SAMPLE QUESTION PAPER 2023-24

BUSINESS STUDIES (054)

CLASS XII

Max Marks – 80 Time allowed: 3 Hours

General instructions:

1. This question paper contains 34 questions.

2. Marks are indicated against each question.

3. Answers should be brief and to the point.

4. Answers to the questions carrying 3 marks may be from 50 to 75 words.

5. Answers to the questions carrying 4 marks may be about 150 words.

6. Answers to the questions carrying 6 marks may be about 200 words.

7. Attempt all parts of the questions together.

The Board of directors of Medex Pharma Ltd. decided to issue debentures

1. worth ₹40 lakhs in order to finance a major Research and Development 1
project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at
the same time it would increase the Earnings per share.

The reason that will justify the above situation is:

a) Unfavourable financial leverage, as the financial risk will be higher.

b) Unfavourable financial leverage, as return on investment is lower than the

cost of debt.

c) Favourable financial leverage as debt is easily available

d) Favourable financial leverage, as return on investment is higher than cost

of debt
2. A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of 1
dandruff in one squeeze'. The product related decision involved is-

a) Branding b) Product quality

c) Packaging d) Labelling

3. With the presence of women in the workforce, there has been a shift towards 1
formal wear, increased demand of electronic gadgets and increase in demand
of cosmetics.

The related dimension of business environment referred in the above lines is:

a) Technological environment. b) Social environment

c) Political environment. d) Economic environment

Name the function of marketing which is effective in bringing repeat sales

4. from the customers and developing brand loyalty for a product. 1

a) Standardization and grading

b) Promotion
c) Customer support services
d) Packaging and labelling

5. SEBI calls for information and issues a show cause notice to stock exchange 1
and its officials seeking explanation and conducting audit and enquiry. Which
function is SEBI performing?

a) Regulatory function b) Development function

c) Protective function d) Both a) and c)

6. 1

Identify the point of significance of management illustrated in the picture.

a) Management helps in achieving group goals

b) Management helps in achieving personal objectives
c) Management helps in development of society
d) Management increases efficiency

7. The allocative function of Financial market helps in ________ 1

a) Bringing transparency in trading procedure

b) Earning higher rate of return to household sector
c) Better functioning of depository
d) Determining the prices of securities

8. IND Dyechem Ltd. is a chemical manufacturing company producing dyes and 1

pigments both for domestic and international market. It has enjoyed a
considerable market share but lately, it has been facing problems in terms of
target sales and customer satisfaction. This is due to the reason that new
entrants have emerged with better technology and competitive pricing. The
Chairman of the company addressed this issue in the departmental meeting.
The production head, Mr. Kamble, advised the Chairman to revamp the
system and take immediate necessary actions to rectify the problem so that
 sales are achieved as per the plans.

Identify the relevant function of management being discussed here.

a) Organising b) Staffing
b) Controlling d) Planning

9. Choose the incorrect statement about pricing objectives as a factor affecting 1

the price of a product.

a) If a firm's objective is to maximize profits in the short run, it should charge

maximum price for its products.

b) If a firm's objective is to capture market share, it should keep low price of its
product.

c) If a firm wants to attain product quality leadership, it should charge lower

prices.

d) If a firm is facing problems in survival due to stiff competition, it may offer

discount on its products.

10. Read the following statements: Assertion (A) and Reason(R). Choose the 1
correct alternative from those given below:

ASSERTION (A): Management is concerned with efficient use of resources.

REASONING (R): For management both efficiency and effectiveness need to

be balanced.

Alternatives:

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).

b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A)

c) Assertion (A) is true but Reason (R) is False

d) Assertion (A) is False but Reason (R) is True

11. Concentration of decision making functions at the apex of management 1
hierarchy is called __________

a) Decentralisation. b) Delegation

c) Organisational structure. d) Centralisation

12. Some employees have been assigned the job of measuring the output in an 1
objective and reliable way. They are applying different techniques for
achieving this aim. Some of these are personal-observation, sample-checking
etc. They are also keeping the units of measurement same as that of the units
in the standards.

