Cl

assXI
ICOMMERCE

BUSI
NESSSTUDI
ES

Q.1.“Successfulor
gani
zat
ionsdonotachievethei
rgoal
sbychancebutbyf
oll
owi
nga
deli
berateprocess‟
‟.I
dent
ifyt
heprocesshighl
i
ghtedhere.

Ans.Pr
ocesshi
ghl
i
ght
edi
nthest
atement
is‘
Management
’

Q.2.Di
sti
ngui
shbet
weenDel
egat
ionandDecent
ral
i
zat
ionont
hebasi
soff
reedom of
acti
on.

Ans.

Q.
3.Di
sti
ngui
shbet
weenAut
hor
it
yandResponsi
bil
i
tyont
hebasi
sofOr
igi
n.

Ans.

Q.4.Nametheprocessofst
imul
ati
ngandi
nspi
ri
ngpeopl
eatwor
ktoaccompl
i
sh
desir
edobj
ecti
ves.

Ans.
Thepr
ocessof
sti
mulat
ingandi
nspi
ri
ngpeopl
eat
wor
ktoaccompl
i
shdesi
redobj
ect
ivesi
s
knownasMoti
vat
ion

Q.
5.Namet
heon-
the-
jobmet
hodoft
rai
ningt
hati
susedt
ogi
vet
rai
ningt
opl
umber
s.

Ans.Appr
ent
iceshi
ppr
ogr
ammescanbeusedt
ogi
vet
rai
ningt
othepl
umber
s.

Q.
6.Def
ineManagment
.

Ans.Managementisthecoor
dinati
onofall
resour
cesthroughtheprocessofpl
anni
ng,
or
ganisi
ng,di
rect
ingandcont
roll
inginor
dertoatt
endstatedobject
ives.

Q.
7.Def
inepl
anni
ng.
Ans.Pl
anningi
schakingoutpl
anofact
ioni
.e.t
her
esul
tenv
isagedi
nthel
i
neofact
ion
tobefol
lowatt
hestagestogothr
oughandthemet
hodstouse.

Q.
8.Def
inedi
rect
ing.

Ans.Direct
ingi
stel
l
ingpeopl
eaboutt
odoandseei
ngt
hatt
heydoi
ttot
hebestoft
hei
r
abi
li
ty.

Q.9."Thesizeofasset
s,t
heprof
itabi
l
ityandcompeti
ti
venessareaffect
edbyone
ofthefi
nancial
decisi
ons‟
.St
atethedecisi
oninvol
vedwithref
erencetothegi
ven
st
atement .

Ans.Capi
tal
budget
ingdeci
sioni
nvol
vesal
l
ocat
ionof
fundst
odi
ff
erent
proj
ect
sor

asset
swi
thl
ongt
ermi
mpl
i
cat
ions.

Q.10.I
nanor ganizat
ion,employeesalwaysfeel
thattheyareunderenor
mous
unnecessar
ystress,asthemanagerdoesnotpr ovideanyinformati
onaboutf
utur
e
plansbutsi
mpl yi
nstr
uctsthem whatt odo.Healsodoesnotl i
stent
oanyofthe
suggesti
onsgivenbyt hesubordinat
es.

I
dent
if
ythet
ypeofl
eader
shi
pst
ylef
oll
owedbyt
hemanageri
ntheabov
esi
tuat
ion.

Ans.Aut
ocr
ati
cst
yleof
leader
shi
pisbei
ngf
oll
owedby
themanager
int
hegi
ven

si
tuat
ion.

Q.
11.Mr.Mohan,Financi
almanagerofABCLtd.
,haspr
epar
edtheannual
St
atementof
proposedexpendi
turetobepr
esentedi
ntheAnnual
General
Meet
ing.

I
dent
if
ythet
ypeofpl
anf
ormul
atedbyt
hef
inanci
almanager
.

Ans.Budget
ist
het
ypeof
planf
ormul
atedby
thef
inanci
almanager
.

