Xii BS - CH 1 Case Study
Xii BS - CH 1 Case Study
Q. 2. Volvo Ltd’s target is to produce 10000 shirts per month at a cost of Rs. 100/- per
shirt. The Production Manager achieved this target at a cost of Rs. 90/- per shirt. Do
you think the ‘Production Manager’ is effective? Give one reason in support of your
answer.
Q. 3. Yash Ltd. is facing a lot of problems these days. It manufactures electronic goods
like washing machines, microwave ovens, refrigeration and air-conditioners. The
company’s margins are under pressure and the profits and market marketing
department blames production department for producing goods, which are not of
good quality to meet customers’ expectations. The finance department blames both
production and marketing departments for declining return on investment and bad
marketing.
a) What quality of management do you think the company is lacking? Justify your
answer.
b) State the importance of the concept identified in (a).
Q. 4. Aman, Ahmad and Ally are partners in a firm engaged in the distribution of dairy
products in Maharashtra state. Aman is a holder of Senior Secondary School Certificate
from Central Board of Secondary Education with Business Studies as one of his elective
subjects. Ahmad had done his post graduation in History and Ally in dairy
farming. One day there was a serious discussion between Ahmad and Ally regarding
the nature of management. Ahmad argued that management was a profession
whereas Ally argued against it saying that the legal and medical professions are the
only professions because they fulfill all the conditions of profession.
Aman on the basis of his knowledge of business studies explained the nature of
management as a profession to Ahmad and Ally. Explain, how Aman would have
satisfied both Ahmad and Ally.
Q. 5. To meet the objectives of the firm, the management of Bhavya Ltd. offers
employment to physically challenged persons. Identify the organizational objective it is
trying to achieve. Give reason in support of your answer
Q. 6. B Ltd. wants to modify its existing product, CD players in the market due to
decreasing sales. What decisions/steps should each level of management take to give
effort to these decisions?
Q. 7. Sonali is the manager of a large company manufacturing garments for kids. She
plans her winter collection in the month of August itself. Then, she ensures that there
is adequate workforce. She continuously monitors whether production is proceeding
according to plans. She asks the marketing department to prepare their promotional
and advertising campaigns also.
a) Identify and explain the concept of management explained in the above para.
b) What characteristic feature does the above para highlight? State.
Is the management of H. Tech Ltd. fulfilling its objectives? Justify your answer by
giving reasons.
At what levels of management are MR. Gauranga, Mr. Nityanand and Mr. Sanatan
working in Govinda Ltd.? justify your answer. (3 marks)
Q. 10. The management of Vrinda Ltd. strongly believes that the members of an
organization should work towards fulfilling the common organizational goals. This
requires teamwork and integration of efforts of all individuals, departments and
specialists. This is because all the individuals and departments depend on each other
for information and resources to perform their respective activities. Managers need to
reconcile differences in approach, timing, effort or interest. At the same time it should
enable all its members to grow and develop. Thus, there is a need to harmonize
individual goals and organizational goals.
Q. 11. Sanjana is the branch manager of ABC Handicrafts Pvt. The company’s objective
is to promote the sales of Indian handloom and handicraft products. Its sells fabrics,
furnishings, ready-mades and household items are made out of traditional Indian
fabrics. Sanjana decides quantities, variety, colour and texture of all the above items
and then allocates resources for their purchase form different suppliers. She appoints a
team of designers and craftspeople in the company, who developed some prints for
bed covers in bright colour on silk. Although they looked very impressive, they were
more expensive than they had planned to sell. Average customer could not afford to
buy it. Praising their effort, Sanjaja suggested that they should keep the silk bed covers
for special occasions like Diwali and Christmas and offer the cotton bed covers on a
regular basis to keep costs under control.
Identify the functions of management which Sanjaja performs by quoting the lines the
above para. (5 marks)
Q. 12. XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote
village as there was no reliable supply of electricity in rural areas. The revenue earned
by the company was sufficient to cover the costs and the risks. The demand of lanterns
was increasing day by day, so the company decided to increase production to generate
higher sales. For this they decided to employ people from the nearby villages as very
few job opportunities were available in that area. The company also decided to open
schools and crèches for the children of its employees.
Q. 13. Nishtha is the marketing manager of a company selling laptops. She plans the
target sale of 2000 laptops per month. She allocates necessary resources to carry out
the plan. She has six salesmen working under her. She works with them, guiding and
motivating them to achieve the target sales. At the end of the month, after comparison
of actual sales with the target sales she found that actual sales exceeded the target
sales. She rewards the efficient employees to motivate them.
