No.

of pages - 15 (E)
MARKING SCHEME
MID-TERM EXAMINATION (2023-24)
CLASS : XII
SUBJECT : BUSINESS STUDIES (054)
Time Allowed : 3 hours Maximum Marks : 80

1. (c) Decentralisation 1

2. (c) Differential Piece Wage System 1

3. (d) Social environment 1

4. (b) Planning may not work in a dynamic environment. 1

5. (c) A dynamic function 1

6. (d) Economic 1

7. (d) Campus recruitment 1

8. (c) Motivation is a complex process. 1

9. (a) Planning and controlling are separable twins of management. 1

10. (c) Assertion (A) is true but Reason (R) is False. 1

11. (a) Coordination 1

12. (a) Economic environment 1

13. (c) Both the statements are true. 1

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14. (c) Directing 1

15. (a) -2 1

16. (a) Statement I is true and Il is false 1

17. (c) Strategy 1

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

19. (d) Providing free education to the children of their employees 1

20. (a) Increases 1

21. 1. The step of staffing process which has not been performed properly is : 1+2=3

Estimation of manpower requirements. It is the first step in the staffing process and is

carried out with the help of workload analysis (assessment of the number and types of

human resources necessary for the performance of various jobs and accomplishment

of organisational objectives) and work force analysis (assessment of the number and

type available).

2. The next two stages immediately following the step Estimation of manpower

requirement are as follows :

(a) Recruitment

(b) Selection

(Suitable explanation)
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22. Importance of business environment : 1x3=3

1. Enables the firm to identify opportunities and getting the first mover advantage.

2. Helps the firm to identify threats and early warning signals.

3. Helps in tapping useful resources

4. Helps in coping with rapid changes

5. Helps in assisting in planning and policy formulation

6. Helps in improving performance

(Any three)

Features of Demonetization are:

1. Measure of tax administration : Black money holders had to declare the unaccounted

wealth and pay taxes at penalty rates

2. Measure to avoid tax evasion : Indicating the government will not tolerate tax evasion

3. Measure of channelizing savings into the financial system : By depositing money in

banks.

4. Create ‘cash-less’ or ‘cash-lite’ economy& for increasing financial savings and

reducing tax evasion. 1x3=3

(any three)

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23. 1. Planning is the function of management which is being discussed above. 1+2=3

2. The limitations of planning are described below:

(a) Planning may not work in a dynamic environment

(b) Planning reduces Creativity

(c) Planning involves huge costs

(d) Leads to rigidity

(e) Time consuming process

(f) Does not guarantee success

24. (i) Accomplishing organisational goals : The controlling function measures the

performance against the pre-determined standards and corrects deviations. This helps

in ensuring that organisation is moving on the right track to achieve the organisational

goals.

(ii) Judging accuracy of standards : A sound controlling system helps the management

to verify the standards set are accurate and objective. It keeps a careful check on the

changes, which are taking place in the organisation and helps in revising standards as

and when required. 1½ mark each (3)

OR

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 Controlling helps in achieving objectives and improving employees’ morale by following

ways:

Controlling helps in achieving objectives : By continuously measuring the performance in

the light of organisational goals brings out the deviations, if any and indicates the corrective

actions to be taken. Thus, controlling keeps the organisation on the right track.

Controlling improves employees morale : The implementation of controlling makes all

the employees to work with complete dedication because they are aware that their

performance will be evaluated and they will have a chance to build their reputation in the

organisation. The employees who show good performance are rewarded by giving them

promotions, cash prizes, etc. 1½ mark each (3)

25. Management is not a full-fledged profession. Three reasons in support of the above are:

(i) No restricted entry

(ii) No compulsion for managers to become members of professional association like

IMA.

(iii) No Statutory backing to follow code of conduct devised by AIMA. 1+3=4

OR

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 Management is a series of continuous inter-related functions. Each one of them performed

to guide and direct the efforts of others.

(i) Planning

(ii) Organising

(iii) Staffing

(iv) Directing

(v) Controlling 4

26. (a) Budget : A budget is a single-use plan developed specifically for a project of one

time or any such similar event. 2+2=4

(b) Method: It is mostly involved with technical and physical tasks. A method is a type

of standing plan which happens at regular intervals.

OR

(a) Procedure: A procedure is a set of routine steps defined in a chronological order to

be followed for the enforcement of a policy. It includes a detailed description of the

exact manner in which a task is to be performed.

(b) Rule: A rule refers to a standard or specific statement that gives information about

what is to be done and what is not to be done. Rules are the most basic plans and do

not allow for any flexibility. 2+2=4

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27. (a) The two communication barriers because of which “Jason’s Enterprises’ was not able

to achieve its target are: 2+2=4

 Organizational Barriers : The organization policy is not supportive of free flow of

communication. which disrupts the effectiveness of communication

 Personal Barriers: The type of personal barrier, which is discussed above, is the lack of

confidence of a superior in his subordinates. When the superior does not have confidence

in the subordinates, he is unwilling to involve them in discussions and other matters.

(b)

Type of organizational Barrier:

 Lack of Organizational Facilities: If the organization does not have required and

sufficient communication facilities such as telephone, stationary, typewriter etc. then also

communication can be obstructed and delayed.

Types of Personal Barrier

 Fear: If the subordinates fear voicing out their opinions to their superiors, and they are

unwilling to communicate the negative or unsatisfactory information to the superior

fearing the adverse impact it may have on their job, they try to hide or conceal the

information, or sometimes provide half or incomplete information.

(or any other correct barrier example)

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28. (a) Analysing Deviation: With the comparison of the actual performance with the set

standards, the deviations in performance are identified. For analyzing deviations, the

following methods can be used: 2+2=4

(i) Critical Point Control

(ii) Management by Exception

(b) Taking Corrective Action: In case deviations are beyond the acceptable range. It

becomes necessary to take corrective action. These corrective actions can be in terms

of revising the standards, providing training, settling the issues related to raw

material, machinery etc.