Name the step of ‘Controlling process applicable in the above paragraph.

a) Analysing deviations

b) Comparing actual performance with standards.

c) Establishing standards.

d) Measurement of actual performance

13. Statement I: For products requiring long term storage like agricultural 1
products, the warehouses are located near to the market.

Statement II: Higher the level of inventory, higher will be the level of service to
customers but the cost of carrying the inventory will also be high.

Choose the correct option from the following:

a) Statement I is true and II is false

b) Statement II is true and I is false
c) Both the statements are true
d) Both the statements are false
14. Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek 1
observed that Government was taking a special interest in the Tourism
industry as this sector is an important source of foreign exchange and
employment promotion. On the basis of this news, the company decided to
set up hotels at several tourist places. Oshin Hotels Ltd. established 50 hotels
before other companies considered this issue. Very soon, this brand Oshin
Hotels Ltd. became well known in the market. Identify the importance of
business environment described here.

a) It enables the firm to identify opportunities and getting the first mover
advantage.

b) It helps the firm to identify threats and early warning signals.

c) It helps in tapping useful resources.

d) It helps in improving performance.

15. Name the function of management that acts as a means for translating plans 1
into action.

a) Planning b) Directing

c) Organising d) Controlling

STATEMENT I: Electronic holdings can be converted into physical certificates

16. 1
with the process of dematerialisation.
STATEMENT II: There is no danger of theft, loss or forgery of share
certificates in dematerialisation.
Choose the correct option from the following:

a) Statement I is true and II is false

b) Statement II is true and I is false
c) Both the statements are true
d) Both the statements are false
17. ‘Pace.’ is a reputed Chartered Accountant firm which renders services to big 1
MNC’s. The Chartered Accountants of the firm are required to travel to Delhi
and NCR for which they use company’s cars. The firm decided to convert its
Petrol cars to Electric cars in order to improve the quality of life of people.
Identify the dimensions of business environment.

a) Political and Legal environment

b) Legal and Social environment

c) Technological and Political environment

d) Social and Technological Environment

Match the following tools of promotion with their explanation and

18. choose the correct option 1

A. It is undertaken by some identified 1 Personal selling

person /company who makes efforts
and bears the cost of it.
B. It plays an important role at the 2 Sales Promotion
awareness stage and develops
product preferences with the aim of
making sale.
C. It helps in managing public opinion 3 Advertising
and company’s relation with the public
on regular basis.
D. It uses tools specifically designed to 4 Public Relations
promote to customers, middlemen and
to salespersons.

a) A (3), B (1), C (4), D (2)

b) A (1), B (3), C (4), D (2)
c) A (2), B (3), C (4), D(1)
d) A (2), B (4), C (1), D (3)

From the following which is not a relevant feature of management as science:

19. 1
a) Principles are based on the basis of experimentation

b) Systematized body of knowledge

c) Based on practice and creativity

d) Universal Validity
 The aim of demonetisation was not to____________
20. 1
a) Curb corruption
b) Reduce the prices of real estate
c) Withhold the accumulation of black money generated by undeclared
income
d) Counterfeit the use of high denomination notes for illegal activities

21. Captcha Ltd. is a construction company in which all the employees learn 3
various ways of dealing with diverse situations from their seniors. Company
provides financial as well as non-financial incentives. This helps the
employees to grow and develop their abilities. The organisation behaves as a
responsible constituent of society and always creates good quality products. It
has a positive image in the market. The training modules are excellent and
the employees always try to find unique ways of providing solutions in the
context of rapidly changing business environment. This has helped the
organisation to adjust smoothly.

Identify and state three points of importance of management being highlighted

here.

22. State any three reasons as to why controlling is regarded as an indispensable 3

function of management.

OR

Enumerate any three advantages of Management by Exception which is used

by manager in analysing deviations. 3

23. Resolutions Pvt. Ltd. is a publishing company. Its book on Business Studies 3
for class XII is in great demand. As a result, the employees in the marketing
department are always racing against time as they have to work overtime and
on holidays as well to cater to the demand. The work stress has led to
dissatisfaction among the employees of the marketing department.

