No.

of pages - 14 (M)
MARKING SCHEME
MID-TERM EXAMINATION (2023-24)
CLASS : XII
SUBJECT : BUSINESS STUDIES (054)
Time Allowed : 3 hours Maximum Marks : 80

1. (b) Departmentalisation 1

2. (a) It implies change of attitude and transformation of thinking. 1

3. (d) Helps to identify opportunities and getting first mover advantages 1

4. (b) Planning is a mental exercise. 1

5. (c) Different principles of management are brought into effect differently by different

managers. 1

6. (d) Economic 1

7. (a) Orientation 1

8. (a) Vestibule training 1

9. (b) It restricts co-ordination in action. 1

10. (b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct

explanation of Assertion (A) 1

11. (d) Management 1

12. (c) Technological dimension 1

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13. (c) Both the statements are true 1

14. (b) Security Needs 1

15. (b) 2 1

16. (b) Statement II is true and I is false 1

17. (b) Method 1

18. (a) a-3, b-1, c-4, d-2 1

19. (b) The principles of management lack universal applicability 1

20. (b) Informal Organisation 1

21. 1. The ‘Staffing’ function of management is being performed by the firm. 1+2=3

2. Recruitment is the concept used by the firm to attract more workers to the firm. The

firm is planning to use the external source of recruitment i.e. Recommendation of

present employees to attract more workers to the firm.

22. Business environment is the sum total of all individuals, institutions and other forces like

customers, competitors, suppliers, distributors, industry trends, substitutes, regulations

government activities, social and cultural factors that are outside the control of the business

enterprise but may affect its performance, static and its performance.

Features of business environment are:

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 Dynamic nature : Business environment is dynamic as it keeps on changing. It is not

components are highly flexible, e.g. technological improvements, increase in competition,

etc.

Uncertainty : Business environment is uncertain as it is difficult to predict future

happenings when environment changes are taking place frequently. 1+2=3

OR

The court passed an order that all schools must have water purifier’ - Legal environment.

(i) ‘Society in general is more concerned about quality of life’ - Social Environment.

(ii) ‘Innovative techniques are being developed to manufacture water purifiers at

competitive rates.’ - Technological Environment

(iii) ‘Incomes are rising and children at home are also drinking purified water’. -

Economical Environment

23. 1. Planning is the function of management which is being discussed in the above lines.

Planning is deciding in advance what to do, how to do, when to do and who has to do

it, it involves setting objectives and developing an appropriate course of action to

achieve these objectives. 1+2=3

2. The production manager is trying to overcome the following limitations of planning:

 Rigidity

 Planning may not work in dynamic environment.

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24. Importance of controlling are as follows:

(i) Accomplishing organisational goals

(ii) Judging accuracy of standards

(iii) Making efficient use of resources

(or any other correct importance) 1x3=3

OR

Planning and controlling are inseparable, they are twins of management. A system of

control pre-supposes the existence of certain standards. These standards of performance

which serve as the basis of controlling are provided by planning. Once a plan becomes

operational controlling is necessary to monitor the progress, measure it, discover deviations

and initiate corrective measures to ensure that events conform to plans.

Planning is clearly a pre-requisite for controlling. Controlling cannot be accomplished

without planning. Without planning there is no pre-determined understanding of the desired

performance. Planning seeks consistent, integrated and articulated programmes while

controlling seeks to compel events to conform to plans. 3

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25. The features of management that do not establish it as a profession are:

 Restricted Entry: To become a professional one needs to pass an examination or

have an educational degree. However to make a career in management, there is no

need to have any professional qualification, or an educational degree etc.

 Statutory Body: Every profession is regulated by a legally recognized body like

ICAI for a chartered accountant. Management also have their association like All

India Management Association but management associations are not statutory bodies.

 Ethical Code of Conduct: A strict code of conduct exists in every profession. This

feature is not present in management as there is no specific code of conduct for

managers that legally binds them.

 Service Motive: The basic motive of a profession is to serve clients with dedication.

This feature is not present in management as it aims to accomplish organizational

goal which is generally profit maximization. 1x4=4

OR

Management refers to the process of getting things done with the aim of achieving

organizational goals effectively and efficiently.

The three features are as follows:

(i) Goal oriented process

(ii) All pervasive

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 (iii) Multidimensional

(iv) Group activity

(v) Continuous process

(vi) Dynamic function

(vii) Intangible force 1+3=4

26. 4

Basis Procedures Rules

1. Meaning Procedure is a guide for action in Rule is a code of conduct

a given situation. governing or restricting
flexibility or discretion.

2. Nature Procedures are specified in Rules do not place activities in

chronological order. chronological order.

3. Purpose The purpose of procedure is to The purpose of rule is to

facilitate and simplify the maintain discipline in an
operation and eliminate organization.
duplication.

4. Scope The scope of procedures is wide A rule has no procedure.

because it has its own rules and
regulations.