Q.
12.St
ateanyt
hreepoi
ntsofi
mpor
tanceofdi
rect
ingf
unct
ionofmanagement
.

Ans.1.Di
rect
inghel
pst
oini
ti
ateact
ioni
ntheor
gani
zat
iont
owar
dsat
tai
nment
of
desi
redobj
ect
ives.

2.Di
rect
ingi
ntegr
atesempl
oyees’
eff
ort
sint
heor
gani
zat
ioni
nsuchaway
that
e

v
ery
indi
vi
dual
eff
ort
cont
ri
but
est
otheor
gani
sat
ional
per
for
mance.

3.Di
recti
nggui
desempl
oyeest
oful
l
yreal
i
zet
hei
rpot
ent
ial
andcapabi
l
iti
esby
mot
ivat
ingandef
fect
ive
l
eadershi
p

Q.
13.St
ateanyt
hreemeasur
est
oov
ercomet
hecommuni
cat
ionbar
ri
ers.
 Ans.1.Cl
ari
fyt
hei
deasbef
orecommuni
cat
ion.

2.Communi
cat
eaccor
dingt
otheneedsof
ther
ecei
ver
.

3.Consul
tot
her
sbef
orecommuni
cat
ing.

Q.14.Rahuldeci
dedt ostar
tadesertcool
ermanufactur
ingbusiness.Heset
sthe
tar
getofearning20%pr ofi
tonsalesi
nthefir
styear
.Hewasv erymuchconcer
ned
aboutthef
utureprospectsofthebusi
ness,whichwer
euncertain.

Forthis,
hegat
heredinfor
mationfr
om thepotenti
almarketandanal
yzedthatthe
demandf or
wall
mount edcooler
sisincreasi
ngdaybyday .Heusedthi
sinfor
mat i
on
asthebaseforfut
ureplanni
ng.Onthebasisofthegatheredinf
ormati
on,hecall
eda
meetingint
hefoll
owingweekt ofi
ndnewmet hodstoachievetheobj
ecti
ve.

a)I
dent
if
ythef
unct
ionofmanagementi
nvol
vedi
ntheabov
ecase.

b)Enumeratethenextt
wosteps,whichhav
ebeenfoll
owedbyRahult
hatar
erel
ated
t
otheprocessofoneoft
hef
unctionsofmanagement
.

Ans.Pl
anni
ng

a)(
i)
Ident
if
yingal
ter
nat
ivecour
sesof
act
ion.

b)(
ii
)Ev
aluat
ingal
ter
nat
ivecour
sesof
act
ion.

Q.
15.“Theov er
allobj
ecti
veofSEBIi stopr
otectt
heinter
estofi
nvestor
sandto
pr
omotethedevelopmentof,andregulatet
hesecuri
ti
esmarket.
”Inli
ghtoft
hegiv
en
st
atement,
stateanythreeobject
ivesofSEBI.

Ans.1.Toregulat
estock
exchangesandthesecur
it
iesi
ndust
ryt
opr
omot
ethei
ror
der
lyf
unct
ioni
ng.
2.Topr
otect
ther
ight
sandi
nterest
sof
inv
est
ors,
par
ti
cul
arl
yi
ndi
vi
dual
i
nvest
ors
andt
oguideandeducat
et hem.
3.Topreventtr
adingmalpr
acticesandachiev
eabalancebet
weensel
f-
regul
ati
onbythesecur
it
iesindustryandit
sstatut
oryregul
ati
on.

Q.
16.Expl
ainr
elat
ionbet
weenpl
anni
ngandcont
rol
l
ing.

Ans.1.Fi
nanci
almarketsmobil
isesav
ingsofhousehol
dsandchannel
i
zet
hem
i
ntot
hemostproducti
veuses.
2.It
faci
l
itat
espri
cedi
scov
ery
ofaf
inanci
alasset
thr
oughi
nter
act
ionbet
weensuppl
yand
demandof f
unds.
3.Fi
nanci
almar
ket
spr
ovi
del
i
qui
dit
ytof
inanci
alasset
s,sot
hatt
heycan
beeasi
l
yconv
ert
edi
ntocashwhenev
err
equi
red.

