Students must start practicing the questions from RBSE 12th Business Studies Board Model Paper 2022 with Answers in English Medium provided here.
RBSE Class 12 Business Studies Board Model Paper 2022 with Answers in English
Time : 2:45 Hours
Marks : 80
General Instructions for the Examinees :
1. Candidate must first write his/her Roll No. on the question paper compulsorily.
2. All the questions are compulsory.
3. Write the answer to each question in the given answer book only.
4. For questions having more than one part, the answers to those parts must be written together in continuity.
Objective Type Questions (1 x 12 = 12)
(i) The standardization mark to measure the quality of a commodity is :
(b) ISI ection Act
(b) ISI ection Act
(ii) In which year Consume
(b)195  mg?
(iii) What do you mean by n
(iv)What is the amount that service ?
(a) Price determination The promotion of any ot
(c) the purchases of the prodi
(a) Price determination The promotion of any ot
(v) The promotion of any ot
(a) Instrument of short term borrowing
(b) Long term borrowing
(c) Instrument of capital market
(b) Long term borrowing
(vii) How many stock exchanges are there in India ?
(viii) What is the primary function of management ?
(ix) Planning the risks of uncertainty.
(c) Both (a) and (b)
(x) Recruitment is a……….. process.
(xi) Selection is a process.
(xii) What is the person who uses the object called ?
Fill in the Blanks (1 x 6 = 6)
(i) The initiative to apply the scientific method in the field of management was taken by…….. 
(ii) In the state commission……….cases can be claimed. 
10 lakh to one crore,
(iii)…………is the essence of management. 
(iv) Customization of a product and production of box or cover is called……. 
(v)…………..is a process by which the attitude, skills Mid abilities of the employees can be increased. 
(vi) Deciding what to do in future and how to do it is called……… 
Very Short Answer Type Questions
(i) Who can file a complaint in a consumer court? 
Any consumer, consumer organisation or NGO can file a complaint in a consumer court.
(ii) What is marketing ? Write down. 
Marketing refers to the process of interaction between the buyers and sellers with a single aim of exchanging of goods and services.
(iii) State one important source of recruitment 
(iv) Explain the procedure of appointment 
Placing die right person on the right job is termed as staffing.
(v) Explain the informal communication. 
Informal communication refers to the type of communication in which the employees interact with each other in an informal way.
(vi) Write down one element of communication process. 
Sender: The person who sends a message is called sender.
(vii) Write down two characteristics of leadership. 
Two characteristics of leadership are as follows:
(a) Positive attitude,
(b) Independent thinking.
(viii) Who gave the theory of need order motivation ? 
(ix) Write down two principles of direction. 
Two principles of direction are as follows:
(a) Unity of command,
(b) Harmony of objectives.
(x) What do you mean by Budget ? 
An estimated statement of receipts and payments is called budget.
(xi) Write down how does planning provide directions ? 
Planning provides direction by deciding in advance what is to be done.
(xii) Write down two limitations of planning. 
Two liniitations of planning are as follows:
(a) Planning does not guarantee success. ‘
(b) It may not work in a dynamic environment.
Short Answer Type Questions-I ( 2 x 13 = 26)
State the basic features of management as a profession. 
The basic features of management as a profession are as follows:
- Well defined body of knowledge-Management has a well-defined body of knowledge as in profession,
- Restricted entry-Management has restricted entry through an examination or degree as in profession,
- Presence of professional institutions- All professions have several associations affiliated to them and even management has associations (like IIMs) affiliated to it.
- Existence of an ethical code – Management and profession both have some sets of ethical codes fixed by respective associations,
- Service motive-Management has service motive just like profession.
Define scientific management. State any one of its principles. 
Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cost-effective manner. One of the principles of scientific management is ‘management is not a rule of thumb’.
What are fhe main aspects in the definition of planning ? 
Planning includes setting the objectives and developing appropriate courses of action to achieve these objectives. Planning provides a rational approach for achieving those predetermined objectives which provide direction to all managerial decisions and actions. All members, hence, ‘ need to work towards achieving these organisational goals which set the targets needed to be achieved and against which the actual performance is measured.
What is meant by recruitment ? How is it different from selection ? 
Recruitment is defined as the process of searching for prospective employees and stimulating them to apply for jobs in the business organisation. The essential objecti v e of recruitment is to create a pool of prospective job seekers. Recruitment is a positive process, while selection is a negative process.
