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Subject Enrichment Material Class XII BUSINESS STUDIES

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Published by KV Khichripur, 2020-02-20 00:18:44

Subject Enrichment Material Class XII BUSINESS STUDIES

Subject Enrichment Material Class XII BUSINESS STUDIES

2. Whathasbeentheimpactofthesechangeswithregardsto
globalizationandprivatization?

43 Twobigbannermovieswerescheduledtobereleasedonthesame 3
date.Onthelastmovementreleaseofoneofthemovieshastobe
postponedduetooppositionofagroupofpeopleduetosomeunethical
contentsrelatedtotheirreligionwasshowninthethatmovie.Theother
movie released on time and made huge profitas there was no
competitionandmoviewhichwaspostponedsufferedloss.

1.Whichfeatureofbusinessenvironmentishighlightedhere.

2.Identifythe dimension ofbusiness environment,which
delayedthereleaseofmovie.

44 Afterwinningtheelection,PrimeMinisterMr.NarenderModilauncheda 5
Campaignof“SwachhBharat”andinvitedvariouscelebritiestobeapart
ofthisAbhiyaan.Thisspreadawarenessamongthepeopleinsociety
andingeneral,peoplestartedbecomingmorecarefulandawareabout
thecleanlinessaroundtheirarea.Tocontinueitsimpact,anew service
taxforSwachhBharatwasalsostarted.Thegovernmentisplanningto
importnewandbettertechnologytoadoptnewmethodsoftreatingthe
garbageandwaste.

State the various dimension of business environment
mentionedintheaboveparaquotingthelinesfrom theabove
para.

45 EvenafteropeningupofIndianEconomy,foreigncompaniesfoundit 1
extremelydifficulttocutthroughthebureaucraticandredtapism in
governmentoffices.Thisdiscouragesthem from investinginIndia.

Identifythedimensionofenvironmentmentioninabovepara.

46 JustafterthedeclarationofLokSabhaElectionsin2019,theBombay 1
StockExchangeIndexroseby1000points.

51/190

Identifythedimensionofbusinessenvironment.

47 MamtaRiceFoodLtd‟isawellknowriceproducingcompany.Thesales 5
havebeenfallingdownfrom thebeginningoftheyear.Themanaging
directorMR.Bhuvanisworriedaboutthissituation.Withaview tofind
outthesolutionofthisproblem hemadeateam tofindbutthereasons
fordownfallofsales.Theteam conductedthesurveyandgavefollowing
fourreasonsforthedownfallofcompany’ssale.

1.Onaccountofincreaseinexportdutymadebythegovernment,the
foreigndemandhasgonedown.

2.Duetoavailabilityofothereatablesubstitutethetasteofpeopleis
divertedfrom rice.

3.The competitor’s imported new technology machine and are
producingbetterqualityrice.

4.Due to strain with neighbouring country’s governmentand our
Country’sgovernmentexportiseffected.

IdentifythedimensionofBusinessEnvironmentdiscussedintheabove
case.

48 Withchangesintheconsumptionhabitsofpeople,Neelesh,whowas 3
runningasweetshop,shiftedtothechocolatebusiness.Ontheeveof
Diwali,he offered chocolates in attractive packages atreasonable
prices. He anticipated huge demand and created a website
chocolove.com fortakingordersonline.Hegotalotofordersonlineand
earnedhugeprofitsbysellingthechocolate.

Identifyandexplainthedimensionsofbusinessenvironmentdiscussed
intheabovecase.

49 A recentratecutintheinterestonloansannouncedbythebanks 3
encouragedAmit,asciencestudentofProgressiveSchool,totakea

52/190

loanfrom StateBankofIndiatoexperimentanddevelopcarstobe
poweredbyfuelproducedform garbage.Hedevelopedsuchacarand
exhibiteditintheScienceFairorganizedbytheDirectorateofEducation.
Hewasawardedthefirstprizeforhisinvention.

Identifyandexplainthedimensionsofbusinessenvironmentdiscussed
intheabovecase.

50 AccentelectronicsLtd.‟wasoperatingitsbusinessinMalaysia.The 3
companystartedexportingitsproductstoIndiawhenthePrimeMinister
announcedrelaxationinimportdutiesonelectronicitems.Thecompany
appointedretailersinIndiawhohaddirectonlinelinkswiththesuppliers
toreplenishstockswhenneeded.

Identifyandexplainthedimensionsofbusinessenvironmentdiscussed
intheabovecase.

51 AsperthedirectionsissuedbytheSupremeCourt,thegovernment 3
passedanordertobanthesaleoftobaccoproductswithintheareaof
200metersofalleducationalinstitutionsas:

1.Itsconsumptionsinjurioustohealth.

2.Peoplearebecomingmoreconsciousabouthealthandfitness.

Thisindicatesthegovernment‟sattitudetowardsthisbusiness.

Identifythebusinessenvironmentunderthreedifferentdimensionsby
quotingfrom aboveparagraph.

52 MakeinIndiaisaninitiativelaunchedbytheGovernmentofIndiato 5
encouragenationalandmultinationalcompaniestomanufacturetheir
productsinIndia.Itfocusesonjobcreationandskillenhancementand
isintwentyfivesectorsoftheeconomy.Undertheinitiative,brochures
onthesesectorsandawebportalwerereleased.Theinitiativeaimsat
highqualitystandardsandminimizingtheimpactontheenvironment.It

53/190

alsoseekstoattractforeigncapitalinvestmentinIndia.

Incontextoftheabovecase:

1.Identify the various dimensions ofbusiness environmentbeing
referredtobyquotinglinesfrom theparagraph.

2.ListanytwovalueswhichtheGovernmentofIndiawantstoconvey
throughthisinitiative.

53 India’sretailsectorhasbeenundergoingstructuralchangesforthelast 3
twodecades.Ononehand,the„mallculture‟hasgraduallybecomea
wayoflife,especiallyinthemetrosandmini-metros.Ontheotherhand,
thereisacceleratedgrowthine-businessascustomersalsopreferto
buyproductsandservicesviatheInterest,telephoneandtelevision.
However,operatingineitherofthesegmentsismarkedbythepresence
ofstrongcompetitors.

Identifythecomponentsofspecificforcesandgeneralforcesbeing
discussedintheaboveparagraph..

54 TomarkthecelebrationsofInternationalFamilyDayon16thmay2016,5
Kurkureflagged offIndia’sfirstfamilyfood train – KurkureFamily
ExpressatNew Delhi.Thetraintookfortyfamiliesonafunculinary
experienceofalifetimethroughaneight-dayjourneyacrossfourteen
statesinIndia.Awholelotoffunactivitieswerehostedonthetrainby
thetravelandfoodanchorsRockyandmayor.

Thefamilieswereselectedthroughanonlinecampaign,Chatpatafamily
photos‟.Thecontestattractedapproximately1,000entries,ofwhich40
entriesthatgelledwiththebrand’simagewereselected.

Thecoreideaofthecampaignwastobringfamiliesfrom acrossIndia
togetheroverajourneylikethis.Asintoday’stime,everyoneisbusy
withtheirlifethefamilymembersmayfeeldisconnectedwitheach
other.

54/190

Identifyandexplainthevariousdimensionsofbusinessenvironment
being referred to the in the above case byquoting linesfrom the
paragraph.

55 Intheyear2016,theStateGovernmentofKeralahadmadeitmandatory 6
foranganwadis hostels and canteens in educationalinstitutions to
securetheFoodSafetyandstandardsAuthorityofIndia(FSSAI)licence
to ensure food safety.As the educationalinstitutions also get
categorized asfood businessoperatorsin theeventoftheannual
turnoverofthehostels,theyrunexceedingRs.12lakhperannum.

Incontextoftheabovecase:

1.Identifyandexplainthevariousdimensionsofbusinessenvironment
beingreferredtohere.

2.ListanytwovalueswhichtheStateGovernmentofKeralawantsto
conveythroughthisinitiative.

56 Postagestampshavebeenunveiledtocommemorate140yearsof 6
existence ofthe country’s firststock exchange the BombayStock
Exchange(BSE).ThesettingupofBSEisconsideredtobethegreatest
revolutionthattookplaceinthefinancialmarketsinIndiaasitactsasa
keydriverforeconomicgrowthofacountry.Thisisduetothefactthat
thereexistsastrongcorrelationbetweeneconomicgrowthandcapital
accumulation.

Inthecontextoftheabovecase:

1.IdentifythedimensionofbusinessenvironmentofIndiabeingreferred
here.

2.Stateanythreefactorswhichbroadlyaffected thedimensionof
businessenvironmentofIndiaasidentifiedinpart(a)ofthequestion.

57 InMay2016,thegovernmenthadlaunchedaweb-basedapplication 5

55/190

which willprovide as opportunity to allthe industries dealing in
hazardouswastetoapplyonlineandgetonlinepermissionsforimport
andexportofcertaincategoriesofwaste,whichisforreuse,recyclingor
recoverywhileitwillalso helpauthoritiesinweb-basedprocessing,
generation and grant of various types of permissions to the
entrepreneurs and industries.Itis also aimed atimplementing the
conceptofpaperlessandgreenofficeandprovideinformationregarding
numberauthorizationsorconsentordergrantedbytheStatePollution
controlBoards(SPCBs).

