BCOC 132 Business Organisation and Management Free Solved Assignment for 2026 - 2027

BCOC 132 Business Organisation and Management 
Free Solved Assignment for 2026 - 2027
Last Date of Submission: 15^th October 2026

COURSE CODE: BCOC-132 (Business Organisation and Management)

ASSIGNMENT CODE: BCOC-132/TMA/2026

COVERAGE: ALL BLOCKS

Maximum Marks: 100

Note: Attempt all the questions.

Q.1 Explain the concept and essential features of business. Distinguish clearly between business, profession, and employment. (10)

Ans: Business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants.

Lewis Henry defines business as, "Human activity directed towards producing or acquiring wealth through buying and selling of goods."

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions.

Characteristics or features of business are discussed in following points:

a)      Exchange of goods and services: All business activities are directly or indirectly concerned with the exchange of goods or services for money or money's worth.

b)      Deals in numerous transactions: A businessman regularly deals in a number of transactions and not just one or two transactions.

c)      Profit is the main Objective: The business is carried on with the intention of earning a profit.

d)      Business skills for economic success: To be a good businessman, one needs to have good business qualities and skills.

e)      Risks and Uncertainties: Business is subject to risks and uncertainties.

Comparison of Business, Profession and Employment:

Basis	Business	Profession	Employment
1. How to Start?	Based on owners decision.	Getting membership of a professional body	Getting an appointment letter.
2. What is its nature?	Providing goods and services to the public.	Rendering of personalized expert services.	Performing work as per service contract
3. Who can start?	No minimum qualification	Requires qualification and training in a specific field.	Requires qualification and training.
4. Return/What will we get?	Profit.	Professional Fees.	Salary.
5.  Capital	Requires Capital as per size of the business.	Requires limited capital.	Not capital required.
6. Risk involved	More risk	Less Risk	No Risk

Q.2 Analyse the impact of emerging business opportunities such as digital platforms, start-ups, and service sectors on the Indian economy. (10)

Q.3 What is managerial control? Explain the process of control and discuss the significance of effective control systems. (10)

Control is one of the managerial functions. These functions start with planning and end at controlling. The other functions like organising, staffing, directing act as the connecting like between planning and controlling. Planning will be successful only if the progress planning and controlled, Planning involves setting up of goals and objectives while controlling seeks to ensure.

In the words of Koontz and O'Donnel, “The measurement and correction of the performance of activities of subordinates in order to make sure that enterprise objectives and plan devised to attain them are being accomplished." The accomplishment of organisational goals is the main aim of every management. The performance of subordinates should be constantly watched to ensure proper implementation of plans. Co-ordination is the channel through which goals can be achieved and necessary.

Steps in Controlling Process

In order to perform his control functions, a manager follows three basic steps. First of all, he establishes the standards of performance to ensure that performance is in accordance with me plan. After this, the manager will appraise the performance and compare it with predetermined standards. This step will lead the manager to know whether the performance has come up to the expected standard or if there is any deviation. If the standards are not being met, the manager will take corrective actions, which is the final step in controlling.

1)      Establishing standards: A standard act as a reference line or basic of comparison of actual performance. Standards should be set precisely and preferably in quantitative terms. It should be noted that setting standards is also closely linked with and is an integral part of the planning process. Different standards of performance are set up for various operations at the planning stage, which serve as the basis of any control system. Establishment of standards in terms of quantity, quality or time is necessary for effective control. Standards should be accurate, precise, acceptable and workable. Standards should be flexible, i.e., capable of being changed when the circumstances require so.

2)      Measurement of performance: This step involves measuring of actual performance of various individuals, groups or units and then comparing it with the standards, which have already been set up at the planning stage. The quantitative measurement should be done in cases where standards have been set in quantitative terms. In other cases, performance should be measured in terms of quantitative factors as in case of performance of industrial relations manager. Comparison of performance with standards is comparatively easier when the standards are expressed in quantitative terms.

3)      Comparison: This is the core of the control process. This phase of control process involves checking to determine whether the actual performance meets the predetermined or planned performance. Manager must constantly seek to answer, “How well are we doing?” When a production supervisor checks the actual output or performance of his department with the production schedule, he is performing comparison aspect of control. When-an executive calculates the performance of his subordinates once in six months or   annuity, he is performing comparison aspect of control. Checking return on in investment is a comparison phase of control.

