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NEW TERMS INTRODUCED IN BUSINESS STUDIES
CLASS XII 2012-13
UNIT–4: PLANNING
Sub Topic: Single Use and Standing Plans
PLAN
A plan is a specific action proposed to help the organization achieve its objectives
...
The importance of developing Plans is
evident from the fact that there may be more than one means of reaching a particular goal
...


SINGLE USE PLAN
A Single use plan in a business refers to plan developed for a one-time project or event that
has one specific objective
...
It is specifically
designed to achieve a particular goal
...
The length of a single-use plan differs greatly depending on the project in question,
as a single event plan may only last one day while a single project may last weeks or months
...
After the campaign runs its course, the
short term plan will lose its relevance except as a guide for creating future plans
...
They are usually made once and retain their value over a period of
years while undergoing revisions and updates
...
For example, Business plan to establish a new business
...


2

DIFFERENCE BETWEEN SINGLE USE AND STANDING PLANS

BASIS

OF SINGLE USE PLANS

STANDING PLANS

DIFFERENCE

1
...


organizational situations that occur
repeatedly
...
Objective

Single use plan is developed to Standing plan however is developed
carry out a course of action that is for activities that occur regularly over
not likely to be repeated in future a period of time
...


Single
3
...

event
...
Stability

Single use plans are discarded Standing plans are relatively stable
when the situation, project or and used over and over again with
event is over
...
Example

Budget

for

necessary modifications or updations
...


for a particular post in the company
...


What do you understand by single use plans?

2
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XYZ Limited follows a standard procedure for recruiting Production Manager for
its company
...


4
...
What kind of plan is it? Justify your answer
...


(1 Mark)

(1+2= 3 Marks)

Explain the objectives of single use plans and Standing plans with suitable examples
...


Differentiate between Single use plans and Standing plans?

(4 Marks)

UNIT–6: STAFFING
Sub Topic: Induction Training

Induction training 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 surroundings, the job and the
business
...

The induction provides really a good opportunity to socialize and brief the newcomer with
the company’s overall strategy, performance standards etc
...


Questions:1
...


What is the main objective of Induction training?

(1 Mark)

3
...


Write a short note on Induction training?

(3 Marks)

4

UNIT 7: DIRECTING
Sub Topic: Styles of Leadership
Leadership styles refer to a leader’s behaviour
...

A Leadership style is the result of the leader’s philosophy, personality, and experience and
value system
...

Different types of leadership style are:
1
...


Participative leadership – Democratic

3
...

POWER STYLE
Autocratic

Participative

Free-rein

Leader

Leader

Leader

Employees

Employees

Employees

Leader

Whole Group

Employees

5

1
...
He determines the policies
for the group without consulting them
...

Under this style, all decision making power is centralized in the leader as shown in the
diagram
...

It is like “bossing people around
...


A

B

C

D

A is the leader – Boss – Centered – Leadership
When should authoritarian leadership be applied?
- It is best applied to situations where there is little time for group decision-making
- or where the leader is the most knowledgeable member of the group
...
Democratic or Participative Leader
A democratic leader gives order only after consulting the group and works out the policies
with the acceptance of the group
...
He favours decision making by the group as shown in the diagram
...

Using this style is of mutual benefit – it allows them (subordinates) to become part of the
team and helps leaders (seniors) to make better decisions
...

- It is also important to have plenty of time to allow people to contribute, develop a plan
and then vote on the best course of action

-

This style should NOT be used when:
In situations where roles are unclear or time is of the essence, democratic leadership can lead
to communication failures and uncompleted projects
...
Laissez Faire or Free Rein Leader
A free rein leader gives complete freedom to the subordinates
...
He depends largely upon the group to establish its own goals and work out its own
problems
...
The
leader exists as a contact man with the outsiders to bring information and the resources the
group requires for accomplishing the job
...
[French: laissesz means to let / allow and faire means to do
...

Followers have pride in their work and the drive to do it successfully on their own
...

Followers are trustworthy and experienced
...

