CLUE WORDS FOR

CASE STUDIES
XII BUSINESS STUDIES
ONE SHOT
MUST FOR CASE STUDIES
 Nature and Significance of Management

Management A Process to achieve goal effectively and efficiently

Intangible force
Organisational goal is not Achieved by change but it is Achieved through a
deliberate Process Called Management (Importance)
Effectively Completion of task or achievement of goal on time/ Achieving targets

Efficiently Reducing cost or optimum utilisation of resources or in cost effective

manner
 Features
Goal oriented Sales Target 20%, Market share 80%, Sales Revenue increased by 20%
Continuous Never ending, not one time task, ongoing process
Group activity Replace I with WE, involvement of all employees to manage and achieve
the goal.

Coordination Quality of management / Remove chaos and confusion/ eco satisfaction/

Synchronisation

Essence of Coordination/ unification, integration of all the activities and department

management
 Objectives of Management
Organisational Survival – Try to remain in market in cut throat competition by
objectives covering cost
Profit – Earning rate
Growth – Opening new branch, adding more line of product,
increasing scale of operations, all activities of expansion and
diversification.

Social Any task or activity of organisation which brings benefit to society in

objectives general e.g. Save environment, quality product, etc.
Personal Any task or activity of organisation for its employee’s welfare e.g.
objectives Training of employees, Competitive salary, opening creche and school
for children of employees, etc.
 Nature of Management
Management Use of logics, objectivity, cause effect relationship
as Science
Management Use of theoretical knowledge in personal way, regular practice,
as an Art Personalised Application and creativity
Management Specialised knowledge, use of code of conduct, restricted entry and
as a Profession professional associations
 Levels of Management
Top level All the designations who control overall organisation, Welfare of
organisation and maintaining image of company, More focus on
planning, policy making, arrange everything. e.g. CEO, CFO, President,
Vice President, General Manager, Director, Chairman, etc.

Middle level a) Department head, unit head, division head, plant head, branch head,
region head.
b) All managers except General Manager e.g. Production manager, Sales
manager, Purchase manager, etc.
c) Recruitment
Supervisory Connect with workers, actual workforce and ensure their safety, e.g.
level Supervisors, Superintendent.
First line manager
 Principles of Management
Characteristics of Principles of management
Universal Pervasive applied in business/ non-business, small/large, i.e. all organisation
Applicable
General Do not offer readymade solution
Guidelines
Evolutionar Not developed overnight, evolved in deep observation and repeated
y experiments
Flexibility It can be changed and modified
Behavioural Mould behaviour of employees. Principle are applied on employees to
in Nature motivate them to work towards achievement of group goal
Contingent Application of principle varies from situation to situation
 Authority and Responsibility
a) Match, Parity, equality and balance between authority and responsibility
b) Allocation of authority as per work assigned to individual
c) Giving authority matching to target or responsibility of employees
d) Authority must be equal to responsibility
 Discipline
a) Farming of rules and regulations
b) Following a code of conduct
c) Meeting of commitment/ promises by subordinates as well as by superior
d) Putting of penalties

Unity of Command
a) Orders from one boss only
b) More than one boss confuse the subordinates
 Unity of Direction
a) One unit/ head one plan
b) Efforts of all the employees must be directed towards one goal
c) Unification of efforts towards one direction
d) Base of coordination concept and Remove Overlapping of activities
Subordination of Individual interest to General Interest
a) Organisation interest is more important than personal interest of employees
b) while taking decision managers must give priority to benefit or organisation and not to
personal benefit, Employee should show exemplary behaviour
c) Try to achieve personal goal with organisation goal not by sacrificing organisational goal
d) Managers should not take unfair decisions by taking bribes or by giving benefits to their
relatives but decisions must be for the benefit of organisation
e) Employees must sacrifice their leaves or attending family functions if organisation needs
the presence of employee.
 Remuneration of Persons
a) Pay fair and adequate wages and salary so that he/she can maintain standard of living
b) with increase in profit and prosperity of organisation increase employees’ salaries and
wages also
c) Match with scientific principles of harmony not discord
d) Pay as per financial capacity of your firm
 Centralisation and Decentralisation
Key decisions should be taken by top management and routine decisions ca be taken
by managers working at middle and lower level

Principle of Scalar Chain

a) following line of authority or hierarchy of managers for communicating every
information
b) Report to your immediate boss only
 Principle of Equity
a) Fair, Kind and just treatment to employees
b) No discrimination with employees on the basis of cast, creed or gender
c) Same policies and rules and regulations for all the employees
d) No preference to male or a person of special religion for promotion
e) Contradicts techniques of differential piece wages system
 Stability of Tenure of Personal
a) No frequent transfer or termination
b) Giving a minimum time to employees to settle down
c) Providing job security

Initiative
a) Keep motivation, sprit of employee high
b) Encourage and welcome employees to give suggestion
c) Match with scientific principle of cooperation not individualism
d) Develop feeling of belongingness and motivate employees
 Esprit De Crops
a) Team spirit is more than Individual spirit
b) Work with Team Sprit and Unity is Strength
c) Follow principle of united we stand, divide we fall
d) This principle was used in movie Chak De india
e) Replace I with We