1. Name and explain the step of staffing process which has not been
performed properly.

2. Also, explain the immediate next step in the process of staffing.

24. State any three functions of Stock Exchange. 3

OR

State the first three steps involved in the screen-based trading for buying and 3
selling of securities.

25. Explain the following features of Directing 4

a) Directing initiates action

b) Directing is a continuous process

OR

Explain the following leadership styles:

4
a) Autocratic leadership
b) Laissez Faire leadership

State any four limitations of using internal sources of recruitment.

26. 4
OR

State any four commonly used sources of recruiting employees from outside
the organisation. 4

27 Mr. Akshay, a 20 year old college student purchased a book online from XYZ 4
Pvt Ltd and when it was delivered, he noticed that there was no MRP
mentioned on it. He browsed the internet and found that the book was sold at
different prices in different places. He filed a case in District forum against the
publisher. The court held in favour of Akshay and awarded a compensation of
₹10,000.

a)Identify and state the consumer right violated in the above case.

b) Name and explain the right exercised by Mr. Akshay.

28. Explain the following factors affecting the dividend decision of the company: 4

a) Taxation Policy
b) Cash Flow Position
29. Identify and state the various elements of communication highlighted in the 4
following cases:

(i) Department 'A' has sent an encoded message to department 'B' through
internet. What is the role of internet here?

(ii) Madhur is making gestures so that he can send a message to Ranbhir.

What is Madhur doing here?

(iii) Ranbhir is trying to understand the message sent by Madhur by reading

his gestures. What is Ranbhir doing here?

(iv) Kamesh picks up his phone and finds a message on it. He reads the
message carefully. What is the role of Kamesh here?

30. Dhaval Acharya, after acquiring a bachelor’s degree in Hotel Management 4

joined his father’s chain of vegetarian restaurants in Ahmednagar. Being
young and enterprising, he suggested his father to add a new section of
vegetarian bakery items which required an investment of ₹ 5 crores. His father
Mr. Aariketh Acharya suggested him to take the decision with caution and
understood everything comprehensively as bad decision may damage the
financial fortune of business.

Identify the decision suggested by Mr. Aariketh Acharya. State by giving any
three reasons as to why he must have advised his son to take decision with
caution.

1) Explain any two techniques of Scientific Management from the following:

31. a) Method study 3+3=6
b) Motion study
c) Time study

2) Differentiate between Unity of Command and Unity of Direction on any

three basis.
OR
1) Explain any two principles of Fayol from the following: 3+3=6
a) Discipline
b) Order
c) Initiative

2) Differentiate between contributions made by F.W.Taylor and Henry Fayol

on any three basis.
32. Explain the steps that are required to be performed by a manager before 6
evaluating all possible courses of action in planning process.

OR

Explain how planning: 6

a) Reduces overlapping and wasteful activities

b) Establishes standards for controlling
c) Facilitates decision making

33. Read the statements given in point 1 and 2, answer the questions that follow: 3+3=6
1) Tea is produced in Assam but is carried to customers not only in this
state but also in other parts of the country.

a) Identify and explain the function of marketing that enables the marketer to
achieve its goals.

b) Enumerate any two factors that marketer should take into consideration in
order to analyse the identified needs.

2) Paddy is grown during summer season but its demand and sale takes
place throughout the year.
a) Name and state the function of marketing which should be undertaken to
reduce the gap between production and consumption of Paddy.
b) State by giving two reasons as to why proper discharge of this function is
important.

6
34. Diligent developers, a website design company in Bangalore is a startup
initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its
first year. Mr. Maniraj appointed Mr. Advait as the Digital marketing Head, Mr.
Kiyansh as the head of Backend department and Mr. Nirved headed the
Graphics Designing Department. Since each head was specialised in specific
skills, it resulted in increased efficiency and better coordination.