4)      Taking corrective action: The final step in the control process is taking corrective actions so that deviations may not occur again and the objectives of the organisation are achieved. This will involve taking certain decision by the management like re-planning or redrawing of goals or standards, assignment of clarification of duties. It may also necessitate reforming the process of selection and the training of workers. Thus, control function may require change in all other managerial functions. If the standards are found to be defective, they will be modified in the light of the observations.

Significance of Effective Control

(i) Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action.

(ii) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate or not. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.

(iii) Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. This ensures that resources are used in the most effective and efficient manner.

(iv) Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appreciated.

(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimize dishonest behaviors on the part of the employees by keeping a close check on their activities.

(vi) Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals.

Q.4 Critically analyse major motivation theories and explain their relevance in modern organisations. (10)

Ans: Critical analysis of Various Motivational theories

1. Maslow’s Hierarchy of Needs: Proposed by Abraham Maslow (1940s), this theory assumes people are motivated by five sequential levels of needs:

a) Physiological Needs: Basic survival needs (food, water, air). In organisations: Satisfied by adequate wages, rest rooms, proper lighting, and ventilation.

b) Security/Safety Needs: Physical and emotional safety (job security, housing). In organisations: Satisfied by job continuity, grievance systems, and insurance/retirement benefits.

c) Social Needs: Love, affection, and acceptance by peers. In organisations: Satisfied by teamwork, group activities, and workplace friendships.

d) Esteem Needs: Self-respect and recognition from others. In organisations: Satisfied by job titles, spacious offices, and challenging assignments.

e) Self-Actualization Needs: Realizing one's potential and personal growth. In organisations: Addressed by encouraging participation in decision-making and learning opportunities.

Critical Analysis

A number of research studies have been undertaken to see the validity of hierarchy of needs. Lawler and Suttle collected data on 187 Managers in two different organisations for a period of six months to one year. No evidence was found to support Maslow's theory. They found there were two levels of needs-biological and other needs- and that other needs would emerge only when biological needs were reasonably satisfied. A survey conducted in India of 200 factory worker revealed that they give top priority to job security, earnings and personal benefits-all lower other needs.

It is generally seen that needs do not follow Maslow's hierarchy. The hierarchy is determined by individuals differently. They proceed to follow their own pattern of needs satisfaction. Some people may try for self-actuating needs rather than lower needs. For some person’s esteem needs are more important than social needs.

There is no cause effect relation between and need and behavior. A particular need may cause behavior in different ways in different person. Similarly, one particular behavior may result due to different needs. It is said that higher needs motivate a person when lower needs are reasonably satisfied. The word 'reasonably satisfied' is a subjective matter. The level of satisfaction may be different for persons.

Relevance in Modern Organisations: It provides a baseline structural model for managers to understand that employee needs extend beyond monetary compensation to include safety, team integration, and growth opportunities.

2. Herzberg’s Two-Factor (Dual-Structure) Theory

Developed by Frederick Herzberg through interviews with 200 accountants and engineers, this theory splits workplace factors into two distinct categories:

Factor	Description & Components	Workplace Impact
Hygiene Factors (Work Environment)	Company policies, supervision, salary, job security, working conditions, status, interpersonal relations.	Prevents dissatisfaction, but does not create positive motivation.
Motivators (The Job Itself)	Achievement, recognition, advancement, the work itself, responsibility, personal growth.	Directly creates job satisfaction and high motivation.

3. McGregor’s Theory X and Theory Y: Doughlas McGregor introduced these two theories i.e., Theory X and Theory Y, based on two distinct views of human beings. He proposed, at opposite extremes, two pairs of assumptions about human beings which he thought were implied by the actions of the mangers. Theory X deals with one extreme, based on one set of assumptions and Theory y deals with another extreme based on another set of assumptions. These theories are not based on any research, but according to McGregor, these are intuitive deduction.

Critical Analysis

* These theories are intuitive deductions rather than empirical research-backed conclusions.

* Represents extreme ends of a spectrum, whereas real employee behavior often lies in between depending on situations.

Relevance in Modern Organisations: Highlights the shift from authoritarian management (Theory X) to participative, trust-based environments (Theory Y) that foster empowerment and innovation.

4. Vroom’s Expectancy Theory: Victor Vroom made an important contribution to the understanding of the concept of motivation and the decision process that people use to determine how much effort they will expend on their jobs. He said that a person’s motivation towards an action at any time would be determined by an individual’s perception that a certain type of action would lead to a specific outcome and his personal preference for this outcome. This model is based on the belief that motivation is determined by the nature of the reward expect to get a result of their job performance. There are three variables in Vroom’s model given in the form of an equation. Since the model is a multiplier, the entire three variables must have high positive value to imply motivated performance choices. If any of the variable is zero, the probability of motivated performance tends to be zero.

MOTIVATION = VALENCE X EXPECTANCY X INSTRUMENTALITY

Critical Analysis: The plus points of this theory are:

a)      The expectancy model is highly useful in understanding organizational behaviour. It can improve the relationship between the individual and the organizational goals. This model explains how individuals’ goals influence his efforts and like need-based models reveal that individual behaviour is goal oriented.

b)      The expectancy theory is a cognitive theory, which values human dignity. Individuals are considered rational human beings who can anticipate their future on the basis of their beliefs and expectations.

c)      This theory helps the managers in looking beyond what Maslow and Herzberg implied. According to him motivation does not mean satisfying the unsatisfied needs. The managers must make it possible for an employee to see that effort can result in appropriate need satisfying rewards.

Despite these plus points, there are some drawbacks of Vroom’s expectancy model as given below:

a)      Vroom’s theory is difficult to research and apply in practice. This is evident by the fact that there have been a very few research studies designed specifically to test Vroom’s theory.

b)      This theory assumes man to be a rational human being who makes all the decisions consciously. But there are numerous instances where decisions are taken with no conscious thought. This is particularly true for routine jobs.

c)      Although, it is an important theory of motivation but it is quite complex. Many managers, in actual organizational situations, do not have the time or sources to use a complex system on the job.

Relevance in Modern Organisations: Reminds leaders to ensure clear performance metrics and ensure that employees genuinely trust that high performance will lead to meaningful rewards.

Q.5 Describe the concept of organisation. Discuss the importance of organisational structure and departmentalisation in management. (10)

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Q.6 Discuss the role of technological innovation and skill development in enhancing business competitiveness in India. (6)

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Q.7 Explain the different forms of business ownership. Evaluate their relative merits and limitations. (6)

Meaning of Sole Proprietorship: The term ‘sole’ means single and ‘proprietorship’ means ‘ownership’. So, only one person is the owner of the business organisation. This means, that a form of business organisation in which a single individual owns and manages the business, takes the profits and bears the losses, is known as sole proprietorship form of business organisation.

J.L. Hanson: “A type of business unit where one person is solely responsible for providing the capital and bearing the risk of the enterprise, and for the management of the business.”

Merits of Sole Proprietorship:

1. Complete Control: The owner exercises full control over all aspects of the business, from operations to decision-making, allowing for efficient execution of strategies.

2. Direct Motivation: In sole proprietorship form of business organisations. the entire profit of the business goes to the owner. This motivates the proprietor to work hard and run the business efficiently.

3. Flexibility: Quick decision-making is possible due to the absence of bureaucracy, enabling prompt adaptation to changing market conditions.

Limitations of sole proprietorship:

1. Unlimited Liability: The owner's personal assets are at risk. Business losses or debts can lead to personal financial implications.

2. Limited Resources: Sole proprietors may struggle to raise substantial capital which leads to limiting potential for business expansion or innovation.

3. Skill Constraints: The owner's skills and expertise can be limiting, potentially affecting the range of services or products offered.

Partnership is an association of two or more people who agreed to do business and share profits and losses arises from it in an agreed ratio. The partners act both as agents and principals of the firm.

In India, Partnership firm is governed by the Indian Partnership Act 1932. Section 4 of this act defines partnership as: "The relationship between persons, who have agreed to share the profits of a business carried on by all or any one of them acting for all."

Merits of Partnership Form of Business Organisation

1. Easy to Form: A partnership can be formed easily without many legal formalities. Since it is not compulsory to get the firm registered, a simple agreement, either in oral, writing or implied is sufficient to create a partnership firm.

2. Availability of Larger Resources: Since two or more partners join hands to start partnership firm it may be possible to pool more resources as compared to sole proprietorship form of business organisation.

3. Better Decisions: In partnership firm each partner has a right to take part in the management of the business. All major decisions are taken in consultation with and with the consent of all partners. Thus, collective wisdom prevails and there is less scope for reckless and hasty decisions.

