CHAPTERS 1,2,3,4,8,12

Q1 The objective of the Marketing Department of ‘KOTEX Ltd.’ is to increase sales by 10 per cent by
offering discounts. But, the finance department may not approve of such discounts as it means loss of
revenue. These kinds of conflict arise in organizations because each department performing activities in
isolation from others and barriers between departments are becoming more rigid. Identify the point of
importance of coordination to which this case is related:
(a) Growth in size
(b) Functional differentiation
(c) Specialization
(d) None of these (1)

Q2 A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but
only after sufficient opportunity has been given to a subordinate for presenting her/his case. Identify the
principle of management highlighted above.
(a) Authority and Responsibility
(b) Discipline
(c) Equity
(d) Stability of Personnel (1)

Q3 WhatsApp was the first application for mobile chat. Afterwards, many other applications came but still
whatsapp is No.1 in mobile chat. Which importance of Business Environment is highlighted here.
(a) Helps in tapping resources
(b) Helps in policy making
(c) Identifying threat and getting warning signal
(d) Helps to identify opportunities and getting first mover advantages (1)

Q4 The composite plan which involves setting up of long term objective finding course of action and
allocation of resources is called
(a) Policy
(b) Strategy
(c) Programme
(d) Procedure (1)

Q5 An appeal for the compensation by a consumer can be made to the Supreme court.
(A) Where the value of goods along with compensation claimed exceed 1 crore
(B) When the appeal has been made at state Commission but the aggrieved party is not satisfied with the
decision of National commission.
(C) Where the aggrieved party is not satisfied with the decision of nation commission and the value of goods
along with the compensation claimed exceeds 1 crore.
(D) Where value of goods along with the compensation exceeds 1 crore irrespective of the appeal
made at any level.
(1)

Q6 Kansal Sweets is a renowned name for quality sweets since 1955. Somesh, the owner of Kansal
Sweets was worried as the sales had declined during the last three months. When he enquired from
the sales manager, the sales manager reported that there were some complaints about the quality of
sweets. Therefore, Somesh ordered for sample checking of sweets. Identify the step taken by Somesh
that is related to one of the functions of management.
(1)
Q7 Two big Bollywood movies were scheduled to be released on the same date. But, at the last moment
release of one movie had to be postponed due to opposition by a group of people because of some
unethical content in the movie. The loss suffered by movie postponed, provided opportunity for the
released movie, to earn maximum profits.
i. Explain the characteristic of business environment is highlighted in the given case?
ii. Identify and explain the dimension of business environment, which led to the postponement
of movie (3)

Q8 Identify and State:

(a) Aapka Apna Vehicles is a vehicle manufacturing company. The company has the same unit producing
both scooters and cars. This leads to confusion among the employees regarding the reporting as well as
differentiation of work. Which principle of Fayol is violated here?
(b) Twenty new employees have started their career in XYZ Ltd. The employees are new to the
environment of the organisation and have no idea about the demanding jobs. The management has
decided to give them three months of time to show their results. Which principle of Fayol is followed here?
(c) Aditi who is heading the campus recruitment program of the firm that she is working in, gets an
immediate order from the marketing head of the organisation. Mr. Rupesh asks her to hire only those
candidates who have two year’s experience in the field of marketing and offer them a higher package.
Moments later when she is about to enter the campus she gets another call from the HR head who asks
her to hire candidates with zero experience. He gives her the logic that such candidates would be expecting
lower packages in comparison to the candidates having experience in the industry. Which principle of Fayol
stands violated here?
(3)

Q9 ‘Work is Worship’ is a leading construction company. The organisation has grown from strength to
strength because of its innovative ideas and scientific approach of working. Ten years back the organisation
went through a revolution. All the operations and activities were properly noticed and the standard time
taken to perform them was noted. This took a few months and now the company could find out the
amount of workers required and the number of days to be involved in the various manufacturing
processes. A year later they moved to another level by considering the stress involved in the lives of the
workers. The amount and frequency of rest intervals in finishing a particular task were noted. This helped
the company in optimizing the rest intervals for the workers so that their outputs could be increased. After
six more months the company decided to reward the efficient workers. A different rate of wage payment
was decided for those workers who performed above the standard. The standard was decided. This led to
a revolutionary change in the perspective of the workers who now started giving their full efforts in order
to increase their wages.
Name the three types of the management concept highlighted above. Also identify the lines where these
types have been indicated. (3)

Q10  Jayant is working as Head Relationship Manager in the wealth management division of a private
sector bank. He has created an internal environment which is conducive to an effective and efficient
performance of his team of ten relationship management executives. A typical day at work in Jayant's life
consists of a series of interrelated and continuous functions. He decides the targets for his department
which are in line with the objectives of the organization as a whole. The future course of action for his
team members is laid out well in advance. The various resources required by the relationship managers like
an iPad with GPS system, account opening forms, brochures, details of account holders etc. are made
readily available to them. The executives are given sufficient authority to carry out the work assigned to
them. Jayant works in close coordination with the Human Resource Manager in order to ensure that he is
able to create and maintain a satisfactory and satisfied workforce in his department. Through constant
guidance and motivation, Jayant inspires them to realise their full potential. He offers them various types
of incentives from time to time keeping in view their diverse individual needs. More- over, he keeps a close
watch on their individual performances in order to ensure that they are in accordance with the standards
set and takes corrective actions whenever needed. In context of the above case:
(a)  Identify the concept being referred to in the following line, "He has created an internal environment
which is conducive to an effective and efficient performance of his team of ten relationship management
executives."
(b)  Identify and describe the various functions of the concept as identified in part (a) of the question by
quoting lines from the paragraph. (3)

