Business Studies 4 Marks Question

i. Right to safety A consumer has a right to be protected against goods and services which are hazardous to life and health. For instance, electrical appliances which are manufactured with sub-standard products do not conform to the safety norms, might cause serious injury. Therefore, the companies should manufacture the product by taking into consideration the quality and safety features of the product and the product must bear a standard safety mark like ISI and AGMARK. Thus, consumers are educated that they should use electrical appliances which are ISI marked, as this would be an assurance of such products meeting quality specifications.
ii. Right to be heard A consumer has a right to file a complaint and to be heard in case of dissatisfaction with regard to a good or service. It is because of this reason that many enlightened business firms have set up their own consumer service centers and grievance cells. Many consumer organizations are also working towards this direction and helping consumers in redressal of their grievances. Consumers must become vigil towards this fact that in case they are cheated, then they can seek justice by approaching the grievance cells.

Difference between Primary Market and Secondary Market:

Basis	Primary Market	Secondary Market
(a) Company Involvement	Securities are sold by the company to the investors.	Ownership of existing securities is exchanged between investors; company is not involved.
(b) Price Determination	Prices are determined by the management of the company.	Prices are determined by the forces of demand and supply of securities.
(c) Location	No fixed location.	Located at specified places.
(d) Capital Formation	Directly promotes Capital formation in the country.	Indirectly promotes Capital formation in the country.

Importance of Supervision/Functions of Supervisor:
1. Ensures Issuing of Instructions: The supervisor makes sure that all the instructions are communicated to each and every employee. The top level and middle level, plan out all the instructions but the instructions are issued only by supervisory level management.
2. Optimum Utilisation of Resources: When the workers are constantly monitored or observed then they always use the resources in the best possible manner which leads to minimum wastage. But if there is no supervision or check on workers they may result in wastage of resources.
3. Discipline: The strict supervision and guidance of supervisor encourages the employees and workers to be more disciplined in their activities. Under the guidance of supervisor the workers follow a fixed or strict time-table and execute the plans in right directions.
4. Maintain group unity: Supervisor plays a key role in maintaining group unity among workers working under him he maintains harmony among workers by solving their disputes.

a. In this case, ‘Principle of Equity’ has been ignored. According to the principle, the managers should treat their subordinates in a just and kind manner.
b. Values that have been ignored:
i. Good human behaviour: In order to please his boss, Devender, always plays the role of
“Yes Man.”
ii. Gender Equality: Inspite of all this, Mr. Parsad decided to promote Devender, Behind this decision, the consideration of the boss was, being a lady, Rakhi will not be able to take as yet, the responsibility of a higher post. So let her stay where she is at present.

a. The controlling function of management is needed to rectify the above situation.
b. The procedure to be followed so that the actual production may come up with the target production is as follows:
i. Establish standards to measure performance.
ii. Measure actual performance.
iii. Compare performance with the standards.
iv. Take corrective actions..

Controlling Process consists of following systematic steps:
1. Setting Performance Standards:
The first step in the process of controlling is concerned with setting performance standards. These standards are the basis for measuring the actual performance. Thus, standards act as a lighthouse that warns & guides the ships at sea. Standards are the benchmarks towards which efforts of entire organisation are directed. These standards can be expressed both in quantitative and qualitative terms.
2. Measurement of Actual Performance:
Once the standards have been determined, the next step is to measure the actual performance. The various techniques for measuring are sample checking, performance reports, personal observation etc. However, in order to facilitate easy comparison, the performance should be measured on same basis that the standards have.
3. Comparing Actual Performance with Standards: This step involves comparing the actual performance with standards laid down in order to find the deviations. For example, performance of a salesman in terms of unit sold in a week can be easily measured against the standard output for the week.
4. Analyzing Deviations: Some deviations are possible in all the activities. However, the deviation in the important areas of business needs to be corrected more urgently as compared to deviation in insignificant areas. Management should use critical point control and management by exception in such areas.
5. Taking Corrective Action: The last step in the process of controlling involves taking corrective action. If the deviations are within acceptable limits, no corrective measure is required. However, if the deviations exceed acceptable limits, they should be immediately brought to the notice of the management for taking corrective measures, especially in the important areas.

• While making plans every manager has to make certain assumptions related to the future. These assumptions are known as premises.
• Planning premises are assumptions relating to future conditions and events which are likely to have an effect on the achievement of organizational goals.
• These are the bases upon which the entire structure of planning is built.
• Every plan is drawn with certain assumptions. To make planning effective, it is necessary that the premises should be based on accurate forecasts..
• For example, demand for a product, the cost of raw materials, interest rates, state of technology, the intensity of competition, government policies etc.

Policy
• These are the general guidelines which bring uniformity in decision making.
• It can be defined as an organisation's general response to a particular problem or situation.
• Policies are made at every level because the managers at every level need to decide or predetermine the way of handling a situation.
• These act as a guide to take decisions in an unexpected situation.
• For example, a school may have a policy of giving admission to the students who have secured more than 60 % marks.
Procedure
• These are those plans which determine the sequence of any work to be performed.
• They are specified in chronological order.
• Procedures are designed to execute policies and achieve objectives.
• For example, the procedure may be for the purchase of raw material, selection of employees, redressal of grievances, etc.