Identifythevariousdimensionsofbusinessenvironmentbeingreferred
intheabovecase.

58 Bharatisrunninganicecream parlourinalocalmarket.Keepinginmind 6
thechangingperceptionsabouthealthamongthepeople,oneofhis
employeeAbhirajsuggeststohim thattheyshouldintroducearangea
flavouredyogurt.Bharatacceptshissuggestionasaresultboththe
imageandtheprofitabilityofhisbusinessincreases.

Inthecontextoftheabovecase:

1.Identifythefeatureofmanagementwhichisbeinghighlighted.

2.Statetherelateddimensionofthebusinessenvironment.

3.Nameandexplaintherelatedprincipleofgeneralmanagement.

59 TheGovernmentofIndiaannounced‘Demonetisation‘ofRs.500and 5
Rs.1,000currencynoteswitheffectfrom themidnightofNovember8,
2016.Asaresult,theexistingRs500andRs.1,000currencynotes
ceasedtobelegaltenderfrom thatdate.Newcurrencynotesof
denominationofRs500andRs2,000issuedbyRBIafter
announcement.Discuss“demonetisation”inlightofthelegaland
economicenvironment.

60 Withchangeintheconsumptionhabitsofpeople,Neeleshwhowas 6

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runningasweetsshopshiftedtochocolatebusiness.Ontheeveof
Diwaliheofferedchocolatesinattractivepackagesatreasonable
prices.Heanticipatedhugedemandandcreatedawebsite
chocolove.com fortakingordersonline.Hegotlotofordersonlineand
earnedhugeprofitsbysellingchocolates.Identifyandexplainthe
dimensionsofbusinessenvironmentdiscussedintheabovecase.

ANSWERS

Q.No. Answers Mark
s
1 (d) (ii)False 1
2 (a) 1
3 (i) True 1
4 (c) 1
5 (d) 1
6 (d) 1
7 (b) 1
8 (c) 1
9 (d) 1
10 (a) 1

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11 (d) 1

12 (d) 1

13 (c) 1

14 (a) 1

15 (c) 1

16 (a) 1

17 (a) 1

18 (a) 1

19 LegalRegulatoryEnvironment 1

20 Privatisationasareform isthereasonforthischangeinthegovernment 1
policy.

21 •“ComestoIndiatostartanewbusiness...launchesanewproductine- 3
learningforSeniorsecondaryschoolstudentsinCommercestream.”

1.Ithelpsinassistinginplanningandpolicyformulation.2.Ithelpsthe
firm toidentifyopportunitiesandgetthefirstmoveradvantage.

•“HisbusinessstartsflourishinginIndia.”

1.Ithelpsinimprovingperformance.

•“NowmoreIndiancompaniesenteredintothemarketwithdifferent
subjectsalso.”

1.Ithelpsthefirm toidentifythreatsandearlywarningsignals.

22 Riseinstockmarketindex(Sensex)iseconomicenvironment.But 3

Politicalenvironment(declarationofLokSabhaElections2014results))

ledtothisrise.

Twootherdimensionsofbusinessenvironment:
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1.LegalEnvironment:2.Technologicalenvironment:

23 1.Legalenvironment:2.Socialenvironment:3.Technological 3
environment:4.Economicenvironment:5.Politicalenvironment:

24 Technological. 3

25 Liberalization 1

26 Telecommunications,airlines,banking,insurance,etc. 1

27 1.Legalenvironment:2.Socialenvironment:3.Politicalenvironment:4. 4
Technologicalenvironment:5.Economicenvironment:

28 Theterm „BusinessEnvironment‟meansthesum totalofallindividuals, 4

institutionsandotherforcesthatareoutsidethecontrolofabusiness
enterprisebutthatmayaffectitsperformance.2.Theterm „threats‟
referstotheexternalenvironment,trendsandchanges

thatwillhinderafirm’sperformance.

“Throughananalysisreportofthebusinessenvironment,ithasbeen
broughttohisnoticethatinthecomingyears,shoppingatamallwillnot
beanecessityforthebuyersaspurchasescanbemadeonlinefrom
anywhereandatanytimewitheaseandattheconsumer’s
convenience.Hence,mallswillhavetoprovidemuchmorethan
shoppingtobeabletoattractcustomers.”

Theterm „opportunities‟referstothepositiveexternalorchangesthat
willhelpafirm toimproveitsperformance.

“Asaresult,thecompanygainsenormouslybygettingthefirstmover
advantage.”

29 ThemajorcomponentsofNewEconomicPolicyof1991thatarebeing 4
referredtoareasfollows:

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•Liberalization:Theeconomicreformssignaledtheendofthelicence-
permit-quotarajandwereaimedatliberalizingtheIndianbusinessand
industryfrom allunnecessarycontrolsandrestrictions.

“Moreover,beforetheinitiativewaslaunched,thelimitsofforeigndirect
investmentinvarioussectorshasbeenrelaxed.Theapplicationfor
licenceswasmadeavailableonlineandthevalidityoflicenceswas
increasedtothreeyears.Variousothernormsandprocedureswerealso
relaxedbythegovernment.”

•Globalization:Globalizationmeanstheintegrationofthevarious
economiesoftheworldleadingtowardstheemergenceofacohesive
globaleconomy.

“TheZEDmodelaimstomakeIndiathemanufacturinghuboftheworld
andpreventtheproductsdevelopedinIndiafrom beingrejectedbythe
globalmarket.”

30 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 5
abovecaseareasfollows:

1.PoliticalEnvironment:2.TechnologicalEnvironment:3.Social
Environment:

31 (i)Socialenvironmentwhichincludessocialforceslikecustomsand 5
traditions,

valuestrendsetc.

‘thiswasbecauseofincreaseinthenumberofworkingwomenandnon-
availabilityofhygienichome-cookedfood.’

(ii)Remunerationofemployees,whichstatesthattheoverallpayand

compensationshouldbefairtobothemployeesandtheorganization.

‘Thecompanywaspayinggoodsalaryandperkstoitsemployees.The
wageswerewithinthepayingcapacity...standardofliving.’

60/190

(iii)Valuesbeingcommunicatedbythecompanytothesocietyare:(Any
two)
1.Goodworkculture2.Goodbehaviourinhumaninteraction3.Concern
fortheemployees4.Respectforlaw
32 (i)Managementisadynamicfunction.
(ii)1.Initiative
Thisprincipleindicatesthatthesubordinatesshouldbeencouragedto
givesuggestionsandmakeandexecuteplanswithintheprescribed
limitsofauthority.
2.Spiritdecorps
Thisprinciplesuggeststhatmanagementshouldpromoteateam spirit
ofunityandharmonyamongtheemployees.
(iii)Benefitsofbusinessenvironment:
1.Ithelpsinassistinginplanningandpolicyformulation.
„...takesintoaccountthechangestakingplaceinbusinessenvironment
whiledeterminingplans.‟
2.Ithelpsinimprovingperformance.
„Heacceptschangesreadilyandgivesusefulsuggestionstohis
superior,whichresultsinreductionofcosts.Asaresult,company’s
profitsincrease.‟
(iv)Value:
•Team work
•Adaptability

61/190

33 Relativityistherelevantfeatureofbusinessenvironmentwhichisbeing 3
discussedabove.

34 1.Inter-relatednessistherelevantfeatureofbusinessenvironment 5
whichis

beingdiscussedabove.2.Thethreepointswhichhighlightedthe
importanceofbusinessenvironment

anditsunderstandingbymanagersaredescribedbelow:

1.Itenablesthefirm toidentifyopportunitiesandgettingthefirstmover
advantage:Thedynamicbusinessenvironmentprovidesnumerous
opportunitiesforabusinesstoevolveasperthechangingneeds.
Therefore,earlyidentificationoftheforthcomingopportunitieshelpsan
enterprisetobethefirsttoexploitthem insteadoflosingthem tothe
competitors.2.Ithelpsthefirm toidentifythreatsandearlywarning
signals:sometimesthe

changesintheexternalenvironmentmayposeasathreatandhindera
firm‟sperformance.Anawarenessaboutthebusinessenvironment
helpsthemanagerstoidentifysuchthreatsontimeandtakenecessary
decisionsandaction.3.Ithelpsintappingusefulresourcesasthe
enterprisedesignspoliciesthat

allowittogettheresourcesthatitneedssothatitcanconvertthose
resourcesintooutputsthattheenvironmentdesires.

35 (a)Businessenvironmenthelpsintappingusefulresources. 5

„Itassembledvariousinputslikefinance,machines,rawmaterials,etc.
from itsenvironment.‟

(b)(i)Socialenvironment

„...ithasbeendumpingitsuntreatedpoisonouswasteontheriverbank
whichhascreatedmanyhealthproblemsforthepeople.‟

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(ii)Legalenvironment

„...thecourtpassedanordertosealthemanufacturingunitofthe
company.‟

1.Valueoverlooked.

