Business Studies Part I
Business Studies Part II

Solution of Question Paper

1 Mark Question Solutions

Q1 Hina Sweets is a renowned name for quality sweets since 1935. Harsh the owner of Hina Sweets was worried as the sales had declined during the last three months. When he enquired from the Sales Manager, the Sales Manager reported that there were some complaints about the quality of sweets. Therefore Harsh ordered for sample checking of sweets.
Identify the step taken by Harsh that is related to one of the functions of management.

Answer: Measurement of actual performance is the step in controlling process being described.

Q2 Planning is looking ahead and controlling is looking back comment.

Answer: Planning and controlling are inseparable Planning is the primary function of every organisation it is the thinking process. which means looking ahead or making plans that how desired goal IS achieved in future thus It is called a formed look’”g function on the other hand controlling IS a systematic function which measures the actual performance with the planned performance. It compared and analysed the whole process of an organisation and take correcting actions. Thus, it is a backward looking function but the statement “Planning is looking ahead and controlling is looking back” IS partially correct because it should be understood that planning is glided by past experiences and the corrective action initiated by control function which alms to Improve future performance Thus. planning and controlling are both backward looking as well as a forward looking functions.

Q3 An effort to control everything may end up in controlling nothing’. Explain.

Answer: It’s a well known fact that “Jack of all master of none when we start controlling everything It results In control mq nothing because It is not possible at one time to control various activities as this process may neither be economical nor easy Control thus focus on KRAs (Key Result Areas). It means Instead of controlling all activities, control where the critical points goes wrong and by which organisation suffers Thus, KRAs are set as critical points and one should be aware that he has to control what.

Q4 Management Information System MIS IS a computer based Information system that provides information and support for effective managerial decision-making A decision maker requires up-to-date accurate and timely information. MIS provides the required information to the managers by systematically processing a massive data generated In an organisation Thus, MIS IS an important communication tool for managers.

Q5 If anything goes wrong with the performance of key activities, the entire organisation suffers. Therefore, the organisation should focus on them.’ Explain the statement

Answer: The given statement refers to the importance of ‘Critical Point Control’ in order to ensure effective performance of key activities in an organisation.
Critical Point Control: It may not be either economical nor easy to monitor each and every activity in the organisation. 

5 Marks Questions Solutions

Q6 A company was manufacturing LED bulbs which were in great demand. It was found that the target of producing 300 bulbs a day was not met by the employees. On analysis, it was found that the workers were not at fault. Due to electricity failure and shortage of workers, the company was not able to achieve the set targets and alternative arrangements were needed.
To meet the increased demand, the company assessed that approximately 88 additional workers were required out of which 8 would work as heads of different departments and 10 would work as subordinates under each head. The required qualifications and job specifications were also enlisted. It was also decided that necessary relaxations should be given to encourage women, people from backward and rural areas and people with special abilities to assume responsible positions in the organisations. All efforts were made to match the ability of the applicants with the nature of work.

  1. Identify the functions of management discussed above.
  2. State the two steps in the process of each function discussed in the above paragraph.
  3. List any two values which the company wants to communicate to the society.

Answer:

  1. The functions of management discussed above are Staffing and Controlling.
  2. The two steps involved in staffing function are as follows:
  • Estimating manpower requirements: The manpower requirements of an organisation are estimated through workload analysis and workforce analysis. The workload analysis helps to determine the number and type of human resource required in the organisation to meet its present and future needs. Whereas workforce analysis seeks to determine the number and type of human resource available within the organisation.
  • Recruitment: The process of recruitment involves searching for the prospective candidates and stimulating them to apply for jobs in the organisation. There are two sources of recruitment namely, internal and external.
    The two steps involved in controlling function are as follows:
  • Comparing actual performance with standards to identify deviations if any.
    “It was found that the target of producing 300 bulbs a day was not met by the employees.”
  • Analysing deviations through critical point control and management by exception approach to identify the causes for their occurrence.
    “On analysis, it was found that the workers were not at fault. Due to electricity failure and shortage of workers, the company was not able to achieve the set targets and alternative arrangements were needed.”
  • Taking corrective action, if required “To meet the increased demand, the company assessed that approximately … as subordinate under each head.”
  1. The two values that the company wants to communicate to the society are:
  • Women empowerment
  • Kindness.

Q7 Raghav started a take away eating joint in a nearby market. His business was doing well. He ensured that the food was properly cooked, a standard taste was maintained, packing of food was done effectively and the orders were executed on time. But unfortunately he met with an accident and was advised three months bed rest. In his absence, his cousin Rohit took charge of his business. When he resumed his work after three months, he realised that his clientele had dropped. The people were not happy with the services as the quality of food had deteriorated and the delivery time for orders had increased considerably. All this was happening because most of his previous staff had left as Rohit used to adopt a very strict and authoritative approach towards them.
In context of the above case:

  1. List any two aspects about his business that Raghav was controlling in order to make it successful.
  2. Explain briefly any two points to highlight the importance of the controlling function.
  3. Name and explain the style of leadership adopted by Rohit.

Answer:

  1. The two aspects about his business that Raghav was controlling in order to make it successful are listed below:
  • A standard taste was maintained.
  • The orders were executed on time.
  1. The two points that highlight the importance of the controlling function are listed below:
  • Judging accuracy of standards:The controlling function helps the business managers
    to judge the objectivity and accuracy of the current standards. It also assists in reviewing and revising the standards keeping in view the forthcoming changes in both the internal and external environment of the business.
  • Improving employee motivation:The controlling function seeks to motivate the employees and helps them to give better performance. This is because it makes them aware well in advance about what they are expected to do and what the standards of performance are on the basis of which they will be judged.
  1. Rohit had adopted an autocratic style of leadership. An autocratic leader expects strict compliance from his subordinates with regard to the orders and instructions given by him. Therefore, it involves only one-way communication.