Science, not rule of thumb

a) Use of science for each and every element of management
b) There is only one best method to maximise efficiency and this method could be
developed by study and analysis not rule of thumb
c) Manager should not take decisions based on his intuitions, will or experience.
 Harmony, not discord
a) Management should share gain of the company if any with the workers
b) Workers should work hard and be willing to accept change for the good of the
company.
c) Interest of workers and management is same
d) Prosperity for employer cannot exist for long time unless it is accompanied by
prosperity for employees
e) Mental Revolution in management and workers should transform their thinking
f) Unification/harmony/integration between workers and management
g) Matching to principles of remuneration
 Cooperation not individualism
a) Extension of principle of harmony not discord
b) Welcome suggestion of employees
c) Reward employees for their suggestions
d) There should be open communication and no need even for trade union
e) Paternalistic style of management
f) Equal division of work and responsibility between workers and management.
g) Management should work side by side with workers
 Functional Foremanship
a) Appointment of specialised persons
b) Separation of planning and execution function
c) Based on elementary principles of division of work
d) Violate principle of unity of command

Standardisation and Simplification of work

a) Bring uniformity and Setting a quality standard from selection of Raw materials
b) Allows interchangeability
c) To reduce unnecessary line of product.
 Fatigue study
a) To set rest intervals
b) To set number, frequency and duration of rest intervals

Method study
a) Finding the best way of doing a job/ One best method
b) Selection of method which minimises the cost and maximise the quality and
satisfaction of customers
c) Devising the concept of assembly line

Time study
a) To find out standard time to perform a job
b) To set the standard target for workers
c) To determine number of workers to be employed
 Motion study
a) To differentiae between productive, non-productive and incidental movements
b) To eliminate unproductive movements
c) To design the equipment’s tools furniture which minimise unproductive movements

Differential Piece of Wage System

a) Strongest motivator for worker
b) To differentiate between efficient and inefficient workers
c) Violates principle of equity
MENTAL REVOLUTION
Change in the outlook of management and workers towards each other
 Business Environment

Specific/general Specific forces affects your business only. General affects all the
businesses
Interrelation All components of business environment are interdependent western
culture- Fast Food and Fitness- Yoga Gym
Uncertainty No one can predict business environment 100% accurately
Dynamic Condition in environment keeps on changing
Complex It is difficult to understand the impact of business environment
Relativity Same condition has different impart on different business, Different
country and states
 Economic Environment
a) Any change in taxes
b) Any change in interest rate
c) Any change in income/saving/investment
d) Any change in value of rupee
e) Any change in inflation rate
f) Stock market indices
g) GDP, Per capita income, etc. RBI is the key regulator of economic environment
 Social Environment
a) Change in taste, fashion
b) Change in social trend
c) Increase in number of working women
d) Customs and Traditions
e) Value followed
f) Celebration of festivals
g) Celebration of various festivals
h) Standard of living
i) Change in education/literacy rate
 Political Environment
a) Attitude of elected government representatives
b) General stability and peace in political condition of country
c) Policies change implemented by different government
d) Agenda of political parties
e) Political ideology and practices of ruling party
f) Relations of our country with foreign country
g) Constitution of the country
 Legal Environment
a) Any act, Statue, Legislature
b) Court judgement
c) administrative orders issued by government authorities
d) Decision taken by government at every level in centre, state or local
e) Making any order compulsory

Technological Environment
a) Change in method of production
b) New machinery, new equipment’s
c) New method of working for improvement
d) Scientific improvement and innovations
e) New techniques and methods of operating business
 Planning
FORWARD LOOKING FUNCTIONS
FORECASTING
NO OTHER FUNCTION CAN START WITHOUT IT
PRIMARY FUNCTION
INTELLECTUAL/ MENTAL EXERCISE
TIME AND COST
BASE FOR CONTROLLING
LIMITATIONS OF ONE OF THE FUNCTIONS OF MANAGEMENT
TYPES OF ONE OF THE FUNCTIONS OF MANAGEMENT
Planning does not guarantee success: Plan which brought success in past may
fail in future. Last year successful plan, may fail in present year.
Reduce creativity: No suggestion from employee they are just blind followers
 Plan
Single use plans One time use, every time a new plan is prepared
Standing plans Once made is used for many years.

Objectives (Neither single use nor standing)

a) End result, Objective or Goal in Numerical form (SMART)
c) All other activities are directed towards
d) Written statements of desired results to be achieved within a given time period
 Strategy (Neither single use nor standing)
a) Comprehensive plan
b) Includes
i) Determination of long-term objective
ii) Determining course of action
iii) Allocation of resources
iv) Whether to introduce a new product or not ?