Q. 14. Sooraj works as a salesman in a company selling pet accessories and food. He
has been given a target of selling 1200 units of the food packets in a month by offering
a maximum of 10% discount to his customers. In order to meet his monthly sales
target, on the last two days of the months, he offers 15% discount to his customers.
In the context of the above case: Is Sooraj effective in his work? Explain by giving a
suitable reason in support of your answer.
Q. 15. Sujata works as a designer in n export house. As per the terms of an order
received by the export house, she has to get 100 units of denim jackets made in 15
days @ Rs. 2000 per jacket. She is able to complete her target production in 20 days
because in order to complete ithe order in 15 days she would have made the workers
work over time. As a result, the cost of production per jacket may have increased by
Rs. 100.
In the context of the above case: Is Sujata efficient in her work? Explain by giving a
suitable reason in support of your answer.
Q. 16. Anju and Manju are good friends. Considering the cast that the activities
involved in managing an enterprise are common to all organizations, after completing
their masters in business management, both of them take up a job at managerial level
in different organizations as per their individual areas of interest. Anju tales up a
marketing job in a retail company and strives to increase sales where as Manju joins an
NGO and works diligently to realize its objective related to providing employment to
specially abled persons. Both of them have to perform a series of continuous,
composite, but separate functions. On some days, Anju may spend more time in
planning a future display layout and on another day, she may spend time in sorting out
an employee’s problem. Both Anju and Manju make conscious efforts to build a
feeling of team spirit and coordination among diverse individuals with different needs
who work under them. The effect of their management is noticeable in their respective
departments as the targets are met according to plans, employees are happy and
satisfied, and there is orderliness in its functioning rather than chaos.
Q. 17. Real Alliance Ltd. is a well-known cement company in India. It is able to earn
adequate revenues to cover costs. Its capital base, number of employees and
production turnover has increased manifolds over the years. The rate of profitability of
the business is also creditable. The employees of the company are happy and satisfied
with their remuneration, working conditions, promotion policy etc. as a part of its
moral obligation, the company has taken many initiatives for providing employment to
specially abled persons and promoting literacy in the villages adopted by it.
Q. 18. Esha works as the cost and risk management head of a company in power
sector. As a result of her excellent managerial competence, the company is able to
reduce costs and increase productivity. The company belongs to infrastructure sector,
where is regular amendments are made in the government regulations and
policies. She holds regular meetings to ensure that people in her department are not
only aware of the related changes but are also able to adapt to these changes
effectively. This helps the company to maintain its competitive edge. She motivates
and leads her team in such a manner that individual members are able to achieve
personal goals while contributing to the overall organizational objective. In the process
of fulfilling her duties for the growth of the organization, she helps in providing
competitive services, adopting new technology, creating more employment
opportunities etc. for the greater good of the people at large.
In context of the above case: Identify the various reasons that have made
management so important by quoting lines from the paragraph.
Q. 19. Ramarjuna joins an IT from as a system analyst after completing his masters in
Computer Science. As the nature of his work demands he has to work in very close
coordination with all the departmental head sin the firm, very soon Ramarjuna realizes
that each departmental head has own individual style of working. They differ greatly in
their day-to-day approach to work. They tend to deal with a given situation, an issue
or a problem through a combination of their own experience, creativity, imagination,
initiative and innovation.
In the context of the above case: Identify and explain the nature of management
highlighted in the above case.
Q. 21. Kartik joins a garment factory as a plant supervisor in Lucknow. He observes that
the output of some workers is very low as compared to the standards set for their
performance. On analyzing the reasons for the same, he finds out that a lot of time of
the workers is wasted in getting the requisite materials issued form the store. Whereas
on asking, the store keeper complains that there is no harmony in the working of the
production department as a whole. Every day the workers approach him at the least
minute to procure different kinds of threads, laces, mirrors, buttons etc. if it is not
available in the store then he has to place an order with the purchase officer. As a
result, a lot of time of the workers is wasted. So, in order to integrate the various
production activities, henceforth, Kartik ensures that the store keeper is informed well
three days in advance about the requisite materials. Consequently, the store keeper is
able to keep the materials ready for the workers every morning in accordance with
their requirements.
a) Identify and explain the quality of management that Kartik has introduced in the
working of the production department as a corrective measure to control the
output of the workers.
b) State briefly and two points highlighting the importance of quality of
management identified in part (a).