$. Explain any three principles of directing. 
The three principles of directing are as follows:
(a) Maximum individual contribution : This principle states that directing techniques must help every employee in the organisation to realise his maximum potential for the accomplishment of organisational objectives.
(b) Harmony of objectives : Many times, it is seen that individual objectives of employees and the organizational objectives as understood are conflicting in nature to each other.
(c) Unity of command : This principle emphasises that every subordinate in the organisation should receive instructions from one superior only. If instructions are received from more than one person, it creates confusion, conflict and disorder in the organisation. Following this principle ensures effective direction.
What are semantic barriers of communication ? 
Semantic barriers: Semantics is the branch of linguistics which deals with the meaning of words and sentences. Semantic barriers of communication are associated with problems and obstructions in the process of encoding and decoding of message into words/impressions. Generally, such barriers emerge due to the use of incorrect words, faulty translation, variations in interpretation, etc.
What are the responsibilities of a consumer ? 
The responsibilities of a consumer are as follows:
- Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
- Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark on jewellery, etc.
- earn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
- Read labels carefully so as to obtain information about prices, net weight, manufacturing and expiry dates, etc.
- Assert yourself to ensure that you get a fair deal.
- Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding, etc.
- Ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.
- File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small. .
- Form consumer societies, which would play an active part in educating consumers and safeguarding their interests
- Respect the environment. Avoid waste, littering and contributing to pollution.
Explain the importance of consumer protection from business point of view. 
The importance of consumer protection from business point of view can be understood from the following points:
(i) Long-term interest of business :
If one wishes to expand their customer base in long-term, they need to make a happy customer base. A happy customer will bring in more customers and expand their base by word of mouth.
(ii) Business uses society’s resources :
Business must not hamper consumer confidence as most of its resources come from the society. In turn, business keeps in mind the public interest and provides products accordingly.
(iii) Social responsibility :
Every business has a social responsibility towards the consumers, government bodies and the society they live in. The business must work in favour of all these and should not do anything that might hurt them.
(iv) Moral justification :
It is the moral duty of any business to take care of consumer interest and avoid any form of their exploitation. They must avoid any sort of unscrupulous, exploitative and unfair trade practices such as unsafe products, adulteration, false and misleading advertising, hoarding and black marketing.
(v) Government intervention :
Business should design their trade practices in such a manner that they must be in benefit of their consumers to avoid any kind of government intervention in their business.
Define advertising. What are its main features ? 
Advertising refers to an impersonal technique of promotion of a product which is paid for by the marketers. It helps in attracting the customers towards the product. Common modes of advertising are- newspapers, magazines, television, social media etc.
The important distinguishing features of advertising are as follows:
(i) Paid Form of Communication : Advertising is a paid form of communication. That is, the sponsor has to bear the cost of communicating with the prospects.
(ii) Impersonality : There is no direct face-to-face contact between the prospect and the advertiser. It is therefore, referred to as an impersonal method of promotion.
(iii) Identified Sponsor : Advertising is undertaken by some identified individual or company, who makes the advertising efforts and also bears the cost of it.
Describe the functions of labeling in the marketing of products. 
The functions of labeling are as follows :
(i) Describe the product and specify its contents- A label describes the product and specifies its components and all other contents of the product, the precautions to be taken etc.
(ii) Identification of the product or brand- Identifying the product or brand helps the consumers in identifying the one’s favourite one among several choices, like the name of the product.
(iii) Grading of products- Another important function performed by labels is to help grading the products into different categories.
(iv) Helps in promotion of products- A label helps in attracting the customers and thus promoting it. A carefully designed label can attract attention and give reason to purchase.
(v) Providing information required by the law- Information as required by the law is also provided by the label of the product. For example, packaged food articles must have a list of ingredients, declaration regarding vegetarian or non-vegetarian food additives and date of manufacturing or packing on the label.
Distinguish between capital market and money market. 
Difference between capital market and money market:
|Basis of Difference||Capital Market||Money Market|
|(i) Time period||This market is for long term period (for more than one year).||This market is for short term period (generally less than one year).|
|(ii) Liquidity||This market is less liquid as compared to money market.||This market is more liquid as compared to capital market.|
|(iii) Major instruments||The major instruments of this market are shares and debentures.||The major instruments of this market are commercial papers, treasury bills, call money, commercial bills etc.|
|(iv) Regulator||This market is regulated by SEBI.||This market is regulated by RBI.|
|(v) Return||Investors generally get higher return by investing in this market.||Investors generally get less return by investing in this market.|
What is a Treasury Bill ? 