•Environmentprotection

•Concernforhumanlife

•Respectforlawandorder

•Socialresponsibility

36 1.Technological 6

environment

Itincludesforcesrelatingtoscientificimprovementsandinnovations
whichprovidenewwaysofproducinggoodsandservices,andnew
methodsandtechniquesofoperatingabusiness.2.Business
environmenthelpsafirm toimproveits

performance.

„Itresultedingrowthandprofitabilityofthecompany.‟3.Value
conservationofenergy

37 Featuresofbusinessenvironment: 6

1.Dynamicnature:„fashionandtasteoftheconsumersischangingata
fast

pace.‟2.Uncertainty:„Itisverydifficultforthecompanytopredict
futurehappening.‟3.Complexity:„Itisdifficulttoknowtheextentofthe
relativeimpactofthesocial,economic,political,technologicalorlegal
factorsondecreaseindemandofitsproductsinthemarket.

1.Toplevelmanagement2.Impactofgovernmentpolicychangeson
63/190

business:

1.Increasingcompetition:„Newcompetitorshaveenteredthemarket
withnew

designs.‟2.Moredemandingcustomers:„Customers‟demandis
increasing.‟3.Marketorientation:„itwasdecidedthattheywouldstudy
andanalyzethemarketfirsttoidentifycustomertastesandfashionand
thenmanufacturegarmentsaccordingly.Itwasalsodecidedtoincrease
expenditureonadvertising,after-salesservices,etc.‟

1.Businessenvironmenthelpsthemanagerincopingwithrapid
changes

38 1.Thefeaturesofbusinessenvironmentbeingreferredtointheabove 6
case

areasfollows:

•Dynamicnature:Itisdynamicinnatureandkeepsonchangingdueto
technologicalupgradations,shiftsinconsumerpreferencesorincrease
incompetitioninthemarket.

•Inter-relatedness:Alltheelementsofbusinessenvironmentareclosely
interrelated.Therefore,anychangeisoneelementmaynecessitate
correspondingchangesintheotherelementsaswell.

2.Thevariouscomponentsofgeneralforceswhichhaveledtoagrowth
intheorganicfoodmarketareasfollows:

1.Social:“risinghealthconsciousness,changinglifestyles”2.Economic:
“increaseindisposableincome”3.Technological:“growingavailability
oforganicfoodproductsinshoppingmalls,retailoutletsandonline.”

39 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtothe 6
inthe

abovecaseareasfollows:

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•Technologicalenvironment:Technologicalenvironmentincludes
forcesrelatingtoscientificimprovementsandinnovationswhich
providenewwaysofproducinggoodsandservicesandnewmethods
andtechniquesofoperatingabusiness.

•Legalenvironment:Legalenvironmentincludesvariouslegislations
passedbytheGovernmentadministrativeordersissuedbygovernment
authorities,courtjudgmentsaswellasthedecisionsrenderedby
variouscommissionsandagenciesateverylevelofthegovernment–
centre,stateorlocal.

•SocialEnvironment:Socialenvironmentincludesthesocialforceslike
customsandtraditions,values,socialtrends,society‟sexpectations
from business,etc.

1.ThetwovalueswhichtheCerebraIntegratedTechnologieswantsto
convey

throughthisinitiativeare:

1.Sustainabledevelopment2.Concernforenvironment.

40 1.ThedifferentstylesofmanagementinpracticeadoptedbyArunand 6
his

fatherreflectthatmanagementisanart.2.„Harmony,NotDiscord‟is
therelatedprincipleofscientificmanagement.3.Therelated
dimensionsofthebusinessenvironmentare:

•EconomicEnvironment:

•SocialEnvironment:

•TechnologicalEnvironment:

41 1.ThetwofunctionsofmanagementthatRishabhwillhavetoperform 3
inorder

65/190

tomanagehisbusinesssuccessfullyarePlanningandOrgnising.2.The
principleofmanagementwhichisbeingviolatedbyRishabhisEquity.3.
Therelateddimensionsofthebusinessenvironmentare:

1.LegalEnvironment2.PoliticalEnvironment3.EconomicEnvironment
4.SocialEnvironment5.TechnologicalEnvironment

42 1.Liberalization2.Othertworeforms:PrivatizationandGlobalization. 6

43 1.Explainrecentchangesinvariousenvironmentheads,i.e.,economic, 3

social,political,legalandtechnological.2.Explainthetopic,impactof
changeingovernmentpolicy/economicpolicy.

44 1.Featurehighlightedin.........‟relativity‟.2.Thedimensionis 5
........‟socialenvironment‟.

45 1.“Afterwiningelection.....campaignofSwachhBharat.” 5

PoliticalEnvironment

1.“Peopleinsociety.....aroundtheirarea.”2.SocialEnvironment3.“A
newservicetax.....started.”

EconomicEnvironment

1.“Importnewtechnology....Garbage.”

TechnologicalEnvironment

46 PoliticalEnvironment. 1

47 PoliticalEnvironment. 1

48 1.EconomicEnvironment2.SocialEnvironment 3

3.TechnologicalEnvironment4.PoliticalEnvironment.

49 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 3
abovecasesareasfollows:

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1.Socialenvironment:2.Technologicalenvironment.

50 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 3
abovecaseareasfollows:

1.PoliticalEnvironment:2.TechnologicalEnvironment.

51 Thevariousdimensionsofbusinessenvironmentbeingreferredtothein 5
theabovecaseareasfollows:

1.LegalEnvironment:”AsperthedirectionsissuedbytheSupreme
Court.‟2.PoliticalEnvironment:“Thegovernmentpassedanorderto
banthesaleof

tobaccoproductswithintheareaof200metersofalleducational
institutions.”3.SocialEnvironment:“Itsconsumptionisinjuriousto
healthandpeopleare

becomingmoreconsciousabouthealthandfitness.”

52 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtoin 3
the

abovecaseareasfollows:

1.PoliticalEnvironment:2.TechnologicalEnvironment:3.Economic
Environment:

1.ThetwovalueswhichtheGovernmentofIndiawantstoconvey
throughthis

initiativeare:

1.Highqualitystandards2.Concernforenvironment
53 Thecomponentsofspecificforcesdiscussedintheaboveparagraph 5

arethecustomersandcompetitors.

Thecomponentsofgeneralforcesdiscussedintheaboveparagraphis
thesocialandtechnologicalconditions.

67/190

54 Thevariousdimensionsofbusinessenvironmentbeingreferredtointhe 6
abovecaseareasfollows:

1.Technologicalenvironment:2.Socialenvironment.

55 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtoin 6
the

abovecaseareasfollows:

1.PoliticalEnvironment:2.Legalenvironment:

1.ThetwovalueswhichtheStateGovernmentofKeralawantsto
convey

throughthisinitiativeare:

1.Highqualitystandards2.Goodhealth

56 1.Economicenvironmentisthedimensionofbusinessenvironmentof 5
India

beingreferredhere.2.Thethreefactorswhichbroadlyaffectthe
economicenvironmentofIndia

arestatedbelow;

1.Stageofeconomicdevelopmentofthecountry.2.Theeconomic
structureintheform ofmixedeconomywhichrecognizesthe

roleofbothpublicandprivatesectors.3.Economicplanning,including
fiveyearplans,annualbudgets,andsoon

57 1.Thevariousdimensionsofbusinessenvironmentbeingreferredtothe 6
inthe

abovecaseareasfollows:

1.PoliticalEnvironment:2.TechnologicalEnvironment:3.Legal
Environment:4.SocialEnvironment:5.EconomicEnvironment:

68/190

58 1.ThefeatureofmanagementwhichisbeinghighlightedisDynamic.2. 5
TherelateddimensionofthebusinessenvironmentisSocial.3.The
relatedprincipleofgeneralmanagementisInitiative.

Initiativemeanstakingthefirststepwithself-motivation.Theworkers
shouldbeencouragedtodevelopandcarryouttheirplansfor
improvement.Suggestionsystem shouldbeadoptedintheorganization.

59 Meaningofdemonetisationincontextoflegalandeconomic 6
environment.

60 Dimensionsofbusinessenvironmentdiscussedhereare: 6

(i) SocialEnvironment:“withthechange………………..atreasonable
prices.”
Thesocialenvironmentofbusinessincludessocialforceslike
:(i)Customsandtraditions(ii)Socialtrends(iii)society’s
expectations(iv)Values(v)attitudesandbeliefs.

Forexample:Socialtrendsprovidesopportunitiesandthreatstothe
businessorganisations.

(ii) TechnologicalEnvironment:“Heanticipatedhuge
demand……..takingordersonline.

Technologicalenvironmentincludesforcesrelatingto:(i)Scientific
improvementsandinnovationswhichprovidesnowwaysof
producinggoodsandservices.(ii)Newmethodsandtechniquesof
operatingabusiness.

69/190

UNIT4-PLANNING

Q.No. Questions Marks

1 Explaintheterm planningpremises. 1

2 Whichfunctionofmanagementisconsideredasthebaseofallotherfunctions? 1

3 ‘ABCLtd’decidestoadvertisetheirproductonT.V.andradio.Whattypeofplan 1

shoulditprepare?