Q.
17.“
Del
egat
ioni
snotapr
ocessofabdi
cat
ion.
‟Comment
.

Ans.
Thegiv
enstatement
istr
ueasdel
egati
onhelpsamanagertoextendhi
sareaof
oper at
ionaswi
th
outi
thisact
ivi
ti
eswouldberest
ri
ctedt
oonlywhathehi
msel fcando.Howev er,del
egation
doesnotmeanabdi cati
on;t
hemanger shal
lsti
l
lbeaccountablef
ort
heassignedtask

Q.18.Mr .Rohitisi nt
ot ranspor
tbusiness.Hi
s buses are hi
red byschoolsfor
tr
ansport
ati
onofst udents.Heiswill
i
ngtoexpandanddi v
ersif
yhisbusi
nesstointer
-
stat
et r
ansport
ati
onpur poses.Enumerateanysixfactor
st hatwil
laffecthi
sf i
xed
capit
alr
equir
ements.

Ans.1.Scal
eof
oper
ati
ons

2.Fi
nanci
ngal
ter
nat
ives

3.Gr
owt
hpr
ospect
s

4.Nat
ureof
Busi
ness

5.Di
ver
sif
icat
ion

6.Lev
elof
Col
l
abor
ati
on

Q.19. TheGov er
nmentofIndi
ahasrecentl
ycomeupwi thanamendmentt oSecti
on
6of thePay mentofWagesAct1936,toall
owempl oyer
sofcertainindustr
iesto
makepay mentt hr
oughvari
ousel
ectr
onicsmodesofpay ments.Theamendment
wil
l beappl i
cablet
oallt
hepubli
csectorundert
akingsf
orwagesdi sbursement
usinge- paymentopti
ons.Thi
sisanot
hermi l
estoneint
hedi
rectiont ofur
therpush
tocashl esseconomy.

Ident
if
yandexpl
ainanyt
wodi
mensi
onsofbusi
nessenv
ironmentwhi
chr
elat
etot
he
abovementi
onedcase.

Ans.1.Poli
tical
Env i
ronment:
Poli
tical
envir
onmentincludespol
i
tical condit
ions
such as gener al st abil
i
ty and peace i n t he count r
y and
specifi
cat
ti
tudesthat
elect
edgover
nment r
epresent
ativ
eshold t
owar ds
business.

2.LegalEnv i
ronment:Legalenvi
ronmentincludesvari
ousl egi
slat
ionspassedby
t
heGov ernmentadmi ni
str
ativ
eor dersi
ssuedbygov ernmentaut hor
iti
es,cour
t
j
udgment s as well as the deci
sions r
endered by
v
ariouscommi ssi
onsandagenciesat
ever
ylevel
oft
hegovernment
cent
re,st
ateorlocal
.Iti
simper
ati
vef
ort
hemanagementofev
eryent
erpr
iset
oobey
the
l
awof t
heland.

Q.
20.St
ateanyf
ourdi
ff
erencesbet
weenPr
imar
ymar
ketandSecondar
y
Mar
ket
.

Ans.

Q.21.
Dif
fer
ent
iat
ebet
weenCapi
tal
Mar
ketandMoneyMar
ketont
hebasi
s
of:

(
a)Li
qui
dit
y(b)Dur
ati
on(c)Expect
edRet
urn(
d)Saf
ety

Ans.
Q.
22.
Whati
sthei
mpor
tanceofst
aff
ingf
unct
ioni
ntoday
'senv
ironment
?

Ans.1.I
thel
pst
ofi
ndandsel
ectt
her
ightper
sonnel
fort
hev
acantposi
ti
on.

2.Ensur
escont
inuoussur
viv
alandgr
owt
hoft
heor
gani
sat
ion.

3.Throughpropermanpowerpl
anni
ngi
tensur
esopt
imum ut
il
isat
ionofhuman
resources.

4.ETAmotiv
atesempl
oyeesandgi
vest
hem j
obsat
isf
act
iont
hroughf
aircompensat
ion
andrewar
ds.

