Subject Enrichment Material Class XII BUSINESS STUDIES

departmentslikepurchase,production,marketingetc.Thereare30 3
employeesworkingintheorganisation.Mr.Raghavbelievesthat 3
effectiveplanningisofparamountimportanceandcanhelpto
achieveorganisationalobjectives.Inordertomakeemployees 3
focusonobjectives,heissuedordersthatduringworkinghours 3
onlyofficialmatterswillbediscussed.Hemadecertainrulesand
codeofconductfortheemployees,accordingtowhichemployees
arenotallowedtovisitandtalktotheemployeesofother
departmentsexceptforofficialwork.Heemphasisedonwork
performance.

 Identifyandnamethetypeoforganisationmentionedin
abovepara.

 Stateonefeatureoftheconceptidentifiedinpart(1)above.
 Whatwasthepurposebehindtheformulationoftherules

fortheemployeesthatrestrictedthe
personalcommunication.
12 YouareworkinginHRdepartment.Day-by-dayyouarefacing
problemsduetoexistenceofinformalgroups.Whatstepswould
youtaketomanagesuchinformalgroups?

13 ThemanagerofM Ltd.Isoverburdenedwiththeworkandis
unabletoconcentrateoncoreissuesofthecompany.To
overcomethisproblem,heentrustedsomeofhisauthoritytohis
immediatesubordinatetosharesomeofhisroutinework.

1.Whichconceptisusedbythemanager?
2.Itisanextensionofoneoftheprinciplesofmanagement,

Nametheprinciple.
3.Giveonebenefitoftheconceptidentifiedinpart(1)above
14 “Ifwedelegatetheauthoritywemultiplybytwoandifwe
decentralisewemultiplyauthoritybymany”.Comment
15 ThedirectorsofGunjanLimited,anorganisisanextation

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manufacturingcolourtelevisionshaveaskedtheirproduction
managertoachievethetargetproductionof150televisionperday,
managerhasaskedhisforemantoachievethistargetbuthedid
notgivehim theauthorityforrequisitionoftoolsandmaterials
from thestoresdepartment.Theforemancouldnotachievethe
desiredtarget.Canthedirectorsblametheproductionmanager
andcanproductionmanagerblamehisforemanfornotachieving
thetarget?

Explaininbrieftherelevantprinciplesrelatingtothisfunctionin

supportofyouranswer

16 AtuljoinsasaRegionalSalesHeadintheexportdivisionofa 1+1+1+

FMCG(fastmovingconsumergoods)company.Inadepartmental 1=4

meeting,heasksoneofhissubordinates,Manik,totakechargeof

thecompany’snewofficeinDubai.Heallocatestheworktohim

andgrantsthenecessaryauthority.However,withinamonthby

seekingregularfeedbackontheextentofworkaccomplishedfrom

Manik,AtulrealisesthatManikisnotdoingtheworkasperhis

expectations.Sohetakesawaytheauthoritydelegatedtohim and

redelegatestheworktoPrakrit.Duetothetimewastedinthis

switchover,theworkattheDubaiofficesufferstremendouslyand

thecompanyisnotabletomeetitsdesiredgoals.

Incontextoftheabovecase:

 WhyisManiksupposedtogiveregularfeedbackaboutwork
toAtul?

 Cantheauthoritygrantedtoasubordinatebetakenbackand
re-delegatedtoanotherperson?

 CanManikbeheldresponsiblefornotmeetingthework
relatedexpectationsofAtul?Giveasuitablereasonin
supportofyouranswer.

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 Differentiatebetweenauthority,responsibilityand 4
accountabilityonthebasisoforigin. 4

17 Aftercompletingacourseintravelandtourism,Karanstartedhis
owntravelagency.Inordertoensuresmoothfunctioningofhis
business,hedecidedtocreatefourteenjobpositionsdividedinto
fourdepartmentsonthebasisoffunctionsnamely,frontoffice
departmentincludingonlinequeries,reservationsdepartmentfor
airways,railwaysandroadways,accommodationbooking
department,andsecuringpaymentsdepartment.Inordertoavoid
anyinterdepartmentalconflictshedecidestospecifyclearlythe
linesofauthorityandareasofresponsibilityforeachjobposition.

Inthecontextoftheabovecase:

A)Whichfunctionofmanagementisbeingdescribedinthe
abovelines?

B)IdentifytheframeworkcreatedbyKaranwithinwhichall
managerialandoperatingtasksaretobeperformedinhis
organization.

C)Namethetypeoftheframeworkasidentifiedinpart(a)of
thequestion.Also,giveanytwoofitsadvantages.

18 Itisanetworkofpersonalandsocialrelationsnotestablishedor
requiredbytheformalorganisationbutarisingspontaneouslyas
peopleassociatewithoneanother.Nametheorganisationandgive
itsthreeadvantages.

19 ‘NoOrganisationcanbecompletelycentralisedordecentralised’ 4
Comment.

20 Oneofthequestionsthatneedstobeansweredintheorganizing 4
functionis‘Atwhatlevelaredecisions

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made’?Decisionmakingauthorityinanorganizationcanbepushed
downtothelowerlevelsoritmayliewiththetopmanagement.
Howeveritisnotan‘eitheror’concept.

Whenanorganizationgrowsinsizeorcomplexity,thereis

tendencytowardssharingdecisionmakingauthoritywiththelower

levels.Thisisbecauseinlargeorganizations,employeeswhoare

closelyinvolvedwithcertainoperationstendtohavemore

knowledgeaboutthem thanthetopmanagement.Animportant

conceptoforganizingfunctionisdiscussedabove.Identifythe

conceptandstateanythreepointsofitsimportance.

21 RakeshjoinsasaHeadLibrarianofanewlyconstructedmedical 1+1+3=

collegeinPune.Ateam offourlibrariansisplacedunderhim for 5

thesmoothfunctioningofthelibrary.Besides,hehasbeen

assignedeightpeopleassupportservicestaff.Onthesecondday

ofhisjoining,heistoldtogetashipmentofnewbooksunloaded,

stockthebookshelves,andthengetallwaste(packaging,paper

etc.)disposedoffwithinaweekstime.Inordertoensure

orderlinessandspeedintheprocessofsettingupofthelibrary,he

makeseachofthefourlibrariansinchargeoffivedifferent

subjects.Keepinginmindtheircompetenceandexperiencehe

decidestogivethem moreauthoritysothattheycanmake

autonomousplansandassumetheresponsibilityfortheeffective

implementationoftheirdecisions.

Incontextoftheabovecase:

1)IdentifyandexplaintheconceptusedbyRakeshkeepingin

mindthecompetenceandexperienceoftheotherlibrarians.

2)Describebrieflyanythreeadvantagesofusingtheconcept

asidentifiedinpart(a)ofthequestion.

22 Ishitaworksasacorporateeventcoordinatorinanevent

managementcompany.Shehasbeenmadeanoverallofficialin

chargefororganizingapaintingexhibitionforoneoftheclientsof

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thecompany.Forensuringthattheexhibitiontakesplace 5
successfully,sheidentifiesthevariousactivitiesinvolvedand 5
dividesthewholeworkintovarioustaskgroupslikemarketing
committee,decorationcommitteeandreceptioncommittee.In
ordertofacilitatecoordinationwithinandamongcommittees,she
appointsasupervisorofeachgroup.Eachmemberinthegroupis
askedtoreporttotheirrespectivesupervisorofeachgroup.Each
memberinthegroupisaskedtoreporttotheirrespective
supervisorsandallthesupervisorsareexpectedtoworkasper
Ishita’sorders.

Incontextoftheabovecase:

A)Identifythefunctionofmanagementbeingperformedby
Ishita.

B)Describebrieflythevariousstepsinvolvedinthe
performanceofthefunctionofmanagementasidentifiedin
part(A)ofthequestion.

23 Acompanymanufacturingconsumergoodshasgrowninsize.It
wasamarketleaderbutwithchangesineconomicenvironment
andwiththeentryofMNCsitsmarketshareisdeclining.The
companywasfollowingacentralizedbusinessmodelaseventhe
minordecisionswereinthehandsoftoplevel.Before1991this
modelwassuitableforcompanybutnowthecompanyisunder
pressuretoreform.

Whatchangesshouldthecompanybringaboutinordertoretainits
marketshare?Giveitsthreepointsofimportance.
24 ASteelManufacturingCompanyhasthefollowingmainjobs:

1.Manufacturing,(ii)Finance,(iii)Marketing,(iv)Personaland,(v)
Researchanddevelopment.

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A)Whichtypeoforganizationalstructurewillyouchoosefor
thistypeofacompanyandwhy?

B)Stateanysixadvantagesthatthisstructureofferstoan 5
organization.
25 VoltagefluctuationshavebeencommonandquitehighinIndia.
Theyharm ourelectricalappliancesliketelevision,refrigerators
andairconditioners,oftenleavingthem inapermanentlydamaged
condition.

