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Business Studies 4 Marks Question

Directing · CBSE STD 12 Commerce (CBSE - English Medium). 21 questions.

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4 Marks Question

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21 questions · timed · auto-graded

Question 14 Marks
'A.S. Environs Ltd.' is dealing in Environment- Consultancy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air whereas his team travelled by road/train. It was not only time consuming but also at times forced the female team members to travel alone.
As a result, the subordinates were not acting in a desired manner to achieve organisational goals. The CEO of the company came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that in future all the members including the leader would travel together and usefully utilise the travelling time in discussion about the presentation to be given to the clients. This made a positive impact, and every member of the team started acting in a manner as desired by the team leader.
State, the features of the element of the function of management used by the CEO.
Answer
Motivation is the element of the function of management used by the CEO. Motivation means the process of making subordinates to act in a desired manner to achieve certain organisational goals. In this case the CEO found that the travel policy was not effective and efficient due to which subordinates were not acting in the desired manner.Features of motivation:
  1. Motivation is an internal feeling. The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behaviour.
  2. Motivation produces goal directed behavior.
  3. Motivation can be either positive or negative. Positive motivation provides positive rewards like increase in pay, promotion, recognition etc., Negative motivation uses negative means like punishment, stopping increments, threatening etc.
  4. Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Any type of motivation may not have uniform effect on all the members.
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Question 24 Marks
“Leadership is required only for less efficient subordinates". Do you agree? Explain any four reasons in support of your answer.
Answer
I do not agree with the above statementImportance of leadership:
  1. Leadership influences the behaviour of people and makes them to positively contribute their energies for the benefit of the organisation. Good leaders always produce goods results through their followers.
  2. A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial work environment.
  3. Leader plays a key role in introducing required changes in the organisation. He persuades clarifies and inspires people to accept changes whole-heartedly.
  4. A leader handles conflicts effectively and does not allow adverse effects resulting from the conflicts.
  5. Leader provides training to their subordinates. A good leader always builds up his successor and helps in smooth succession process.
Therefore, it is concluded from the above points that leadership is not required for less efficient subordinates but its required for whole organization.
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Question 34 Marks
‘It is only motivation through which the managers can inspire their subordinates to give their best to the organisation’. In the light of this statement explain any four points of importance of motivation.
Answer
It is only motivation through which managers can inspire their subordinates to give their best to organisation because motivation:
  1. Helps to improve performance level of employees.
  2. Helps to change negative attitudes of employees to positive attitudes.
  3. Helps to reduce the employee turnover.
  4. Helps to reduce absenteeism in the organisation.
  5. Helps managers to introduce new changes without much resistance.
  6. Helps in creating a supportive work environment.
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Question 44 Marks
‘K.S. Energy Ltd.’ was a energy efficiency consultancy company. To get the business the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the team leader used to travel by air, whereas his team travelled by road/train. It was not only time consuming but also at times forced female team members to travel alone.
As a result, the subordinates were not acting in a desired manner to achieve organizational goals. The CEO came to know about it. He called the team leader, discussed the matter with him and changed the travel policy of the company. It was decided that all the members including the leader would travel together in future and would usefully utilize the travelling time in discussion with the subordinates about the presentation to be given to the clients. This made a positive impact and every member of the team started acting in a manner as desired by the team leader.
State the features of the element of the function of management used by the CEO.
Answer
Motivation is the element of the function of management used by the CEO. Motivation means the process of making subordinates to act in a desired manner to achieve certain organisational goals. In this case the CEO found that the travel policy was not effective and efficient due to which subordinates were not acting in the desired manner.Features of motivation:
  1. Motivation is an internal feeling. The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behaviour.
  2. Motivation produces goal directed behavior.
  3. Motivation can be either positive or negative. Positive motivation provides positive rewards like increase in pay, promotion, recognition etc., Negative motivation uses negative means like punishment, stopping increments, threatening etc.
  4. Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Any type of motivation may not have uniform effect on all the members.
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Question 54 Marks
‘Alfa Ltd.' was dealing in renewable energy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the leader used to travel by air, whereas his team travelled by road/train. It was not only time consuming but also at time forced female team members to travel alone.As a result, the subordinates were not acting in desired manner to achieve organisational goals. The CEO came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that all the members including the leaders would travel together in future and would usefully utilise the travelling time in discussion with the subordinates about presentation to be given to the clients. This made a positive impact, and every member of the team started acting in a manner as desired by the team leader.