29. The principles of management are ‘mainly behavioural’ and ‘contingent in nature and

‘provides managers with useful insights into reality’ and ‘helps in thoughtful decision-

making’. This can be explained as follows:

 Mainly Behavioural: Principles of management explains the relationship between

human and physical resources but they influence human behaviour the most while

achieving organizational goals.

 Contingent: The applicability of principles of management depends on the given

situation and that point of time according to the needs in which that situation happens.

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  Provides managers with useful insights into reality: The principles of management are

formed after experimentation and practice. So they provide ideas, hints or guidelines to

cope up with similar business problems.

 Helps in thoughtful decision-making: Principles of management based on experiments,

observations and logic provide realistic, timely objective assessment of the given

situation.

30. Aman Chadha used the concept of ‘Delegation of Authority’. This is because Aman found

the level of work too much for him to handle alone, so he decided to hire more people. He

then allocated the responsibilities to Ishan and Vrinda so that Aman could concentrate on

the goals. As a result, he’s delegating work to his subordinates. 6

Importance of delegation :

(i) Effective management

(ii) Employee development

(iii) Motivation of employees

(iv) Facilitation of growth

(v) Basis of management hierarchy

(vi) Better coordination

(Any three)

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31. 1. Fatigue Study:

Fatigue study helps in determining the amount and frequency of rest intervals

required to complete a task without getting physically or mentally tired. The break

interval in between work helps workers to regain the stamina to work with the same

energy, and hence, rest is essential to perform the work with full capacity. This study

helps to find out the standard intervals of break that help a worker to regain its

energy.

Simplification and Standardisation of work:

Simplification of work aims at eliminating the unnecessary diversity in the products.

It helps in savings of cost of labor, machine and tools and increased turnover. There

are shoe sizes, cloth sizes such as M, L, XL, etc. this is done to reduce unnecessary

variations, and expenses.

Standardization refers to setting standards or benchmarks for every business activity,

such as standardization of work, process, etc. Standardization thrives to achieve

quality work, and quality products by establishing standards of performance for men

and machines. For example there are standards for gold (hallmark), agricultural

products (Agmark). industrial products (ISI) that assure that the product is a quality

product.

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 Time Study:

Time study is concerned with determining the standard time for performing a well

defined work. In this, standard time is fixed by using the average time taken to

perform the same activity several times. Time study also assists in the determination

of wages, drafting incentive schemes, manpower requirements etc. 2x3=6

OR

1. (1) Science, not rule of Thumb: There should be scientific study and analysis of

each element of a job in order to replace the old rule of thumb approach or hit

and miss method. We should be constantly experimenting to develop new

techniques which make the work much simpler, easier and quicker.

(2) Harmony, Not discord: It implies that there should be mental revolution on

part of managers and workers in order to respect each other’s role and

eliminate any class conflict to realize organizational objectives.

(3) Cooperation not individualism: It is an extension of the Principle of

Harmony not discord whereby constructive suggestions of workers should be

adopted and they should not go on strike as both management and workers

share responsibility and perform together. 2x3=6

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32. Communication 1+5=6

It is the process of exchange of information between two or more people with an aim to

create common understanding.

Elements of Communication Process

1. Sender: The person who conveys his thoughts or ideas.

2. Message: Content intended to be communicated.

3. Encoding: Process of converting message into communication.

4. Media: Path through which an encoded message is transmitted to the receiver.

5. Decoding: It is the process of converting the encoded message in a readable format.

6. Receiver: The person who receives a communication message from the sender.

7. Feedback: It refers to the information or suggestions provided by the receiver to the

sender in context to the communication or message he received.

8. Noise: The hindrances and obstruction to communication.

(any five elements)

OR

12 XII-BUSINESS STUDIES-E
 According to Maslow need hierarchy theory, employees need and wants can be categorised

hierarchy of five needs:

1. Basic Physiological Needs: It includes basic needs like hunger, thirst, shelter, sleep,

etc.

2. Safety/Security Needs: It includes needs of security and protection like job security,

etc.

3. Affiliation/Social/Belonging Needs: It includes needs like affection, sense of

belongingness, friendship, etc.

4. Esteem Needs: It includes needs like self respect autonomy, status, recognition, etc.

5. Self Actualization Needs: It includes needs that drive to realize a dream. 1+5=6

33. 1. The organisation structure that Neha can follow is the divisional organisation

structure. Under this system, there will be separate departments which will

take care of different products. There will be separate personnel for managing the

departments.

The divisional structure is recommended for the following reasons:

1. Each department will have a head, who will be accountable for the overall

performance of the department.

2. Decision-making will be quick as each department has a specialist to manage

it.
13 XII-BUSINESS STUDIES-E
 3. Having a divisional structure allows for adding more divisions without

impacting the functions of the organisation.

(any two)

2. The change that can be suggested in this situation is adopting some space for informal

structure by making changes in its current formal organisation structure.

An informal structure would offer the following benefits:

1. Information will move faster, as there is no definite channel of communication

that needs to be followed.

2. It will offer a sense of belongingness to the employees.

3. It supports the working of a formal organisation. 3+3=6

(any two)

34. (a) The following process of staffing should be followed by the company. 4+2=6

1. Estimating Manpower Requirements

2. Recruitment

3. Selection

4. Placement and orientation

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(b) The company should rely on recruitment sources that are external. The company is

going to set up a new plant in a new region therefore, candidates who are locals of

that area will be the best resources as they will be familiar with the environment and

working conditions of the local region, so it will be beneficial for the organisation.

15 XII-BUSINESS STUDIES-E