Commerce (English Medium) Class 12 - CBSE Important Questions for Business Studies

'Steelo Ltd.' decided to set-up its steel manufacturing factory in the backward area of Orissa where very less job opportunities were available. People of that area welcomed this effort of 'Steelo 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. 'Steelo Ltd.' started earning huge profits. Another competing company asked its production manager 'Aslam' to investigate the reasons of earning huge profits by 'Steelo Ltd.' Aslam found that in both the companies there was systematic coordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain whereas 'Steelo Ltd.' was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feedback.

a. Identify the type of organisation which permits 'Steelo Ltd.' the flow of communication in all the directions.
b. State another advantage of the type of organisation identified in (a) above.
c. State any two values which 'Steelo Ltd.' wanted to communicate to the society

'My Car Ltd.' decided to set-up its new car manufacturing factory in the backward area of West Bengal where very less job opportunities were available. People of that area welcomed this effort of 'My Car Ltd.' The company also decided to provide facilities like school, hospital, market etc. in the factory premises so that the people are attracted to join the factory as workers.

'My Car Ltd.' started earning huge profit. Another competeting company asked its production manager 'Arvind' to investigate the reasons of earning huge profits by 'My Car Ltd.'

Arvind found that in both the companies there was systematic co-ordination among the various activities to achieve organisational goals. Every employee knew who was responsible and accountable to whom. The only difference was that in his organisation communication took place only through the scalar chain, where as 'My Car Ltd.' was allowing flow of communication in all the directions as per the requirement which lead to faster spread of information as well as quick feed-back.

a. Identify the type of organisation which permits the flow of communication in all the directions in 'My Car Ltd.'

b. Also state an advantage of the type of organisation identified in part (a) above.

c. State any two values which 'My Car Ltd.' wants to communicate to the society.

Name the organizational structure which helps in increasing managerial and operational efficiency.

‘Panda Trucks Ltd.’ decided to set-up its new truck manufacturing factory in the backward area of Bihar where 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 competiting company asked its production manager ‘Sanjay’ to investigate the reasons of earning huge profits by ‘Panda Trucks Ltd’. Sanjay found out that in both the companies there was systematic co-ordination 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 lead 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 an advantage of the type of organization identified in (a) above.

c. State any two values which ‘Panda Trucks Ltd.’ wanted to communicate to the society.

Differentiate between formal and informal organisations on the basis of origin

Differentiate between formal and informal organisation on the basis of origin.

Samir Gupta started a telecommunication company, 'Donira Ltd' to manufacture economical mobile phones for the Indian rural market with 15 employees. The company did very well in its initial years. As the product was good and marketed well, the demand of its products went up. To increase production the company decided to recruit additional employees. Samir Gupta, who was earlier taking all decisions for the company had to selectively disperse the authority. He believed that subordinates are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range.

1) Identify the concept used by Samir Gupta through which he was able to steer his company to greater heights.

2) Also, explain any three points of importance of this concept.

State its any two advantages of the divisional structure

'Himalaya Ltd', is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes the efficiency of employees. There is no duplication of efforts in such type of organisation structure.

Identify the type of organisation structure described above

Neeraj Gupta started a company 'YoYo Ltd'. with ten employees, to assemble economical
computers for the Indian rural market. The company did very well in its initial years. As the product was good and marketed well, the demand went up. To increase production the company decided to recruit additional employees. Neeraj Gupta, who was earlier taking all decisions for the company, had to selectively disperse the authority. He believed that people are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range with different features

a. Identify the concept used by Neeraj Gupta through which he was able to steer his company to greater heights.
b. Also, explain any three points of importance of this concept.

Harsh started a company ‘Tiny-Toys Ltd.’ to manufacture economical toys for the Indian rural market, with 20 employees. The company did very well in its initial years. As the products were good and marketed well, the demand of its products went up. To increase the production the company decided to recruit additional employees. Harsh who was earlier taking all decisions for the company had to selectively disperse the authority. He believed that subordinates are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range with different features.

a. Identify the concept used by Harsh through which he was able to steer his company to greater heights.
b. Also, explain any three points of the importance of this concept.

State any two disadvantage functional structure of an organisation

Differentiate between formal and informal organization on the basis of the following:

Flow of communication

Define organization as a structure.

Identify the type of organization structure depicted in the above diagram:

An organization structure is deliberately designed by the top management to facilitate smooth functioning of the organisation. Which of the following is not a feature of such a structure?

1. Identify and state the type of organisation formed by the employees of 'taty Software Ltd.
2. Also, state any two advantages and two limitations of the type of organisation identified in (i) above.

Alpha Enterprises is a company manufacturing water geysers. The company has a functional structure with four main functions Production, Marketing, Finance and Human Resource. As the demand for the product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.

Bhagwati Enterprises is a company engaged in the marketing of air-conditioners of a famous brand. The company has a functional structure with four main functions Purchase, Sales, Finance and Staffing. As the demand for the product grew, the company decided to recruit more employees.

Identify the concept which will help the Human Resource Manager to find out the number and type of personnel available so that he could decide and recruit the required number of persons for each department.

Vegatech Enterprises was a company manufacturing refrigerators. The company had a functional structure with four main functions -Production, Marketing, Finance and Human Resource. As the demand for the products grew, the company decided to hire more employees.

Identify the concept which will help the Human Resource Manager in identifying the types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives