DATE: / /2023 WORKSHEET TIME: 40 MIN

CLASS: XII / DIV: C/D/E/F SUBJECT: BUSINESS STUDIES MAX. MARKS: 20

TOTAL NO. OF PAGES: 5 SUB. CODE: 054
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Name: ____________________________________________________ Roll No.: ________

NATURE AND SIGNIFICANCE OF MANAGEMENT

1) Hero Ltd.’s target is to produce 10,000 shirts per month at a cost of Rs.150 per shirt The production (3)
manager could achieve this target at a cost of Rs. 160 per shirt. Do you think the production manager' is
effective? Give reason in support of your answer
2) Ashita and Lakshita are employees working in Dazzling enterprises dealing in costume jewellery. The firm (3)
secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were assigned
the responsibility of producing 500 bracelets each at a cost of Rs 100 per bracelet.
Ashita was able to produce the required number within the stipulated time at the cost of Rs 55,000
whereas, Lakshita was able to produce only 450 units at a cost of Rs 90 per unit. State whether Ashita
and Lakshita are efficient and effective. Give reasons to justify your answer.
3) Sanjana is the branch manager of ABC Handicrafts Pvt. Ltd. The company's objective is to promote the (6)
sales of Indian handloom and handicraft products. Its sells fabrics, furnishings, ready-mades and
household items made out of traditional Indian fabrics. Sanjana decides quantities, variety, colour and
texture of all the above items and then allocates resources for their purchase from different suppliers. She
appoints a team of designers and crafts people in the company, who developed some prints for bed
covers in bright colours on silk. Although they looked very impressive, they were more expensive than
they had planned to sell. Average customer could not afford to buy it. Praising their effort, Sanjana
suggested that they should keep the silk bed covers for special occasions like Diwali and Christmas and
offer the cotton bed covers on a regular basis to keep costs under control
Identify and state the functions of management which Sanjana performs by quoting the lines from the
above para.
4) Fashion India Limited is a chain of ladies’ garments boutiques where most of the work is done manually. (3)
Due to coming of international brands in India, the company is finding it difficult to compete on two fronts -
finishing and embroidery work. The production manager realized that without modern machines it would
not be possible for them to survive for long. The company purchased new hi-tech modern machines from
Germany. During the production process, the manager observed that the quality of production is not as
per standard and very often production is disrupted due to beak-down of machinery. The workers get
frustrated by continuous rejection of output and started showing resistance towards new technology. To
increase the efficiency of the workers, the company decided to train their worker on-the-job under the able
guidance of specialists. The worker who are able to pick the skills are promoted and made in-charge of
the not so trained groups. This created positive impact and encouraged to communicate freely.
Identify and explain any three points of importance of management highlighted in the above case by
quoting the lines.
5) Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerator. He found that (4)
his department was under-staffed and other departments were not cooperating with his department for
smooth functioning of the organisation. Therefore, he ensured that his department has the required
number of employees and its cooperation with other departments is improved.
(a) Identify the level at which Rishitosh Mukerjee was working.
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 (b) Also, state three functions required to be performed by Rishitosh Mukerjee at this level.
6) Hema is one of the most successful managers of her company. "Kobe Ltd.". She uses her creativity and (4)
initiative in handling challenging situations at work. The knowledge gained by her during her student days
at a renowned management institute as well as through her observation and experience over the years is
applied by Hema in a skillful manner in the context of the realities of a given situation. She often reads
books and other literature in various fields of management to keep her knowledge updated.
(i) An aspect of the nature of management is being highlighted in the description. Identify the aspect
(ii) Explain any three features of the aspect identified in part (i)
7) Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy products in Maharashtra (6)
state. Aman is a holder of Senior Secondary School Certificate from Central Board of Secondary
Education with Business studies as one of his elective subjects. Ahmad had done his post-graduation in
History and Ally in dairy farming. One day there was a serious discussion between Ahmad and Ally
regarding the nature of management. Ahmad argued that management was a profession whereas Ally
argued against it saying that the legal and medical professions are the only professions because they fulfil
all the conditions of a profession.
Aman on the basis of his knowledge of business studies explained the nature of management as a
profession to Ahmad and Ally.
Explain, how Aman would have satisfied both Ahmad and Ally.
8) Smita Rai is the director of Namchi Designer Candles, which has 100 per cent women as employees, (6)
they also produce varieties of candles. During Diwali, they produce customized candles meant for the
occasion. Smita plans her Diwali collection in the month of June itself. She has to then ensure the there is
adequate workforce and continuously monitor whether production is proceeding according to plans. Her
marketing department also has to be briefed in time to prepare their promotional and advertising
campaigns.
At Namchi Designer Candles, the production and sales department coordinate their work, so that
production takes place according to the demand in the market. The purchase. production and sales
departmental efforts have to be coordinated by Smita for achieving organizational objectives
harmoniously. The purchase department is responsible for procuring fabric, This then become the basis
of the activities of the production department and finally ule can take place. If fabric purchased is of an
inferior quality or is not according to the specifications of the production department, further sales will also
decline.
Identify and explain by quoting lines from the above the three characteristics of coordination.
9) Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of (3)
the complexities of modern technology and the diversity of tasks to be performed. Organisation, therefore,
need to employ a number of specialists. Specialists usually think that they only are qualified to evaluate,
judge and decide according to their professional criteria. They do not take advice or suggestions from
others. This often leads to conflict amongst different specialists as well as others in the organisation.
State the reason why coordination is required in such a case.
PRINCIPLES OF MANAGEMENT
1) In a company, sales manager has to negotiate a deal with a buyer. She finds that if she can offer credit (3)
period of 60 days she is likely to clinch the deal which is supposed to fetch the company net margin of say
Rs. 50 crore. But the company gives power to the manager to offer a credit period of only 40 days. As a
result, she could not negotiate the deal with the buyer.
(a) Is the sales manager liable for this? Give reason in support of your of answer.
(b) Should the sales manager be giver be given a power to offer a credit period of 100 days? Justify your

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 answer.