However, problems arose when Mr. Advait started considering group

objectives superior to organisational objectives and stopped exchanging
information with Mr. Kiyansh and Mr. Nirved. The company had to bear the
brunt of lack of coordination and was unable to achieve its objectives.
a) Identify and state the organisational structure adopted by the company.
b) State two benefits and two limitations of the identified structure highlighted
in the above case.
 MARKING SCHEME

BUSINESS STUDIES (054)

Class XII (2023-24)

Answers:
Marks

d) Favourable financial leverage as return on investment is higher than

1 cost of debt 1

2 d) Labelling 1

b) Social environment
3 1

c) Customer support services

4 1

a) Regulatory function
5 1

6 a) Management helps in achieving group goals 1

b) Earning higher rate of return to household sector

7 1

8 c) Controlling 1
9 c) If firm wants to attain product quality leadership, it should charge 1
lower prices

10 b) Both Assertion (A) and Reason (R) are true and Reason (R) is not 1
the correct explanation of Assertion (A).

11 d) Centralisation 1

d) Measurement of actual performance

12 1

13 b) Statement II is true and I is false 1

14 a) It enables the firm to identify opportunities and getting the first 1

mover advantage.

c) Organising
15 1

16 b) Statement II is true and I is false 1

17 d) Social and Technological Environment 1

 a) A (3), B (1), C (4), D (2)
18 1

c) Based on practice and creativity

19 1

b) Reduce the prices of real estate

20 1

21 The importance of management highlighted: 1/2mark each

for
1. Helps in achieving personal objectives– A manager identification
motivates and leads his team in such a manner that and 1/2 mark
individual members are able to achieve personal goals each for
while contributing to the overall organizational goals. stating 3
2. Helps in the development of society- The organisation tries identified
to behave as responsible constituent of society and always points
creates good quality products.
3.Creates a dynamic organisation- Organisations have to
function in a constantly changing environment.
Management helps people adapt to the changes so that
organisation is able to maintain a competitive edge.

22 Importance of controlling: (Any Three)

1. The controlling function measures progress towards the

organisational goals and brings to light the deviations, if
any, and indicates corrective action. 1 mark each
2. A good control system enables management to verify for stating
whether the standards set are accurate and objective. any 3 points
3. By exercising control, a manager seeks to reduce wastage
and spoilage of resources. Each activity is performed in
accordance with predetermined standards and norms.
4. A good control system ensures that employees know well in
advance what they are expected to do and what are the
standards of performance on the basis of which they are
appraised.
5. Controlling creates an atmosphere of order and discipline in
the organisation.
6. Controlling provides direction to all activities and efforts for
achieving organizational goals.

OR
 ADVANTAGES OF MANAGEMENT BY EXCEPTION:
1) It saves the time and efforts of managers as they deal with only
significant deviations 1 mark each
2) It focuses managerial attention on important areas. There is for stating
better utilization of managerial talent. any 3 points
3) The routine problems are left to the subordinates. Thus, it
facilitates delegation of authority and increases morale of
employees.
4) It identifies critical problems which need timely action to keep
the organisation in right direction.

The step of staffing process which has not been performed

23 properly is:
1 mark for
(i)Estimation of manpower requirements: Operationally, understanding identification
the manpower requirements would necessitate workload analysis on and I mark
the one hand and workforce analysis on the other. for
explanation
(ii)The next stage immediately following the step Estimation of
manpower requirement is as follows: +

Recruitment: Recruitment may be defined as the process of searching 1 mark for

for prospective employees and stimulating them to apply for jobs in the explaining
organisation. next step
24 Functions of Stock Exchange

1. Stock exchange provides liquidity and marketability to existing

securities by creating a continuous market where securities are 1 mark each
bought and sold. It gives them the chance to invest and for stating
disinvest any 3 points
2. A stock exchange is a mechanism of constant valuation
through which the prices of securities are determined by the
market forces of demand and supply.
3. The membership of a stock exchange is well regulated and
well defined according to the existing legal framework, thereby
ensuring a safe and fair deal to investors in the market.
4. Through the process of disinvestment and reinvestment
savings get channelised into the most productive investment
avenues leading to capital formation and economic growth.
5. Stock exchange ensures wider share ownership by regulating
new issues, better trading practices and taking effective steps
in educating the public about investment.
6. Stock exchange provides sufficient scope for speculative
activity in restricted and controlled manner.

