Business Studies 2005 CBSE [ Delhi ] Set II

Production concept-Some firms believe that potential exchange would 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.

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

The fundamental assumption in this concept is that customers can be lured, coaxed and persuaded into buying. Firms practicing selling concept relies upon the power of advertising and other persuasion techniques to influence customers.

Two functions of lower level management are –

•  To prepare plans regarding their work and make distribution of work.
•    Representing the workers’ grievances before the management.

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.

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.

Motivation helps in improving the efficiency of workers in an organisation:

Objectives of Sales promotion:
(a)   To introduce new products- It aims at creating a demand in the market fro 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.

Features of public relations are :
(i)     Planned effort- Public relations activity has to be deliberately planned to achieve specified objectives.

(ii)    Creation and Maintenance of understanding- Public relations is a sort of communication where creation and maintenance of understanding is of utmost importance.

Adverse affects of the following principles of management on the organisation are :
(i)   Unity of command- Sometimes it is found that it is necessary and possible that an employee should receive orders from more than one superior to perform the task properly and in time. But this principle in certain situation is the cause of delay in work. It also results in wastage of time and duplication of efforts.
(ii)  Order- It creates rigidity regarding the position of resources and manpower employed.
(iii) Stability of tenure of personnel- In certain situations when the skills of present staff becomes obsolete it is necessary for the organisation to discontinue them. This way they do not have an opportunity to think at the macro level view of the organisation.