2) Zoya International Ltd. is a multinational company in which people of various nationalities work together (6)
with a term spirit of unity and harmony in a discrimination free environment. Equal opportunities are
available for everyone in the company. The pay and compensation of all the employees is just and
equitable.
(a) State the principle of management being followed by Zoya International Ltd.
(b) What benefit will Zoya International Ltd. derive by following the principles in part (a).
3) Zaika Ltd. is a company manufacturing garments under the brand name 'Amol'. The management of the (6)
company does not give workers reasonable time to show results. Even the management does not
promote a team spirit of unity and harmony among the workers. The workers often have to work under
two superiors at the same time.
(a) Identify and state the principles of management overlooked in the above case.
(b) State the consequences which Zaika Ltd. will have to face by not following the principles identified in
part (a).
4) Rajat joined as a CEO of Bharat Ltd, a firm manufacturing Computer hardware. On the first day he (6)
addressed the employees. He said that he believed that a good company should have an employee
suggestion system and he wished to minimize employee turnover to maintain organizational efficiency.
He informed all employees that he would ensure that all agreements were clear, fair and there was
judicious application of penalties. However, he said that he believed that lazy personnel should be dealt
with sternly to send the message that everyone was equal in the eyes of management. Also, that he
would want to promote a team spirit of unity and harmony among employees, which would give rise to a
spirit of mutual trust and belongingness among team members and eventually minimize need for using
penalties. He told all present that the interests of the organization should take priority over the interests of
any one individual employee.
a) Identify and briefly explain any four principles of management given by Fayol, which Rajat highlighted
in his address to the employees.
5) The sales manager assigned a target of selling 40 RO Water Purifiers in a month to a group of 10 sales (3)
executives. They mutually decided to sell 4 purifiers each. However, after selling 1 purifier, Kshitij (one of the sales
executives) met with an accident. The other sales executives did not pay any attention to the remaining target of
Kshitij and concentrated on their individual sales target. At the end of the month, only 37 purifiers could be sold.
Identify the principle of management violated in the given case?
6) According to Taylor, there are various ways of doing the job. To determine the best way there are several (3)
parameters. Right from procurement of raw materials till the final product is delivered to the customer every activity
is part of it. For designing a car, the assembly line production would entail deciding the sequence of operations,
place for men, machines and raw materials, etc. All this is part of this technique of scientific management. Ford
Motor Company used this concept very successfully. Even now auto companies are using it. Taylor also
demonstrated that productivity increased to about four times by following another technique. On close examination
of body movements, He used stopwatches and various symbols and colors to identify different movements.
Through this technique, Taylor was able to design suitable equipment and tools to educate workers on their use.
Identify and explain the two techniques of scientific management highlighted above.
7) Factory system of production implies that managers serve as a link between the owners and the workers. Since as
managers they had the mandate to 'get work done' from the workers, these always exist the possibility of a kind of
class-conflict, the managers versus workers. Taylor recognized that this conflict helped none, the workers, the
managers or the factory owners. Both should realize that each one is important. In such a situation even trade
unions will not think of going on strike, etc. According to Taylor, Scientific management has for foundation the firm
conviction that the true interests of the two are one and the same, that prosperity of the business cannot exist for a
long time unless it is such a situation. In Japanese companies, paternalistic style of management is in practice.
There is complete openness between the management and workers. If at all workers go to strike, they wear a
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 black badge but work more than normal working hours to gain the sympathy of the management.
A) Identify and explain the principle of scientific management highlighted in the above paragraph.
B) To achieve a state like that of Japanese work culture, Taylor called for called an important concept.
Identify and explain that concept.
8) Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop
'Aroma Coffee Can' in a famous mall in New Delhi. The specialty of the coffee shop was the special aroma of
coffee and wide variety of flavors to choose from. Somehow, the business was neither profitable nor popular.
Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a manager to
find out the cause for the same. Sandhya took feedback from the clients and found out that they loved the special
unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She
analyzed and found out that there were many unnecessary obstructions in between which could be eliminated.
She fixed a standard time for processing the order. She also realized that these were some flavors when demand
was not enough. So, she also decides to stop the sale of such flavors. As a result, with in a short period Sandhya
was able to attract the customers.
Identify and explain any two techniques of scientific management used by Sandhya to solve the problem.
9) The principle of 'equity today does not apply to wages alone. Value to the customer, care for the environment,
dealings with business associates would all come under the purview of this principle. Today, we find that Public
Sector Undertakings (PSUs) have developed entire townships as, for example, BHEL has developed Ranipur in
Hardwar (Uttaranchal).
Similarly, Shri Mahila Griha Udyog Lijjat Papad is famous for its quality Papad throughout the world. The
organization which started with a modest loan of Rs. 80 now has a turnover of over Rs. 301 crores. Its exports
exceed Rs. 10 crores. The company has at least 61 branches. The company is synthesis of three core value (or
concepts), namely the concept of business, the concept of family and the concept of devotion. All its dealings are
carried out on a sound and pragmatic footing-production of quality goods and at reasonable prices. Besides, its
member-sisters donate collectively for good cause from time-to-time according to their capacity. All the affairs of
the institution are dealt with in a manner similar to that of a family carrying out its own daily household chores. For
the member-sisters’ employees and well-wishers, the institution is never merely a place to earn one's livelihood-it
is a place of worship to devote one's energy not for his or her own benefits but for the benefit of all. In this
institution worship. The institution is open to everybody who has faith in its basic concepts.
(a) To what aspect of the significance of principles of management would you attribute the endeavors of BHEL and
Shri Mahila Griha Lijjat Papad?
(b) Explain any four other points of significance of principles of management.
10) Principles of management equip the managers to foresee the cause-and-effect relationships of their decisions and
actions. As such the wastages associated with a trial-and-error approach can be overcome. Principles of
management limit the boundary of managerial discretion so that their decisions may be free from personal
prejudices and biases. For example, in deciding the annual budgets for different departments, rather than personal
preferences, managerial discretion is bounded by the principle of contribution to organizational objectives.
A) Identify and explain the administration principle of management highlighted above.
B) state the point of significance of management principles highlighted here.