OR

The first 3 steps in screen-based trading in securities OR

1. Investor has to first approach a registered broker and enter

into agreement. He has to open a broker- client agreement and
a client registration form before placing the order. He has to
provide few details like PAN number, date of birth and address,
1 mark each
educational qualification and occupation, Residential
for stating
status,Bank account details, Depository account details,name
each step
of any other broker with whom registered, client code number
in the client registration form. The broker opens a trading
account in the name of investor.

2. The investor has to open a demat account or beneficial owner

account with a depository participant for holding and
transferring securities in the demat form.

3. The investor places an order with the broker to buy or sell

shares. Clear instructions have to be given about the number
of shares and price at which shares can be bought or sold. The
broker will go ahead with the deal to mention the best price
available. Order confirmation slip is issued to the investor by
the broker.
25 a) Directinginitiates action-Directing is a key managerial function. A
manager has to perform this function along with planning, 2 marks each
organizing, staffing and controlling while discharging his duties in the for explaining
organization. points.

b) Directing is a continuous activity- It takes place throughout the life

of organization irrespective of people occupying managerial
positions.

OR

a) Autocraticor Authoritarian leadership style-An autocratic leader

gives orders and expects his subordinates to obey those orders. This
leadership style is effective in getting productivity in many situations 2 marks each
like in a factory where the supervisor is responsible for production
for explaining
on time and has to ensure labour productivity. Quick decision-
making is also facilitated. leadership
styles
b) Laissez fair or Free-rein leader-Such a leader does not believe in the
use of power unless it is absolutely essential.The followers are given
high degree of independence to formulate their own objectives or
ways to achieve them. The manager is only there to support them
and supply them the required information to complete the task
assigned.
 Limitations of using internal sources of recruitment are as follows:
26
1. When vacancies are filled through internal promotions, the 1 mark each
for stating
scope for induction of fresh talent is reduced. Hence, complete
any 4
reliance on internal recruitment involves danger of ‘inbreeding’
limitations
by stopping ‘infusion of new blood’ into the organization.
2. The employees may become lethargic if they are sure of time
bound promotions;
3. A new enterprise cannot use internal sources of recruitment.
No organisation can fill all its vacancies from internal sources;
4. The spirit of competition among the employees may be
hampered; and
5. Frequent transfers of employees may often reduce the
productivity of the organisation.
OR OR

Commonly used sources of recruiting the employees from outside the

organization (any 4)
Direct recruitment- A notice is placed on the notice board of the
enterprise specifying the details of the jobs available. Job-seekers
assemble outside the premises of the organisation on the specified
date and selection is done on the spot. It is suitable for filling casual
vacancies when there is a rush of work or when some permanent
workers are absent.
Casual Callers - Many reputed business organizations keep a
database of unsolicited applicants in their offices. A list of such job-
seekers can be prepared and can be screened to fill the vacancies
as they arise. Most of the senior positions of industry as well as
commerce are filled by this method. The advantage of advertising
vacancies is that more information about the organization and job
can be given in the advertisement. . 1 mark each
for stating
Employment exchange- Employment exchange run by a government
are a good source of recruitment for unskilled and skilled operative any 4
jobs. They help to match personnel demand and supply by serving external
as a link between job-seekers and employers. sources
Placement Agencies and management consultants- Placement
agencies provide a nationwide service in matching personnel
demand and supply. Management consultancy firms help the
organization to recruit technical, professional and managerial
personnel.
Campus recruitment-Many big organisations maintain a close
liaison with the universities, vocational schools and management
institutes to recruit qualified personnel for various jobs.
Recommendation of employees – Applicants introduced by present
employees, or their friends and relatives may prove to be a good
source of recruitment. Such applicants are likely to be good
employees because their background is sufficiently known.
Labour Contractors – Labour contractors maintain close contacts
with labourers and they can provide the required number of unskilled
workers at short notice.
Advertising on Television- The detailed requirements of the job and
the qualities required to do it are publicized along with the profile of
the organization where vacancy exist .
Web publishing- Internet is becoming a common source of
recruitment these days. There are certain websites specifically
designed and dedicated for the purpose of providing information
about both job-seekers and job opening.
 a) Right to be informed :Every consumer has a right to have complete
27 information about the product he intends to buy including its 1 mark each
ingredients, date of manufacture, price, quantity, directions for use for
etc. identification