Limitations of Partnership Form of Business Organisation

A partnership firm also suffers from certain limitations. These are as follows:

1. Unlimited Liability: The most important drawback of partnership firm is that the liability of the partners is unlimited i.e., the partners are personally liable for the debt and obligations of the firm. In other words, their personal property can also be utilised for payment of firm’s liabilities.

2. Continuity Concerns: A partnership's continuity can be disrupted if a partner decides to leave, potentially requiring a re-evaluation of the business.

3. Limited Capital: Since the total number of partners cannot exceed 20, the capacity to raise funds remains limited as compared to a joint stock company where there is no limit on the number of shareholders.

LLP is simply a combination of Partnership and Company form of business organisation. It is a corporate business vehicle that enables profession expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner. It provides an alternative to the traditional partnership firm with unlimited liability.

Section 2(1) (n) defines the expression ‘limited liability partnership’ as a partnership formed and registered under LLP Act.

Advantages of LLPs:

1. Limited Liability: The primary advantage of an LLP is that partners are not personally responsible for the debts and liabilities of the business. Their personal assets are protected, and their liability is limited to their investment in the LLP.

2. Flexibility: LLPs provide the flexibility of a partnership in terms of management and operations. Partners can actively participate in decision-making or appoint designated managers.

Limitations of LLPs:

1. Complex Formation: Establishing an LLP involves specific legal formalities, including registration and filing requirements, which might be more complex than a sole proprietorship or partnership.

2. Shared Liability: While partners' personal liability is limited, they might still be responsible for liabilities arising from their own actions or negligence.

The Joint Hindu Family (JHF) business is a form of business organisation run by Hindu Undivided Family (HUF), where the family members of three successive generations own the business jointly. The head of the family known as Karta manages the business. The other members are called coparceners and all of them have equal ownership right over the properties of the business.

The membership of the JHF is acquired by virtue of birth in the same family. There is no restriction for minors to become the members of the business.

Merits of HUF:

1. Continuity: The HUF ensures the continuity of the family's business and wealth over generations, providing financial security.

2. Pooling of Resources: Combining resources from various family members enhances the capital available for business activities.

3. Collective Decision-Making: While the Karta holds managerial authority, major decisions are often made collectively, benefiting from diverse perspectives.

Limitations of HUF:

1. Limited Professionalism: Business decisions might be influenced by family dynamics and personal considerations, potentially affecting efficiency. There is possibility of absence of professionalism in decision making.

2. Conflict Potential: Differences among family members regarding business strategies or roles can lead to conflicts, disrupting operations.

3. Gender Bias: The traditional structure often gives managerial authority to the eldest male, limiting opportunities for female family members.

A company is an artificial person created by law, having a separate legal entity, with a perpetual succession and a common seal. It is an association of many persons who contribute money or money’s worth to a common stock and employs it for a common purpose. The common stock so contributed is denoted in terms of money and is called capital of the company. The persons who contribute it or to whom it belongs are members. The proportion of capital to which each member is entitled is his share.

Advantages of Joint Stock Company:

1. Limited Liability: One of the main advantages is that shareholders' liability is limited to the extent of their investment in the company. Personal assets are protected from business debts.

2. Large Capital Base: Joint stock companies can raise substantial capital by issuing shares to a large number of investors. This capital is crucial for expansion and growth.

3. Ease of Transfer of Ownership: Shareholders can easily buy or sell their shares in the stock market, allowing for smooth transfer of ownership without disrupting business operations.

Limitations of Joint Stock Company:

1. Complex Formation: Establishing a joint stock company involves legal formalities, documentation, and regulatory compliance that can be more complex than other business structures.

2. Loss of Control: As ownership is divided into shares, individual shareholders might have limited control over company decisions, especially in larger corporations.

3. Shareholder Conflicts: Disagreements among shareholders can arise over management, policies, and objectives, potentially leading to conflicts and affecting business operations.

Meaning of Co-operative Society: The term cooperation is derived from the Latin word ‘co-operari’, where the word ‘Co’ means ‘with’ and ‘operari’ mean ‘to work’. Thus, the term cooperation means working together. So those who want to work together with some common economic objectives can form a society, which is termed as cooperative society. It is a voluntary association of persons who work together to promote their economic interest.