State, the features of the element of the function of management used by the CEO.
Answer
Motivation is the element of the function of management used by the CEO. Motivation means the process of making subordinates to act in a desired manner to achieve certain organisational goals. In this case the CEO found that the travel policy was not effective and efficient due to which subordinates were not acting in the desired manner.Features of motivation
  1. Motivation is an internal feeling. The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behaviour.
  2. Motivation produces goal directed behavior.
  3. Motivation can be either positive or negative. Positive motivation provides positive rewards like increase in pay, promotion, recognition etc., Negative motivation uses negative means like punishment, stopping increments, threatening etc.
  4. Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Any type of motivation may not have uniform effect on all the members.
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Question 64 Marks
''All managers are leaders, but all leaders are not managers''. In the light of this statement differentiate between leadership and management.
Answer
Leadership involves securing willing cooperation of subordinates by influencing their behaviour towards realisation of specified goals. It is part of management.
Management is the creation of an internal environment whereby individuals working together in groups can work efficiently and effectively towards the achievement of common goals. It includes leadership.
Basis of differentiaion
Leadership
Management
Meaning
Leadership is a skill of leading others by examples
Management is an art of systematically organizing and coordinating things in an efficient way.
Emphasis on
Inspiring People
Managing activities
Focus on
Encouraging change
Bringing stability
Formulation of
Principles and guidelines
Policies and Procedures
Perspective
Leadership requires good foresightedness.
Management has a short range perspective.
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Question 74 Marks
‘Supervision is not at all required in an organisation’. Do you agree? Give two reasons in support of your answer.
Answer
No, I do not agree with the above statement -The reasons are:
  1. It involves issuing instructions.
  2. It helps in facilitating control.
  3. It helps in optimal utilisation of resources.
  4. It helps in maintenance of discipline.
  5. It helps in timely feedback.
  6. It helps in improving communication.
  7. It helps in improving motivation.
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Question 84 Marks
Ram Murthy, the CEO of ‘Goodcare Hospitals’, a leading chain of hospitals, decided to reward the good work of the doctors of his organisation. For this he instituted two running trophies. A ‘Healthcare Achievers Trophy’ to acknowledge and appreciate the tireless efforts of the doctors who rendered selfless services to the patients and another ‘Beti Bachao Trophy’ to recognise the outstanding work done by the doctors in saving the girl child.
The CEO also wanted to improve the health services in rural areas all over the country. He decided that all doctors must work in rural areas for at least six months. He also decided that the paramedical staff should be employed locally.
  1. Identify the incentive provided by ‘Goodcare Hospitals’ to its doctors through running trophies.
  2. Which need of the doctors will be satisfied through the incentive identified in part (a)? State.
  3. State any two values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the society.
Answer
  1. The incentive provided by ‘Goodcare Hospitals’ to its doctors through running trophies is Employee Recognition Programme.
  2. Esteem needs of the doctors will be fulfilled through the employee recognition programme.
  3. The values that the CEO of ‘Goodcare Hospitals’ is trying to communicate to the society:
  1. Healthcare to rural people.
  2. Upliftment of poor in rural areas.
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Question 94 Marks
Rahim was working in an enterprise on daily wages basis. It was difficult for him to fulfill 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.
Also, explain two other needs of Rahim followed by above that are still to be satisfied.
Answer
The other needs followed by the above stated needs that are still to be satisfied are:
  1. Affiliation need: It refers to the need for affection, sense of belongingness, acceptance and friendship.
  2. Esteem need: It refers to the need for self-respect, autonomy, status, recognition and attention.
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Question 104 Marks
Explain different networks of grapevine communications?
Answer
Grapevine communications may follow different types of network they are:
  1. Single Strand Network: Each person communicates to the other in
    sequence.
  1. Gossip Network: Each person communicates with all on non-selective basis.
  1. Probability Network: The individual communicates randomly with other individual.
  1. Cluster Network: The individual communicates with only those people whom he trusts.
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Question 114 Marks
How supervision is helpful in the improvement of communication and motivation?
Answer
  1. Improves Communication: Whenever a situation of dispute arises between any two parties, the main reason for it is lack of communication. Under supervision, supervisor gives orders and directions to his subordinates. Also, he, in turn, receives feedback from them. On the other hand, subordinates communicate their ideas, suggestions, complaints, etc. to the supervisor. In this manner, a friendly atmosphere is created between both the parties. This strengthens free communication.