+
b) Right to seek redressal: This states that every consumer has the
right to get relief in case the product or service falls short of 1 mark each
expectations. for
explanation
 Taxation policy: If tax on dividend is higher, it is better to pay less by
28 way of dividends. Though dividends are free of tax in the hands of 2 marks each
shareholders, a dividend distribution tax is levied on companies. Under for explaining
the present tax policy, shareholders are likely to prefer higher
dividends.

Cash flow position: The payment of dividend involves an outflow of

cash. Availability of enough cash in the company is necessary for
declaration of dividend.
 1. Media- It is the path through which encoded message is
29 transmitted to receiver. The channel maybe in the written form, face to
face, phone call, internet.

2. Encoding- It is a process of converting the message into ½ mark each

communication symbols like words, pictures, gestures etc. for
3. Decoding- It is a process of converting encoded symbols of the identification
sender. and ½ mark
4.Receiver- The person who receives communication of the sender. for stating
30 Mr Aariketh Acharya has suggested capital budgeting decision. 1 mark for
identification
Reasons why he must have advised this decision are:
+
1. These decisions have bearing on the long-term growth. They
affect the future prospects of the business. 1 mark each
2. These decisions result in large portion of funds being blocked for stating
in long term projects, these investments are planned after a any 3 points
detailed analysis.
3. These decisions affect the returns of the firm, therefore
influence the overall business risk complexion of the firm.
4. These decisions once taken, are not reversible without
incurring heavy losses. Abandoning a project after heavy
investment is costly in terms of waste of funds.
31
a) Method Study: The objective of method study is to find out one
best way of doing the job. There are various methods of doing
the job. To determine the best way there are several
parameters. Right from procurement of raw materials till the
final product is delivered to the customer every activity is part
of method study. The objective of the whole exercise is to 11/2 marks
minimise the cost of production and maximise the quality and each for
satisfaction of the customer. For this purpose, many explaining
techniques like process charts and operations research etc., any 2
are used. techniques
b) Motion Study: Motion study refers to the study of movements +
like lifting, putting objects, sitting and changing positions etc., 1 mark each
which are undertaken while doing a typical job. Unnecessary for any 3
movements are sought to be eliminated so that it takes less differences
time to complete the job efficiently. On close examination of
body motions, for example, it is possible to find out: (i) Motions
which are productive (ii) Motions which are incidental (e.g.,
going to stores) (iii) Motions which are unproductive.

c) Time Study: It determines the standard time taken to perform a

well-defined job. Time measuring devices are used for each
element of task. The standard time is fixed for the whole of the
task by taking several readings. The method of time study will
depend upon volume and frequency of the task, the cycle time
of the operation and time measurement costs. The objective of
time study is to determine the number of workers to be
employed; frame suitable incentive schemes and determine
labour costs.

b)

BASIS UNITY OF UNITY OF

COMMAND DIRECTION

1.Meaning One subordinate Each group of

should receive orders activities having same
from and should be objective must have
responsible to only one head and one plan
one superior.

2.Aim It prevents dual It prevents

subordination. overlapping of
 activities

3.Implications It affects an It affects the entire

individual employee organisation.

OR

a. Discipline: Discipline is the obedience to organisational rules

and employment agreement which are necessary for the
working of the organisation. According to Fayol, discipline
requires good superiors at all levels, clear and fair agreements
and judicious application of penalties.

b. Order: According to Fayol, “People and materials must be in

suitable places at appropriate time for maximum efficiency.”
The principle of order states that ‘A place for everything
(everyone) and everything (everyone) in its (her/his) place’.If
there is a fixed place for everything and it is present there, then
there will be no hindrance in the activities of business/ factory. 11/2 marks
This will lead to increased productivity and efficiency. each for
explaining
c. Initative: Workers should be encouraged to develop and carry any 2
out their plans for improvements according to Fayol. Initiative principles
means taking the first step with self-motivation. It is thinking out
+
and executing the plan. Initiative should be encouraged. But it
does not mean going against the established practices of the 1 mark each
company for the sake of being different. A good company for any 3
should have an employee suggestion system whereby differences
initiative/ suggestions which result in substantial cost/time
reduction should be rewarded.