N-GuardCompanydecidedtomanufacturestabilizersforNorth
Indiawherethevoltagefluctuationrangesfrom 220V-230V.Once
thedemandfortheNorthIndiawastakencareof,theydecidedto
launchstabilizersofvaryingvoltagesfrom 90V-260Vformeeting
therequirementsofvoltagefluctuationsinotherregionsofIndia
also.

ThreeengineerswereappointedforSouth,WestandEastregions
ofIndia,asthevoltagewasdifferentinallthethreeregions.
Thoughalltheengineerswereappointedtomanufacture
stabilizersbuttheproductdifferedfrom regiontoregion.

(a)IdentifytheorganisationalstructureofNGuardCompany.

(b)Stateanytwoadvantagesandtwolimitationsofthestructure

identifiedintheabovepara.

26 CompanymanufacturingSewingMachinessetupin1946follows 2+2+2=

formalorganisationstructure.Itisfacingalotofproblemssuch 6

asdelayindecisionmaking,result,itisnotabletoadapttothe

changingbusinessenvironment.Theworkforceisalsonot

motivated,theproblem ofredtapeism andemployeesturnoveris

veryhigh.

 Advisethecompanywithregardtochangeitshouldbring

aboutinitsorganisationstructuretoovercomethe

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problemsfacedbyit.

 Givereasonsintermsofbenefitsitwillderivefrom the

changessuggestedbyyou.

 Inwhichsectorcanthecompanydiversifykeepinginmind

thedecliningmarketfortheproductthecompanyis

manufacturing?

27 Tanushreerunsafactorywhereinshemanufacturersshoes.The 2+4=6

businesshasbeendoingwellandsheintendstoexpandby

diversifyingintoleatherbagsaswellaswesternformalwear,

therebymakinghercompanyacompleteproviderofcorporate

wear.Thiswillenablehertomarketherbusinessunitastheone

shopforworkingwomen.Whichtypeofstructurewouldyou

recommendfortheexpandedorganizationandwhy?Stateanyfour

advantagesofthisorganizationstructure.

28 KiranIndustriesisacompanymanufacturingofficefurniture.The 3+3=6

companychosetodiversifyitsoperationstoimproveitsgrowth

potentialandmarketshare.Astheprojectwasimportant,many

alternativesweregeneratedforthepurposeandwerethoroughly

discussedamongstthemembersoftheorganisation.After

evaluatingthevariousalternatives,Rohan,theManagingDirector

ofthecompanydecidedthattheyshouldass‘HomeInteriorsand

Furnishings’asanewlineofbusinessactivity.

A)Nametheframework,whichthediversifiedorganisationshould

adopt,toenableittocopewiththeemergingcomplexity?Givetwo

reasonsinsupportofyouranswer.

B)Stateanythreelimitationsofthisframework.

29 AradhnaandGandharvareheadsoftwodifferentdepartmentsin 6

‘YumcoLtd.’Theyareefficientmanagersandareabletomotivate

theemployeesoftheirrespectivedepartmentstoimprove

performance.However,theirdrivetoexcelintheirownsphereof

activityinsteadofgivingemphasisonobjectivesoftheenterprise

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hashinderedtheinteractionbetweenthedepartmentsthat
AradhanaandGandharvareheading.Oftenthereareinter-
departmentalconflictsandtheyhavebecomeincompatible.This
hasprovedtobeharmfulinthefulfillmentoftheorganizational
objectives.Thesituationhasdeterioratedtosuchanextentthat
theCEOof‘YumcoLtd.’Hashiredaconsultant,Rashmi,toresolve
theproblem.Afterstudyingthesituationclosely,Rashmifoundthat
theproblem hasarisenduetoinflexibilityandanarrowperspective
onthepartofbothAradhanaandGandhrav.Sheisoftheviewthat
thissituationisaresultofthetypeoforganizationalstructure
‘YumcoLtd.’hasadopted.

From theaboveinformation,identifytheorganizationalstructure
adoptedby‘YumcoLtd.’Andstateadvantagesofthestructureso
identified.

30 AmanChadhastarted‘BullsEye’acompanyforprovidingcyber 6
securitysolutionstobusinesses.Itsobjectiveistoprevent,detect
andrespondtocyberattacksandprotectcriticaldata.Hewasa
hardworkingsoftwareengineerandanexpertincybersecurity.His
reputationgrewbyleapsandboundsashewasnotonlyaperson
ofintegritybutalsodidhisworkwithutmosthonestyandsincerity.
Thebusinessstartedgrowingdaybyday.Hewasdelightedwhen
hewasofferedabigprojectbytheMinistryofDefence.While
workingontheproject,hefoundthatthevolumeofworkmadeit
impracticalforhim tohandlealltheworkbyhimself.Hedecidedto
expandtheteam.Thecompanymaintainedacloseliaisonwitha
localengineeringcollege.Duringacampusplacement,Ishanand
Vrindawereappointedtoworkforthenewproject.

Hefoundthenewemployeescapable,enthusiasticand
trustworthy.AmanChadhawasthus,abletofocusonobjectives
andwiththehelpofIshanandVrinda,theprojectwascompleted

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ontime.NotonlythisAmanChadhawasalsoabletoextendhis
areaofoperations.OntheotherhandIshanandVrindaalsogot
opportunitiestodevelopandexerciseinitiative.

(i)IdentifyandbrieflyexplaintheconceptusedbyAmanChadhain
theabovecasewhichhelpedhim infocusingonobjectives.

(ii)Also,stateanyfourpointsofimportanceoftheconcept
identifiedin(i)above.

ANSWERS

Q.NO. ANSWER MARKS

1 False 1

2 False 1

3 authorityandresponsibility 1

4 Decentralisation 1

5 B)Departmentalisation 1

6 B)Itgivesmoreimportancetostructureandwork. 1

7 D)Accountability 1

8 Organising 1

9 InformalOrganisation. 1

10 Decentralisation. 1

11 1.FormalOrganisation 1+1+1=

2.Focusonobjectiveandworkperformance 3

3.Avoidanceofemergenceofinformalorganisationwhichmay

obstructthefulfillmentoforganisationalgoals.

12 Followingstepsshouldbetakentomanagesuchinformalgroups: 3

1.Managementshouldusegroupbasedapproachesfor
decisionmakingandconflicthandling.

2.Managementshouldensurethatinformalgroupsfollowthe
rules,laiddowninanorganisation

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3.Managersshouldassistinformalgroupsforthebettermentof 3
organisation 3
13 1.Delegationofauthority

2.Divisionofwork
3.Motivationtoemployees
14 Itistrue,becausethescopeofdelegationislimited,when
authorityisdelegated,onlytwopersonareinvolvedI.e.Delegator
anddelegatee(immediatesubordinate).Authoritygetssharedby
twopeople.Delegatorhastokeeparegularcheckonthe
delegateeastheaccountabilityofsuperiorisnotdelegated.

Whilescopeofdecentralisationiswider,ashereauthorityis 3
systematicallydelegateduptothelowestlevel.Decentralisation
increasestheroleofsubordinatesindecisionmakingandprovide
relieftotopmanagement.
15 Yes,theDirectorcanblametheproductionmanageralthoughhe
hasdelegatedthetasktohisforemanandbecauseaccountability
cannotbedelegatedbymanager.Theproductionmanagershall
stillbeaccountablefortheperformanceoftheassignedtask
(principleofabsolutenessofaccountability)

Howevertheproductionmanagercannotblamehisformanfor
notachievingthetargetbecauseitdidnotgivehim theauthority
fortherequisitionoftoolsandmaterialsfrom thestores
department.Responsibilitywithauthoritywillmakethe
subordinatesineffective,thatishewillnotabletoperform his
dutieswell(principleofauthorityandresponsibility)

16  Manikissupposedtogiveregularfeedbackaboutworkto 1+1+1+

Atulashehasbeengrantedauthorityandentrusted 1=4

responsibility,soheremainsanswerablefortheoutcome.

 Yes,theauthoritygrantedtoasubordinatecanbetaken
backandre-delegatedtoanotherperson.

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 Yes,Manikcanbeheldresponsiblefornotmeetingthe
workrelatedexpectationsofAtulasitistheobligationofa
subordinatetoperform theassigneddutytothebestofhis
abilityandskill.

4.Authorityarisesfrom thejobpositionofpersoninthe 4
organisation,responsibilityoriginatesfrom authorityand
accountabilityoriginatesfrom responsibility
17 A)TheOrganizingfunctionofmanagementisbeingdescribed

intheabovelines.

B)OrganizationalstructureistheframeworkcreatedbyKaran
withinwhichallmanagerialandoperatingtaskaretobe
performedinhisorganization.

C)Karanhascreatedafunctionalstructureasjobpositionsare
dividedintofourdepartmentsonthebasisoffunctionsnamely,
frontofficedepartmentincludingonlinequeries,reservation
departmentforairways,railwaysandroadways,
accommodationbookingdepartment,andsecuringpayments
department.

Thetwoadvantagesoffunctionalstructure

18 InformalOrganisation 4

Advantages

Itbringsfeelingofbelongingness

Informalorganisationsatisfiessocialandculturalneeds

Itprovidesusefulchannelsofcommunication 4
19 CentralisationandDecentralisationarerelativeterms,i.e.absolute

orcompletecentralisationordecentralisationisnotpossible.

