Category: Class 12

Business Services 12th OCM Chapter 4 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 4 Business Services Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 4 Exercise Solutions

1. (A) Select the correct option and rewrite the sentence.

Question 1.
Door to door service is provided by …………….. transport.
(a) railway
(b) road
(c) air
Answer:
(b) road

Question 2.
…………….. creates time utility.
(a) Warehouse
(b) Transport
(c) Communication
Answer:
(a) Warehouse

Question 3.
…………….. warehouses provide facilities for perishable commodities.
(a) Bonded
(b) Cold storage
(c) Government
Answer:
(b) Cold storage

Question 4.
……………. policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time.
(a) Port risk
(b) Voyage
(c) Floating
Answer:
(a) Port risk

Question 5.
Principle of …………….. is not applicable to life insurance.
(a) insurable interest
(b) utmost good faith
(c) indemnity
Answer:
(c) indemnity

1. (B) Match the pairs.

Question 1.

Answer:

1. (C) Give one word/phrase/term for the following sentence.

Question 1.
These warehouses are owned, managed and controlled by central and state governments or public authorities.
Answer:
government warehouse

Question 2.
An art of exchanging ideas, facts, information etc. from one person or entity to another.
Answer:
Communication

Question 3.
A rail system in which the track consists of a single rail or a beam.
Answer:
monorail

Question 4.
A transport system used to carry petroleum and gases.
Answer:
pipeline transport

Question 5.
A ministry who looks after development of surface transport throughout country.
Answer:
Ministry of Road Transport and Highways

1. (D) State whether following statements are true or false.

Question 1.
Business services are important for the growth of business.
Answer:
True

Question 2.
Current Account is opened by salaried persons.
Answer:
False

Question 3.
NEFT stands for National Electric Fund Transfer.
Answer:
False

Question 4.
Air transport is cheapest mode of transport.
Answer:
False

Question 5.
The Internet is the global system of interconnected computer networks that use the internet protocol suite to link devices worldwide.
Answer:
True

1. (E) Find the odd one.

Question 1.
Primary credit co-operative society, state co-operative bank, district co-operative bank, exchange bank.
Answer:
exchange bank

Question 2.
NABARD, RBI, SIDBI, EXIM.
Answer:
RBI

Question 3.
Direct mail, Logistics post, Business post, Parcel
Answer:
Parcel

Question 4.
Endowment policy, Whole life policy, Money back policy, Blanket policy.
Answer:
Blanket policy.

1. (F) Complete the sentence.

Question 1.
The term bank comes from the French word …………….. .
Answer:
Banco

Question 2.
…………….. warehouses provide facilities for perishable commodities
Answer:
Cold storage

Question 3.
In ……………… policy, several ships belonging to one owner are insured under the same policy.
Answer:
fleet

Question 4.
…………….. banking refers to the use of banking services with the help of mobile phones.
Answer:
Mobile

1. (G) Select the correct option and complete the following table.

(RTGS, SIDBI, apex financial institution in banking industry of country, recurring deposit, long term loans)

Answer:

1. (H) Answer in one sentence

Question 1.
What is debit card?
Answer:
A debit card is a card which is used by the cardholders to make purchases and avail of services at different places without making cash payment but payment is deducted from or debited to the account of the debit cardholders immediately.

Question 2.
What is ‘subject matter’ In insurance?
Answer:
‘Subject matter’ In Insurance refers to life, property, cargo or ship, etc. which is Insured against whose insurance policy Is taken.

Question 3.
What is government warehouse?
Answer:
The warehouses which are owned. managed and controlled by the Central and State Governments or public authorities to assist small farmers, businessmen, traders in storing goods at nominal charges are called government Warehouses.

Question 4.
What is air transport?
Answer:
The mode of transport which is operated above the surface of the earth and carries goods and passengers through airways by using different aircrafts Is called air transport.

Question 5.
What is communication?
Answer:
The term ‘communication’ means any exchange of Ideas, facts, information, messages. feelings and emotions among two or more persons in a way that they share common understanding about it.

1. (I) Correct the underlined word and rewrite the following sentences.

Question 1.
Overdraft facility is available for savings bank account holder.
Answer:
Current

Question 2.
Services are tangible in nature.
Answer:
Intangible

Question 3.
Insurance helps to maximize the risks in the business.
Answer:
Minimise

Question 4.
The foreign bank is the apex financial institution in banking industry in the country.
Answer:
Centrals

Question 5.
RTGS stands for Reasonable Time Gross Settlement.
Answer:
real

1. (J) Arrange in proper order.

Question 1.
Claim, Accident, Taking the policy, Compensation.
Answer:
Taking the policy, Accident, Claim, Compensation

Question 2.
Email, Inland letter, Courier
Answer:
Inland letter, Courier, E-mail

2. Explain the following terms/concepts.

Question 1.
Transport
Answer:
(1) Service or facility which creates physical movement of men, materials, goods. animals. etc. from one place (location) to another is called transport. Transportation can be defined as a means of carrying or transferring goods. people, animals, material. etc. from one place to another.

(2) Usually transportation is carried through various modes like land transport (i.e Railways and Roadways), water transport and air transport. It brings mobility both to human resources and physical resources. Transport plays key role in nations economy and economic development. After 1991, in India. development of infrastructure within the country has made progress at rapid rate and today there are different modes of transport operated in India. Transport helps in production. expands market, create place utility in goods and services, brings stability to prices, creates employment opportunities, improves standard of living of the people, provides help during emergency and facilitates economic development.

Question 2.
Communication
Answer:
(1) The term ‘communication’ means any interchange of ideas, messages, facts, information, feelings and emotions among two or more persons In a way that they share common understanding about it. It Is a process of giving away or passing on any information by any person to some other person with the help of some medium. Thus, receiver after receiving the message understands it in the desired form and acts accordingly.

(2) Means of communication consist of magazines, newspaper, post and telegraphs. telephone. Internet, e-mail, television, etc. Communication facilitates transmit business Information more quickly among the businessmen. The difficulty of distance is effectively solved by various means of communication. Effective communication facilitates the development and growth of domestic and international markets which bring prosperity to the country.

Question 3.
Banking
Answer:
(1) The term ‘Bank’ Is derived from the French word ‘Banco’ which means a ‘bench’. In olden days, moneylenders used to display coins and currencies on the tables or benches for the purpose of lending or exchanging. An organisation which is dealing with money is called bank. An institution offering certain financial services such as the safe keeping of money and lending money to needy people is called Bank.

(2) According to the Indian Banking Regulation Act, 1949, bankIng company means “any company which transacts the business of banking in India.” The word banking has defined further as “acceptingfor the purpose of lending or investment of deposits of money from the public repayable on demand or otherwise and withdrawable by cheques. drafts, order or otherwise.” Bank accepts deposits repayable on demand by cheques or drafts and lends or invests the surplus money as a part of normal business. It makes a profit by accepting deposits at a lower rate of Interest and lending money at a higher rate of Interest.

Question 4.
Insurance
Answer:
(1) Business involves various risks like accident, fire, theft, flood, cyclone, etc. It is very difficult for a trader to bear risks of loss. Similarly, human life is subject to various risks such as death by accident, premature death, etc. The specialised agency called insurance company has emerged to provide financial protection against the possible loss due to the happening of such events. Insurance company gives financial protection by charging certain amount as a premium. It. is a risk management, primarily meant to hedge or for compensating against the risk of a contingent or uncertain loss.

(2) Insurance is a contract between two parties whereby one of them (the insurer) agrees in return for a premium to indemnify the other (the insured) against a monetary loss that may be suffered by the other on the happening of some specified event. According to Insurance Act of 1938, “Insurance Is defined as, “A provision which a prudent man makes against inevitable contingencies”.

Question 5.
Warehousing
Answer:
(1) Warehousing means storing of goods in a godown to hold them in stock from the time of production or purchase till the time of their sale. It is generally used to denote all those activities which are concerned with the storage of goods in a godown or warehouse. One of the marketing processes or a group activity is to hold the goods in stock from the time of production till the time of consumption. When storage of goods is required to be arranged on a large scale In a specified manner, it is called warchousing’. Warehouse means a building in which especially retail goods are stored.

(2) Warehousing is defined as “an establishment for the storage of or accumulation of goocis.’ Warehousing gives protection to goods and helps businessmen to raise finance. It facilitates and provides space for grading. branding and processing. It creates time utility and help in price stabilisation of goods. Thus, warehousing implies a group of activities connected with the storing and preserving of stored goods from the time of their production or purchase till the Urne of their sale or consumption.

3. Study the following case/situation and express your opinion.

Question 1.
Ms. Harshali has started new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amount in her business account. At the same time she used to pay various payments from this account only.

(i) Identify Type of account maintained by Ms. Harshali.
(ii) Suggest any one modern way of money transfer to Ms.Harshali.
(iii) State any one facility she gets on her bank account?
Answer:
(i) Ms. Harshali is a businesswoman and hence she has maintained current account to suit the needs of her business.

(ii) NEFT which stands for National Electronic Funds Transfer is the one of the modern ways of transferring fund (money) from one branch to another branch or from one bank to another bank safely can be suggested to Ms. Harshall to transfer money.

(iii) Ms. Harshali gets overdraft facility on her current account.

Question 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 which can satisfy requirements of his children.
(ii) Who are beneficiaries of policy?
(iii) In above case which principle is involved?
Answer:
(i) Mr. Jagan. a salaried person should take “Child Insurance Policy” to satisfy the financial requirements of his children.
(ii) In child insurance policy, children of the insured person are the beneficiaries.
(iii) In the above case, principle of Insurable interest is involved.

Question 3.
Mr. Sharan is successful manufacturer. He is having production units at various locations. He is having multiple production units, he has large stock of raw material and finished goods. He is worried about safeguarding goods from any unwanted financial loss. He also requires 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 difficulty of place?
(iii) From which service sector will he get financial support?
Answer:
(i) Warehousing’ is the service that helps Mr. Sharan to safeguard his goods from any damage.
(ii) Transport service will help Mr. Sharan to remove the difficulty of place.
(iii) Mr. Sharan will get financial support from Banking sector.

Question 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?
Answer:
(i) Mr. Amit can take whole life policy or term insurance policy for his wife and child insurance policy or money back policy for his daughters.
(ii) Mr. Amit cannot take marine insurance policy for his factories.
(iii) Mr. Amit can take Floating Fire Insurance Policy for protecting his factories at Pune and Nashik.

4. Distinguish between.

Question 1.
Duty Paid Warehouse and Bonded Warehouse
Answer:

Question 2.
Central Bank and Commercial Bank
Answer:

Question 3.
Road Transport and Air Transport
Answer:

Question 4.
Life Insurance and Marine Insurance
Answer:

Question 5.
Savings Account and Current Account
Answer:

Question 6.
Life Insurance and Fire Insurance
Answer:

Question 7.
Road Transport and Rail Transport
Answer:

Question 8.
Rail Transport and Air Transport
Answer:

Question 9.
Current Account and Fixed Deposit Account
Answer:

5. Answer in brief.

Question 1.
State four types of deposits.
Answer:
The different types of deposits are explained below:
(1) Fixed Deposits : Fixed deposit is a type bank account in which certain fixed amount is deposited and kept in the bank for certain fixed period of time bearing fixed interest rate. The rate of interest paid on fixed deposit is higher than the rate of interest paid on other types of deposits. This rate of interest varies with the deposit period. Interest may also be paid periodically or annually. On Premature withdrawal of deposit before maturity date lower rate of interest is given. The deposit holder gets Fixed Deposit Receipt (FDR) issued by the bank. Loan can be obtained against this FDR.

(2) Recurring deposit : Recurring deposit is an account where depositor is required to deposit certain fixed amount at regular interval say monthly for certain fixed period. On the date of maturity, depositor gets the total amount deposited and interest accrued on such deposit amount. Rate of interest paid is higher and varies according to period of time. The depositor is given pass j book to record the entries of deposits, ft is taken by salaried people and businessmen who have regular income.

(3) Demand deposit: The demand deposit is one in which deposited amount is repaid to the accountholder as and when demanded. The amount of money can be withdrawn by the accountholder from the bank by using withdrawal slips, cheques, ATM cards, online transfer, etc.

(4) Savings deposit : A bank account designed for the personal savings is called savings account. The main aim of this deposit account is to inculcate the regular habit of savings among the common people. This account is suitable for those people who have fixed and regular income like salaries, wages, etc. Although there is no restriction on the depositing of money but frequent withdrawals are not permitted by the bank. Interest on balance amount is credited in this account quarterly or half yearly. Pass book, cheque book, balance on SMS, account statement, etc. are provided to the accountholders to know the position of account.

Some banks provide to their accountholders flexi deposit facility which combines the advantages of savings account and fixed deposit account. In case of multiple option deposit account, the excess amount above certain predetermined limit gets automatically transferred from Savings Account to fixed deposit account. Under this type of account, if adequate fund is not available in savings account to honour the cheques, then the funds get transferred automatically from fixed deposit account to savings deposit account.

Question 2.
State four modes of transport.
Answer:
The four modes of transport are explained as follows:
(1) Road transport : Road transport is the oldest mode of transport. It means and includes various means of transport which move on the surface of the earth without the use of railway tracks. Roads are the means which connect people and places on the surface of the land. It provides connectivity on any terrain (land) in comparison to other modes of transport. The different types of vehicles plying on the road include bullock carts, cycles, motor-cycles, autorickshaws, cars, tempos, trucks, buses, etc. They are called means of road transport.

(2) Rail transport : The mode of transport which moves on the surface of the earth with the help of parallel railway tracks is called rail transport. In other words, transportation of goods and passengers over long distances on rail lines through trains is called rail transport. It is an important land transport system of our country. The services of railways are provided by Ministry of Railways. Indian Railways operate different types of trains such as passenger trains, mails, express and cargo or goods trains. Some popular trains run by Indian Railways are Rajdhani Express, Duronto Express, Shatabdi Express, Intercity Express, Vande Bharat Express, holiday special trains, etc. Some luxury trains like Palace on Wheels, Deccan Odyssey, Ramayana Express, Maharaja Express, etc. are run to promote domestic tourism business.

(3) Air transport: The mode of transport which is operated above the surface of the earth i.e., in the sky through airways is called air transport. It has recent origin. Air transport uses different air crafts such as passenger air crafts, cargo aircraft, helicopters, etc. to carry the goods and passengers through airways at distant places. As compared to other modes of transport, air transport has fastest speed. It does not provide door to door services. Air transport is convenient mode in hilly or mountainous areas where other modes of transport cannot reach. It is also suitable mode of transport in emergency situations like war, natural calamities, etc. Air transport is classified into domestic and international air transport. The different national and international private and public sector airways companies are giving services.

(4) Water transport: The mode of transport which is carried out on the surface of water is called water transport. It represents transport facilities in water. It is the cheapest mode of transport. Water transport carries passengers and goods to different places on water ways by using various means like boats, steamers, launches, ships, etc. Water transport can be sub-divided into two categories viz. inland water transport which carries goods and passengers within the country and ocean transport which carries goods and passengers on ocean, sea route. In India, the Ministry of Shipping takes care of development of ocean transport.

Question 3.
State four life insurance policies.
Answer:
The different types of life insurance policies are explained as follows:
(1) Whole Life Policy : Under this policy, whole life of a person is insured and that he is required to pay premium up to his death. The policy holder (assured) cannot get any benefits i.e. money from insurance policy till he is alive. After his death, the amount of the policy is paid to his nominee or to the legal heir. Such a policy is meant for making a provision for the dependents of the assured. The rate of premium is usually low.

(2) Endowment Insurance Policy : An endowment insurance policy is for a specific period and the amount of such a policy along with bonus is paid after the maturity to the assured himself or on the death of the assured to the nominee or his dependents whichever is earlier.

(3) Term Insurance Policy : This type of policy is issued for a specific period. Premium is very low, fixed and remains unchanged during the term of the policy. In case of untimely death of assured, the nominee or dependents are paid the benefit amount mentioned in the insurance policy.

(4) Annuity Policy : Under this policy, insured has to pay the premium in lump sum or in instalments over certain number of years. After that, a certain amount is paid to the assured ; regularly on monthly basis for fix period or up to his death. It is similar to pension payment scheme.

(5) Money back Policy : Under this policy, the policyholder is paid regular or pre-determined percentage of the sum assured after every 10 years or 5 years during life time of policy and also provided the benefit of full sum assured to the nominee or dependents in the event of untimely death of the assured. Usually money back policy is available for 12 years, 15 years, 20 years, 25 years, etc.

Question 4.
State any four features of business services.
Answer:
The features of business services are explained as follows:
(1) Intangibility : Business services are intangible in nature. This is because business services cannot be seen, touched and smelt. They are not physical or material product. For instance, the building of the insurance company can be seen but insurance services offered by such company cannot be seen. People can avail of the benefits of insurance services although they are intangible in nature. On account of intangibility, services cannot be demonstrated as like goods. Hence services providers have to provide quality services to create good impression on the customers.

(2) Inseparability: One of the important features of business service is that the service and service provider cannot be separated from each other. At the time of rendering the services to the customers, the presence of service provider is must, e.g. medical treatment given by doctor to patient. In the case of services, production and its use (consumption) take place simultaneously.

(3) Inconsistency : Business services are heterogeneous i.e. they are not identical or exactly similar in all cases. They may differ from one person to another and from one place to another although service provider remains same. In fact, business services are heterogeneous, e.g. the services of a salesman in a Mall may have good impact on one customer and may not be liked by another customer.

(4) Perishability : Business services are perishable in nature. Hence, they cannot be stocked. The production and consumption (use) of services cannot be separated because services cannot be stored for future consumption. Since business services are intangible and perishable, there can never be inventory of services. Unlike products services cannot be stored for future sale, e.g. vacant seats of a morning bus from Mumbai to Pune cannot be utilised for evening trip of the same bus.

(5) Non-transferability : Business services are non-transferable in nature. The ownership of business services cannot be exchanged. We can exchange the ownership of products but not of services. A lady goes to a beauty parlour and hires services of the beautician by paying the fees. The lady cannot buy the ownership as its ownership remains with the beautician. If she needs such services again, she has to go to the beauty parlour and pay the beautician again for her services.

(6) Consumer participation : The participation of consumer is important for services. The seller or service provider will not be able to provide its services in absence of a consumer and vice versa. So, the presence or participation of both is necessary.

Question 5.
State money remittance services of postal department.
Answer:
Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

6. Justify the following statements.

Question 1.
Air transport is fastest mode of transport.
Answer:
(1) The mode of transport which is operated above the surface of the earth i.e. in the sky through airways is called air transport. For carrying passengers and goods, air transport uses different aircrafts such as passengers aircrafts, cargo aircraft, helicopters, etc.

(2) Among the means of transport available at present, air transport is the fastest and the quickest means of transport. It uses natural ways and no separate construction of routes is required. It is also due to use of modern and advanced technology and highly qualified and professional technicians. Thick forests, high mountains, vast deserts and oceans cannot obstruct its speed and air routes.

(3) Air transport adopt shortest route to reach destination. It has faster speed without any disturbance of observing signal system speed. Air transport is useful to provide valuable services in hilly and mountainous areas, in situations like war and areas affected by natural calamities such as floods, cyclones, earthquakes, etc.

Question 2.
Communication is essential for growth of business.
Answer:
(1) Exchange of ideas, facts, information etc. from one person to another is called communication. It is a process of transfer of information from one place to another or from one person to another with the help of some medium. Means of communication comprise magazines, newspapers, post and telegraphs, radio and television, telephone, internet, e-mail, etc. Communication is essential for growth of business, which include industry, commerce, trade, etc.

(2) The difficulty of distance is effectively solved by various means of communication. Communication helps to transmit business information more quickly among the businessmen. Effective communication facilitates carrying required raw materials and other requirements from the place of their origin or market to the place of their production to facilitate large scale production. The communication also helps to carry finished products from the place of production to the places of consumption as well as market.

(3) Communication helps to make goods and services available wherever they are demanded. It helps to widen the market. Effective communications facilitates the development and growth of domestic and international market and bring prosperity to the country.

(4) Effective communication facilitates the reduction in the cost of production and distribution of goods at low prices which increase their demand and widen market. Increase in demand in turn leads to large scale production and supply. Thus, communication is essential for growth of business.

Question 3.
Principle of subrogation is applicable to all contracts of indemnity.
Answer:
(1) The principle of subrogation is a colliery to the principle of indemnity. According to the principle of subrogation, after the insured is fully compensated for the total loss of the property or goods insured by him, all the rights in such property or goods pass on to the insurer.

(2) Insured person cannot claim any right in the property saved from the damage or loss, once he is fully compensated by the insurer. This is necessary because, if part of the goods or property saved from the fire, accident, damage, floods or cyclone, etc. could fetch any price, the same cannot be retained by the policyholder or insured. In that case he would realise more than the actual loss, which is against the principle of indemnity.

(3) As like the principle of indemnity, the principle of subrogation is applicable to all insurance policies except life insurance policies. In life insurance contracts, the question of indemnity and subrogation does not arise. The insurer cannot indemnify the insured because the loss due to death cannot be determined exactly in terms of money.

(4) In all insurance contracts, except life insurance contract, principle of indemnity and principle of subrogation are applicable. On indemnifying the insured, the insurer can sell the remains of the property damaged and reduce his loss. However, this principle is applicable only if the damaged property has any value after the happening of the event.

Question 4.
Warehousing is important.
Answer:
(1) The term ‘warehousing’ is generally used to denote all those activities which are concerned with the storage of goods in a godown or warehouse. In modern days, these is a time gap between production of goods and their distribution. Warehousing is essential to hold the stock of goods till they have suitable demand.

(2) Agricultural goods such as rice, wheat, sugar, spices, etc. are produced seasonally but consumed throughout the year. It is necessary to store them in large quantity. Some goods may be required to be stored for conditioning, canning or processing, e.g. oil seeds, fish, fruits, etc. Some perishable goods such as eggs, meat, butter, fruits, vegetables, medicines, etc. are preserved in cold storage so that their quality remains as it is.

(3) Warehousing plays an important role in price stabilisation. It helps to protect the goods from theft, deterioration, i.e. future risks. Warehouses nowadays provide facilities like packing, processing, grading, etc. Warehousing is necessary to facilitate dispersion of goods from production centres to different markets.

Question 5.
Cash can be withdrawn from ATM at any time.
Answer:
(1) ATM is the abbreviation of Automated Teller Machine. It is popularly known as All Time Money or Any Time Money. ATM is an electronic cash dispensing machine. It is free standing self service terminal. There is no specific time limit for withdrawals of cash from ATM.

(2) ATM is one of important facilities provided by the bank to its savings accountholder. To avail of this facility, bank installs ATM terminals at the places of public utility such as railway stations, shopping malls, airports, post offices, busy streets, etc.

(3) For withdrawal of cash from ATM, every accountholder is given specific code number. By operating this system, the accountholder can withdraw the cash up to a specific limit or the quantum of amount available in the account whichever is less. ATM also provides other information like cash deposits, withdrawals, balance in the account, etc.

(4) Under this system, the accountholder has cent per cent liquidity of banking funds. ATM avails twenty four hours service. Hence, the accountholder can withdraw cash any time, i.e. even after banking hours, on holidays, Sundays or in the case of emergency by operating ATM. This facility is available in different parts of the country as well as outside the country.

7. Attempt the following.

Question 1.
Explain money remittance services of post department.
Answer:
Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

Question 2.
Explain marine insurance policies.
Answer:
The different types of marine policies are:
(1) Voyage Policy : Under the Voyage Policy, the cargo is insured for a specified voyage, from one port to another, irrespective of the time taken. For instance, the voyage may be from Mumbai to Tokyo. In this type of policy, risk begins as soon as ship starts from Mumbai and ends when it reaches Tokyo.

(2) Time Policy : Under the Time Policy, the subject-matter is insured for a specific period of time. It covers risks of the voyage undertaken during the specified period. Time policy cannot be issued for a period more than 1 year but may contain continuation clause which explains that if voyage is not completed within the specified time, the risk shall be covered until voyage is completed.

(3) Mixed Policy : This policy is the combination of the two policies, viz. time policy and voyage policy. It insures the cargo (i.e. goods loaded on a ship, etc.) on a particular voyage for a specific period of time. For instance, the policy may contain the clause ‘Mumbai to Singapore, for one month starting from 25th February, 2020 to 25th March, 2020’.

(4) Valued Policy : The valued policy is a policy in which the value of the subject-matter is agreed upon between the insurer and the insured at the time of taking out the insurance policy. Agreed amount of policy becomes payable by the insurance company to the insured i.e. policyholder in the event of loss. It facilitates easy settlement of claim, where it is difficult to find out real market value S of the cargo.

(5) Blanket Policy: Under this policy, the maximum limit of the needed amount of protection is estimated and premium is paid in advance. This policy gives information of nature of goods insured, ports and places of voyages, specific route and risks covered. This policy covers multiple 1 risks on one property or it may cover different properties under one policy.

(6) Port Risk Policy : This policy is taken by the shipowner. It undertakes to indemnify the shipowner for any loss that may occur to the ship while it is anchored at a port. This policy is held applicable till the departure of the vessel from the port.

(7) Composite Policy : This policy is purchased from many insurance companies when the amount of insurance is very high. However, the liability of each insurance company to pay the amount of j claim is separate and distinct.

(8) Single vessel policy : The small shipowner having only one ship in different fleets, usually purchases single vessel policy to cover the risk of loss. This policy covers the risk of one vessel of the insured.

(9) Fleet policy and Block policy : The marine policy which insures several ships belonging to one owner is called Fleet Policy. The Block Policy is another marine policy under which the cargo owner is given protection against the loss or damage of cargo in all modes of transport i.e. rail, road and sea.

Question 3.
Explain types of warehouses.
Answer:
The different types of warehouses are:
(1) Private warehouses : The warehouses owned and operated by the big manufacturers and wholesalers for storing their own goods are called private warehouses. Big companies which need large storage capacity on a regular basis, can afford to construct and maintain their own warehouses. Many public sector organisations also have their own private warehouses, e.g. the Food Corporation of India (FCI) has constructed warehouses in different parts of the country for its own use. Usually these warehouses are constructed near to ones business factory or industry for convenience. They have network of warehouses in different parts of the country.

(2) Public warehouses : Warehouses which are established to provide storage facilities to the general public, small manufacturers and traders on rental basis are called public warehouses. These warehouses are owned and managed by an individual or co-operative societies. These warehouses are located near railway junctions, highways, waterways, airport, seaport, etc. They are well guarded and specially designed to protect goods from several types of risks. These warehouses have to obtain licence from the government. They provide warehousing facilities at low cost. Many marketing facilities such as standardisation, grading, labelling, packing, branding, etc. are provided in these warehouses.

(3) Bonded warehouses : Warehouses which are licensed by the government to accept and store imported goods till the customs duties are not paid on such goods are called bonded warehouses. These warehouses are managed and controlled by customs authorities. These warehouses are located near the ports. The importers cannot take possession of goods from such warehouses unless and until the duty on the goods is paid. The warehouse-keeper is required to give undertaking or ‘Bond’ that without the consent of the customs authorities goods will not be removed from the warehouse. Hence, such warehouses are called ‘Bonded Warehouses’. If an importer is unwilling or unable to pay customs duty immediately, he can withdraw them in instalments and pay customs duty proportionately.