Treasury bills are issued by the RBI. These are money market instruments acting on behalf of the central government to meet the short-term requirement of the funds. These are also called zero-coupon bonds and the term of maturity of the bills is less than one year or less. These bills are issued when there is a shortage of funds, or when the RBI wants to control the liquidity of cash in the market. These bills are issued at a discount than the face value and are redeemed at par.,-The difference is the interest received by the holder, which is called ‘discount’. Treasury bills are available for a minimum amount of 5,000 and in multiples thereof.
How is the principal of ‘Unity of command’ useful to management ? Explain briefly.
Fayol suggests that there should be one and only one boss for every individual employee. The principle of unity of command is violated if an employee gets orders from two or more superiors at the same time. According to the principle of unity of command, each participant in a formal business organisation should receive orders from and be responsible to only one superior. Fayol was an ardent supporter of this principle. He believed that in case if there is violation of this principle, then “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”. The principle resembles a military organisation, according to which dual subordination should be avoided in order to prevent any confusion and conflict regarding tasks to be performed.
Short Answer Type Questions-II ( 4 x 3 = 1 2)
Explain the various money market instruments. 
Following are some of the important money market instruments:
1. Treasury Bills:
- Issued by the RBI, these are money market instruments acting on behalf of the central government to meet the short-term requirement of the funds.
- These are also called zero-coupon bonds and the term of maturity of the bills is less than one year or less.
- These bills are issued when there is a shortage of funds, or when the RBI wants to control the liquidity of cash in the market.
- These bills are issued at a discount than the face value and are redeemed at par. The difference is the interest received by the holder, which is called ‘discount’.
- Treasury bills are available for a minimum amount of 25,000 and in multiples thereof.
2. Commercial Papers:
- It is a promissory note and a short-term, uninsured debt instrument, negotiable and transferable by endorsement and delivery with a fixed maturity period.
- These are issued by large companies and corporations which are in need of quick short-term loAnswer: The funds are required for providing short-term funds for seasonal and working capital needs.
- Commercial papers have a maturity term of between 15 days to 1 year. They are also issued at a discount and redeemed at par.
3. Call Money:
- Commercial banks have to maintain a minimum cash balance known as cash reserve ratio. At times, even banks may need help for maintaining their funds and financial needs. For that, they rely on other commercial banks to borrow short-term loAnswer:
- The Reserve Bank of India makes changes the cash reserve ratio from time to time, which in turn affects the amount of funds available to be given as loans by commercial banks.
4. Certificates of Deposits:
- These are money market instruments issued only by the commercial banks and financial institutions under the guidelines of RBI.
- These are unsecured, negotiable, short-term instruments in bearer form, issued by commercial banks and development financial institutions
- Their term of maturity is between 7 days to a year when issued by banks and if it is issued by other financial institutions, the maturity period is between one to three years.
5. Commercial Bills:
- A commercial bill of exchange is a type of bill of exchange that is used to fund a company’s working capital needs. It is a self-liquidating, short-term, negotiable mechanism used tb fund the credit sales of businesses. When products are sold on credit, the buyer agrees to pay the sum on a certain date in the future.
Explain the various parts/segments of NSE.
(i) Wholesale Debt Market Segment
(a) It provides a platform for trading in fixed income securities.
(b) Securities like state development loans, bonds issued by public sector undertakings, treasury bills, floating rate bonds, zero coupon bonds, index bonds, commercial papers, certificate of deposit, corporate debentures and mutual funds, etc., are traded.
(ii) Capital Market Segment
(a) This segment deals in trading of equity shares, preference shares, debentures, as well as retail government securities.
(b) The capital market segment of NSE provides an efficient and transparent platform for dealing in the above mentioned securities.
What is marketing concept ? How does it help in the effective marketing of goods and services ? 
Marketing refers to the process of interaction between the buyers and sellers with a single aim of exchanging of goods and services. Marketing is not merely a post- production activity. It includes many activities that are performed even before goods are actually produced, and which continue even after the goods have been sold. The activities which are basically various functions that are performed under marketing like planning, designing, packaging and labeling, standardizing, branding, warehousing, advertising, pricing and distribution are a part of marketing only. In this way, marketing provides a smooth path for the effective marketing of goods and services and builds a trust of the consumers towards a particular brand.
What do you mean by channels of distribution ? What functions do they play in the distribution of goods and services ? Explain.
Channels of distribution are the means through which goods are distributed to the final consumer. These can be done in the form of individuals, institutions or agents. To make the products available to the consumers at different places and at different time, various channels are required to fulfill the task.Channels of distribution play a very important role in the distribution of goods and services. We can say that the channels of distribution are the backbone of an economy that are very helpful for the physical distribution of the goods and services. When goods and services are produced, it is the channel of distribution that makes them able to reach to the customers.
Discuss the following techniques of scientific work study : 
1. Time Study
2. Motion Study
3. Method Study.
(i) Time Study: Time study is used to determine the standard time taken to conduct a well- defined task. For each element of task, different time-measuring devices are used.
(ii) Motion Study: Motion study implies the study of various movements such as lifting, putting objects, sitting and changing positions etc., which are conducted while doing a particular job. In this, unnecessary movements are eliminated to save time while doing a particular job.
(iii) Method Study: To identify one best way of doing the job is the objective of method study. To determine the best way, there are several parameters. Every business activity, right from purchase of raw materials till the delivery of final product to the customers form a part of method sturdy. Taylor introduced the concept of assembly line, using method study.
Explain the principle of ‘Scalar Chain’ and ‘Gang Plank’.
The formal lines of authority from highest to lowest ranks are known as scalar chain of an organisation, which consists of superiors and subordinates. In the words of Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates.” For example, there is one head ‘A’ in an organisation who has two lines of authority under him. One line consists of B-C-D-E-F. Another line of authority under ‘A’ consists of L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who is at the same level of authority then he has to traverse the route E-D-C-B-A-L-M-N-O.
This is owing to the principle of scalar chain which is being followed in this situation. Fayol suggests that this chain should not be violated in the normal course of formal communication. However, in case of an emergency, ‘E’ can directly contact ‘O’ through ‘Gang Plank’ as illustrated in the figure given here. This is a shorter route and it has been provided in order to prevent any delay in communication. In practice also, it is observed that an employee cannot contact the CEO of the company directly. In order to do so, he has to inform all the formal levels, i.e., foreman, superintendent, manager, director etc. about it. Anyway, in an emergency, it may be possible that an employee can contact the CEO of the company directly.
Explain the procedure for selection of Employees. 
Following are the major steps included in the selection process:
(i) Preliminary Screening:
This helps the managers remove unqualified or unfit job seekers based on the information provided by the candidates in the application forms. Preliminary interviews help reject misfit candidates for those reasons, Which were not supplied in the application forms.
(ii) Selection Tests:
An employment test (either a paper and pencil test or an exercise) is a mechanism that aims at measuring several characteristics of individuals. These characteristics may include aptitude, such as manual dexterity, intelligence, personality, etc.
(iii) Employment Interview:
Interview is a formal, in-depth conversation which is conducted with the objective to evaluate the applicant’s suitability for the job. The role of the interviewer is to seek information and that of the interviewee is to provide information. However, in present times, the interviewee also seeks information from interviewer.
(iv) Reference and Background Checks:
For the purpose of verifying information and gaining additional information on an applicant, various employers demand names, addresses and telephone numbers of references. Previous employers, known persons, teasers and university professors may act as references.
(v) Selection Decision:
The final selection decision is made from among the candidates who pass all the tests, interviews and reference checks. The views of the concerned manager are generally considered in the final selection because it is he who will be held responsible for the performance of the new employee.
(vi) Medical Examination:
The candidate is required to undergo a medical fitness test after the selection decision and before the job offer is made to him. The job offer is given to the candidate after he is declared fit after the medical examination.
(vii) Job Offer:
The next step in the selection process is providing job offer to those applicants who have passed all the previous challenges. Job offer is made through a letter of appointment to confirm his acceptance. Such a letter usually contains a date, by which the applicant must report on duty. The appointee must be provided reasonable time for reporting.
(viii) Contract of Employment:
After the job offer has been made and the applicant accepts the offer, several documents have to be executed by the employer and the applicant.
What are the advantages of training to the individual and to the organization ?