Completecentralisationmeansconcentrationofalldecision

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makingpowersattoplevel.Itisnotpossibleasitremovetheneed 4
formanagementheirarchy.Amanagercannotretainallthe
authorityandyethavesubordinatesintheorganisation.Itis
possibleinone-manbusiness.Managercannotconcentrateon
importantmatters,ifhetriestohandleeverythingbyhimself.

Completedecentralisationmeansdelegationofalldecision
makingfunctionstothelowerlevels.Thisisalsonotpossibleasit
wouldobviatetheneedforhighermanagerialpositions.A
managercannotdelegateallhisauthoritywithoutsurrenderinghis
positionasamanager.

So,anorganisationcanneverbecompletelycentralisedor
decentralised.Anorganisationmovestowardsdecentralisationas
itgrowsinsizeandcomplexity.Inordertoincreaseeffectiveness
andtoimproveoverallfunctioning,theorganisationmaintaina
balancebetweencentralisationanddecentralisation.
20 Decentralisation

Importanceofdecentralisation:(Anythree)

(i)Itgivesrelieftothetopmanagementas,whenthesubordinates
aregiventhefreedom toact,thetop

managementgetsmoretimetodevoteonimportantpolicy
decisionsratherthanhandlingoperationaldecisions.

(ii)Itdevelopsinitiativeamongstsubordinatesbypromotingself
relianceandconfidenceamongthem.Thisisbecausewhenlower
manageriallevelsaregivenfreedom totaketheirowndecisions
theylearntodependontheirownjudgement.

(iii)Itdevelopsmanagerialtalentforthefuturebygivingthe
subordinatesachancetoprovethemselves,thus,creating
reservoirofqualifiedmanpowertofillupchallengingpositionsin

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future.

(iv)Itfacilitatesgrowthbyfosteringcompetitionamongstthe
departmentsleadingtoincreaseinproductivity,therebygenerating
tohigherprofitswhichcanbeusedforgrowthandexpansion.

(v)Ithelpsinquickdecisionmakingasthereisnorequirementfor
approvalfrom manylevels.Therearealsolesschancesof
informationgettingdistortedasitdoesn’thavetogothrough
manylevels.

(vi)Itleadstobettercontrolbyevaluatingperformanceateach
levelofmanagement.Thedepartmentscanbeheld
accountablefortheirresults.
21 1)Rakeshhasusedtheconceptofdecentralizationkeepingin 2+3=5
mindthecompetenceandexperienceoftheotherlibrarians.
2)Thethreeadvantagesofusingdecentralizationareas
follows:
 Decentralizationhelpstopromoteinitiativeamongstthe

subordinates
 Relieftotopmanagement
 Quickdecisionmaking (explanationtobegiven)
22 A)TheOrganizingfunctionofmanagementisbeingperformed 5
byIshita.

B)Thestepsinvolvedintheprocessoforganizingareas
follows:

1.Identification and division ofwork:Itmeans identifying
variousactivitiestobedoneanddividingthoseactivitiesinto
subtaskskeepinginmindthequalification,experienceand
skillsrequiredtodothosetasks.

2.Departmentalisation:Itinvolvesgroupingofactivitieswhich
are similar in nature. This process is called

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departmentalization.Departmentscanbecreatedonthebasis
ofproductsandfunctions.

3.AssignmentofDuties:Jobs are allocated to individuals
accordingtotheir knowledgeandskill.Thereshouldbeproper
match between the nature ofjob and the ability ofan
individual.

4.EstablishingReportingRelationships:Inordertoperform the
dutiesassigned,itisnecessarythatsomeauthorityisgranted
forthesame.Eachemployeehassomeauthorityaswellas
responsibility.Itisnecessarythateveryindividualmustknow
whom he has to take orders from and to whom he is
answerable.Thiscreatessuperior-subordinaterelationship.

23 Thetopmanagementofthecompanymustsharedecision-making 5
authoritywithmiddlelevellandsupervisorylevelalso.Itshould
introducetheconceptof‘Decentralization’insteadoffollowing
completecentralization.Inthecurrentscenarioofbusiness
environment,thereisneedforfastactionandquickdecision-
makingwhichispossibleonlywithdecentralization.

Importanceofdecentralization:

1.Relieftotopmanagement:
2.Developsinitiativeamongstsubordinates

3.Quickdecision-making:

24 A)Functionalstructure;becausethecompanyhasdiversified 5
activitiesandoperationsrequireahighdegreeof
specialization.

B)Advantagesoffunctionalstructure:

I)Functionalstructureleadstooccupationalspecialization.

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II)Itpromotescontrolandcoordinationwithinthedepartment.
III)Ithelpsinincreasingmanagerialandoperationalefficiency
andthisresultsinan
IV)increaseinprofits.
V)Itleadstominimum duplicationofeffort.
VI)Itmakestrainingofemployeeseasier.
VII)Itensuresthatdifferentfunctionsgetdueattention.

25 FunctionalStructure 5

AdvantagesofFunctionalstructure:(Anytwo)

(a)Itleadstooccupationalspecialisationsinceemphasisis
placedonspecificfunctions.

(b)Itpromotescontrolandcoordinationwithinadepartment
becauseofsimilarityinthetasksbeingperformed.

(c)Itincreasesmanagerialandoperationalefficiencyresultingin
increasedprofit.

(d)Itlowerscostasitreducesduplicationofeffort.

(e)Itmakestrainingofemployeeseasierasitfocusesonalimited
rangeofskills.

(f)Itensuresthatdifferentfunctionsgetdueattention.

TwolimitationsofFunctionalstructureare:(Anytwo)

(a)Creationoffunctionalempireswherelessemphasisisplaced
onoverallobjectivesoftheenterpriseandmoreontheobjectives
pursuedbyafunctionalhead.

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(b)Problemsincoordinationasinformationhastobeexchanged
acrossfunctionallydifferentiateddepartments.

(c)Inter-departmentalconflictsmayarisewhentheinterestoftwo
ormoredepartmentsarenotcompatible.

(d)Inflexibilityaspeoplewiththesameskillsandknowledge

maydevelopanarrowperspective.

26 1.Thecompanyshouldgivedueimportancetoinformal 2+2+2=

organisationstructurealongwiththeformalstructure.It 6

enhancesthejobsatisfaction.Thiswillovercometheproblem

oflackofmotivation,Italsoprovideusefulcommunication

channelswhichmayhelptotransmitUsefulinformation

quickly.

2.benefitsofinformalorganisationstructure:

a)fastestspeedofinformation.

b)fulfillmentofsocialneeds.

c)fillinadequaciesofformalstructure.

3.Thecompanycandiversifyitsactivitiesbyintroducing

embroiderymachines.itcanalsodesignspecialmachines

keepinginmindtherequirementofreadymadegarment

manufacturersetc.,bydiversifyinginthesamefielditcanget

maximum utilisationofexisting.Resources

27 ‘Divisionalstructure’issuitablefortheexpandedbusinesssinceit 2+4=6

willproducemultipleproducts–shoes,leatherbagsandwestern

formalwear.Thatmeans,theorganizationwillgrow;andwillneed

toaddmoreemployees;createmoredivisions;andintroducenew

levelsofmanagement.

Byadoptingdivisionalstructure,thecompanywillgetthefollowing

advantages:

1)Itwillfacilitategrowthandexpansion.Nowthebusinessof

Tanushreewillhavemultipledivisionsshoes,bagsandformal

wear.Withindivision,functionslikeproduction,marketingfinance,

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purchase,etc.willbeperformedtoachievetheobjectivesofthe

business.

2)Greateraccountabilitywillbepossiblebecausethedivisional

managerscanbeheldseparatelyaccountablefortheirrespective

division’sprofits,costs,etc.

3)Productspecialization:Adivisionalheadgainsexperienceinall

functionsrelatedtoaparticularproduct.

4)Flexibilityandinitiative:Itpromotesflexibilityandinitiative

becauseeachdivisionfunctionsasanautonomousunitwhich

leadstofasterdecision-making.

28 A)DivisionalStructure 3+3=6

Reason:

 Productspecialisation:Ithelpsinthedevelopmentof

variedskillsindivisionalheadandthisprepareshim for

higherpositions.

 GreaterAccountability:Indivisionalstructure,eachproduct

istreatedasa‘profitcentre’andisaccountableforitsown

profitorloss.Thisprovidesabaseformeasuring

performanceandhelpsinfixingresponsibilityincaseof

poorperformance.

B)Limitations:

1.Departmentalconflicts:Conflictsmayariseamongdifferent

divisionswithreferncetoallocationoffunds.

2.Costly:Itiscostlyaseachdivisionhastomaintainitsown

facilities,equipmentsandpersonnel.

3.Ignoreorganisationalinterests:InDivisionalstructure,managers

focusontheirownproductwithoutthinkingoftherestofthe

organisation.Thusorganisationalobjectivessufferandbecome

difficulttoachieve.

29 FunctionalStructureistheorganizationalstructureadoptedby 6

‘YumcoLtd.’