(4) Duty-paid warehouses : The duty-paid warehouses provide the facility of storing the imported goods but not yet sold or transported to importers’ place or godown. These warehouses are owned and managed by the dock authorities only and hence they are also known as public warehouses. These warehouses are located near port and dock areas. They are more useful to importers who re-export the imported goods. The concerned authorities take all the due and reasonable care to ensure their safety. Processing of imported goods such as sorting, re-packing is done in these warehouses.

(5) Government warehouses : Warehouses which are owned, managed and controlled by the Central and State Governments or public authorities are called Government warehouses. These warehouses offer storage facilities to small traders, farmers, businessmen, etc. who are in need of the same on payment of reasonable rent. Central Warehousing Corporation of India (CWC), State Warehousing Corporation (SWC) and Food Corporation of India (FCI) own warehouses for keeping stock of foodgrains and other goods In different states and countries.

(6) Co-operative warehouses : These are warehouses owned, run, managed and controlled by co-operative societies to provide warehousing facilities to the members who are farmers in rural areas. These warehouses are similar to private warehouses but they run on the principle of co-operation. They are used for storing agricultural commodities, consumer goods, raw materials, etc. Farmers, small producers and traders are benefited by such warehouses as they charge at economical rates.

(7) Cold storage warehouses : Cold storage warehouses are largely used to store and preserve perishable goods such as flowers, fish, eggs, meat, vegetables, fruits, medicines, dairy products, etc. These products are kept in cold storage warehouses at very low temperature so that their quality and freshness would remain intact. These warehouses ensure continuous supply of seasonal and perishable products throughout the year. International trade for seasonal and perishable goods such as green peas, mangoes, etc., becomes possible only because of cold storage facilities.

Question 4.
Explain utility function of banks.
Answer:
The utility functions of the commercial bank are explained as follows:
(1) Issue of drafts and cheques : The Bank draft/cheque is an order issued by the bank upon the other branch of the same bank or other bank to pay money to the person whose name is specified thereon. The bank issues bank drafts to its accountholders or non-account holders. However, cheque are issued by the bank only to its account holders. For issuing the bank draft, bank charges some commission.

(2) Locker facility: The bank provides safe deposit vaults to the customers for keeping their valuables like gold ornaments, jewels, securities, valuables, documents, etc. in safe custody. Safe deposit vaults/lockers are made available to the customers on rental basis.

(3) Project reports : As per the request of the clients, bank prepare project report and feasibility study (i.e. a study designed to determine practicability of a system or plan) on their behalf. This helps the business organisation to get funds from the market and clearance from the government authorities.

(4) Gift cheques : The commercial banks also issue gift cheques and gold coins to the customers as well as to the general public by charging nominal charges. It is more popular and has wider acceptance in India. Instead of giving gifts in cash, one can give gift cheques as a present on various occasions such as birthdays, weddings, marriage anniversaries, etc.

(5) Underwriting Services : Underwriting services are given by the banks to the companies in which the bank gives guarantee to the issuing company to purchase unsubscribed portion of the shares, debentures, bonds and other securities if the public demand is not enough to fulfil the minimum subscription amount. For this services bank charges underwriting commission.

(6) Gold related services : Nowadays, many commercial banks offer gold related services to its customers. The banks on commercial basis buy and sell gold and gold ornaments to the customers on large scale basis. Some banks even gives advisory services to its customers in regard to gold funds, gold Exchange Traded Fund (ETF) etc.

Question 5.
Explain modes of traditional communication.
Answer:
(I) Postal Services : The postal services in India are provided by the Department of Post which comes under Ministry of Communication and Information Technology. India has the largest postal network in the world with 1,54,965 post offices of which 1,49,067 are in the rural areas. The different types of postal services are explained below:
(1) Mail Services : The different types of mail services are described below:
(i) Inland letters : The inland letter is one of the cheapest means of conveying written message. It contains a blank sheet of paper of prescribed size and folding for writing messages. It is folded and sealed. Only names and addresses of the receiver and sender can be seen from outside. So, it ensures complete secrecy. Inland letters are used for transmission of messages within India only.

(ii) Envelopes : A postal envelope is a small size paper cover with postage stamps affixed on it having one side open to put in papers, written messages and enclosures like cheques, photos, resumes, etc. It ensures maximum secrecy. On the front outside space name and address of receiver are written and on the backside space name and address of sender are written.

(iii) Parcel : Parcels help to send small articles from one place to the other by post. Parcel post provides economical and reliable parcel delivery service. Parcels of specified weight and size can be sent at different places within the country as well as outside the country Anything except those items which are banned can be sent. Parcel can be insured by paying extra charges for insurance. In case of insured parcel is lost in transit post office pays insured amount.

(iv) Book post : Printed materials such as publications, newspapers, printed books, wedding, cards, greeting cards, periodicals, legal documents, etc. can be mailed as book post. The book post packets should simply be closed and should not be sealed. The words ‘Book Post’ should be written on the face of the cover.

(2) Specialised Postal Services : The following specialised postal services are provided by the post offices:
(i) Business Post : Business post arranges complete mailing services right from preparation of mail to delivery of mail. It is most suitable for small business and large companies. As per requirement, customers can select from a range of cost effective and professional mailing services which include printing, collating (comparing or examining), inserting, sealing and addressing. Indian post has established Business Post centres in major cities to handle business post consignment.

(ii) Logistics Post : Logistics post provides its business customers a cost-effective and timely solution that manages the entire value chain from collection to storage to transmission to distribution throughout the country.

(iii) Bill Mail Service : Communications in the nature of financial statements, bills, monthly account statements or any such other items of similar nature are sent by service providers to the customers by using bill mail service of post office. This service is used at least once in 90 days. Under this service, at a time minimum 5000 articles can be posted. The bill mail service does not include communication in the nature of letter mail or having personal communication or exclusive commercial publicity material. The mail is to be received at specified location provided. Bill mail is to be sorted pin code wide and bundled delivery post office wise.

(3) Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

(4) Retail services : The retail services are explained as follows:
(i) Retail post : Under retail post service, the department of post offers services to general public by making available some products and services of third party available in their areas through selected post offices. Under this, post offices offer a range of services including the collection of electricity bills, telephone bills, insurance premia, collection of taxes and fee for the government, etc. The post office also sells application form.

(ii) e-post : Recently, the department of posts has introduced e-post services, e-post service is service under which printed messages of customers are scanned and transmissed as email through internet. At the destination place or offices, these messages are printed, enveloped and delivered at the postal address. Thus, it is the combination of electronic transmission and physical delivery. Through e-post customers can send their messages to any address in India through network of more than 1,55,000 post offices. Corporate customers get special e-post rates and value additions.

Question 6.
Explain disadvantages of air transport.
Answer:
The disadvantages of air transport are as below:

1. Costliest mode : In comparison to all other modes of transport air transport is most expensive.
2. Affected by adverse weather conditions : It is exposed to the vagaries of weather changes, heavy rains, snow, storm, etc.
3. Unsuitability : Air transport is not suitable for short distances. It is also not suitable for carriage of bulky and heavy goods.
4. Huge capital investments : As compared to other modes of transport, air transport requires huge capital investment costs like construction of airports, aircrafts, runways, air traffic control tower, etc. Huge capital investment increases freight and fare charges.
5. International restrictions : Air transport is required to observe international restrictions such as aeroplane of some nations are not permitted to fly over other countries.
6. Limited carrying capacity : In comparison to other means of transport, the carrying capacity of air transport is very limited. It is not suitable to carry heavy and bulky goods.

Question 7.
Describe the role of transport.
Answer:
The role of transport are explained as follows:
(1) Helps in production : Transport carries raw materials and other requirements from the place of their origin or market to the place of their production to facilitate large scale production. It also carries labour from their residence to place of factory. It carries finished products from the place of production to the places of consumption or markets.

(2) Expanding markets : Producers and consumers are separated by geographical distance. Transport bridges this gap and facilitates distribution. It makes goods available wherever they are demanded. This helps to widen the market. With the development and growth of transport, the domestic and international markets for both agricultural and industrial products expand, bringing the prosperity to the country.

(3) Creates place utility : Transport is a public utility service which creates time and place utilities. Transport mainly creates place utility by carrying goods from the place of plenty to places where they are in more demand but not available, e.g. Apples which are produced on large quantity in Himachal Pradesh are brought over to Mumbai and other places throughout the country by transport to get high prices.

(4) Stability of prices : Transport carries goods from the areas of plenty to the areas of scarcity. It helps to regulate and balance the supply of goods and services in relation to demand and thereby helps to stabilise the prices of goods. The shortage of goods at any place can be easily removed by efficient transport system.

(5) Creates employment : Transport creates job opportunities directly for transport owners, drivers, conductors, cleaners, mechanics, helpers, etc. It helps to move labour and goods from the place of abundance to the place of scarcity. This movement of goods and labour creates indirect employment. Transport an industry by itself has provided job opportunities to millions of people all over the world.

(6) Improves standard of living : By generating employment, transport leads to increase purchasing power with people. Further, it makes products of their choice from different regions available in local markets. This results in higher standard of living.

(7) Cost reduction : Efficient, cheap and quick means of transport facilitate the reduction in the cost of production and distribution of goods. On account of low cost of production, the goods can be sold at low prices which increase their demand and widen market. Increase in demand again leads to large scale production of goods and supply.

(8) Provides help during emergency : The life of the people is badly affected during natural calamities such as floods, earthquakes, landslides, droughts, etc. and also during man-made disasters such as bomb blasts, riots, accidents, etc. In such circumstances, urgent and timely help in the form of food, water, medicines, clothes and other provisions, etc. can be provided quickly with the help of transport to save the lives of affected people. Rescue operations are possible only with the help of helicopters, fire brigades, railways, etc.

(9) Economic development : An efficient transportation system contributes to the rapid development of commerce and industry. Transport also helps to develop agriculture of a country. New industries are established and rapidly developed due to efficient network of transport. Further, a country can make progress in international trade and thereby earn foreign exchange only through efficient transport services.

Question 8.
What are the functions of warehouses?
Answer:
Functions : The functions of warehouses are explained as follows:
Function of Warehouses

1. Storage
2. Price Stabilisation
3. Risk-Bearing
4. Financing
5. Grading and Packing
6. Transportation
7. Time and Place Utility
8. Processing

1. Storage : Storage of goods is the basic function of warehousing. Warehouses provide space for storage of goods in large quantity and in good condition. The commodities which are not required immediately are stored in the warehouses. Stored goods are supplied as and when they are required by the customers.

2. Price stabilisation : Warehousing facilitates price stabilisation by maintaining proper balance between demand for and supply of commodities. It is achieved by creation of time utility by warehousing. Usually, large stock of goods is kept in the warehouse. Wherever, there is shortage of goods in the market, goods are released from the warehouse which increases supply and facilitates price stabilisation. Thus, it helps to avoid any rise in prices.

3. Risk-bearing : While the goods are stored in the warehouse, the warehouse-keeper takes reasonable care to protect the goods from risks of loss or damage due to heat, cold, moisture, dryness, insects, fire and thefts. This is because he has to return the goods in the same condition. For any loss or damage of goods during storage, warehouse-keeper will be held liable to the owner of the goods. Thus, the risk is transferred from the owner to the warehouse-keeper.

4. Financing : On the basis of goods stored in the warehouse, loans can be raised from the financial institutions or warehouse-keeper. The goods act as a security for financial institution. This loan can be used to meet other operations of business by the owners of goods.

5. Grading and Packing : Warehousing provides enough space for undertaking various marketing functions like grading, processing and packing of goods. Goods can be packed in suitable sizes as per the instructions of the owner. Thus, services of warehousing are very useful to manufacturers, wholesalers and the importers of goods.

6. Transportation : Some warehouses also provide transport facility to the traders who store large quantity of goods in the warehouse. It brings the goods from the places of production and also sends them to the places of delivery on behalf of depositors.

7. Time and Place Utility: Warehousing creates time utility by storing goods and releasing the same at the time when they are demanded. It also creates place utility by transporting goods at the far away places, where they are required.

8. Processing : For certain commodities processing is necessary to make them consumable or useable. This is because those commodities cannot be consumed in the form they are produced in the nature, e.g. paddy, raw fruits, etc. The activities such as polishing the paddy, ripening the fruits, etc. are undertaken by the warehouses on behalf of the owners.

8. Answer the following.

Question 1.
What is insurance ? Explain principles of insurance.
Answer:
[A] Meaning : The term insurance refers to the method (means) of protection from financial loss which may occur due to happening of specific uncertain events. It is a type of risk management primarily used to compensate against the risk of a contingent loss. Insurance is a contract between two parties whereby one of them (the insurer) agrees in return for a consideration (premium) to indemnify (compensate) the other (the insured) against a monetary loss that may be suffered by the other on the happening of some specified event.

According to Insurance Act of 1938, Insurance is defined as, “A provision which a prudent man makes against inevitable contingencies”.

[B] Principles of insurance : The different principles of insurance are:

1. Principle of Utmost Good Faith
2. Principle of Insurable Interest
3. Principle of Indemnity
4. Principle of Subrogation
5. Principle of Contribution
6. Principle of Mitigation of Loss
7. Principle of Causa-Proxima

1. Principle of Utmost Good Faith : The principle of utmost good faith is applicable to all types of insurance. According to this principle, both the parties in an insurance contract are under am obligation to make the fullest disclosure of all material facts relating to the insurance contract clearly, correctly and completely. Insured must provide correct and complete information of the subject-matter of the insurance whereas insurer must provide correct and complete information about the terms and conditions of the insurance contract. Failure to provide correct, complete information on the part of insured may lead to non-settlement of claim by the insurer.

For example, Mr. Hari has not given information about his kidney ailment to the insurance company while taking policy. So, if the insurance company discovers it after his death, then his family will not get compensation.

2. Principle of Insurable Interest : No person can enter into a valid insurance contract unless he has insurable interest in the object insured. Insurable interest of an insured is said to have in the subject matter if the existence of it provides financial benefit to the insured and non-existence of that subject matter put the insured to financial loss. Principle of insurable interest is applicable to all contracts of insurance. In the case of life insurance it is enough if the insurable interest s exists at the time of entering into the contract. In the case of marine and fire insurance interest the insurable must exist both at the time of the contract as well as at the time of the happening of the event.

A person has insurable interest in his own life and his property. A businessman has insurable interest in the goods he trades and in his property. Similarly, a wife has insurable interest in the life of her husband and vice versa.

3. Principle of Indemnity : Indemnity refers to a guarantee or assurance given by the insurer to place the insured in same financial position in which he was before the happening of the uncertain event. Principle of indemnity is applicable to marine, fire and general insurance as in such cases actual loss can be measured in terms of 1 money. Under this principle, the insurer undertakes to indemnify the policyholder or insured to the extent of the policy amount or the actual monetary loss suffered, whichever is lower, e.g. if a property owner has insured his property for Rs 5 lakh and it is destroyed by fire and incurred a loss of Rs 2 lakh, then the property owner will be paid only Rs 2 lakh i.e. the actual loss. This principle prevents a policyholder from making a profit out of his actual loss. However, in case of death of the insured, insurance company pays the actual sum assured to the nominee of the insured.

4. Principle of Subrogation : The principle of subrogation is a corollary to the principle of indemnity and is applicable to all contracts of j indemnity. According to it, after the insured is fully compensated for the total loss of the property or goods insured by him, all the remaining rights in such property or goods pass on to the insurer. Suppose a car owner has insured his car for Rs 2,00,000 against risk of loss due to accidents. If his car meets with an accident and is completely damaged, the insurance company pays Rs 2,00,000, the policy amount, to the car owner. On indemnifying the insured, the insurer can sell the remains of the car in scrap and reduce his loss.

5. Principle of Contribution : The principle of contribution is applicable to all contracts of indemnity. A person can insure his property with two or more insurance companies. It is done mainly to have better security, i.e. if one insurer fails to pay the claim, it can be recovered from another insurer. In the case of loss, the insured cannot recover compensation from both the insurance companies. All the insurers will jointly compensate the total amount of loss. According to the principle of contribution, each insurance company will contribute to the loss in proportion to the amount of policy undertaken from each company. If the insured chooses to collect the amount of compensation from one particular insurer, the insurer can in turn recover proportionate amount from the other insurers.

For instance, Dr, Ashok has insured his property of Rs 2,00,000 with two insurance companies viz. with X insurance company for Rs 1,20,000 (i.e. 60% of property value) and with Y insurance company for Rs 80,000 (i.e. 40% of property value).

If Dr. Ashok’s property is destroyed and he incurred a loss of Rs 1,50,000, then both the insurance companies will contribute towards actual loss of Rs 1,50,000. Here X insurance company will pay Rs 90,000 (i.e. 60% of Rs 1,50,000) and Y insurance company will pay Rs 60,000 (i.e. 40% of Rs 1,50,000).

6. Principle of Mitigation of Loss : Under this principle, the insured is required to take all possible steps to minimise the loss to the insured property on the happening of the event. He should not remain indifferent merely because the property which is getting damaged is insured. For example, Mr. Kishor’s house is on fire due to short circuit. In this case Mr. Kishor, must take necessary steps to put off the fire and to save the insured property as much as possible.

7. Principle of Causa-Proxima : The term ‘Causa-Proxima’ means a proximate, i.e. nearest or immediate cause or reason. Accordingly, when loss is occurred due to more than one cause, then proximate or nearest cause of loss is taken into consideration to fix the liability of insurer. If proximate cause is one of the causes from list of insured causes, then insurer is liable to pay compensation. In other words, the insurance company will indemnify the insured only if it is definitely established that the said loss is caused directly by the occurrence of the event covered by the policy.

Question 2.
Define bank. Explain. Different types of banks.
Answer:
[A] Definition : Bank is a dealer in money and credit. It is a financial institution whose basic activities are to accept deposits and advance, lend money and provide other related services, According to The Indian Banking Regulation Act, 1949, “any company which transacts the business of banking in India.” The term banking is further defined as, “accepting for the purpose of lending or investment of deposits from the public, repayable on demand or otherwise and withdrawable by cheque, draft and order or otherwise.”

Types of Bank:

1. Central Bank
2. Commercial Bank
3. Co-operative Bank
4. Industrial Development Bank
5. Exchange Bank
6. Regional Rural Bank
7. Savings Bank
8. Investment Bank
9. Specialised Bank

The different types of banks are explained below:
1. Central Bank: The central bank in a country is the financial institution at the top (apex) of all the banking institutions operating in the country. In India, The Reserve Bank of India was established in 1945 under a special statute called the Reserve Bank of India Act, 1944. It performs the functions like framing monetary policy, issuing currency notes, acting as a banker to the Government and acting as the banker’s bank to commercial and other banks in India.

2. Commercial Bank : The Commercial bank plays key role in the economic, industrial and social development of a country. It performs broadly two functions such as (i) Primary functions which include accepting deposits and lending money in different forms and (ii) Secondary function which include agency functions and utility functions. The different types of commercial banks in India are as follows:
(i) Public Sector Banks : The banks in which majority of the share capital or stake (interest) is held by the Government of India are called Public Sector Bank, e.g. State Bank of India, Bank of India, etc.

(ii) Private Sector Banks : The banks in which majority of the share capital or stake is held by private individuals are called Private Sector Banks, e.g. Axis Bank, HDFC Bank, etc.

(iii) Foreign Banks : The banks which are registered and have their headquarters in foreign country but operate in different countries including India through their branches established there, are called Foreign banks e.g. Standard Chartered Bank, American Express Bank, HSBC, etc.

3. Co-operative Banks : Co-operative banks are formed, registered and organised under the Indian Co-operative Societies Act and regulated under Banking Regulation Act. These banks are more popular in rural and semi-urban areas. These banks are primarily meant for catering to the financial needs of economically backward people, farmers and small scale units. They operate at three different levels:
(a) Primary Credit Societies : The primary credit societies work at village level. These credit societies collect the savings and surplus money in the form of deposits from members and common people. They are also financed by the State Co¬operative Banks and District Co-operative Banks for the purpose of lending to needy people for productive purpose.

(b) District Central Co-operative Banks : The District Central Co-operative Banks operating at district level and financed by the State Co-operative Bank for the purpose of providing finance to primary credit societies.

(c) State Co-operative Banks : The State Co-, operative Banks Eire working at state level. These banks provide funds to District Central Co-operative Banks and Primary Credit Societies to enable them to provide finance to rural and semi urban areas. Apart from this, they also supervise the working of district banks and credit co-operative societies.

4. Industrial Development Banks : The banks which provide medium and long term equipment, latest technology, expansion and modernisation of business, etc. are called Industrial Development Banks. Industrial Finance Corporation of India (IFCI), State Financial Corporations (SFCs), Maharashtra State Finance Corporation (MSFC), etc. are the examples of Industrial Development Banks. These banks perform the following functions:

1. Provide medium and long term finance to business organisations for expansion and modernisation.
2. Underwriting i.e. giving guarantee to buy shares issued by public limited companies.
3. Purchase debentures and bonds.

5. Exchange Banks : An exchange bank specialises in financing import and export trade and in foreign exchange transactions. The American Express Bank, Bank of Tokyo, Barclays Bank, etc. are the examples of Exchange Banks functioning in India. The Exchange Banks perform the following functions:

1. Finance foreign trade transactions,
2. Issue letter of credit on behalf of importer,
3. Discount foreign bills of exchange,
4. Remit dividend, interests and profits.

6. Regional Rural Banks : These banks were constituted (established) in 1975 and are sponsored by large public sector banks. 50%, 35% and 15% of the capital of these banks are provided by the Central Government, sponsored banks and State Government respectively. These banks collect (mobilise) funds in the form of deposits from rural and semi-urban areas. They provide loans and advances to small and marginal farmers, agricultural workers, rural artisans for productive purpose.

7. Savings Bank : A savings bank is one which has the main object of inculcating the habit of saving among the community. It collects scattered savings of the community especially from rural areas and invests the same in good securities. In India, Postal Savings Bank is an example of such a bank. Commercial Banks and Co-operative Banks act as savings banks as they have separate savings accounts departments.

8. Investment Bank : Investment banks offer financial and advisory assistance to their customers which usually include business firms and government organisations. These banks provide advice on investment decisions and facilitate mergers and acquisitions by undertaking research. These Banks do not directly deal with the common people.

9. Specialised Banks: The banks which make available to the requirements of the business and provide possible support to set up business activities in specific area are called Specialised Banks. The different types of specialised banks are:
(a) Export Import Bank of India (EXIM Bank) : These banks provide the needed financial assistance and support to the exporters and importers in setting up business for exporting and importing products respectively. They work to expand and promote country’s international trade.

(b) Small Industries Development Bank of India (SIDBI) : SIDBI was established on 2nd April, 1990 under the Act of Parliament of India. Its main function is to act as the main institution for financing, promoting and developing the Micro, Small and Medium Enterprises (MSMEs) as well as co-ordinator of the institutions engaged in similar activities.

(c) National Bank for Agricultural and Rural Development (NABARD) : NABARD has been established to work as an apex institution to finance agricultural and rural sector. It provides long term and short term loans through regional rural banks. It provides loans to financial institutions and not individuals. It is also concerned with the function of policy planning and operations relating to agricultural credit and credit for other activities in rural areas.

Question 3.
What is warehouse? Explain its different functions.
Answer:
[A] Meaning : A warehouse can be defined as, “an establishment for the storage or accumulation of goods.” The term ‘warehousing’ is generally used to denote storage of goods and consists of all those activities which are connected with the storage and preservation of goods in a godown or warehouse. One of the group activity or functions is to hold the goods in stock from the time of production till the time of consumption is called storage of goods. When storage of goods is required to be arranged on a large scale in a specified manner, it is called ‘warehousing’.

[B] Functions : The functions of warehouses are explained as follows :
Function of Warehouses

1. Storage
2. Price Stabilisation
3. Risk-Bearing
4. Financing
5. Grading and Packing
6. Transportation
7. Time and Place Utility
8. Processing

1. Storage : Storage of goods is the basic function of warehousing. Warehouses provide space for storage of goods in large quantity and in good condition. The commodities which are not required immediately are stored in the warehouses. Stored goods are supplied as and when they are required by the customers.

2. Price stabilisation : Warehousing facilitates price stabilisation by maintaining proper balance between demand for and supply of commodities. It is achieved by creation of time utility by warehousing. Usually, large stock of goods is kept in the warehouse. Wherever, there is shortage of goods in the market, goods are released from the warehouse which increases supply and facilitates price stabilisation. Thus, it helps to avoid any rise in prices.

3. Risk-bearing : While the goods are stored in the warehouse, the warehouse-keeper takes reasonable care to protect the goods from risks of loss or damage due to heat, cold, moisture, dryness, insects, fire and thefts. This is because he has to return the goods in the same condition. For any loss or damage of goods during storage, warehouse-keeper will be held liable to the owner of the goods. Thus, the risk is transferred from the owner to the warehouse-keeper.

4. Financing : On the basis of goods stored in the warehouse, loans can be raised from the financial institutions or warehouse-keeper. The goods act as a security for financial institution. This loan can be used to meet other operations of business by the owners of goods.

5. Grading and Packing : Warehousing provides enough space for undertaking various marketing functions like grading, processing and packing of goods. Goods can be packed in suitable sizes as per the instructions of the owner. Thus, services of warehousing are very useful to manufacturers, wholesalers and the importers of goods.

6. Transportation : Some warehouses also provide transport facility to the traders who store large quantity of goods in the warehouse. It brings the goods from the places of production and also sends them to the places of delivery on behalf of depositors.

7. Time and Place Utility: Warehousing creates time utility by storing goods and releasing the same at the time when they are demanded. It also creates place utility by transporting goods at the far away places, where they are required.

8. Processing : For certain commodities processing is necessary to make them consumable or useable. This is because those commodities cannot be consumed in the form they are produced in the nature, e.g. paddy, raw fruits, etc. The activities such as polishing the paddy, ripening the fruits, etc. are undertaken by the warehouses on behalf of the owners.

Question 4.
What is Services? Explain in detail different business services.
Answer:
[A] Meaning : A service is an act of performance that one party offer to another for certain consideration. Service is essentially intangible i.e. cannot be touched, seen and felt. Services are neither manufactured nor stocked or transported. They are produced and consumed simultaneously. So, Services are intangible, heterogeneous, inseparable, inconsistent, instantly perishable in nature, not transferable and require consumer participation. Services which help in successful running of a business are called business services.

Business cannot be run without business services. These services are provided to the customers which fulfil their needs. Banking, insurance, transport, warehousing, communication, etc. are the examples of business services. According to American Marketing Association, services implies, “Activities, benefits or satisfaction which are offered for sale or provided in connection with the sale of goods.”

[B] Types : The different types of services are shown:

1. Banking
2. Insurance services
3. Transport services
4. Warehousing
5. Communication

The different types of business services are explained as follows:
1. Banking : As the production has to take place on a large scale, adequate finance is required. Further, there must be facilities for the exchange of goods. Banks provide necessary finance and to facilitate exchange issue different types of facilities such as cheques, drafts, debit card, credit card, net banking, mobile banking, etc. The banks also provide loans to the business and industry to buy properties and to pay for routine expenses.