4 Namethetypeofplanisinwhichminutesdetailsareworkedout,i.e.,procedures, 1
rules

budgets,etc.

a.Objective b.Programme

c.Strategy d.Policy

5 “SwachchBharatAbhiyaan”startedbygovernmentofIndiaisanexampleof…….of 1

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plan. 1
1
6 ABCLtd.givespromotiononthebasisofseniority.Whichtypeofplanisit? 1
1
7 Planningleadstorigidityis: 1
1
i. Methodofplanning 1
ii. Characteristicofplanning
iii. Importanceofplanning
iv. Limitationofplanning
8 Whattodoandhowtodoisconcernedwith:

i. Controlling
ii. Staffing
iii. Planning
iv. Directing
9 Nosmokinginthefactorycomesunder:

i. Objectives
ii. Policies
iii. Methods
iv. Rules
10 Estimatedcashinflowsandoutflowsare:

i. Programme
ii. Procedure
iii. Budgets
iv. Rules
11 Increasingsalesby15%is:

i. Planning
ii. Method
iii. Rule
iv. Objective
12 Thefirststepofplanningis:

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i. Setting-uptheobjective 1
ii. Follow-up
iii. Selectinganalternative
iv. Developingpremises
13 Planningis:

i. Uselessfunction
ii. Physicalexercise
iii. Mentalexercise
iv. Onetimeprocess

14 Actualperformancecanbecomparedwithstandardperformancethrough: 1

i. Programme 1
ii. Staffing
iii. Budget
iv. Noneofthese
15 Planscanbeimplementedafterthe:

i. Developingpremises 1
ii. Settingobjective
iii. Selectinganalternative
iv. Follow-upaction
16 Therearetwotypesofplans:

i. TraditionalplanandModernplan 1
ii. SingleuseplanandStandingplan
iii. Shortterm planandLongterm plan
iv. SingleuseplanandDoubleuseplan
17 Indicatewhetherthefollowingstatementsare‘True’or‘False’:

(i) Objectivesaretargetsofplanningbuttheyarepartandparcelofplanning.
(ii) Arulerequiresthataspecificanddefiniteactionbetakenornotwith

respecttoasituation.

72/190

(iii) Planningisthebeginningandendofallmanagerialactivities. 3
18 Identifythetypeofplaninthefollowingstatements:

a)Theyareendswhichtheorganizationwantstoachievebyitsoperations.
b)Girlswillbegivenarebateof5percentcutoffforadmissioninthe

college.
c)Itfacilitatescomparisonofactualresultswiththeplannedresults.
d)Librarywillissueatonetimeonly4booksfor15days.
e)Anyemployeefoundloggingtoanysocialnetworkingsiteintheofficewill

bepunished.
f) Cocacolareducepricesofitsproductsinresponseofpricecutbythe

Pepsi.

19 Whichtypeofplanhastheleastflexibilityandwhy? 1

20 AftercompletingB.Techinelectricalengineering,RockysetsaunittoproduceLED 3
bulbs.Duetogovernmentsupportfortheprojectheisabletogetfinanceata
reasonablerateofinterest.Rockyhastheabilitytoforeseeandplanhisoperations
verywell.Hiscompanydoeswellandneedstoappointamanagertohelphim.
Kishorjoinshisbusinessastheproductionmanager.Kishorisverypooratplanning
theactivitiesanddoeshisworkinaveryhaphazardmanner.Duetothistheirorders
gotdelayedandcustomersstartedtogetdissatisfied.Thegoodwillearnedbythe
Rockyovertheyearsbegantodecline.

OnthebasisofthegiveninformationaboutRocky,answerthefollowingquestions:

(a)IdentifyandexplainthefunctionofmanagementwhichKishorfailedtoperform
byquotinglinesfrom theparagraph.

(b)Describebrieflyanytwofeaturesofthefunctionofmanagementasidentifiedin
part(a).

21 Mrs.SonuDhaliwal,theSeniorManagerof‘BharatLimited’heldameetingwiththe 4
SalesManagerinordertofixthetargetofsalesforthefollowingyear.Forthis

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purposeshestudiedthesalestrendoftheprevious3years.Shecametoknowthe
company’ssaleswereincreasingattherateof20%everyyear.Forthisshedidthe
marketsurveyalso.From thisshelearntthatthemaincompetitorofthecompany
wasrunninginloss,wasplanningtoentersomeotherventure.Takingthis
informationasbase,Mrs.Dhaliwaldoubledthetargetfrom thepreviousyear.Allthe
DepartmentalManagersweredirectedtomaketheirrespectivepreparationsto
achievethistarget.Thesalesmanagerkeptaclosewatchoverthesalesrateofhis
companyandtheactivitiesofthecompetingcompanyaswell.Aftersometime,she
cametoknowthatthecompetingcompanywasnotleavingitscurrentbusiness,
butwasplanningforimprovementinit.TheGeneralManagercalledaurgent
meetingofalltheDepartmentalManagerssoastomakechangesinhisplans.

Identifythedifferentstagesofplanningprocessdescribedintheparagraphgiven
above.Quotetherelevantlinestodoso.

22 IshuistheC.E.O.ofStarLtd.Heinaccordancewiththeotherboardmembers 4

decidestoformulateageneralstatementwhichwillbeguidingthethinkingof

employees.Hefurthergoesontoformulatemanysuchstatementsinthenextsix

months.Thesestatementscouldbedividedintotwocategories.

(a)Identifyandstatethetypeofplanhighlightedabove.

(b)Alsogivetwotypesofthisplans.

23 New-generationlimitedisacompanymanufacturinggovernments.Whilemakingits 4
plane,thecompanytakesintoconsiderationthebusinessenvironment.Itconstantly
adaptsitselftochangesinenvironmentbymakingchangesinitsplan.However,it
becomesdifficultforthemanagersofthecompanytoaccuratelyforeseefuture
trendsintheenvironment.Competitioninthemarketupsetsitsfinancialplan;then
salestargetshavetoberevisedand,accordinglycashbudgetsalsoneedtobe
modifiedsincetheyarebasedonsalesfigures.

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(a)Nameandexplainthelimitationofplanninghighlightedintheabovepara.

(b)Identifyandexplainthetwotypesofplansmentionedintheaboveparaby
quotingthelinesfrom it.

24 ABCLtd.Amobilecompanyisfacingaproblem ofdecliningmarketsharedueto 4
competitionfrom existingandnewplayersinthemarket.Thecompetitorsare
introducinglow-pricedmodelsforprice-sensitiveconsumers.Atthesametime,for
qualityconsciouscustomers.Thecompetitorsareintroducingnewmodelswith
addedfeatures.

IdentifyandexplainthestepsABCLtd.shouldusetogainitsmarketshare.

25 In‘ChakDeIndia’movie,ShahrukhKhanbecomesthecoachofthegirl’shockey 4
team.Heknowshehastopreparethegirlsfortheinternationalhockeymatches
andbringtheworldcupafterwinning.Forthishepreparesalong-term planthinks
thewayhowtobeatthecompetitors.Hecoachesthegirlstoplayindifferentways
likedefensive,offensive,etc.attheoutsetofamatchheexplainswhowillopenthe
match,andhowtheballwillbepassedbyoneplayertoanotherstepbystep.

Identifythedifferenttypesofplansquotingthelinesfrom theabovepara.

26 NaturalLtd.isaccompanyworkingontheprincipleof‘BestoutofWaste’is 4

engagedinutilizingthewastematerials,likeusedCDs,thrownawaycardboards,

plastic,thermocoalandalmosteverythingtomakeinnovativeandusefulproducts

likepenstands,lamp,shades,decoratespieces,boxes,etc.Thecompanyhas

alreadyengagedafewuneducatedworkersforgettingsuchusefulwastematerials.

So,atnegligiblecostofprocuringrawmaterial,anduseoflabourintensive

techniqueofproduction,itisabletoobtaingoodpricesforitsproducts.

(a)Identifyandexplainthetypeofplanhighlightedintheabovepara.

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(b)Identifyanytwovaluesreflectedintheabovepara.

27 (a)“IfanyemployeeworkinginG.D.GoenkaPublicSchoolcomeslatetotheschool 4
fourtimesinamonth,his/heronedaysalaryisdeducted.”Identifyandexplainthe
typeofplanhighlightedbythisstatement.

(b)“SwachhBharatAbhiyan”startedbygovernmentofIndiaisanexampleofwhich
typeofplan?Explainit.

28 “PlanningisPervasive”.Explainbriefly.  3

29 Howisplanningforwardlooking?  3

30 Explain“Objective”and“Policy”astypesofplanusingsuitableexamples.  4

31 Whatarethemainpointsinthedefinitionofplanning?  4

32 “Planningisnotaguaranteeofsuccessofabusiness.”Comment. 3

33 ABCLtd.Announcedaplanthatnobodywouldsmokeinorganizationpremises 4
andtheyfurtheraddedthatcertainpenaltywillbeimposedon
employess,overlookingthis.

(i)Namethetypeofplannrelatedtoabovepara.

(ii)Namethefeaturesofthatplann.

(iii)Namethevaluesemphasizedbythecompany.

34 4
AlphaLtd.Spentalotofmoneytohirespecializedpeopleforfamingtheirplans
andcollectingimportantfactsfrom environment.Thecompanycutdowntheir
costbycancellingtheemployeestripforrecreation.(3)

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(i)Namethelimitationplanningmentioninabovepara.
(ii)Namethevalueoverlookbymanagement.