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AdvantagesofFunctionalStructure:(anyfive) 6

(a)Itleadstooccupationalspecializationsinceemphasisis
placedonspecificfunctions.

(b)Itpromotescontrolandcoordinationwithinadepartment
ecauseofsimilarityinthetasksbeingperformed.

(c)Itincreasesmanagerialandoperationalefficiency.
(d)Itlowerscostasitreducesduplicationofefforts.
(e)Itmakestrainingofemployeeseasierasitfocusesona

limitedrangeofskills.
Itensuresthatdifferentfunctionsgetdueattention.
30 (i)Delegation.

Delegationisthetransferofauthorityfrom superiorto
subordinate,entrustmentofresponsibilityandcreationof
accountabilityforperformancewhichhelpsamanagertoextend
hisareaofoperations.

(ii)Importanceofdelegationofauthority:(Anyfour)

(i)Effectivemanagement:Ithelpsineffectivemanagementasthe
managersgetmoretimetoconcentrateonimportantmatters.

(ii)Employeedevelopment:Ithelpsindevelopmentofemployees
astheemployeesgetmoreopportunitiestoutilizetheirtalent.

(iii)Motivationofemployees:Ithelpstomotivateemployeesas
theemployeesfeelencouragedandtrytoimprovetheir
performancefurther.

(iv)Facilitationofgrowth:Itfacilitatesgrowthbyprovidingaready
workforcetotakeupleadingpositionsinnewventures.

(v)Basisofmanagementhierarchy:Itestablishesamanagement
hierarchythroughclearsuperiorsubordinaterelationships.

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(vi)Betterco-ordination:Ithelpsinbetterco-ordinationby
avoidingoverlappingofduties.

CHAPTER:STAFFING

Q.NO. QUESTION MARKS

1 Ininternshiptraining,thetraineelearnsundertheguidanceof 1
mastertrainer.(True/False)

2 Underwhichsourceofrecruitmentdoemployeesgetmotivated? 1

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(a)Internal 1
(b)External 1
(c)Both
(d)Noneoftheabove 1
1
3 Expenseontrainingisawaste.(True/False)
1
4 From whichsourceofrecruitmentdowegetBadliorcasual 1
Employee?

(a)DirectRecruitment

(b)CasualCallers
(c)MediaAdvertisement
(d)EmploymentExchange

5 Providingthecandidate,thepost,forwhichheisselectedis
called………………..

6 Whichofthefollowingisnotanexternalsourceofrecruitment?

(a)CasualCallers
(b)Advertisement
(c)Promotions
(d)RecommendationsofEmployees

7 Whyis’employmentinterview’conductedintheprocessof
selection? 

8 WhendoesthePersonnelManageractastheLineManager?

(a)Whenhecompletesthejobofstaffingaspartof
functionalareaofmanagement

(b)Whenheperformsthefunctionofstaffingasafunction
ofmanagement

(c)Inboththeabovesituations

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(d)HeneveractsastheLineManager

9 Whatstagedoestherequisitionofemployeesoccupyinthe 1
processofrecruitment?

(a)First

(b)Second
(c)Third
(d)Fourth

10 NKGPvt.Ltd.isacompanyengagedinthemarketingofwater 1
purifiers.Astheirproductisingreatdemand,theemployeesin
themarketingdepartmentarealwaysracingagainsttime.The
employeeshavetoworkovertime.Sothecompanydecidedto
searchfornewworkersandtookrecommendationsfrom
presentemployees.

(a)Identifythefunctionofmanagementbeingperformedby
thecompanyintheabovesituation.

(b)Namethesourceusedbythecompanytoputpeopleto
jobs.

11 RamaLtd.isengagedinthemarketingofairconditioners.To 1.5+1.5=
meettheincreasingdemandoftheirproduct,theydecidedto 3
startanewplant.Theyassessedthetypeandthenumberof
employedrequiredandtheytookthehelpofadvertisinginthe
localnews-papertoattracttheprospectiveemployees.

Explainthenexttwostepsthattheyhavetoundertaketofulfil
therequirementofqualityworkforce.

12 JosephBrosisafirm manufacturingjutelampshades.Ituses 3
leftoverjutepiecesfrom variousjutefactoriestomanufacture
economicallampshadeswhicharesuppliedtovarioushotelsin

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nearbytowns.Itemploysmenandwomenfrom nearbyvillages
asworkersforcreatinggoodlampshadedesigns.JosephBros,
isnotabletomeetitstargets.Namish,thesupervisorofthe
company,wastoldtoanalysethereasonsforthepoor
performance.Namishfoundthefollowingproblemsand
suggestedcertainsolutionsintheworkingofthebusiness.The
numberofworkersemployedwaslessthanwhatwasrequired
forthework.Asaresult,theexistingworkerswere
overburdened.Thefirm decidedtosearchfornewworkersandit
askedthepresentemployeestointroducecandidatesor
recommendtheirfriendsandrelativestothefirm.Thisenabled
thefirm to‘putpeopletojobs’andassuredtheattainmentof
objectivesaccordingtoplans.

1.Identifythefunctionsofmanagementbeingperformedby 3
thefirm intheabovesituation.

2.Nametheconceptanditssourceusedbythefirm to
attractmoreworkersforthefirm.

3. StateanytwovaluesbeingfollowedbyJacobBros.

13 Ganeshwasconcernedaboutthesedentarylifestylepeopleare
leadingnowadays.Theirdependencyonoutsidefoodisalso
increasingbecausecorporateworkculturedemandsworkingtill
latenightatoffices.So,hedecidedtostartarestaurant,‘Healthy
EatingPoint’toprovidehealthyfoodoptionstocustomers.After
completingplanningandorganisingfunctions,heidentifiedthe
variousjobpositionsthatarerequiredtobefilledi.e.aGeneral
Manager,anAccountant,twoChefs,twoboysforservingthe
foodintherestaurantandthreeboysforhomedeliveryoffood.
Hedecidedthathisfather,Karan,wouldbetheGeneralManager
oftherestaurant.HewouldbepaidRs.50,000permonthforhis
services.Hisfatherrequestedhim toappointhisfriend’sson,

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Prem asanaccountantwhoiswellqualifiedforthispost. 3
Ganeshagreedtothisproposal.Earlier,Prem hadabusinessof 3
providingunskilledworkerstodifferentorganisationsfrom
remoteareasofthecountry.Prem tookpermissionfrom Ganesh
tocontinuewiththeoldbusiness.Ganeshhappilyagreedand
askedhim toprovidefiveboysforservinganddeliveringthe
food.FortheappointmentofthetwoChefs,Ganeshapproached
arenownedHotelManagementInstituteandwassatisfiedwith
theChefsprovidedbytheinstitute.

Quotingthelinesfrom theaboveparagraph,explainanytwo
sourcesofrecruitmentbeingusedbyGaneshforfillingupthe
variousjobpositions.

14 Afterpassinghissecondaryschoolexamination,Davidleftthe
schoolattheageof15yearsandstartedgettingtrainingunder
hisfather.Hisfather,arenownedelectrician,hadworkedfor
manycompanies.Heeverydaystartedaccompanyinghisfather
onworkandwatchedhim carefullywhileworking.Davidwasa
goodlearnerandlearntthetechniquesofworkquickly.Nowhis
fatherstartedpassingonthetricksofthetradetoDavid.With
thepassageoftimeDavidacquiredahighlevelskillandbecame
a

well-knownelectricianatIndore.Bigbusiness-housesstarted
callinghim forelectrical-wiring.

(a)Namethemethodoftrainingdiscussedintheabovepara.

(b)StateanytwobenefitswhichDavidcouldgetonbeing
trained.

15 Mr.MurthyistheHumanResourceManagerofJaiHindHospital
inVellore.Hehastoappointnursesforthehospital.Since
patientsinthehospitalareofdifferenttypes,hewantstofind

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outthecandidates’maturityandemotionsindealingwiththe
patients.Healsowantstoknowaboutthecandidates’abilityto
makedecisions.

ExplaintwotypesofteststhatMr.Murthycanusetomeethis
requirements.

16 BharatLtd.purchasedanewmachineryfrom Germanyfor 1+3=4

manufacturingsomeautocomponents.Itwasacost-effective

andqualityproductionmachinebutduringtheproduction

process,managerobservedthatthequalityoftheproduction

wasnotasperstandards.Oninvestigation,itwasfoundthat

therewaslackofknowledgeofusingthesehi-techmachines.

So,frequentvisitsbyengineerswererequiredfrom Germanybut

thisresultedinhighoverheadcharges.

Suggestwhatcanbedonetodeveloptheskillsandabilitiesof

employeesforproducingqualityproductsbyusingthesehi-tech

machines.Alsostatehowtheemployeeswillbebenefitedby

yoursuggestion.

17 HumanResourceManagementincludesmanyspecialized 4
activitiesanddutieswhichthehumanresourcepersonnelmust
perform.Inthelightofthisstatement,explainanyfoursuch
dutiesperformedbyHumanResourceManager.

