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Business Studies · 2024 · 4 marks
CBSE 2024 · Region 1 · Set 1 · Q29
Piyush is the Production Manager of a shoe company ‘Comforty’. He has 00 workers under him in his department. Piyush booked a special order for 300…
Piyush is the Production Manager of a shoe company ‘Comforty’. He has
$\displaystyle 00$ workers 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 a $\displaystyle 20$% profit margin. This 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 700. He tried to find out the
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reason but he couldn’t. He reported it to the Chief Executive Officer. For
this the Chief Executive Officer appointed Abhay, who was not only a
specialized Cost Accountant, but also a qualified Human Resource
Manager. After two days, Abhay reported that the set target could have
been completed by only $\displaystyle 800$ workers. This revealed that there was
overmanning in the organization. The organization was not utilizing the
human resources optimally which had led to high labour cost.
The above case highlights an important function of management.
(i)
Identify the function of management discussed above.
(ii)
State any three points of importance of the function identified in (i)
above.
Marking-scheme solution
(i)
Controlling
(ii)
Importance of Controlling :
It helps in accomplishing organisational goals by
(1)
bringing to light the deviations, if any, and indicating
corrective action.
It helps in judging accuracy of standards in the light of
(2)
changes taking place in the organization and
environment.
It helps in making efficient use of resources by ensuring
(3)
that each activity is performed in accordance with pre-
determined standards.
It improves employee motivation as the employees know
(4)
well in advance the standards of performance on the
basis of which they will be appraised.
It ensures order and discipline among employees by
(5)
keeping a close check on their activities.
It facilitates coordination in action as each department is
(6)
governed by pre-determined standards which are well
coordinated with one another.
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CBSE Class 12 Business Studies past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.