2. Insurance services : There are several business risks involved during the period from the stage of production to the stage of consumption. Insurance company in consideration of a definite fees called premium, undertakes all such risks through fire, marine, life and other insurance contracts. Insurance is a service contract in which insurance company in consideration of specific premium amount promises to pay a fixed amount to insured person either on the expiry of pre-determined fixed period or in case of happening of any unlucky accident whichever is earlier. Thus, by protecting the traders against the risks, an
insurance company enables the traders to concentrate on their day-to-day business activities.

3. Transport services : Transport is a service or facility which creates place utility by carrying essential products, raw materials and human resources from one place to another. It plays an important role in the development of all sectors of the economy. Transport helps to widen the market for agriculture and manufactured goods. The efficient transport network facilitates development of commercial activities. It facilitates movement of labour and capital assets from different areas to developed areas.

4. Warehousing : Warehouse is a place or a room or a building where goods are stored prior to their use, distribution or sale. Warehousing creates time utility. It solves the problem of holding the stock of goods during the time-gap between production and consumption. It also provides enough place to perform certain marketing services like grading, weighing, packing, branding, labelling, etc. Warehousing also equalises demand for and supply of goods in the market and helps to stabilise the prices of goods.

5. Communication : George Terry defines communication as, ‘the process of transmitting and interchanging ideas, facts and actions’. It is a main aid to trade. Communication services such as post, telegraph, telephone, cell phones, telex, fax, courier, e-mail, internet, etc. help to transmit and communicate business information quickly among the businessmen

Question 5.
What is communication? Explain in detail various types of communication.
Answer:
[A] Meaning : The term ‘communication’ means any interchange of ideas, messages, facts, information, feelings and emotions among two or more persons In a way that they share common understanding about it. It Is a process of giving away or passing on any information by any person to some other person with the help of some medium. Thus, receiver after receiving the message understands it in the desired form and acts accordingly.

[B] Types of Communication : The different types of communication are shown in the following diagram:

The different types of communication are explained below:
(I) Postal Services : The postal services in India are provided by the Department of Post which comes under Ministry of Communication and Information Technology. India has the largest postal network in the world with 1,54,965 post offices of which 1,49,067 are in the rural areas. The different types of postal services are explained below:
(1) Mail Services : The different types of mail services are described below:
(i) Inland letters : The inland letter is one of the cheapest means of conveying written message. It contains a blank sheet of paper of prescribed size and folding for writing messages. It is folded and sealed. Only names and addresses of the receiver and sender can be seen from outside. So, it ensures complete secrecy. Inland letters are used for transmission of messages within India only.

(ii) Envelopes : A postal envelope is a small size paper cover with postage stamps affixed on it having one side open to put in papers, written messages and enclosures like cheques, photos, resumes, etc. It ensures maximum secrecy. On the front outside space name and address of receiver are written and on the backside space name and address of sender are written.

(iii) Parcel : Parcels help to send small articles from one place to the other by post. Parcel post provides economical and reliable parcel delivery service. Parcels of specified weight and size can be sent at different places within the country as well as outside the country Anything except those items which are banned can be sent. Parcel can be insured by paying extra charges for insurance. In case of insured parcel is lost in transit post office pays insured amount.

(iv) Book post : Printed materials such as publications, newspapers, printed books, wedding, cards, greeting cards, periodicals, legal documents, etc. can be mailed as book post. The book post packets should simply be closed and should not be sealed. The words ‘Book Post’ should be written on the face of the cover.

(2) Specialised Postal Services : The following specialised postal services are provided by the post offices:
(i) Business Post : Business post arranges complete mailing services right from preparation of mail to delivery of mail. It is most suitable for small business and large companies. As per requirement, customers can select from a range of cost effective and professional mailing services ! which include printing, collating (comparing or examining), inserting, sealing and addressing. Indian post has established Business Post centres in major cities to handle business post consignment.

(ii) Logistics Post : Logistics post provides its business customers a cost-effective and timely solution that manages the entire value chain from collection to storage to transmission to distribution throughout the country.

(iii) Bill Mail Service : Communications in the nature of financial statements, bills, monthly account statements or any such other items of similar nature are sent by service providers to the customers by using bill mail service of post office. This service is used at least once in 90 days. Under this service, at a time minimum 5000 articles can be posted. The bill mail service does not include communication in the nature of letter mail or having personal communication or exclusive commercial publicity material. The mail is to be received at specified location provided. Bill mail is to be sorted pin code wide and bundled delivery post office wise.

(3) Money remittance services : The money remittance services are explained as follows:
(i) Electronic Money Transfer (eMO) : A money order is the most convenient method of remitting money to distant places. It is an order issued by one post office to another to pay a certain amount of money to a person specified therein. The person to whom money is to be paid is called ‘Payee’. Under this service of the post office, money is delivered at the house or the place of stay of the receiver.

(ii) Instant Money Order (iMO) : Instant Money Order (iMO) is an instant web based money transfer service by which minimum Rs 1000 and maximum Rs 50,000 can be transferred to distant places from designated iMO post offices. It is the instant on-line money transfer service which is safe, convenient, reliable and affordable. The money can be sent to close relative residing at distant place in India. It is simple, quick and economical to send and receive money.

(iii) International Money Transfer : International Money Transfer is the most convenient, quick and easy way of transferring personal remittances from foreign country to family members or other beneficiaries in India. Now this service is made available in all post offices in India by Department of Post, Government of India with the help of Western Union Financial Services. The remittances of money are permitted from around 195 countries to India.

(4) Retail services : The retail services are explained as follows:
(i) Retail post : Under retail post service, the department of post offers services to general public by making available some products and services of third party available in their areas through selected post offices. Under this, post offices offer a range of services including the collection of electricity bills, telephone bills, insurance premia, collection of taxes and fee for the government, etc. The post office also sells application form.

(ii) e-post : Recently, the department of posts has introduced e-post services, e-post service is service under which printed messages of customers are scanned and transmissed as email through internet. At the destination place or offices, these messages are printed, enveloped and delivered at the postal address. Thus, it is the combination of electronic transmission and physical delivery. Through e-post customers can send their messages to any address in India through network of more than 1,55,000 post offices. Corporate customers get special e-post rates and value additions.

(II) Modern means of communications : The modern means of communication are explained as follows:
(i) Courier Service : A courier service is a service that allows someone to send a parcel or consignment from one place to some other distant place. Usually, courier services are provided by a company and charge flat rates to the parties using the courier service regularly. Courier services differ from ordinary mail services in respect to speed, security, tracking, signature, delivery time, etc. Usually, premium courier services are more expensive as compared to ordinary mail services. DHL, DTDC, etc. are the examples of courier services.

(ii) Internet : The internet is one, in which users at one computer can, if it has permission, get information from other computer. It is a networking infrastructure. It connects millions of computers together globally, framing a network in which any computer can communicate with any other computer as long as they are both connected to internet. It is a network of networks that include of private, public, academic, business and government networks of local to global scope linked by a broad array of electronic, wireless and services such as world wide web, etc.

(iii) E-mail : E-mail stands for Electronic mail. E-mail refers to the transmission of information, from one computer terminal to another. It is a method of exchanging mail between the users of electronic devices. E-mail servers accept, forward, deliver and store messages. Users are not required to be online simultaneously. They are required to connect to a mail server briefly for as long as it takes to send or receive messages.

Question 6.
What is road transport. Explain its advantages and disadvantages.
Answer:
[A] Meaning : Road transport is the oldest mode of transport. It means and includes various means of transport which move on the surface of the earth without the use of railway tracks. Roads are the means which connect people and places on the surface of the land. It provides connectivity on any terrain (land) in comparison to other modes of transport. The different types of vehicles plying on the road include bullock carts, cycles, motor-cycles, autorickshaws, cars, tempos, trucks, buses, etc. They are called means of road transport.

[B] Advantages : The advantages of road transport are explained as follows:
(1) Cheaper mode of transport : As compared to other modes of transport, road transport is relatively cheaper mode of transport. Its operational cost is relatively low.

(2) Useful for perishable goods : Road transport is suitable and more useful to carry and deliver perishable goods such as milk, vegetable, fish, mutton, fruits, flowers, eggs, etc., over a short distance and that too at a faster speed.

(3) Flexible mode of transport : Road transport is flexible mode of transport because loading and unloading of goods are possible at any destination. Similarly, it is more flexible because of the choice of different routes, timings and types of vehicles.

(4) Door-to-Door service : Road transport facilitates door-to-door delivery of goods. It carries the goods and passengers directly to the godowns, factories and places of residence, i.e. user.

(5) Good reach : Roads constructed in plain areas and also in hilly areas can be used by different road vehicles such as trucks, tempos, motor cars and even carts driven by animals for carrying goods and passengers from one place to another. Wherever any other mode of transport cannot reach, road vehicles can easily reach and thus cover even hilly areas.

(6) Less capital investment : The cost of construction and maintenance of a road system is relatively less than that of railways.

[C] Disadvantages : The disadvantages of road transport are explained as follows:
(1) Not economical for long distance : In comparison to other modes of transport carrying capacity of road transport is very limited. High cost of fuel, tolls, etc. make the road transport uneconomical for long distance transportation.

(2) Not suitable for heavy and bulky goods : Road transport is not suitable for carrying heavy and bulky goods for any distance and involves high cost.

(3) Affected by adverse weather conditions : Road transport is affected more by adverse weather conditions such as fogs often greatly reducing visibility, heavy rain, floods, landslides, storm, etc.

(4) Accidents : The possibility of road accidents is frequent due to poor condition of roads and negligent drivers.

(5) Causes pollution : The vehicles plying on the road release smokes and gases. So, it creates air pollution which affect the health of the people.

Maharashtra State Board OCM 12th Commerce Textbook Solutions

• Principles of Management Class 12 OCM Textbook Solutions
• Functions of Management Class 12 OCM Textbook Solutions
• Entrepreneurship Development Class 12 OCM Textbook Solutions
• Business Services Class 12 OCM Textbook Solutions
• Emerging Modes of Business Class 12 OCM Textbook Solutions
• Social Responsibilities of Business Class 12 OCM Textbook Solutions
• Consumer Protection Class 12 OCM Textbook Solutions
• Marketing Class 12 OCM Textbook Solutions

Entrepreneurship Development 12th OCM Chapter 3 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 3 Entrepreneurship Development Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 3 Exercise Solutions

1. (A) Select the correct options and rewrite the sentences

Question 1.
The word ‘entrepreneur’ is derived from the ……………… word ‘entreprende’.
(a) Japanese
(b) English
(c) French
Answer:
(c) French

Question 2.
‘Entreprende’ means to ………………..
(a) Undertake
(b) Enterprise
(c) Businessman
Answer:
(a) Undertake

Question 3.
Start Up India is an initiative of the ………………
(a) RBI
(b) Government of India
(c) World Bank
Answer:
(b) Government of India

Question 4.
………………. is the idea of bringing urban residents to rural areas, by empowering to local communities, both socially and economically.
(a) Agro tourism
(b) Medical tourism
(c) Entertainment
Answer:
(a) Agro tourism

1. (B) Match the pairs

Answer:

1. (C) Give one word/phrase/term which can substitute each one of the following

Question 1.
An undertaking or adventure involving uncertainty and risk and requiring innovation.
Answer:
Enterprise

Question 2.
A function of creating something new for an economic activity.
Answer:
Innovation

Question 3.
A person who is an innovator who introduces new combinations of means of production.
Answer:
Entrepreneur

Question 4.
The process of enhancing entrepreneurial skills and knowledge through structured training and institution building programmes.
Answer:
Entrepreneur development

Question 5.
The process that motivates a person into action and induces him to continue the course of action for the achievement of goals.
Answer:
Motivation

Question 6.
An employee who has an authority and support of the organisation to implement his creative ideas.
Answer:
Intrapreneur

1. (D) State true or false

Question 1.
An entrepreneur should not be ready to work hard.
Answer:
False

Question 2.
Agritourism can support agricultural economy.
Answer:
True

Question 3.
Successful businessman takes calculated risk.
Answer:
True

Question 4.
Entrepreneurship is a full time job which requires dedication and hard work.
Answer:
True

Question 5.
Startup India is an initiative of the Government of France.
Answer:
False.

1. (E) Find the odd one

Question 1.
Communicator, Innovator, Self-starter, Inactive.
Answer:
Inactive

Question 2.
Trekking, Wildlife study, Horseback riding, Indoor games.
Answer:
Indoor games

Question 3.
Innovation, Lack of communication, Development of market, Determining the objectives.
Answer:
Lack of communication.

1. (F) Complete the sentences

Question 1.
An entrepreneur is a person who starts a …………………
Answer:
Business / Enterprise

Question 2.
‘Start-up’ India initiative was launched in ……………….
Answer:
2016.

1. (G) Select the correct option

(Innovation, Niche tourism, Agro tourism, Entrepreneurship)

Answer:

1. (H) Answer in one sentence

Question 1.
What is Agro tourism?
Answer:
Agro tourism is the idea to bring urban residents to rural areas for leisure travel and spending.

Question 2.
Who is ‘Entrepreneur’?
Answer:
Entrepreneur is a person who organises and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Question 3.
Who described ‘Entrepreneurship’ as the founding of a private enterprise?
Answer:
John Sturt Mill, a famous economist, described ‘Entrepreneurship’ as founding of a private enterprise in 1948.

1. (I) Correct the underlined word and rewrite the sentences

Question 1.
The word ‘Entrepreneur’ comes from the German verb entreprendre, it means ‘to undertake’.
Answer:
French

Question 2.
Entrepreneurs try to make home a better place where the needs of consumers can be satisfied.
Answer:
market

Question 3.
The loan taken under stand-up India scheme is repayable in ten years.
Answer:
seven.

2. Explain the following term/concept

Question 1.
Entrepreneur.
Answer:
An entrepreneur is a person who starts a business and is willing to risk loss in order to make money. The entrepreneurs are passionate to invent, innovate, lead or pioneers with a disruptive product or technology. Entrepreneurs try to make market a better place where the needs of consumers can be satisfied. They have the courage to offer and share an idea or a product or a service with the world. A small businessman, founder of multi-billion company, freelancing carpenter are examples of entrepreneurs.

Question 2.
Agro tourism.
Answer:
Agro tourism is the idea of bringing urban residents to rural areas for leisure travel and spending. Agro tourism is a commercial enterprise at a working farm, ranch or agricultural plant conducted for the enjoyment of visitors that generates supplement income for the owner. Agrotourism activities include picking fruits, tending bees, milking cows and other educational pursuits. In short, Agro tourism provides the tourists a chance to reconnect with the land and provides a ‘hand on experience’ with local foods. Agro tourism can support agricultural economy when local producers can no longer complete economically.

Question 3.
Start-ups.
Answer:
A start-up is defined as an entity having its headquarter in India, which was opened less than 10 years ago and has an annual turnover of less than Rs 100 crores. It is an initiative of the Government of India, launched in 2016. It aims at building an ecosystem which will nurture start¬ups in the country. So that, sustainable economic growth and large scale employment opportunities can be generated. One of the objectives of the Indian Government is to make India a nation of job creator instead of job seekers.

Question 4.
Stand-ups.
Answer:
Stand-up India scheme is for financing SC/ST and/or women entrepreneurs. The objective of the stand-up India scheme is to facilitate bank loans between Rs 10 lakh and Rs 1 crore to at least one SC or ST borrower and at least one woman borrower per branch for setting up a greenfield enterprise. This enterprise maybe in manufacturing, services or the trading sector. In case of non-individual enterprise at least 51% of the share-holding and controlling stake should be held by either an SC/ST or woman, above 18 years of age.

Question 5.
Intrapreneur.
Answer:
Intrapreneurship is the entrepreneurship within an existing organisation. An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. His idea or products may or may not earn immediate revenue for the company. But the employee keeps receiving his salary. The company provides the infrastructure. Many large organisations have dedicated Research and Development Departments where employees are encouraged to use their creative abilities. These ideas or innovations may earn handsome profit to an organisation. So Intrapreneur is the entrepreneurship within an organisation.

3. Study the following case /situation and express your opinion

Mr. Soham is a young MBA degree holder, Mr. Navin is B.Com graduate. Mr. Soham is willing to start dairy farm at his village, Mr. Navin is willing to work as cashier in Private Company.

(i) Find out dream of Soham and Navin.
(ii) State anyone feature of Entrepreneur.
(iii) To become successful entrepreneur, which qualities Mr. Soham should have?
Answer:
(i) Dream of Soham is to become ; entrepreneur and dream of Navin is to take up job in a private company and get a fixed income as salary.
(ii) Entrepreneur is a person who is willing to take risk in order to earn money and start a business.
(iii) To become a successful entrepreneur Mr. Soham should have qualities like innovator, creator, reactive and risk bearer.

4. Answer in brief

Question 1.
Define Entrepreneur. Explain functions of entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Question 2.
Define entrepreneur. Explain the qualities of successful entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] The qualities of a successful entrepreneur:
(1) Discipline : An entrepreneur has comprehensive strategies and tactics to accomplish the organisational goal. Successful entrepreneur is disciplined enough to take steps every day towards the attainment of his objectives. They eliminate any hindrance or distractions.

(2) Confidence : An entrepreneur is confident with the knowledge that he will make his businesses succeed. He shows the confidence in everything he does.

(3) Open-minded : An entrepreneur has the ability to look at everything around him and realises that every event and situation is a business opportunity. New ideas are constantly being generated about potential new business.

(4) Self starter : An entrepreneur is proactive, not waiting for someone to give him permission. Everything which needs to be done, he should start in himself. So, he sets parameters for the project.

(5) Competitive : An entrepreneur knows that he can do a job better than others. He needs to be competitive to win every game of the business.

(6) Creativity : An entrepreneur often comes up with solutions which are the synthesis of other item. He makes connections between two unrelated events or situations.

(7) Determination : An entrepreneur is determined to make all of their endeavours succeed, so will try again until it does. He sees opportunity for success in defeat.

(8) Strong communication skills : The entrepreneur has strong communication skill to sell the product and to motivate employees. He has to highlight benefits of situation and coach others to be successful.

(9) Strong work ethics : An entrepreneur mind is constantly on his work place to ensure that an outcome meets his expectations.

(10) Passion : Passion is the most important that of a successful entrepreneur. He genuinely loves his work because there is a joy that his business gives which goes beyond the money. He should always research and read to make his business grow and be better.

5. Justify the following statements

Question 1.
Entrepreneurship is the best source for self-employment.
Answer:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(4) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

Question 2.
Successful businessman takes calculated risk.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Question 3.
Entrepreneur must be a good communicator.
Answer:
The following are the characteristics of entrepreneurship development:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Organisation building : Entrepreneurship is an activity of organising various factors of production and various resources such as financial, physical and human resources. By considering place utility, time utility, form utility, etc., entrepreneur has to assemble different factors j of production and resources under one roof for producing new products.

(4) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(5) Managerial skill and leadership : The entrepreneur who has strong passion of doing or creating something new rather than just to earn profit will become a successful entrepreneur. Managerial skills and leadership are the most important features of successful entrepreneur. Other skills are not considered so important. Entrepreneur must be a good leader and manager of the groups working under him.

(6) Skilful management : The efficient and skilful management of the organisation is an important quality of entrepreneurship. With the help of professional management and skilled managers, entrepreneurship becomes easy and successful activity. The success of any entrepreneurship depends on its skilful management.

(7) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

(8) Gap filling function : Gap filling is considered as the most important feature of entrepreneur. It is the job of entrepreneur to find the gap and fill it or make up the deficiencies which always exist in the knowledge about the production function. Entrepreneur must have all the solutions of the problems.

Question 4.
An entrepreneur must be an innovator.
Answer:
Innovation is a dynamic change brought by entrepreneur by bringing new combinations of factors of production. Innovation by entrepreneur is must for development of an organisation. Entrepreneur can be an innovator in many ways. They are:
(1) Introduction of a new product: Entrepreneur through his dynamic skill and intelligence create new products by fulfilling innovation to commercialisation by embedding it in an environment where it did not exist previously.

(2) Introduction of a new method of production : By introducing new and latest technology an entrepreneur brings new life and energy in methods of production. Introduction of new technology, new machinery, scientific methods of production will save money and time of the organisation.

(3) Opening of a new market : An innovative idea with new products. It opens a new market which are not existing previously.

(4) Carrying out new forms of organisation for industry : An innovative entrepreneur is the one who discovers new methods and new materials. He utilises invention and discoveries in order to make new combinations. Thus, entrepreneur must be an innovator.

Question 5.
With creativity, farmers can expand their Agro tourism Business.
Answer:
With creativity, farmers can expand their Agro tourism business through recreation, fun, entertaining activities. The valuable activities which farmer can do creatively are:
(1) Outdoor recreation : Farmer can add value and can expand their agro tourism business by outdoor recreation like trekking, fishing, hunting, wild life study, horse back riding, etc. All such activities are the point of attraction for a tourist and this can be enjoyed with family and friends too.

(2) Educational experiences : Farmers can also be more creative in farming tours, rice plantation, cooking classes on chulha. All such activities help customer to get hands on experience which they enjoy with adding educational values.

(3) Entertainment : Entertainment through harvest festivals like Hurda Party’ in Maharashtra, local dances, folk songs are recreation also main attraction for a customer for agro tourism. Entertaining activities such as contest, adult and children classes, games, etc. can be arranged. This innovative touch helps farmer to expand his business.

(4) Hospitality services : Hospitality services like farm stays, guided forms makes customer more happy. Farmer can add value to guest experience by offering them refreshment, fresh fruits, juice, fresh food, etc.

Happy customer will definitely returns and also spread good word of mouth to their family and friends. Thus, with creativity, farmers can expand their agro tourism business.

6. Attempt the following

Question 1.
Explain the characteristics Entrepreneurship Development.
Answer:
The following are the characteristics of entrepreneurship development:
(1) Innovation : Entrepreneur need to be innovative. The essence of entrepreneurship is innovation. Innovation may take place in the following forms viz., the introduction of a new product in the market, the installation of new production technology, entry of specific product, the discovery of a new source of raw material, etc. In view of changing taste, preferences, etc., of the consumers, from time to time, entrepreneur undertakes research and development to manufacture products to satisfy the consumers’ needs.

(2) Economic activity: In order to satisfy human wants and as well as in exchange earn a better livelihood, an entrepreneur manufactures new products or modify the existing products as per the needs, preferences and demands of the consumers. For this purpose, he undertakes a systematic plan activity by using his skills, knowledge and experience. For this reason, entrepreneurship is considered as an economic activity.

(3) Organisation building : Entrepreneurship is an activity of organising various factors of production and various resources such as financial, physical and human resources. By considering place utility, time utility, form utility,etc., entrepreneur has to assemble different factors j of production and resources under one roof for producing new products.

(4) Creative activity : Innovation is a process of creating something new and creativity is most important for innovation. Therefore, innovation should be strongly supported by creativity, Innovation and creativity are supplement to each other. Introducing creativity in the production process is a challenging task before the entrepreneur. Hence, creativity is an essential element of entrepreneurship.

(5) Managerial skill and leadership : The entrepreneur who has strong passion of doing or creating something new rather than just to earn profit will become a successful entrepreneur. Managerial skills and leadership are the most important features of successful entrepreneur. Other skills are not considered so important. Entrepreneur must be a good leader and manager of the groups working under him.

(6) Skilful management : The efficient and skilful management of the organisation is an important quality of entrepreneurship. With the help of professional management and skilled managers, entrepreneurship becomes easy and successful activity. The success of any entrepreneurship depends on its skilful management.

(7) Risk-bearing : An entrepreneur has to undertake many risks including fall in prices, changes in fashions, earthquake, etc. All these risks cannot be insured with insurance companies. A risk which cannot be insured against and measured is called uncertainty. Entrepreneur buys factors of production at certain prices to combine their contributions into the products and then sells those products at uncertain prices in future. Thus, entrepreneur is a risk-bearing agent of production.

(8) Gap filling function : Gap filling is considered as the most important feature of entrepreneur. It is the job of entrepreneur to find the gap and fill it or make up the deficiencies which always exist in the knowledge about the production function. Entrepreneur must have all the solutions of the problems.

Question 2.
What is Entrepreneurship Development Programmes (EDP)?
Answer:
An entrepreneurship development
programme has been defined as “a programme designed to help a person in strengthening his entrepreneurial motive and in acquiring skills and capabilities necessary for playing his entrepreneurial role efficiently”.

EDP was first introduced in Gujarat in 1970 and was sponsored by the Gujarat Industrial Investment Corporation. EDP is basically a device through which people with entrepreneurial talents are identified, motivated to take up new industrial venture and guided in all aspects of starting a venture or an enterprise.

The following are the main objectives of EDP:
(1) Paster entreprenurial growth : The main objective is to increase the rate of all round entrepreneurial growth through training and educating them to develop the capability, talent and skills of existing entrepreneur.

(2) Optimum use of available resources : Another important objective is to use available resources to optimum level which result into minimisation of wastages and reduction in the overall cost of production. It also saves the invaluable resources for the future generation.

(3) Development of backward regions and improve economic status of socially disadvantage group : Its main objective is to establish different types of industries and business enterprise in the backward regions of the country. This leads to more employment opportunities and more income and savings of the people in backward group. By providing employment and other benefits to socially disadvantaged groups, EDP helps to improve their economic status.

(4) Generation of Employment opportunities : One of the important objectives of EDP is to generate employment opportunities for jobless people in the country by developing industries and business for them.

(5) Widening base for small and medium industries : The EDP helps to create, develop and widen the base for small and medium industries by strengthening them and create more and more entrepreneurs in the country. It helps in making country a job creator and not job seeker.

7. Answer the following

Question 1.
Define entrepreneur. Explain characteristics of entrepreneur.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Characteristics : The characteristics of entrepreneur are as follows:
(1) Intellectual capabilities : An entrepreneur is a creative thinker. He always thinks more creatively and better than others. He always give innovative ideas which is the sign of his intellectual capabilities. He has ability to analyse any situation and take proper decision.

(2) Future vision : The entrepreneurs have the ability of foreseeing the future market conditions. He can take appropriate decision by considering recent market situations and changes in market conditions. He must have knowledge of external business environment. This enables them to take timely actions.

(3) Hard work : An entrepreneur is ready to work hard. Hard work is necessary in any type of venture or business activity to make it more successful. He is required to work more tediously, sincerely and seriously for long terms.

(4) Technical knowledge : The entrepreneur should have advance technical knowledge about the products and service, plans of production, etc. Entrepreneur should also update his technical knowledge from time to time to understand latest changes take place in technology.

(5) Communication skills : An entrepreneur needs to communicate effectively with different people like customers, suppliers, creditors, employees, etc. from time to time. He should have good communication skill and command over language he speaks, to be able to express his ideas and strategies effectively. Good communication skills mean proper understanding between sender and the receiver of the message.

(6) Highly optimistic : He should have positive thinking and positive approach in all the activities he undertakes. He is always hopeful and confident about the market situations even in failure or difficult times. It helps him to take the business out of difficulties and make it successful.

(7) Risk-bearing capacity : This is one of the main characteristics of an entrepreneur. He should be calculative in taking risk. He should be prepared to face challenges and look for opportunities in every adverse situation of business.

(8) Self confidence : He should be self confident to achieve his organisational goals. He I should always keep himself confident and motivated to face various obstacles and come out victorious every time in every challenge he faces.

Question 2.
Define entrepreneur. Explain its functions.
Answer:
[A] Definition : According to Webster dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” The entrepreneurs are passionate to innovate, lend, invent or pioneer with a disruptive product or technology. A small businessman, a plumber or a founder of huge company are entrepreneurs.

[B] Functions : The functions of an entrepreneur are:
(1) Innovation : Usually, an entrepreneur has an innovative mind. He introduces new combination of means of production. He introduces something new or something different that would give his business a competitive advantage. Innovation sometimes involves problem solving and entrepreneur gets pleasure by using his talents to solve those problems.

(2) Determination of objectives : An entrepreneur is required to decide the aims and objectives of the business enterprise he intends to establish. He has to change those aims and ; objectives as per changing conditions or accept those which are beneficial to the enterprise as per the market situation.

(3) Development of market: An entrepreneur has to find new, different and innovative ways to market his products and services. As the markets are developing constantly, he has to conduct surveys, research to understand customer’s demand.

(4) New technology : Entrepreneur has to install new, advanced and efficient technology, new machinery, new and scientific methods of production to save overall cost and to improve the methods of production.

(5) Good relations : Prosperity, growth and development of enterprise mostly depend on the cordial and efficient relations of the superiors, subordinates and all employees. In this respect, co-ordination among the employees plays a significant role to make business enterprise successful.

(6) Organising funds : Finance is required to meet working capital and fixed capital needs of business. The entrepreneur has to raise adequate financial resources to keep enterprise in living condition. For this purpose, he has to keep good relation with the existing as well as potential investors.

(7) Taking decisions : Timely, correct and wise decisions are most important to run a successful business. An entrepreneur has to evaluate pros and cons of every business decision.

Maharashtra State Board OCM 12th Commerce Textbook Solutions

• Principles of Management Class 12 OCM Textbook Solutions
• Functions of Management Class 12 OCM Textbook Solutions
• Entrepreneurship Development Class 12 OCM Textbook Solutions
• Business Services Class 12 OCM Textbook Solutions
• Emerging Modes of Business Class 12 OCM Textbook Solutions
• Social Responsibilities of Business Class 12 OCM Textbook Solutions
• Consumer Protection Class 12 OCM Textbook Solutions
• Marketing Class 12 OCM Textbook Solutions

Functions of Management 12th OCM Chapter 2 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 2 Functions of Management Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 2 Exercise Solutions

1. (A) Select the correct options and rewrite the sentences

Question 1.
The functions of management start with ……………… function.
(a) organising
(b) planning
(c) co-ordinating
Answer:
planning

Question 2.
The functions of management end with ………………
(a) directing
(b) staffing
(c) controlling
Answer:
controlling

Question 3.
……………. sets out standards for controlling.
(a) Staffing
(b) Planning
(c) Co-ordinating
Answer:
Planning

Question 4.
Organizational function is important for execution of the plans which have been prepared by ……………. management.
(a) top level
(b) middle level
(c) lower level
Answer:
top level

Question 5.
……………… is the function which supports to activate the plans with the help of employees.
(a) Staffing
(b) Directing
(c) Co-ordinating
Answer:
Directing

Question 6.
………………. is the function of execution according to the plan and the organisational structure.
(a) Controlling
(b) Directing
(c) Staffing
Answer:
Directing

Question 7.
………………. arranges the work in such a way that minimum conflicts are raised.
(a) Co-ordinating
(b) Organizing
(c) Controlling
Answer:
Co-ordination.

1. (B) Match the pairs

Question 1.

Answer:

1. (C) Give one word/phrase/term for the following statements

Question 1.
The right person at the job with right pay.
Answer:
Staffing

Question 2.
A person who shows the correct path as well as guides employees in solving the problems.
Answer:
Director

Question 3.
First function of management.
Answer:
Planning

Question 4.
Last function of management.
Answer:
Controlling

Question 5.
It is an intellectual process of logical thinking and rational decision-making.
Answer:
Planning

Question 6.
The term that is used to denote the structure.
Answer:
Organisation

Question 7.
It is the process of attracting, recruiting, selecting, placing, appraising and remunerating the people.
Answer:
Staffing

Question 8.
The process that leads the employees towards the accomplishment of organisational goals.
Answer:
Directing

Question 9.
It increases the team spirit of work place.
Answer:
Co-ordinating

Question 10.
It is the process of comparing the actual performance with the predetermined standard performance.
Answer:
Controlling.

1. (D) State whether the following statements are True or False

Question 1.
Every function of management is not based on planning.
Answer:
False

Question 2.
Specialization in activities leads to increase in organisational efficiency.
Answer:
True

Question 3.
Qualified, efficient and skilled work force is always an asset of the organization.
Answer:
True

Question 4.
Cooperation is not necessary for smooth flow of organisational activities.
Answer:
False

Question 5.
Co-ordination motivates the employees to take initiative while completing their assigned task.
Answer:
True

Question 6.
Standards are not set for every performance in controlling function.
Answer:
False

1. (E) Find the odd one

Question 1.
Planning, Organizing, Staffing, Writing.
Answer:
Writing

Question 2.
Selecting, Training, Co-ordinating, Placing
Answer:
Co-ordinating.

1. (F) Complete the sentences

Question 1.
The tasks of getting the things done by others is known as ……………..
Answer:
Management

Question 2.
The functions of manager start with …………………
Answer:
Planning

Question 3.
The …………….. function of management initiates action
Answer:
Directing

Question 4.
Recruitments are done under ……………….. function.
Answer:
Staffing

Question 5.
………………. is the fundamental function of management.
Answer:
Planning

Question 6.
………………. integrates departmental activities for achieving common goal of the organisation.
Answer:
Co-ordinating

Question 7.
……………… is the last function of management.
Answer:
Controlling

1. (G) Select the correct option from the bracket

Question 1.
Planning is a detailed programme of (present/ future/past) course of action.
Answer:
future

Question 2.
Directing is a responsibility of (manager/ workers/people) at all levels.
Answer:
manager

Question 3.
Qualified, efficient and skilled workforce is always an (liabilities/assets/expenses) of the organization.
Answer:
assets.

1. (H) Answer in one sentence

Question 1.
What is management?
Answer:
The tasks of getting the things done by others to achieve organisational goal is called management.

Question 2.
What is planning?
Answer:
Planning means deciding in advance what to do when to do, how to do, where to do it and who is to do it.

Question 3.
What is staffing?
Answer:
The process of attracting, recruiting, selecting, placing, appraising, remunerating, developing and retaining the best workforce is called staffing.

Question 4.
What is directing?
Answer:
Directing is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve the pre-determined goals of the organisation.

Question 5.
What is controlling ?
Answer:
Controlling is a function of comparing the actual performance with the predetermined standard performance to measure deviation if any, identifying causes of deviation and suggest corrective measures.

1. (I) Correct the underlined word and rewrite the following sentences

Question 1.
Factors of business environment are always fixed.
Answer:
Factors of business environment are always changing.

Question 2.
Staffing is concerned with machines.
Answer:
Staffing is concerned with humans.

Question 3.
Directing is a function of comparing the actual performance with the pre-determined performance.
Answer:
Controlling is a function of comparing the actual performance with the pre-determined performance.

Question 4.
Co-ordination helps to maximise the wastage of resources and controls the cost of work.
Answer:
Co-ordination helps to minimise the wastage of resources and controls the cost of work.

Question 5.
Controlling measures are rigid to some extent.
Answer:
Controlling measures are flexible to some extent.

1. (J) Arrange in proper order

Question 1.
Controlling, Organizing, Planning.
Answer:
Planning, Organising, Controlling.

Question 2.
Directing, Co-ordinating, Staffing.
Answer:
Staffing, Directing, Co-ordinating.

2. Explain the following terms/concepts

Question 1.
Management
Answer:
The task of getting the work done by others to achieve organisational goal is called management. According to L. A. Allen, ‘Management is what manager does. Management is a set of principles which relate to the various functions such as planning, organising, staffing, directing, co-ordinating, controlling, etc. which are helpful in achieving organisational goals.

Question 2.
Planning
Answer:
Planning is the basic function of management. Planning is an intellectual process of logical thinking and rational decision-making. It includes deciding the things to be done in advance. In short, planning is a detailed programme of future course of action. Proper planning and its implementation is key to achieve the objectives of an organisation.

Question 3.
Organising
Answer:
Organising is the process of identifying, bringing the required resources together such as men, money, material, machines and method and arranging them in proper manner to achieve the goals of an organisation. It is prepared by the top level management. Organising function decides the ways and means to achieve what has been planned. Organising is more important in executing the plan.

Question 4.
Staffing
Answer:
Staffing is the function of execution according to plan and organisational structure. It is the process of attracting, recruiting, training, developing, appraising, remunerating, developing and retaining the best workforce. Right person at right job with right pay is the basic principle of staffing. This function is concerned with managing humans and not material.

Question 5.
Directing
Answer:
Directing is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve pre-determined goals of an organisation. Director shows correct path as well as guides the employees in solving the problems wherever necessary. Directing is the soul of management function.

3. Study the following case/situation and express your opinion

Question 1.
Mr. Ram, an emerging entrepreneur has designed a 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 the responsibilities such as recruitment, selection, training and development and to determine 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 also to suggest the remedies to the employees wherever necessary. On this context, find out the management functions performed by
(i) Mr. Ram
(ii) Mr. Shyam
(iii) Mr. Shubham
Answer:
(i) Mr. Ram performs the function of planning and organising. He is an emerging entrepreneur and plans the business structure and organises different resources.

(ii) Mr Shyam is performing the function of staffing as his main duty is to recruit, select, train and develop the employees and to decide their remuneration accordingly.

(iii) Mr. Subham is performing the function of controlling. He compares actual performances of employees with standard performance given. He discovers causes of deviations and suggests remedies to overcome deviations.

Question 2.
In XYZ Company, Mr. Lele gives instructions to the employees working under him, provide guidance and motivates them for their best performance. On the other hand, Mr. Sawed takes effort to harmonize the work done by the employees of different departments while achieving organisational goal. Mr. Desai is looking after the arrangement of required resources the business organization.
Mention the name of employee engaged in following functions :
(i) Organisation
(ii) Direction
(iii) Coordination
Answer:
(i) Mr Desai is engaged in the organising function as he is looking after arrangement of required resources for the business organisation.
(ii) 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.
(iii) Mr. Sayyed is engaged in the function of co-ordination as he takes effort to harmonize the work done by the employees of different departments.

4. Distinguish between

Question 1.
Planning and Organising
Answer:

Question 2.
Organising and Staffing
Answer:

Question 3.
Staffing and Directing
Answer:

Question 4.
Directing and Controlling

Question 5.
Co-ordination and Controlling
Answer:

Question 6.
Planning and Controlling
Answer:

Question 7.
Organising and Directing

Question 8.
Organising and Co-ordinating
Answer:

5. Answer in brief

Question 1.
Explain any five points of importance of planning.
Answer:
Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

Question 2.
Explain any five points of importance of organizing.
Answer:
Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

Question 3.
Describe any five points of importance of staffing.
Answer:
Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

Question 4.
Explain any five points of importance of directing.
Answer:
Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

Question 5.
Describe any five points of importance of ! coordinating.
Answer:
Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

6. Justify the following statements

Question 1.
Planning is the first function of management.
Answer:
(1) Planning is the basic function of management. Every function of management is based on planning. Planning is an intellectual process of logical thinking and rational decision i making.

(2) Designing i.e. doing a proper planning and implementing it accordingly is the key of achieving the objectives of organisation.

(3) Planning means deciding in advance what to do, when to do, how to do, where to do and who is to do it. Thus, it is a detailed programme of future courses of action.

(4) Planning involves setting objectives, identifying alternative courses of action and selecting the best plan. It focuses on organisation’s objective and develop various course of action to achieve those goals.

Question 2.
Controlling is the last function of management.
Answer:
(1) It is important for am organisation to keep a check on whether things are moving as per plan or not. So controlling function comes as the last but indispensable function of management. The effectiveness of planning can be determined with the function of controlling.

(2) Controlling function helps in comparing the actual performance with the pre-determined standard and performance. It is the process of bringing about conformity of performance with planned action.

(3) Controlling function helps in measuring deviation, if any, identifies the course of deviation and suggests corrective measures. The process of controlling helps in formulation of future plans also.

(4) Controlling helps in checking and measuring performance at all the levels of management, as it compares and finds deviation, analyses the causes of deviation and suggests corrective measures. All planning may fail in the absence of proper controlling measures.

Question 3.
Organizing facilitates administration as well as operation of the organization.
Answer:
(1) Organising function is also called as ‘doing function’ i.e. putting the plan into action. Administration and operation both are doing function as organising is the process of putting together various resources and activities of the organisation into a system.

(2) Organising involves identifying the activities and grouping of relative activities of administration and operational department.

(3) Organising function defines, departmentalizes and assigns activities so that they can be most effectively executed for the smooth flow of administration.

(4) Due to proper grouping of the tasks and the employees, there is increase in production and reduction in wastage. The duplication of work can be avoided and effective delegation becomes possible.

Question 4.
Right person at right job with right pay is the basic principle of staffing.
Answer:
(1) The main function of staffing is to select the right person for the right job with right pay. Selecting the right person for the right job brings efficiency and specialisation in the organisation.

(2) It also bring job satisfaction as adequate remuneration increases morale of the employees. Training and development programmes and job security are the factors which are important in providing job satisfaction.

(3) Proper selection of qualified, efficient and skilful work force is always an asset of the organisation. Proper selection of employees contributes in the higher efficiency and leads to long term positive effects in the organisation.

(4) With proper selection process, right persons for right jobs are placed and regularly appraised on merit basis. The criteria of appraised are duly communicated which brings peace and harmony in the organisation.

Question 5.
Co-ordination between different functions and all levels of management is the essence of organisational success,
Answer:
(1) Co-ordination is an integration of different activities which is essential for their smooth flow. It establishes harmony among all the activities of an organisation in achieving desired goals. Co-ordination will not exist unless efforts are taken at all levels of management.

(2) Co-ordination is the synchronization of the efforts of a group so as to provide unity of action for organisational goals. It is a hidden force which binds all other functions at all levels of management.

(3) In an organisation, a number of persons are working together to achieve a common goal. Their work is closely linked with each other. Co-ordination function brings all the group efforts together and harmonise them carefully.

(4) Co-ordination is orderly arrangement of group efforts to provide unity of action to achieve common goals. Co-operation, team work and higher efficiency level lead to attainment of goals and thus, it is the essence of organisational success.

7. Attempt the following

Question 1.
Explain the importance of planning.
Answer:
Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

Question 2.
Describe the importance of organizing.
Answer:
Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

Question 3.
Explain the importance of staffing.
Answer:
Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

Question 4.
Explain the importance of directing.
Answer:
Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

Question 5.
Describe the importance of coordinating.
Answer:
Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

Question 6.
Explain the importance of controlling.
Answer:
Importance : The importance of controlling function is explained as follows:
(1) Fulfilling goals of organisation : Controlling helps to fulfil and achieve organisational goals. The controlling function ensures that the activities take place according to the plans and if there is any deviation, timely action is taken. When all the activities are conducted successfully, according to plan the organisational goals can be achieved as desired.

(2) Making efficient utilisation of resources : By using various control techniques, managers can keep a close watch over the utilisation of human, physical and financial resources. They can prevent the misuse or wastage of resources and ensure proper utilisation of the same.

(3) Accuracy of standards : Proper and efficient control system help the management to check the standards set are accurate or not. This system also keeps check on the changes taking place in the organisation from time to time. Controlling functions are flexible to some extent. This in turn facilitates the organisation to review the standards by considering such changes.

(4) Motivates Employees : A good control system gives information in advance about the standard performance and discovers efficient and inefficient employees. Efficient employees may be given Financial rewards or incentives to motivate them further. The manager may recommend motivational measures in case it finds that deviations are due to insufficient motivation.

(5) Ensures order and discipline : An efficient and good control system ensures order and discipline in the organisation. It prevents and reduces unnecessary behaviour on the part of employees. Under this system, regular checking is done by the managers or departmental heads and preventive measures are taken against deviation or indiscipline.

8. Answer the following

Question 1.
Define the term Planning and explain the importance of planning.
Answer:
[A] Meaning : Planning is the fundamental and basic function of management. It is a process of setting goals and choosing the means to achieve these goals. Planning means deciding the future course of action which determines what is to be done, how to do it, when to do it, who is to do it and how results are to be evaluated. It is a detailed programme in which all activities to be performed in future are mentioned keeping in mind the objectives. Thus, it is an intellectual process of logical thinking and rational decision-making.

[B] Importance : The importance of planning is explained as follows:
(1) Helps to set clear objectives : Planning is the process of setting objectives, targets and formulating plans to achieve these objectives. With the help of proper planning, management can analyse the present condition of the organisation and can identify the ways of attaining the desired position in future.

(2) Provides path of action : Planning ensures that the goals or objectives are clearly set. It acts as a guide and provides direction for doing the right things at the right time and in a right way. It helps the employees to understand the organisational goals and what they must do to achieve the same.

(3) Planning improves performance : It helps manager to improve future performances of employees by setting clear objectives and selecting a right course of action. It leads to efficiency in working of the employees. Due to proper planning the employees can work according to guidelines which helps them to improve performance. This results into higher profitability of the organisation.

(4) Minimizes the risk : Planning is the process of looking into the future and anticipating the future changes. By deciding in advance the task to be performed, planning helps to deal with future changes and unforeseen events. Planning helps in anticipation of risk and decide preventive measures accordingly. Though changes or risks cannot be eliminated but proper planning minimizes them.

(5) Planning leads to optimum utilization of resources: Plans are made on the basis of availability of resources with proper allocation for various activities. Proper allocation of resources brings higher efficiency and desired results with minimum wastages.

(6) Helps in decision-making : Planning helps the management to achieve to take a rational decision and to select best alternatives by considering all positive and negative outcomes of all the alternatives the decisions are taken after selecting the best suitable alternatives a predefined goals.

(7) Useful is setting the standards for controlling: Planning sets the standards of performance to be achieved and which can be measured with the actual performance for find out about any deviation. Such deviation can be taken care by controlling steps. Thus, planning provides basis for maintaining discipline in an organisation.

(8) Facilitates co-ordination of all activities : Proper planning reduces the overlapping among all activities of business which are closely linked with each other. Planning interrelates such activities of all department work as per overall plan and thus management co-ordination is achieved.

(9) Facilitates other functions : Planning is the primary function of all the functions of management. Every organisational function is set to achieve the organisational goals at the planning stage. Other management functions such as organising, staffing, etc. cannot be undertaken till the plan is ready.

(10) Promotes innovative ideas : Planning is the basic function. The process of decision-making involves promotion of innovative ideas after critical
thinking. It is the most challenging activity for the management as it guides all future activities and actions of an organisation. In the end, these innovative plans result in attainment of the organisation goals.

Question 2.
What is Organising? Explain the importance of organising.
Answer:
[A] Meaning: Organising is the process of putting together various activities, resource and people into a system so that people work together for achieving planned objectives. Organising means arranging everything in an orderly manner. It means making arrangements like money, machinery, materials, man-power and other physical resources to achieve the predefined goals. The synchronization and combination of workforce, physical, financial and information resources in the process of organising.

[B] Importance : The importance of organising is explained as follows:
(1) Facilitates administration as well as operation : Organising is the process of identifying, grouping and assigning the activities of administration and proceeding according to its operational activity. Due to proper grouping of the task and employees, there is a reduction in duplication of work results in effective delegation.

(2) Brings specialisation : Organising starts from dividing the total work into smaller units and assigning them to different individuals according to their qualification, capabilities and experience. It leads to increase in overall productivity.

(3) Defines job properly : In the organising function the employees are assigned different jobs according to their qualification, skill and experience and the managers clearly define the details of each job. It clearly spells out what exactly has to be done in every job by each employee.

(4) Clarifies authority and responsibility : The organising function clearly defines authority, power, position of every manager and responsibility, accountability of every employee. This enables proper execution of work and at the same time eliminates confusion, duplication, misunderstanding. It also helps to bring efficiency in working of managers.

(5) Establishes Co-ordination : Organising function helps in establishing co-ordination among different activities of different department. Organising defines clear cut relationship among various positions and ensures mutual co-operation amongst them. Organising helps in co-ordination between different levels of managers of different departments for smooth functioning of an organisation.

(6) Helps for effective administration : A sound organising structure facilitates in defining the right job to the right individual. Similarly, the functions, duties and role of each and every employee are well defined in the organising function. This facilitates effective administration and ultimately leads to efficient administration.

(7) Helpful for growth and diversification : Smooth and efficient functioning, clearly defined authority and responsibilities and smooth co-ordination leads to the growth of the organisation. Use of appropriate techniques of control brings efficiency and reduces wastages which ultimately leads to higher profitability of the organisation. All this is possible when the structure of the organisation is well defined.

(8) Creates sense of security: Organising function defines and clarifies the jobs, functions and roles, powers and authority assigned to every manager and employee. Clarity in job profile eliminates confusion and gives responsibility. It helps a lot in getting mental satisfaction and develops sense of security.

(9) Scope for innovation : The manager can use his talent, knowledge and experience to take decisions on various matters and problems. For instance, decision to adopt new technique of production in the organisation. Thus, his talent flourishes by adopting new changes in the methods of work.

(10) Optimum utilisation of resources : Organising function lays down the best possible uses of resources for a specific job. Thus, it is possible to use the available resources to their optimum level and thereby avoid wastage as well as their excessive use.

Question 3.
What do you mean by Staffing? Describe the importance of staffing.
Answer:
[A] Meaning : Right person at right job with right pay is the basic principle of staffing, Staffing is the process involved in attracting, identifying, assessing, recruiting, placing, evaluating and directing employees. It is recruitment, selection, development, training and compensation of employees. It is very challenging for the organisation to focus on best utilisation of workforce by using their talents and skills, retaining them and arranging training and t development programme.

[B] Importance : The importance of staffing is given as follows:
(1) Effective management function : Staffing is considered an effective managerial function as it deals with human resource. Employees appointed in the organisation through staffing function perform various activities in different areas of the organisation such as production, marketing, finance, etc.

(2) Effective utilization of Human Resources : A well organised staffing department discovers the talented, skilful, experienced and qualified staff. Proper care is taken at every stage of recruitment, selection, placement, etc. It ensures smooth functioning of all the managerial areas of the organisation.

(3) Builds relationship : A sound staffing policy creates a team spirit among the employees. Due to team spirit, a sense of belongingness among the employees is developed. This in turn leads to better communication and co-ordination of managerial efforts in an organisation. A smooth human relation is the key to better flow of co-ordination in an organisation.

(4) Helps Human Resource Development: Skilled and experienced employee is an asset of a business organisation. Staffing function of management is mainly concerned with human factor of production. Efforts are made to utilise the human resources more efficiently.

(5) Helps in effective use of technology and other resources : Staffing function trains employees to use latest technology, capital, material, and method of work more effectively. This brings competitive strength to the organisation. It also helps in improving standard of work and productively in terms of quality and quantity.

(6) Improve efficiency : Regular training and development programmes provide to employees to improve their performance levels. Through proper selection the organisation gets talented and quality employees.

(7) Long term effect : Sub-functions of staffing, namely, proper selection, training, development, motivation, etc. help to achieve long-term benefits such as increase in productivity and efficiency, loyalty of customers and employees, etc.

(8) Essential contribution : The selection of employees should be based on the ability of the prospective candidates to meet the future challenges. Selection is based on the ability of the prospective employee so that organisation can meet the future challenges wisely. Therefore, in staff selection, the selectors should take into account the contribution of the employees in their future roles.

(9) Provides job satisfaction : A good staffing policy creates job satisfaction in the minds of the employees. For instance, proper placement of the individuals according to their knowledge, experience and aptitude, timely promotions, training etc. give job satisfaction. Fair remuneration and job security are the factors which are important in providing job satisfaction.

(10) Maintains harmony: Proper staffing policy helps to develop good labour relations. The performances of employees are regularly appraised and promotions are made on merits. Due to this, employees develop positive attitude towards the management which, in turn, helps to bring about peace and harmony in the organisation.

Question 4.
Give the meaning of Directing and explain the importance of directing.
Answer:
[A] Meaning : Directing is the process of instructing, guiding, inspiring, motivating and supervising the employees to achieve pre-determined organisational goals. It is a continuous function started at top level and flows through the lower level of an organisation. It is continued through out the tenure of an organisation. A few philosophers called it as ‘Life spark of an Enterprise. Director shows the correct path as well as guides the employees in solving the problems.

[B] Importance : The importance of Directing is as follows:
(1) Initiates action : Direction initiates action. It activates employees to put in their best efforts, to achieve the goals. Without effective direction, other managerial functions like planning, organising, staffing, co-ordinating and controlling become ineffective. Managers have to stimulate action by issuing instructions like what to do, how to do, etc. to the subordinates and by supervising them from time to time.

(2) Integrates efforts: At every level of the management there are subordinates under managers. The work assigned to these subordinates is interrelated. The directing function integrates the activities of the subordinates by guidance, supervision and counselling. It results in achievement of organisational goals.

(3) Means of motivation: Objectives of an organisation can be achieved only if the people working in it are properly motivated through monetary and non-monetary incentives. It boosts the morale of employees, contribute their maximum efforts and motivates them to give their best.

(4) Provides stability: Effective direction through supervision, motivation, leadership and communication provides stability and maintains balance in the organisation. This in turn results in the growth of the enterprise at faster rate. For long term survival of the organisation, stability in the organisation are necessary.

(5) Coping up with the changes : Effective direction facilitates changes in the organisation. It enables the enterprise to adopt advance technology, new methods of production, modern techniques of management, etc. It is a direction function which helps the superiors to motivate the subordinates to adapt to the new changes, new challenges, etc. Adapting to the environmental changes is necessary for the growth of the organisation.

(6) Efficient utilisation of resources : Constant instructions can be given to the subordinates to make the maximum use of the available resources and to make every possible effort to minimize the wastages of resources. Thus, effective direction helps in optimum use of available resources such as men, materials, money and methods which helps to reduce cost and increase profit.

(7) Creates team spirit : The supervisors through proper direction can guide, lead and motivate their subordinates to co-ordinate the activities. Thus, team spirit is created which helps the employees to perform their activities more efficiently and on time. This results in faster achievement of organisational goals.

(9) Increases efficiency level : Effective direction and guidance results in better performance of the employees. It also enables the managers and other superiors to guide the subordinates as the leader while performing their jobs.

(8) Exploring capabilities of individuals: Every employee in the organisation has certain capabilities and potential. Through proper direction, motivation and encouragement manager can utilise them to their optimum level to achieve organisational goals and increases efficiency of organisation.

(10) Co-operation : Co-operation between different departments from top level to the bottom level and among the people within the department is must. Co-operation is essential for the success and achievement of organisational goals and for smooth flow of all organisational activities.