Merits of Cooperative Society

The cooperative society is the only form of business organisation which gives utmost importance to its members rather than maximising its own profits. The merits of this form of business organisation are given below:

(a) Easy to Form: Any ten adult members can voluntarily form an association get it registered with the Registrar of Cooperative Societies. The registration is very simple and it does not require much legal formalities.

(b) Limited Liability: The liability of the members of the cooperative societies is limited upto their capital contribution. They are not personally liable for the debt of the society.

Limitations of Cooperative Society

(a) Limited Capital: Most of the cooperative societies suffer from lack of capital. Since the members of the society come from a limited area or class and usually have limited means, it is not possible to collect huge capital from them. Again, government’s assistance is often inadequate for them.

(b) Lack of Managerial Expertise: The Managing Committee of a cooperative society is not always able to manage the society in an effective and efficient way due to lack of managerial expertise. Again due to lack of funds they are also not able to derive the benefits of professional management.

Q.8 Explain the importance of marketing and human resource management in achieving organisational goals. (6)

Ans: Both Marketing and Human Resource Management (HRM) serve as foundational pillars of an organisation. While HRM focuses on building internal capability, Marketing focuses on creating external value—together driving sustained performance and growth.

Importance of Marketing in Achieving Goals

a) Marketing bridges the gap between the firm and its external environment by identifying customer needs and transforming them into profitable offerings.

b) Revenue & Profit Generation: Marketing directly generates cash inflows for the firm by promoting products, driving sales, and expanding market share.

c) Customer Satisfaction & Retention: By conducting market research, marketing ensures that products/services match consumer preferences, creating long-term brand loyalty.

d) Creating Demand & Competitive Advantage: Strategic pricing, promotion, and distribution channels create awareness, differentiate the firm from competitors, and stimulate demand.

e) Market Expansion: Helps the enterprise identify new target markets, launch innovative offerings, and adapt to shifting economic trends.

Importance of Human Resource Management (HRM) in Achieving Goals

a) HRM manages the organisation's most critical asset—its workforce. It aligns individual capabilities with strategic business objectives.

b) Acquiring the Right Talent: Ensures the firm recruits, selects, and places qualified personnel in roles where they can contribute effectively.

c) Skill Enhancement & Development: Through continuous training and orientation, HRM improves employee productivity, adaptability, and performance standards.

d) Employee Motivation & Retention: Fair compensation structures, performance appraisals, and employee welfare policies keep workforce morale high and reduce turnover.

e) Harmonious Work Environment: Maintains smooth industrial relations, resolves workplace grievances, and fosters a collaborative culture aligned with corporate goals.

Q.9 Explain the communication process in an organisation. Discuss the major barriers to effective communication and suggest remedies. (6)

Ans: Process of Communication: Communication is an interdependent chain of actions that enables the exchange of information. The key components in the process are:

1.    Sender: The initiator (speaker, writer, etc.) who wants to share a message.

2.    Ideation: The preliminary step where the sender generates, selects, and arranges ideas sequentially.

3.    Message: The core content (verbal or non-verbal) to be conveyed.

4.    Encoding: Converting ideas into understandable words, symbols, or gestures for transmission.

5.    Transmission: Sending the encoded message through appropriate media and channels.

6.    Receiver: The target audience (listener, reader, viewer); the ultimate destination of the message.

7.    Decoding: The receiver translating and interpreting the symbols back into clear ideas.

8.    Behaviour of the Receiver: The response or action taken by the receiver upon receiving the message.

9.    Feedback: The receiver's reaction provided back to the sender, confirming whether the message was correctly interpreted.

Major Barriers to Effective Communication

1.    Physical Barriers (Receiver-Oriented): Environmental factors such as distracting noise, shift timing differences, and time/distance hurdles between parties.

2.    Socio-Psychological / Personal Barriers (Receiver-Oriented): Personal attitudes, emotions, motives, individual differences, class/cultural differences, and a lack of proper planning.

3.    Organizational Barriers (Sender-Oriented): Structural issues including multi-layer hierarchical distance (causing filtering), diversion or intentional colouring/twisting of information, status differences, and goal conflicts.

4.    Semantic Barriers (Sender-Oriented): Language issues such as words with multiple meanings, denotative vs. connotative misinterpretations, offensive communication styles, unclear assumptions, and selective perception.