BUSINESS ENVIRONMENT
1) Identify and state the importance of business environment from the following:
i) Maruti Udyog became the leader in the small car market because it was the first to recognize the need for
small cars in an environment of rising petroleum prices and a large middle-class population in India.
ii) If an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it
should act as a warning signal. On the basis of this information, the Indian firms can prepare themselves to meet
the threat by adopting such measures as improving the quality of the product, reducing cost of the production,
engaging in aggressive advertising, and so on.
iii) To engage in any type of activity, a business enterprise assembles various resources called inputs like
finance, machines, raw materials, power and water, labour, etc., from its environment including financiers,
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 government and suppliers. In return, the business enterprise supplies the environment with its outputs such as
goods and services for customers, payment of taxes to government, return on financial investment to investors
and so on.
iv) Today’s business environment is getting increasingly dynamic where changes are taking place at a fast
pace. All sizes and all types of enterprises are facing increasingly dynamic environment. In order to effectively
cope with these significant changes, managers must understand and examine the environment and develop
suitable courses of action.
v) Entry of new players in the market, which means more competition may make an enterprise think afresh
about how to deal with the situation
vi) Many studies reveal that the future of an enterprise is closely bound up with what is happening in the
environment. It really makes a difference in the performance of an enterprise.
2) Beni after completing her MBA took up a job with a multinational company named Fortio. The company was
paving good salary and perks to its employees. The wages were within the paying capacity of the company that
provided the employees a reasonable standard of living. The company also had a good work-culture and the
behavior of superiors was very good towards their subordinates. Beni was very happy in this organization but due
to long working hours she did not have time to cook her meal. She had to depend upon outside food which was
deteriorating her health.
She observed that this problem was faced by many of her colleagues not only in her company but also in many
other companies. This was because of increase in the number of working women and non-availability of hygienic
home-cooked food. She identified this as a great opportunity and decided to give up her job to supply packaged
home-cooked food to office goers at a reasonable price. At the end of the day, she was also distributing the
leftover food in the nearby night-shelters.
A) State the dimension of Business Environment being discussed above.
3) With rapid advancements in the field of replacing manual work with machines, a Robot named ‘Sujan’ has been
invented and developed and is likely to get the citizenship of the country of its origin. It has led to a stage where
machines are being used in place of human beings. ‘Sujan’ is doing all types of work whether routine or hazardous
and even answering the queries of people. However, this issue has to be carefully looked into keeping in mind the
consumer attitude towards product innovations, problem of unemployment and its impact on the quality of life.
Through the orders and decisions of various commissions and agencies at Centre, State or local level the Indian
Government is playing a very significant role in balancing the use of human and machine power. Various
dimensions of business environment are being discussed in the above para.
By quoting the lines from the above identify and explain any three dimensions.
4) It is heartening that the implementation of compliance requirements of the Companies Act, 2013 has progressed
substantially with NIFTY 500 companies. Data shows a significant increase in women’s participation in the top
management of Indian Companies from 5% few years ago to 13% now. Even companies which are not in NIFTY
500 have undertaken drives to increase women’s participation across different areas of work. The government had
also announced that it would support such companies. Identify and explain the dimensions of business
environment discussed above which brought about the change.
5) Prime minister Mr. Narender Modi launched a Campaign of Swachh Bharat' and invited various celebrities to be a
part of this Abhiyaan. This spread awareness among the people in society and in general, people started
becoming more careful and aware about the cleanliness around their area. To continue its impact, a new service
tax for Swachh Bharat was also started. The government is planning to import new and better technology to adopt
new methods of treating the garbage and waste. Explain the various dimensions of business environment
mentioned in the above para quoting the lines from the above para.
6) Disco Ltd. manufactures fashionable and designer clothes. Recently it finds that the demand for its products has
been declining. After market research it was discovered that fashion and tastes of the consumers is changing at a
fast pace. Customers’ demand is increasing. New competitors have entered the market with new designs. It is
very difficult for the company to predict future happenings. Also, it is difficult to know the extent of the relative
impact of the social, economic, political, technological or legal factors on decrease in demand of its products in the
market.
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 A meeting was held in which managers from different functional levels heading Production, Marketing, Finance,
etc., for example, Chief Operating Officer, Chief Finance Officer, Vice President (Marketing) were present to
discuss how to deal with the situation. After a long discussion, it was decided that they would study and analyze
the market first to identify customer tastes and fashion and then manufacture garments accordingly. It was also
decided to increase expenditure on advertising, after-sales services, etc.
a) Identify any two features of business environment by quoting the lines from the above case.
b) Identify any two impact of government policy changes on business, quoting lines from the above case.
c) State the importance of understanding of environment by business managers in the light of the above
para.
PLANNING
1) Having transformed 2500 Kirana stores across eight cities in to virtual super markets, the startup Quick Bizz
further decided in advance, to collaborate with 15000-20,000 store owners in top 30 cities of the country by the
end of this year. The company has set its eye on digitizing over 1,00,000 Kirana stores over next 18-24 months.
a) Identify and explain the step in the process of one of the functions of management discussed above.
b) Also explain the last step to be performed by Quick Bizz as part of the process.
2) Saurabh Jain set up a telecom business in Nasik “Ketone' with an ambitious target of reaching out to 90% of the
Indian population within one year. He chose this business on the belief that the demand for data services will
increase 4 times within the next 2-3 years. To fulfill such an ambitious target, he had to either acquire an existing
telecom business or collaborate or go independent aggressively in the light of tough competition. He assessed the
proposals of different companies’ vis-a-vis earnings per share, taxes, dividends paid etc. and their future
projections knowing fully well that the projections may change if the country's economic policies get modified.
The above paragraph discusses some of the steps of one of the functions of management. By quoting the lines
from the above paragraph, explain these steps in chronological order.
3) Rahul decided to start a desert cooler manufacturing business. He sets the target of earning 20% profit on sales in
the first year. He was very much concerned about the future prospects of the business, which were uncertain. For
this, he gathered information from the potential market and analysed that the demand for wall-mounted coolers is
increasing day by day. He used this information as the base for future planning. On the basis of the gathered
information, he called a meeting in the following week to find new methods to achieve the objective.
A) Identify the function of management involved in the above case.