The leader cannot or will not provide regular feedback to their followers
...
Ulhas, CEO of I Create India, distributes the work for the month
...
Ranju, Ms
...
Geeta and Mr
...
(Mr
...
Ulhas has realized that due to absence of Ms
...
He discusses with his staff members to meet the dead line
...
(Mr
...
Ulhas wants to give a party to all staff members for timely completion of the task
...
Ulhas asks the other members of staff to fix the venue and the menu for the
occasion
...
Ulhas is behaving as a free rein leader)

8

Most appropriate style of leadership for a leader/manager depends upon:
the demands of the situation
the requirements of the people involved
the challenges facing the organization

Questions:
1
...


(1 mark)

2
...
What is ‘laissez faire style’ of leadership?

(1 mark)

4
...
A, a supervisor in a manufacturing unit humiliates a worker in front of other
workers
...
Ms
...
All her subordinates
respect her because she does not force her opinions on others and listens to their
suggestions as well as problems before taking decisions
...
Mr
...
He firmly tells them that if the task is not completed than strict
action will be taken against them
...

(3 marks)
[Hint: Autocratic Leadership Style]
7
...
Mr
...
He frames policies only after consulting them
...

(4 Marks)
[Hint: Democratic Leadership Style]
9
...
R
...
Which is the style of leadership being followed by him? Is he
right in doing so? Justify
...
Ms
...
) in a well known electronics company,
gives complete freedom to her subordinates who are developing latest technology
products in their field
...
She depends largely upon the group
to establish its own goals and work out its own problems
...
Explain the three leadership styles (autocratic, democratic and laissez-faire) and in
what situations are they most effective
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Mr
...
Mr
...
B thinks that
democratic style of leadership provides better results in the performance of employees
...
C emphasizes on laissez faire style of leadership
...
Controlling is a goal oriented function
...
So it is completely
a goal oriented function
...
Controlling is an all pervasive function
...
For
example the top managers are concerned with administrative control, which is exercised
through broad policies, plans and other directives
...
At the lower level, supervisors exercise operational control to ensure successful
performing of actual operations
...
Controlling is a continuous function
Control is not a one time activity
...
The resultant deviations, if any, are corrected as
per the need of the situation
...
, a ready made garment
manufacturing unit sets a target of manufacturing 10,000 premium shirts in a month and is
only able to manufacture 8,000 shirts than the controlling mechanism will help in finding the
deviation and causes associated with it
...

4
...

Effective control is not possible without analyzing our past mistakes so from this point of
view we can call it backward looking
...
So we cannot
ignore the forward looking aspect of it as well
...
Controlling is a dynamic process- Since controlling requires taking reviewable methods,
changes have to be made wherever possible
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Controlling is a positive process
George Terry says, the function of controlling is positive – it is to make things happen, i
...
to
achieve the goal within stated constraints, or by means of the planned activities
...

Controlling is a managerial necessity and a help, not an impediment or a hindrance
...
Which feature of controlling does it refer to when it is said that controlling is
exercised at all levels of management?
(1 mark)
2
...


(3 Marks)

3
...
How is controlling both forward looking as well as backward looking?

(3 marks)

6
...


(4 marks)

7
...
X and Mr
...
They both have different point of views
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X says that “controlling is backward looking” while Mr
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Who do you think is right? Give reason
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ABC Ltd
...
The target production
is 500 shirts per day
...
The actual production has been varying between 400-450 shirts
...

(3 marks)
11

UNIT 10: FINANCIAL MARKETS
Sub Topic: Depository Services and Demat Account
Depository services
‘Depository’ is an institution / organization which holds securities (e
...
shares, debentures,
bonds, mutual funds etc
...
The services provided
by a Depository are termed as ‘Depository Services’
...
) and CDSL (Central Depository Services
Ltd
...
e
...
Demat (Dematerialized)
account refers to an account which an Indian citizen must open with the depository
participant (banks, stockbrokers) to trade in listed securities in electronic form wherein one
can hold shares of various companies in the Dematerialized {electronic} form
...

Saves time
No paperwork
...

Ease in trading
...

No counterfeiting of security certificate
...

Risk of mutilation and loss of security certificate is eliminated
...
What do you mean by ‘Depository’?

(1 Mark)

2
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What is the full form of NSDL?

(1 Mark)

4
...
Where is a DEMAT account used?

(1 Mark)

6
...
What is the most important
requirement for this?
(1 Mark)
7
...
What is the name of service
provided by Depository?
(1 Mark)
8
...
What are the benefits of opening a DEMAT account?