5.    Mechanical Barriers (Sender-Oriented): Systemic flaws including information overload (exceeding mental capacity) and loss of transmission (information distortion over multi-person networks).

Remedies (Steps to Overcome Barriers)

·       Two-Way Communication: Establish a clear upward and downward communication flow to build mutual understanding.

·       Strengthen Communication Networks: Simplify procedures, reduce hierarchical layers, and decentralize authority.

·       Promote a Participative Approach: Involve subordinates in decision-making to build trust and cooperation.

·       Use Appropriate Language: Use simple, familiar, and unambiguous language while avoiding complex jargon.

·       Build Credibility: Ensure leaders align actions with words to foster trust among team members.

·       Practice Good Listening: Managers should listen attentively to understand subordinate needs and collect feedback.

·       Select Effective Channels: Choose media that ensure timely, accurate, and undistorted delivery.

·       Prevent Decision-Making Errors: Apply simple evaluation techniques to minimize common misinterpretations before sending messages.

Q.10 Explain economic and non-economic activities with suitable examples. (6)

Ans: a) Economic activities are those that are concerned with production, exchange and distribution of goods and rendering of services to earn money.

Examples:

A teacher teaching in a school for a salary.

A doctor treating patients in a clinic for a consultation fee.

A shopkeeper selling goods to customers for profit.

A worker manufacturing goods in a factory for daily wages.

b) Non-economic activities are those activities, which are pursued by human beings because of social, psychological and religions sentiments.

Examples:

A mother cooking food for her family.

A doctor treating poor patients for free at a charitable camp.

A person attending daily prayers at a temple, church, or mosque.

A volunteer distributing food packets during flood relief operations.

Classification of Business Activities:

a) Industry: It includes production or processing of goods and services. It is concerned with changing the form of the products. It gives form utility to the products.

b) Commerce: It includes all those activities which are concerned with removing all the hindrances in the movement of goods from the manufacturer to the consumers. It includes trade and auxiliaries to trade.

c) Trade: Trade means exchange of goods and services between sellers and buyers with profit motive.

Difference between economic and non-economic activities

1. Objective: Economic activities are performed to earn money. Non- economic activities are performed out of love and affection or out of duty. The purpose of undertaking these activities is to get some satisfaction.

2. Scope: Economic activities may take place between employers and employees or between producers and consumers. Non-economic activities may be among members of a family, social worker and those being served etc.

3. Money Measurement: Economic activities are measured in money or money’s worth while non-economic activities have no money value.

4. Philosophy: Economic activities are backed by pragmatic philosophy of earning something out of them. Non-economic activities are performed with idealistic philosophy of attaching more importance to human values and less to money.

5. Expectation: The expectation of performing economic activities is to earn income or profit. Non-economic activities are performed to get mental satisfaction.

Q.11 Differentiate between private sector and public sector enterprises. (5)

Ans: The public sector consists of various organisations owned and managed by the government. These organisations may either by partly or wholly owned by the central or state government. They may also be a part of the ministry or come into existence by the Special Act of Parliament. Its features are:      

(1) It is owned by central or state government.

(2) It is managed by persons appointed by government.

(3) Its main objective is to provide service to society.

A private sector enterprise or a private enterprise is one, which is owned, managed and controlled by an individual or group of persons (individuals) jointly. Its features are:

(1) It is owned by private individual or groups

(2) It is managed by owners or managers appointed by them.

(3) Its main objective is to earn profits.

Difference between public and private sector:

Public Sector	Private Sector
(1) It is owned by central or state government. (2) It is managed by persons appointed by government. (3) Its main objective is to provide service to society. (4) Managers are accountable for its financial results to the government.	(1) It is owned by private individual or groups (2) It is managed by owners or managers appointed by them. (3) Its main objective is to earn profits. (4)Managers are accountable for its financial result to its owners.

Q.12 Explain the concept of authority, responsibility, and accountability. (5)

Ans: In every organisation managers are assigned lot of work and manager alone cannot perform all the work. So, he divides the work among different individuals working under his according to their qualification and gets the work done from them. After passing the responsibilities the manager also shares some of his authority with his subordinates. To make sure that his subordinates perform all works effectively and efficiently the manager creates accountability and this whole process is known as delegation of authority.

Elements of Delegation of Authority:

Responsibility: Responsibility means assigning the work amongst subordinates. The process of delegation begins when manager divides his work among different individuals.