Benefits of Training and Development for the organisation
Following are the benefits of training and development for an organisation:
(1) Training refers to systematic learning, and it is always better than hit and trial methods which result into wastage of efforts and money.
(2) Training increases the productivity of the employees, both in terms of quantity and quality, resulting into higher profits.
(3) Training makes future managers capable of facing challenging situations.
( ) Training enhances the morale of the employees, and in addition to this, it also reduces
absenteeism and employee turnover.
(5) Training helps in acquiring an effective response to the rapidly-changing technological and economic environment. Benefits of Training and Development for the Employees Following are the benefits of training and development for the employees:
- Training enhances the skills and knowledge of an employee, leading to a better career in the future.
- Training enhances the performance of the employees, by which they are able to increase their income.
- Training makes the employee more efficient to handle machines and thus it helps in preventing accidents.
- Training increases the level of satisfaction and morale of employees.
Long Answer Type Questions ( 3 x 4 = 1 2)
Management is considered to be both an art and science. Explain. 
Management is considered as both art and science, as it has the characteristics or features of both. This statement can be verified with the help of the following explanation: Management can be considered to be an art, since it satisfies the following conditions:
(i) In their day-to-day job of managing an enterprise based on study, observation and experience, all successful managers practice the art of management. The manager has to specialize in various areas of management such as- marketing, finance and human resources and a lot of literature related to thitftontent is available. Hence, there is existence of theoretical knowledge.
(ii) Various theories of management which prescribe certain universal principles have been propounded by various management thinkers. These scientific methods and body of knowledge is applied to a given situation, an issue or a problem by all managers in their own unique ways. Working through a combination of practice, creativity, imagination, initiative and innovation is the quality of a good manager. Only after a long practice, a manager is able to become perfect. Depending upon the extent of the creativity they have, students of management also apply these prinpiples in varied amounts.
(iii) In the light of the realities of a given situation, a manager applies this acquired knowledge in a personalised and skillful manner. A manager being involved in organizational activities, studies critical situations and formulates his own personalized theories to be used in a particular situation. Different styles of management emerge due to this. Individuals who are committed and dedicated, highly trained and educated, with personal qualities such as ambition, self motivation, creativity and imagination, having a desire for development of the self and the organisation they belong to are the best managers. The ability to put the principles of management into practice distinguishes a successful manager from a less successful one.
Management can be considered to be a science since it satisfies the following conditions:
(i) Although management is a systematised body of knowledge which has its own theory and principles that have developed over a period of time, yet it is also related to other disciplines like Economics, Sociology, Psychology and Mathematics. Management has its personalized vocabulary of terms and concepts. For example, all of us discuss sports like cricket and football using a common vocabulary. The players also use these terms in the course of their conversation with each other. In the same way, managers also communicate with one another with the help of a common vocabulary for a much better understanding of their work situation.
(ii) On the basis of repeated experimentation and observation in different types of organizations, the principles of management have evolved over a long period of time. However, the outcomes of these experiments are not capable of being accurately predicted or replicated. So, management can be considered as an inexact science. In spite of these limitations, management scholars such as F. W. Taylor (principles of scientific management), Henri Fayol (principles of functional management) and various others have been able to identify common principles of management.
(iii) Application and use of the principles of management is not universal because they are not as exact as the principles of science, and as such, they have to be modified according to a given situation. However, they provide managers with several standardised techniques which can be used in varied situations. Training and development of managers also involves the use of these principles. Now, we can say that management has features of both art and science. The practice of management is an art and managers can work better if their practice is based on the principles of management. These principles include the science of management. Management as an art and a science are therefore not separate, but complementary <b each other.
“A successful enterprise has to achieve its goals effectively and efficiently”. Explain.
For management, it is essential to be both effective and efficient. Although, effectiveness and efficiency are two sides of the same coin, yet these two aspects need to be balanced, and management at times, has to compromise with efficiency. For instance, it is easier to be , effective and ignore efficiency, i.e., complete the given task but at a high cost. Say that, a company’s target production is 7000 units in a year and in order to achieve this target, the manager has to operate on double shifts due to power failure that occurs most of the time.
The manager is able to produce 7000 units, but at a higher production cost. In this case, the manager was effective but not that efficient, because tor the same output, more inputs (labour cost, electricity costs) were utilized. Many times, it is seen that a business may concentrate more on producing goods with fewer resources, i.e., cutting down cost but not achieving the target production. As a result of this, the goods do not reach the market and so the demand for them decreases and the competitors get a chance to enter the market.