(3 Marks)

10
...
As a Financial advisor what will you
suggest him to do and why?
(3 Marks)
(Hint: Open a Demat account, explain benefits)

UNIT 11: MARKETING MANAGEMENT
Sub Topic: Qualities of a good salesman
1
...


2
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He should be able to talk in
terms of the customer's interest and must create pleasant atmosphere to achieve favorable
attention and interest on the part of the prospective buyer
...


Technical quality: He should have full and updated knowledge about the product he is
selling- its features, price and variety available
...


4
...
He should be confident while he is communicating and should be able to answer all
the queries of the customer satisfactorily
...


Honesty: It is a very important quality of a good salesman
...
A salesman who
resorts to selling inferior goods, charging higher rates, providing wrong information, giving
exaggerated claims etc will cause a decline in goodwill of the firm in the long run
...


Courtesy: A salesman who is polite and courteous generates buyer’s confidence and
selling the product becomes easy
...


Persistent: “Never give up”, is the spirit that a salesman should have
...


8
...


Questions:
1
...
The customer bought it but after washing it, the coat got shrunk
...
Aftab is scared of facing people
...

(3 marks)
3
...
What is the most important requirement for personal selling? What skills are needed
to perform it effectively?
(5 marks)
[Hint: To have a good salesman]

UNIT 11: MARKETING MANAGEMENT
Sub Topic: Public Relations
Public Relations: Concept
The concept of Public Relations involves a variety of programmes to promote and protect a
company’s image or its products
...
It is done through – news,
speeches by corporate leaders, organizing events like sports events, concerts, seminars etc
...
”
14

“The Chartered Institute of Public Relations” defines Public Relations as ‘a strategic
management function that adds value to an organization by helping it to manage its
reputation;
Public relations covers a wide range of tactics, usually involve providing information to
independent media sources in the hope of gaining favorable coverage
...

Public Relation Tools include1
...

It is written in the form of a story with an attractive heading so that the media quickly grasps
and circulates the message through newspapers/radio/television/internet
...
Press Kits: It is a comprehensive package of information outlining a company's products
and services most frequently sent to members of the press
...
Brochures: It is a booklet published by the organization which contains the organization’s
background, its ethics, vision, mission, its past, present and future projects, its USP, etc
...


4
...
The content of a newsletter is presented in a writing style that is less
formal and letter-like
...


15

5
...
The ingredients
are time, place, people, activities, drama, showmanship; one special event may have many
subsidiary events, such as luncheons, banquets, contests, speeches, and many others as part of
the build up
...
Conferences and Seminars: Conferences and seminars are conducted for making people
aware about the organization
...
The members are contacted through telephones and asked to attend
seminar
...
Websites: A website acts as a window for the outside world to know an organization
...

ROLE OF ‘PR’ IN AN ORGANISATION
(i)

Smooth functioning of business and achievement of objectives
...

– Up keep of parks, gardens, sponsoring sports activities etc
...


(iv)

Establishing positive image of products facing adverse publicity
...
In this situation, the companies attracted
severe criticism from various sectors like consumers, investors, government etc
...

(v)

It acts as a supplement to advertising in promoting (new and existing) products
...
What does the term ‘public relations’ mean?

(1 mark)

2
...

3
...
A new movie “XYZ” is to be released in the month of December
...

(4 marks)
16

5
...
What
will be the role of public relations department in this case
...

Thus, a complaint can be filed against:

I
...

2
...

Deficiency means any imperfection, shortcoming or inadequacy in the quality, nature and
manner of performance of services
...

The term service includes any service that is not rendered free of charge
...
The courts have however been proactive in holding that even
departments such as the housing boards are liable for any deficiency in services rendered
...
Against whom can a complaint be filed by a consumer?

(1 Mark)

2
...
What does a ‘deficiency in services’ mean?

(1 Mark)

4
...
Joseph had got a confirmed ticket on Jet Airways
...
Is it a deficiency in service? What relief can Joseph seek
in this regard?
(3 Marks)
6
...
1000/- with
proper receipt
...
The
shopkeeper refused to change or compensate
...
Mamta bought a branded computer for Rs
...
There was a warranty of one year on the computer

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