1x4=4

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 OR

It has been rightly said that defining organizational objectives is the first step in the process

of planning. Other steps in the process of planning a as follows:

(i) Establish planning premises

(ii) Identifying alternative courses of action

(iii) Evaluating Alternative Courses

(iv) Selecting an alternative

27. 1. Informal communication: “One of his colleagues sent a text message to his superior,

Mr. B. Chatterjee. Mr. B. Chatterjee immediately sent a text message to the

employees of the organisation requesting them to donate blood for Prateek.“ 2+2=4

Formal communication: “When the general manger came to know about it, he

ordered for fumigation in the company premises and cleaning surroundings.”

2. The features of informal communication are as follows:

The grapevine/informal communication spreads very fast and sometimes gets

distorted. It is very difficult to detect the source of such communication.

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28. (i) Making efficient use of resources : By exercising control. a manager seeks to reduce

wastage and spoilage of resources. Each activity is performed in accordance with pre-

determined standards and norms. This ensures that resources are used in the most

effective and efficient manner.

(ii) Improving employees motivation : A good control system ensures that employees

know well in advance what they are expected to do and what are the standards of

performance on the basis of which they will be appraised. Thus, it motivates them and

helps them to give better performance.

29. Principles of Scientific Management are :

1. Science, not rule of thumb

2. Harmony, not discord

3. Cooperation, not individualism

4. Development of each and every person to their greatest efficiency.

(Suitable explanation) 1x4=4

30. 1. Formal organisation is the type of organisation mentioned in the above paragraph.

Formal organisation refers to the organisation structure which is deliberately created

by the management to accomplish a particular task. It clearly defines the boundaries

of authority and responsibility and facilitates systematic coordination among the

various activities to y organisational goals. 2

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 2. Any two features 2

31. 1. (a) Unity of Direction

(b) Equity

(c) Espirit de corps

2. The principle of ‘order’ is violated if an organization does not provide the right place

for physical and human resources in an organization.

According to this principle there should be a place for everything and everyone and

every person or thing should be found in its/his allocated place. If this principle is

violated then the objectives will not be achieved efficiently and effectively. Since a

lot of time will be wasted in finding out the resources, a lot of wastage of energy and

delay in taking decisions or performing the work will take place.

OR

(i) Provide useful insight to managers

(ii) Optimum Utilization of Resources and effective administration

(iii) Scientific decisions 2x3=6

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32. Financial incentives are those incentives that are monetary benefits that are awarded to

employees for exemplary performance. Some type of financial incentives used in the

organisation are: 3+3=6

1. Salary and allowances

2. Performance-based incentives

3. Bonus

4. Stock Option

5. Profit Sharing

6. Retirement benefits

7. Fringe benefits

Non-financial Incentives:

(i) Status

(ii) Organisational Climate

(iii) Career Advancement Opportunity

(iv) Job Enrichment

(v) Employee Recognition Programmes

(vi) Job Security

(any three of each) 1x6=6

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 OR

The various leadership styles are:

 Autocratic or Authoritarian Leader: An autocratic leader gives orders and expects

others to obey them. The decision-making power is centralized. It is best applied in

situations where there is little time for group decision-making or where the leader is the

most intellectual member of the group.

Merits:

(a) No delay in decision making as the leader itself makes the decisions, and no

consultations and suggestions are taken by him.

(b) The work performed is satisfactory due to constant control of the leader.

Democratic or Participative Leader: A democratic leader gives order after

consulting the group and works out the policies with the acceptance of the group. It is

suitable in situations, when the members are skilled and competent.

Merits:

(a) There is a sense of cooperation between the leader and the employees, thus leading to

peace and harmony in the organization.

(b) There is efficiency in the work performed by the employees.

Laissez-Faire or Free Rein Leader: The followers are given a high degree of

independence to formulate their objectives and ways to achieve them. In this the

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 leader fully trusts his followers, and gives them complete autonomy to make

decisions.

Merits:

(a) The employees are highly motivated due to freedom to make decisions.

(b) It leads to overall development of the employees as a sense of self confidence is

inculcated in them to take decisions on their own.

33. 1. Divisional structure would suit the requirements of Hindustan limited. 3+3=6

Advantages:

i. All activities associated with one product can be easily integrated.

ii. Decision making is faster and effective.

iii. Performance of individual product can be easily assessed.

2. Yes. Marketing manager is responsible for the non-achievement of the target sales to

his superior. The principle related to this statement is absolute responsibility. It states

that authority can be delegated but responsibility cannot be delegated by manager.

The manager remains responsible and accountable to his own superior for the task

which he may have assigned to his subordinate.

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34. 1. The internal and external sources of recruitment used by Senor Enterprise Ltd. to fill

up the above stated vacancies are stated below: 3+3=6

 The vacancy for the post of Human Resource Manager has been filled up through

Promotion.

 The vacancy for the post of Marketing Head has been filled up through the

Placement Agencies and Management Consultants.

 The vacancy for the post of Assistant Manager has been filled up through Casual

Callers.

2. The relative merit of each of the internal and external sources of recruitment used by

Senor Enterprise Ltd. to fill up the above stated vacancies are stated below:

 Promotion: It boasts the morale of not only the employee who is promoted but

also of other employees as they get an assurance that their competence will also be

recognised in due course.

 Placement : Agencies and Management Consultants provide specialised

services to the organisations to recruit technical, professional and managerial

personnel at middle and top level.

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 Casual Callers as a source of recruitment reduces the cost of recruiting workforce

in comparison to other sources.

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