  2. Improves Motivation: Every employee aspires to see himself as an important part of the organisation. During supervision, a supervisor divides the work in a manner that every person feels the responsibility for an important job in the organisation. By getting this kind of importance, an employee feels motivated and renders his responsibility with more diligence.
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Question 124 Marks
Blue Birds Ltd. offers to its employees to issue shares at a price which is less than the market price.
Name and explain the type of incentive offered to the employees.
Answer
Co-partnership: To issue shares to the employees at a price which is less than the market price is an example of co-partnership. It is one of the financial motivators. “Co-partnership implies both profit sharing and control sharing”. In short, it can be said that co-partnership is the plan by virtue of which employees become partners of the company. It improves the status of the employees. Consequently, they begin to take more interest naturally in the management of the organisation. Therefore, the efficiency of employees increases and a sense of responsibility develops in them.
Features:
  1. The employees are also the shareholders of the company.
  2. The employees get dividend on the issued shares.
  3. The employees also participate in the management due to their shareholding.
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Question 134 Marks
Explain the process of motivation?
Answer
Motivation process is based on how unsatisfied human need gets satisfied and results in reduction of tension.
The steps of motivation process are as follows:
  1. Unsatisfied Need: The need of an individual which is not satisfied.
  2. Tension: Unsatisfied need creates tension.
  3. Drive: This tension creates drive and an individual starts looking for alternatives to satisfy the need.
  4. Search Behaviour: Then he starts behaving as per chosen option.
  5. Satisfied Need: After opting the chosen behaviour his need got satisfied.
  6. Reduction of Tension: The fulfillment of need results in relieving of tension.
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Question 144 Marks
What are semantic barriers of communication?
Answer
While communicating a message, misrepresentation of communication causes misunderstanding on account of use of wrong words lack of vocabulary skills, faulty translations, different interpretations is known as semantic barriers. It is concerned with the problems which arises in the process of encoding and decoding of message into words or impressions. Main causes of semantic barriers are listed below:
  1. Badly expressed message.
  2. Symbols with different meanings.
  3. Faulty translations.
  4. Unclarified assumptions.
  5. Technical jargon.
  6. Body language and gesture decoding.
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Question 154 Marks
‘Supervision is not at all required in an organisation’. Do you agree? Give two reasons in support of your answer.
Answer
No, I do not agree with this statement. Following are the reasons of it:
  1. Facilitates Control: Under supervision, supervisor keeps a close eye on his subordinates. Wherever he finds any flaws in the work-in-progress, he rectifies them then and there itself. From time to time deviations are noted by comparing actual work performance and the desired work performance. Corrective measures are taken if the need is felt. In this manner, supervision assures control.
  2. Optimum Utilisation of Resources: Under supervision, all the activities are closely monitored. In this situation, better utilisation of all the resources like human, material, machinery, etc. takes place. The problem is at once solved because the employees are always under a close watch. As a result, they start doing effective work in minimum possible time.
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Question 164 Marks
Explain the elements of directing function of management.
Answer
Following are the elements of directing:
  1. Supervision: It refers to monitor the progress of routine work of one’s subordinates and guiding them properly. Supervision is an important element of the directing function of management. Supervision has an important feature that face-to-face contact between supervisor and his subordinate is a must.
  2. Communication: It refers to an art of transferring facts, ideas, feeling, etc. from one person toanother and making him understand them. A manager has to continuously tell his subordinatesabout what to do, how to do, and when to do various things. Also, it is very essential to know theirreactions. To do all this, it becomes essential to develop effective telecommunication facilities.Communication by developing mutual understanding inculcates a sense of cooperation whichbuilds an environment of coordination in the organisation.
  3. Leadership: It refers to influence others in such a manner to do work what the leader wants them to do. Leadership plays an important role in directing. Only through this quality, a manager can inculcate trust and zeal among his subordinates.
  4. Motivation: It refers to that process which excites people to work for attainment of desired objective. Among the various factors of production, it is only the human factor which is dynamic and provides mobility to other physical resources. If human resource goes static then other resources automatically turn immobile.
Thus, it becomes essential to motivate human resource to keep them dynamic, aware and eager to perform their duty. Both monetary and non-monetary incentives are given to employees for motivation.
