Study the following case/situation and express your opinion | 12th OCM Solution

Study the following case/situation and express your opinion

Chapter 1 – Principles of Management

Study the following case/situation and express your opinion

1) Mr. Harshad is an entrepreneur and engaged in the production of eco-friendly utensils. Both male and female workers are working in his factory. All male employees are directly working on machines whereas female employees are working in Packaging Department. Mr. Sharath is working as Finance Manager while Mrs. Naina is working as HR Manager who is responsible for recruiting employees in the factory. On this basis:
i) Identify any one principle of management in the above case.
ii) What is the designation of Mrs. Naina in this organization?
iii) Who is responsible for the overall planning of the organization?

Solution

1. In the above case, the principle of division of work is identified.
2. The designation of Mrs. Naina in this organization is Human Resource Manager (HRM).
3. Mr. Harshad is an entrepreneur, therefore he is responsible for the overall planning of the organization.

2) In ‘Fine Diamonds Ltd.’ 200 employees are working in three shifts. In the first shift 60 employees, in the second shift 60 employees, and in the third shift 80 employees are working without sufficient breaks except for lunch break and shift change break. No employee is able to complete the work at a designated time due to inappropriate time management which results into delay for next shift employees.
i) Identify which scientific principle needs to be followed by the company.
ii) Suggest two scientific techniques which can be used for smooth flow of work in ‘Fine Diamonds Ltd. ‘
iii) Why the work is not being completed in time?

Solution

1. In the above case, the Principle of scientific management called Science, Not Rule of Thumb needs to be followed.
2. Work study based on Fatigue study and Scientific task setting can be used for smooth flow of work in ‘Fine Diamonds Ltd.
3. Following are the reasons for non-completion of work on time are:
   a) Long working hours without sufficient breaks reduce the efficiency of labour.
   b) Due to inappropriate time management which results in delays for the next shift employees.
   c) Standard required output and standard time are not defined by Management of Fine Dimond Ltd.

12th Commerce OCM Textbook Solutions

Chapter Name	Solution Link
1) Principles of Management	Click Here
2) Functions of Management	Click Here
3) Entrepreneurship Development	Click Here
4) Business Services	Click Here
5) Emerging Modes of Business	Click Here
6) Social Responsibilities of Business	Click Here
7) Consumer Protection	Click Here
8) Marketing	Click Here

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Chapter 2 – Functions of Management

1) Mr. Ram, an emerging entrepreneur has designed the structure of his business organization by taking into consideration the required resources such as land, money, machinery, workforce, etc, for his new business. He appointed Mr.Shyam as a manager. Mr. Ram has assigned responsibilities such as recruitment, selection, training, and development, and determining the remuneration of the employees to Mr.Shyam. Mr. Ram has also appointed Mr.Shubham to supervise the work done by the employees according to the standards given to the employees. Mr.Shubham has to also suggest remedies to the employees wherever necessary. In this context, find out the management functions performed by
i. Mr. Ram
ii. Mr.Shyam
iii. Mr.Shubham

Solution:
1) Mr. Ram performs the function of planning and organizing.
2) Mr. Shayam performs the function of staffing because his main duties are to recruit, select, train, and Development of the employees.
3) Mr. Shubham performs the function of controlling because he compares the actual performance of employees to standard performance. He also suggests remedies to overcome deviations.

2) In XYZ Company, Mr. Lele gives instructions to the employees working under him, provides guidance, and motivates them for their best performance. On the other hand, Mr.Sayyad takes an effort to harmonize the work done by the employees of different departments while achieving organizational goals. Mr.Desai is looking after the arrangement of required resources for the business organization. Mention the name of the employee engaged in the following functions:
i. Organization
ii. Direction
iii. Coordination

Solution:
1) Mr. Desai is engaged in the organizing function because he is looking after the arrangement of required resources for the business organization.
2) Mr. Lele is engaged in the function of directing as he gives instructions to the employees working under him, provides guidance, and motivates them for their best performance.
3) Mr. Sayyed is engaged in the function of coordination as he makes an effort to harmonize the work done by the employees of different departments while achieving organizational goals.