Question 5.
What is Coordinating? Describe the importance of coordinating.
Answer:
[A] Meaning : Co-ordination as a function of management refers to the task of developing harmony between various sections of departments and between various departments of the organisation. Thus, co-ordination is a hidden force which binds all other functions of the management integrating the group activities to accomplish the organisational goal efficiency. As the work of each one is linked in an organisation is necessary in co-ordination.

[B] Importance : The importance of Co-ordinating is explained as follows:
(1) Encourages Team Spirit : Co-ordination is concerned with integrated group efforts. Team work under the direction of the manager encourages the subordinates to work sincerely and give better performance to achieve organisational goals. Co-ordination helps to reduce the conflicts between the employees and departments regarding policies, roles, etc. and increase their team spirit.

(2) Gives Proper Direction : Group or combined efforts of all the employees in an organisation helps to co-ordinate with each other and achieve the desired goals. Thus, combined efforts of all the employees always help an organisation to remove its limitations and achieve organisational objectives. The interdependence of departments gives proper direction to the employees.

(3) Facilitates motivation : In the process of co-ordination the superiors motivate their subordinates by providing them with monetary and other incentives. An effective co-ordination increases efficiency and results in growth and prosperity of the organisation which encourages job security, high income, promotion and incentives.

(4) Optimum utilisation of resources : Proper and effective co-ordination helps to bring together all the resources of the organisation. This in turn helps to make the optimum possible use of available resources to achieve organisational goals. Co-ordination also helps to avoid wastage of resources and control the cost.

(5) Achieve organisational objectives : Proper coordination helps to reduce wastages, delays in completion of targets, departmental disputes, etc. of the organisation to a great extent. This ensures smooth working of the organisation in the process of achievement of objectives.

(6) Improve relations : Co-ordination brings develops good relations among the employees working at different levels of management. For instance, marketing department depends upon production department, production department : depends upon purchase department and so on. Proper co-ordination always helps employees to improve and build strong relations among the employees working in different departments.

(7) Leads to Higher Efficiency : Co-ordination facilitates the optimum use of physical and human resources. This leads to higher returns at lesser cost, thereby higher efficiency. Co-ordination ultimately leads to the optimum use of the resources, higher efficiency reduction in cost and reduction in wastages.

(8) Improves goodwill : Higher sales and higher profitability can be achieved due to synchronized efforts. It earns a name and goodwill in the corporate world. This leads to better value of shares in the stock exchange (market).

(9) Unity of direction : Co-ordinating function helps to bring together activities of different departments to achieve common goals and objectives of the organisation. Therefore, co¬ordination is needed to give proper direction to all the departments of the organisation.

(10) Specialisation : In every business organisation all departments are headed by qualified and specialised professionals in their respective field. The specialised knowledge of these departmental heads helps in various managerial decisions. Proper and efficient co-ordination among these professionals helps to achieve organisational goals (targets) as planned by the top management.

Question 6.
Define the term Controlling and explain the importance of controlling.
Answer:
[A] Meaning : Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes and suggest the corrective measures. It is performed by all levels of management. Controlling is an indispensable function at all levels of management.

[B] Importance : The importance of controlling function is explained as follows:
(1) Fulfilling goals of organisation : Controlling helps to fulfil and achieve organisational goals. The controlling function ensures that the activities take place according to the plans and if there is any deviation, timely action is taken. When all the activities are conducted successfully, according to plan the organisational goals can be achieved as desired.

(2) Making efficient utilisation of resources : By using various control techniques, managers can keep a close watch over the utilisation of human, physical and financial resources. They can prevent the misuse or wastage of resources and ensure proper utilisation of the same.

(3) Accuracy of standards : Proper and efficient control system help the management to check the standards set are accurate or not. This system also keeps check on the changes taking place in the organisation from time to time. Controlling functions are flexible to some extent. This in turn facilitates the organisation to review the standards by considering such changes.

(4) Motivates Employees : A good control system gives information in advance about the standard performance and discovers efficient and inefficient employees. Efficient employees may be given Financial rewards or incentives to motivate them further. The manager may recommend motivational measures in case it finds that deviations are due to insufficient motivation.

(5) Ensures order and discipline : An efficient and good control system ensures order and discipline in the organisation. It prevents and reduces unnecessary behaviour on the part of employees. Under this system, regular checking is done by the managers or departmental heads and preventive measures are taken against deviation or indiscipline.

(6) Facilitates co-ordination : Every manager or superior co-ordinates the activities of subordinates towards the process of controlling. Controlling reveals the weak points where co¬ordination falls short, so that the management can take timely action.

(7) Psychological pressure : Efficient control system puts psychological pressure on the employees to perform better. Their performance is measured and compared with standards set from time to time. All the employees know that their performance will be evaluated and hence they put on their best to perform well.

(8) Ensures Organisational Efficiency and Effectiveness : Efficient and proper control system ensures organisational efficiency and ; effectiveness. The factors of controlling such as motivation for better performance, achievement of co-ordination in the performance and managers’ responsibility ensure that the organisation works i more efficiently.

(9) Build good Corporate image : An efficient controlling system helps to improve overall efficiency and quality of work. As a result organisation achieves its goals according set standards. This in turn helps to build a good corporate image and develops reputation of the business.

(10) Acts as a Guide : Controlling function provides set of standard performance. All levels of managers and employees work according to it. They follow these standards to achieve desired results. The steps taken for controlling an activity guide the management while planning any future activity.

Maharashtra State Board OCM 12th Commerce Textbook Solutions

• Principles of Management Class 12 OCM Textbook Solutions
• Functions of Management Class 12 OCM Textbook Solutions
• Entrepreneurship Development Class 12 OCM Textbook Solutions
• Business Services Class 12 OCM Textbook Solutions
• Emerging Modes of Business Class 12 OCM Textbook Solutions
• Social Responsibilities of Business Class 12 OCM Textbook Solutions
• Consumer Protection Class 12 OCM Textbook Solutions
• Marketing Class 12 OCM Textbook Solutions

Principles of Management 12th OCM Chapter 1 Solutions Maharashtra Board

Balbharti Maharashtra State Board Organisation of Commerce and Management 12th Textbook Solutions Chapter 1 Principles of Management Textbook Exercise Questions and Answers.

Class 12 OCM Chapter 1 Exercise Solutions

1. (A) Select the correct option and rewrite the sentence

Question 1.
………………… was regarded as Father of Scientific Management.
(a) Henry Fayol
(b) F. W. Taylor
(c) Philip Kotler
Answer:
(b) F. W. Taylor

Question 2.
Principle of ……………… is based on ‘A place for everything and everything in its place’.
(a) Discipline
(b) Order
(c) Equity
Answer:
(b) Order

Question 3.
Member of organization should receive orders from ………………..
(a) many superior
(b) one superior
(c) all superiors
Answer:
(b) one superior

Question 4.
Scalar chain means the hierarchy of …………….. from the top level to the lower level for the purpose of communication.
(a) discipline
(b) unity
(c) authority
Answer:
(c) authority

Question 5.
Taylor recommended total ……………….. foremen to control the various aspects of production.
(a) eight
(b) three
(c) two
Answer:
(a) eight

1. (B) Match the pairs

Answer:

1. (C) Give one word/phrase/term for the following statements:

Question 1.
The study of movement of an employee as well as machine while completing particular task.
Answer:
Motion Study

Question 2.
The technique of observing and recording the time required by an employee to complete a given task.
Answer:
Time Study

Question 3.
Study consists of an organised, systematic and critical assessment of various activities.
Answer:
Work Study

Question 4.
The principle which deals with ‘to do work with innovative way’.
Answer:
Principle of Initiative

Question 5.
The principle which is based on ‘a place for everything and everything in its place’.
Answer:
Principle of Order.

1. (D) State whether the following statements are True or False

Question 1.
The principles of management are universal in nature.
Answer:
True

Question 2.
Management principles are applied differently under different situations.
Answer:
True

Question 3.
Only some principles of management are important.
Answer:
False

Question 4.
Henry Fayol has given different techniques of management.
Answer:
False

Question 5.
F. W. Taylor has proposed 14 principles of management.
Answer:
False

Question 6.
Each member of organisation should receive orders only from one superior.
Answer:
True

1. (E) Find the odd one.

Question 1.
Principle of Authority and Responsibility, Motion Study, Principle of Division of Work, Principle of Discipline.
Answer:
Motion Study

Question 2.
Fatigue Study, Principle of Unity of Command, Work Study, Motion Study.
Answer:
Principle of unity of Command

1. (F) Answer in one sentence

Question 1.
What is principle of unity of command?
Answer:
Principal of unity of command implies that every employee should receive orders and instructions from one boss only and he should be responsible and accountable to him only.

Question 2.
What is standardization of tools and equipment?
Answer:
Standardisation of tools and equipment refers to providing the standard tools and equipment for production and maintaining standard working conditions and environment at the place of work.

Question 3.
What is differential wage rate?
Answer:
Differential wage rate means offering higher rate of wages to those employees who complete the work more than the standard quantity and lower rate of wages to those employees who perform below the standard fixed.

Question 4.
What is Subordination of Individual Interest into Organisational Interest?
Answer:
Subordination of individual interest into organisational interest means the interest of an individual must be given less importance than the interest of the organisation.

Question 5.
What is the meaning of principle?
Answer:
Principle means a fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning.

1. (G) Correct the underlined word and rewrite the following sentences.

Question 1.
Security in job always affects adversely on the efficiency of employees.
Answer:
Insecurity in job always affects adversely on the efficiency of employees.

Question 2.
Esprit de corps means ‘division is strength’.
Answer:
Esprit de corps means ‘unity is strength’.

Question 3.
Each member of organisation should receive orders from only one subordinate.
Answer:
Each member of organisation should receive orders from only one superior.

Question 4.
Decentralisation means concentration of powers and authorities at a specific position.
Answer:
Centralisation means concentration of powers and authorities at a specific position.

Question 5.
Management techniques are applied differently under different conditions.
Answer:
Management principles are applied differently under different conditions.

2. Explain the following terms/concepts

Question 1.
Motion Study
Answer:
(1) This is one of the important techniques f of scientific management developed by E W. Taylor. Motion study refers to the movements of employees, as well as movement of machine while completing . a particular task. The motion study helps the manager to know the movements required for a person to do a particular job.

(2) This study is useful to manager to eliminate the unnecessary movements or their sequence for doing the job. It also helps the manager to combine some actions or movements in the process. It increases efficiency and productivity of the employees and helps in reducing the wastage of time, raw material and improving the usefulness of resources.

Question 2.
Differential Piece Rate System.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.

(2) In differential piece wage rate plan, the. standard is determined for production by the management. The workers who produce more them the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.

(3) Taylor suggested the differential piece wage system and further stated that the discrimination should be made between the efficient and inefficient workers. This technique explains that, efficient workers should be paid more remuneration in comparison to inefficient workers.

(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.

Question 3.
Fatigue Study
Answer:
The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

Question 4.
Time Study.
Answer:
(1) Time study is one of the important techniques of scientific management developed by E W. Taylor. Time study is useful to the manager to determine and record the time needed to complete a particular job or task. It is based on the speed of average worker.

(2) Under this technique of scientific management, every part of the entire work is considered in detail and the time required to complete each element of job or task is ascertained. On the basis of the time study, the manager determines the standard time required to complete a particular job. This also facilitates the manager to decide the remuneration to be paid and efficiency of the worker and to control the cost of work.

3. Study the following case/situation and express your opinion.

Question 1.
Mr. Harshad is an entrepreneur and engaged in 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 above case.
(ii) What is the designation of Mrs. Naina in this organisations?
(iii) Who is responsible for overall planning of the organisation?
Answer:
(i) In the above case, principle of Division of work is identified.
(ii) The designation of Mrs. Naina is Human Resource Manager.
(iii) Mr. Harshad, an entrepreneur of eco-friendly utensils, is responsible for overall planning ; of the organisation.

Question 2.
In ‘Fine Diamonds Ltd.’ 200 employees are working in three shifts. In first shift 60 employees, in second shift 60 employees and in third shift 80 employees are working without sufficient breaks except lunch break and shift change break. No employee is able to complete the work in 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?
Answer:
(i) In the above case, Principle of scientific management called Science, Not Rule of Thumb needs to be followed.
(ii) Work study based on the technique of fatigue study and Scientific task setting can be used for smooth flow of work in ‘Fine Diamonds Ltd.’
(iii) Reasons for non-completion of work in time are:

1. Long working hours without sufficient breaks reduces the efficiency of labour.
2. Inappropriate time management (planning) done by the departmental head (Functional Manager) result into delay for next shift employees.
3. Standard required time and standard output are not defined by the manager or management of “Fine Diamonds Ltd.”

4. Answer in brief

Question 1.
Explain any five principles of management of Henry Fayol.
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

(2) Principle of Authority and Responsibility:
Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task within a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

(3) Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

(4) Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.

(5) Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

(6) Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

Question 2.
Describe any four techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level:

1. Route clerk : Explains the movement of work from one machine to other.
2. Instruction clerk : Gives and records instructions to complete the work.
3. Time and cost clerk : Decides the time to complete the work and work out the cost.
4. Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

1. Gang Boss : Gets the actual work done from employees.
2. Speed Boss : Takes care that work is done in specified time.
3. Repair Boss : Manages security and maintenance of mechanism.
4. Inspector : Makes sure that work is completed as per specified standards.

5. Justify the following statements

Question 1.
Principles of management are flexible in nature.
Answer:
(1) Principles of management are the statements of fundamental truth which act as guidelines for managerial decision-making and action. They establish cause and effect relationship. They are evolved through observation, analysis and experiments.

(2) Principles of management although fundamental, are not rigid. They are flexible in nature in the sense they can be changed or modified according to the situation and requirements of the organisation. Managers can change these principles to suit the requirements of the organisation.

(3) Principles of management are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc. For instance, in the context of present business scenario, at many places the ‘family management has been substituted by professional management’.

(4) Modern business world is dynamic. The situations in a business enterprise keep on changing continuously. No two circumstances are identical. Principles of management can be changed, adjusted or modified and used in the enterprise as per its changing needs and requirements. By identifying problems of business changes will be accepted.

Question 2.
Management principles are helpful in optimum utilization of resources.
Answer:
(1) Materials or abstract qualities that a person or organisation uses to perform the work is called resources, e.g. tools, stocks, time, employees, etc. In every organisation, two types of resources are used and they are: (i) Physical resources such as materials, machines, money, etc. and (ii) Human resources i.e. manpower.

(2) The different types of resources are used in the organisation to manufacture or produce different types of goods and services. The resources are scarce in relation to their demand and therefore resources should not be wasted and misused. They should be used carefully and up to their optimum capacity.

(3) The basic aim and function of management are to make and maintain proper balance and allocate these resources by putting them to maximum possible use and control on wastage of resources. Through the use of different techniques and management principles, management maintains discipline and healthy working environment to establish cordial relationship with the employees.

(4) It helps to increase the efficiency level of employees and to manage the administration effectively, e.g. use of modern and standard tools and machineries. It also helps to increase quality, productivity and level of efficiency of human resources.

Question 3.
Principle of equity is important.
Answer:
(1) The principle of equity suggests that employer should give kind, fair, just and equal treatment to the employees. Managers should be kind, impartial and fair to their subordinates.

(2) The principle of equity further states that there should not be any discrimination between the employees while making the payment of wages. The employees working on the same level but in different departments should be paid same wages.

(3) The wages payable to employees should not depend on the departments but the level at which they are working, e.g. Foremen should be paid higher wages than that is paid to employees working under them.

(4) The principle of equity also states that there should not be any discrimination between the employees while distributing work between them. As far as possible, there should be equal distribution of work. Thus, equality in treatment of employees boosts the morale and develops a sense of belongingness among the employees. It helps to develop loyalty of employees towards organisation and avoid conflicts.

Question 4.
Taylor emphasized on standardization of tools and equipment.
Answer:
(1) Fredrick Winslow Taylor published Principles of Scientific Management. His primary objective was to increase efficiency of employees by scientifically designing jobs. According to his views, management problems should be solved through experiments and use of scientific techniques rather than rules of thumb and triad and error approach.

(2) Taylor had conducted many experiments at workplace and as a result of those experiments, he advocated standardisation of tools and equipment. Standard here, means a level of quality or achievement, especially a level that is acceptable.

(3) According to him, standardised working environment and standardised methods of production tools and equipment help to reduce spoilage and wastage of materials. This in turn reduces the overall cost of production.

(4) Similarly use of standardised tools and equipment increases efficiency of employees and also helps to reduce fatigue among the workers. This improves the quality of work.

Question 5.
Differential piece wage rate plan is necessary.
Answer:
(1) According to F. W. Taylor, the differential piece wage rate plan is necessary to motivate the employees to attain higher standard performance and to earn remuneration at a higher rate. Differential piece wage rate plan suggests that remuneration should be fixed and paid in such a way that average worker is motivated to attain standard output.

(2) In differential piece wage rate plan, the. standard is determined for production by the management. The workers who produce more them the standard are to be paid more in the form of incentives and those who produce less than the standard are to be paid less by way of penalty. This technique encourages those who perform well and motivates those who have performed less than the standard required to improve their performance.

(3) Taylor suggested the differential piece wage system and further stated that the discrimination should be made between the efficient and inefficient workers. This technique explains that, efficient workers should be paid more remuneration in comparison to inefficient workers.

(4) Thus, the differential piece-rate wage plan technique motivates the able employees to attain higher performance and earn wages at higher rate.

6. Attempt the Following

Question 1.
Explain in detail any five Principles of Management given by Henry Fayol’s?
Answer:
(1) Principle of Division of Work : According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

(2) Principle of Authority and Responsibility:
Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task within a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

(3) Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

(4) Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.

(5) Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

(6) Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

Question 2.
Describe different techniques of scientific management.
Answer:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.
(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level :

1. Route clerk : Explains the movement of work from one machine to other.
2. Instruction clerk : Gives and records instructions to complete the work.
3. Time and cost clerk : Decides the time to complete the work and work out the cost.
4. Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

1. Gang Boss : Gets the actual work done from employees.
2. Speed Boss : Takes care that work is done in specified time.
3. Repair Boss : Manages security and maintenance of mechanism.
4. Inspector : Makes sure that work is completed as per specified standards.

Question 3.
Elaborate Principles of Scientific Management.
Answer:
The principles of scientific management are as follows:

1. Science, Not Rule of Thumb
2. Harmony, Not Discord
3. Mental Revolution
4. Co-operation, Not Individualism
5. Division of Responsibility
6. Development of employer and employees for greater efficiency and maximum prosperity

1. Science, Not Rule of Thumb : Rule of thumb method is based on personal judgements of the manager which should be substituted with the methods developed through scientific analysis of work. Taylor emphasised more on the use of scientific method for every small job. This principle related with selecting the best way of doing a work after scientific analysis. Under this method, standard required time and standard output are defined by the manager. This method is useful to save time and human energy, to get expected standard output and to increase organisational efficiency.

2. Harmony, Not Discord : This principle states that, in every organisation these should be proper co-ordination and harmonious relations between the management and employees. This will help in minimising conflicts between them and in achieving the goals of the organisation. The perfect understanding between employees and management is also helpful in creating healthy work environment. Organisation should also think about the maximum prosperity of the employees.

3. Mental Revolution : The concept of ‘mental revolution’ was introduced by Taylor. This principle highlights on the complete change in the attitude of the management and employees toward each other. Both should recognise their equal importance in the organisation. They should co-operate with each other to achieve goals or objectives of the organisation. This in turn will increase productivity and profits.

4. Co-operation, Not Individualism : This principle states that there should be mutual co-operation between employees and management. Co-operation, trust, team spirit, etc. are important to avoid internal competition and to create healthy working environment. Management should always appreciate and consider the suggestions given by the employees in decision-making process. The management should treat the employees as an integral part of the organisation in all respects. Employees should also resist themselves from going on strikes and making unacceptable or unnecessary demands from the management. Thus, they should see each other as two pillars of the organisation.

5. Division of Responsibility : This principle states that while dividing the work there should be’ corresponding division of responsibility between the managers and employees. Major planning should be done by the top and middle level management and employees should concentrate on its execution. The reporting of the jobs should be done by the subordinates as per the instructions given by their superiors. For the best performances, the management should always help, encourage and guide the employees.

6. Development of employer and employees for greater efficiency and maximum prosperity : Profitability and best performance of any organisation mostly depend on the skills, intelligence and capabilities of its employees. Arranging and providing training and development programmes for the employees at regular interval or whenever required are absolutely important. It helps to increase profitability of the organisation. Proper opportunity should be given to each ; employee to attain his highest efficiency and ; maximum prosperity.

Question 4.
Explain nature (characteristics) of principles of management.
Answer:
The nature (characteristics) of principles of management is (are) explained as follows:
(1) Universal application : Management principles are universal in nature. They are applicable to all types of organisations irrespective of the type, size or nature, e.g. government, college, hospital, bank. etc. Their application may have to be modified, but they are suitable for all kinds of organisations, whether in private sector or public sector. Similarly, principles of management are applicable to all levels of management. For instance, the principle of division of labour is applicable to all types of organisations.

(2) General guidelines : Management principles give general guidelines to tackle the organisational situations wisely and to solve the problems systematically. They are not rigid. Application of management principles depend upon the situation, size and nature of organisation, e.g., when we say according to principle of remuneration, the employees must be paid fair remuneration. The term ‘fair’ may vary as per nature, size and financial ability of the organisation.

(3) Principles are formed by practice and experiments : The management principles are developed gradually with thorough research work, experiments and systematic observations. The results of such observations and experiments are developed after their practice in different organisations.

(4) Flexibility : Management principles, although fundamental are not rigid statements. They have to be applied differently under various conditions. It is possible to make suitable changes in their application according to the requirement of the organisation. Thus, Management principles are flexible guidelines providing ample scope for making changes according to the nature of enterprise, its size, competitive situation, etc.

(5) Behavioural in nature : Management is a teamwork or a group activity. Management principles aim at influencing individual efforts and directing them to achieve various objectives of the organisation. They are directed towards regulating human behaviour so that people give their best to the organisation. Thus, principles of management are designed to influence human behaviour.

(6) Cause and effect relationship : Management principles indicate cause and effect relationship. Each principle has a definite effect on the efficiency or working of management. For example, payment of good remuneration and incentives increases output. Similarly, effective advertisement given by the organisation increases the sale of a product.

(7) All principles are of equal importance : All the principles of management have equal importance and they also carry equal weightage with reference to their applicability in the organisation. For example, it cannot be said that the principle of division of labour is more important than the principle of unity of command or vice versa. Management principles are not static in nature. They are not absolute like principles of pure sciences like Chemistry, Mathematics, etc. They are the principles of social science. They are to be modified and applied according to the size and nature of the organisation, keeping in mind the requirements.

7. Answer the following questions

Question 1.
What are the techniques of scientific management? Explain in detail.
Answer:
The techniques of scientific management given by F. W. Taylor are explained as follows:
(1) Work Study : Before allocating the work among the workers, systematic work study should be done by the management. Work study includes Em organised systematic and critical assessment of different activities or functions. It is based on the different techniques like time study, method study, motion study and fatigue study.

(i) Time Study : Under this method, the manager observes and record the time an employee takes to complete a particular job or task. This technique is useful to fix standard time needed to complete a specific task under given conditions. It measures the efficiency of an employee and helps to control the cost of work.

(ii) Method Study : In order to get best quality with cost effectiveness, it is important and challenging for a manager to identify the best method from various available methods to complete the specific job. This method is useful to reduce the wastage of time, raw material and to improve usefulness of the resources to achieve defined objectives. It is also useful to determine the methods to handle the raw materials, storage, inspection and transportation.

(iii) Motion Study : Motion study refers to the close study of the movements of employees as well as machines in completing a particular task. This technique is useful to manager to eliminate the unnecessary movements and to find out the best method of completing a specific task. It improves efficiency and productivity of the employees. This method is also useful to understand and decide about the elimination of some elements of a job or changing their sequence for smooth flow of work.

(iv) Fatigue Study : The term ‘fatigue’ implies physical or mental exhaustion. Long working hours with insufficient breaks, heavy working tools, target pressure and poor working conditions lead to fatigue. It reduces efficiency of the employees and creates adverse effect on their health. To reduce fatigue it is very important to keep and maintain the operational efficiency of the workers.

(2) Standardisation of Tools and Equipment:
On the basis of experiments conducted at work place, Taylor insisted to provide standard tools and equipment, standard working environment and standard methods of production. It helps to reduce spoilage and wastage of materials, cost of production, fatigue among the employees on the one hand and improves quality of work on the other hand.

(3) Scientific Task Setting : Taylor laid stress on the need for fixing a fair day’s work. The technique of scientific task setting is useful to restrain the employees from performing the task much below their capacity. As a result, they will complete their task according to the standards given and management will be able to keep proper control on the optimum use of available workforce.

(4) Scientific Selection and Training: By using scientific selection procedures, management easily select right persons for the right jobs. According to this technique, job specifications required to be fixed and employees are selected as per predetermined standards in an impartial way. After their selection, the management should arrange proper training programmes to increase efficiency.

(5) Functional Organisation : Taylor suggested that planning of the work is to be done by different people and actual work is to be supervised by different set of people. Every worker in the factory is to be supervised by two different sets of supervisors. He further suggested total eight foremen to control the various parts of the production. They are categorised as follows:
(A) At planning level:

1. Route clerk : Explains the movement of work from one machine to other.
2. Instruction clerk : Gives and records instructions to complete the work.
3. Time and cost clerk : Decides the time to complete the work and work out the cost.
4. Discipline : To see to it that workers work as per factory rules.

(B) At implementation level:

1. Gang Boss : Gets the actual work done from employees.
2. Speed Boss : Takes care that work is done in specified time.
3. Repair Boss : Manages security and maintenance of mechanism.
4. Inspector : Makes sure that work is completed as per specified standards.

(6) Differential Piece – Rate Wage Plan : Taylor suggested that discrimination should be made between efficient and less efficient workers. In this technique, the standard is determined (fixed) for production. The workers who produce more than the standard output are to be paid remuneration at higher rates and those who produce less them the standard quantity are to be paid at lower rate of wages. This technique encourages the employees to attain higher standard performance to earn higher wages.

Question 2.
Explain 14 principles of Henry Fayol in detail.
Answer:
Henry Fayol, the Father of Modern Management developed the following 14 principles:
principles of management:

1. Principle of Division of Work
2. Principle of Authority and Responsibility
3. Principle of Discipline
4. Principle of Unity of Command
5. Principle of Unity of Direction
6. Principle of Subordination of Individual Interest to Organisational Interest
7. Principle of Centralisation
8. Principle of Remuneration
9. Principle of Scalar Chain
10. Principle of Order
11. Principle of Equity
12. Principle of Stability of Tenure
13. Principle of Initiative
14. Principle of Esprit de corpse (Team Work)

1. Principle of Division of Work: According to this principle, the entire work such as technical, financial, commercial, accounting, management and security operations should be assigned to different employees as per their qualification, qualities, capabilities and experience. It gives benefits of specialisation and improves efficiency and expertise of employees. This in turn helps to attain expected productivity level.

2. Principle of Authority and Responsibility: Authority implies right or freedom to take decisions. The manager should be given authority to get the work done systematically from the subordinates. Authority should always go with corresponding responsibility, e.g. if manager is given authority to complete a specific task w12. Principle of Stability of Tenure:ithin a given time, he would be held responsible for the same. Manager should have adequate authority to take managerial decisions on his own to achieve the goal.