Q. 24. Arundhati has been promoted to the post of Marketing Division Head of a soft
drink company. Identify the level of management at which she will be working
henceforth. State any four functions that she will have to perform at this level.
Q. 25. Bhuvan argues that management is required in all kinds of organizations where
as Piyush feels that management is not required in non-business organizations such as
school, club, hospitals, etc. who is correct?
Q. 26. Mohan has retired from the post of a foreman in a factory. At what level of
management is he working?
Q. 27. ‘Sonu Nigam’ the famous playback singer always spends time for practice and
adds his creativity in his singing.
Like Sonu Nigam, Mr. Rajiv, manager of Headlines Ltd. uses his creativity and practice
management principles under different situations to manage the business. The
employees are happy and satisfied as he every day reward employees for their
punctuality and efficiency.
Q. 28. Bhuvan Ltd., a garment manufacturing Company set the target production of 100
garments per month at the estimated cost of Rs. 200 per garment. Mohan, a worker
worked double shift and manufactured around 150 garments but at the estimated cost
of Rs. 230 per garment. On the other hand, Ravi another worker focus on cost and
handled resources very carefully so the manufactured 90 garments but at the estimated
cost of Rs. 190 per garment. Third worker maintained the balance and achieved target
of 100 garment at the estimated cost of Rs. 200 per garment.
a) Identify the quality possessed by Ravi, Mohan and what they are lacking.
b) What quality is possessed by third worker?
c) Which worker is preferred by management?
Q. 29. Management of Alpha Ltd. has installed a special recycling plant to recycle the
waste instead of dumping the waste in ground. It is also providing employment
opportunities to local residents. Company started a school nearby for the children of
their employees.
Q. 30. Directors of Bhuvan Ltd. assigned the task of implementing the plans and
policies framed by the board to all the departmental heads. Departmental head
appointed supervisors, superintendent, executives, etc. so that work can be assigned to
workers as per the plan supervisors kept a check on workers as per the plan.
Identify the feature of management highlighted in above para. Explain that feature.
Q. 31. Alpha Ltd. is a Company that manufactures mobile phones and accessories. Its
profits are declining nowadays. The sales department blames production department
for low quality, the production department blames purchase department for not
supplying good quality parts.
Q. 33. Unique enterprises is able to achieve the target production of 5,000 units within
the prescribed time; however to achieve this target they hired extra workers on adhoc
and spent around is 40,000 extra to pay the adhoc workers sot that target production
can be achieved on time.
Q. 35. Mr. Rajiv and Arun are responsible for welfare of the whole organization. Their
job is very complex they have to develop long term objectives, policies and review the
work of different heads at different level. Mr. John and Mr. Singh are responsible for
the working of department they are heading, they formulate short term departmental
objectives in accordance with organizational objectives.
Mr. Philip, Mrs. Archana, Mrs. Kamlesh and Mrs. Kavita are in direct contact with the
workforce consisting of various employees and workers. They are responsible for
quality of work and providing good working conditions to workers.
Q. 36. The manager of Alpha Ltd. is very efficient and effective and makes sure all the
employees and workers in his team perform the task on time with minimum cost. His
main focus is on cost cutting so he never listens to the demand of workers for
increasing wages. He even gives no opportunity to worker for promotion. As a result
workers started becoming frustrated and disheartened all the time.
Q. 37. The management of Amaira Ltd. strongly believes that the members of the
organization should work toward fulfilled the common organizational goals. This
requires team work and integration of efforts of all individuals departments and
specialists. This is because all the individuals and departments depend on each other
for information and resources to perform their respective activities. Manager needs to
reconcile differences in approach, timing, efforts and interest. At the same time it
should enable all its members to grow and develop. Thus, there is a need to harmonize
individual goals and organizational goals.
Q. 38. Mega Ltd. manufactured water-heaters. In the first year of its operations, the
revenue earned by the company was just sufficient to meet its cost. To increase the
revenue, the company analysed the reasons behind the less revenues. After analysis,
the company decided:
To reduce the labour cost by shifting the manufacturing unit to a backward area
where labour was available at a very low rate.
To start manufacturing solar water-heaters and reduce the production of electric
water-heaters slowly.
This will not only help in covering the risks but also help in meting other
objectives.
a) Identify and explain the objectives of management discussed above.
b) State any two values which the company wanted to communicate to society.
