Principles of Management — Business Studies STD 12 Commerce — Question

Distinguish between ‘Delegation’ and ‘Decentralisation’ on the basis of the following.

1. Purpose;
2. Scope;
3. Status; and,
4. Nature.

'If we delegate the authority we multiply it by two, if we decentralise it we multiply it by many'. In the light of this statement explain any four points of importance of decentralisation.

Distinguish between 'Formal' and 'Informal' organisation.

State any two advantages and two limitations of informal organisation.

Explain any four points regarding significance of Principles of management.

Aman, Avneesh and Amrish have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform:

1. Purchase of raw materials.
2. Purchase of machinery.
3. Arrangement of finance.
4. Production of toys.
5. Sale of toys.
6. Identifying the areas where they can sell their toys.
7. 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.

1. Identify the function of management involved in the above-mentioned para.
2. Quote, the lines from the above para which help you in identifying this function.
3. State the steps followed in the process of management.

The workers of 'Vyam Ltd.' are unable to work on new and hi-tech machines imported by the company to fulfil the increased demand. Therefore, the workers are seeking extra guidance from the supervisor. The supervisor is overburdened with the frequent calls of workers. Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently?Also, state any three benefits that the workers will derive by the decision of the supervisor.

What is required to tackle the uncertainty in respect of availability and timings of funds? Name the concept involved and explain any three points of its importance.

Explain any four factors which affect the ‘Fixed Capital’ requirements of a company.

Atul-The Assistant Manager, Vikas-the Marketing Head and Leena-The Human Resource Manager of ‘Montac Enterprises Ltd.’ decided to leave the company.
The Chief Executive Officer of the company called the Human Resource Manager, Leena and requested her to fill up the vacancies before leaving the organisation. Leena suggested that her subordinate Miss Rama Wadhwa is very competent and trustworthy, if she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer agreed for the same. Miss Rama Wadhwa contacted ‘Smith Recruiters’ who advertised for the post of marketing head for ‘Montac Enterprises Ltd’. They were able to recruit a suitable candidate for the company. Atul’s vacancy was filled up by screening the database of unsolicited applications lying in the office.

(1) Name the internal/external sources of recruitment used by ‘Montac Enterprises Ltd.’ to fill up the above-stated vacancies.

(2) Also state anyone merit of each of the above-identified source of recruitment.