B) Enumerate the next two steps, which have been followed by Rahul that are related to the process of one
of the functions of management.
4) Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In
2015 for the first-time company’s number one position in the industry has been threatened because other
companies started selling rice on credit also. But the managers of Super Fine Rice Ltd. continued to rely on its
previously tried and tested successful plans which didn’t work because the environment is not static. This led to
decline in sales of Super Fine Rice Ltd. The above situation is indicating two limitations of planning which led to
decline in its sales. Identify these limitations.
5) In 2015, Naveen left his luxurious life in Mumbai, where he worked as a manager for Blue Birds Ltd. He shifted to
Begampur, Chhattisgarh to fulfill his grandmother's dream of converting their 25-acre ancestral land into a fertile
farm. For this, he set out specific goals along with the activities to be performed to achieve the goals.
Every activity was a challenge since he was clueless about farming. He learned every activity from filling the land
to sowing the seeds. To aid farmers he launched his own company 'Innovative Agriculture Solutions Pvt. Ltd.’
It was difficult initially as no one trusted an urban youth telling farmers about farming. But when everything was
discussed in detail the farmers started taking an interest. He wanted to ensure that future events meet effectively
the best interests of the company. Through sales forecasting, he prepared an annual plan for production and
sales.
He also found that the farmers grew the only paddy, which was an activity of 3 - 4 months and land remained idle
for the rest 8-9 months of the year. He not only identified but evaluated various alternatives through which the
farms could be utilized for the remaining months of the year. Through correct foresight and logical and systematic
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 thinking based on analysis of all facts, all alternative was examined and evaluated. He promoted a plan to the
farmers, where after harvesting paddy, vegetables could be grown.
The above case highlights the features of one of the functions of management. By quoting lines from the above
identify and explain these features.
6) An Auto Company, Win ltd is facing a problem of declining market share due to increased competition from other
new and existing players in the market. Its competitors are introducing lower priced models for mass consumers
who are price sensitive. The Board of Directors of the Company announced a meeting to discuss the decisions
regarding pricing and launching a new range of models, in order to increase the market share of the company.
Attending the meeting was not a discretion for the directors and a penalty was announced for not attending the
meeting. The following decisions were taken in the meeting:
a) to define the desired future position of the company, as acquiring a dominant position in the market by
increasing the market share to 10 in 1 year.
b) to change the criteria for choosing vendors for procuring supplies,
c) to invest in development of the human resources of the organization by providing training to higher levels
by holding seminars and providing on the job training for the supervisory management.
What are standing plans and single use plans? Briefly explain the plans discussed above, which can be classified
as standing plans, by quoting the lines.
7) Two years ago, Madhu completed her degree in food technology. She worked for some time in a company
manufacturing chutney, pickles and murabbas. She was not happy in the company and decided to have her own
organic food processing unit for the same. She set the objectives and the targets and formulated action plan to
achieve the same.
One of her objectives was to earn 10% profit on the amount invested in the first year. It was decided that raw
materials like fruits, vegetables, spices etc. will be purchased on three months credit from farmers cultivating
organic crops only. She also decided to follow the steps required for marketing of the products through her own
outlets. She appointed Mohan as a Production Manager who decides the exact manner in which the production
activities are to be carried out. Mohan also prepared a statement showing the number of workers that will be
required in the factory throughout the year. Madhu informed Mohan about her sales target for different products,
area wise for the forthcoming quarter. While working on the production table a penalty of Rs 100 per day for not
wearing the caps, gloves and apron was announced.
Quoting lines from the above pare identify and explain the different types of plans discussed.
8) Laxmi Chemicals Ltd., a soap manufacturing company, wanted to increase its market share from 30% to 55% in
the long run. A recent report submitted by the Research & Development Department of the company had predicted
a growing trend of herbal and organic products. On the basis of this report the company decided to diversify into
new variety of soaps with natural ingredients having benefits and fragrances of Jasmine, Rose, Lavender, Mogra,
Lemon Grass, Green Apple, Strawberry etc. The Unique Selling Proposition (USP) was to promote ecofriendly
living in the contemporary life style. The company decided to allocate Rs. 30 crores to achieve the objective.
Identify the type of one of the functions of management mentioned above which will help the company to acquire
dominant position in the market.
9) Vardan Patel started the business of preparation and supplying sweets through home delivery at a production cum
show-room 'Express Sweets' at Ahmedabad. He made a plan forecasting the sales of different types of sweets in
various localities of Ahmedabad for each month of year to earn a profit of 20% on Capital employed.
He sets a sales target of Rs. 20,00,000 in the current year with a10% increase every year.
He then set the criteria for selecting suppliers from whom he would make purchases of raw material. The planning
paid off and the business was able to achieve its targets.
a) Identify any two types of plans by quoting the lines from the above.
b) Also give the meaning of types of plans identified in part (a) above.
10) In Chak De movie, Shahrukh Khan becomes the coach of the girl's hockey team. He knows that he has to prepare
the girls for the international hockey matches and win the cup. For this, he prepares a long-term plan and thinks of
ways of how to beat the opponent team. He coaches the girls to play in different ways like defensive, offensive etc.
At the outset of the match, he explains who will open the match and how the ball will be passed by one player to
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 another step by step. Identify any three types of plans that are highlighted in the above case, quoting the lines
from it.
ORGANISING
1) Rish, Ashu and Ravi have decided to start a business of manufacturing toys. They identified the following main
activities which they have to perform (i) purchase of raw materials (ii) purchases of machinery (iii) production of
toys (iv) Arrangement of finance (v) sale of toys (vi) identifying the areas where they can sell their toys (vii)
selection of employees.
In order to facilitate the work, they thought that four managers should be appointed to look after:
(a) production, (b) finance, (c) marketing, (d) personnel

A) Identify the function of management involved in the above-mentioned para.

B) Quate the lines from the above para which help you in identifying this function.
C) State the steps followed in the process of this function of management.