3. Principle of Discipline: Fayol insists that discipline is essential for smooth working of an organisation. It helps to achieve the goals set in the organisation. In relation to organisation, discipline means strictly obeying instructions of the superiors. There should be clear and utmost understanding between management and employees in respect to organisation’s rules. It is necessary to observe basic discipline at all levels of management.

4. Principle of Unity of Command: According to this principle, every employee should receive orders and instructions from one boss only and he should be accountable to him only. If he receives orders from more them one boss at a time, he will not understand whose orders should be executed first. To avoid this, organisational hierarchy should be well defined and each employee in the organisation should know his immediate boss. He should receive orders and instructions from him only and should report to him only.

5. Principle of Unity of Direction: Fayol advocates “One head for One plan”. It means that a group of employees working on similar activities should have common objectives and must work under one head (senior). All the objectives of the different groups should be in line with the objectives of the organisation. If this principle is followed there will be an effective co-ordination of the individual efforts and energies.

6. Principle of Subordination of Individual Interest to Organisational Interest: According to this principle, the interest of the organisation must always be given greater importance than the interest of an employee or a group of employees. While taking decision, the manager should always consider the interest of whole group rather than the interest of an individual employee. Similarly, employees should surrender their personal goals or interests before that of an organisation e.g. while playing a game a team players should always play to win the game and not for his individual records.

7. Principle of Centralisation: Centralisation means concentration of authority or power in a few hands at the top level. As number of employees is less in a smaller organisation there is centralisation of authority. Decentralisation means even distribution of authority or power at every level of management. As number of employees and levels of management are more in a larger organisation, there must be decentralisation of some authorities for its smooth functioning. According to Fayol, there must be a proper balance between centralisation and decentralisation, depending upon the nature and size of an organisation.

8. Principle of Remuneration: According to this principle, the employees must be paid fair and appropriate remuneration to keep them satisfied financially and to retain them within the organisation for longer period of time. While fixing remuneration various factors such as the skill, knowledge, expertise, tenure, cost of living, market trend, profitability of organisation, etc. should be considered. It boosts the morale of employees and increases efficiency and productivity.

9. Principle of Scalar Chain: According to Fayol, in the organisation decisions, orders, instructions, messages, etc. must be passed through a chain, i.e. from the general manager to the respective functional manager, then to the supervisor, then to the foreman and then ultimately, to the workers. Similarly, suggestions, information, grievances, etc., must flow from the worker in the upward direction. This is called Scalar Chain. Sometimes, following a scalar chain becomes a lengthy process. In such cases, ‘Gang Plank’ is followed which permits speedy and direct communication between the employees working at the same level of authority. However, for this, permission of the proper authority is necessary.

10. Principle of Order: The principle of order is based on ‘a place for everything and everything in its place’. According to this principle, in every organisation there should be proper, systematic and orderly arrangement of men and materials. There should be a fixed place to keep every material and thing used in the organisation and a fixed place or a seat for every employee. The purpose of this principle is to reduce wastage of time and energy. This principle emphasises more I on the proper and optimum utilisation of physical and human resources.

11. Principle of Equity: This principle states that the management should be fair as well as friendly to the subordinate staff. There should be no discrimination of employees in regard to division of work, delegation of the authorities, deciding the monetary terms, etc. This principle also states that the remuneration should depend not on the department but at the level at which employees are working, It means the employees working on the same level but in separate departments must be paid equal wages. It will also help in avoiding conflicts in an organisation.

12. Principle of Stability of Tenure: According to this principle, at the time of recruitment of employees, the management should assure them about the stability of tenure (i.e. job security). This creates a sense of belonging among the employees. Job security increases efficiency of the employees and minimises employees turnover ratio.

13. Principle of Initiative: Initiative means to do the work in an innovative way in his or her personal capacity. According to this principle, managers should give freedom, opportunity or encourage the subordinates to take initiative while working on given job. Their suggestions and ideas should be invited before framing the plan. This can work as a morale booster for the employees and leads to timely achievement of organisational goals.

14. Principle of Esprit de corpse (Team Work): ‘Esprit de corpse’ means union is strength. This principle integrates and co-ordinates the individual and group efforts. It emphasizes the spirit of teamwork. The manager as a leader should create the feeling of team spirit and understanding among the various groups. When entire group of employees works as a team, their efforts get directed towards realising the goals of the organisation.

Maharashtra State Board OCM 12th Commerce Textbook Solutions

• Principles of Management Class 12 OCM Textbook Solutions
• Functions of Management Class 12 OCM Textbook Solutions
• Entrepreneurship Development Class 12 OCM Textbook Solutions
• Business Services Class 12 OCM Textbook Solutions
• Emerging Modes of Business Class 12 OCM Textbook Solutions
• Social Responsibilities of Business Class 12 OCM Textbook Solutions
• Consumer Protection Class 12 OCM Textbook Solutions
• Marketing Class 12 OCM Textbook Solutions

Psychology Class 12 Chapter 8 Positive Psychology Question Answers Maharashtra Board

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 8 Positive Psychology Textbook Exercise Questions and Answers.

Positive Psychology Class 12 Psychology Chapter 8 Questions and Answers

1. Choose the correct option and complete the following statements.

Question 1.
……………. is the father of positive psychology.
(a) Carver
(b) Masten
(c) Seligman
Answer:
(c) Seligman

Question 2.
Barbara Fredrickson introduced the Broaden and ………………. theory.
(a) Build
(b) Emotion
(c) Learning
Answer:
(a) Build

Question 3.
The belief that good things will happen is called as ………………..
(a) pessimism
(b) resilience
(c) optimism
Answer:
(c) optimism

Question 4.
The capacity to understand what the other person is experiencing is………………
(a) sympathy
(b) empathy
(c) emotion
Answer:
(b) empathy

2. Answer the following questions in 35 – 40 words each.

Question 1.
Explain the theories of happiness
Answer:
Happiness is a positive emotional state that is subjective to each person, for e.g., people feel happy when they are successful or surprised or loved, etc.
The main theories of happiness are-

1. Need/ goal satisfaction theories – Happiness is experienced when some need or goal is satisfied, e.g., Rohit feels happiness when he clears IIT-JEE exams.
2. Process/ activity theories – Happiness is experienced when one engages in a particular activity, e.g., Sumit enjoys trekking.
3. Genetic/ personality theories – Genetic and personality characteristics are involved in the experience of happiness.

Question 2.
What is mindfulness?
Answer:
Mindfulness is the basic human ability to be fully aware of where we are and what we are doing. It means that we should not be overly reactive or overwhelmed by what’s going on around us. Mindfulness refers to mental awareness that helps to focus on the ‘Here and Now’. It helps to increase self-regulation, which results in growth and happiness. Mindfulness is maintaining moment by moment awareness of our bodily sensations, environment, thoughts and feelings.

Question 3.
What is resilience?
Answer:
According to the American Psychological Association, resilience is the process of adapting well in the face of adversity, trauma, tragedy, threats or significant sources of stress such as family and relationships, health, work and finances, etc. It is the act of ‘bouncing back’ inspite of barriers or set backs.

Resilience helps the person to recover form setbacks with the least negative consequences. Individuals high on resilience exhibit the following characteristics-

1. they regain their confidence after a period of emotional disturbance
2. they are able to maintain their psychological well-being.

The types of resilience are physical, psychological, emotional and community resilience.

3. Write short notes on the following in 50 – 60 words each.

Question 1.
Life above zero
Answer:
Traditional psychology focused on life at and below zero. Zero is the line that divides illness form
health. Hence, life below zero indicates a life that is full of problems stress, diseases, etc. Positive psychology emphasizes the study of life above zero.

-1 to +1 indicates neutral charactristics while below 0 indicates disorders, dysfunction or illness. Life above zero covers a large area of positive aspects of behaviour such as mindfulness, resilience, happiness, hope, trust and empathy. It acknowledges elements of living that enrich and meaningfully sustain what is referred to as “the good life” in positive psychology.

Question 2.
Determinants of happiness
Answer:
Happiness is a positive emotional state. Factors like health, prestige, income, success, etc., contribute to only a small portion of our total happiness.
Some factors are predictors of long lasting happiness-

1. Strong, intimate social relationships, positive contacts and good support system.
2. Optimism leads to less of negative emotions like stress.
3. Self-esteem enhances our confidence level and ability to approach challenges in a constructive manner.
4. Achieving challenging goals- If the goals are too easy, it leads to boredom and if they are too difficult, it leads to frustration. Moderately challenging goals, increase the chance of success, leading to happiness.
5. Perceiving meaning and purpose in life, without which we will experience frustration, boredom, etc.
6. Looking at life’s challenges as an opportunity rather than a threat helps to develop our potential.

Question 3.
Characteristics of an optimist
Answer:
Optimism is a mental attitude that includes feelings of hopefulness and a belief that the future will be positive and favourable. It is the belief that negative events are merely setbacks that are temporary and can be overcome.
The characteristics of optimists are:

1. they try to choose the best options available
2. they tend to be high on self confidence
3. they face difficulties positively as they view them as a challenge for a person to become strong
4. they are hopeful about the future and do not generalize present failure to future events.

Question 4.
Methods to promote empathy
Answer:
Empathy is the capacity to understand and feel what another person is experiencing from within their frame of reference i.e. capacity to place oneself in another’s position.

According to Simon Baron-Cohen there are three components of empathy viz. cognitive empathy emotional reactivity and social skills. Empathy builds a sense of security and trust. It is closely related to emotional intelligence and is a key to successful relationships.
Empathy can be promoted by using the following methods-

1. Increase social interactions – Especially with people who need help in order to understand their perspectives and motives.
2. Connecting through similarities – With others, e.g., those having same hobbies/ work/ goals, etc.
3. Understanding what you are feeling – Those who are able to accurately judge their own motives, can empathize better.
4. Challenge yourself – Tasks that are challenging lead to the person struggling to achieve a goal. This lead to humility which enables empathy.
5. Cultivate a sense of curiosity – This leads to open-mindedness and a better understanding of those around us.
6. Widen our social circle – Contact with people of different races, cultures, viewpoints helps to increase empathy towards them at a neurological level.

4. Explain the Following concepts.

Question 1.
Positive Psychology
Answer:
Positive Psychology is a newly emerging branch of psychology. Martin Seligman officially introduced Positive Psychology as a subfield of psychology. It is the science of happiness, human strength and growth. Positive Psychology focuses on building of character strengths like courage, happiness, perseverance, etc., rather than on anxiety, conflict, avoidance, etc. According to Seligman, positive psychology is “the scientific study of positive human functioning and flourishing on multiple levels that include the biological, personal, relational, institutional, cultural and global dimensions of life.”

Question 2.
Half glass full and half glass empty.
Answer:
Optimism is a mental attitude that includes feelings of hopefulness. It is a belief that the future will be positive and favourable and that negative events are merely setbacks that are temporary and can be overcome. Seligman explained about optimism in the book ‘Learned Optimism’. Our perspective determines whether or not we will show optimism.

A glass which has water upto its mid level may be perceived as half full (optimism) or as half empty (pessimism). This is described as ‘Half glass full and half glass empty’.

Question 3.
Empathy
Answer:
Empathy is the capacity to understand and feel what another person is experiencing from within their frame of reference, i.e., capacity to place oneself in another’s position. According to Simon Baron-Cohen, there are three components of empathy viz. cognitive empathy i.e., perspective taking, emotional reactivity (connecting in an intimate bond with another person) and social skills (moved to help the other). Empathy builds a sense of security and trust. It is closely related to emotional intelligence and is a key to successful relationships.

Question 4.
Mindfulness
Answer:
Mindfulness is the basic human ability to be fully aware of where we are and what we are doing. It means that we should not be overly reactive or overwhelmed by what’s going on around us. Mindfulness refers to mental awareness that helps to focus on the ‘Here and Now’. It helps to increase self-regulation, which results in growth and happiness. Mindfulness is maintaining moment by moment awareness of our bodily sensations, environment, thoughts and feelings.

Question 5.
Social resilience
Answer:
According to the American Psychological Association, resilience is the process of adapting well in the face of adversity, trauma, tragedy, threats or significant sources of stress such as family, health, etc. It is the act of ‘bouncing back’ inspite of barriers or set backs.

Social resilience is also called community resilience. It is the ability of groups of people to respond to and recover from adverse situations such as natural disasters, epidemics, war and socio-economic challenges to their community. This is mainly due to strong connections or bonds that the community members have with each other.

5. Answer the following question in 150 – 200 words each.

Question 1.
What are the essential building blocks of resilience?
Answer:
According to the American Psychological Association, resilience is the process of adapting well in the face of adversity, trauma, tragedy, threats or significant sources of stress such as family, health, etc. It is the act of ‘bouncing back’ inspite of barriers or set backs. Resilience helps the person to recover form setbacks with the least negative consequences. Individuals who are resilience tend to-

1. regain their confidence after a period of emotional disturbance
2. they are able to maintain their psychological well-being.

6. The types of resilience are physical, psychological, emotional and community resilience.

According to Ann Masten, building blocks is ‘ordinary magic’, which involves behaviour that can be easily learnt. The 7 C’s of reilience are-

1. Competence – Competence is the ability or know-how to handle situations effectively. Competence is acquired through actual experience.
2. Confidence – True confidence is a strong belief in one’s own abilities. Confidence is gained by demonstrating competence in real life situations.
3. Connection – Family is the central force in an individual’s life. Connections with other people, schools and communities gives the individual a sense of security that allows him/her to be independent and develop creative solutions.
4. Character – It refers to a clear sense of right and wrong and a commitment to integrity. An individual with character has a strong sense of self-worth and confidence.
5. Contribution – An individual who understands the importance of personal contribution develops a sense of purpose that can motivate him/her, further leading to him/her psychological well-being.
6. Coping – A person who learns to cope effectively with stress is better prepared to overcome life’s challenges.
7. Control – When an individual realizes that he can control the outcomes of his decisions and actions, he is more likely to know that he has the ability to bounce back.

Question 2.
Recollect the most challenging situation you faced in your life till now and the way you dealt with it. With reference to the 7 C’s of Resilience, which qualities helped you to overcome the challenge? For each of the C’s write the process you adopted to deal with the situation.
Answer:
[Students are expected to answer this question by themselves.]

7. Find out the positive aspects of behaviour from the example given below and answer in one word.

Question 1.
Mahesh studies so attentively that he never gets distracted.
Answer:
Mindfulness

Question 2.
Sujata lost her hands in an accident. Now she has learned to write with her leg.
Answer:
Resilience

Question 3.
Vasanta’s daughter died by cancer. He has opened a rehabilitation center for cancer patients.
Answer:
Empathy

8. Case Study

Anurag was a software engineer working in one of the leading company’s in the USA for almost 5 years. He was in a stable relationship and he had plans to start a family and to settle there. Unfortunately due to the poor economy in USA he lost his job and had to return back to India. He felt distressed as he realized that he had lost everything he had worked so hard to build. This made him feel like a failure.

1. How do you think Anurag can apply the 7 C’s of resilience to overcome the difficult situation he is in?
2. As Anurag’s friend how will you empathise with him and help him deal with this challenge?
3. Anurag has developed a very pessimistic approach after these setbacks, how will you guide him to stay happy and optimistic?

Answer:
According to the American Psychological Association, resilience is the process of adapting well in the face of adversity, trauma, tragedy, threats or significant sources of stress such as family, health, etc. It is the act of ‘bouncing back’ inspite of barriers or set backs. Resilience helps the person to recover form setbacks. Individuals who are resilient tend to-
(i) regain their confidence after a period of emotional disturbance
(ii) maintain their psychological well-being.

Anurag can apply the 7 C’s of resilience as follows-
1. He has already worked in a reputed firm successfully. Hence he has the Competence and Confidence in his own abilities. Although he is feeling a sense of hopelessness and failure, he must live in the ‘Here and Now’ by taking stock of the situation. Character will provide Anurag self worth and provide a sense of purpose and motivation, i.e., Contribution. When he realizes that he can still succeed in life by applying for a similar job here and accepting the situation, i.e., Control he can use effective Coping mechanisms. Besides, he should not forget social support of family and friends, i.e., Connection.

2. As Anurag’s friend, I can understand and feel what he is going through, from his frame of reference. Since, he is feeling distressed and like a failure due to loss of job, I will empathize with him by being encouraging and supportive. I will try to make him understand that with his own competence and experience, he can easily find a well paying job in India. I will also encourage him to improve his professional skills and seek social support from family and friends.

3. It seems natural for a person who was in a good job, stable relationship and successful position to feel pessimistic and like a failure when all of these no longer exist in his life. I will help Anurag to have a positive approach towards the challenges and difficulties in his life, i.e., view all setbacks i.e. loss of job, being sent back from the USA, etc., as opportunities not as obstacles. This will help him to gain a better perspective.

Class 12 Psychology Chapter 8 Positive Psychology Intext Questions and Answers

ACTIVITY (Textbook Page. No. 99)

Activity 4

(a) Meera scored poor marks in the examination.
(b) Suresh’s scholarship application got rejected.
(c) Mahesh lost his job.
Imagine yourself in their position and answer the following questions-
(i) How does being in their situation make you feel?
(ii) What do you think about yourself and your future being in their position?
Answer:
(i) You may feel

• Hopeless and so you might think that your future is dark.
• Helpless and so you might think that you cannot do anything to get out of the situation.
• Worthless and so you might think that you are a failure.

(ii) In contrast you may also feel

• Hopeful and think that the current adverse situation can change in the future.
• Challenged and think that you have the ability to overcome the adversity.
• Confident and think that one failure does not define you

Activity 5 (Textbook Page. No. 100)

What would your feeling be in the following situations?
(i) After a long struggle your friend got a job.
(ii) You see a person who just met with an accident and is bleeding profusely.
(iii) Your cousin is awarded a PhD. degree.
Answer:
In all the above examples I would feel empathy i.e., feel what these persons are experiencing.
(i) I will also feel happy and hopeful.
(ii) I will also feel concerned and helpless,
(iii) I will feel elated and proud.

Activity 8 (Textbook Page. No. 104)

Think of someone you know who has faced a challenging situation in their life and were successfully able to deal with it. This situation may have been emotionally difficult to deal with like death of a loved one, loss of a job, dealing with chronic illness, failure etc. Answer the following questions and discuss the answers in class.

1. How did they handle the adverse situation?
2. Which obstacles did they have to overcome?
3. In your opinion which specific attitudes and skills helped them cope with the situation?
4. Do you think they received help and support from others?

Answer:
Sundari, a professor in a reputed college was diagnosed with cancer at age 35 years.

1. Initially, she was overcome by feelings of intense fear and hopelessness. However, she decided that she would not give up the fight against cancer.
2. She had to overcome obstacles such as intense pain, fear of chemotherapy, pity shown by some ‘well wishers’, financial constraints, etc.
3. Specific attitudes that helped her to cope with this trauma were Resilience, fighting spirit interacting with other cancer survivors and good coping skills.
4. Yes, she received immense support from family, colleagues, friends and support groups like CPAA and Cancer Aid Foundation.

Activity 9 (Textbook Page. No. 105)

Read about the life of Indian boxer Mary Kom. Discuss in class the struggles she faced and how she overcame them to win multiple medals for the country.
Answer:
Mary Kom was born in Kangathei in the north-east state of Manipur. She grew up in a humble surroundings in an agricultural family. She is the eldest of three siblings. Her father had been a keen wrestler. Since a young age, Mary exhibited an inclination towards sports, like athletics and football. She was inspired by Dingko Singh, (a fellow Manipur who won a gold medal in 1998 Asian games ) to take up boxing. She was unable to pass her matriculation exam but still cleared X Std., from NIOS, Imphal. When she was 15, she left home to study at the Sports Academy in Imphal.

Her first coach K. K. Meitei recalls her as being hard working, dedicated, a quick learner with a strong will power. She has won many accolades such as 6 World Championships, Bronze medal at London Olympics (2012), 1 gold medal each at Asian Games (2014) and at Commonwealth Games (2018). She has been awarded the Padma Shri, Padma Bhushan and Padam Vibushan.

Her life story exhibits how Mary overcome obstacles of poverty, family opposition, gender bias to become the undisputed Queen of Boxing. Even at age 37, she still has the hunger to compete and win medals for India. Mary showed resilience as she has returned to the very demanding sport of boxing, after the birth of each child and has exceeded all expectations.

Activities 1, 2, 3, and 6
Answer:
[These are personal response questions.]

Class 12 Psychology Textbook Solutions Digest

• Psychology: A Scientific Discipline Class 12 Psychology
• Intelligence Class 12 Psychology
• Personality Class 12 Psychology
• Cognitive Processes Class 12 Psychology
• Emotions Class 12 Psychology
• Psychological Disorders Class 12 Psychology
• First Aid in Mental Health Class 12 Psychology
• Positive Psychology Class 12 Psychology

Psychology Class 12 Chapter 7 First Aid in Mental Health Question Answers Maharashtra Board

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 7 First Aid in Mental Health Textbook Exercise Questions and Answers.

First Aid in Mental Health Class 12 Psychology Chapter 7 Questions and Answers

1. Choose the correct option and complete the following statements.

Question 1.
One of the major obstacles to getting help from a mental health professional is the ………………… attached to mental illness.
(a) policy
(b) stigma
(c) society
Answer:
(b) stigma

Question 2.
Friends and family are not a substitute for …………………..
(a) solving problems
(b) giving solutions
(c) professional help
Answer:
(c) professional help

Question 3.
In our culture the ………………….. of an individual is considered to be the reflection of one’s family.
(a) intelligence
(b) behaviour
(c) status
Answer:
(b) behaviour

Question 4.
Individuals who experience ………………… commonly have a negative thinking style.
(a) depression
(b) phobia
(c) acute stress
Answer:
(a) depression

2. Answer the following questions in 35 – 40 words each.

Question 1.
Describe the term Mental Health First Aid?
Answer:
Mental Health First Aid (MHFA) is an internationally recognized training programme designed to teach people how to identify the signs and symptoms of mental health problems and to provide assistance on a first aid basis. MHFA was originally developed by Betty Kitchener and Anthony Jorm.

First Aid in Mental Health is a concept based on the idea of ‘prevention is better than cure’. If the early signs of mental illness are recognized, it can help in the following ways.

1. Diagnosis – timely diagnosis at the onset of mental illness helps to prevent it from developing into a more severe form.
2. Intervention – early intervention helps to get professional help.
3. Relapse prevention – it prevent reoccurrence of symptom of the mental illness.

Question 2.
What are the stigmas attached to mental illness?
Answer:
One of the major obstacles to getting help from a mental health professional is the stigma that is attached to mental illness. We fear things that we do not understand. In the same way, our lack of understanding of mental illness makes us fear it.
This lack of knowledge and awareness makes us-

1. Blame the individual, i.e., think that mental illness is a personal failing or weakness.
2. Think that mental illness is caused as punishment for our sins.
3. Think that the person is intentionally behaving in an inappropriate way.

Question 3.
Anxiety disrupts day to day functioning of an individual : State two predispositional factors contributing to anxiety.
Answer:
Anxiety that is excessive or persists after the anxiety creating situation has subsided leads to anxiety disorders such as phobias, acute stress disorder, etc.
Predispositional factors in anxiety are-

1. Genetic factors – if anyone in the family has anxiety issues, then the person will be at a higher risk of exhibiting high levels of anxiety as compared to other persons.
2. Childhood trauma such as physical or mental neglect or abuse, death of a loved one, parental divorce, etc.

Question 4.
Your friend confided in you that he is suffering from anxiety.
Suggest two self- help strategies to help him deal with this issue.
Answer:
The self help strategies that can be suggested to help him deal with excessive anxiety are-

1. Engage in some activity that he always wanted to pursue for e.g., pottery, writing, sketching or voluntary social service.
2. Indulge in physical activity like exercise, outdoor games or trekking.
3. Relaxation techniques like laughter therapy, meditation and breathing techniques.

3. Answer the following in 80 – 100 words based on the given points.

Question 1.
Explain the reasons why First Aid in Mental Health is required.
(a) Stigma associated with mental health
(b) Shame
(c) People do not always know how to respond
(d) People may not always seek professional help
Answer:
MHFA is an internationally recognized training programme whose objective is to teach people how to identify the signs and symptoms of mental health problems and to provide assistance on a first aid basis.
(a) Stigma associated with mental health:
Lack of understanding about mental illness makes us fear it. This lack of awareness leads us to blame the person for behaving inappropriately or showing personal failing.

(b) Shame:
Often, a person who has been diagnosed with a mental illness is ridiculed or blamed. He/she experiences shame, withdraws from social interaction and does not reach out to others or seek help. Hence, it is beneficial to show understanding and provide support.

(c) People do not always know how to respond:
Most people may not respond in an adequate way to a mentally ill person who reaches out to them. Sometimes, their advice/help may do more harm than good. However, MHFA programme can help friends/family to identify early signs of mental illness and help the person to get professional help.

(d) People may not always seek professional help:
The main reasons for this is-

1. Culture – Stigma attached to mental illness prevents people from seeking professional help as it may hurt the reputation of the family.
2. Advice from elders – A mentally ill person may incorrectly believe that advice of elders alone is sufficient to cure his illness.
3. Superstitions – If the person is convinced that his//her mental illness is caused due to sins/curses etc., they will not want to visit a mental health professional. Hence, they will be deprived of the benefits of early intervention.

Question 2.
Explain the ALGEE Model in your own words.
(a) Approach, Assess and Assist in any crisis
(b) Listen non-judgmentally
(c) Give support and information
(d) Encourage the person to get professional help
(e) Encourage self-help and other support strategies
Answer:
ALGEE is an action plan to carry out First Aid in Mental Health.
(a) Approach, Assess and Assist in any crisis – An attempt is made to understand the situation and observe if there are behavioural changes in the person whom we are concerned about.

(b) Listen non-judgmentally – We should listen to the other person without letting our opinions influence us. We should not judge/ criticise but listen with acceptance and empathy. It does not imply that we agree with what the other person is saying but it ensures that the person feels supported.

(c) Give support and information – This helps the person to feel more in control of the situation since they have emotional and informational support.

(d) Encourage the person to get professional help – Persons suffering from mental illness may hesitate to seek help due to lack of knowledge or due to stigma attached. Others may not know how to respond to someone showing ‘red flags’ of mental illness and may do more harm than good. Mental health professionals are trained to help the person to identify the problem and cope with the situation.

(e) Encourage self-help and other support strategies – Self-help strategies are tasks that help to increase our resources to deal with stress and to maintain mental health such as exercise, adequate sleep, having hobbies, etc.