This is a case of being efficient but not effective because the goods did not reach the market. So, it is essential for management to achieve goals (effectiveness) using minimum resources, i.e., being as efficient as possible while maintaining a balance between effectiveness and efficiency. Generally, high efficiency is associated with high effectiveness, which is the aim of all managers at all levels. But unnecessary emphasis on high efficiency without being effective is also not required. Poor management is due to both inefficiency as well as ineffectiveness.
Explain the principles, of scientific management given by Taylor. 
Following are Taylor’s principles of scientific management:
(i) Science, not Rule of Thumb:
Taylor is regarded as the precursor to introduce the method of scientific reasoning and inquiry into the domain of the practice of management. Due to limitations of the rule of thumb approach of management, when different managers would follow their indigenous rules of thumb, all of them would not be equally effective. Taylor regarded that there was only one best method to maximise efficiency and this method which could be developed through study and analysis should substitute the ‘Rule of Thumb’ across the organisation.
Involving the investigation of traditional methods through work-study, unifying the best practices and developing a standard method, the scientific method devised by Taylor would be followed throughout the organisation. Taylor believes that even a minor production activity such as loading pigs of iron into boxcars can be scientifically planned and managed. This can help in significant saving of human energy as well as wastage of time and materials, as the more sophisticated the processes, greater would be the savings. The. use of internet in the modem time has brought about significant changes and improvements in an organisation’s internal efficiencies and customer satisfaction.
(ii) Harmony, Not Discord:
Managers served as a link between the owners and the workers under the factory system of production. In this condition, there always remained a possibility of a type of class-conflict between the managers and the workers, as managers had the mandate to ‘get work done’ from the workers. Taylor explained that this conflict helped neither the workers, nor the managers or the factory owners. He advocated in favour of establishing complete harmony between the management and the workers and said that both should realize their importance for each other, in order to achieve this objective, Taylor suggested for complete mental revolution on the part of both management as well as workers.
It denotes that management and workers should transform their thinking to create such circumstances that even trade unions will not think of going on strike or holding lockouts, etc. The profits made by an organisation should be shared by the management and the workers and along with this, workers, being a part of the family, should also work hard and be willing to adopt changes in the interest of the company.
(iii) Cooperation, Not Individualism:
In place of individualism, there should be full cooperation between the workers and the management. This principle is an extension of principle of ‘Harmony not discord’, according to which, competition should be replaced by cooperation and both the management as well as the workers should realize that they are complimentary to each other. For this, management should always welcome constructive suggestions provided by the workers and the workers should be rewarded for their suggestions resulting in significant reduction in costs. The workers should be considered as a part of management and they should be involved in taking various important decisions.
(iv) Development of Each and Every Person to the Greatest Efficiency and Prosperity:
Industrial efficiency largely depends on personnel competencies and hence the concept of scientific management also emphasized on the development of the workers. As worker training was also essential to learn the ‘best method’ developed as a consequence of the scientific approach, Taylor suggested that the concern for efficiency could be built in right from the process of selection of the employees. After selecting a person on scientific basis, work should be assigned on the basis of his physical, mental and intellectual capabilities. Necessary training should be provided to enhance efficiency of the workers so that they may produce more and earn more and thus ensure increased efficiency, productivity and prosperity of both the workers as well as the organisation.
Explain the principles of scientific management given by Fayol.
The principles of management given by Fayol are as follows:
(i) Division of Work:
This leads to specialization as the work is divided into smaller tasks/jobs and a competent trained specialist is appointed to perform each job.
(ii) Authority and Responsibility:
In order to commensurate with their responsibility, all managers essentially require delegation of authority. However, there should be a balance between authority and responsibility, and in order to ensure this, every organisation should frame safeguards against the misuse of managerial power.
(iii) Discipline: Discipline implies adherence to organisational rules and employment agreement, which are essential for appropriate functioning of an enterprise.
(iv) Unity of Command:
According to the principle of unity of command, each participant in a formal business organisation should receive orders from and be responsible to only one superior.
(v) Unity of Direction:
Each group of tasks having the same objective must have a single head and a single plan in order to ensure unity of action and coordination.