35 4
PKLtd.hasbeenwell-knownfordelayindecisionmakingandoverlappingof

workdone.Identifythemanagementfunctionlackingintheorganisationandstate

theimportanceofthisfunction.

36 4
Isplanningactuallyworththehugecostinvolved?Givefourreasons?

37 4
Whyisitthatorganisationsarenotalwaysabletoaccomplishalltheirobjectives?

38 4
"Planningisnotaguaranteeofasuccessofabusiness".Comment.

39 Suhasini,ahomesciencegraduatefrom areputedcollege,hasrecentlydonea 4

cookerycourse.Shewishedtostartherownventurewithagoaltoprovide‘health

food’atreasonableprices.Shediscussedherideawithherteacher(mentor)who

encouragedher.Afteranalysingvariousoptionsforstartingherbusinessventure,

theyshortlistedtheoptiontosellreadymadeand‘readytomake’vegetableshakes

andsattumilkshakes.Then,theyweighedtheprosandconsofboththeshort

listedoptions.

1.Namethefunctionofmanagementbeingdiscussedaboveandgiveanyoneofits
characteristics.

2.Alsobrieflydiscussanythreelimitationsofthefunctiondiscussedinthecase.

40 Twoyearsago,Madhucompletedherdegreeinfoodtechnology.Sheworkedfor 4
sometimeinacompanythatmanufacturedchutneys,picklesandmurabbas.She
wasnothappyinthecompanyanddecidedtohaveherownorganicfood
processingunitforthesame.Shesettheobjectivesandthetargetsandformulated
anactionplantoachievethesame.

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Oneofherobjectiveswastoearn10%profitontheamountinvestedinthefirst
year.Itwasdecidedthatrawmaterialslikefruits,vegetables,spices,etc.willbe
purchasedonthreemonthscreditfrom farmerscultivatingonlyorganiccrops.She
alsodecidedtofollowthestepsrequiredformarketingoftheproductsthroughher
ownoutlets.SheappointedMohanastheProductionManagerwhodecidedthe
exactmannerinwhichtheproductionactivitiesweretobecarriedout.Mohanalso
preparedastatementshowingthenumberofworkersthatwillberequiredinthe
factorythroughouttheyear.MadhuinformedMohanaboutherareawisesales
targetfordifferentproductsfortheforthcomingquarter.Whileworkingonthe
productiontable,apenaltyof?100perdayfornotwearingcaps,glovesandapron
wasannounced.

>>Quotinglinesfrom theaboveparagraph,identifyandexplainthedifferenttypesof
plansdiscussed.

41 JoshLtd.isaoneofthelargesttwo-wheelermanufacturerinIndia.Ithasamarket 4
shareofabout42%inthetwo-wheelercategory.Thecompanyhadwitnessed
almosta35%dropinthebookingasthecurrencycrunchwaspromptingpeopleto
withholdnewpurchasesduetodemonetisation.Therefore,theproductionmanager
ofthecompanyhaddecidedtoalignproductiontofactorinslowersalesinthe
market.

Incontextoftheabovecase:

>>Identifyandexplainthefunctionofmanagementbeingdiscussedintheabove
lines.

>>Whichlimitationsofthefunctionofmanagementasidentifiedinpart(a)ofthe
questionwasthe productionmanagertryingtoovercomeduetodemonetisation?

42 WazirAhmedjoins‘AshiyanaLtd.’acompanydealinginrealestate,asahuman 4
resourcemanager.Throughaseriesofinteractionswithhisteam duringlunch

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breaks,hecomestoknowthatquiteafewmanagersatmiddleandseniorlevels
haverecentlylefttheorganisationastheirpromotionswereoverdue.Therefore,in
ordertoreinstatetheconfidenceofthestaff,helaysoutaclearcutplanconsisting
ofasetofgeneralguidelinesforbothtimeboundandperformancerelated
appraisalsofthemangersatalllevels.Moreover,hedevelopsstandardized
processescontainingaseriesofstepsspecifiedinachronologicalorderforits
implementation.

Incontextoftheabovecase:

1.IdentifythetwodifferenttypesofplansthatWazirAhmedproposesto
implementinordertoreinstatetheconfidenceofthestaffbyquotinglinesfrom the
paragraph.

2.Distinguishbetweenthetwotypesofplansasidentifiedinpart(a).Thedifference
betweenPolicyandProcedureisoutlinedbelow:

43 Arushjoinsasasalesmanagerofacompanydealinginnaturotherapyproducts. 4
Beingproficientinhiswork,heknewthatwithoutgoodplanninghewillnotbeable
toorganise,direct,controlorperform anyoftheothermanagerialfunctions
efficientlyandeffectively.Onlyonthebasisofsalesforecasting,hewouldassistin
thepreparationoftheannualplansforitsproductionandsales.Besides,hewill
havetopreparesalesplansregularlyonweekly,monthly,quarterlyandhalfyearly
basis.Whilepreparingthesalesforecasts,heundertakesintellectualthinking
involvingforesight,visualizationandissuedjudgementratherthanwishfulthinking
orguesswork.Mostimportantly,alltheseplanningactivitieswillbemeaningfulonly
iftheywillcoincidewiththepurposefobwhichthebusinessisbeingcarriedout.

Incontextoftheabovecase,identifythevariousfeaturesofplanninghighlightedin
theaboveparagraphbyquotinglinesfrom it.

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44 Acompanyismanufacturinggarments.Themanagerwantstoincreaseprofitsby 5
purchasingnewhighspeedmachinesorincreasingthesalepriceorusingwaste
materialsinmanufacturingstuffedtoys.Hedecidedthat"usingwastematerial"is
thebestsolutionforhim.

(a)Indentifytheconceptofmanagmentinvolved.

(b)Mentionthestepsinvolvedintheaboveprocessbyquotingthelinesfrom the
question.

45 "KOHINOORFOODSltd.hasbannedsmokinginthefactorypremises". 5
(a)Identifytheplanstatedintheabovelines
(b)Statethefeatureofthisplan.
(c)Differentbetweenpolicyandthisplan.

46 Suhasini,ahomesciencegraduatefrom areputedcollege,hasrecentlydonea 5

cookerycourse.Shewishedtostartherownventurewithagoaltoprovide‘health

food’atreasonableprices.Shediscussedherideawithherteacher(mentor)who

encouragedher.Afteranalysingvariousoptionsforstartingherbusinessventure,

theyshortlistedtheoptiontosellreadymadeand‘readytomake’vegetableshakes

andsattumilkshakes.Then,theyweighedtheprosandconsofboththeshort

listedoptions.

1.Namethefunctionofmanagementbeingdiscussedaboveandgiveanyone
ofitscharacteristics.

2. Alsobrieflydiscussanythreelimitationsofthefunctiondiscussedinthe
case.

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47 5
Twoyearsago,Madhucompletedherdegreeinfoodtechnology.Sheworkedfor
sometimeinacompanythatmanufacturedchutneys,picklesandmurabbas.She
wasnothappyinthecompanyanddecidedtohaveherownorganicfood
processingunitforthesame.Shesettheobjectivesandthetargetsand
formulatedanactionplantoachievethesame.
Oneofherobjectiveswastoearn10%profitontheamountinvestedinthefirst
year.Itwasdecidedthatrawmaterialslikefruits,vegetables,spices,etc.willbe
purchasedonthreemonthscreditfrom farmerscultivatingonlyorganiccrops.
Shealsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughherownoutlets.SheappointedMohanastheProductionManagerwho
decidedtheexactmannerinwhichtheproductionactivitiesweretobecarried
out.Mohanalsopreparedastatementshowingthenumberofworkersthatwill
berequiredinthefactorythroughouttheyear.MadhuinformedMohanabouther
areawisesalestargetfordifferentproductsfortheforthcomingquarter.While
workingontheproductiontable,apenaltyof?100perdayfornotwearingcaps,
glovesandapronwasannounced.
Quotinglinesfrom theaboveparagraph,identifyandexplainthedifferenttypesof
plansdiscussed.

48 5
Twoyearsago,Mayankobtainedadegreeinfoodtechnology.Forsometime,he
workedinacompanythatmanufacturedbreadandbiscuits.Hewasnothappyin
thecompanyanddecidedtohavehisownbreadandbiscuitsmanufacturingunit.
Forthis,hedecidedtheobjectivesandthetargets,andformulatedanactionplan
toachievethesame.
Oneofhisobjectiveswastoearn50%profitsontheamountinvestedinthefirst
year.Itwasdecidedthatrawmaterialslikeflour,sugar,salt,etc.willbe
purchasedontwomonthscredit.Healsodecidedtofollowthestepsrequiredfor
marketingtheproductsthroughhisownoutlets.HeappointedHarshasthe
ProductionManagerwhodecidedtheexactmannerinwhichtheproduction
activitiesweretobecarriedout.Harshalsopreparedastatementshowingthe
requirementofworkersinthefactorythroughouttheyear.Mayankinformed

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Harshabouthisareawisesalestargetfordifferentproducts,fortheforthcoming
quarter.Whileworkingontheproductiontable,apenaltyof?150perdaywas
announcedfornotwearingthehelmet,glovesandapronbytheworkers.
Quotinglinesfrom theaboveparagraph,identifyandexplainthedifferenttypesof
plansdiscussed.