2) Ramdas, aged 49 is working in an aviation company. He is the senior most employee in his division. He is even
senior to the division manager, Kanaputti. Ramdas is considered one of the most committed, capable and hard-
working employees. As a result of his abilities and seniority, he generally received the work assignments of his
choice. Although there was no formal designation of various ‘special’ projects assigned to Ramdas, he handled
them as a matter of routine. A problem developed when an able and intelligent person Nagarjuna, aged 33, was
appointed by Kanaputti. Nagarjun’s previous three years’ experience in the closely related work, made it possible
for him to catch on to the routine work of his new job more rapidly than was customary for a new employee. On
several occasions, Kanaputti noticed the tension developing between the two employees. However, he didn’t want
to get involved in their personal issues as long as the work was completed effectively and efficiently by them. One
day, the tension between them reached the boiling point and Ramdas complained to Kanaputti stating that his
duties were being largely taken over by Nagarjun. Kanaputti issued the order stating the clear allocation of the jobs
and related duties between the two. He further clarified the working relationship between them by specifying who
was to report to whom. This helped in reducing the workload, enhancing productivity and removing ambiguity.
i) Identify and state the step of organizing process which has not been carried out properly and contributed
to this problem.
ii) State the two steps of the organizing process which have been taken by Kanaputti to respond to the
complaint of Ramdas.
iii) Also state two points of importance of organizing as reflected in the above case.
3) A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a
functional organizational structure with separate departments for Production, Marketing, Finance, Human
Resources and Research and Development.
Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into
manufacture of new range of electronic toys for which a new market is emerging.
a) Identify the type of the organizational structure the company should adopt with diversification. Give
reasons in support of your answer.
b) State any four benefits the company will derive from the organizational structure identified in the para (a).
4) Aradhana and Gandharv are heads of two different departments in Yumco Ltd. They are efficient managers and
are able to motivate the employees of their respective departments to improve performance. However, their drive
to excel in their own sphere of activity instead of giving emphasis on objectives of the enterprise has hindered the
interaction between the departments that Aradhana and Gandharv are heading. Often there are inter-departmental
conflicts and they have become incompatible. This has proved to be harmful in the fulfilment of the organizational
objectives. The situation has deteriorated to such an extent that the CEO of Yumco Ltd. has hired a consultant
Rashmi to resolve the problem. After studying the situation closely Rashmi found that the problem has arisen due
to inflexibility and a narrow perspective on the part of both Aradhana and Gandharv. She is of the view that this
situation is a result of the type of organizational structure Yumco Ltd. has adopted.
From the above information identify the organizational structure adopted by Yumco Ltd. and state any three
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 advantages of the structure so identified.
5) A company has its registered office in Delhi manufacturing unit at Gurgaon and marketing and sales department at
Faridabad. The company manufactures the consumer products. Which type of organizational structure should it
adopt to achieve its target? Why?
6) A Steel Manufacturing Company has the following main jobs: (i) Manufacturing (ii) Finance (iii) Marketing (iv)
Personnel; and (v) Research and Development.
a) Which type of organizational structure will you choose for this type of a company and why?
b) State any five advantages of this organizational structure.
7) A.V.M Ltd set up its electric appliances manufacturing factory in a backward are of Himachal Pradesh where
subsidies are provided by the government and labour is available at cheaper rates. A.V.M Ltd was able to produce
its products at low cost there by generating enough profit in the first year itself it was because of the fact that the
limits of authority and responsibility of the employee were clearly defined and the activities of various departments
were coordinated and integrated the production manager of the company also came to know about the availability
of raw material at cheaper rates from a vendor for this he wrote a letter to the managing director of the company
for getting sanction but because of procedural delays in getting this sanction and procuring funds form the finance
manager the order could not be placed.
A) Identify the type of organization that led to procedural delays and because of which the company could not
get the advantage of procuring raw material at cheaper rates.
B) State any three advantages of the type of organization identified in (a) above other than those discussed
in the above case.
8) ‘Steelo Ltd’ decided to set up its steel manufacturing factory in the backward area of Odisha where very less job
opportunities were available people of that area welcomed this effort of Steelo Ltd to attract people to work in its
factory it also decided to provided many other facilities like school hospital market etc. in the factory premises
Steelo Ltd started earning huge profits another competing company asked its production manager Aslam found
that in both the companies there was systematic co-ordination among the various to whom the only difference was
that in his organization communication took place only through the scalar chain were Steelo Ltd was allowing flow
of communication in all the direction as per the requirement which lead to faster spread of information as well as
quick feedback.
A) Identify and state the type of organization which permits Steelo Ltd the flow of communication in all the
directions.
B) State other advantages of the type of organization identified in (a) above.
9) A company manufacturing sewing machines set up on 1945 by the British promoters follows formal organization
culture in totality. It is facing a lot of problems in delays in decision making. As the result it is not able to adapt to
changing business. environment. The work force is also not motivated since they cannot vent their grievances
except through formal channels, which involves red tape. Employee turnover is high. Its market share is also
declining due to changed circumstances and business environment.
You are to advise the company with regard to change it should bring about its organization structure to overcome
the problems faced by it. Give three reasons in terms of benefits it will derive from the changes suggested by you.
10) Samir Gupta started a telecommunication company, 'Donira Ltd' to manufacture economical mobile phones for the
Indian rural market with 15 employees. The company did very well in its initial years. As the product was good and
marketed well, the demand of its products went up. To increase production the company decided to recruit
additional employees. Samir Gupta, who was earlier taking all decisions for the company had to selectively
disperse the authority. He believed that subordinates are competent, capable and resourceful and can assume
responsibility for effective implementation of their decisions. This paid off and the company was not only able to
increase its production but also expanded its product range.
A) Identify the concept used by Samir Gupta through which he was able to steer his company to greater
heights.
B) Also, explain any three points of importance of this concept.
11) Aman Chadha started ‘Bulls Eyes’ a company for providing cyber security solutions to business. Its objective is to
prevent, detect and respond to cyber-attacks and protect critical data. He was a hardworking software engineer
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 and an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity
but also did his work with utmost honesty and sincerity. The business started growing day by day. He was
delighted when he was offered a big project by the Ministry of Defense. While working on the project he found that
the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team.
