Business Studies-1997-Set I

Q 1 What is meant by management? (2 marks)
Ans. 1 Management may be defined as creating the internal environment of an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals.

Q 2 Explain, in brief, the principle of parity of authority and responsibility. (2 marks)
Ans. 2 Authority is the right to give orders to the subordinate, take decision on specified matters, use resources of the organisation and guide and regulate the behaviours of the subordinates.

Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organisation. The principle states that authority and responsibility should bear a logical relation to each other. Sufficient authority should be delegated to a subordinate to enable him to discharge his duties. If authority is less, the subordinate will not be able to perform his duties well. If he is given excessive authority he may misuse.

Authority ½, Responsibility ½ , Parity 1 (1/2 +1/2+1=2 marks)

Q 3 Give two functions of a supervisor. (2 marks)
Ans. 3 Any Two functions :
1. Planning the work.
2. Issuing orders.
3. Providing guidance or leadership.
4. Motivation.
5. Preserving Records.
6. Controlling output.
7. Grievance handling or liaison between management and workers.
8. Introducing new work methods.
9. Enforcing safety.
10. Linking pin.
11. Scheduling.
12. Reporting. (1×2=2)

Q 4 Explain briefly the meaning of “organisation structure”.
(3 marks)

Ans. 4 The process of organising leads to the creation of the structure of an organisation. The term organisation structure may be defined as a system of job positions, the roles assigned to them and the authority relationships among the various positions. The structure provides basis or frame work for managers and other employees for performing their respective functions. The structure also facilitates work flow in the organisation. If a chart is prepared, the organisational structure looks like a pyramid with a narrow top and broad bottom. (3 Marks)

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