BUSINESS STUDIES

MODEL EXAM
1. How does planning lead to rigidity and reduce creativity? Explain.(3)
2. Rahul, a worker, is given a target of assembling two computers per day. Due to his habit of doing
things differently, an idea struck him which would not only reduce the assembling time of
computers but would also reduce the cost of production of the computers. Rahul’s supervisor
instead of appreciating him, ordered him to complete the work as per the methods and techniques
decided earlier as nothing could be changed at that stage.
The above para describes one of the limitation of planning function of management. Name and
explain that limitation. (3)
3. Planning does not ensure a company’s success.” Comment.(3)
4. Briefly discuss the steps involved in planning?(3)
5. Why is planning referred to as a time-consuming process and involves huge costs?(3)
6. State any three advantages of formal organization. (3)
7. Panda Trucks Ltd.’ decided to set-up its new truck manufacturing factory in the backwards area
of Bihar were very less job opportunities were available. People of that area welcomed this effort
of ‘Panda Trucks Ltd’. To attract people to work in its factory it also decided to provide many
other facilities like school, hospital, market etc. in the factory premises. ‘Panda Trucks Ltd.’
started earning huge profits. Another competing company asked its production manager ‘Sanjay’
to investigate the reasons of earning huge profits by ‘Panda Trucks Ltd.’ Sanjay found that in
both the companies there was systematic coordination among the various activities to achieve
organizational goals. Every employee knew who was responsible and accountable to whom, The
only difference was that in his organization communication took place only through the scalar
chain whereas ‘Panda Trucks Ltd.’ was allowing flow of communication in all the directions as
per the requirement which led to faster spread of information as well as quick feedback.
(a) Identify the type of organization, which permits ‘Panda Trucks Ltd.’ the flow of
communication in all the directions.
(b) State another advantage of the type of organization identified in (a)
(c) State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to the society.(3)
8. Hindustan Ltd., is manufacturing computers, soaps and textiles. Which type of organizational
structure would suit the requirements of such organization? State any three advantages of this
organization structure. (3)
9. Rats & Fleas’ is a pesticide producing company. The company identifies the various types of
activities to be done. For this it divides the work into various departments. The company then
gets involved in its business with a lot of zeal. After one year of successful run the company
decides to transfer the decision-making authority to the lower most level of the employees. For
this a major policy decision is taken. Identify the function of management highlighted above and
another concept also. Give the next two steps of this function. Also give one importance of the
other concept which you have identified.(3)
10. A school principal believes in proper organizing. He time and again tells his staff to be organized
as he believes that through proper organizing they can move away from present norms and accept
new challenges with success. They will be able to add more activities and projects in their yearly
plan.
(a) Which importance of organizing has been indicated in the above paragraph?
(b) What is Organization Structure? Which type of organization is ‘School’?(3)
11. How directing helps in efficient and effective functioning of the organization? Explain by giving
any three points. (3)
12. Directing is the heart of the management process. Do you agree? Give any four reasons in
support of your answer.(3)
13. Explain the importance of communication.(3)
14. Classic Rocks’ is a pioneering advertisement making company. Mr. Anuj is a dynamic manager
who has recently joined the organization. He receives complete support from the management.
There is proper infrastructure, planning mechanism and subordinate support. He gives orders and
starts the actual working of a new unit from the 1st of May. His schedule becomes very hectic.
The demanding work involves him almost throughout the day. He is busy giving messages,
talking to his subordinates or seniors, etc. throughout the day. One day he meets his friend Vijay
who is working at the lower-level management though he himself is a part of middle level
management. He finds that even Vijay is involved in communicating and supervising his
employees throughout the year though he works at the lower-level management. Similar is the
case with his seniors working at the higher-level management. He feels relaxed after knowing
this and continues his work with even more dedication.
Which function of management is highlighted in the above case?
15. Identify the features of this function of management highlighted in the above case.(3)
16. Ramesh who has recently received award of the most talented manager is very able. He has
helped the starting of various halted projects by guiding his subordinates and removing their
doubts through proper directing. This has helped the workers achieve their targets on time. He
knows that every member of the team is important for the completion of a project. So, he guides
his team in such a manner that every single effort of every single employee matters and is
directed towards the achievement of objectives. There is a lighter side to his personality also. He
is very jovial. He cares about his team. This has helped him bring cooperation and commitment
among his team members thus bringing a unique balance between activities and the group.
