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Questions and Answers

Which of the following best describes the primary difference between training and development?

  • Training aims to improve current job performance, while development prepares employees for future roles. (correct)
  • Training is typically conducted off-the-job, whereas development occurs on-the-job.
  • Training is mandatory for all employees, while development is optional and employee-driven.
  • Training focuses on long-term career goals, while development addresses immediate job skills.

An employee is struggling with a new software implementation. Which on-the-job training method would be MOST effective for quickly improving their skills?

  • Vestibule training in a simulated environment.
  • Coaching and mentoring by a supervisor. (correct)
  • Job rotation to understand different department functions.
  • Apprenticeship with a senior team member.

What is the primary aim of 'directing' in the context of management?

  • To establish financial controls within the organization.
  • To guide and oversee employees in achieving organizational goals. (correct)
  • To ensure compliance with legal and ethical standards.
  • To develop long-term strategic plans for the company.

According to Maslow's hierarchy of needs, which need should be addressed first?

<p>Physiological needs (e.g., food, water, shelter) (C)</p> Signup and view all the answers

A manager decides to implement a policy where employees are encouraged to generate ideas, participate in decision-making, but the manager still makes the final decision. Which leadership style is the manager employing?

<p>Democratic (A)</p> Signup and view all the answers

Which of the following is the LEAST likely barrier to effective communication within an organization?

<p>Use of a clear and concise language. (C)</p> Signup and view all the answers

Within the context of organizational control, why is the establishment of clear and measurable standards MOST important?

<p>To provide a basis for comparing actual performance with planned performance. (B)</p> Signup and view all the answers

How does financial management contribute to an organization's strategic goals?

<p>By providing resources for innovation, growth, and operational efficiency. (D)</p> Signup and view all the answers

An organization is comprised of diverse individuals with varying needs, all working together to achieve a common organizational goal. Which management feature does this scenario exemplify?

<p>Goal Oriented (B)</p> Signup and view all the answers

Which level of management is primarily responsible for making sure that each department has the necessary personnel to achieve its goals?

<p>Middle Level (C)</p> Signup and view all the answers

Coordination plays an integral role in ensuring all functions of management work together harmoniously. Which of the following management functions is directly associated with coordination?

<p>All of these (B)</p> Signup and view all the answers

Which level of management is primarily responsible for the formulation of organizational policies?

<p>Top level managers (A)</p> Signup and view all the answers

An organization's ability to generate sufficient revenue to cover its costs highlights which management objective?

<p>Organisational objective (D)</p> Signup and view all the answers

Which level of management is highlighted by the function 'To cooperate with other departments for the smooth functioning of the organisation'?

<p>Middle (B)</p> Signup and view all the answers

Ms. Sonia is a section officer at Epson Ltd. At which level of management does she operate?

<p>Middle (B)</p> Signup and view all the answers

Which of the following is the force that binds all other functions of management together, ensuring a unified and effective operation?

<p>Coordination (A)</p> Signup and view all the answers

Which objective of financial management aims to balance risk and profitability to maximize shareholder wealth?

<p>Wealth maximization. (D)</p> Signup and view all the answers

A company is considering a project with a high potential return but also a significant risk of loss. Which financial decision is MOST directly involved in this scenario?

<p>Investment decision (B)</p> Signup and view all the answers

Which factor, when deciding on capital structure, focuses on maintaining the ability to meet short-term obligations?

<p>Cash Flow Position (A)</p> Signup and view all the answers

Which of the following pairs correctly matches a management term with its description?

<p>Middle Level Management - It consists of divisional or departmental heads. (B)</p> Signup and view all the answers

A company is developing a long-term strategy for raising capital, managing expenses, and investing in assets. This activity aligns with which concept?

<p>Financial Planning (C)</p> Signup and view all the answers

Which of the following is the MOST significant factor a company should consider when determining its optimal capital structure?

<p>The risk-return tradeoff. (C)</p> Signup and view all the answers

Yash Ltd. is experiencing declining profits and market share due to departmental conflicts. Which management quality is the company primarily lacking?

<p>Coordination (C)</p> Signup and view all the answers

A manufacturing company is considering investing in new machinery to increase production capacity. This investment primarily affects which type of capital requirement?

<p>Fixed Capital (C)</p> Signup and view all the answers

In the context of Yash Ltd.'s problems, what is the MOST significant benefit of improved coordination between departments?

