But unlike professions such as medicine and law which requires a special degree there is no requirement of such special education for becoming a manager. But knowledge and training is desirable qualification for a manager.
(iii)Professional Association : All profession are affiliated to a professional association which regulates entry, grants certificate of practice and enforce a code of conduct. To become a lawyer, a chartered accountant, a doctor they have to become a member of a professional association. There are several association of practicing manager in India, like AIMA. But there is no compulsion for manager to be a member of such professional association.
(iv)Ethical code of conduct : All professional are bound by a code of conduct imposed by their profession association. This code of conduct guides the behavior of its members. But in field of management there is no requirement to be a member of a professional association so there is less code of conduct.
(v)ServiceMotive : The basic motive of a profession is to service their client’s interest by rendering valuable personal service.In the same way the basic purpose of management is to help the organization to achieve the goal.
16. Equity: According to this principle there should be equality in the behavior of manager towards all employees. Manager should send a message that everyone is equal in the eyes of management. There should be no difference because of religion, sex, caste, language etc. There should be equal opportunities for everyone in the organization. It will result in improved loyalty and devotion among workers towards organization. For example same salary should be provided to both of employees whether male or female who are doing same type of work.
Order : According to this principle there should be a definite place for each person and material in the organization. And each person and material should be available at its own place. It will result in increased efficiency. For example if loose tools are placed at their proper place they can be used whenever required without spending time to search them. So all activities will be executed without any hindrance.
17. When management is practiced as personal application of existing knowledge to achieve desired results it is considered as Art.
18. Middle Level
19. (i)Optimum Utilisation of Resources :Principles of management equips the manager to foresee the cause and effect relationship of their decision. So the wastage associated with trial and error can be overcome. In this way the human and physical resources can be put to optimum use. This will result in higher output in minimum cost. Effective administration is also possible because of work division, unity of command, scalar chain etc.
(ii) Meeting changing environment requirements : The principles of management are not rigid they can be modified and used according to changed circumstances. They can adapt the dynamic business environment. For example the principle of division of work can be applied to entire business also. Because of which in modern time organization needs outsourcing of services. The core activities they do themselves and look for outsourcing for non core activities.
20. The strongest motivator for a worker to reach standard performance is Differential Piece Wage System.
According to this technique the workers are devided in two categories efficient and inefficient. That worker will be considered efficient who completes the given work in standard time. To reward the efficient worker a different rate of wages is adopted to pay them. For example if a worker produce 10 units in 8 hrs.then he will be paid by Rs.50 per unit and if he produce less than 10 units he will be paid by Rs.30 per unit. Then if a worker produces standard output he will get 10*50= Rs.500 and if he produces 9 units he will get 9*30= Rs. 270
This difference (500-270) of Rs.230 will highly motivate him to be efficient.
21. Management plays an important role to achieve the goal of organization effectively and efficiently. The aim of a manager is to reduce costs and increased productivity through better planning ,organizing, directing, staffing and controlling the activities of the organization. Manager uses various principles and techniques which result in efficiency.
Management helps in development of the organization by fulfilling the obligation towards different stakeholders of business.Through this process it helps in development of society also. It makes an effort to provide good quality products and services at cheaper rates, creates employment opportunities and uses new technology for the betterment of society.
22. Management is as a science.
23. Top Level
24. Importance of principles of management :
(i) Provide useful insight into reality: The principles of management improves knowledge, ability and understanding of various managerial situations and circumstances. So the principle of management increase the efficiency of management. They can solve the problems quickly.
(ii) Helpful in thoughtful decision making : The principle of management helps manager in taking scientific decision based on facts and logic.They are based on the objective assessment of the situation. Thus management principles helps in thoughtful decision making.
25. The technique of scientific management that is the extension of ‘Principal of division of work and specialisation’ is functional foremanship.
According to this technique to improve the efficiency of foreman work is divided in small parts and each work is assigned to a particular foreman . In this way he will become an expert in his field . In this technique the entire work is divided in two parts i.e. planning function and execution fuction. There are four personnel in each part who will do a specific work.
Factory Manager
Planning InchargeProduction incharge
Instruction Route Time and Cost Disciplinarian Speed Gang Repair Inspector Card Clerk Clerk Clerk Boss Boss Boss
26. ‘Co-Ordination ‘integrates group efforts’ : Coordination integrates the individual efforts for the attainment of the goal of organization. It provides a common direction to group efforts and ensures that the organization goal will achieve according to plan.
‘Co-Ordination’ ensures unity of action : Coordination ensures unity of action in the realization of a common purpose. It binds the action of different departments to achieve the common goal. It ensures that individual contribution is helpful to attain the goal of organization.
27. Management is an Art.
28. At supervisory or Operational level of management.
29. . Functional foremanship is the technique of scientific management which separates theplanning and execution work.
In this technique the entire work is divided in two parts i.e. planning function and execution fuction. There are four personnel in each part who will do a specific work.
Factory Manager
Planning InchargeProduction incharge
Instruction Route Time and Cost Disciplinarian Speed Gang Repair Inspector Card Clerk Clerk Clerk Boss Boss Boss
According to this technique to improve the efficiency of foreman work is divided in small parts and each work is assigned to a particular foreman . In this way he will become an expert in his field.
30. Co-ordination : Coordination is the force that binds all the other functions of management. It is the function of management which runs through all the activities of management, such as purchase, sales and finance etc. to achieve the goal of organization. It is exist in all function of management such as planning, organizing, staffing, directing and controlling.