Chapter 3 – Entrepreneurship Development

Mr. Soham is a young MBA degree holder, and Mr. Navin is a B.Com graduate. Mr. Soham is willing to start a dairy farm at his village. Mr. Navin is willing to work as a cashier in a Private Company.
i) Find out the dream of Soham and Navin.
ii) State anyone feature of Entrepreneur.
iii) To become a successful entrepreneur, which qualities Mr. Soham should have?

Solution:
1) Dream of Soham is to become an entrepreneur and Navin’s dream is to do a job in a private company.
2) An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”.
3) To become a successful entrepreneur, Mr. Soham should have qualities like an innovator, creator, reactive, and risk bearer.

Chapter 4 – Business Services

1) Ms.Harshali started a new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amounts in her business account. At the same time, she used to pay various payments from this account only.
i) Identify the Type of account maintained by Ms. Harshali.
ii) Suggest any one modern way of money transfer to Ms.Harshali.
iii) What kind of facility does she get on her bank account?

Solution:
1) Ms. Harshali maintains current account.
2) NEFT stands for National Electronic Fund Transfer is one of the modern ways of transferring money. Ms. Harshali can use this facility.
3) MS. Harshali gets an overdraft facility on her current account.

2) Mr. Jagan is a salaried person. He wants to take policy for his two children which assures them protection as well as completes their financial needs once they become major by age.
i) Suggest him a policy that can satisfy the requirements of his children.
ii) Who are beneficiaries of policy?
iii) In the above case which principle is involved?

Solution:
1) Mr. Jagan is a salaried person should take Child insurance policy to satisfy the requirement of his children.
2) Mr. Jagan’s children are the beneficiaries of this policy.
3) In the above case  Principle of Insurable interest in involved.

3) Mr. Sharan is a successful manufacturer. He is having production units at various locations. He is having multiple production units, he has a large stock of raw materials and finished goods. He is worried about safeguarding goods from any unwanted financial loss. He is also required to transfer raw material and finished goods from one unit to other but does not have any facility for that. He also requires funds for expansion.
i) Name the service which will help him to safeguard goods from any damage?.
ii) Which service will help him to remove the difficulty of place?
iii) From which service sector will he get financial support?

Solution:
1) Warehousing is the service that will help him to safeguard goods from any damage.
2) Transport service will help him to remove difficulty of place.
3) Mr.Sharan will get financial support from Banking Sector.

4) Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.
i) Can Mr. Amit take a life insurance policy for his wife and 2 children?
ii) Can Mr. Amit take a marine insurance policy for his factories?
iii) Which type of insurance should Mr. Amit take for protecting his factories from loss due to fire?

Solution:
1) Yes, Mr. Amit can take a life insurance policy for his wife and 2 children.
2) Mr. Amit cannot take a marine insurance policy for his factories.
3) Mr. Amit can take a floating fire insurance policy to protect his factories from loss due to fire.

Chapter 5 – Emerging Modes of Business

1) Abhay purchases some gift articles online from www.flipkart.com. At the same time, Sheetal purchased gifts from e-bay.com. 
i. Which website is related to C2C?
ii. Which website is related to B2C?
iii. What first step does Abhay need to follow?

Solution:
i) eBay.com website is related to C2C.
ii) www.flipkart.com is related to B2C.
iii) Firstly Abhay need to register with www.flipkart.com. Because registration is the first step.

2. Satvik purchases a watch from Titan shop and his friend Shambhavi purchases a watch from an online shopping site.
i. Which shopping is from a traditional business?
ii. Which shopping is from e-business?
iii. Which business involved high risk ?

Solution:
i) Purchase of watch by Satvik from Titan shop is an example of shopping from traditional business.
ii) Purchase of a watch by Shambhavi from an online shop is an example of shopping from an e-business.
iii) From the customer’s point of view online business involves high risk because there is no direct contact, and from a business point of view traditional business involves high risk because it requires more capital.

3. Mr. Ved made his payment by cheque at the same time Mr. Shlok made his payment by fund transfer.
i. Whose payment is faster?
ii. Whose payment is related to traditional business?
iii. Whose payment is related to e-business?

Solution:
i) Payment made by fund transfer is faster than the payment made by cheque.
ii) Mr. Ved’s payment by cheque is related to traditional business.
iii) Mr. Shlok’s payment by fund transfer is related to e-business.

