Business Studies 2005 CBSE [ Delhi ] Set III

OUT OF SYLLABUS

Following are the two features of directing function of management :

(1)   It is a pervasive function of management i.e., it is performed at every level of management.
(2)  It provides a link between preparatory functions (planning, organising and staffing) and controlling function of management.

The product concept proposes that the way to realising business goals lies in making products that are of high quality. That is, the customers favour high quality products.

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.

Two functions of middle level management are –
(i)      Interpretation of policies framed by top management.
(ii)   Preparing the organizational set up in their departments for fulfilling the objectives implied in various business policies.

Market related factors are given here :
i. Nature of Market- Nature of the market i.e., whether the market for the product is industrial or consumer. In consumer market indirect channels are preferred whereas in industrial market direct channels are preffered.

ii. Size of Market- When market consists of small customers-base, short or direct channels could be used and if there are a large number of customers it would require use of many channels members.

iii. Quantity purchased- If the order placed is big, some sort of direct or limited channel can perform the job efficiently. In consumer goods, the order size tends to be small, therefore, direct selling may not be the right option.

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:

Yes, I do agree with this statement. 
               DIFFERENCE BETWEEN LEADERSHIP AND MANAGERSHIP

Features of personal selling are:
(a)   Personal selling involves individual’s personal communication.
(b)   It relies on oral messages only.
(c) It implies contact with limited number of people