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Published on: 15/09/2018
Term Test
Download CBSE Class 12th Standard CBSE Business Studies question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Business Studies
Questions + Answers key
Take MCQ Business Studies Test

1.
Why is training important for the employees? state any three reasons.
2.
You are working in HR department. Day-by-day you are facing problems due to the existence of informal groups.
What steps would you take to manage such informal groups?
3.
Discuss in brief, the advantages of informal organisation.
4.
'Informal organisation may become a disruptive force when it spreads rumors'. In the light of this statement, briefly discuss any two limitations of informal organisation.
5.
Explain how
(i) adaptation to change, and
(ii) Effective administration, make organising important.
6.
State the steps involved in the process of organising.
7.
Which organisation structure facilitates better growth and expansion?
8.
What type of organisation structure is suitable for multi-product firm?
9.
State one advantage of functional structure.
10.
Akshay Ltd wants to enter software industry. For this, the promoters decides to lay emphasis on all activities and functions. Suggest an organisational structure.
11.
'Difficulty in interdepartmental coordination' is one of the limitations of which organisation structure.
12.
What do you mean by Human Resource Management?
13.
State two roles/duties/activities performed by HR personnel.
14.
Name the factor, which is considered as the most important instrument of success in an organisation under human relations approach.
15.
What is the role of human resources in achieving the organisational goals?
16.
Explain the process of selection of employees.
17.
State any four reasons why training is needed in an organisation.
18.
Describe any four off-the-job training methods.
19.
Explain the on-the-job methods used for training of worker.
1.
Importance of Training and Development
Training and development help both the organisation and the individual in the following ways:
Benefits to the Organisation
The benefits of training and development to an organisation are as follows:
(i) Training is a systematic learning, always better than hit and trial methods, which lead to wastage of efforts and money.
(ii) It enhances employee productivity both in terms of quantity and quality and leading to higher profits.
(iii) Training equips the future manager, who can take over in case of emergency.
(iv) Training increases employee morale reduces absenteeism and employee turnover.
(v) It helps in obtaining effective response to fast changing environment.
Benefits to the Employee
The benefits of training and development activity to the employees are as follows:
(i) Improved skills and knowledge due to training lead to better career of the individual.
(ii) Increased performance by the individual helps him to earn more.
(iii) Training makes the employee more efficient to handle machines, thus, less prone to accidents.
(iv) Training increases the satisfaction and morale of employees.
2.
Following steps should be taken to manage informal groups:
(i) Managers should ensure that informal groups should follow the rules, laid down in an organisation.
(ii) Management should use group-based approaches for decision-making and conflict handling.
(iii) Management should make an efficient use of informal groups.
(iv) Managers should assist informal groups for the betterment of organisation.
3.
Advantages of informal organisation are:
(i) Prescribed lines of communications are not followed, which leads to quick feedback and decision-making.
(ii) It provides the necessary environment for creativity and innovation.
4.
Two limitations of informal organisation are:
(i) It opposes the policies and changes of management.
(ii) It focuses on individual interest rather than on organisational objectives.
5.
(i) Adaptation to change
Organising facilities modification in organisation structure and revision of inter-relationships among people in order to adapt to environmental changes.
(ii) Effective administration
Organising gives a clear description of duties and responsibilities of each individual. This helps to avoid duplication of activities. This helps in bringing efficiency in administration.
6.
The process of organising consists of the following steps:
(i) Identification and division of work.
(ii) Departmentalisation.
(iii) Assignment of duties.
(iv) Establishing reporting relationships.
7.
( )
Divisional Structure.
8.
( )
Divisional Structure.
9.
( )
It promotes control and coordination within a department.
10.
( )
Functional Structure.
11.
( )
Functional Structure.
12.
( )
It is that branch of management, which is concerned with the requirement, selection, development and the best use of employees.
13.
( )
The roles performed by HR personnel are
(i) Maintaining labour relations.
(ii) Handling grievances and complaints.
14.
( )
Human relations approach recognises human factor as the most important instrument of success in an organisation.
15.
( )
The success of an organisation in achieving its goals is determined to a great extent on the competence, motivation, and performance of its human resources.
16.
Selection is the process of identifying and choosing the best person out of a number of prospective candidates for a job.
A well-organised selection process of personnel involves the following steps.
(i) Preliminary screening It helps the manager to eliminate unqualified or unfit job seekers, based on the information supplied in the application forms.
(ii) Selection tests An employment test is a mechanism (either a paper and pencil test or an exercise) that attempts to measure certain characteristics of individuals. These characteristics range from attitudes, such as manual dexterity, to intelligence, to personality, etc.
(iii) Employment interview Interview is a formal, in-depth conversation, conducted to evaluate the applicant's suitability for the job, Through an interview, an interviewer seeks to obtain maximum information about the interviewee and the interviewee seeks information about the job and the company.