49 5
Rahul,aworker,isgivenatargetofassemblingtwocomputersperday.Duetohis
habitofdoingthingsdifferently,anideastruckhim whichwouldnotonlyreduce
theassemblingtimeofcomputersbutwouldalsoreducethecostofproduction
ofthecomputers.Insteadofappreciatinghim,Rahul’ssupervisororderedhim to
completetheworkasperthemethodsandtechniquesdecidedearlierasnothing
couldbechangedatthatstage.Theaboveparagraphdescribesoneofthe
limitationsoftheplanningfunctionofmanagement.Nameandexplainthat
limitation,Andstate4morelimitation.

50 JoshLtd.isaoneofthelargesttwo-wheelermanufacturerinIndia.Ithasamarket 5
shareofabout42%inthetwo-wheelercategory.Thecompanyhadwitnessed
almosta35%dropinthebookingasthecurrencycrunchwaspromptingpeopleto
withholdnewpurchasesduetodemonetisation.Therefore,theproductionmanager
ofthecompanyhaddecidedtoalignproductiontofactorinslowersalesinthe
market.
Incontextoftheabovecase:

1.Identifyandexplainthefunctionofmanagementbeingdiscussedintheabove
lines.

2.Whichlimitationsofthefunctionofmanagementasidentifiedinpart(a)of
thequestionwastheproductionmanagertryingtoovercomedueto
demonetisation?

51 Flipkartisane-commercecompanyfoundedintheyear2007bySachinBansaland 5
BinnyBansal.ThecompanyisregisteredinSingapore,buthasitsheadquartersin
Bangaluru,India.Thecompanyseekstoincreasetraffic(moreclicksontheir

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products)andboostsalesandrevenuethroughintegrationofMobileApps,Display,
PayPerClickandSearchEngineOptimization.Inordertodispelthefearofpeople
relatedtoshoppingonline,Flipkartwasthefirstcompanytoimplementthepopular
‘CashonDelivery’facility.Alltheproductssoldbythecompanyunderaparticular
categorymayhavedifferentreturn/replacementperiod.Flipkartallowsmultiple
paymentoptionssuchascashondelivery,creditordebitcardtransactions,net
banking,e-giftvoucherandcardswipeondelivery.Thecompanyoperatesboth
wayswhenanorderisreceived.Theproductsforwhichitholdsinventoryare
dispatchedbyitdirectly.Fortheproductstheydonotstoreininventory,theyjust
sendtheorderreceivedbythem tothesupplierwhoshipsit.Thecompanyplansto
spendabout?75croresone-Commerceadvertisingintheyear2016.Flipkart
reservestherighttoterminateyourmembershipand/orrefusetoprovideyouwith
accesstothewebsiteifitisbroughttoFlipkart’snoticeorifitisdiscoveredthatyou
areundertheageof18years.ThisisbecauseaspertheIndianContractAct,1872,
theminors,un-dischargedinsolvents,etc.arenoteligibletousethewebsite.
Incontextoftheabovecase,identifyandexplainthedifferenttypesofplansbeing
usedbyFlipkartbyquotinglinesfrom theparagraph.

52 Rajenderhasbeenrunningasuccessfulbusinessofmanufacturingtraditional 5

weddingwearforwomenincludingsareesandlehengas.HisfriendSurinderwhois

engagedinthebusinessofprovidingwebdesigningsolutionstohisclients,

suggestshim toexploretheoptionofsellinghisproductsonline.Rajenderagreesto

hissuggestionanddecidestoventureintoonlinebusiness,keepinginviewthe

variouse-commerceregulationsinordertoavoidimpositionofanypenalty.Inorder

tofacilitatethesaleofhisproducts,Rajenderdecidestooffermultiplepayment

optionssuchascashondelivery,creditordebitcardtransactions,netbankingto

thebuyersetc.

Incontextoftheabovecase:

1.Identifythetwodifferenttypesofplansmentionedintheaboveparagraph
thatrelatetotheonlineportalthatRajinderintendstostartbyquotinglines
from theparagraph.

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2. Distinguishbetweenthetwotypesofplansasidentifiedinpart(a).

53 5
Stateanyfivepointsofimportanceofplanningfunctionofmanagement.

54 5
Stateanyfivefeaturesofplanning.

55 HolisticEducationPublicSchoolinBahadurgarhdecidestoimplementtheliteracy 5
programmeofthegovernmentintheschool.Itisdecidedthatwithintheyear,the
fortyfivesupportstaffemployeesoftheschoolwillbemadeliteratebytheschool
counsellorsandsocialworkers.Inordertoenhancethelearningprocess,theschool
decidestouseaudio-visualaids.Tostarttheprogramme,theschoolhastofirst
procuretheliteracybooksfrom StateResourceCentreatJamia.Besidesthe
curriculum,eachliteracybookcontainsaseriesofninetestswhichthevolunteers
havetogetcompletedbythelearnersduringtheprogramme.Moreover,by
implementingtheplanof‘eachoneteachone’,eachstudentoftheschoolfrom
classesfifthtotenthwillbeencouragedtomakeonepersonliterate.Thestudent
volunteersmayselectalearnerbyadoptinganyoneofthetwoways;eitherfrom the
slum areasadoptedbytheschoolorontheirownwithinthevicinityoftheir
residence.AsperthenormsoftheDelhiGovernment,itismandatoryforthe
volunteerstosendbackthefilledcopyofonlytheninthtestpaperintheseriesto
theauthoritiesasaconclusiveproofofthecompletionofthecourse,elsethe
certificateofcommendationwillnotbeawardedtothem.Consideringthe
implementationoftheprogrammetobeapartofitscorporatesocialresponsibility
initiative,theschoolhasdecidedtospendaroundRs.50,000onthedistributionof
freestationeryitems,refreshmentsofthelearners,etc.
Incontextoftheabovecase:

1.IdentifythevarioustypesofplansbeingusedbyHolisticEducationPublic
Schoolinordertoimplementtheliteracyprogrammeintheirschoolby
quotingthelinesfrom theparagraph.

2.Categorisethevarioustypesofplansasidentifiedinpart(a)intosingleuse

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plansandstandingplans.

ANSWERS

Q.No. Answers Mark
s
1 Theplannerorthemanagerisrequiredtomakeassumptionsaboutthefuture.
Theseassumptionsareknownasplanningpremises. 1

2 Planning 1
3 Strategy 1
4 Programme 1
5 Programme 1
6 Policy 1
7 iv)Limitationofplanning 1
8 (iii)Planning 1
9 (iv)Rules 1
10 iii)Budget 1
11 (iv)Objective 1
12 (i)Setting-upoftheobjective 1
13 (iii)Mentalexercise 1

14 (iii)Budget 1

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15 (iii)Selectinganalternative 1

16 (ii)SingleuseplanandStandinguseplan 1

17 (i) True (ii)True (iii)True 1

18 (a)Objectives 1

(b)Policy

(c)Budget

(d)Policy

(e)Rule

(f)Strategy

19 Rulesareenforcedrigidly.Noexceptionordeviationisallowed.Withregardto 1
rule,themanagershavenoscopefordiscretion.

20 (a)PLANNING.Quotinglines:“Kishorisverypoor………….haphazardmanner” 3

Features:

(i)pervasive(ii)goaloriented

21 .(i)DevelopingpremisesandSettingobjectives 4

“Taking,thisinformationasbase…….from thepreviousyear”

(ii)ImplementingPlans

“AlltheDepartmentalManagers…….toachievethistarget.”

(iii)Followup

“Aftersometime……..improvementinit.”

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22 (a)Policy 4
(b)(i)Major(ii)Minor

23 (a)Planningmaynotworkinadynamicenvironment 4
(b)(i)strategy(ii)Budget

24 type-Strategy 4
(a)Determininglongterm objectives
(b)Adoptingaparticularcourseofaction
(c)Allocatingnecessaryresources

25 .(a)objective 4

‘…..bringtheworldcupafterwinning’

(b)Strategy

‘forthishe……beatthecompetitors’

(c)method

‘hecoachesthegirls…….offensive,etc.

(d)Procedure

‘attheoutset…….stepbystep’

26 a)method 4

(b)Values:(i)optimum utilizationofwastematerial(ii)environmentalprotection

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(iii) recycling(iv)promotingecofriendlyproducts

27 .(a)Rule 4

(b)Programme

28 3
Planningisthepervasivefunctionofthemanagement.Itisrequiredinallthe

typesoforganisation,whetherbigorsmall,businessornon-business,social,

politicalorreligious.Itisneededinallthedepartmentsoftheorganisation.

Planningisperformedevenatalllevelsofmanagementatthetop,middleand

lowerlevel.Astoplevelmanagersplantomakeobjectivesandpoliciesforthe

organisation.Middle-levelmanagersplantoimplementpoliciesandrulesamong

theirdepartments.Lowerlevelmanagersplantocontrol,inspectandsupervise

workersinthefactory.Inthisway,planningisallpervasive.

