CHAPTER 2 &3

Q1. Rajeev is a middle level manager. He keeps all his subordinates under a lot of discipline. His
employees however complain of wastage of time and efforts as they feel that nothing is being assigned
in a proper way and a proper place, also no proper schedule is made for working. Which principle of
management is violated here? (1)

Q2. Pakka employment is a company which takes care of the fact that the confidence of the employees
should always be at its peak. For this reason they give surety to their employees for employment for a
minimum fixed tenure of time. Which principle of management is followed ere? (1)

Q3. Rohan and Amit are working in the purchase department of the company. Rohan is the brother-in-
law of the managing director of the company where as Amit has been recruited from an external source.
They both have been performing below average for the last couple of months. Many people in the
organization talk about their lack of responsibility. When the managing director of the company came to
know about their irresponsible behavior he immediately suspended Amit but did not take any action
against Rohan. Identify the principle of Fayol which has not been followed by the managing director in
the above case. (1)

Q4. A company is a component of market. It utilizes various raw materials, labor force, human
resources, power, water, other sources etc. When all these resources re utilized, output is produced. But
before the output is produced the input has to go through various operations. These operations convert
the raw materials in to final products which are then sold in the market.

In the above paragraph, which importance of business environment is highlighted? (1)

Q5. The market is flooded with better quality toys of foreign origin. The result is fall in revenue of the
indigenous or local companies as their products are much inferior and are also costlier. Which
dimension of business environment can be seen here affecting the local company’s revenue? (1)

Q6. A recent rate cut in the interest on loans announced by the banks encouraged Amit, a science
student of Progressive school to take a loan form State Bank of India to experiment and develop Cars to
powered by the fuel produced from garbage. He develop such a Car and exhibited it in the Science fair
organized by Directorate of Education. He was awarded first prize for his invention. Identify and explain
the dimensions of business environment discussed in the above case. (4)

Q6. Metlapp network and technologies Ltd. Is a leader in the technological innovations in the United
States, creating products and solutions for connecting world. It has a large research and development
team which invented the first smart watch named as W-7. The watch besides showing the time, also
monitors few health parameters such as heart beat, blood pressure etc.

While in search of markets abroad, the company found that in India, the reforms process was underway
with the aim of accelerating the pace of economic growth. The company decide to take advantage of
simplified export procedure and removal of quantitative as well as tariff restrictions in India. It set up its
offices in Jamnagar with a view to capture the Indian market. In a short soan of time, the company
emerged as a market leader. Success of the company attracted many other players to enter the market.
Competition resulted in reduction of prices, thereby benefitted the customers.
(i) in the above paragraph, two major concepts related to government policy have been discussed.
Identify and explain these concepts.

(ii) also, explain briefly any three impacts of these concepts on Indian business and Industry. (5)

Q7. ‘Raise the Bar’ is a sports equipment company it has different branches in different parts of the
world. However, the requirements of the sports equipment are different in different branches. This is
due to the change in cultures and lifestyle of the people in different countries. The market for which it is
dealing in is known for awareness of health. The more the awareness the more is the demand for such
equipment. Company knows that the demand for these products are unpredictable as new design keeps
on coming and the industry keeps on changing frequently. There is a research and development
department which keeps on updating the equipment in material and design. However the outside
business environment is characterized by changing customer preferences, entry of new competitors
making it change. A meeting was organized recently to understand the external business environment.
However, after meeting it was realized that business environment can’t be understood in totality it can
only be understood by breaking it in to its dimensions. The result of a successful meeting can be seen
later in the performance of the company which created record sales in the coming year. Identify the
features of business environment highlighted here. (3)

Q8. Aditi who is heading the campus recruitment program of the firm that she is working in, gets an
immediate order from the marketing head of the organization. Mr. Rupesh asks her to hire only those
candidates who have two years’ experience in the field of marketing and offer them a higher package.
Moments later when she is about to enter the campus she gets another call from the HR head who asks
her to hire candidates with zero experience. He gives her the logic that such candidates would be
expecting lower packages in comparison to the candidates having experience in the industry.

Identify and explain which principle of Fayol has been violated here and what are its consequences.(3)

Q9. Identify the technique of scientific management highlighted in the following statements: (5)

a) To determine standard time taken to perform a well-defined job.

b) To find out best way to do a particular job.
c) When many specialists supervise each worker.
d) Change in the attitude of workers and management towards one another from competition to
cooperation.
e) When uniformity is introduced in materials, machines, tools, methods of work and working
conditions after due research
 Nature and Significance of Management
Q1. Your grandfather has retired as the Director of a manufacturing company. At what level of
management was he working? What functions do you think he was performing at that level? State any
two. (3)

Q2. Vaibhav Garments Ltd.’s target is to produce 10,000 shirts per month at a cost of Rs. 150 per shirt.
The production manager could achieve this target at the cost of Rs. 160 per shirt. Do you think the
production manager is effective? Give reasons for your answer. (3)

Q3. Sooraj works as a salesman in a company selling pet accessories and food. He has been given a
target of selling 1200 units of the food packets in a month by offering a maximum of 10% discount to his
customers. In order to meet his monthly sales target, on the last two days of the month, he offers 15%
discount to his customers.

In the context of the above case:

Is Sooraj effective in his work? Explain by giving a suitable reason in support of your answer. (3)

Q4. Esha works as the cost and risk management head of a company in power sector. As a result of her
excellent managerial competence, the company is able to reduce costs and increase productivity. The
company belongs to infrastructure sector, wherein regular amendments are made in the government
regulations and policies. She holds regular meetings to ensure that people in her department are not
only aware of the related changes but are also able to adapt to these changes effectively. This helps the
company to maintain its competitive edge. She motivates and leads her team in such a manner that
individual members are able to achieve personal goals while contributing to the overall organizational
objective. In the process of fulfilling her duties for the growth of the organization, she helps in providing
competitive services, adopting new technology, creating more employment opportunities etc. for the
greater good of the people at large.

In context of the above case:

Identify the various reasons that have made management so important by quoting lines from the
paragraph. (3)

Q5. Mr. Nitin Singhania’s father has a good business of iron and steel. He wants to go to the USA for his
MBA but his father thinks that he should join the business. On the basis of emerging trends, do you think
that Mr. Singhania should send his son to the USA? Give any three reasons in support of your answer. (4)
Q6. Mega Ltd. Manufactured water-heaters. In the first year of its operations, the revenue earned by
the company was just sufficient to meet its costs. To increase the revenue, the company analyzed the
reasons behind the less revenues. After analysis, the company decided:

 To reduce the labour costs by shifting the manufacturing unit to a backward area where labour
was available at a very low rate.
 To start manufacturing solar water-heaters and reduce the production of electric water-heaters
slowly.

This will not only help in covering the risks but also help in meeting other objectives.

a) Identify and explain the objectives of management discussed below.

b) State any two values which the company wanted to communicate to society. (4)