Question 3.
Enumerate the various symptoms that are exhibited by an individual with anxiety disorders.
(a) Physical Symptoms
(b) Psychological Symptoms
(c) Behavioural Symptoms
Answer:
Anxiety is an emotion characterised by feelings of tension, hopelessness, etc. Excessive level of anxiety which persists even after the anxiety producing situation has gone away, can lead to anxiety disorders.
(a) Physical Symptoms

1. Heart palpitations and rapid heart rate
2. Shortness of breath
3. Dizziness or headaches
4. Restlessness, tremors and shaking

(b) Psychological Symptoms

1. Mind racing or going blank
2. Difficulty in concentration
3. Forgetfulness
4. Problems in decision making
5. Irritability, impatience and anger

(c) Behavioural Symptoms

1. Avoiding people and situations
2. Repetitive checking
3. Strong urge to escape the situation

Question 4.
Explain excessive dependence on the internet.
(a) Meaning
(b) Four C’s to identify excessive internet usage
(c) Red flags that indicate internet addiction.
Answer:
(a) Meaning
The amount of time as well as reason for using the internet may become a matter of concern for e.g., online gambling, gaming, etc. The person may socialise more online with friends than real life socialising. Spending excess time online may cause the person to neglect family, relationships, work etc. Virtual world enables games/gambling almost continuously. This leads to the person neglecting personal hygiene, real life relationships and become withdrawn and irresponsible. The person may feel guilty or defensive about internet use. He/ she may panic in the absence of internet service. A growing dependence on internet refers to an inability to stop and down down.

(b) Four C’s to identify excessive internet usage
Excessive internet usage is characterised by extensive, problematic addiction to the use of computer and internet. It signifies poorly controlled preoccupations or behaviour regarding such usage. Excessive internet usage leads to personal distress and social impairment.
The four C’s to identify excessive internet usage are as follows-

1. Craving – Do you have an intense desire to use the internet?
2. Control – Do you have an inability to control your self using the internet?
3. Compulsion – Do you find it difficult to stop using the internet? Even though you know you should not spend so much time on it?
4. Consequence – Have you ever experienced any physical or psychological ill effects as a result of excessive use of the internet? If you answer a ‘yes’ for at least three of the C’s, it can be a matter of concern.

(c) Red flags that indicate internet addiction
The Red Flags that indicate over dependence on internet are-

1. Feelings of euphoria while using the internet.
2. Physical symptoms like headache, dry eyes, etc.
3. Inability to keep to schedules and boredom with routine tasks.
4. Poor personal hygiene and nutrition to remain online.

4. Analysis the following case study.

Sujata is now a sad and lonely girl. She has cut off herself from all her relatives and family friends. She doesn’t participate in any college programmes nor family functions. She is mostly found in the library all by herself. She has lost her self-confidence. At home she prefers eating in the bedroom and mostly indulges in television or mobile activities. Apply the ALGEE model and help Sujata to evolve in her mental health.
Answer:
Sujata is showing symptoms of depression and anxiety such as sadness, withdrawing from family/ friends and social activities. The ALGEE model can be used.

1. Approach, assess and assist in any crisis – Behavioural changes are very noticeable in Sujata. I can voice my concern to the teachers/ counsellor of the school or to her family members.
2. Listen in a non-judgemental manner -1 will try to meet Sujata in the library or any place where she feels comfortable. I will explain my concerns to her about not interacting with others and overuse of mobile phones. I will listen patiently and compassionately.
3. Give support and information – Let Sujata know that she has emotional support of her friends. There is nothing to feel guilty or ashamed of. She should hence be forthcoming about her problems.
4. Encourage her to get professional help – I will encourage her to meet the college counsellor who will be able to help her professionally.
5. Encourage self-help strategies – This will help Sujata to regain control over her life. Some positive measures include breathing exercises, yoga, laughter therapy, etc.

Class 12 Psychology Textbook Solutions Digest

• Psychology: A Scientific Discipline Class 12 Psychology
• Intelligence Class 12 Psychology
• Personality Class 12 Psychology
• Cognitive Processes Class 12 Psychology
• Emotions Class 12 Psychology
• Psychological Disorders Class 12 Psychology
• First Aid in Mental Health Class 12 Psychology
• Positive Psychology Class 12 Psychology

Psychology Class 12 Chapter 6 Psychological Disorders Question Answers Maharashtra Board

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 6 Psychological Disorders Textbook Exercise Questions and Answers.

Psychological Disorders Class 12 Psychology Chapter 6 Questions and Answers

1. (A) Choose the correct option and complete the following statements.

Question 1.
………………… is the present system for the classification of mental disorders.
(a) DSM-5
(b) WHO
(c) APA
Answer:
(a) DSM-5

Question 2.
Term Schizophrenia was first used by ………………
(a) Albert Ellis
(b) Eugene Bleuler
(c) John Travis
Answer:
(b) Eugene Bleuler

Question 3.
World Health Organization has developed …………….. for classification of all types of disorders.
(a) ICD
(b) DSM
(c) MCA
Answer:
(a) ICD

Question 4.
We find alternate phases of depression and mania in …………………. disorders.
(a) depressive
(b) bipolar
(c) anxiety
Answer:
(b) bipolar

(B). Match the pairs.

Question 1.

Answer:

(C) State whether the following statements are true or false.

Question 1.
Socially or culturally deviant behaviours are signs of psychological disorders.
Answer:
False

Question 2.
Schizophrenia is a serious psychological disorder.
Answer:
True

Question 3.
Feeling of hopelessness is one of the symptoms seen in depressive disorders.
Answer:
True

(D) Answer the following in one sentence each.

Question 1.
From which Latin word is the term anxiety derived?
Answer:
The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’.

Question 2.
In which disorder does the person experience sadness and guilt for a long period of time?
Answer:
In a depressive disorder the person experiences sadness and guilt for a long period of time.

Question 3.
What do you call the fear that you experience unnecessarily in a non threatening situation?
Answer:
The fear that is experienced unnecessarily in a non threatening situation is called a phobia.

2. Answer the following questions Briefly.

Question 1.
Explain the nature of psychological disorder.
Answer:
The major criteria of abnormality or psychological disorders are deviance, personal distress and impaired functioning. Illness and absence of illness are not distinct categories but are on opposite poles of the continuum sequence as explained below.

Stage 1 – The person is physically and psychologically healthy. They are motivated and emotionally stable.
Stage 2 – The person may get affected by life stressors, feel anxious, lack energy, etc. For e.g., before an examination. It is possible to push oneself back towards positive health by adopting a healthy lifestyle.
Stage 3 – The person shows signs of psychological damage and experience negative feelings like sadness, lack of motivation, fear and may even indulge in addictive behaviour. However, even this stage is not irreversible.
Stage 4 – The person exhibits extreme distress, impairment in mental, emotional and social functioning. He/She needs professional treatment.

Question 2.
What is meant by Anxiety disorders?
Answer:
The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’. Anxiety refers to a condition in which the person feels worried and uneasy for a long time for no obvious reasons. Anxiety disorders include disorders in which anxiety is the main symptom or is experienced when an attempt is made to modify some maladjustment. The main anxiety disorder are Generalised Anxiety disorder, Phobic disorder. Panic disorder, O. C. D, etc.

Question 3.
Narrate indicators of psychological disorders.
Answer:
According to DSM-5, there are five criteria (indicators) for psychological disorders.

1. Clinically significant syndrome – In psychological disorders, there should be a cluster of symptoms together i.e., a syndrome.
2. Distress and Impairment – There should be distress, i.e., psychological pain due to negative feelings and stress, as well as impairment, i.e., inability to perform appropriate roles in personal and social situations.
3. Dysfunction – If the symptoms lead to developmental or psychological dysfunctions, it signifies mental disorders.
4. Responses to stressors that are normally accepted responses e.g., sadness experienced at the loss of a loved one or culturally sanctioned responses are not considered as signs of mental disorders.
5. Behaviour which is only deviant but does not produce any disability/ distress/ dysfunction
   does not become a sign of mental disorder.

Question 4.
What is meant by bipolar disorder?
Answer:
Bipolar Disorder is also known as Manic Depressive disorder. The person experiences alternate phases of two states viz. mania and depression. Mania includes symptoms such as high energy, excitement, reduced need for sleep and loss of touch with reality, impulsivity, delusion, etc. Depressive state symptoms include low energy and motivation, loss of interest in daily activities, extreme sadness, apathy, feeling of hopelessness, fatigue, guilt, etc. Main causative factors are genetic factors, imbalance in neurotransmitters such as dopamine and epinephrine; environmental factors such as traumatic event.

Question 5.
Describe Post Traumatic Stress Disorders?
Answer:
If the symptoms of Acute Stress Disorder (ASD) continue for more than one month with the same intensity, the person is diagnosed with PTSD. A person who has suffered trauma goes through three stages viz-

1. Shock stage – the individual is in shock, i.e., extremely disturbed.
2. Suggestible stage – he/she may seek guidance from others and may either accept these suggestions unquestioningly or may get extra sensitive.
3. Recovery stage – the person shows signs of recovery.

However, some persons still show signs of mental illness i.e., PTSD.
The symptoms of PTSD include

1. nightmares, flashbacks, severe anxiety
2. hyper vigilance and avoidance of situations that bring back the trauma
3. irritability, social isolation
4. survivour’s guilt

3. Explain the Following concepts.

Question 1.
DSM-5
Answer:
Presently, the two major systems of classifying psychological disorders are DSM and ICD. Diagnostic and Statistical Manual for Mental Disorders (DSM) was published in its first version by the APA in 1952, i.e., DSM-I. In 2013, the DSM-5 was introduced which contains 22 broad categories of mental disorders with subcategories. It is the classification of officially recognized psychiatric disorders, for e.g., categories in DSM-5 include anxiety disorders, obsessive-compulsive and related disorders and personality disorders.

Question 2.
ICD 11
Answer:
Presently, the two major systems of classifying psychological disorders are DSM and ICD. The International Classification of Diseases and Related Health Problems (ICD) was created by the WHO for documenting all types of diagnoses, diseases, signs and symptoms and social circumstances. It contains a section on psychological disorders. The latest, 11th version of ICD was presented in 2019. According to the ICD-11, there are 19 broad categories of mental disorders, most of which overlap with DSM-5.

Question 3.
Phobia
Answer:
The main anxiety disorders include phobic disorders and generalized anxiety disorders. The word ‘phobia’ is derived from the Greek word ‘phobos’ which was used to refer to the God of Fear. A phobia is an intense, persistent but irrational and disproportionate fear of a specific object or situation. DSM classifies phobias as simple phobias, e.g., Acrophobia, Claustrophobia etc., and social phobias, e.g., fear of speaking or eating in public. The phobic object e.g., animals or situations e.g., elevators, almost always provide immediate anxiety.

Question 4.
Syndrome
Answer:
A syndrome refers to a cluster or collection of symptoms and signs that are characteristic of a diseases or disorder, e.g., Down’s syndrome. It is a group of symptoms which consistently occur together and indicate a particular condition. A syndrome refers to a set of symptoms that tend to occur together and can be associated with a particular physical or mental disorder. In psychological disorders, one of the criteria as suggested by DSM-5 is clinically significant syndrome.

Question 5.
Hallucination
Answer:
Hallucinations are false perceptions in the absence of appropriate stimuli. Hallucinations are a symptom of schizophrenia and other mental disorders. Commonly occurring hallucinations are visual, auditory, tactile, gustatory and olfactory in nature. For e.g., the person may hear voices telling him to do something. Hallucinations are also noticed due to substance abuse, medications, epilepsy, etc.

4. Write short notes on the following.

Question 1.
Nature of mental wellness
Answer:
According to the WHO, mental wellness refers to “a state of well-being in which the individual realizes his or her own abilities, can cope up with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community.”
The important aspects of mental wellness are –

1. Emotional aspect – There is a sense of well-being and contentment
2. Psychological aspect – There is high self esteem and tendency of self actualization.
3. Life philosophy – There are clear goals and objectives in life.

The Illness Wellness Continuum Model by John Travis

Quadrant 1 – The person is in an ideal state of functioning.
Quadrant 2 – Thepersonhasnomentalillnessbutexperiencessubjectivefeelingofunhappiness.
Quadrant 3 – The person suffers from mental illness yet he/she experiences a high sense of subjective well-being.
Quadrant 4 – This is the lowest level of functioning. The person has mental illness and also experiences distress.

Question 2.
Drug addiction
Answer:
Addictive disorders refer to the physical and psychological inability to stop consuming some substance or indulging in some activity although it is harmful. This includes dependence on drugs, nicotine, alcohol, etc., or activities like gambling, eating, gaming etc. Drug addiction refers to an inability to control the use of alcohol, nicotine, narcotics, marijuana, medications, etc.
Symptoms of addiction are-

1. Excessive consumption of drugs or alcohol and inability to reduce the dosage.
2. In case the person tries to stop the drug use, then withdrawal symptoms occur which include sweating, tremors, muscle pain, goosebumps, etc.
3. Physical and psychological dependence may lead to drug abuse or overdose of the addictive substance and even death of the person.
4. The person’s physical, emotional, social and financial well-being break down.

Alcoholics Anonymous (AA), Narcotics Anonymous (NA) are organizations that help addicts to overcome dependence.

Question 3.
Depressive disorders
Answer:
Depression is an emotional state typically marked by sadness and guilt, feelings of anxiety and hopelessness. Other symptoms include loss of appetite, interest and sleep, fatigue, sexual dysfunction and suicidal thoughts. Depression is associated with distractability, memory loss, neglect of personal hygiene, panic attacks and even substance abuse. Children may experience symptoms such as irritability, feelings of incompetence, difficulty in concentration, difficulty in sleeping, digestive problems etc.

Question 4.
Anxiety disorders
Answer:
The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’. Anxiety refers to a condition in which the person feels worried and uneasy for a long time for no obvious reasons. The main anxiety disorders are.
(i) Generalized Anxiety Disorder – The person frequently experiences anxiety more intensely so that it starts interfering with the ability to perform daily tasks. Symptoms include irritability, headaches, insomnia, dizziness, breathlessness, etc.

(ii) Phobic disorders – The word ‘phobia’ is derived form the Greek word ‘phobos’ which was used to refer to the God of Fear. A phobia is an intense, persistent but irrational and disproportionate fear of a specific object or situation. DSM classifies phobias as simple phobias, e.g., Acrophobia, Claustrophobia etc., and social phobias, e.g., fear of speaking or eating in public.

5. Answer the following questions in 150 – 200 words.

Question 1.
Describe the criteria of psychological disorders.
Answer:
The major criteria of abnormality are deviance, personal distress and impaired functioning. Illness and absence of illness are not distinct categories but are on opposite poles of the continuum sequence as explained below.

Stage – 1: The person is physically and psychologically healthy. He/She are motivated and emotionally stable.
Stage – 2: The person may get affected by life stressors, feel anxious, lack energy, etc., for e.g., most students are tense before the exams. It is possible to push oneself back towards positive health by adopting a healthy lifestyle.
Stage – 3: The person shows signs of psychological damage and may experience negative feelings like sadness, lack of motivation, fear and may even indulge in addictive behaviour. However, even this stage is not irreversible.
Stage – 4: The person exhibits extreme distress, impairment in mental, emotional and social functioning. He/She needs professional treatment.

Psychological disorders are also called mental disorders. These are patterns of behavioural or psychological symptoms that impact multiple areas of life and create distress for the person.

According to DSM-5, there are five criteria for psychological disorders.

1. Clinically significant syndrome – In psychological disorders, there should be a cluster of symptoms together i.e., a syndrome.
2. Distress and Impairment – There should be distress, i.e., psychological pain due to negative feelings and stress, as well as impairment, i.e., inability to perform appropriate roles in personal and social situations.
3. Dysfunction – If the symptoms lead to developmental or psychological dysfunctions, it signifies mental disorders.
4. Responses to stressors that are normally accepted responses e.g., sadness experienced at the loss of a loved one or culturally sanctioned responses are not considered as signs of mental disorders.
5. Behaviour which is only deviant but does not produce any disability/ distress/ dysfunction does not become a sign of mental disorder.

Question 2.
Narrate any two psychological disorders in detail.
Answer:
Psychological disorders are also called mental disorders. These are patterns of behavioural or psychological symptoms that impact multiple areas of life and create distress for the person.
According to DSM-5, there are five criteria for psychological disorders are:

1. Clinically significant syndrome – In psychological disorders, there should be a cluster of symptoms together i.e., a syndrome.
2. Distress and Impairment – There should be distress, i.e., psychological pain due to negative feelings and stress, as well as impairment, i.e., inability to perform appropriate roles in personal and social situations.
3. Dysfunction – If the symptoms lead to developmental or psychological dysfunctions, it signifies mental disorders.
4. Responses to stressors that are normally accepted responses e.g., sadness experienced at the loss of a loved one or culturally sanctioned responses are not considered as signs of mental disorders.
5. Behaviour which is only deviant but does not produce any disability/ distress/ dysfunction does not become a sign of mental disorder.

(A) Anxiety Disorders – The word ‘anxiety’ is derived from the Latin word ‘Anxietas’ which means ‘uneasy or troubled mind’. Anxiety refers to a condition in which the person feels worried and uneasy for a long time for no obvious reasons.
The main anxiety disorders are-
(i) Generalized Anxiety Disorder – The person frequently experiences anxiety more intensely so that it starts interfering with the ability to perform daily tasks. Symptoms include irritability, headaches, insomnia, dizziness, breathlessness, etc.

(ii) Phobic disorders – The word ‘photjia’ is derived form the Greek word ‘phobos’ which was used to refer to the God of Fear. A phobia is an intense, persistent but irrational and disproportionate fear of a specific object or situation. DSM classifies phobias as simple phobias, e.g., Acrophobia, Claustrophobia etc., and social phobias, e.g., fear of speaking or eating in public.

(B) Trauma Trauma and Stress-Related Disorders
Stress is inevitable in life. Daily hassles, relationship issue, frustration, chronic illness, etc., lead to stress. If stress is in moderate intensity, it acts as a motivation. However, intense prolonged stress impairs normal functioning of the individual and may lead to stress disorders.
The two types of stress disorders are-
1. Acute Stress Disorder (ASD)
If a person (aged 6 years and above) has experienced extremely stressful situations like death of a loved one, serious disease or injury, sexual abuse, natural disasters, etc., then he/she may experience ASD. The symptoms of ASD include-

• emotional numbness and instability
• nightmares and sleep disturbances
• insomnia, lack of concentration, irritability and guilt feelings
• depression

2. Post Traumatic Stress Disorder (PTSD)
If symptoms of ASD continue for more than one month with the same intensity, the person is diagnosed with PTSD. A person who has suffered trauma goes through three stages viz.

• Shock stage – the individual is in shock, i.e., extremely disturbed.
• Suggestible stage – he/she may seek guidance from others and may either accept these suggestions unquestioningly or may get extra sensitive.
• Recovery stage – the person shows signs of recovery.

However, some persons still show signs of mental illness i.e., PTSD.

Question 3.
What is Schizophrenia? Describe the major symptoms of it.
Answer:
The term ‘Schizophrenia’ is derived from Greek words Schizein (to split) and phren (mind). Thus, the literal meaning of the word ‘schizophrenia’ is split mind. The term ‘schizophrenia’ was coined in 1911 by a Swiss psychologist, Paul Eugene Bleuler. Schizophrenia is a psychotic disorder.
According to DSM-5 the two types of symptoms for schizophrenia are-
(a) Positive symptoms are an excess addition to normal thoughts or behaviour of the period. Such symptoms are-

1. hallucinations – mainly auditory and visual hallucination
2. delusions – mainly of grandeur, reference and persecution
3. disorganized thought and speech
4. bizarre body movements and disorganized behaviour
5. incongruent affect.

(b) Negative symptoms are deficits of normal emotional responses or of thought processes. They lead to low level of functioning and may not improve much even with treatment. This includes-

1. emotional blunting – diminished emotional expression
2. anhedonia – inability to experience deep positive emotions
3. alogia – diminished speed
4. asociality – lack of desire to form relationships
5. avolition – lack of motivation
6. apathy.

Sometimes, a schizophrenic exhibits positive as well as negative symptoms.

Class 12 Psychology Chapter 6 Psychological Disorders Intext Questions and Answers

ACTIVITIES (Textbook Page. No. 62)

Activity 1

On the basis of your understanding of various criteria for abnormality, which of these would you consider as normal or abnormal behavior?

1. Hemant wears the same lucky blue shirt for all his major competitive exams.
2. Seema is not able to fall asleep easily.
3. Rakesh throws pillows and pounding fists on the wall during arguments if he finds himself losing ground.
4. Reena always experiences fear but is not able to specify what is so scary.

Answer:
All the stated examples show at least one of the five criteria for abnormality.

1. Hemant seems superstitious and lacks confidence. He appears moderately healthy.
2. Seema exhibits personal distress and signs of sleep disorders.
3. Rakesh exhibits clear symptoms of abnormal behaviour and seems extremely unhealthy mentally.
4. Reena seems to have anxiety disorder and may need professional help.

Activity 3 (Textbook Page. No. 67)

In which Quadrants of wellness illness continuum will you place Karan, Lalita, Pramila and Santosh?
Answer:
Karan – Quadrant 2, Pramila – Quadrant 3, Lalita – Quadrant 4, Santosh – Quadrant 3.

Activity 5 (Textbook Page. No. 68)

Collect information about Anxiety disorders and discuss this with your friends or parents.
Answer:
Anxiety disorders are characterised by feelings of worry and restlessness that tend to interfere with daily activities. Besides generalized anxiety disorder and phobia which are explained in the chapter, anxiety disorders includes Panic disorder, Obsessive-Compulsive disorder (OCD) and Social Anxiety disorders include disorders in which anxiety is the main symptom or is experienced. When an attempt is made to modify maladjustment.

Activity 6 (Textbook Page. No. 69)

Collect information about other types of phobia.
Answer:
A phobia is a persistent, irrational fear of a situation or object. Phobias are of three types viz. Social phobia (fear of social situations); specific phobias (fear of particular situations) and agoraphobia (fear of being alone in public places from which there is no easy escape). Some phobias are:

1. Claustrophobia (fear of enclose spaces)
2. Acrophobia (fear of heights)
3. Homophobia (fear of blood)
4. Zoophobia (fear of animals)
5. Arachnophobia (fear of spiders)
6. Pyrophobia (fear of fire)
7. Trypanophobia (fear of needles and injections)
8. Xenophobia (fear of foreigners or strangers)

Activity 7 (Textbook Page. No. 71)

We make use of various strategies to reduce our stress. Speak to five of your friends and make a list of atleast ten different strategies used by them to reduce stress. Share it with your group and discuss which are healthy and which are unhealthy.
Answer:
Some strategies to reduce stress are-

1. Negative coping such as use of alcohol/drugs, over eating, agression, etc.
2. Exercise
3. Developing a hobby
4. Indulging in some constructive activity
5. Following relaxation/meditation techniques
6. Seeking social support, i.e., of friends/ family, etc.
7. Having proper time management
8. Developing rational thinking and positive attitude
9. Indulging in self care, e.g., proper diet, rest, etc.
10. Seeking professional help if needed

Activity 9 (Textbook Page. No. 74)

Identify from the internet the red flags (signaling symptoms) for various disorders that you have already studied.
Answer:
Red flags for the following disorders.
(1) Phobias

• Displaying extreme nervousness or distress when in the presence of the source of the phobia
• Avoidance behaviour
• Refusal to face certain situations

(2) Depression

• Irritability, moodiness and agitation.
• Inability to concentrate
• Unexplained aches and pains
• Disruptions in sleep habits
• Changes in appetite and eating habits
• Suicidal thoughts.

(3) Bipolar disorder

• Change in thought processes, and concentration
• Change in sleep patterns
• Change is social interaction
• Uncharacteristic moodiness

(4) PTSD

• Persistent negative thoughts
• Trouble in concentration
• Irritability and aggression
• Engaging in reckless behaviour
• Changes in sleep and appetite
• Loss of interest in friends/family/favourite activities.

Class 12 Psychology Textbook Solutions Digest

• Psychology: A Scientific Discipline Class 12 Psychology
• Intelligence Class 12 Psychology
• Personality Class 12 Psychology
• Cognitive Processes Class 12 Psychology
• Emotions Class 12 Psychology
• Psychological Disorders Class 12 Psychology
• First Aid in Mental Health Class 12 Psychology
• Positive Psychology Class 12 Psychology

Psychology Class 12 Chapter 5 Emotions Question Answers Maharashtra Board

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 5 Emotions Textbook Exercise Questions and Answers.

Emotions Class 12 Psychology Chapter 5 Questions and Answers

1. Choose the correct option and complete the following statements.

Question 1.
…………… is a combination of bodily arousal, expressive behaviour, thoughts, and feelings.
(a) Response
(b) Reaction
(c) Emotions
Answer:
(c) Emotions

Question 2.
According to James Lange we first experience ……………….. then emotions.
(a) physical arousal
(b) feelings
(c) thoughts
Answer:
(a) physical arousal

Question 3.
Emotion is used as a …………….. to control others.
(a) weapon
(b) measure
(c) opportunity
Answer:
(a) weapon

Question 4.
When you allow another person to exploit you, you are a victim of ………….. abuse.
(a) physical
(b) emotional
(c) social
Answer:
(b) emotional

Question 5.
Exercising releases ………………… which makes you feel good as a stress buster.
(a) endorphins
(b) thyroxin
(c) insulin
Answer:
(a) endorphins

2. Identify the odd items from the following and write a suitable reason for your choice

Question 1.
admiration, disgust, acceptance, trust

Question 2.
kicking, ignoring, shoving, screaming

Question 3.
Reassess, React, Respond, Relax

Question 4.
meditation, social work, compassion, engage in hobbies

3. Match the pair.

Question 1.

Answer:

4. State whether the following statements are true or false.

Question 1.
Emotional well-being is not easily observable.
Answer:
True

Question 2.
Positive emotions energise you.
Answer:
True

Question 3.
You should feel guilty for standing up for yourself.
Answer:
false

Question 4.
Anger is a basic negative emotion.
Answer:
True

5. Answer the following questions in 35 – 40 words each.

Question 1.
Explain the term facial feedback hypothesis.
Answer:
According to the facial feedback hypothesis, our facial expressions provide feedback to our brain about our emotions. Facial expressions are not only the result of our emotions, e.g., smiling in happiness, but they are also capable of influencing emotions, e.g. laughter can actually make us feel happier. The same might hold true for other emotions as well. In the 1840’s, William James presented the idea that awareness of our bodily experiences is the basis of emotion.

Question 2.
When does an individual face social rejection?
Answer:
Social rejection occurs when an individual is deliberately excluded from a social relationship or interaction. This can be done by a person or a group. It includes rejection of the person by family/ peers/ colleagues or even in intimate relationships. Rejection may be active, i.e., by ridiculing, bullying, etc., or passive, i.e., ‘silent treatment’. Social rejection may be faced due to individual differences e.g., attractiveness, shyness or due to intergroup exclusion on the basis of prejudice, e.g., in case of Dalits or ethnic minorities.

Question 3.
With the help of an example write the non-verbal triggers of anger.
Answer:
Anger is a common emotion that everybody experiences in life from time to time. Anger is a normal response to some real or perceived threat. It is a protective emotion that help us to defend ourselves against physical or psychological harm.

Triggers of Anger refer to any event that signals the brain to activate the body’s anger system. The triggers of anger may be (i) verbal, for e.g., being blamed, disrespected or abused (ii) non¬verbal, for e.g., being ignored unappreciated or rejected, (iii) physical such as physical threats, sexual/ physical assault, etc.