18 Toenhanceproduction,XYZltd.purchasedanewmachinery 4
.Butinactual,productiongotdownandalsoproductionwasnot
uptostandard.Oninvestigation,itwasfoundthatemployees
arenotabletousethatnewmachineryproperlybecauseoflack
ofknowledgeregardingnewtechnology.

(A).Suggestwhatcanbedonetodeveloptheskillsof
employees.

(B.)Alsostatethreebenefitsofyoursuggestion.

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19 XenoLtd.isaglobalinformationtechnologyconsulting 4
companywith45,000employeesservingover600clientsin23 4
countries.ItsChiefExecutiveOfficer,MrNeilSumanguidedthe
companythroughtwodecadesofdiversificationandgrowthto
emergeasoneoftheleadingIndiancompaniesinthesoftware
industry.Thecompanyhassetstandardsinensuringthebest
trainingopportunitiesforitsemployees.

TheProjectGuidanceProgram isa52daystructuredtraining
program offeredtoallrecruitsofvariedbackgroundstobe
trainedonessentialbehaviouralandtechnicalskillsthat
preparesthem toworkinlivecustomerprojects.Theserecruits
arehiredfrom universitiesandmanagementinstitutesfor
technical,professionalaswellasmanagerialjobs.Itistohelp
thenewemployeesinsettlingdownquicklyintothejobby
becomingfamiliarwiththepeople,thesurroundings,thejoband
thebusiness.

(a)Identifytheexternalsourcesofrecruitmentusedbythe
companytohirenewemployees.

(b)Explainthemethodoftrainingusedbythecompanytotrain
employeesselectedbythesourceofrecruitmentidentifiedin
part(a)

(c)StatetwowaysinwhichtheProjectReadinessProgram can
benefitXenoLtd.

20 VandanaPublicSchoolhadavacancyofaMathsteacher.They
werelookingforasmartandcreativeteacherhavingadrivefor
excellence.Anadvertisementwasgiveninallleadingdailies.
Sincethe

Responsewashuge,theschoolexaminedalltheapplication
formsandrejectedthecandidateswhodidnothavethe

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necessaryqualifications.Thereafter,atestwasconductedto
measuretheexistingskillsofthecandidates.Afterthatitwas
followedbyaformalin-depthconversationwiththePrincipalof
theschoolandapanelofMathsexperts.

(a)ExplainthestepsthathavebeenperformedbyVandana
PublicSchoolintheprocessofidentifyingandchoosingthebest
candidate.

(b)Givethenameandalsothemeaningofthetestwhichwas
conductedbytheschool.

21 NarsimhabelongstoasmallvillageinVaranasi.Beingtheonly 1+4=5
literatepersoninhisimmediatefamily,hedecidestosettleina
city.SoheopensasweetsshopinChandniChowk,Delhiashe
possessesextraordinaryculinaryskills.Verysoonhestarts
gettingrequestsfrom hiscousinsinthevillagetoengagethem
insomekindofjobinhisbusiness.Consideringittobehis
moralobligation,heengagesfiveofhiscousinsinhisbusiness
withoutpayinganyspecificattentiontotheirindividual
capabilities.Thisleadstowastageofmaterials,time,effortand
energy,resultinginlowerproductivityandpoorqualityof
products.Asaresult,theprofitabilityofhisbusinessstarts
falling.Soon,herealisedthatforthesuccessofthebusinessit
isessentialthatrightkindofpeoplemustbeavailableinright
numberattherighttime.
Inthecontextoftheabovecase:

(a)Identifyandexplainthefunctionofmanagementthathas
beenoverlookedbyNarsimha.

(b)Describebrieflytheimportanceofthefunctionof 5
managementasidentifiedinpart(a).

22 JosephBrosisafirm manufacturingjutelampshades.Ituses
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leftoverjutepiecesfrom variousjutefactoriestomanufacture
economicallampshadeswhicharesuppliedtovarioushotelsin
nearbytowns.Itemploysmenandwomenfrom nearbyvillages
asworkersforcreatinggoodlampshadedesigns.
JosephBros,isnotabletomeetitstargets.Namish,the
supervisorofthecompany,wastoldtoanalysethereasonsfor
thepoorperformance.Namishfoundthefollowingproblems
andsuggestedcertainsolutionsintheworkingofthebusiness.
Thenumberofworkersemployedwaslessthanwhatwas
requiredforthework.Asaresult,theexistingworkerswere
overburdened.Thefirm decidedtosearchfornewworkersandit
askedthepresentemployeestointroducecandidatesor
recommendtheirfriendsandrelativestothefirm.Thisenabled
thefirm to‘putpeopletojobs’andassuredtheattainmentof
objectivesaccordingtoplans.

1.Identifythefunctionsofmanagementbeingperformedby 5
thefirm intheabovesituation.

2.Nametheconceptanditssourceusedbythefirm to
attractmoreworkersforthefirm.

StateanytwovaluesbeingfollowedbyJacobBros.

23 Aayesha,theMarketingHead,Raman,theAssistantManager
andJyoti,theHumanResourceManagerofSenorEnterprises
Ltd.decidedtoleavethecompany.
TheChiefExecutiveOfficerofthecompanycalledJyoti,the
HumanResourceManagerandrequestedhertofillupthe
vacanciesbeforeleavingtheorganisation.Informingthather
subordinateMissAlkaPanditwasverycompetentand
trustworthy,Jyotisuggestedthatifshecouldbemovedupinthe
hierarchy,shewoulddotheneedful.TheChiefExecutiveOfficer
agreecsforthesame.MissAlkaPanditcontactedKeith

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Recruiterswhoadvertisedforthepostofmarketingheadfor
SenorEnterprisesLtd.Theywereabletorecruitasuitable
candidateforthecompany.
Raman’svacancywasfilledupbyscreeningthedatabaseof
unsolicitedapplicationslyingintheoffice.

1.Nametheinternal/externalsourcesofrecruitmentusedby 5
SenorEnterprisesLtd.tofilluptheabovestated 5
vacancies.

2.Alsostateanyonemeritofeachoftheaboveidentified
sourceofrecruitment.

24 NishaSethiwasworkingasaHumanResourceManagerina
famousconsultancyfirm,KLIGlobalServices.Herjobincluded
preparingjobdescriptions,recruitment,developing
compensationandincentiveplansandfacilitatingemployee
learning.Theyhadenteredintoallianceswithinstitutesto
ensurecontinuouslearningoftheiremployees.Withthejobs
becomingmoreandmorecomplex,KLIGlobalServicesinvested
largeamountofmoneyinmakingtheemployeeslearntheskills
necessarytocompletethejobs.Statebygivinganyfivepoints,
howthisinvestmentislikelytobenefittheorganisation.

25 Mr.RamanisthehumanresourcemanagerofShantiHospitalin
Nellore.Hehastoappointnursesforthehospital.Forthishe
hasconductedpreliminaryinterviews.Sincepatientsinthe
hospitalareofdifferenttypes,hehasalsoconductedteststo
findoutthecandidates’maturityandemotionsindealingwith
thepatients.Hehasalsoconductedteststoknowaboutthe
candidates’abilitytotakedecisions.

ExplaintheremainingstepsthatMr.Ramanshouldtaketo
completetheselectionprocess.

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26 Sham Sunderrunsasecurityserviceprovidersagency. 1+5=6

Consideringthatpsychologicaltestingisacriticalstepfor

judgingthepotentialoftheprospectivecandidatesforacareer

inlawenforcement,heusesvarioustypesofpsychologicaltests

aspartoftheselectionprocesses.Thisisdonetoensurethat

potentialnewofficersareemotionallyandpsychologicallysuited

tocarryouttherequirementsofthejob.

Incontextoftheabovecase:

(a)BrieflyoutlineanyonemoretypeoftestthatSham
Sundermayusetoassessthepotentialoftheprospective
candidates.

(b)Brieflyoutlinethestepsinvolvedintheselectionprocess
afterconductingtheassessmenttests.

27 AnAutocompanyissettingupanewplantinIndiafor 2+2+2=6

manufacturingautocomponents.Indiaisahighlycompetitive

andcosteffectiveproductionbaseinthissector.Manyreputed

carmanufacturerssourcetheirautocomponentsfrom here.

Co.isplanningtocaptureabout40%ofthemarketsharein
India

andalsoexporttothetuneofatleast$6millioninabout2years
ofits

plannedoperations.Toachievethesetargetsitrequiresahighly
trainedandmotivatedworkforce.Youhavebeenretainedbythe
companytoadviseitinthismatter.Whilegivinganswerskeepin
mindthesectorthecompanyisoperating.

Questions.

(i)Outlinetheprocessofstaffingthecompanyshouldfollow.

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(ii)Whichsourcesofrecruitmentthecompanyshouldrelyupon.
Givereasonsforyourrecommendation.

(iii)Whichmethodsoftraininganddevelopmentshouldthe
companyinitiate?Explaingivingreasons.