Q. 39. Ritu is the manager of the northern division of a large corporate house. At what
level does she work in the organization? What are he basic functions?
Q. 40. Mr. Nitin Singhania’s father has a good business of iron and steel. He wants to
go to the USA for his MBA but his father thinks that he should join the business. On
the basis of emerging trends, do you think that Mr. Singhania should send his son to
the USA? Give any three reasons in support of your answer.
41. 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 organizaitonas 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 Paid 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 work force in his department. Through
constant guidance and motivation, Jayant inspires them to realize their full
potential. He offers them various types of incentives from time to time keeping in view
their diverse individual needs. Moreover, 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.
a) Identify the concept being referred to in the following line, “He 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 liens from the paragraph.
Q. 42. Ajay and Sanjay are childhood friends. Sanjay had lost his right hand in an
accident in childhood. They meet after a long time in a restaurant. On being asked,
Sanjay tells Ajay that he feels very discounted in managing his family business after the
death of his father as it doesn’t match his areas of interest. Ajay knows that Sanjay
possesses extraordinary skills in management although he hasn’t acquired any
professional degree in management. Therefore, he asks Sanjay to wind up his business
in India and join him in his hotel business in Dubai as an Assistant Manager in Sales
and Marketing Division.
Can Sanjay be deployed at the post of Assistant Manager in Sales and Marketing
Division though he hasn’t acquired any professional degree in management? Explain
by giving suitable justifications in support of your answer.
ANSWERS
Functions: The main task of Dheeraj is to carry out the plans formulated by the top
managers. For this he need to:
Ensure that his department has the necessary personnel, assign necessary duties and
responsibilities to them.
Ans 2 . Yes, the Prodcution Manager is effective because he has completed the task
and achieved the goal of producing 10000 shirts. He is efficient also as he has
achieved the target at a lower cost.
Ans 3 .
Coordination: because production, marketing and finance departmental efforts are not
coordinated for achieving organizational objectives harmoniously. As a result, the
company’s profits and market share are declining.
Importance of Coordination
Growth in size:
Functional differentiation:
Specialization:
Ans 4 . Aman would have satisfied both Ahmad and Ally by giving the following
explanation:
Restricted Entry:
Professional Association:
Service motive:
Ans 6 . The company wants to modify its existing product, CD players in the market
because of today’s dynamic business environment. For this, each level of management
must divide its task.
They must plan the technique of modification/modernization of the product. They may
plan to manufacture DVD players or Blue raw players, etc. to modernize the product.
They must organize and assemble necessary resources and coordinate the efforts of all
the departments towards modernization.
They must implement the plans laid down by top management in their respective
departments or divisions.
They must assign the tasks to workforce and supervise that the task is carried on in the
right direction.
They must maintain the quality of work and r educe the wastage by improving the
motivation and loyalty of workers.
Ans 7.
Coordination
It is the force that binds all the functions of management.It is the common thread that
runs through all activities such as purchase, production, sales, finance, etc. to ensure
continuity in the working of the organization.
In order to ensure that these plans are executed according to plans, directing is
requires.
Any deviation between the actual and the standard performance is corrected at the
stage of controlling.
Ans 8 . Yes, the management of H. Tech Ltd. is fulfilling all the objectives –
organizational objectives, social objectives and personal objectives.
Organizational objectives
Social objectives
Personal objectives
Ans 9 .
He is responsible for the welfare and survival of the organization.He formulates overall
organizational goals and strategies for their achievement.
He assigns necessary duties and responsibilities to the personnel and motivates them
to achieve desired Objectives.
Ans 10 .
Coordination
Features of coordination:
An organization is a group of different individuals who work together with team spirit
and coordination to achieve the goals of the organization.
Ans 11 .
Planning: ‘Sanjana decides quantities, variety, colour and texture of all the above
items…’
Staffing: ‘She appoints a team of designers and crafts people in the company…’
Directing: ‘Praising their effort, Sanjana suggested that they should keep the silk bed
covers for special occasions like Diwali and christman…’
Controlling: ‘…offer the cotton bed covers on a regular basis to keep costs under
control.’
Ans 12 .
Company’s profits are sufficient to the cover the costs and the risks.
Since demand for lanterns was increasing day by day and so the company decided to
increase production to generate higher sales, it implies that the company exploits fully
its growth potential.
The company decided to employ people from the nearby villages as very few job
opportunities were available in that area.It also decided to open schools and crèches
for the children of its employees.’
