Karnataka Board Class 9 Social Science Business Studies Chapter 16 Management of Business Solution Exercise Question and Answer
I.) Answer the following questions in a sentence.
1.) What is management?
Answer:- The principles of managing the activities of an enterprise is called management.It is also used to refer to a field of learning or a branch of knowledge
2.) What do you mean by decision making?
Answer:-Decision making is the mental process, of selecting a course of action among several activities. In word words we can say choosing from available options.
3.) What is individual decision and what is collective decision?
Answer:-
- The person who is owner of business or the sole trader takes the decision on his own. They are called individual decisions. These decisions are based on the capability of the individual.
- A group of people as in the case of Partnership firmsandBoardofDirectors as in the case of Joint Stock Companies or Co-operative Societies take decision in group are called Group decisions. Here, a number of people take part in taking a decision.
4.) What is the principle of authority and responsibility in principles of management.
Answer:-This principle refers to the authority and responsibility, which are the combination of official authority and personal responsibility.
Authority and respect should be balanced and go hand in hand.
II.) Answer each of the following questions in about four to five sentences.
1.) What are the principles of management suggested by Henry Fayol?
Answer:-
The following principles are suggested by Henry Fayol
- Division of Work
- Authority and responsibility
- Discipline
- Unity of command
- Unity of Direction
- Sub-ordination of Individual interest to General interest
- Remuneration of Personnel
- Centralisation
- Scalar chain
- Equity
- Stability of security to personnel
- Initiative
- Espirate De-Corps
2.) What are the functional areas of management?
Answer:-
The Managerial functions may be classified into different areas. Some of them are :
(1) Planning
(2) Organising
(3) Staffing
(4) Directing
(5) Co-ordinating
(6) Controlling.
3.) Write about the authority and responsibility, scalar chain and centralization in principles of management.
Answer :-
- Authority and responsibility: This principle refers to the authority and responsibility, which are the combination of official authority and personal responsibility. Authority and respect should be balanced and go hand in hand.
- Scalar chain: it the line of authority from top management to the person working in lowest rank. This chain passes the information to desired person through specified route.
- Centralization : This principle refers to the extent to which authority is concentrated, so that it gives the overall yields. All the decisions and actions at lower levelshould be approved by top level.
4.) What is the need for decision making in management of business?
Answer:-
- In order to achieve the objectives and goals the business organisation has to take decision.
- Decision making solves many problems in the business organisation. While an appropriate decision can bring profit to the organisation, a wrong decision can result in loss
- Suppose abusinessman has to transport goods, he has to take a decision about the mode of transportation – whether to send the goods through a truck, tempo, train or by air
- He has to choose one among the several alternatives and that alternative should be best suited and economical.Thus the decision making plays a very significant role in the business.
5.) What are the important elements of decision making?
Answer:-
The important elements of decision making:
1) Time factor
2) experience
3) wise decision (wisdom)
4) firmness
5) boldness
6) clarity.
6.) What factors are to be kept in mind, while taking a decision?
Answer:-
The following points are to be kept in mind while making decisions:
1) Time factor
2) experience
3) wise decision (wisdom)
4) firmness
5) boldness
6) clarity.
7.) What do you mean by planning and organisation in functional areas of management?
Answer:-
- Planning:It is one of the important functional areas of management. The process of planning includes determination of organizational objective and formulation of plans, policies, strategies, programmes, procedures and schedules.
- Organisation: It is the process of bringing together the man power and material resources. Putting the material resources and man power together into working order to to achieve the goals of that organizationis the main purpose of the organizing area of managerial function.
8.) How is controlling an important area of managerial function?
Answer:- Controlling is the process id comparing actual performance with the set standards of company to ensure whether activities are performed as planned.
The main objectives of controlling area are :
a) to create an atmosphere of order and discipline in the organization to ensure proper co-ordination of activities.
b) helps in measuring the progress towards the organizational goals.
9.) What are the main objectives of controling areas?
Answer:-
The main objectives of controlling area are :
- a) to create an atmosphere of order and discipline in the organization to ensure proper co-ordination of activities.
- b) to ensure confirmation of actual performance with the pre-determined plans.
10.) “Directing and co-ordinations are very important functions in business management”. How?
Answer:-Directingis instructing, guiding, training, supervising and leading and motivating the people of an organization towards accomplishment of the organizational goals and Coordination is the processwhich ensures that different departments andgroups work in syncfor the achievement of the desired goals so Directing and co-ordinations are very important functions in business management because both are the process focusing on achieving the desired goals set by the organization.
III.) Activities.
1.) Meet a sole trader of your area and request him to give you particulars regarding how he takes decisions, regarding day to-day affairs of his business.
Answer:-
A sole trader in my area is one of the shopkeeper.
Shopkeeper has his own place and is the owner of the shop as well.
Shopkeeper ie Mr Yadav he has his own cloth shop.
As per Mr Yadav he is the only owner of his cloth business and is the one who takes all decisions regarding from whether the cloth should be bought, travelers, travel routes, costing, budget, marketingetc.
For Mr Yadav it is easy to handle all day to day affairs of his business because he takes immediate decisions and not need to take approval from others. He will take all small to big decisions.
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