<p>Harmonious achievement of organizational objectives. (A)</p> Signup and view all the answers

If a company is seeking short-term funds to manage its day-to-day operational expenses, which market would it MOST likely utilize?

<p>Money Market (A)</p> Signup and view all the answers

As organizations grow, the need for coordination typically:

<p>Increases, due to a greater number of people and potentially conflicting purposes. (D)</p> Signup and view all the answers

An investor purchases shares of a company directly from the company during its initial public offering (IPO). In which market does this transaction take place?

<p>Primary Market (A)</p> Signup and view all the answers

Functional differentiation within an organization necessitates coordination to:

<p>Create unity of action and avoid conflicts between interdependent departments. (D)</p> Signup and view all the answers

Why is coordination particularly important in organizations with a high degree of specialization?

<p>To avoid conflict between specialists and other members and integrate their efforts. (D)</p> Signup and view all the answers

Vee Ltd.'s management emphasizes teamwork and integration of efforts. Which management principle BEST aligns with this philosophy?

<p>Coordination (B)</p> Signup and view all the answers

What is the relationship between coordination and organizational goals?

<p>Coordination is necessary to fulfill common organizational goals by integrating efforts. (C)</p> Signup and view all the answers

A company exceeded its target sales at the end of the month. Which management function is exemplified by comparing the actual sales with the targeted sales?

<p>Controlling (C)</p> Signup and view all the answers

Megha Ltd. decided to shift its manufacturing unit to a backward area to reduce labor costs. Which type of organizational objective does this decision primarily address?

<p>Profit Objective (A)</p> Signup and view all the answers

Megha Ltd. began manufacturing solar water-heaters to reduce the production of electric water-heaters. Which objective of management is the company trying to meet?

<p>Social Objective (B)</p> Signup and view all the answers

Mr. Aditya is responsible for framing the plans and policies of M/s Evershine Industries. At which level of management is he working?

<p>Top Level (D)</p> Signup and view all the answers

Which organizational objective focuses on ensuring the company's ability to sustain operations over an extended period?

<p>Survival (C)</p> Signup and view all the answers

A manager applies their conceptual knowledge of management along with personal skills. Which nature of management is indicated in this statement?

<p>Management as an Art (C)</p> Signup and view all the answers

Which importance of management is highlighted when a company successfully implements new changes within the organization?

<p>Management creates a dynamic organization (D)</p> Signup and view all the answers

A manager maintains an orderly arrangement of group efforts to align actions towards a common company purpose. Which process is being referred to?

<p>Organizing (A)</p> Signup and view all the answers

In the 'AapkaVidyalaya' scenario, which principle of management was most directly applied to ensure the success of the foundation day program?

<p>Esprit De Corps (B)</p> Signup and view all the answers

Karan Nath implemented changes at 'D’ North Motor Company based on the belief that there is one best way to maximize efficiency. Which principle of scientific management does this align with?

<p>Science, not rule of thumb (D)</p> Signup and view all the answers

If 'AapkaVidyalaya' decided to assign specific roles and associated powers strictly according to the skills of each prefect, which management principle would they be emphasizing?

<p>Division of Work (B)</p> Signup and view all the answers

Suppose Karan Nath also focused on fostering a culture of mutual understanding between the management and workers. Which principle of scientific management would this represent?

<p>Harmony, not discord (D)</p> Signup and view all the answers

If, midway through planning the foundation day programme, some members of the prefect committee at 'AapkaVidyalaya' began to prioritize their own interests over the group's objectives. Which principle is being weakened?

<p>Esprit De Corps (B)</p> Signup and view all the answers

Had Karan Nath chosen to rely solely on his past experiences rather than adopting the production manager's method study, which principle of scientific management would he be neglecting?

<p>Science, not rule of thumb (B)</p> Signup and view all the answers

If 'AapkaVidyalaya' allowed some students to take on additional responsibilities in the organization of the foundation day, without giving them the necessary decision-making power, what would it indicate?

<p>Improper delegation of authority (B)</p> Signup and view all the answers

Suppose the production manager at ‘D’ North Motor Company suggested that workers should only focus on maximizing their individual output and ignore the needs of the overall team. Which principle of scientific management would he be violating?

