Business Studies 4 Marks Question

Some of the quality certification marks are:
i. FPO (Fruit Products Order 1955) - It contains specification and quality control requirements regarding the production and marketing of processed fruits and vegetables, sweetened aerated water, vinegar and synthetic syrups.
ii. ISI- On consumer durable products. ISI mark is a certification mark for industrial products in India. It is the most popular and recognised certification mark in the Indian subcontinent. This mark ensures that the product conforms to the Indian standards mentioned by the Indian Standard Institute.
iii. Hallmark- BIS certification scheme for gold jewellery items.
iv. Earthen Pitcher- for Labelling Environment-friendly products.
v. AGMARK - It is a grade standard for agricultural commodities and like stock products.
vi. Wool mark- It signifies 100% pure wool.

i. The company should buy Shares, debentures, bonds.
ii. The Capital market is expected to give a better return in a buoyant economy as
a. The securities are held for a longer duration
b. There is a scope of earning capital gains on shares.
iii. The securities are safe in this market as compared to the money market because:
a. Capital markets are well organized whereas money markets are not that organized
b. Liquidity is high in the money market whereas liquidity is comparatively low in capital markets.
c. Due to high liquidity and low duration of maturity in money markets, Instruments in money markets are a low risk whereas capital markets are the comparatively high risk.

Motivation is a goal-oriented characteristic that helps a person achieve his objectives. It pushes an individual to work hard at achieving his or her goals. An executive must have the right leadership traits to influence motivation. However, there is no specific blueprint for motivation.
As a leader, one should keep an open perspective on human nature. Knowing different needs of subordinates will certainly make the decision-making process easier.
Both an employee as well as manager must possess leadership and motivational traits. An effective leader must have a thorough knowledge of motivational factors for others. He must understand the basic needs of employees, peers and his superiors. Leadership is used as a means of motivating others.

The following steps can be taken:
(i) Eliminate unnecessary movements in doing a work;
(ii) Conduct 'Fatigue study' and provide rest intervals to employees so as to enable them to regain lost stamina;
(iii) Use 'Differential piece wage system' in which efficient and inefficient workers are paid at different rates. It will motivate the workers to put in their maximum efforts.

Controlling is a basic managerial function. Controlling consists of verifying whether everything occurs in conformities with the plans adopted, instructions issued and principles established.

i. Controlling helps inefficient use of resources- Controlling help inefficient use of resources. An effective controlling system seeks to reduce wastage and spoilage of resources because activities are performed in accordance with predetermined standards.
ii. Controlling facilitates decision-making- Controlling and decision-making are considered to be twins. The process of controlling is complete only when corrective measures are taken. This requires taking the right decision as to what type of follow up action is to be taken. Controlling helps in quick decision-making by bringing together all the units in action.

Rule:
(i) Rules are specific statements that inform or guides the employees what should or shouldn't be done in the organisation.
(ii)Rule is standing type of plan. They are generally formalised in writing and are not made for individual. (iii) They do not allow for any flexibility or discretion. It reflects a managerial decision that a certain action must or must not be taken.
(iii) For example, 'No Smoking' is a rule in some work areas and other places. Similarly, organisations formulate service rules and work rules on recruitment, promotion, leave, transfer, discipline, retirement, and so on.
Method:
(i) Methods provide the best possible way to do a task and are performed for achievement of the objective.
(ii) Selection of proper method saves time, money and effort and increases efficiency.
(iii) For example, there are a number of methods for training the new employees amongst all the organisation.For higher level management orientation programmes, lectures and seminars can be organised whereas at the supervisory level, on the job training methods and work oriented methods are appropriate.

While business planning is important and a requisite for every organization, it does have some limitations:
i. Rigidity: Once the planning function is complete and the action plan is set, then the manager tends to only follow the plan. The manager may not be in a position to change the plan according to circumstances. Or the manager may be unwilling to change the plan. This sort of rigidity is not ideal for an organization.
ii. Not ideal in Dynamic Conditions: In an economic environment rarely anything is stagnant or static. Economic, political, environmental, legal conditions keep changing. In such a dynamic environment it becomes challenging to predict future changes. And if a manager cannot forecast accurately, the plan may fail.
iii. Planning can also reduce creativity: While making a plan takes creativity after that managers blindly follow the plan. They do not change the plan according to the dynamic nature of the business. Sometimes they do not even make the appropriate suggestions to upper management. The work becomes routine.