Policies (standing plan)

a) Organisation way of solving problem
b) General guidelines e.g. (Admission process) (Job process) (No credit sale) (Credit
period)
 Procedure (standing plan)
a) Sequence of steps
b) Exact manner of doing a work
c) Chronological order
d) Step by step way of doing a work

Rules (standing plan)

a) Code of conduct for all/ Specific statements
b) Specify dos and don’ts
c) Penalty for not observing rules
 Methods (standing plan)
a) Formalised Way of doing a job
b) Bring uniformity, standardisation
c) Bring systematic working
d) Bring clarity in mind of workers how to do the work

Programmes (single use plan)

a) Involve- Objectives, Procedures, Policies and rules

Budget (single use plan)

a) Expressed in numerical terms
b) Controlling device from which deviation are taken care of
c) Provides standard or expected results
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 Organising
Organising Making departments and establishing
reporting relationship
Framework within which managerial and Organisational structure
operative task are performed

Number of subordinates that can be Span of management

effectively managed by a superior
 Functional Structure
a) Division of work as per functions
b) Specialisation in every function
c) Grouping of similar nature of jobs
d) Uniproduct or single or one type of product manufacturing company
Occupational specialisation

Divisional Structure
a) Division of work as per product
b) Grouping of jobs related to common products
c) Specialisation in each product
d) Multiproduct manufacturing companies
e) Organisations adding more lines of products
f) Organisations planning for expansion and diversification
 Formal organisation
a) Official organisation/ Focus on work
b) Follows scalar chain for communication
c) Main purpose is achieving organisational goal
d) Includes functional and divisional structure
e) creates intentionally by manager

Informal organisation
a) Gets created automatically / Network of social relationship
b) For psychological satisfaction and social needs of employees
c) Does not follow scalar chain
d) Includes all recreational activities
 Delegation
a) Sharing of authority and responsibility between superior/subordinates (immediate
subordinate)
b) Includes two level only
c) Main purpose is to reduce the burden or workload of manager
d) Routine activity
Decentralisation
a) Involvement of all levels
b) Autonomy/Belief in subordinates/systematic dispersal of authority to all level
b) Evenly distribution of authority at every level
c) Main purpose is involvement of employees, giving more responsibility to employees at
every level
d) Allows freedom of operations and independent decision making at every level.
 Staffing

Staffing
a) Human element
b) Function which makes sures your assets walk out and come back next day happily and
satisfied
c) Generic function of management
 Staffing and HRM
a) Staffing – it is used in small organisation
b) Human Resource Management – This concept is for large organisation having
separate department for performing staffing function
c) Staffing is the part of HRM
 Recruitment
a) Searching for prospective candidates
b) Inviting applications and Inducing people to apply for job
c) Positive process

Selection
a) Choosing the prospective candidates
b) Streamlining the attributes of different candidates
c) Negative process
 Apprenticeship programme
a) Suitable for acquiring higher level skill
b) Training under the guidance of a master worker or experienced guide or trainer or a
mentor
c) A uniform period of training
d) Suitable for plumbers, electricians, iron workers

Vertical movement of employees along the organisational structure- PROMOTION

Horizontal movement of employees along the organisational structure- TRANSFER
 Induction/ Orientation Training
a) Suitable for new appointments
b) Familiarising with rules, regulations and working style of an organisation
c) Removes hesitation of new employees and add confidence
d) Familiarising new employees along the organisational structure

Vestibule School
a) Training in dummy or duplicate model
b) Suitable for delicate, expensive and high-tech machinery / Sophisticated machinery
 Directing
Executive function
Human Element
Monetary incentives for Lower level employees
Non Monetary incentives of Top level employees
Influencing employees – Leadership
Grapevine - Informal communication
 Motivation
a) Creating will to do the work
b) When employees loose interest in job then this element is used
c) Improving initiative level of employees
d) Inducing people to perform best
e) psychological process
f) Arising need and desire in people
g) Stimulating employees
 Identify of Incentives
Recognition a) Congratulating employees
b) Displaying on notice board or newsletter
c) Giving award, trophy or certificate
d) Rewarding for good suggestion
e) Giving mementos, trophies, etc.
Co-Partnership/Stock Giving shares at lower than market price
option
Status Giving a special rank or position in the organisation
 Leadership
a) Influencing the behaviour of others
b) Maintaining good interpersonal relationship
c) Influencing employees to voluntarily perform, working with cooperation and
coordination
Leadership style
Autocratic/ Director no suggestion taken from followers, placing orders only
Authoritative
Democratic Taking suggestion from employees two way/ consultation with all
followers
Keep initiative level of employee high
Free rein Complete freedom to employees
No interference of superior in taking decision by subordinates
Only in case of emergency/ necessary
 Controlling

Controlling
a) Ensure work as per plan
b) Complete events to confirms to plan
c) Actual output not as per target due to lack of controlling
d) Comparison between actual performance with planned performance

SOME MISTAKES FOUND/ LOSS FOUND

THEN FIND THE REASON
THEN MAKE IT CORRECT
 Analysing deviations
Critical Giving more attention to activities and departments which are more
point important and critical whereas non-critical areas can be ignored
control Key reason areas, affects whole organisation, etc.
Manageme Ignoring the deviation within a permissible limit. A manager who
nt by tries to control everything may end up controlling nothing
exception Range of deviation should be allowed

Planning is perspective whereas controlling is evaluative

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