<p>Cooperation, not individualism (D)</p> Signup and view all the answers

Flashcards

Training

Systematic process of teaching new or existing employees the technical skills to perform a specific job.

Development

Preparing employees for future responsibilities and roles within the organization, focusing on broader skills and knowledge.

On-the-Job Training

Training conducted in the actual work environment, where employees learn while performing their job duties.

Off-the-Job Training

Training that takes place outside of the normal work environment, such as workshops, conferences, or simulations.

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Directing

Guiding and supervising employees to ensure organizational goals are achieved effectively.

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Motivation

The process of stimulating people to act to accomplish desired goals.

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Authoritative Leadership

Leaders make decisions without much input from the team.

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Controlling

Ensuring activities conform to plans; involves measuring performance, comparing it with standards, and taking corrective actions.

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Financial Management Objectives

Effective acquisition and allocation of financial resources to achieve organizational goals.

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Three Financial Decisions

Decisions related to investment, financing, and dividend policies impacting a firm's value.

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Financial Planning

A strategy for estimating capital requirements and ensuring sufficient funds are available for business needs.

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Capital Structure

The mix of debt and equity a company uses to finance its operations and growth.

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Fixed vs. Working Capital

Resources used for long-term assets vs. short-term operational needs.

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Financial Market

A place where financial instruments are traded.

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Money Market

Deals with short-term debt instruments.

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Stock Exchange

A marketplace for buying and selling shares of publicly held companies.

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Individual Objective (Management)

Meeting various needs of employees within the organization.

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Social Objective (Management)

Aimed at benefiting society as a whole.

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Management: Group Activity

Ensuring teams work together to achieve company wide targets.

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Pervasive Function

Management that affects all levels and departments within an organization.

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Middle Level Responsibility

Securing necessary personnel within a department.

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Coordination

Coordinates all management functons for optimal efficiency

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Policy Formulation

Includes creating strategic plans and setting company direction.

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Survival (Org Objective)

Ensuring the company makes enough money to cover its expenses.

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Directing (in management)

Guiding and motivating employees to achieve sales targets.

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Controlling (in management)

Comparing actual performance (e.g., sales) with planned targets.

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Survival (Organizational Objective)

Earning enough revenue to cover all costs.

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Profit (Organizational Objective)

Earning sufficient revenue to cover costs and provide a return to investors.

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Growth (Organizational Objective)

Expanding the business in terms of sales, market share, or new products.

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Social Objective (of Management)

Contributing to the well-being of society (e.g., using eco-friendly practices).

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Top-Level Management Role

Involves framing plans and policies for the organization.

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Management's Role in Change

Implementing new changes effectively within the organization.

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Effectiveness

Extent to which objectives are achieved.

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Middle Level Management

The level of management that consists of divisional or departmental heads.

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Efficiency

Doing things right, minimizing waste of resources and costs.

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Impact of Poor Coordination

Lack of coordination between departments leads to declining profits and market share.

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Coordination & Growth in Size

Coordination is needed to integrate efforts and activities as the number of people in the organization increases.

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Coordination & Functional Differentiation

Coordination brings unity of action and helps avoid conflicts between interdependent departments.

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Coordination & Specialization

Coordination is required to avoid conflict between specialists and other members of the organisation.

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Authority

The right to give orders and the power to exact obedience.

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Responsibility

The obligation of an individual to carry out assigned duties.

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Initiative

Encouraging employees to take the first step; thinking and executing the plan.

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Equity

Fair and impartial treatment of employees to foster cordial relations.

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Division of Work

Dividing work into smaller tasks leads to specialization and efficiency.

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Esprit de Corps

Management principle promoting team spirit and harmony among employees.

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Science, not Rule of Thumb

Replacing traditional, arbitrary methods with scientific study and analysis to determine the most efficient techniques for a task.

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Harmony, not discord

Promoting mutual understanding between management and workers to foster a collaborative environment

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Study Notes

  • This material is study support material for Business Studies, class XII, for the academic year 2024-25.
  • It is designed to help students understand the key concepts in the curriculum.

Message from Nidhi Pande, Commissioner, Kendriya Vidyalaya Sangathan

  • The Central Vidyalaya Sangathan prioritizes academic excellence in school education.
  • Students, teachers, and educational leaders are continuously working toward improvement.
  • The National Education Policy 2020 emphasizes competency-based learning and evaluation.
  • Meeting standards and following CBSE guidelines makes current efforts more challenging.
  • The 'Student Support Material' compiled by the five Zonal Institutes of Education and Training (ZIETs) of Kendriya Vidyalaya Sangathan is an important step in this direction.