Q.
23.Expl
ainbr
ief
lyt
hechar
act
eri
sti
csofaFi
nanci
alMar
ket
.

Ans.1.I
texi
stswher
everaf
inanci
alt
ransact
ionoccur
s.

2.I
tmobi
l
izesf
undsbet
weensav
ersandt
hei
nvest
ors.

3.I
tal
l
ocat
esf
undsi
ntot
hei
rmostpr
oduct
ivei
nvest
mentoppor
tuni
ti
es.

4.I
tcr
eat
esorexchangesf
inanci
alasset
s.

Q.
24.Expl
ainbr
ief
lyt
hef
unct
ionsofFi
nanci
alMar
ket
.
Ans.1.Mobi
l
izessav
ingandchannel
i
sest
hem i
ntot
hemostpr
oduct
iveuses.

2.Faci
l
itat
espr
iceDi
scov
ery
.

3.Pr
ovi
desl
i
qui
dit
ytof
inanci
alasset
s.

4.Reducest
hecostoft
ransact
ions.

Q.25.Kav i
tarecentlyjoi
nedast hehumanr esourcedi rectorofAr j
unVi dyamandi r
School,aseni
orsecondar yeducat i
onali
nsti
tute.Sheobser vedt hatt heschool had
anexper i
encedmedi calt
eam oni tspayrol
l.Theyr egularl
yof feredusef ul
suggestionswhichwer eneitherappreci
atednorr ewar dedbyt heschool aut hori
ti
es.
Insteadtheschool outsourcedt hetaskofmai ntenanceofheal thr ecordsoft he
studentsandpai dthem agoodcompensat i
onf ortheirservices.Becauseoft hi
s,the
existi
ngmedi calteam fel
tdi sheart
enedandst oppedgi vi
ngusef ulsuggestion.
a)Identi
fythecommuni cationbar r
ierdi
scussedabov e.

b)St
atet
hecat
egor
yoft
hiscommuni
cat
ionbar
ri
er.

c)Expl
ainanyot
hert
wocommuni
cat
ionbar
ri
ersoft
hesamecat
egor
y.

Ans.1.Thecommuni
cat
ionbar
ri
erdi
scussedi
ntheabov
epar
agr
aphi
s
Lackof
proper
incent
ives.

2.I
ti
sat
ypeof
Per
sonal
bar
ri
er.

3.Ot
her
communi
cat
ionbar
ri
ersof
thesamecat
egor
yar
e:

a.Fear
ofchal
l
enget
oaut
hor
it
y

b.Lackof
conf
idenceof
super
ior
onhi
ssubor
dinat
es

c.Unwi
l
li
ngnesst
ocommuni
cat
e.

Q.26.SheryaLtd.i
sal argecredit
-worthycompanymanuf actur
ingaut omobil
esf or
theIndianmarket.I
tnowwant stocatertotheothermarketanddeci dedtoinvesti n
newmachi nes.Forthi
s,itr
equireslong-t
ermf i
nance.I
tdecidestor ai
sefundsby
i
ssuingequityshares.Theissueofequi tyshar
esinvol
veshugef loatati
oncost.To
meett heexpensesoff l
oatat
ioncostt hecompanydecidest otapthemoneymar ket.

a)Nameanddi
scusst
hemoneymar
keti
nst
rumentt
hecompanycanusef
ort
he
abov
epur
pose.

b)Whati
sthedur
ati
onf
orwhi
cht
hecompanycangetf
undst
hrought
hisi
nst
rument
?
 c)St
ateanyot
herpur
posef
orwhi
cht
hisi
nst
rumentcanbeused.

Ans.a)
Commercial
paper–i
ti
sashor
tter
munsecuredpr
omissory
not
e,negot
iabl
eandt
ra
nsf
erabl
ebyendor
sementanddel
iver
ywi
thafi
xedmatur
it
yper
iod.

b)15day
stooney
ear
.

c)I
ti
susedt
opr
ovi
deshor
tter
mfundsf
orseasonal
andwor
kingcapi
tal
needsof
thebusi
ness.