28 ‘Newrange’isachainofdepartmentalstoresinIndiawith56 5+1=6

outlets.Itsellsthebestproductsatthelowestprice.TheHuman

Resourcedepartmenttakescaretoselect,train,motivateand

retaintheemployees.Currently,ithas170fulltimeemployees

and30parttimeemployees.Fortop-levelmanagement,

employeesarerecruitedthroughprivateconsultants.These

professionalrecruiterscanenticetheneededtopexecutives

from othercompaniesbymakingtherightoffers.Employees

appointedattheentrylevelarerecruitedthroughwalk-in.For

that,anoticeisplacedonthenoticeboardspecifyingthedetails

ofthejobsavailable.‘Newrange’alsoencouragespresent

employeesortheirfriendsand

relativestorefercandidates.Theyalsovisitsomeofthereputed
educationalinstitutionstohiresomeofthemosttalentedand
promisingstudentsasitsemployees.‘Newrange’shifts
workforcefrom surplusdepartmentstothosewherethereis
shortageofstaffinsteadoflayingthem off.

Explainthevariousinternalandexternalsourcesofrecruitment
usedby‘Newrange’torecruititsemployees.Alsonameone
moretypeofeachofinternalandexternalsourceofrecruitment.

29 ZemimaLtd. isahighlyreputedcompanyandmanypeople 6
wantedtojointhiscompany.Theemployeesofthisorganization
areveryhappyandtheydiscussedhow theycameincontact
withthisorganization.

AmansaidthathewasintroducedbythepresentSales

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Manager,Mr.John. 6

Benusaidthathehadappliedthroughthenewspaperand
hewasappointedasH.RManager.

Vaibhavsaidthathewasneitherrelatedtoanyofthe
employee of the organization nor there was any
advertisementinthenewspapereventhenhewasdirectly
calledfrom IIM Ahmadabadfrom wherehewasaboutto
completehisMBA.

(a)The above discussion is indicating an important
function of management.Name the function of
management.

(b)Themanagementfunctionidentifiedinpart(a)follows
aparticularprocess.Explainthestepofthisprocess
whichisbeingdiscussedintheabovepara.

30 ThereweretwovacanciesforthepostofAssistantManagerin
‘GyanElectricsPrivateLtd.’‘Parth’theHumanResources
Manageridentifiedonesuitablecandidate‘Vishwas’from within
theorganizationandpromotedhim tothepostofAssistant
Manager.Foranotherpost,theManager‘Parth’tookhelpofa
placementagencyandselected‘Saleem’.Aftersixmonths,Parth
observedthat‘Vishwas’s’performancewasmuchbetterthan
‘Saleem’s’performancethough‘Vishwas’waslessqualifiedthan
‘Saleem’.Hence,‘Parth’decidedthatinfuturehewillnotmake
anyappointmentwiththehelpofanoutsidesource.

Explainanyfourreasonsonthebasisofwhich‘Parth’would
havetakentheabovedecision.

Q.NO. ANSWERS MARKS

ANSWER
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1 False 1

2A 1

3 False 1

4A 1

5 Placement. 1

6 Promotion 1

7 Anemploymentinterviewisaformal,in-depthconversation 1
conductedtoevaluatetheapplicant’ssuitabilityforthejobinthe
processofselection.Atthesametimetheintervieweemayalso
seeksinformationfrom interviewer(ifneeded).

8B 1

9A 1

10 (a)Staffing 1

(b) Externalsourceofrecruitment(recommendationofthe

employees)

11 1.Selectionisaprocessofchoosingfrom amongthepoolof 1.5+1.5=

prospectivejobcandidatesdevelopedatthestageof 3

recruitment.

2.Placementandorientationreferstoemployeesoccupyingthe
positionorpostforwhichthepersonhasbeenselectedand
introducingtheselectedemployeestootheremployeesand
familiarizinghim withtherulesandpoliciesoftheorganization.

12 3
1.The‘Staffing’functionofmanagementisbeingperformed
bythefirm.

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2.Recruitmentistheconceptusedbythefirm toattract 3
moreworkerstothefirm.
Thefirm isplanningtousetheexternalsourceof
recruitmenti.e‘Recommendationofpresentemployees’to
attractmoreworkerstothefirm.

3.ThetwovaluesthatarebeingfollowedbyJacobBrosare:

 Generatingemployment
 Optimum utilisationofresources.

13 SourcesofrecruitmentbeingusedbyGaneshforfillingupthe
variousjobpositionsare:(Anytwo)

(i)Recommendationofemployees

‘Hisfatherrequestedhim toappointhisfriend’sson,Prem asan
accountantwhoiswellqualifiedforthispost’

Inthissourceofrecruitment,applicantsareintroducedby
presentemployeesortheirfriendsandrelatives.Such
employeesarelikelytobegoodemployeesastheirbackground
issufficientlyknown.

(ii)LabourContractors

‘Earlier,Prem hadabusinessofprovidingunskilledworkersto
differentorganisationsfrom remoteareasofthecountry’

Itisasourceofrecruitmentinwhichthelabourcontractor
maintainsaclosecontactwiththelabourersandcanprovidethe
requirednumberofunskilledworkersatshortnotice.

(iii)CampusRecruitment

‘FortheappointmentofthetwoChefs,Ganeshapproacheda
renownedHotelManagementInstituteandwassatisfiedwith
theChefsprovidedbytheinstitute’

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Itisasourceofrecruitmentinwhichorganisationsmaintaina 3
closeliaisonwitheducationalinstitutionslikeuniversities, 3
vocationalschoolsandmanagementinstitutestorecruit 4
qualifiedpersonnelfortechnical,professionalandmanagerial
jobs.

14 .(a)ApprenticeshipTraining

(b)BenefitswhichDavidcouldgetonbeingtrained:(Anytwo)

(i)Itmayleadtohispromotionandcareergrowthdueto
improvedskillsandknowledge.

(ii)Itwillhelphim toearnmoreduetoimprovedperformance.

(iii)Itwillreduceaccidentsashewillbemoreefficienttohandle
machines.

(iv)Itwillincreasehissatisfactionandmorale.

15 TwotypesofteststhatMrMurthycanusetomeethis
requirementsare:

(i)PersonalityTest

Itprovidescluestoaperson’semotions,reactions,maturity,
valuesystemsetc.Theyprobetheoverallpersonalityandare
difficulttodesignandimplement.

(ii)IntelligenceTest

Itmeasuresthelevelofintelligencequotientofanindividual.Itis
anindicatorofaperson’slearningabilityortheabilitytomake
decisionsandjudgments.

16 Trainingshouldbeprovidedtotheemployeestodeveloptheir
skillsandabilitiesforproducingqualityproductsbyusingthese

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hi-techmachines.
Thebenefitsofimpartingtrainingtotheemployeeareas
follows:

1.Bettercareer: Trainingleadstobettercareeropportunities
fortheemployeesasithelpstoimprovetheirskillsand
knowledgeofdoingthejob.

2.Increasedearnings: Trainingleadstoincreased
performancebytheemployeestherebyhelpingthem to
earnmore.

3.Increasedefficiency: Trainingmakestheemployeesmore
efficientinhandlingmachinesandlesspronetoaccidents.

4.Improvedmotivation: Trainingincreasesthesatisfaction 4
andmoraleofemployeestherebymotivatingthem towork
withgreaterenthusiasm.

17 HumanResourceManagementincludesmanyspecialised
activitiesanddutieswhichthehumanresourcepersonnelmust
perform.Thesedutiesarestatedbelow:

 Recruitmenti.e.,searchforqualifiedpeopleand
stimulatingthem toapplyforthejobwithinthe
organisation.

 Preparejobdescriptionsbyanalysingjobs,collecting
informationaboutjobsetc.

 Developingsuitablecompensationandincentiveplansfor
theemployees.

 Designingappropriatetraininganddevelopmentof
employeestofosterefficientperformanceandcareer
growth.

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18 A.Trainingofemployees 4
4
B.1.Helpstoadaptchanges
4
2.Betterperformance

3.Helpsinsolvingoperationalproblems

19 (a)CampusRecruitment

(b)InductionTraining

Itisatypeoftraininggiventohelpthenewemployeeinsettling
downquicklyintothejobbybecomingfamiliarwiththepeople,
thesurroundings,thejobandthebusiness.

(c)WaysinwhichProjectReadinessProgram canbenefitXeno
Ltd.:(Anytwo)

(i)Avoidingwastageofeffortsandmoneyastrainingis
systematiclearning,betterthanhitandtrialmethods.

(ii)Enhancingemployeeproductivitybothintermsofquantity
andqualityleadingtohigherprofits.

(iii)Equippingthefuturemanagertotakeoverinanemergency.

(iv)Reducingemployees’turnoverasitincreasesemployee
moraleandreducesabsenteeism.

(v)Helpingtheorganisationinobtainingeffectiveresponseina
fastchangingenvironment

20 .(a)StepsperformedbyVandanaPublicSchoolintheprocess
ofidentifyingandchoosingthebestcandidate:

(i)PreliminaryScreening

(ii)SelectionTests

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(iii)EmploymentInterview

(b)Tradetestwasconductedbytheschooltomeasurethe
existingskillspossessedbythecandidates.

21 1+4=5
1.Staffingisthefunctionofmanagementthathasbeen

overlookedbyNakul.