(iv) Reference and background checks Many employers request names, addresses and telephone numbers of references for the purpose of verifying information and gaining additional information of an applicant.
(v) Selection decision The final decision has to be made from among the candidates, who pass the tests, interviews and reference checks.
(vi) Medical examination After the selection decision and before the job offer, the candidate is required to undergo a medical fitness test.The job offers is given to the candidate, who is physically and mentally fit for the job.
(vii) Job offer The next step in the selection process is issuing job offer to those applicants, who have passed all the previous hurdles.It is made through a letter of appointment to confirm his acceptance and communicating to him the reporting date and time.
(viii) Contract of employment When a candidate accepts the job offer, the contract of employment is made, which is in a written form and includes job title, duties, responsibilities, date when continuous employment starts and the basis for calculating service, rates of pay, allowances, hours of work, leave rules, sickness, grievance procedure, etc.
17.
Training Methods:
(i) On-the-job Methods
(ii) Off-the-job Methods
On-the-job Methods It refers to those methods that are applied to the workplace, while the employee is actually working.The concept underlying on-the-job methods is 'learning while doing'.Some important on-the-job methods of training are:
(i) Coaching In this method, the superiors guide and instruct the trainee as a coach.The coach counsels or suggests how to achieve goals, periodically reviews the trainee's progress and suggests changes required in behaviour and performance.
The trainee works directly with a senior manager and the manager takes full responsibility for the trainee's coaching.
(ii) Internship training It is a joint programme of training, in which educational institutions and business firms co-operates in order to impart training to selected candidates.People can acquire practical knowledge by working in factories and firms and are able to handle recurring problems effectively.
Off-the-job Methods Off-the-job methods are used away from the workplace.It means 'learning before doing'.Some important off-the-job methods of training are:
(i) Classroom lectures/conferences The lecture or conference approach is well adapted to convey specific information, rules, procedures or methods.The use of audio visuals or demonstrations can often make a formal classroom presentation more interesting and helps in clarifying difficult points.
(ii) Vestibule training Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.Actual work environments are created in a classroom and employees use the same materials, files, and equipment.This is usually done when employees are required to handle sophisticated machinery and equipment
18.
In these methods, trainees are offered training through special courses before the performance of the job.
Off-the-job Methods
Off-the-job methods are used away from the workplace.It means 'learning before doing'.Some important off-the-job methods of training are:
(i) Classroom lectures/conferences The lecture or conference approach is well adapted to convey specific information, rules, procedures or methods.The use of audio visuals or demonstrations can often make a formal classroom presentation more interesting and helps in clarifying difficult points.
(ii) Films It can provide information and demonstrate those skills that are not easily represented by other techniques.If used along with conference method, it becomes more effective.
(iii) Case study taken from actual experiences of organisation Cases represent an accurate figure of real life problems that managers have faced.Trainees study the cases to determine problems and analyse causes, develop alternative solutions, select the best alternative and implement it.
(iv) Computer modeling It simulates the work environment by programming a computer to imitate some of the realities of the job and allows to take experience of real life situations, without incurring high risk or cost.
(v) Vestibule training Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.Actual work environments are created in a classroom and employees use the same materials, files, and equipment.This is usually done when employees are required to handle sophisticated machinery and equipment
(vi) Programmed instruction In this method, information is broken into meaningful units and arranged in a logical and sequential learning package.The trainee goes through these units by answering or filling the blanks, from simple to complex.
19.
On-the-job Methods
It refers to those methods that are applied to the work place, while the employee is actually working.The concept underlying on-the-job methods is 'learning while doing'.Some important on-the-job methods of training are:
(i) Apprenticeship programmes Apprenticeship programmes put the trainee under the guidance of a master worker such as plumbers, electricians, carpenters, etc. The trainee works along with the master worker for a specified period to a acquire a higher level of skill.
(ii) Coaching In this method, the superiors guide and instruct the trainee as a coach.The coach counsels or suggests how to achieve goals, periodically reviews the trainee's progress and suggests changes required in behaviour and performance.
The trainee works directly with a senior manager and the manager takes full responsibility for the trainee's coaching.
(iii) Internship training It is a joint programme of training, in which educational institutions and business firms co-operates in order to impart training to selected candidates.People can acquire practical knowledge by working in factories and firms and are able to handle recurring problems effectively.
(iv) Job rotation It involves shifting of employees from one job to another, or one department to another, or one shift to another. This helps the employee to learn varied skills to do a variety of jobs.
It also helps him to interact with other employees, leading to better coordination between departments and facilitating transfers and promotion of employees.
(v) Induction training It is a type of training given to help a new employee in settling down quickly into the job by becoming familiar with the people, the surrounding, the job and the business.The duration of such type of training may be from a few hours to a few days.
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