CBSE 2024 · Region 2 · Set 2 · Q23

business environment needs to be taken into consideration.

Piyush is the Production Manager of a shoe company

called 'Comforty'. He has $\displaystyle 1000$ workers working under him in

his department. Piyush booked a special order for $\displaystyle 300$ pairs of

gents shoes at an estimated cost price of ₹$\displaystyle 500$ per pair plus

% profit margin. The order is to be completed within

days. After completion of the order, Piyush found out that the

production cost of one pair of shoes was ₹600. He tried to find

out the reason, but he couldn't. He reported it to the Chief

Executive Officer. The Chief Executive Officer appointed

Abhay to find out the cause. Abhay was not only a specialized

Cost Accountant, but also a qualified Human Resource

Manager. After two days, Abhay reported that the set targets

could be completed with the help of only $\displaystyle 800$ workers, which

revealed that there was overmanning in the organisation. The

organization was not utilizing the human resources optimally,

which had led to higher labour cost.

The above case highlights one of the points of importance of

an important function of management.

(i)

Identify the function of management.

(ii)

State any two points of importance of the function of

(ii)

management identified in part (i), except the one discussed in

(ii)

the above case.