Staffingistheprocessofmanningtherolesdesignedinto

theorganisationalstructure.Itisconcernedwith

obtaining,utilisingandmaintainingasatisfactoryand

satisfiedworkforce.

2.Theimportanceofthestaffingfunctionofmanagementis
describedbelow:

 Ithelpsindiscoveringandobtainingcompetent
personnelforvariousjobswithinanorganisation.

 Byputtingrightpersonontherightjob,itleadstoa
higherperformanceoftheemployees.

 Itensuresthecontinuoussurvivalandgrowthofthe
enterprisethroughthesuccessionplanningfor
managers.

 Ithelpstoensureoptimum utilisationofthehuman
resources.Byavoidingovermanning,itprevents
under-utilisationofpersonnelandhighlabourcosts.
Atthesametimeitavoidsdisruptionofworkby
indicatinginadvancetheshortagesofpersonnel.

 Itimprovesjobsatisfactionandmoraleofthe
employeesthroughobjectiveassessmentandfair
rewardingfortheircontribution.

137/190

22 5
1.The‘Staffing’functionofmanagementisbeingperformed
bythefirm.
2.Recruitmentistheconceptusedbythefirm toattractmore
workerstothefirm.
Thefirm isplanningtousetheexternalsourceof
recruitmenti.e‘Recommendationofpresentemployees’to
attractmoreworkerstothefirm.
3.ThetwovaluesthatarebeingfollowedbyJacobBrosare:

 Generatingemployment
 Optimum utilisationofresources.

23 5
1.Theinternalandexternalsourcesofrecruitmentusedby
SenorEnterpriseLtd.tofilluptheabovestatedvacancies
arestatedbelow:

 ThevacancyforthepostofHumanResource
ManagerhasbeenfilledupthroughPromotion.

 ThevacancyforthepostofMarketingHeadhasbeen
filledupthroughthePlacementAgenciesand
ManagementConsultants.

 ThevacancyforthepostofAssistantManagerhas
beenfilledupthroughCasualCallers.

Therelativemeritofeachoftheinternalandexternal
sourcesofrecruitmentusedbySenorEnterpriseLtd.tofill
uptheabovestatedvacanciesarestatedbelow:

 Promotion: Itbooststhemoraleofnotonlythe
employeewhoispromotedbutalsoofother
employeesastheygetanassurancethattheir
competencewillalsoberecognisedinduecourse.

 PlacementAgenciesandManagement

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Consultants providespecialisedservicestothe
organisationstorecruittechnical,professionaland
managerialpersonnelatmiddleandtoplevel.
 CasualCallers asasourceofrecruitmentreduces
thecostofrecruitingworkforceincomparisonto
othersources.

24 Benefitsoftrainingtotheorganisation: 5

(i)Itavoidswastageofeffortsandmoneyastrainingis
systematiclearning,betterthanhitandtrialmethods.

(ii)Itenhancesemployeeproductivitybothintermsofquantity
andqualityleadingtohigherprofits.

(iii)Itequipsthefuturemanagertotakeoverinanemergency.

(iv)Itreducesemployees’turnoverasitincreasesemployee
moraleandreducesabsenteeism.

(v)Ithelpsinobtainingeffectiveresponseinafastchanging 5
environment.

25 RemainingstepsthatMr.Ramanshouldtaketocompletethe
selectionprocessare:

(i)EmploymentinterviewandReferenceandbackgroundchecks.

(ii)Selectiondecision.

(iii)Medicalexamination.

(iv)JobofferandContractofemployment.

26 1+5=6
(a)InterestTests:Interesttestsareusedtoknowthepattern
ofinterestsorinvolvementofaperson.

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(b)Thefurtherimportantstepsintheprocessofselection,
afterconductingassessmenttestsareasfollows:

 EmploymentInterview:Itisaface-to-faceinteraction
betweentheinterviewersandprospectivecandidate.
Itinvolvesaformal,in-depthconversationthatis
conductedtoevaluatetheapplicant’ssuitabilityfor
thejob.

 ReferenceandBackgroundChecks:Atthetimeof
fillingupofthejobapplicationform,theprospective
candidatesarerequiredtoprovidenames,addresses,
andtelephonenumbersofreferencesforthepurpose
ofverifyinginformationandgainingadditional
informationabouthim/her.

 SelectionDecision:Thefinaldecisionaboutthe
selectionismadefrom amongthecandidateswho
passthetestsandinterview.

 MedicalExamination:Aftertheselectiondecision
andbeforethejobofferismade,thecandidateis
requiredtoundergoamedicalfitnesstest.

 JobOffer:Thenextstepintheselectionprocessis
joboffer,giventothoseapplicantswhohavepassed
alltheprevioustests.

 ContractofEmployment:Aftercandidateacceptsthe
joboffer,acontractofemploymentisissued.Basic
informationthatshouldbeincludedinawritten
contractofemploymentwillvaryaccordingtothe
levelofthejob,butitwillincludeinformationlikejob
title,duties,responsibilities,dateofjoining,payand
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allowances,etc. 2+2+2=6
5+1=6
27 (i)Processofstaffingthecompanyshouldfollow:
(a)Estimatingthemanpowerrequirements
(b)Recruitment
(c)Selection
(d)Placementandorientation
(e)Traininganddevelopment
(ii)Thecompanyshouldfocusonexternalsourcesof
recruitmentbecauseofthefollowingreasons:
(a)Qualifiedpersonnel
(b)Widerchoice
(c)Freshtalent
(d)Competitivespirit
(iii)Companyshouldpreferthefollowingmethodsoftraining
anddevelopment:
(a)Apprenticeshipprogramme
(b)Vestibuletraining

28 Sourcesofrecruitmentusedby‘Newrange’:
(i)Internal
Transfers
(ii)External
PlacementAgenciesandManagementConsultants
DirectRecruitment
RecommendationsofEmployees
141/190

Campusrecruitment 6
6
(withexplanation)

Nameofonemoretypeofbothsourcesofrecruitment

29 Trainingofemployees

Benefitstotheorganizationoremployees:

(i) Avoidwastageofeffortandmoney
(ii) Enhanceemployeesproductivity
(iii) Equipsfuturemanagers.
(iv) Increase employee morale and reduces

absenteeism
(v) Obtaining effective response to fast

changingenvironment.
(vi) Improve skill and knowledge of the

individual.
(vii) Increasedperformancebytheindividual.
(viii) Employeemoreefficientlyhandlemachines
30 Reasonsonthebasisofwhich‘Parth’wouldhavetakenthe
decisionnottomakeappointmentwiththehelpofanoutside
sourceare:(anyfour)

(a)Internalsourcesaremorereliablewayofrecruitmentsince
thecandidatesarealreadyknowntotheorganisationwhereas
externalsources.

(b)Ifinternalsourceareused,thereisnoneedforinduction
trainingastheemployeesarealreadyfamiliarwiththe
organisation.

(c)Internalsourceshelptoimprovethemotivation,loyaltyand
satisfactionlevelofexistingemployees.

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(d)Promotionatahigherlevelmayleadtoachainof
promotionsatlowerlevelsintheorganisation.
(e)Theysimplifytheprocessofselectionasthecandidatesare
alreadyknowntotheorganisation.
(f)Theyhelpinadjustmentofsurplusstaffinthosedepartments
wherethereisshortageofstaff.
(g)Fillingofjobsinternallyischeaperascomparedtogetting
candidatesfrom externalsources.

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CHAPTER:DIRECTING

Q.NO. QUESTION MARK
S

1 Inautocraticleadershipstyleonly---------------communicationisdone 1
withsubordinates.

2 Therearemanytheoriesofleadership---------and-------------. 1

3 A…………..needcannolongermotivateaperson. 1

4 Obstructionorhindrancetocommunicationlikepoortelephone 1
connection,inattentivereceiversetc.aretermedas--------------.

5 Otherfunctionsofmanagementprepareasettingforaction,while 1
________functioninitiatesaction. 1
1
6 StabilityofincomeisanexampleofBasicPhysiologicalNeeds.
(True/False) 1

7 Productivitylinkedwageincentivesincluderegularincrementsinthe
payeveryyearandenhancementofallowancesfrom time-to-time.
(True/False)

8 Ifthereistwowayinformationflowsbetweenthesuperiorand
subordinatethentherewillbepositivereactionofemployees.
(true/False)

9 Leadershipneverdeterminestheabilityofanindividualtoinfluence 1
others.
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10 Somemanagersmaybeeffectiveleaderswithouteverhavingtakena 1
courseortrainingprogram inleadership. 1
1
11 Leadership: 1
(a)Influencingthebehaviorofothers 1
(b)Maintainbadinterpersonalrelationship 1
(c)Influenceemployeestoinvoluntarily
(d)Helpsinplanning

12 Nointerferenceofsuperiorintakingdecisionbysubordinatesin
(a)Autocraticleadership
(b)Democraticleadership
(c)Freereinleadership
(d)Paternalisticleadership

13 Obedienceoforderanddisciplineisfindin
(a)Autocraticleadership
(b)Democraticleadership
(c)Freereinleadership
(d)Paternalisticleadership