However, this has not prevented him from having a keen vision of a leader. Whenever the
subordinates resist any change he tries to bring their cooperation by proper explanations and
consistent efforts. The top-level management also sees a big role for him in the future.
Identify the importance of directing highlighted in the above case (3)
17. Explain any three points of importance of 'Controlling' function of management (3)
18. Explain the following as points of importance of 'Controlling function of management:
(a) Judging accuracy of standards
(b) Making efficient use of resources(3)
19. A company 'M' Ltd. is manufacturing mobile phones both for domestic Indian market as well as
for export. It had enjoyed a substantial market share and also had a loyal customer following. But
lately it has been experiencing problems because its targets have not been met with regard to
sales and customer satisfaction. Also, mobile market in India has grown tremendously and new
player have come with better technology and pricing. This is causing problems for the company.
It is planning to revamp its controlling system and take other steps necessary to rectify the
problems it is facing.
(a) Identify the benefits the company will derive from a good control system.
(b) How can the company relate its planning with control in this line of business to ensure that
its plans are actually implemented and targets attained?
(c) Give the steps in the control process that the company should follow to remove the
problems it is facing.(3)
20. Mr. Murthy is the Human Resource Manager of Jai Hind Hospital in Vellore. He has to appoint
nurses for the hospital. Since patients in the hospital are of different types, he wants to find out
the candidates' maturity and emotions in dealing with the patients. he also wants to know about
the candidates' ability to make decisions. Explain two types of tests that Mr. Murthy can use to
meet his requirements.(3)
21. Define the staffing process and the various steps involved in it.(4)
22. Akansha, Nikita and Parishma are the owners of a handicraft unit in the urban area of Dibrugarh
in Assam, which is involved in the manufacturing and marketing of Sital Pati, traditional mats
and Jappi (the traditional headgear) They decided to shift this manufacturing unit to a rural area
with an objective of reducing the cost and providing job opportunities to the locals. They
followed the functional structure in this organization with a view to increasing managerial and
operational efficiency. They assessed and analyzed the type and number of employees required,
keeping in mind that they had to encourage the women, and the people with special needs
belonging to the rural area. State the next three steps that they will have to undertake, for
obtaining a satisfied workforce for their handicraft unit.(4)
23. International Ambitions of Essar The Essar group is looking to step up its global operations by
entering the riskier but profitable markets of Africa, eastern Europe and the Middle East. In its
core business of steel, the Essar group is also looking at a proposal to acquire an integrated steel
plant in Eastern Europe. The group has also announced its intention of setting up Greenfield steel
manufacturing operations in Sharjah, Qatar and Iran. It has plans to set up a 50-50 joint venture
with state owned Qatar Steel Company for a 1.5-million-ton steel plant along with a million-ton
steel rolling plant on the outskirts of Sharjah and another ton per annum steel plant in Iran,
according to a recent Essar newsletter. Even the Indonesia branch of Essar, where the group runs
a cold-rolling complex, is expected to look for Merger and Acquisitions (M&A) opportunities in
the region.
Explain how can Essar group benefit from planning(5)
24. What are the benefits and drawbacks of the divisional organization?(5)
25. Manav wanted to bring some changes in his company. One of those changes was the
establishment of new software in the organization. The software has the capability to judge the
performance of all the employees. Thus, it makes them more accountable. However, recently it
so happened that the employees resisted Manav’s decision. After a lot of thinking on the issue he
decided to call a meeting to address their needs and performance. He told them that with the
installation of the new software their needs would be fulfilled and the best performing employee
would be rewarded. Thus, he was able to bring down the resistance level of the employees.
(a) Which concept of directing is applied by Manav in the above case?
(b) Which one benefit of this concept has been highlighted in the above case
(c) Which style of leadership is Manav following by addressing employees' needs and
rewarding performance?
(d) Which element of directing is being used by Manav to communicate the benefits of the
new software to employees?
(e) Which type of incentive is being used by Manav to encourage employees to perform
better?(5)