(vi) Subordination of Individual Interest to General Interest:
According to Fayol, priority should be given to the interests of an organisation over the interests of any one individual employee.
(vii) Remuneration of Employees:
Overall pay and compensation provided by the organisation should be fair to both employees and the organisation itself. In order to provide them a reasonable standard of living, the employees should be paid reasonable wages, but this should be within the paying capacity of the company.
(viii) Centralisation and Decentralisation:
There is a need to balance’subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.
(ix) Scalar Chain:
Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.
It means orderliness. There will be no obstacles in the functioning of a business factory, if there is a fixed place for everything and everything is present at its place. This will also result into increase in productivity and efficiency.
This principle suggests kindliness and justice in the behaviour of managers towards workers as this will ensure loyalty and devotion.
(xii) Stability of Personnel:
Fayol suggests that, “Employee turnover should be minimised to maintain organisational efficiency”. Employees should be given sufficient time to show their performance and skill towards work.
According to Fayol, the employees should be encouraged to develop and conduct their plans for improvements. Initiative involves taking the first step with self-motivation determining and executing the plan. ’
(xiv) Espirit De Corps:
Fayol suggests that the management should provide encouragement to ‘ the team spirit of unity and harmony among the employees.
What are the common barriers to effective communication ? Suggest measures to overcome them. 
Following are some of the important barriers to effective communication:
(i) Semantic barriers:
Semantics is the branch of linguistics which deals with the meaning of words and sentences. Semantic barriers to communication are associated with problems and obstructions in the process Of encoding and decoding of message into words/impressions. Generally, such barriers emerge due to the use of incorrect words, faulty translation, variations in interpretation, etc. These are discussed below:
expressed message: Sometimes, a manager may be unable to convey the intended meaning to his followers or subordinates. These badly-expressed messages may be due to incorrect vocabulary, usage of wrong words, omission of the required words or statements etc.
(b) Symbols with different meanings:
One word may have multiple meanings. The receiver of the message has to perceive one such meaning for the word used by the communicator. Wrong perception results into communication problems.
(c) Faulty translations:
Sometimes, communication originally drafted, in one language (for e.g., English) requires to be translated into the language understandable to the employees (for e.g., Hindi). If the translator is not proficient in both English as well as Hindi, mistakes may emerge resulting into different meanings to communication.
(d) Unclear assumptions:
At times, communication may have certain assumptions which are subject to different interpretations. For example, a superior may tell his subordinate, “Take care of our guests”. Here, the superior may mean that the subordinate should take care of transport, food and accommodation of the guests until they stay there.
(e) Technical jargon:
Mostly, it is observed that specialists use technical jargon while explaining things to persons who are not specialists in the respective field. Therefore, they may not understand the actual meaning of various such words.
(f) Body language and gesture decoding:
Every movement of body communicates some or the other meaning. The body movement and gestures of the communicator matter a lot in conveying the right message. If there is mismatch between what is said and what is expressed in body movements, communication may be wrongly perceived.
(ii) Psychological barriers:
Emotional or psychological factors also act as barriers to communicators. For example, a distressed person cannot communicate in the proper manner and an angry receiver cannot understand the actual meaning of message. The state of mind of both the sender as well as the receiver of communication reflects in effective communication. Some of such psychological barriers include the following:
(a) Premature evaluation:
Many times, it is observed that the individuals evaluate the meaning of message even before the sender completes his message. Such premature evaluation may be a result of pre-conceived notions or prejudices against communication.
(b) Lack of attention:
The pre-occupied mind of the receiver and the consequent non-listening of the message serves as a major psychological barrier. For example, a subordinate explains about his problems to his superior who is pre-occupied with an important task before him. The superior does not understand the message and the subordinate stands disappointed.
(c) Loss by transmission and poor retention:
Successive traftsmissions of the message results in loss of, or transmission of inaccurate information. This happens when communication passes through various channels.
Distrust between the communicator and the communicate also serves as a
barrier. If the involved parties do not believe each other, they cannot understand each other’s message in its original form.
(iii) Organisational barriers:
The factors related to organisation structure, authority relationships, rules and regulations may, sometimes, also act as barriers to effective communication. Following are some of these barriers:
(a) Organisational policy: If the explicit or implicit organizational policy is not supportive to free flow of communication, it may hinder the effectiveness of communication.