The company maintained a close liaison with a local engineering college. During a campus placement Ishan and
Vrinda were appointed to work for the new project. He found the new employees’ capital enthusiastic and
trustworthy. Aman Chadha was thus able to focus on objectives and with the help of Ishan and Vrinda the project
was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other
hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.
a) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in
focusing on objectives.
b) Also, state any four points of importance of the concept identified in (a) above.
12) A company X limited manufacturing cosmetics, which has enjoyed a pre-eminent position in business, has grown
in size. Its business was very good till 1991. But after that, new liberalized environment has seen entry of many
MNC’s in the sector. With the result the market share of X limited has declined. The company had followed a very
centralized business model with Directors and divisional heads making even minor decisions. Before 1991 this
business model had served the company very well as consumers had no choice. But now the company is under
pressure to reform.
What organization structure changes should the company bring about in order to retain its market share? How will
the changes suggested by you help the firm? Explain any three points.
13) Anoop Gaur started 'Cat's Eye', a company for providing cyber security solutions to businesses. Its objective to
prevent, detect, respond to cyber-attacks and protect critical data. He was a hardworking software engineer and
an expert in cyber security. His reputation grew by leaps and bounds as he was not only a person of integrity but
also did his work with almost honesty and sincerity. The business started growing day by day.
He was delighted when he was offered a big project by the Ministry of Science and Technology. While working on
the project he found that the volume of work made it impractical for him to handle all the work by himself.
Therefore, he decided to expand the team. The company maintained a close liaison with an engineering college in
the State. During a campus placement, Aarav and Pranshi were appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Anoop Gaur was thus, able to focus on the
objectives and with the help of Aarav and Pranshi, the object was completed on time. Not only this, Anoop Gaur
was also able to extend his area of operations. On the other hand, Aarav and Pranshi also got opportunities to
develop and exercise initiative.
(a) Identify and explain briefly the concept used by Anoop Gaur in the above case which helped him in focusing on
the objectives.
(b) Also, explain any four points of importance of the concept identified in part (a).
STAFFING
1) Ali Mohammad the CEO of Super Ltd believes that human resource is the most important asset of the firm. He
believes that no organization can be successful unless it can fill and keep filled the various positions provided for
in the structure with the right kind of people. Identify the function of management being discussed above and state
the benefits to the organization that its proper application in the firm will ensure.
2) Mr. Ramswaroop recently completed her Post Graduate Diploma in Human Resource Management. A large steel
manufacturing company which employs 800 persons appointed her as its human resource manager. Mr.
Ramswaroop has been given complete charge of the company's Human Resource Department.
The company has an expansion plan in hand which may require another 200 persons for various types of
additional requirements.
State any four functions Mr. Ramswaroop is supposed to perform.
3) Ms. Jayshree recently completed her Post Graduate Diploma in Human Resource Management. A large steel
manufacturing company which employs800 persons appointed her as its human resource manager. Ms. Jayshree
has been given complete charge of the company's Human Resource Department.
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 The company has an expansion plan in hand which may require another 200 persons for various types of
additional requirements.
A) Identify the step of one of the functions of management involved in the above case.
B) Identify and state the concept which will help in deciding the number of persons required.
C) Identify the next two steps in the function of management identified in part (a) to fulfil the additional
requirements of 200 persons.
4) Aakanksha, Nikita and Parishma are the owners of a handicraft unit in the urban area of Dibrugarh in Assam,
which is involved in the manufacturing and marketing of Sital Pati, traditional mats and Jappi (the traditional
headgear). They decided to shift this manufacturing unit to a rural area with an objective of reducing the cost and
providing job opportunities to the locals.
They followed the functional structure in this organization with a view to increasing managerial and operational
efficiency' They assessed and analyzed the type and number of employees required, keeping in mind that they
had to encourage the women, and the people with special needs belonging to the rural area. State the next three
steps that they will have to undertake, for obtaining satisfied workforce for their handicraft unit.
5) Alpha Enterprises is a company manufacturing water geyser. The company has a functional structure with main
four functions- Production, Marketing, Finance and Human Resource. As the demand for the product grew, the
company decided to hire more employees. Identify the concept which will help the Human Resource Manager in
deciding the actual number of persons required in each department.
6) Bhagwati Enterprises is a company engaged in the marketing of air-conditioners of a famous brand. The company
has a functional structure with the four main functions-Purchase, Sales, finance and Staffing. As the demand for
the product grew, the company decided to recruit more employees. Identify the concept which will help the Human
resource Manager to find out the number and type of personnel available so that he could decide and recruit the
required number of persons for each department.
7) A company X Ltd. is setting up a new plant in India for manufacturing auto components. India has a highly
competitive and cost-effective production base in this sector. Many reputed car manufacturers source their auto
components from here.
X Ltd. is planning to capture about 40% of the market share in India and also export to the tune of at least $ 5
million in about 2 years of its planned operations. To achieve these targets, it requires a highly trained and
motivated workforce.
You have been retained by the company to advise it in this matter. Suggest the company about the three main
aspects of staffing function.
8) Zenith Ltd. is a highly reputed company and many people wanted to join this company. The employees of this
organization are very happy and they discussed how they came in contact with this organization.
Aman said that he was introduced by the present Sales manager, Mr. John.
Benu said that he had applied through the newspaper and was appointed as H.R. Manager.
Vaibhav said that he was neither related to any of the employee of the organization nor there was any
advertisement in the newspaper even them he was directly called from IIM Ahmedabad from where he was about
to complete his MBA.
A) The above discussion is indicating an important function of management. Name the function of management
B) The management function identified in part (a) follows particular process. Explain the step of this process which
is being discussed in the above para.
C) Identify the sources of the step identified in part (b) quoting the lines form the para.
9) There were two vacancies for the post of Assistant Manager in 'Gyan Electrics Private Ltd'. 'Parth' the Human
Resources Manager identified one suitable candidate 'Vishwas' from within the organization and promoted him to
the post of Assistant Manager. For another post, the Manager 'Parth' took help o a placement agency and selected
'Saleem's performance though 'Vishwas' was less qualified than 'Saleem'. Hence, 'Parth' decided that in future he
will not make any appointment with the help of an outside source. Explain any four reasons on the basis of which
'Parth' would have taken the above decision.