Index

  • This material outlines the CBSE curriculum and question paper design for 2024-25.
  • It provides topic-wise support, covering principles and functions of management, business finance, and marketing.
  • It includes CBSE board question papers from March 2024 with marking schemes.

Business Studies Class XII (2024-25) Structure

  • Part A focuses on Principles and Functions of Management, allotting 110 periods and 50 marks.
  • Part B covers Business Finance and Marketing with 80 periods and 30 marks.
  • Part C is dedicated to Project Work, accounting for 30 periods and 20 marks.

Part A - Principles and Functions of Management - Unit 1: Nature and Significance of Management

  • This unit covers the concept, objectives, and importance of management.
  • It examines management as a science, art, and profession.
  • The unit also discusses levels of management, the functions of management, and coordination.

Principles of Management - Unit 2

  • This section will improve comprehension of management principles and their significance.
  • Principles formulated by Fayol will be explored.
  • Explores 'Scientific Management' along with its techniques from Taylor.
  • A comparison will be made between the contributions of Fayol and Taylor.

Business Environment - Unit 3

  • This unit will improve comprehension of 'Business Environment' and its importance.
  • The various dimensions of 'Business Environment', such as Economic, Social, Technological, Political, and Legal, will be discussed.
  • The concept and components of demonetization will be explored.

Planning - Unit 4

  • This unit will improve comprehension of various types of plans, like Objectives, Strategy, Policy, Procedure, Method, Rule, Budget and Programme.
  • The concept, importance, and limitations of planning will be discussed.
  • The steps in planning procedures will be explored.

Organising - Unit 5

  • Concepts, importance, and steps in the organizing process will be discussed.
  • Students will learn about functional and divisional structures of organization.
  • Advantages, disadvantages, and suitability of functional and divisional structures will be covered.
  • The concept of formal and informal organizations, including advantages and disadvantages.
  • Learn about the elements of delegations with and the importance of delegation.
  • The concepts and importance of decentralization will be discussed.
  • Differentiation between delegation and decentralization.

Staffing - Unit 6

  • This unit explores the concept and importance of staffing.
  • It looks at staffing as a part of Human Resource Management.
  • Additionally, it covers the staffing process, recruitment, and selection.

Directing - Unit 7

  • This unit focuses on the concept and importance of directing.
  • It explores the elements of directing including motivation, leadership, and communication.
  • Includes study of Maslow's hierarchy of needs.

Controlling - Unit 8

  • Key lessons include insight to the concept and importance of controlling,
  • Students will gain familiarity with the relationship between planning and controlling.
  • The discussion includes the process involved in control and management.

Unit 9: Financial Management

  • This unit includes discussion on the concept, role, and objectives of financial management.
  • Exploration of financial decisions like investment, financing, and dividend factors affecting them.
  • Discussion of the objectives, concept, and importance of collecting data by financial planning .
  • Insights on the concept of capital structure and factors that affect it in a practical structure.
  • Discussion with both the concept and affecting requirements elements involved in fixed and working capital.

Unit 10: Financial Markets

  • This section aims to describe the concept of financial markets, money markets, and capital markets.
  • To Explain primary and secondary markets as types of capital market.
  • Students should be able to differentiate between capital and the money market, as well as primary and the secondary markets.
  • Understanding of stock exchange functions and trading procedures.

Unit 11: Marketing

  • Understand the details of marketing with concepts functions and philosophies.
  • Breakdown detail about marketing mix with concept and elements, as well as understanding what it is.
  • Description the product branding and the package process is like including concept, labelling all around.
  • Provides an outline on how factors determine price, and concepts for marketing in a elements way.
  • Discussion with element channels on physical distribution
  • Provides context to promotion elements and what the role the concept is.

Unit 12: Consumer Protection

  • This unit aims to establish the concept of consumer protection, it's importance, and it's scope according to law.
  • Legal rights and consumer awareness are discussed according to organisations.
  • Reference to the Consumer Protection Act, 2019 with the rights and responsibilities of consumers.
  • Details of redressal machinery and available remedies for complaints.

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