Business Studies 2005 CBSE [ All India ] Set III

OUT OF SYLLABUS

Two functions of supervisor are –
(a)     Planning the work- The supervisor has to determine work schedule for even and steady flow of work.
(b)  Issuing orders- The supervisor issues orders and instructions to the workers for achieving co-ordination in his section. He tells them what to do and how to do.

Production concept- Some firms believe that potential exchange would be realised when the products are inexpensive and are widely available. This idea is the crux of the production concept. The firms that follow production concept make efforts to make their products inexpensive and widely available.

The two points of importance of directing as a function of management are given here :
(a)   Initiates action- All organizational activities are initiated through direction. Along with planning, organising and staffing, managers must stimulate action by issuing instructions to subordinates and by supervising their work. The aim of the direction is to activate employees to work towards the realization of predetermined goals of the organisation.
(b)  Integrates employees’ efforts- The performance of each individual affects performance of others. Thus, individual efforts need to be integrated so that organisation achieves its goals. The directing functions integrate the activities of the subordinates by supervision, guidance and counseling.

Functions of top-level management: -
1)     Determining objective of the business.
2)      Formulating broad policies of the business.

The importance of leadership in organisation may be derived from the following points :
 (a)    Leadership helps in guiding and inspiring employees to perform well and accomplish the goals.

(b)   It helps in persuading employees to work co-operatively and enthusiastically towards common goals of an organisation.

(c)    By his exemplary character and conduct, a leader instills confidence is subordinates and shows the right way.

(d)  Leader develops and maintains an environment conductive to maximum work effort.

Yes, I agree with the statement. Communication is the process of transmission of message, information etc. and creation of understanding between two parties. It involves sending a message to another, who receives the message and respond to it. Effective communication takes place when the received message is understood in the same sense by the receiver as the sender intends.
Importance of Communication-
(i) Communication facilitates planning- Participation of executives in planning is a pre-condition for getting the task done. This can be secured only through interaction and communication.

 (ii) Communication helps in decision-making- It is with the help of communication that management comes closer to the subordinates and is able to identify real problems and take appropriate decisions and impart the methods to solve these problems.

(iii)  Communication facilitates coordination- Communication is an aid to coordination. It is necessary for upward, downward and horizontal interactions between members at all the levels of authority. It is necessary for creating unity of purpose and action

Product related factors are :

(a)  When the goods to be distributed are costly like gold jewellery or industrial machine, them shorter channels should be used and vice-versa.
(b)  Technically complex products require expert advice and counseling at the point of sale therefore, direct or short channels are more appropriate.
(c)  If the product is perishable then shorter channels would be better than longer channels.

Objectives of Sales promotion:
(a)   To introduce new products- It aims at creating a demand in the market for new products.
(b)   To attract new customers- It aims at attracting new customers to buy their products.
(c)  To popularize a brand name- It aims at attracting new customers to buy their products.

Positive effects of following principles are :
(i)               Unity of direction- It implies that all the activities of a work unit or group should be directed towards its common objective. This will lead to better coordination and help in the effective management of the enterprise. It helps in forming a sound organisation.
(ii)              Esprit se Corps- The spirit of loyalty and devotion unites the members of the group. Team spirit helps in developing an atmosphere of mutual trust and understanding. It also minimises the need to use penalties for defaulting persons.
(iii)    Subordination of individual interests to general interests- Reconciliation of goals of individuals with those of the organisation helps to perform effectively as a team and achieve its goals. The sacrifice of personal interest against organizational interest provides an automatic lubricant to the working of an organisation.