Q.
27.Expl
ainbr
ief
lyt
heobj
ect
ivesofFi
nanci
alManagement
.

Ans.1.Av
ail
abi
l
ityofsuf
fi
cientf
undsatr
easonabl
ecost
.

2.Depl
oyorut
il
izef
undsi
namannert
hatt
her
etur
nsexceedt
hecost
.

3.Ensur
eenoughsecur
it
yagai
nstf
undspr
ocur
edbycr
eat
ingr
eser
ves,
rei
nvest
ing
prof
it
setc.
.

4.Ensur
ethatt
her
ear
enoI
dlef
undsi
ntheent
erpr
ise.

5.Ev
aluat
eal
lpossi
bleal
ter
nat
ivesbef
oret
aki
ngt
hef
inanci
aldeci
sion.

Q.
28.St
ateanyfi
vefunct
ionsper
for
medbyt
hemanagerwhoi
swor
kingatt
hemi
ddl
e
l
evel
management.

Ans.Fol
l
owi
ngar
ethef
unct
ionsper
for
medby
themi
ddl
elev
elmanager
:-

1.i
nter
pret
thepol
i
ciesf
ramedby
topmanagement

2.ensur
ethat
thei
rdepar
tment
hast
henecessar
yper
sonnel
,

3.assi
gnnecessar
ydut
iesandr
esponsi
bil
i
tiest
othem,

4.mot
ivat
ethemt
oachi
evedesi
redobj
ect
ives,

5.Cooper
atewi
thot
her
depar
tment
sfor
smoot
hfunct
ioni
ngof
theor
gani
zat
ion.

Q.
29.St
ateanyf
ivechar
act
eri
sti
csofCoor
dinat
ion.

Ans.Char
act
eri
sti
csof
Coor
dinat
ion:

1.Coor
dinat
ionuni
fi
esunr
elat
edor
div
ersei
nter
est
sint
opur
posef
ulwor
kact
ivi
ty.

2. Thepurposeof
coordi
nat
ioni
stosecur
eunityof
acti
onint
hereal
izat
ionofa common
purpose. I t acts as t he bi nding f or
ce bet ween depar t
ment
s
andensurest
hat
all
acti
oni
saimedatachi
evingthegoal
soft
heorgani
sation.
 3.Coordi
nati
onisnotaone-
ti
mefunct
ionbutaconti
nuouspr
ocess.
It
begi
nsat
thepl
anni
ngst
ageandcont
inuest
il
lco
ntr
oll
i
ng.

4.Coordi
nationisrequir
edatalll
evelsofmanagementduet o
thei
nterdependentnatur
eof
acti
vit
iesofvari
ousdepar
tment
s.I
ti
ntegr
atest
heef
for
t
sofdi
fferent
departmentsanddif
ferent
level
s.

5.Coor
dinat
ioni
sther
esponsi
bil
i
tyof
all
manager
sat
thet
op,
middl
eandl
owerl
evel
.

Q.30.RudrakshiLtd.i
sengagedinmanufactur
inghighendluxur
ypens.Thet arget
product
ionis700uni t
sdaily
.Thecompanyhadbeensuccessf ul
lyatt
aini
ngthistarget
unti
lthr
eemont hsago.Ov erthel
astfewmonth,ithasbeenobservedthatdail
y
product
ionsv ar
iesbetween600-650uni
ts.

a)Identi
fyt
hef
unct
ionofmanagement
,whi
chhasbeenhi
ghl
i
ght
edi
ntheabov
e
context
.

b)Di
scusst
hef
ir
stf
ourst
epsi
nvol
vedi
nthepr
ocessoft
hef
unct
ioni
dent
if
iedabov
e.

Ans.