10) Nishant, the director of a garments company, is planning to manufacture bags for the utilization of waste material
from one of his garment units. He has decided that this manufacturing unit will be set up in a rural area of Odisha
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 where people have very few job opportunities and labour is available at very low rates. He has also thought of
giving equal opportunities to men and women. For this he wants four different heads for Sales, Accounts,
Purchase and Production. He gives an advertisement and shortlist ten candidates per post after conducting
different selection lists.
(i) Identify and state three next steps for choosing the best candidate out of the candidates short listed.
11) 'Moga Industries Ltd.' approached a well-established university in the city of Madurai to recruit qualified personnel
for various technical and professional jobs. They selected Tanya, Ritu, Garima and Chetan for various vacancies
in the organization.
After the selection and placement, 'Moga Industries Ltd.' felt the need to increase the skills and abilities, and the
development of positive attitude of the employees to perform their specific jobs better. The company also realized
that learning new skills would improve the job performance of the employees. Hence, the company decided to take
action for the same.
(a) Name the step of the staffing process regarding which the company decided to take action.
(b) State the benefits of the action to 'Moga Industries Ltd.'
12) After passing his secondary school examination, David left the school at the age of 15 years and started getting
training his father. His father, a renowned electrician, had worked for many companies. He everyday started
accompanying his father on work quickly. Now his father started passing on the tricks of the trade to David. With
the passage of time David acquired a high-level skill and became a well-known electrician at Indore. Big business-
houses started calling him for electrical-wiring.
A) Name the method of training discussed in the above para.
B) State any three benefits which David could get on being trained.
DIRECTING
1) Identify and explain the following elements of directing function of management:
a. Mr. Pramod Aggarwal, a manager explains a worker about operations to be carried out by him on a hi-tech
machine.
b. Mr. Rajinder Tyagi, a mining engineer explains about safety precautions to be followed while working in a
coal mine.
c. Mr Anil Sarraf, a managing director declares share in the profits to the managers for their contribution to
enhance profits of the company.
d. Mr. Rajiv Asopa, a manager inspires his employees by playing a lead role in performing a work.
2) M/s Beta Ltd. deals in consumer goods. It employees 100 workers and 0 operative managers who give guidance
and support to the workers while operating the machinery. The company has a policy of granting leave as per the
requirement of the workers. Workers are generally granted leave on festivals and special occasions. Recently on
Puja festival, it received a big order. Workers are keen to take Puja holidays while management is pressing hard
for overtime. This matter was placed before the Personnel Manager who called the meeting of operative managers
and workers to inform them about the changes in the incentive plan which states payment of double wages for
working overtime and triple wages for working on holidays. Workers without any pressure voluntarily took limited
holidays and were able to increase their earning by working overtime and on holidays.
During Board of Directors meeting, Personnel Manager was asked to update the management for achieving higher
output, meeting timely supplies without any confrontation with workers. Personnel Manager replied, "I just used a
carrot with no sticks approach". By quoting the lines from above paragraph state any two elements of directing.
3) Rahim was working in an enterprise on daily wages basis. It was difficult for him to fulfil the basic needs of his
family. His daughter fell ill. He had no money for his daughter's treatment. To meet the expenses of her treatment,
he participated in a cycle race and won the prize money. The cycle company offered him a permanent pensionable
job which he happily accepted.
(i) By quoting the lines from the above para identify the needs of Rahim that are satisfied by the offer of cycle
company.
(ii) Also, explain two other needs of Rahim followed by above that are still to be satisfied.
4) Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm manufacturing cosmetic, which is facing a
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 problem of high employee turnover. The CEO of the company has invited suggestions from her for retaining the
talented employees & reducing the employee turnover. Mrs. Rajlaxmi recommends that the good employees be
rewarded in a way that it creates a feeling of ownership among the employees and at the same time makes them
contribute towards the growth of the organization.
(a) Identify the incentive and explain its type, which has been suggested by Mrs. Rajlaxmi to the CEO of the
company.
(b) Also explain any two other incentives of the same type.
5) Charu is working in a company on a permanent basic. As per the job agreement she had to work for 8 hours a day
and was free to work overtime. Charu worked overtime, due to which she fell ill had to take leave from the work.
No one showed concern and enquired about her health. She realized that she was fulfilling only some of her needs
while some other needs still remained to be fulfilled.
(i) By quoting the lines from the above, para, identify the needs of Charu which she is able to fulfil.
(ii) Also explain two other needs of Charu followed by the above needs, which still remained to be satisfied.
6) Umang Gupta is the Managing Director of Denver Ltd. The company had established a good name for itself and
had been doing well. It was known for timely completion of orders. The Production Manager, Ms. Kanta was
efficiently handling the processing of orders and had a team of fourteen motivated employees working under her.
Everything was going on well. Unfortunately, she met with an accident. Umang knew that in the absence of Ms.
Kanta, the company may not be able to meet the deadlines. He also knew that not meeting the deadliness may
lead to customer dissatisfaction with the risk of loss of business and goodwill. So, he had a meeting with his
employees in which accurate and speedy processing of orders was planned. Everybody agreed to work as team
because the behavior of Umang Gupta was positive towards the employees of the organization. Hence everyone
put in extra time and efforts and the targets were met on time. Not only this, Umang visited Ms. Kanta and advised
her to take sufficient rest.
(a) Identify and explain the leadership style of Umang Gupta with a diagram.
7) Mr. Umang, production manager of creative concepts discusses with his staff about the new export order. All the
staff member unanimously agree that they all will work together to do overtime to complete the order and meet the
deadline. State the 'Leadership Style' being followed by Umang.
8) Dhruv is working as a supervisor with 'Neer Purifier Ltd'. Which is producing water purifiers. The target of the
company is to produce 200 water purifiers every day. His job is to make sure that work goes on smoothly obeyed.
He believes that reward or punishment both can be given depending upon the performance. Identify the leadership
style being adopted by Dhruv.
9) Gopal, a manager in a company, sets the targets for his subordinates without discussing it with them. He firmly
tells them that if the task is not completed within time, strict action will be taken against the defaulter. Which form
of leadership is he following?