II.
Basis of Difference Henri Fayol F.W Taylor

Perspective Top level of Shop floor level of

Management a factory.

Unity of Command Staunch Proponent Did not feel that it

is important as
under functional
foremanship a
worker receives
 orders from eight
specialists

Applicability Applicable Applicable to

Universally specialized
situations

Basis of Formation Personal Experience Observation and

Experimentation

Focus Improving Overall Increasing

administration Productivity

Personality Practitioner Scientist

Expression General theory of Scientific

Administration Management
32 Steps in planning process

1. Setting objectives: Objectives or goals specify what the 2 marks

organisation wants to achieve. They give direction to all each for
departments and must be stated clearly. They may be set for explaining
the entire organisation and each department within the first 3 steps
organisation
2. Developing premises: Planning is concerned with future which
is uncertain, therefore manager has to make certain
assumptions about future. Assumptions are base material upon
which plans are drawn which may be in the form of forecasts,
existing plans or past information about policies.
3. Identifying alternative courses of action: Once objectives are
set and assumptions are made, next step is to identify
alternative courses of action. The course of action may be
routine or innovative. An innovative course may be adopted by
involving more people and sharing their ideas.

OR

1) Planning reduces overlapping and wasteful activities

2 marks each
Planning serves as a basis of coordinating the activities and efforts of for explaining
different divisions, departments and sections. Since planning ensures 3 points
clarity in thought and action, work is carried out smoothly without
interruptions.

2) Planning establishes standards of controlling

Planning provides the goals against which actual performance is

measured. Through comparison, managers can know whether they
are actually able to achieve the goals. Deviations, if any can be
corrected. Thus planning is a prerequisite for controlling. The nature
of deviations depends upon the extent of deviations from the
standard.

3) Planning facilitates decision making

Planning helps managers to look into the future and make a choice
from amongst various alternative courses of action. The manager has
to evaluate each alternate and select the most viable proposition.
 a) The function of marketing that enables the marketer to achieve
33 its goals is Transportation. a)1 mark for
identification
It involves physical movement of goods from one place to another.
Since the user of products are wide spread and geographically +
separated from the place where they are produced it is necessary to
move them to the place where they are needed for consumption. 1 mark for
stating
b)The factors that should be taken into consideration to analyse the
marketing needs are nature of the product, cost and location of target b)½ mark
market. each for
enumerating
c) The function of marketing that reduces the gap between production any 2 points
and consumption of paddy is Storage or Warehousing.
c)1 mark for
Due to irregular demand or supply, there may be time gap between identification
production of goods and their sale. Storage helps in reducing the time + 1 mark for
gap between production and consumption and provides time utility. stating + 1/2
mark each
Importance of warehousing: for stating
any 2points
1. To ensure smooth flow of products in the market
2. To protect against any unavoidable delays in delivery or meet
contingencies in demand.
 a) The organisational structure adopted by Diligent Developers is a. 1
34 Functional structure . Functional structure is an organisational design mark for
that groups similar or related jobs together. identification
b) Benefits of functional structure: + 1 mark for
stating

1) It leads to occupational specialization since emphasis is placed on

specific functions.This promotes efficiency in utilization of manpower b 2 marks
as employees perform similar tasks within a department and are able each for
to improve performance. stating 2
points of
benefits and
2) It promotes control and coordination within a department because of limitations.
similarity in the tasks being performed.

Limitations of functional structure:

(a) A functional structure places less emphasis on overall enterprise

objectives than the objectives pursued by a functional head. Such
practices may lead to functional empires wherein the importance of a
particular function may be overemphasised. Pursuing departmental
interests at the cost of organisational interests can also hinder the
interaction between two or more departments.

(b) It may lead to problems in coordination as information has to be

exchanged across functionally differentiated departments