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Question 174 Marks
State any four characteristics of motivation.
Answer
  1. Motivation is an Internal Feeling: Motivation is a psychological concept which lies within a person. First of all, some needs appear in the mind of an individual which affect his behaviour. He wants to do some work in order to satisfy those needs.
  2. Motivation Produces Goal-directed Behaviour: Motivation is a power which leads the employees to the achievement of their goal. The behaviour of the motivated employees clearly shows that they are inclined towards the achievement of their goal. For example, promotion is a technique of motivation. The employees who desire to be promoted definitely improve their work performance.
  3. Motivation Can be either Positive or Negative: There are two types of employees from the point of view of motivation-laborious and shirkers. Those employees who are laborious in the true sense of the word are encouraged with some awards. This is called positive motivation. On the other hand, those workers who are by nature shirkers are encouraged to work with the threat of demotion, suspension or termination. Such people start working because of the fear factor. This is called negative motivation.
  4. Motivation is a Complex Process: All the people working in an organisation have different nature. All have different needs. Therefore, everybody cannot be motivated with only one motivator. Keeping in mind the needs of the person concerned, monetary and non-monetary techniques are used. Therefore, it is a complex process.
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Question 184 Marks
Distinguish between leaders and managers.
Answer
Basis Manager Leader
Existence A manager exists only in a formal organisation structure. A leader can be found in both formal & informal organisation structures
Focus The focus of a manager is on achieving the organisational goals. The focus of a leader is on fulfilling aspirations and expectations of his followers
Authority A manager possesses formal authority. A leader enjoys acceptance authority.
Functions Manager performs all functions of an organisation i.e. planning, organising, directing, controlling. Leader performs only one function i.e. directing
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Question 194 Marks
Blue Birds Ltd. offers to its employees to issue shares at a price which is less than the market price.
Explain one more incentive of the same category.
Answer
Profit Sharing: By profit sharing we mean providing share in profit of the organisation to the employees besides their regular remuneration (salary/ wages). The main goal of this incentive plan is to create the feeling of ownership among the employees for their organisation.
Features:
  1. The employees participate only in profit.
  2. The percentage of share in the profit is decided in the beginning of the year.
  3. There can be no change in the percentage of the share of profit between the year once decided.
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Question 204 Marks
Show the process of communication through diagram.
Answer
Process of Communication:
Elements of communication process are:
  1. Sender: Person who conveys his thoughts or ideas to the receiver.
  2. Message: Content of ideas, feelings, suggestions, order, etc. intended to be communicated.
  3. Encoding: Process of converting the message into communication symbols such as words, pictures, gestures, etc.
  4. Media: Path through which encoded message is transmitted to receiver in written form, face to face, phone call or internet etc.
  5. Decoding: Process of converting encoded symbols of the sender.
  6. Receiver: Person who receives communication of the sender.
  7. Feedback: It includes all those actions of receiver indicating that he has received and understood message of sender.
  8. Noise: Some obstruction or hindrance to communication which may be caused to sender, message or receiver.
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Question 214 Marks
Mrs. Chhatwal is working as a Human Resource Consultant in a firm manufacturing garments, which is facing a problem of high employee turnover. The Managing Director has invited suggestions from her for retaining the talented employees. Mrs. Chhatwal recommends that the good employees be rewarded in a way that it creates a feeling of ownership amongst the employees and at the same time makes them contribute towards the growth of the organization.
  1. Identify the incentive which has been suggested by Mrs. Chhatwal to the Managing Director of the Company.
  2. Also, explain any three other incentives of the same type.
Answer
  1. Mrs. Chhatwal suggested Financial Incentive.
  2. The three other incentives of the same type are:
  1. Pay and allowances: Salary is the top most priority/ incentive for work to any employee in the organisation. If performance of an employee improves each year, then he may be rewarded by hike in salary and other allowances.
  2. Bonus: It is a reward that is offered on a one time basis for high performance. A bonus may be in cash or in some other form, e.g., many sales organisations periodically offer prizes, such as trips, for their top sales people.
  3. Profit sharing: It is often discussed that labour being the live factor in production, is entitled to share in the surplus earned by his firm. Employers often use this device to extort their loyalty and reduce the influence of trade unions. This provides group incentive to the workers for higher productivity and greater profitability.
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