10) Mr. Neelesh is working as a Production Manager in Vohra Ltd. His subordinates are mostly engineers and
qualified technicians. As a manager, he is very strict, does not listen to any suggestions or feedbacks given by his
subordinates. He expects them to follow his instructions without any questions and does not allow them to give
suggestions.
a) What leadership style does the manager follow? Explain.
b) Is such a leadership style beneficial for the company? Explain.
11) Neeraj, a sales representative of ‘Omida Ltd.’ has changed seven jobs in the last one year. He is a hard-working
person but is not able to finalize deals with the customers due to his inadequate vocabulary and omission of
needed words. Sometimes he uses wrong words because of which intended meaning is not conveyed. All this
created a mis-understanding between him and his clients.
A) Identify the communication barrier discussed above.
B) State the category of this communication barrier.
C) Explain any other communication barrier of the same category.
12) Arun is working in a multinational company in Gurgaon. He was running temperature for the last many days. When
his blood was tested, he was found positive for dengue with a very low platelet count. Therefore, he was admitted

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 in the hospital and a blood transfusion was advised by the doctors. One of his colleagues sent a text message
about it to his immediate superior Mr. Narain. Mr. Narain' in turn sent a text message to the employees of the
organization requesting them to donate blood for Arun. When the General Manager came to know about it, he
ordered for fumigation in the company premises and cleanliness of the surroundings.
(a) From the above para quote lines that indicate formal and informal communication.
(b) State any two features of informal communication.
13) Lakhan, an expert in the area of Financial Management, sent an e-mail to his subordinate Thomas about a new
project for a client in France. Though, the mail was in English, a language known to Thomas, he was not able to
understand the actual meaning of many words used in the mail. He was also not a specialist in the field of
Financial Management. Not only this, some portions of the mail were translated from French to English in such a
manner that many mistakes crept in, causing different meaning to the message
(a) Identify two specific barriers to communication in Lakhan’s e-mail.
(b) State any two measures which can be taken by Lakhan to overcome the barriers identified in part (a) above to
improve in future the effectiveness of his communication.
14) Ankur is working as a production manager is an organization. His subordinates Saurabh discussed with him, a
method of production which will reduce the cost of production, but due to some domestic problems Ankur's mind
was preoccupied and he is not in a position to understand the message. Saurabh get disappointed by this. Identify
the factor which acts as a communication barrier.
15) 1Rakesh is working under his superior Neeraj. He always communicates useful ideas and suggestions to his
superior regarding reduction of cost, improvement in the product, etc. Neeraj found that implementation of his
suggestions has always given favorable results, but he never appreciated Rakesh for his suggestions. Now
Rakesh decided not to communicate any suggestion or idea to Neeraj. Identify the factor which acts as a
communication barrier.
16) PM Ltd. Is manufacturing breads and biscuits for many years. It has approximately. 150 employees and most of
them are not happy with the working environment. Because of this the labour turnover rate is very high. Therefore,
the company appoints a new Human Resource Manager, Naveen, to analyze the situation. Naveen finds that there
is no free flow of communication, and there is no suggestion box for the employees to voice their suggestions or
grievances. The company reply organizes a social or cultural gathering. the employees just come, finish their and
leave the organization.
A) Identify the communication barriers discussed above.
B) State the category of this communication barrier.
17) Mr. Sandeep is the marketing manager of a company manufacturing designer clothes. One day, in the morning
while leaving home he had a quarrel with a person in his neighborhood on some issue. That person was a criminal
who could abuse his family members. Mr. Sandeep, on that day, was very worried and angry too on the behavior
of the neighborhood person. On that day, a meeting was held by a team of marketing and design exports to
ensure that whatever was produced was according to market demand and tastes and fashion of the customers.
But Mr. Sandeep could not pay attention to the discussion between them.
Identify the type of barriers to communication mentioned in the above para. Justify your answer.
CONTROLLING
1) Rajeev and Sanjeev are managers in the same organization heading different units. While discussing about the
functions of management, Rajeev says that, ‘Planning is looking ahead whereas controlling is looking back.’ But
Sanjeev says, ’You are wrong because planning is looking back whereas controlling is looking ahead.’ Both are
giving reasons in favour of their statements. Explain the possible reasons given by both and justify who is correct.
2) 'A.S. Ltd.' is a large company engaged in assembly of air-conditioners. Recently the company had conducted the
'Time' and 'Motion' study and concluded that on an average a worker can assemble ten air-conditioners in a day.
The target volume of the company in a day is assembling of 1,000 units of air-conditioners. The company is
providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then
the assembly of air-conditioners per day is 800 units only. To find out the reason the company compared actual
performance of each worker and observed through C.C.T.V. that some of the workers were busy in gossiping.
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 (a) Identify the function of Management discussed above.
(b) State those steps in the process of the function identified which are discussed in the above paragraph.
3) Babita Ltd. Is engaged in manufacturing machine components. The target production is 250 units per day per
worker. The company had been successfully attaining this target until two months ago. Over the last two months it
has been observed that daily production varies between 200-210 units per worker.
(a) Name the function of management and identify the step in the process of this function which helped in finding
out that the actual production of a worker is less than the set target.
(b) To complete the process of the function identified in (a) and to ensure the performance as per set targets
explain what further steps a manager has to take.
4) Textile manufacturer Super textiles reported 43% fall in its profits in the fourth quarter ended 31 March 2019,
which is beyond the acceptable range 25% decided by the company. This was due to higher fuel cost and lower
yield on account of demonetization. The company aims to implement cost saving measures by restructuring
contracts and its business processes to meet its targets in the future.
A. Name the function of management discussed above.
B. Also identify and explain the steps of the function of management discussed above.
5) Rudharkshi Ltd. Is engaged in manufacturing high and luxury pens. The target production is 700 units daily. The
company had been successfully attaining this target unit three months ago. Over the last few month, it has been
observed that daily productions varies between 600-650 units.
(i) Identify the function of management, which has been highlighted in the above context.
(ii) Discuss the first four steps involved in the process of the function identified above

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