Authority: Authority means power to take decision. To carry on the responsibilities every employee needs to have some authority, so, when managers are passing their responsibilities to the subordinates, they also pass some of the authority to the subordinates.

Accountability: To make sure that his subordinates perform all works effectively and efficiently the manager creates accountability. Accountability means subordinates will be answerable for the non-completion of the task. It is the third and final step of delegation process.

Q.13 What is leadership? Explain any two leadership styles. (5)

Ans: Leadership is the ability to build up confidence and deal among people and to create an urge in them to be led. To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and personal integrity. Different situations may demand different types of leadership.

Leadership means influencing the behaviour of the people at work towards realizing the specified goals. It is the ability to use non-coercive (no force) influence on the motivation, activities and goals (MAG) of others in order to achieve the objectives of the organisation.

Koontz and 0' Donnel “Leadership is the ability of a manager to induce subordinates to work with confidence and zeal”.

Leadership Styles or Types of Leaders

1.    Autocratic or Authoritarian Style leader: An autocratic also known as authoritarian style of leadership implies wielding absolute power. Under this style, the leader expects complete obedience from his subordinates and all decision-making power is centralized in the leader. No suggestions or initiative from subordinates is entertained. The leader forces the subordinates to obey him without questioning. An autocratic leader is, in fact, no leader. He is merely the formal head of the organisation and is generally disliked by the subordinates who feel comfortable to depend completely on the leader.

Advantages:

a)   Reduced stress due to increased control

b)   A more productive group ‘while the leader is watching’

c)    Improved logistics of operations

d)   Faster decision making

Disadvantages:

a)   Short-termistic approach to management.

b)   Manager perceived as having poor leadership skills

c)    Increased workload for the manager

d)   People dislike being ordered around

e)   Teams become dependent upon their leader

2.    Laissez-faire or Free-rein Style Leader: Under this type of leadership, maximum freedom is allowed to subordinates. They are given free hand in deciding their own policies and methods and to make independent decisions. The leader provides help only when required by his subordinates otherwise he does not interfere in their work. The style of leadership creates self-confidence in the workers and provides them an opportunity to develop their talents. But it may not work under all situations with all the workers, may bring problems of indiscipline. Such leadership can be employed with success where workers are competent, sincere and self-disciplined.

Advantages:

a)   No work for the leader

b)   Frustration may force others into leadership roles

c)    Allows the visionary worker the opportunity to do what they want, free from interference

d)   Empowers the group

Disadvantages:

a)   It makes employees feel insecure at the unavailability of a manager.

b)   The manager cannot provide regular feedback to let employees know how well they are doing.

c)    Managers are unable to thank employees for their good work.

The manager doesn’t understand his or her responsibilities and is hoping the employees can cover for him or her.

Q.14 State the Taylor's principles of management. (5)

Ans: Ans:  Scientific Management may be defined as the scientific study and analysis of work, scientific selection and training of employees, standardization and scientific rate setting. It is an art of knowing exactly what a manager wants his workers to do and seeing it that they do it in the best and cheapest way.

According to F.W. Taylor who is regarded as the father of scientific management, “Scientific Management is the art of knowing exactly what you want your men to do and seeing that they do it in the cheapest way”.

Taylor’s philosophy consists of the following principles of scientific management:

a) Replacing rule of thumb with science: According to this principle, scientific investigation should be applied in the scientific management, which will replace the rule of thumb. Taylor had made study of every job and fixed the method and timing for performing the job so that the worker should know that what, when, and how is required to perform the job. This principle is the starting point of scientific. This principle is concerned with selecting the best way of performing a job through the application of scientific analysis and not by intuition or hit and trial methods.

b) Harmony in group action: This principle states that there should be cooperation between the management and the workers. In order to achieve the best possible results from the business operations, it is essential that there should be harmonious relations between the management and the workers.

c) Division of responsibility between workers and management: According to this principle there should proportionate division of the responsibility between the managers and the workers, clearly defined, and predetermined.

d) Maximum Output: Scientific Management aims for the continuous production and productivity. According to this principle management and the workers should try to increase the production at the minimum cost.

e) Selection, training, and development of the workers in the scientific manner: According to this principle the right men are placed on the right job. The jobs are determined first for which the workers are required and then the qualifications required for the job are determined. On the basis of these standards the employees are selected.

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