(
i)
Cont
rol
l
ing

(
ii
)Fol
l
owi
ngar
ethef
ir
stf
our
stepsi
nvol
vedi
nthecont
rol
l
ingpr
ocess:
-

(
a)Set
ti
ngPer
for
manceSt
andar
ds:
Thef
ir
stst
epi
nthecont
rol
l
ingpr
ocessi
s
set
ti
ngupof
per
for
mancest
andar
ds.
Standar
dsar
ethecr
it
eri
aagai
nst
whi
chact
ual
per
for
mancewoul
dbemeasur
ed.
Thus,
standar
dsser
veas
benchmar
kst
owar
dswhi
chanor
gani
sat
ionst
ri
vest
owor
k.St
andar
dscan
beset
inbot
hquant
it
ati
veaswel
l
asqual
i
tat
ivet
erms.
(
b)Measur
ement
ofAct
ual
Per
for
mance:
Onceper
for
mancest
andar
dsar
eset
,
t
henext
stepi
smeasur
ement
ofact
ual
per
for
mance.
Per
for
manceshoul
d
bemeasur
edi
nanobj
ect
iveandr
eli
abl
emanner
.Ther
ear
esev
eral
t
echni
quesf
ormeasur
ement
ofper
for
mance.
Thesei
ncl
udeper
sonal
obser
vat
ion,
sampl
echecki
ng,
per
for
mancer
epor
ts,
etc.
Asf
araspossi
ble,
per
for
manceshoul
dbemeasur
edi
nthesameuni
tsi
nwhi
chst
andar
dsar
e
 set
ast
hiswoul
dmaket
hei
rcompar
isoneasi
er.

(
c)Compar
ingAct
ualPer
for
mancewi
thSt
andar
ds:Thi
sst
epi
nvol
ves

compar
isonof
act
ual
per
for
mancewi
tht
hest
andar
d.Suchcompar
isonwi
l
l
r
eveal
thedev
iat
ionbet
weenact
ual
anddesi
redr
esul
ts.
Compar
ison
becomeseasi
erwhenst
andar
dsar
eset
inquant
it
ati
vet
erms.

(
d)Anal
ysi
ngDev
iat
ions:
Somedev
iat
ioni
nper
for
mancecanbeexpect
edi
nal
l

act
ivi
ti
es.
It
is,
ther
efor
e,i
mpor
tant
todet
ermi
net
heaccept
abl
erangeof
dev
iat
ions.
Also,
dev
iat
ionsi
nkey
areasof
busi
nessneedt
obeat
tended
mor
eur
gent
lyascompar
edt
odev
iat
ionsi
ncer
tai
ninsi
gni
fi
cant
areas.

Q.
31.Di
ff
erent
iat
ebet
weenFunct
ional
str
uct
ureandDi
vi
sional
str
uct
ure.

Ans.
 Q.
32.Di
sti
ngui
shbet
weenFor
mal
organi
zat
ionandI
nfor
mal
organi
zat
ion.

Ans.

Q.33.Apublictr
anspor
tcorporationhashired2000busesf ort
hedifferentroutesfor
thepassengersofmetr
opolit
anci ty
.Inordertof i
l
l v
acancies,i
tadverti
sedi nthe
newspaperandnumberofappl icantsappli
edf orthesame.Thecompanyhast onow
undert
aketheprocessofselecti
ont oident
ifyandsel ectt
hebest.Explainthefirstsi
x
stepsi
nvolvedinthepr
ocess.

Ans.Foll
owingar
ethestepsi
nvol
vedint
heselecti
onprocess:
-
1.
Prelimi
naryScreeni
ng:
Preli
minaryscr
eeninghel
psthemanagerel
iminateunqual
if
iedor
unfi
tjobseekersbasedont heinf
ormationsuppli
edintheappli
cati
onforms.Prel
iminar
y
i
ntervi
ewshelprejectmi
sfi
tsfor
reasons,
whi chdi
dnotappear
int
heappli
cati
onfor
ms.