Q11VLPS Hotels is a disciplined organisation. It has many branches. The organisation tries to apply
discipline in all its branches with equal effectiveness.
However it knows that the nature and location of different branches are different. They work under the
impact of different cultures and work environments. Even then discipline as an important management
principle is applied to all its branches —big or small, within the country or at foreign locations. Recently it
formed a special body of five members to do research on cross functional expertise. The organisation has
learnt through the experience of the competitors that understanding among various functional
departments is important for increasing the productivity of the organisation. So broadly it can be
understood how such body is going to affect the organisation through others’ experience. When it comes
to remuneration of employees the organisation adopts payment of different salaries for the same post. The
logic given by the organisation is that remuneration is based on situations and depends upon the
employee’s capacity and the expenses involved in a particular city.
Which natures of principles of management have been highlighted in the above case? Also explain any one
nature of principles apart from identified above (4)

Q12 Saagar Ltd. believes in coordination among departments and activities. The company relies heavily on
professional coordination. For this the company takes steps throughout the year.
Coordination is kept in mind by all the managers regardless of the level they are working at.
Throughout the year the various activities are synchronized without failure. Every department ensures that
within it every employee and operation is guided by the theme of proper coordination. Whenever an
employee takes an action he consults others, whenever needed, thus properly contributing to his team.
The process of coordination is just not limited to the employees. Even at the departmental level the
various departments use this binding force to create perfect harmony among them so that the
organisational goals can be fulfilled. All the coordination that occurs in the organisation is a result of proper
training and premeditated attempts by the company to get the best results possible. The above case
represents all the characteristics of coordination.
Identify the lines which represent them and also name the characteristics. (4)

Q13 India’s education system is under pressure to adapt to a rapidly changing world. To keep pace with a
global paradigm shift brought about by digitization, our education system is adopting digital resources and
methodologies to improve accessibility, quality, and scale. Nearly 89% of Gen Z students prioritize using
digital media like videos to enhance their education and 63% of their teachers believe in including more
technology focused interactive sessions to better prepare students. Not only organizations, but the
government is also investing heavily on bettering the education system be it with revamping the National
Education Policy, launching Skills India initiative, etc. Define business environment. Identify and explain the
various dimensions of business environment being referred to the in the above case. (4)
Q14 Peter Beverages Ltd. was planning to introduce a new Lemon flavoured drink in the market. The CEO
of the Co. prepared a detailed statement about this launch and a sales target of 25 lakh bottles per year
was set. To achieve this target, the sales manager decided to involve in aggressive advertising and
marketing of the products. The Co. guidelines say that a big dealer, purchasing goods of less than Rs.10
lakhs, will be given 2 months credit, whereas those purchasing goods of less than Rs. 10 lakhs will be given
1 month credit. The cashier will maintain payment record of the dealers known as ‘Performance Record’. In
case of delay, a proper warning will be issued to the dealer. If a dealer fails thrice to make the payment
within the stipulated time, the Co. will not involve in any transaction with that dealer. No sales shall be
made to the retailers. Identify the types of plans quoting the lines from the above para.
(4)
Q15 Sumit purchased as ISI marked washing machine of a famous brand ‘MG’ from TG Electronics Ltd. The
shopkeeper asked him to wait for two days for installation of the machine. His friend, Vivek was very fond
of experimenting with new electronics products. He told Sumit that there is no need to wait for the
company’s representative to install the machine and that he could do it. So, both of them installed
machine without following the manufacturer instructions. Initially the machine worked effectively and the
wash was good. But after two days the machine stared stopping in between the wash cycle. Sumit and
Vivek tried their best to start the machine but failed in their efforts. Sumit therefore approached TG
Electronics Ltd. which refused to provide any service on the plea that the installation of the machine was
not done by the company.
(a)  State the responsibility which Sumit had to fulfill as an aware consumer to get the services of the
company.
(b) Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility
identified in part (a). (4)

Q16 ‘Agile Ltd.’ is a well-known automobile manufacturing company in India. The company plans to
increase the sale of its sedan cars by 20% in the next quarter.   In order to achieve the desired
target, the marketing team of the company considers the impact of policy of the government
towards diesel vehicles and the level of competition in this segment of cars.   They explore the
various available option like offering more discount to dealers and customers, providing more
customer friendly finance options, lucky draws on test drives, increasing advertising, offering more
of free accessories on the purchase of the car, etc.  a thorough analysis of the various available
options is done keeping in view the relative viability of each option.   The company decides to
pursue the option of offering more discount to dealers and customers in order to boost the sale of
sedan cars.  In order to implement the plan, they determine the various discount packages and
communicate the same to their product dealers.  To make the prospective consumers aware about
the new available benefits, advertisements are made through various sources of print and
electronic media.  The market analysts of the company keep a close watch on the revenue from the
sedan cars to study the effect of new initiatives by the company to promote its sales.
In context of the above case:
1. Name the function of management described in the above paragraph.
2. Identify and explain the various steps involved in process the function of management as identified
in part (a) by quoting lines from the paragraph. (6)

Q17 Textile manufacturer Super textiles reported 43% fall in its profits in the fourth quarter ended 31
March 2017, which is beyond the acceptable range 25% decided by the company. This was due to higher
fuel cost and lower yield on account of demonetization. The company aims to implement cost saving
measures by restructuring contracts and its business process meet its targets in the future.
(a) Name the function of management discussed above.
(b) Also identify and explain the steps of the function of management discussed above. (6)