Questions and Answers
What is the primary focus of the systems approach?
Which of the following is a characteristic of the systems approach?
Which of the following is an advantage of the systems approach?
Which of the following is a characteristic of responsiveness in the systems approach?
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What is a potential disadvantage of the systems approach?
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What is the primary benefit of clearly defining the focus of each part of the system?
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What is the primary disadvantage of focusing on the overall system rather than sub-systems?
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Which of the following is a characteristic of dependency in the systems approach?
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What is the primary advantage of using the systems approach?
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What is the primary benefit of using the systems approach in business?
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Study Notes
Conceptual Skills
- Conceptual skills involve viewing the enterprise as a whole and analyzing the implications of external environmental factors (economic, social, political, technological, etc.) for its successful functioning.
Importance of Management
- Enables an enterprise to achieve its desired objectives through proper planning and control
- Ensures the optimum utilization of resources (materials, machines, and money) and efficient use of human resources
- Fulfills social obligations by monitoring the business environment and making necessary changes to policies and practices
- Ensures the stability of the organization in a fast-changing environment
- Improves the personality and caliber of people to raise their efficiency and productivity
- Meets the challenge of change through innovation and creativity
- Integrates various interests to achieve the objectives of the organization
Functions of Management
Planning
- Deciding in advance what should be done in the future
- Helps to work in a systematic manner
- Provides the basis for measuring actual performance
- Eliminates the tendency to work at random
- Determines the priorities of the business
- Is goal-oriented, an intellectual activity, primary, all-pervasive, continuous, and forward-looking
Organizing
- The process of bringing together the necessary resources for the accomplishment of the objectives
- Divides the total work into different parts for better performance
- Provides authority and responsibility
- Establishes answerability or accountability on the part of subordinates to their superiors
- Identifies the activities to be performed
- Groups activities
Staffing
- Employing the right number and right kind of employees to do various jobs
- Ensures the efficient use of human resources
- Impacts the cost of operation and the potential of employees
Distinction Between Public Company and Private Company
- Minimum paid-up capital: Rs. 1,00,000 for Private Company, Rs. 5,00,000 for Public Company
- Minimum number of members: 2 for Private Company, 7 for Public Company
- Limited liability: limited to the extent of capital in both cases
- Perpetual existence: Public Company has a separate legal entity, unaffected by death, retirement, or insolvency of shareholders
- Transfer of shares: freely transferable in Public Company, requires consent of all partners in Private Company
- Finance: vast and unlimited scope for raising finance in Public Company, relatively limited in Private Company
Cooperative Societies
- Have a separate legal entity
- Limited liability: liability of members is limited to the extent of their capital
- Perpetual existence: unaffected by death, insolvency, retirement, or lunacy of members
- Social service: fosters fellow feeling and inculcates moral values
- Open membership: open to all, regardless of caste, color, creed, or economic status
- Tax advantage: exempt from income-tax and surcharge on earnings up to a certain limit
- State assistance: receives grants, loans, and financial assistance from the government
- Democratic management: management is entrusted to the managing committee elected by members
Disadvantages of Cooperative Societies
- Lack of secrecy: annual reports and accounts are submitted to the Registrar of Cooperative Societies
Systems Approach
- Factors: dependency, responsiveness, results, and focus
- Advantages: helps to see the problem at a holistic level, resolves issues, and understands the problem in a better way
- Disadvantages: problems may be too complex, and focus on sub-systems may be required
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Description
This quiz covers the concept of management, its importance, and its role in achieving group goals. It also discusses the impact of external environmental factors on the enterprise.