2.Selecti
onTests:Anempl oymenttestisamechani sm (
eit
herapaperandpenci
l
test or an exerci
se) that at
tempts t
o measure
cert
aincharact
eri
sticsofi
ndiv i
dual
s.Thesecharact
eri
sti
csr
angefr
omapti
tudes,
sucha
smanualdexteri
ty,
toint
ell
igencetopersonali
ty

3.EmploymentInterv
iew:Inter
view isaf ormal,in-depthconversat
ionconduct ed
toev
aluat
e theappl
icant
’ssuit
abili
ty f
orthejob.
Therol
eoft
heinter
vieweri
stoseeki
nformationandthatof
thei
nterv
iewee i st o
provi
de t he same. Though, i n pr esent t i
mes, t heint
erviewee
 al
soseeksi
nfor
mat
ionf
rom i
nter
viewer
.

4. ReferenceandBackgr oundChecks:Manyemployersrequestnames, addr esses,

and t elephone number s of r ef
erences f orthepurpose of v eri
fyi
ng
i
nformat ionand,gai ni
ngaddi ti
onalinfor
mationonanappl icant
.Pr evi
ous
empl oyers, known per sons, t
eachers
anduniver si
typr
ofessorscanact
asref
erences.

5.Sel
ecti
on Decisi
on:The finaldeci si
on has to be made from amongt he
candidateswhopassthet est
s,inter
viewsandrefer
encechecks.Theviews
oftheconcernedmanagerwi l
lbegener all
yconsi
deredi
nthefi
nalselecti
on
because it is he/she who i
s r
esponsible f
or
theperf
ormanceof
thenewempl oyee.

6.Medical
Examinati
on:Af
tert
heselect
iondeci
sionandbefor
ethej
oboff
eri
smade,
the
candi
dateisrequi
redtoundergoamedi calf
it
nesst est
.Thejoboff
eri
sgiv
ent
othe
candi
datebeingdeclar
edfit
after
themedical
exami nati
on.

Q.34.FlavoursLt d.wasengagedi nthebusi

nessofmaki nghandmadechocol ates.
Latel
y,thebusinesswasexpandi ngduetogoodquali
tyandreasonablepri
ces.Asthe
demandwasi ncreasi
ng,FlavoursLt
d.deci
dedtoexplorebakeryproduct
saswel l
.In
ordertomakebaker yproductsthecompanydir
ect
edi t
swor kf
orcetowor kover
ti
me
butthi
sr esul
tedinmul t
ipl
epr obl
ems.

Duetoi ncreasedpressuretheef f
iciencydecli
nedandtheworkershadtot akeorders
fr
om mor ethanonesuper ior
.Wor kerswereov er
bur
denedandt hei
rhealt
hwasal so
aff
ected.Gr aduall
ythequal i
tyoft heproductsbegi
nstodeclineandmar ketshare
al
sowentdown.Thecompanyr ealizedthattheyhadimpl
ement edchanges without
wait
ingf ortherequir
edinfr
astruct
ur e.

I
denti
fyandexpl
aint
hepr
inci
ples/
techni
queofTay
lor
/Fay
olr
efer
redt
oint
heabov
e
par
a.

Ans.( i
)UNITY OF COMMAND -Accor di
ng to Fayolt
hereshoul d beone and
onlyonebossf oreveryindi
vidualempl oyee.I
fanemployeegetsordersf
rom t wo
superior
s at t he same t i
me t he pr i
ncipl
e of uni ty of
commandi sviolat
ed.Thepri
ncipleofunit
yofcommandstat
esthateachpart
icipant
i
n a f ormal or gani
sation shoul d r ecei
ve or der
s f rom and
beresponsibl
etoonlyonesuperior.
Fayolgaveal
otof
import
ancetothi
sprinciple.

(
ii
)FATI GUESTUDY-A per soni sboundt of eelti
redphy si
callyandment al
l
yif
she/he does not r estwhi le wor ki
ng.The r esti nter
vals willhel
p one
toregai
nstaminaandworkagainwiththesamecapacit
y.Thiswi
ll
result
ini
ncr
eased
producti
vit
y. Fati
gue st
udy seeks to deter
mine t
he
amount andfr
equencyofr
estinterv
alsincompleti
ngatask.