29 3
.Planningisforward-lookingbecauseitessentiallyinvolveslookingaheadand
preparingforthefuture.Thepurposeofplanningistomeetfutureevents
effectivelytothebestpossibleadvantageoftheorganisation.Itisalwaysforthe
futureandneverforthepast.Itinvolvespeepingintothefuture,analysingand
thenpreparingplans.

30 4
Objectives: Objectivesarethoseendpointswhicheveryorganizationstrivesto
achieve.Thesearethebasicreasonforafirm’sexistence.Theseareusually
statedinmeasurableterms.Thesearetime-boundi.ethesearetobeachieved
withinagivenperiodoftime.Alltheactivitiesoftheorganisationaredirected
towardstheattainmentoftheobjectives.Theseprovidebroaddirectionto
employeesaboutwhattheyshoulddo.Fore.g.itisafirm’sobjectivetoincrease
itssalestargetsby20%.Policy: APolicyisageneralstatementthatguides
decisionmaking.Itactsasaguidetomanagerialactionsanddecisionsin
implementingstrategy.Apolicydefinestheboundarieswithinwhichdecisions
canbemadebythesubordinates.Themainpurposeofpoliciesistoprovidea
practicalshapetoobjectivesbyelaboratingthemannerinwhichgoalsaretobe
achieved.Policiesplayimportantroleinsettingtheparameterswithinwhicha

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managermayfunction.Therearedifferentpoliciesatdifferentlevelsrangingfrom
majorcompanypoliciestominorpolicies.Majorpoliciesareconcernedwiththe
market,competitors,customersandclientsetc.whereasminorpoliciesare
concernedwiththeinsiders.

accordingly.Fore.g.onthebasisofthesalesforecasts,annualplansfor
productionaredrawn.

31 InthewordsofKoontzO’Donnell,Planningisdecidinginadvancewhattodo,how 4
todoit,whentodoitandwhoisgoingtodoit.Planningbridgesthegapfrom
whereweareandwherewewanttogo.Itisatraptocapturethefuture.Main
pointsinvolvedare:

 Settingobjectives
 Timeperiod
 Formulatingalternativescourseofaction
 Selectingacourseofaction

32 3
A businessplan does notguaranteesuccess.Havinga businessplan has

become,inmany business owners'mind,aroadwayto success....Therealityis

thatthemerepossessionofa plan does not meanthatwhathasbeenplanned

willactuallyoccur.That plan thatsitsinyoursafeoronyourshelfcannotpredict

thefuture.

33 4
i)Ruleisthetypeofplan.

(ii)Rulesareveryrigid.

(iii)VALUES:(a)Respecttowardsenvironment.

(b)Followthedisciplineandorder

34 4
(i)Limitation:Planningenvolvehugecost.

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(ii)Valueoverlook:Psychologicalneedofemployees.

35 4
Planning

36 Yes,itiswortheveryamountspentonits.Acompanyneedstoplanbecauseof 4
thefollowingbenefits(EXPLAINfourimportanceofplanning)

-Providesdirections

-Reduceriskofuncertainty

-Promotesinnovativeideas

-Facilitatecontrolling

37 Explainany6limitationsofplanning 4

-Planningleadstorigidity

-Planningmaynotworkindynamicenvironment

-Itreducescreativity

-Planninginvolveshugecost

-Itisatimeconsumingprocess

-Planningdoesnotgiveguaranteesuccess

38 Yes,iagreewiththestatement,planningthroughanimportanttoolof
managmentisnota remedyforalltypesofproblemsbecauseitsuffers
from followinglimitations;

[Explainanyfourlimitationsofplanning]

39 1.Planningisthefunctionofmanagementwhichisbeingdiscussedabove. 4
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Meaning-

Planninginvolvesdecision-making:Planningessentiallyinvolvesapplicationof
rationalthinkingtochoosethebestalternativeamongthevariousavailable
alternativesinordertoachievethedesiredgoalsefficientlyandeffectively.

2.Explainany3limitationsofplanning

40 Thedifferenttypesofplansdiscussedabovearelistedbelow: 4

Objectives:Objectivesaretheendresultsoftheactivitiesthat-anorganisation
seekstoachievethroughitsexistence.Allotheractivitieswithintheorganisation
aredirectedtowardsachievingtheseobjectives.

“Oneofherobjectiveswastoearn10%profitontheamountinvestedinthefirst
year.”

Policy:Apolicyisasetofgeneralguidelinesthathelpsinmanagerialdecision
makingandaction.

“Itwasdecidedthattherawmaterialslikefruits,vegetables,spices,etc.willbe
purchasedonthreemonthscreditfrom farmerscultivatingonlyorganiccrops.”

Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformedina
chronologicalordertocarryouttheroutineactivities.

“Shealsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughherownoutlets.”

“Theexactmannerinwhichtheproductionactivitiesaretobecarriedout.”

Rule:Aruleisaspecificstatementrelatingtothegeneralnormsintermsof
Do’sandDont’sthatguidethebehaviourofpeople.Itcommandsstrictobedience
andapenaltyislikelytobeimposedonitsviolation.

“Whileworkingontheproductiontable,apenaltyof?100perdayfornot
wearingcaps,glovesandapronswasannounced.”

Budget:Abudgetrefestoafinancialplanthatisexpressedinnumericalterms.
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“Mohanalsopreparedastatementshowingthenumberofworkersdifferent
productsfortheforthcomingquater.”

41 Planningisthefunctionofmanagementwhichisbeingdiscussedintheabove 4
lines.

Planningisdecidinginadvancewhattodo,howtodo,whentodoandwhohas
todoit.Thus,itinvolvessettingobjectivesanddevelopinganappropriatecourse
ofactiontoachievetheseobjectives.

2.Theproductionmanageristryingtoovercomethefollowinglimitationsof
planning:

-Rigidity

-Planningmaynotworkindynamicenvironment

42 PolicyandProcedurearethetwodifferenttypesofplansthatWazirAhmed 4
proposestoimplementinordertoreinstatetheconfidenceofthestaff.

Policy:“…helaysoutaclearcutplanconsistingofasetofgeneralguidelines
forbothtimeboundandperformancerelatedappraisalsofthemangersatall
levels.”

Procedure:“Moreover,hedevelopsstandardizedprocessescontainingaseries
ofstepsspecifiedinachronologicalorderforitsimplementation.”

[ALSOdifferentiatebetweenPOLICYandPROCEDUREwithbasis]

43 Thefeaturesofplanninghighlightedintheaboveparagraphareexplainedbelow: 4

Planningisaprimaryfunction:Planningprecedesallthefunctionsof
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managementi.e.organizing,staffing,directingandcontrolling.Thisrefersto
primacyofplanning.Planningprovidesthebasisofallotherfunctions.

“…withoutgoodplanninghewillnotbeabletoorganise,direct,controlor
perform anyoftheothermanagerialfunctionsefficientlyandeffectively.“

Planningisfuturistic:Planningiscalledaforwardlookingfunctionasitenables
anorganizationtomeetfutureeventseffectively.

“Onlyonthebasisofsalesforecasting,hewouldassistinthepreparationofthe
annualplansforitsproductionandsales.”

Planningiscontinuous:Plansneedtobecontinuouslymade,implementedand
followedbyanotherplanandsoontillanorganizationexists

“Besides,hewillhavetopreparesalesplansregularlyonweekly,monthly,
quarterlyandhalfyearlybasis.”

Planningisamentalexercise:Planningisdoneonthebasisofrationalthinking
involvingforesight,visualizationandissuedjudgmentratherthanwishfulthinking
orguesswork.

“Whilepreparingthesalesforecasts,heundertakesintellectualthinking
involvingforesight,visualisationandissuedjudgmentratherthanwishfulthinking
orguesswork.”

Planningfocusesonachievingobjectives:Planningisapurposefulactivityasit
contributestotheachievementofpredeterminedgoalsoftheorganisationboth
efficientlyandeffectively.

“Mostimportantly,alltheseplanningactivitieswillbemeaningfulonlyiftheywill
coincidewiththepurposeforwhichthebusinessisbeingcarriedout.”

44 a)planning 5
(b)stepsofplanningorplanningprocess
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45 -(a)rule 5
(b)featuresofrules:
-codeofconduct
-specifieswhattodoandwhatnottodo
-arerigid,stringentandcompulsiveinnature
-theyareusuallythesimplesttypeofplan
(c)differencebetweenPOLICYandthisPLAN

46 5
Planninginvolvesdecision-making 5

Thelimitationsofplanningaredescribedbelow:

1.Planningmaynotworkinadynamicenvironment
2.Planningreducescreativity
3.Planninginvolveshugecosts

47 Thedifferenttypesofplansdiscussedabovearelistedbelow:

1.Objectives:Objectives are the end results of the activities that-an
organisation seeksto achievethrough itsexistence.Allotheractivities
withintheorganisationaredirectedtowardsachievingtheseobjectives.
“Oneofherobjectiveswastoearn10%profitontheamountinvestedinthe
firstyear.”