Values:
Community development by opening schools and crèches for children (any two)
Ans 13 .
Achieving the group goals by giving a common direction to the individual effort of her
subordinates in achieving the target sale of 2000 laptops in a month.
She plans the target sale of 2000 laptops per months’ – Planning
She works with them, guiding and motivating them to achieve the target sales’ –
Directing
At the end of the month, after comparison of actual sales with the target sales she
found than actual sales exceeded the target sales’ - Controlling
Values:
Sense of achievement
Loyalty
Ans 14 . Yes, Sooraj is effective in his work as he has been able to meet his monthly
sales target of selling 1200 units of the food packets.
Ans 15 . Yes, Sujata is efficient in her work as she has been able to get 1000 units of
denim jackets made @ Rs. 2000 per jacket.
Ans 16 . The various features of management highlighted in the above paragraph are
stated below:
Ans 17 . The various objectives of management being fulfilled by Real Alliance Ltd are
stated below:
Organizational objectives:
Survival:
Growth:
Profit:
Personal objectives:
Social objectives:
The two value that Real Alliance Ltd. wants to communicate to the society are:
Social welfare
Ans 18 . The various reasons mentioned in the above paragraph that have made
management so important are stated below:
“As a result of her excellent managerial competence the company is able to reduce
costs and increase productivity.”
“The company belongs to infrastructure sector, wherein regular amendments are made
in the government regulations and policies.She holds regular meetings to ensure that
people in her department are not only aware of the related changes but are also able
to adapt to these changes effectively.This helps the company to maintain its
competitive edge.”
“She motivates and leads her team in such a manner that individual members are able
to achieve personal goals while contributing to the overall organizational objective.”
Management helps in the development of society by contributing effectively towards it
is multiple ways.
“In the process of fulfilling her duties for the growth of the organization, she helps in
providing competitive services, adopting new technology, creating more employment
opportunities etc. for the greater good of the people at large.
Art is the skillful and personal application of existing knowledge to achieve desired
results. The evaluation of management as an art is given below:
Personalized applications:
Ans 20 .
Restricted entry:
Professional association:
Ans 21 .
Coordination is the quality of management that Kartik has introduced in the working of
the production department as a corrective measure to control the output of the
workers.
Coordination is the process which helps to integrate the efforts of different individuals
with diverse needs to secure a unity of action in the pursuit of common goals.
The two points highlighting the importance of coordination are stated below:
Functional differentiation:
He has to serve as a link between the workers and middle level managers.
He has to ensure that good working conditions are provided to the workers.
Ans 23 . Geetika is working at the top level of management in the private sector
bank. The three other functions that she has to perform at this level are outlined
below:
She is responsible for all the business activities and its impact on society.
The four functions that she will have to perform at this level are stated below:
She had to ensure that her department has the necessary staff.
She has to assign duties and responsibilities to the people in her department.
She has to motivate the people in her department to achieve the desired objectives.
She has to co-operate with the other departments for ensuring smooth functioning of
the organization.
Ans 27.
Management as Science.
Management as Profession.
Values:
Ans 28.
Ans 29.
Ans 33.
No, the decision to hire adhoc workers and spending extra is not correct, this will
reduce the efficiency of enterprise.
The concept referred in this case is “Balance between effectiveness and efficiency.”
Ans 34.
“Functional differentiation”
Ans 35.
Ans 36.
Ans 37.
Coordination.
Give features of coordination.
Ans 38.
Organizational objectives:
Social Objectives:
The two values that the company wanted to communicate to the society are:
Rural development
Environment sustainability
Ans 39. Ritu / grandfather / Deepak’s father / Deeraj / Rajat, all of them are working at
the middle level of management.
Ans 40. Yes, according to me, Mr. Singhania should send his son to USA for his MBA
because management is being recognized as a profession to a great extent because of
the following reasons:
Service motive:
Ans 41.
The concept of management is 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.”
The various functions of the management concept mentioned in the above paragraph
are listed below:
Planning:
Organizing:
Staffing:
Directing:
Controlling:
Ans 42.
Yes, Sanjay can be deployed at the post of Assistant Manager in Sales and Marketing
Division although he hasn’t acquired any professional degree in management as
management is not considered to be a full-fledged profession because of the following
reasons:
Restricted entry:
Professional association:
The two values that are reflected in this act of Ajay are:
Compassion
Responsibility