Chapter 6 – Social Responsibilities of Business

1) Yashwant Co. Ltd. provides facilities for their female staff like a daycare center for kids and work from home facility. Even management takes their suggestions while taking the decisions though they are members of a trade union

i) By doing this they are following social responsibilities towards which interest groups?
ii) What values are they presenting?
iii) What kind of responsibilities employer follows in the above case?

Solution:
i) By doing this they are following social responsibilities towards employees.
ii) They are representing social values.
iii) Yashwant Co.Ltd follows social responsibility towards employees.

2) An organization manufacturing paints has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank, which has created many health problems for the nearby villages.

i) Which responsibility is neglected by manufacturing organizations?
ii) What kind of pollution they are doing?
iii) State any one precautionary measure they need to take.

Solution:
1) Responsibility towards the protection of the environment is neglected by the paint manufacturing organization.
2) They are creating water pollution by dumping its untreated poisonous waste on the riverbank.
3) Proper waste management techniques should be used by which waste should be reduced or reused.

3) A vehicle manufacturing company has adopted the following practices. 
A) Only those components will be used by the company which is environment friendly.
B) There will be discharge of harmful wastes only after their proper treatment.
C) Pollution level of every vehicle will be maintained as per international standards.

i) By doing this, the business organization follows social responsibility toward which interest group?
ii) What kind of pollution do they want to avoid?
iii) What kind of message do they want to convey?

Solution:
i) By doing this, the business organization follows social responsibility towards society for the protection of the environment.
ii) They want to avoid air pollution.
iii) They want to convey the message that business should make an effort to protect the environment.

Chapter 7 – Consumer Protection

1) Mr. Ashok visited a shop to buy a pair of shoes of RS. 700. The salesman forced him to buy a pair of bigger size shoes of ordinary company by claiming this size would be suitable to him. After reaching home, he discovered that shoes are still too big for him. He complained about the shoes to the shopkeeper. It was denied by the shopkeeper to replace the shoes despite of availability of stock.
In the above case
i) Which right has been violated?
ii) Comment on the right which has been violated.
iii) Where can Mr. Ashok file his complaint?

Solution:
i) Right to Choose has been violated.
ii) In this case, The salesman forced him to buy a pair of bigger size shoes from an ordinary company by claiming this size would be suitable for him. According to Consumer Rights, Mr. Ashok has the right to select from a range of products and services, offering competitive prices with an assurance of satisfactory quality. Here, the right to choose had been violated.
iii) Mr. Ashok can file complaint in the District consumer forum.

2) Mrs. Meera a resident of Nagpur District bought a washing machine worth Rs. 50,000 without cash memo with a warranty period of 2 years. After 1.5 years she noticed some defects and asked the company to repair or replace it. The company did not accept her complaint despite of the defective product.
In the above case,
i) Suggest suitable redressal machinery to protect her right.
ii) If she is not satisfied with the decision given by redressal machinery, where should she appeal?
iii) What was the negligence of Mrs. Meera while buying the washing machine?

Solution:
i) Mrs. Meera can file complaint in Nagpur District Commission as the value of machinery does not exceed Rs 1 Crore.
ii) If she is not satisfied with the decision given by District Commission, then she can appeal in State Commission within 45 days.
iii) Mrs. Meera bought the washing machine without a cash memo with a warranty period of 2 years. This was the negligence of Mrs. Meera while buying the washing machine.

Chapter 8 – Marketing

1) Mr X purchases goods from nearest shop. Mr Y purchases mobiles from Tokyo. Mr Z of Nandurbar purchases electronic goods from Delhi.

i) From which type of market does Mr.X purchase?
ii) Name the type of market from where Mr.Y deals.
iii) State the type of market from where Mr.Z purchases goods.

Solution:
i) Mr. X purchases goods from the Local Market.
ii) Mr. Y deals from Tokyo i.e International Market.
iii) Mr. Z of Nandurbar purchases electronics goods from Delhi. i.e. National Market.

2) Mr. X deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from the bank. He invests his funds in equity shares.

i) Name the market from where does Mr.X borrows money.
ii) Name the market where does Mr. X invests his funds.
iii) Which type of currency is required for international market?

Solution:
i) Mr. X borrows the money from the capital market.
ii) Mr. X invests his funds in a regulated market.
iii) The different types of foreign currency are required for international market.