2.Policy:A policyisasetofgeneralguidelinesthathelpsinmanagerial
decisionmakingandaction.
“Itwasdecidedthattherawmaterialslikefruits,vegetables,spices,etc.will
bepurchasedonthreemonthscreditfrom farmerscultivatingonlyorganic
crops.”

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3.Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformed
inachronologicalordertocarryouttheroutineactivities.
“Shealsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughherownoutlets.”
“Theexactmannerinwhichtheproductionactivitiesaretobecarriedout.”

4.Rule:Aruleisaspecificstatementrelatingtothegeneralnormsintermsof
Do’sandDont’sthatguidethebehaviourofpeople.Itcommandsstrict
obedienceandapenaltyislikelytobeimposedonitsviolation.
“Whileworkingontheproductiontable,apenaltyof?100perdayfornot
wearingcaps,glovesandapronswasannounced.”

5.Budget:A budgetrefestoafinancialplanthatisexpressedinnumerical
terms.
“Mohanalsopreparedastatementshowingthenumberofworkersdifferent
productsfortheforthcomingquater

48 Thedifferenttypesofplansdiscussedabovearelistedbelow: 5

1.Objectives:Objectives are the end results of the activities that an
organisation seeksto achievethrough itsexistence.Allotheractivities
within the organisation are directed towards achieving these objectives.
“Oneofherobjectiveswastoearn50%profitontheamountinvestedinthe
firstyear.”

2.Policy:Apolicyisasetofgeneralguidelinesthathelpinmanagerialdecision
makingandaction.“Itwasdecidedthattheraw materialslikeflour,wheat,
sugar,etc.willbepurchasedontwomonthscredit.”

3.Method:Amethodreferstotheprescribedwaysormannerinwhichatask
hastobeperformedconsideringtheobjective.“..Decidedtheexactmanner
inwhichproductionactivitiesweretobecarriedout.”

4.Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformed
inachronologicalordertocarryouttheroutineactivities.

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“Healsodecidedtofollowthestepsrequiredformarketingoftheproducts
throughhisownoutlets.”
5.Rule:Aruleisaspecificstatementrelatingtothegeneralnormsintermsof
Do’sandDont’sthatguidethebehaviourofpeople.Itcommandsstrict
obedienceandapenaltyislikelytobeimposedonitsviolation.
“Whileworkingontheproductiontable,apenaltyof Rs.150perdaywas
announcedfornotwearinghelmets,glovesandapronsbytheworkers.”

49 5
Thelimitationoftheplanningfunctionofmanagementdescribedintheabove
paragraphisthat ‘planning reduces creativity.’ The top management
undertakesplanningofvariouspoliciesand procedures whereas the other
membersareexpectedtomerelyimplementtheseplans.This restricts the
creativityofthemiddlelevelmanagersastheyareneitherallowedtodeviatefrom
plans,norpermittedtoactontheirown.

50 5
Planningisthefunctionofmanagementwhichisbeingdiscussedintheabove

lines.

Planningisdecidinginadvancewhattodo,how todo,whentodoandwho

hastodoit.Thus,it involvessettingobjectivesanddevelopinganappropriate

courseofactiontoachievethese objectives.

1.Theproductionmanageristryingtoovercomethefollowinglimitations
ofplanning:

o Rigidity
o Planningmaynotworkindynamicenvironment

51 ThedifferenttypesofplansbeingusedbyFlipkartarelistedbelow: 5

1.Objectives:Objectives are the end results of the activities that an
organisation seeksto achievethrough itsexistence.Allotheractivities
withintheorganisationaredirectedtowardsachievingtheseobjectives.

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“Thecompanyseekstoincreasetraffic(moreclicksontheirproducts)and
boostsalesandrevenuethroughintegrationofMobileApps,Display,Pay
PerClickandSearchEngineOptimization.”
2.Strategy:Astrategyisacomprehensiveplanforachievingtheobjectivesof
theorganisation.Thiscomprehensiveplaninvolves:

o determininglongterm objectives
o adoptingaparticularcourseofaction
o allocatingresourcesnecessarytoachievetheobjective.

“Inordertodispelthefearofpeoplerelatedtoshoppingonline,Flipkart
wasthefirstcompanytoimplementthepopular‘CashOnDelivery’
facility.”
3.Policy:A policyisa sietofgeneralguidelinesthathelp in managerial
decisionmakingandaction.
“Alltheproductssoldbythecompanyunderaparticularcategorymayhave
differentreturn/replacementperiod.”
4.Method:Amethodreferstotheprescribedwaysormannerinwhichatask
hastobeperformedconsideringtheobjective.
“Flipkartallowsmultiplepaymentoptionssuchascashondelivery,creditor
debitcard transactions,netbanking,e-giftvoucherand card swipe on
delivery.”
5.Procedure:Aprocedurecontainsaseriesofspecificstepstobeperformed
inachronologicalordertocarryouttheroutineactivities.
“Thecompanyoperatesbothwayswhenanorderisreceived.Theproducts
forwhichitholdsinventoryaredispatchedbyitdirectly.Fortheproducts
theydonotstoreininventory,theyjustsendtheorderreceivedbythem to
thesupplierwhoshipsit.”
6.Budget:Abudgetreferstoafinancialplanthatisexpressedin-numerical
terms.
“Thecompanyplanstospendabout?75croresone-commerceadvertising
intheyear2016.”
7. Rule:AruleisaspecificstatementrelatingtothegeneralnormsintermsofDo’s
andDon’tsthat guidethebehaviourofpeople.Itcommandsstrictobedienceanda

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penaltyislikelytobeimposedon itsviolation.
“Flipkartreservestherighttoterminateyourmembershipand/orrefusetoprovide

youwithaccesstothe Website ifitis broughtto Flipkart’s notice orifitis
discoveredthatyouareundertheageof18years. ThisisbecauseaspertheIndian
ContractAct,1872,theminors,un-dischargedinsolventsetc.arenot eligible to
usetheWebsite.”

52 5
RuleandMethodarethetwodifferenttypesofplansthatrelatetotheonlineportalthat

Rajender intendstostart.

o Rule:“Rajenderagreestohissuggestionanddecidestoventureinto
onlinebusinesskeepinginviewthevariouse-commerceregulationsin
ordertoavoidimpositionofanypenalty.”

o Method:“However,hedecidestooffermultiplepaymentoptionssuch
ascashondelivery,creditordebitcardtransactions,netbankingto
thebuyersetc.”

53 5
Anyfivepointsofimportanceofplanningfunctionofmanagement.

54 5
Anyfivefeaturesofplanning.

55 a.Objectives. 5
b.Policy.
c.Budget.
d.Policy.

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CHAPTER:ORGANISING

Q.NO. QUESTION MARKS

1 Rolesanddutiesofeachmemberareclearlydefinedwhichhelpsin 1

avoidingconfusionandduplicationofworkandeffortsininformal

organisation.(T/F)

2 Foreffectiveadministration,organisingistheprimaryfunction. 1

(T/F)

3 Organisingclarifies________and_________forresultsandlogical 1

groupingofactivities. authorityandresponsibility

4 Selectivedispersalofauthorityleadsto_______. 1

5 Rishabhhasjoinedascreativeheadinanentertainmentcompany. 1

Healwaysensuresthattheworkhasbeendividedintosmalland

manageableactivitiesandalsotheactivitiesofsimilararegrouped

together.Identifytherelatedstepinorganisingprocessmentioned

here.

(a)Identificationanddivisionofwork

(b)Departmentalisation

(c)AssignmentofDuties

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(d)EstablishingReportingRelationships

6 WhichofthefollowingisnotademeritofinformalOrganisation? 1

(a)Itleadstospreadingofrumors.

(b)Itgivesmoreimportancetostructureandwork.

(c)Itmayrestrictimplementationofchanges.

(d)Itputspsychologicalpressureonmemberstoconform to

groupexpectations,eveniftheyareagainstthefirm.

7 Beinganswerabletothefinaloutcomeisaphrasewhichcanbe 1

associatedwith:

(a)Authority

(b)Duty

(c)Responsibility

(d)Accountability

8 ‘Itisaprocessbywhichmanagersbringsorderoutofchaos, 1

removesconflictsamongpeopleoverworkandcreatesan

environmentsuitableforteamwork.’Identifyit.

9 Sunidhiisasimplegirl,whohasrecentlyjoinedanITcompanyin 1

Pune.Sheoftenobservesthatmostofhercolleaguesgofora

partyonweekendswiththeirboss.Identifythetypeoforganisation

beingdescribedinabovelines.

10 Soumyarunsachainoflow costfashionwearoutletsinvarious 1

partsofthecountry.Asthetasteandpreferenceofpeoplevary

from oneregiontoanother,shehirescompetent,capableand

resourcefulmanagersandgivesthem anopportunitytowork

independentlyatlocallevel.Atthesametimetheyareexpectedto

assumetheresponsibilityforeffectiveimplementationoftheir

decisionswithregardtovariousaspectslikecolour,texture,design

etc.Relatedtothegarments.Identifytheconcept.

11 ShinespicesLtd.’arethemanufacturesofdifferentfoodspices 1+1+1=

likeRajmaahmasala,chholemasala,paavbhazimasalaetc.Mr. 3

Raghavtheownerofthecompanyhascreateddifferent

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