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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 5 · Set 3 · Q34
(a) Explain the following steps in the process of planning: (i) Setting objectives (ii) Developing premises (iii) Identifying alternative courses of…
(a)
Explain the following steps in the process of planning :
(i)
Setting objectives
(ii)
Developing premises
(iii)
Identifying alternative courses of action
OR
(b)
Explain the following points of importance of decentralisation :
(i)
Quick decision making
(ii)
Develops initiative among subordinates
(iii)
Relief to top management
Marking-scheme solution
Steps in the process of planning:
(i)
Setting objectives
Objectives specify what the organisation wants to achieve.
Objectives may be set for the entire organization, each
department and employees at all levels. If the end result is
clear, it becomes easier to work towards the goal.
(ii)
Developing premises
A manager is required to make certain assumptions about the
future which are called premises.
Assumptions are the base material upon which plans are to be
drawn, which may be in the form of forecasts, existing plans or
any past information about policies.
(iii)
Identifying alternative courses of action
There may be many ways to achieve objectives. All the
alternative courses of action should be identified.
The course of action which may be taken could be either routine
or innovative. An innovative course may be adopted by
involving more people and sharing their ideas.
Explain the following points of importance of decentralisation :
(i)
Quick decision making
(ii)
Develops initiative among subordinates
(iii)
Relief to top management
Importance of decentralization:
(i)
Quick decision making
In a decentralised organisation, since decisions are taken at levels
which are nearest to the points of action and there is no requirement
for approval from many levels, the decision making process is much
faster.
There are also less chances of information getting distorted because it
doesn’t have to go through long channels.
(ii)
Develops initiative among subordinates
Decentralisation helps to promote self-reliance and confidence
amongst the subordinates as when lower managerial levels are given
freedom to take their own decisions they learn to depend on their own
judgment.
A decentralisation policy helps to identify those executives who have
the necessary potential to become dynamic leaders.
(iii)
Relief to top management
Decentralisation diminishes the amount of direct supervision
exercised by a superior over the activities of a subordinate. The
subordinates are given the freedom to act and decide within the
limits set by the superior.
It also leaves the top management with more time which they can
devote to important policy decisions rather than occupying their time
with both policy as well as operational decisions.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.