(b) Rules and regulations:
Communication may also be obstructed by rigid rules and complex and tiring procedures. In the same way, communication through a prescribed channel also may result in delays in decision-making.
Status of the superior may create psychological distance between him and his followers or subordinates. In addition to this, a status conscious manager may even not allow his subordinates to express their feelings freely.
(d) Complexity in organizational structure:
Communication gets delayed and distorted
in an organisation which has a large number of managerial levels because in such organizations the number of filtering points is more. :
(iv) Personal barriers:
The personal factors of both the sender as well as the receiver have influence.on effective communication. Following are some of the personal barriers of superiors and subordinates:
(a) Fear of challenge to authority:
If a superior has the perception that a particular communication may have an adverse impact on his authority, he or she may withhold or suppress such communication.
(b) Lack of confidence of superior on his subordinates:
If the superiors do not have confidence on the competency of their followers or subordinates, they may not seek or consider their advice or opinions.
(c) Unwillingness to communicate:
Sometimes, the subordinates may not be prepared
to communicate with their superiors, if they perceive that this may negatively affect their interests. ,
(d) Lack of reasonable incentives:
If there is absence of motivation or incentive for communication, subordinates may not take initiative to communicate.
Following measures should be taken in order to overcome these barriers:
(i) Clarify the ideas before communication:
Before communicating the problem to his followers or subordinates, the manager himself should be clear about it in all perspectives. He should perform an in-depth analysis of the problem and explain it to the subordinates in a clear manner.
(ii) Communicate according to the needs of receiver:
The level of understanding of the receiver should be absolutely clear to the communicator. The manager should adjust his communication according to the education and understanding level of his subordinates.
(iii) Consult others before communicating:
The subordinates should be involved while developing the plan for communication before the message is actually conveyed to them. This would help to gain ready acceptance and willing cooperation of the subordinates.
(iv) Be cautious about the language, tone and content of message:
The contents of the message, its tone, the language used, and the manner in which the message is to be communicated are crucial aspects of effective communication. The language used should be understandable to the receiver and should not offend their sentiments. The message should be stimulating, so that it may evoke response from the listeners.
(v) Convey things of help and value to listeners:
It is better to know about the interests and needs of the people to whom the message has to be conveyed. If the message relates directly or indirectly to such interests and needs, it would certainly evoke response from them.
(vi) Ensure proper feedback: The communicator may ensure the success of communication by asking questions associated with the message conveyed. The receiver of communication may also be encouraged to respond to the communication. The communication process may be improved by the feedback received so as to make it more responsive.
(vii) Communicate for present as well as future:
Communication is mostly needed to meet the existing commitments to maintain consistency. However, it should also aim at future goals of the business organisation.
(viii) Follow up communication:
There should be regular follow up and review of the instructions given to the subordinates. This helps in removing any obstacles in implementing the instructions, (ix) Be a good listener: The manager should be a good listener because patience and attentive listening itself solves half of the problems; The managers should also provide hints of their interest while listening to their followers or subordinates.
Discuss Maslow’s Need Hierarchy Theory of Motivation.
Maslow’s Need Hierarchy Theory of Motivation: Due to motivation being a very complex process, many researchers have studied about motivation through several dimensions and developed some theories. These theories help to develop a better understanding about the motivation phenomenon. One such theory called as Maslow’s Need Hierarchy Theory is considered fundamental to the understanding of the motivation process. Abraham Maslow was a well-known Psychologist, who highlighted the elements of an overall theory of motivation in a classic paper published in 1943. His theory was based on human needs. Maslow believed that a hierarchy of five needs exists within every human being. These include:
(i) Basic Physiological Needs:
These needs are the most basic in the hierarchy and correspond to primary needs. Hunger, thirst, shelter, sleep and sex are some examples of these needs. In context to an organisation, basic salary helps to satisfy these needs.
(ii) Safety Security Needs:
These needs provide security and protection to the people from physical and emotional harm. Examples are: job security, stability of income, pension plans, etc.
(iii) Affiliation Belonging Needs:
These needs refer to affection, a sense of belongingness, acceptance and friendship.
(iv) Esteem Needs:
These include factors like self-respect, autonomy status, recognition and attention.
(v) Self Actualisation Needs:
It is the highest level of need in the hierarchy which refers to the drive to become what one is capable of becoming. These needs are growth, self-fulfillment and achievement of goals.
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