14 Fullutilizationofpotentialandcapacityofemployeescanbeseenin
(a)Autocraticleadership
(b)Democraticleadership
(c)Freereinleadership
(d)Paternalisticleadership

15 Directingtakesplacewhereversuperior-subordinaterelationsexist.

Identifythecharacteristichighlightedintheabovestatement-

(a)Directingisacontinuousprocess
(b)Directingflowsfrom toptobottom
(c)Directingtakesplaceateverylevel

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(d)Directinginitiatesaction 1
16 Whichofthefollowingistheappropriateorderofhierarchyofneeds
1
accordingtoAbraham Maslow? 1
(a)SafetyNeeds→ Psychologicalneeds→ Affiliationneeds→ 1
Esteem Needs→ SelfActualisationneeds
(b)Psychologicalneeds→ SafetyNeeds→ Affiliationneeds→
Esteem Needs→ SelfActualisationneeds
(c)Affiliationneeds→ SafetyNeeds→ Psychologicalneeds→
Esteem Needs→ SelfActualisationneeds
(d)Psychologicalneeds→ SafetyNeeds→ Esteem Needs→
Affiliationneeds→ SelfActualisationneeds

17 Useof‘TechnicalJargon’iswhichtypeofcommunicationbarrier?
(a)Organisationalbarrier
(b)Psychologicalbarrier
(c)Semanticbarrier
(d)Personalbarrier

18 ‘Lackofproperincentive’isabarriertocommunication.

Identifythetypeofbarriertowhichitbelongs-

(a)Personalbarrier
(b)Organizationalbarrier
(c)Psychologicalbarrier
(d)Semanticbarrier
19 Whichofthefollowingisnotameasuretoovercomebarrierto
effectivecommunication?
(a)Conveythingsofhelpandvaluetolisteners
(b)Communicateaccordingtotheneedsofreceiver
(c)Consultothersbeforecommunicating
(d)Fearofchallengetoauthority

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20 Whichofthefollowingisafinancialincentive? 1

(a)Jobsecurity 1
(b)Stockoption
(c)Jobenrichment
(d)Employeeparticipation
21 Whichisnottheadvantageofformalcommunication?

(a)Verysystematic 1
(b)Friendlyrelationship
(c)Orderlyflowofinformation
(d)Easytoexercisecontrol
22 Whichtwopartiesareinvolvedincommunicationprocess?

(a)Encoder&Decoder

(b)Superior&Subordinate

(c)Sender&Receiver

(d)Buyer&Seller

23 PayalistheChiefExecutiveOfficerofareputedcompany.She 1.5+1.

introducedappropriateskilldevelopmentprogrammers’andasound 5=3

promotionpolicyfortheemployeesofhercompany.Tomotivateand

retainthebesttalentinthecompany,shedesignedthejobsofthe

managerswhichincludegreatervarietyofworkcontent.Identifyand

explainthetwoincentivesintroducedbypayaltomotivatethe

employeesofthecompany.

24 Lakhan,anexpertintheareaofFinancialManagement,sentane-mail 3
tohissubordinateThomasaboutanewprojectforaclientinFrance.
Though,themailwasinEnglish,alanguageknowntoThomas,he
wasnotabletounderstandtheactualmeaningofmanywordsused
inthemail.HewasalsonotaspecialistinthefieldofFinancial
Management.Notonlythis,someportionsofthemailweretranslated
from FrenchtoEnglishinsuchamannerthatmanymistakescreptin,

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causingdifferentmeaningtothemessage.

(a)IdentifytwospecificbarrierstocommunicationinLakhan’se-mail.

(b)StateanytwomeasureswhichcanbetakenbyLakhanto
overcomethebarriersidentifiedinpart(a)abovetoimproveinfuture
theeffectivenessofhiscommunication.

25 Acompanyhasemployeesfrom differentcountries.Theyspeak 1+1+2

differentlanguages.Oncethemanagementdecidedtodraftthe =4

messageofcongratulatingtheemployeesoftheNewYorkintheir

nativelanguages.Forthistheyhadtotranslatethesamemessagein

differentlanguages.Onthe5thofJanuarytherewasastrikeby

peoplebelongingtoaparticularcountryshowingresentmentonthe

wronglanguageusedinthegreetings.

(a)Identifyandstatethecommunicationbarrierdiscussedabove.
(b)Statethecategoryofthiscommunicationbarrier.
(C)Explainanytwoothercommunicationbarrierofthesame
category.

26 KunaljoinedasashoplevelmanagerintheProductiondepartmentof 4
atextilecompanyintheyear2005.Becauseofhisgoodwork,he
becametheDeputyProductionManagerofthecompanyinthe

year2010.Hehadstatusandprestigeandwaswellrespectedbyall
inthecompany.On1stMarch,2019,hewaspromotedasthe
GeneralManagerofthecompany.Kunalwasveryhappyonhis
promotionasnowhehadbecomewhathewascapableofbecoming.
Asagoodmanager,Kunaldecidedtomotivatehissubordinates,after
understandingtheNeedHierarchytheorywhichisbasedonvarious
assumptions.Herealisedthatpeople’sbehaviourisbasedontheir
needsandthemanagercaninfluencethebehaviourofhisemployees
bysatisfyingtheirneeds.

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(a)OneoftheassumptionsofNeedHierarchytheoryisstatedinthe
aboveparagraph.Statetheotherthreeassumptionsofthistheory.

(b)StatetheneedsofKunalwhicharebeingsatisfiedthrough
promotion.

27 ArunisworkinginamultinationalcompanyinGurgaon.Hewas 2+3=5

runningtemperatureforthelastmanydays.Whenhisbloodwas

tested,hewasfoundpositivefordenguewithaverylowplatelet

count.Therefore,hewasadmittedinthehospitalandablood

transfusionwasadvisedbythedoctors.Oneofhiscolleaguessenta

textmessageaboutittohisimmediatesuperior‘Mr.Narain’.‘Mr.

Narain’inturnsentatextmessagetotheemployeesofthe

organisationrequestingthem todonatebloodforArun.Whenthe

GeneralManagercametoknowaboutit,heorderedforfumigationin

thecompanypremisesandcleanlinessofthesurroundings.

(a)From theaboveparaquotelinesthatindicateformalandinformal
communication.

(b)Stateanythreefeaturesofinformalcommunication.

28 ‘AlfaLtd.’wasdealinginrenewableenergy.Togetthebusiness,the 5
team leaderandhisteam usedtotraveltodifferentstatestogive
presentationtotheirclients.Asperthepolicyofthecompany,the
leaderusedtotravelbyair,whereashisteam travelledbyroad/train.
Itwasnotonlytimeconsumingbutalsoattimeforcedfemaleteam
memberstotravelalone.

Asaresult,thesubordinateswerenotactingindesiredmannerto
achieveorganisationalgoals.TheCEOcametoknowaboutit.He
calledtheteam leader,discussedthematterwithhim anddecidedto
changethetravelpolicyofthecompany.Itwasdecidedthatallthe
membersincludingtheleaderswouldtraveltogetherinfutureand
wouldusefullyutilizethetravellingtimeindiscussionwiththe

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subordinatesaboutpresentationtobegiventotheclients.Thismade
apositiveimpactandeverymemberoftheteam startedactingina
mannerasdesiredbytheteam leader.

Statethefeaturesoftheelementofthefunctionofmanagement
usedbytheCEO.

29 Threefriends,Rajat,RamanandAnsh,aftercompletingtheirMBA 3+3=6

from areputedbusinessschoolatMumbai,werediscussingabout

thetypeoforganisationtheywouldliketojoin.Rajatwasveryclear

thathewouldliketotakeupagovernmentjobasitgivesstability

aboutthefutureincomeandworkwhichwillhelphim toworkwith

greaterzeal.Itwillalsoprovidehim pensionwhenhewillretirefrom

hisservice.Ramanwantedtoworkinacompany,whichhas

appropriateskilldevelopmentplansforitsemployeesandhelpsthe

employeestogrowtohigherlevelsintheorganisation.Inadditionto

this,thecompanyshouldalsoprovidefacilitieslikehousing,medical

aid,etc.Anshsaidthathewouldprefertoworkinanorganisation,

whichhasthecultureofindividualautonomy,isconsiderateto

employeesandprovidestheemployeeswithopportunityforpersonal

growthandameaningfulworkexperience.

(a)Identifythevariousfinancialandnon-financialincentives
discussedbythethreefriendsintheaboveconversation.

(b)Explainthreeothernon-financialincentiveswhichwerenot
discussedbyanyoneofthem.

30 PratapSinghistheChiefExecutiveOfficerofNissarEnterprises.Itis 6
anautomobilepartsmanufacturingcompany.Theenterprisehasa
functionalstructure,inwhichjobsofsimilarnaturehavebeen
groupedtogetherasProduction,Finance,MarketingandHuman
Resource.NissarEnterpriseshasitsmanufacturingunitatManesar.
Thefactoryhasbeenplaguedwithmanyproblemsforalongtime

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