Non-verbal triggers of anger are feelings of being neglected, disregarded, disappointed, unloved or frequently spurned. It is expressed through gestures such as pointing a finger, shrugging the shoulders; by facial expressions such as sneering, frowning and also by behaviours such as groaning/sighing/whining or speaking in a mocking tone.

There are three factors involved in the experience of anger : A trigger (causes of anger) → individual’s personality → particular interpretation of that situation.

Question 4.
What are the aspects of emotional well-being?
Answer:
Emotional well-being means managing our emotions, both positive and negative ones, so that we can lead a healthy and productive life. It is the absence of negative affect as well as general satisfaction with life. A person who experiences emotional well-being is positively engaged with the world.
The aspects of emotional well-being are at three levels viz. physical, emotional and social.

1. Physical level, i.e., well balanced diet, exercise.
2. Emotional level, i.e., practise mindfulness, raising levels of motivation and optimism.
3. Social level, i.e., engaging in prosocial behaviour, meaningful relationships.

6. Compare and Contrast

Question 1.
Happiness and Sadness

Question 2.
James Lange theory and Cannon Bard’s Theory

7. Write short notes on the following in 50 – 60 words each.

Question 1.
Measures of dealing with Emotional Abuse
Answer:
Emotional abuse is any kind of abuse that is emotional rather than physical in nature. It occurs when one person subjects or exposes another person to intentionally harmful behaviour that may result in anxiety, depression and psychological trauma to the victim.
The types of emotional abuse may be-

1. verbal abuse such as blaming, insulting, labeling, threatening, swearing, etc.
2. non verbal abuse such as ignoring, rejection, bullying, spying, etc.

The most important technique is to break the silence and stand up for yourself.

1. Accept that emotional abuse is not because of you, i.e., don’t justify the actions of the abuser.
2. Respond assertively to the abuser but seek distance from him.
3. Give yourself time to heal.
4. Prioritize your self-care, e.g., eating right, exercise, etc.
5. Mobilise support from family and friends. If needed, seek professional help.

Question 2.
Plutchiks’s Model of Emotions
Answer:

Robert Plutchik presented the wheel of emotions,

1. there are 8 basic emotions viz. joy, trust, fear, surprise, sadness, anticipation, anger and disgust.
2. each primary emotion has its polar opposite such as fear is opposite of anger.
3. primary emotions combine to produce complex emotions, for e.g., love (complex) is a combination of joy and trust.
4. intensity of emotions increases as we move toward the centre and decreases as we move outward. For e.g., apprehension (weak) → fear (basic) → terror (strongest).

This model is important from the perspective of emotional literacy, i.e., understanding emotional levels, complexity and change as well as appropriate emotional labelling

Question 3.
Anger -A powerful emotion
Answer:
Anger is a common emotion that everybody experiences in life from time to time. Anger is a normal response to some threat. It is a protective emotion that helps us to defend ourselves against physical/ psychological harm. However, anger may also be unwanted, irrational and destructive. When we experience anger, our amygdala goes into action and overrides the cerebral cortex which is in control of thinking and evaluation. Triggers of anger refer to any event that signals the brain to activate the body’s anger system. The triggers may be (i) verbal, for e.g., being blamed, disrespected or abused (ii) non-verbal, for e.g., being ignored unappreciated or rejected, (iii) physical such as physical threats, sexual/ physical assault, etc.

There are three factors involved in the experience of anger: A trigger (causes of anger) → individual’s personality → particular interpretation of that situation. As the experience of anger is subjective, it can be controlled too. If we understand the triggers of anger, we can anticipate potential anger episodes and provide an intentional/ acceptable response such as it may energize us towards solving problems. As anger is a powerful emotion, it must be kept in check to avoid it’s destructive out comes.

Question 4.
Managing Emotions
Answer:
The word emotion is derived from the latin word ‘emovere’, which means to stir up or to move. An emotion refers to an involuntary, aroused state of an organism involving physical, cognitive and behavioural components. It is described as a combination of bodily arousal, e.g., increased heartrate, thoughts and feelings, i.e. emotional tone and expressive behaviour, i.e., facial expression.

Managing of emotions is an important life skill. Managing emotions can be defined as, ‘the ability to be open to feelings and modulate them in oneself and in others, so as to promote personal understanding and growth. It is the ability to be aware and constructively handle both positive and challenging emotions.

Sometimes, our emotions hijack our thinking due to which we act impulsively. This is because the limbic system (emotional section) developed before the prefrontal cortex (thinking part) and is hence, an extremely strong part of the brain. Emotional management is an art as it is a form of expression as well as a science as it is a skill that needs to be learnt and practiced If a person ignores of suppresses his/her emotions it leads to anxiety. The best way of manage emotions is to acknowledge the emotions, find out what is the cause of that emotion in you, chose how to respond in that situation.

Question 5.
Benefits of Emotional Well-being
Answer:
Emotional well-being means managing our emotions, both positive and negative ones, so that we can lead a healthy and productive life.
Persons who have high emotional well-being experience benefits such as- (i) better able to deal with stress (ii) better self-regulation (iii) increased productivity in tasks undertaken (iv) increased creativity (v) life satisfaction due to meaningful activities and relationship.

1. Coping with stress – It helps to deal with stress using healthy methods such as exercise, social support, etc.
2. Better self-regulation – It enables the person to label how they feel and accept negative emotions life fear, anger, etc.
3. Increases productivity in tasks undertaken – The ability to focus is enhanced, the person feels positive and energized.
4. Increases creativity – The person indulges in divergent thinking, shows curiosity is open to new experiences.
5. Life satisfaction – The individual is able to have meaningful interactions and relationships, show empathy, altruism and engage in activities like volunteer work.

8. Answer the following 50 – 60 words.

Question 1.
Using the 3 R model of Anger Management present a case study of your own experience.
Answer:
Anger management is an intervention programme to prevent anger from turning into a habit or obstacle. It enables the person to create an awareness of and responsibility for his/her emotions. This involves two aspects (i) managing one’s own anger (ii) learning to respond effectively to anger in others.

The 3 R’s in anger management a Relax, Reassess and Respond.
1. Relaxation – Relaxation and connection with the inner self helps to enhance thinking and concentration so that we ‘respond’ rather than ‘react’ impulsively.
2. Reassess – This helps the person to revisit the situation objectively. It involves

• taking complete responsibility for your emotion
• developing empathy for the person you perceive has wronged you
• conduct a reality check e.g., is your anger justified given the facts of what happened.

The feeling’s thermometer helps to focus on the extent of anger we are experiencing and helps in the process of reassessment.

3. Respond – It entails re-engaging with the other person/situation. Responding involves

• consulting a trustworthy person to get another perspective
• engage in talks with the other party in a calm respectful manner with a willingness to sort out the situation.
• active listening and assertive speaking – Allow the person to express their viewpoint. However, we should stand up for our feeling while exhibiting the same for the other person. The right approach is a practical, positive communication style.
• cage your rage i.e. establish boundaries and moderate your anger – We must guard against escalation of our own anger which may lead us to provoke the other person. Moderation of anger and establishing clear boundaries of interaction with each other is essential.

CASE STUDY – 1 was in the passenger seat and my brother was driving the car. Suddenly, a cyclist swerved right in front after he had failed to observe the red light. This led me to get enraged at this uncalled-for action. Using the 3R technique. I tried to breathe for a few seconds to give me recovery time, i.e. Relaxation. I revisited the situation – Is my anger justified? Was it a genuine error? Is the cyclist hurt? Did the incident cause injury to us or damage to the car.? Is the anger worth my time/effort? Reassess. I allowed my elder brother to handle the situation but also assertively cautioned the teenage cyclist about the dangers of riding in a rash manner, i.e. Respond.

Question 2.
How does the brain work when angry?
Answer:
Anger is a common emotion that everybody experiences in life from time to time. Anger is a normal response to some threat. It is a protective emotion that help us to defend ourselves against physical/ psychological harm. However, anger may also be unwanted, irrational and destructive. When we experience anger, our amygdala goes into action and overrides the cerebral cortex which is in control of thinking and evaluation.

Triggers of anger refer to any event that signals the brain to activate the body’s anger system. The triggers may be (i) verbal, for e.g., being blamed, disrespected or abused (ii) non-verbal, for e.g., being ignored unappreciated or rejected, (iii) physical such as physical threats, sexual/ physical assault, etc.

There are three factors involved in the experience of anger: A trigger (causes of anger) → individual’s personality → particular interpretation of that situation. As the experience of anger is subjective, it can be controlled too. If we understand the triggers of anger, we can anticipate potential anger episodes and provide an intentional / acceptable response.

The emotional center of the brain is the Limbic system and is more primitive than the cerebral cortex. It is located in the lower section of the brain. Hence when a person is experiencing and expressing anger, he or she is not using the cortex (thinking section) but primarily functioning from the limbic system. In the limbic system, a small structure called Amygdala which is a storehouse of emotional memories plays an important role in the emotional outbursts. The data coming in from the world around us passes through the amygdala where the decision is made whether to send the data to the limbic or cortex area of the brain.

If the incoming data triggers enough of an emotional charge, the amygdala can override the cortex, which means the data will be sent to the limbic system causing the person to react using the lower part of the brain. During an overriding event, the amygdala goes into action without much regard for the consequences (since this area of the brain is not involved in judging, thinking, or evaluating).

Eg. You are waiting patiently in the queue at the bank, a person comes and cuts the line and moves ahead of you, you scream at them and ask them to go back. On an average, it can take 20 minutes for a person who has experienced an angry state of arousal to calm, to move from functioning from the emotional area to the thinking area of the brain.

Question 3.
After having realised you are emotionally abused by your best friend, write the steps you will take to deal with it.
Answer:
Emotional abuse is any kind of abuse that is emotional rather than physical in nature. It occurs when one person subjects or exposes another person to intentionally harmful behaviour that may result in anxiety, depression and psychological trauma.
The types of emotional abuse may be (i) verbal abuse such as blaming, insulting, labeling, threatening, swearing, etc. (ii) non verbal abuse such as ignoring, rejection, bullying, spying, etc. Some of the techniques to deal with emotional abuse are-

1. Accept that emotional abuse is not because of you i.e. don’t justify the actions of the abuser.
2. Respond assertively to the abuser but seek distance from him/her.
3. Give yourself time to heal.
4. Prioritize your self-care, e.g., eating right, exercise, etc.
5. Mobilise support from family and friends. If needed, seek professional help.

If I realize that I have been emotionally abused by my good friend I will adopt the following steps-

1. Disengage from the friendship and set personal boundaries
2. Understand that I am not the cause of abuse and so respond assertively to the abuser
3. Practice self care and give myself time to heal
4. If necessary seek guidance from other friends or my family / teachers.

9. Analyse the situations presented below and
a. Write the Emotion/s you experience.
b. What will be your response to this situation?

Question 1.
Anish was scolded by his boss. He came home and in a fit of rage hit his son. You are Anish’s friend who witnessed this outburst.
Answer:
I will feel anger as well as disgusted on witnessing this outbust. I will try to calm Anish and make him realise the harm that his anger can cause.

Question 2.
You helped your friend with study notes during his illness. But when your friend got better he did not respond nor show any sense of appreciation.
Answer:
I will feel disappointment as well as sadness. I will meet the friend and tell him that his lack of courtesy has hurt me.

Question 3.
Though you are a good friend of Anushka, she has not invited you to her new year’s party.
Answer:
I will feel disappointed and hurt. I will (if possible) try to find out if the action was deliberate or an oversight.

Question 4.
It’s your Birthday and you wake up that morning to find yourself surrounded with beautiful gifts.
Answer:
I will obviously feel immense happiness.

Question 5.
You have had a hectic day at college when you come home you find the door locked. You forgot your keys at home that day and your parents have not informed you of their plans.
Answer:
I will be angry at my at myself and my parents also. But since I forgot the keys, I will take full responsibility and wait it out some family member returns.

Question 6.
You have planned a surprise day out for your best friend and she tells you she is not interested and has other plans
Answer:
I will be a little sad and disappointed but will accept my friend’s decision sportingly.

Class 12 Psychology Chapter 5 Emotions Intext Questions and Answers

ACTIVITIES (Textbook Page. No. 44)

Activity 1

THINK AND ANALYSE
Think of the following situations and note down what will be the experience of each person in that situation.

1. It’s Mira’s Std. 12th result today. She comes to know that she has topped in the college.
2. Rahul’s mother passed away just few days before his 18th birthday.
3. Suchita was ridiculed by her classmate for wearing old fashioned clothes.
4. Yash had a fight at home because his parents were not allowing him to go for a late night party.

Answer:

1. Mira will experience happiness due to her success.
2. Rahul will experience grief and loneliness.
3. Suchita will experience a sense of helplessness and shame.
4. Yash will be angry with his parents and feel they are doing him an injustice.

Activity 2 (Textbook Page. No. 46)

Observe each figure carefully and write the emotion that corresponds to each in the blank spaces provided below. Can you identify which among these is a positive and negative emotion?

Answer:
(A) = Surprise (positive), (B) = Anger (negative), (C) = Disgust (negative), (D) = Sadness (negative),
(E) = Joy (positive), (F) = Fear (negative).

Activity 3 (Textbook Page. No. 46, 47)

Check whether you can name the emotions accurately from the following examples-

1. It’s Riya’s 18th birthday today and her friends have given her a surprise party.
2. Rohan recently had a break up with his long time girlfriend with whom he was in love deeply.
3. Sameer had a disagreement with his best friend over where to go for a picnic and the situation got heated up.
4. Sumi has come to know that she has failed in her exam and she is figuring out how she will convey this to her parents.
5. Ashmeet suddenly saw his school best friend across the street after many years.
6. Amy opened today’s newspaper and read the news of a 5 year old getting gang raped.

Answer:

1. Happiness
2. Surprise
3. Anger
4. Fear
5. Surprise
6. Disgust

Activity 4 (Textbook Page. No. 48)

THINK, REFLECT, ANALYSE AND DISCUSS
State what will you feel and how will /did you behave in the given following situations:-

1. You are crossing the road and suddenly find a car breaking the signal and speeding up towards you.
2. You reach home and find the table laid with your favourite dish cooked by your mother.
3. You receive a phone call telling you that your best friend is undergoing an operation and needs blood.
4. Recall an incident in your childhood when you were insulted by an adult.

Answer:

1. I will feel angry but also afraid. I will jump out of the way
2. I will feel happy and surprised.
3. I will fear but feel concerned and be motivated to arrange for the blood.
4. Students are expected to answer this question by themselves.

Activity 5 (Textbook Page. No. 49)

THINK, ANALYSE AND ACT

You see a snake ….. with reference to the above given components fill the process with your interpretations, feelings and actions.
Answer:

Class 12 Psychology Textbook Solutions Digest

• Psychology: A Scientific Discipline Class 12 Psychology
• Intelligence Class 12 Psychology
• Personality Class 12 Psychology
• Cognitive Processes Class 12 Psychology
• Emotions Class 12 Psychology
• Psychological Disorders Class 12 Psychology
• First Aid in Mental Health Class 12 Psychology
• Positive Psychology Class 12 Psychology

Psychology Class 12 Chapter 4 Cognitive Processes Question Answers Maharashtra Board

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 4 Cognitive Processes Textbook Exercise Questions and Answers.

Cognitive Processes Class 12 Psychology Chapter 4 Questions and Answers

1. Choose the correct option and complete the following statements.

Question 1.
When we select few stimuli from the environment and bring them into the center of our awareness, it is called ……………
(a) attention
(b) perception
(c) thinking
Answer:
(a) attention

Question 2.
Ivan Pavlov is known for explaining learning by …………..
(a) classical conditioning
(b) operant conditioning
(c) observation
Answer:
(a) classical conditioning

Question 3.
When we organise the information from the environment, group them and give some meaning, that process is called ……………..
(a) attention
(b) perception
(c) thinking
Answer:
(b) perception

Question 4.
In operant conditioning the experiment was conducted on ……………
(a) dog
(b) rat
(c) monkey
Answer:
(b) rat

Question 5.
The change in behaviour due to practice or experience is known as ……………
(a) perception
(b) thinking
(c) learning
Answer:
(c) learning

2. Answer the following questions in 35 – 40 words each.

Question 1.
What is fluctuation of attention?
Answer:
Attention is the mental process of bringing few stimuli into the centre of awareness out of the many stimuli present. It is difficult to attend to a single stimulus for a long period of time. Our attention shifts from the original stimulus to another stimulus for a fraction of time and then comes back to the original stimulus. This may be due to factors like fatigue, decreased interest, etc. In most cases, attention fluctuates due to the limitations of human attention and hence cannot be totally eliminated.

Question 2.
Give three examples of top-down processing in perception.
Answer:
Perception is defined as the process of assigning meaning to information received about the environment based on the past experiences. We make use of both top-down processing and bottom- up processing while perceiving a stimulus. When we utilize top-down processing, our ability to understand information is influenced by the context in which it appears.

Some examples of top-down processes in perception are-
(a) Mr. Kumar lives in Flat A not in Flat
The circled item will be perceived as the letter B as the brain has used the context of the sentence.

(b) If you are asked to identify (a) the rat (b) the man, your perception will be likewise.
(c) the huamn mnid deos not raed ervey lteter by istlef but the wrod as a whole.

Most of you would be able to correctly read the above sentence as “The human mind does not read every letter by itself but the word as a whole”.

Question 3.
What is meant by thinking?
Answer:
Thinking is the mental activity that uses various cognitive elements and processes that involves the manipulation of information.
The core elements of thinking are-

1. Mental representation – It is a coded internal sensation acquired by direct experiences through the sense organs or by indirect experiences such as narrations, pictures, etc.
2. Concepts – They form the basis for all cognitive processes, acting as building blocks by connecting with each other to form more complex concepts.
3. Schema – It is an internal representation that organizes knowledge about related concepts and relationships among them.
4. Language – Mental representations, concept and schema are represented by language, for e.g., the word ‘cat’ is a symbol for a ‘cat’.

Question 4.
Describe any two processes of learning.
Answer:
Learning is defined as a relatively permanent change in behaviour that occurs due to experience or practice. The characteristics of learning are : (i) It involves some relatively permanent change in behaviour, (ii) The change in behaviour is due to experience or practice, (iii) Change in behaviour may be in knowledge or in skill or in muscular movements, (iv) Learning is an inferred process. The main processes of learning are:
(i) Learning by classical conditioning – It was first explained by Ivan Pavlov. It is learning by forming associations and stimulus substitution. In daily life, we learn many things by classical conditioning for e.g. a child is given an injection by the doctor and begins to cry in pain. He soon makes the connection between ‘doctor’, ‘injection’ and ‘pain’ and begins crying as soon as he is taken to a doctor.

(ii) Learning by operant conditioning – Learning by operant conditioning was first explained by B. F. Skinner. He said that learning takes place to gain positive consequences or to avoid negative consequences.

3. Classify the following into Mental Representation, Concepts and Schemata.

(1) Image of your mother in your mind
(2) Building
(3) Tree
(4) School
(5) Theater
(6) Table
(7) Neil Armstrong
Answer:

4. Find the odd one out.

Question 1.
Schema, Perception, Attention, Thinking
Answer:
Schema

Question 2.
Searching solution, Defining problem, Incubation, Implementation of the solution
Answer:
Incubation

Question 3.
Reasoning, Judgement, Decision making, Relaxing
Answer:
Relaxing

Question 4.
Concept, Schema, Solution, Mental Representation
Answer:
Solution

5. Identify if the following behaviours are due to learning or not. Give reasons for your answers.

Question 1.
After much hard work you are able to perform a dance step properly.
Answer:
It is due to learning as it involves a relatively permanent behavioural change due to practice.

Question 2.
In spite of getting hurt, Shayana, a five year old child, continues to play with knife.
Answer:
It is not learning as in spite of an unpleasant experience, there is no change in behaviour.

Question 3.
Once Hanif had to pay fine for breaking the signal while driving a car. Now he makes sure to stop the car at red signal.
Answer:
It is due to learning as Hanif has made an association between breaking the signal and paying a fine, i.e., negative consequences.

6. Answer the following questions with the help of given points.

Question 1.
Explain the stages of problem solving.
Points:
(i) Defining problem
(ii) Generating alternative solutions
(iii) Selecting a solution
(iv) Implementing and taking follow up of the solution.
Answer:
Problem solving is a type of thinking. It refers to the process of finding appropriate solutions to problems encountered in life. The main steps in problem solving are:
(i) Defining the problem – We need to identify and define the problem correctly. Otherwise, it will be difficult to reach a solution, for e.g., when a baby cries due to colic/stomach ache and if the mother interprets it as due to hungry, the problem will remain unresolved.

(ii) Generation alternative solutions – The person searches for possible solutions to the problem. Some solutions may be effective while other solutions have to be discarded, for e.g., Sunil finds maths difficult. He may think of solving more sums or of taking tuitions or of dropping the subject, etc.

(iii) Selecting a solution – The person selects what he considers the most effective solution, based on reasoning. This helps to resolve the problem in a realistic manner.

(iv) Implementing the solution and follow up on the solution – The person tries out the selected solution and evaluates the outcome i.e. whether it has helped to solve the problems. If the problem remains unresolved, the person may need to carry out the problem – solving procedure all over again.

Question 2.
Explain the stages of creative thinking.
Points:
(i) Preparation
(ii) Incubation
(iii) Illumination
(iv) Verification
Answer:
Creative thinking is characterised by the ability to perceive the world in new ways, to find hidden patterns, etc. It is a way of looking at problems or situations from a fresh/novel perspective. In involves divergent thinking that focuses on exploration of ideas and generating many possibilities. It is referred to as “thinking outside of the box.” Researchers, poets, designers, film makers always think in a creative way.

The four stages in creative thinking are-
(i) Preparation – This involves formulating the problem and gathering information about it. Many tentative solutions are tried out and discarded. No progress seems to be made by the person.

(ii) Incubation – If the person does not get the required results, he/she may focus on things unrelated to that problem. The period helps to work out the problem without consciously thinking about it. Incubation period appears to be non-fruitful.

(iii) Illumination – After incubation, suddenly the correct solution appears to the person, due to which he/she experiences excitement. It seems that a solution has fallen into place.

(iv) Verification – The new solution may need to be evaluated a number of times. In most cases, minor changes will be required but sometimes it may demand a major overhaul of the entire process.

For e.g., A teacher asks the students to think of unusual uses for a bottle.

• The students will begin brainstorming.
• The students will come up with many uses for e.g., to store liquids, to hold plants, etc. But these are not unusual uses. They will give up and focus on something else.
• The students will suddenly find novel uses for the bottle e.g., in juggling etc.
• The students will verify these solutions with their teacher.

7. Answer the following questions in detail.

Question 1.
Explain the laws of perceptual organization.
Answer:
Perception is defined as the process of assigning meaning to information received about the environment based on the past experiences. Our brain has the tendency to organize our sensations as a meaningful whole. Max Wertheimer first explained this tendency in the form of laws of perceptual organization.

Some laws of perceptual organization are as follows:
(i) Law of proximity – Stimuli that are near to each other are perceived as together, rather than stimuli that are far away from each other.

In the above figure, we perceive pairs of dots in each line because the dots which are near to each other are perceived together. So instead of perceiving a line of 8 dots, generally a line of four pairs of dots is perceived.

(ii) Law of similarity – Stimuli that are similar to each other are perceived together than stimuli that are distinct from each other.

In the above figure, we perceive 4 alternate vertical lines each of circles and crosses as similar stimuli are perceived together. Generally, we do not perceive 4 horizontal lines each having circles and crosses in alternate sequence.

(iii) Law of continuity – There is a tendency to perceive a stimulus in continuation according to its established direction.

In the above figure, a straight vertical line and a straight horizontal line are perceived together as a letter ‘L’ and a cutting line is perceived separately as a line following the smoothest path. Generally, we do not perceive here four different lines going in different directions.

(iv) Law of closure – There is a tendency to fill in the gaps in an incomplete stimulus so as to perceive it as a meaningful figure.

In the above figure, we fill in the gaps and perceive it as a triangle and square. Generally, we do not perceive here the three or four separate lines going in different directions.

Question 2.
Explain the core elements of thinking.
Answer:
Thinking is the mental activity that makes use of ideas or symbols instead of overt activity. The types of thinking are (i) Perceptual (concrete) thinking, (ii) Conceptual (abstract) thinking (iii) Reflective thinking, (iv) Creative thinking.
The core elements in thinking are-
(i) Mental representation – It is a coded internal sensation acquired by direct experiences through the sense organs or by indirect experiences such as narrations, pictures, etc. Mental representation is the mental imagery with the help of which the brain codes and stores the information. It is like a hypothetical internal cognitive symbol used by the brain to represent external reality. Example: a child is asked to imagine a peacock. The visual image of a peacock with its colouful plumage immediately comes to mind. This refers to “mental imagery” of an object.

(ii) Concepts – They form the basis for all cognitive processes, acting as building blocks by connecting with each other to form more complex concepts. Concepts involve extraction of some ‘idea’ on the basis of similarities and differences among the sensations. A concept is an idea which represents a class of objects, situations, etc which differentiates it from other classes of objects, situations, etc., for e.g. a child forms a mental image of a ‘dog’. He derives an idea of something similar in all examples of ‘dog’ that he has seen i.e. tail, fur, barking, etc. Thus, he has formed concept of dog. If he mistakenly identifies as a cat as a dog. he is corrected by others. So he tries to compare the mental images of dogs and cats. He has now learned and refined two concepts viz. dog and cat.

(iii) Schema – It is an internal representation that organizes knowledge about related concepts and relationships among them. Schema involves arranging many concepts in a particular system or organisation. It describes a pattern of thought or behavior that organises categories of information and the relationships among them. A child tries to organise the concepts that he has learned in a systematic way to generate a higher order understanding of patterns about information collected, for e.g. when a child visits a ‘zoo’ for the first time, images and concepts such as of different animals, caves/cages, etc., are activated in the brain simultaneously. Thus, he is forming the schema of ‘zoo’.

Conclusion:- Mental representation is sensory experiences in the form of mental images in the brain. Many similar mental representations denote concepts while many concepts put in a particular relationship to each other is schema.

Question 3.
With the help of your own examples explain the difference between distraction of attention and fluctuation of attention.
Answer:
Attention is the selective process by which we focus on only a few stimuli from among the various stimuli that are present in our environment. According to Norman Munn, “Attention is the mental process of bringing few stimuli into the center of awareness out of the many stimuli present”. Attention is influenced by objective factors such as intensity, size, movement, etc., of stimuli as well as subjective factors like interest, mindset, etc.

The distraction of attention refers to the drifting of attention from a specific stimulus to another stimulus. This occurs due to external factors such as intensity, novelty, movement, etc., of stimuli or internal factors like physical state, lack of interest, mental set, etc.

It is difficult to attend to a single stimulus for a long period of time. Our attention shifts from the original stimulus to another stimulus for a fraction of time and then come back to the original stimulus. This is called fluctuation of attention. It may be due to factors like fatigue, decreased interest, etc.

In most cases, fluctuation of attention is due to the limitations of human attention whereas distraction of attention is due to an external powerful stimulus that has drawn our attention. When attention fluctuates, it is for a very short period of time and then it returns to the original stimulus, i.e., it is a temporary shift in attention, e.g., look at the below figure. Attention fluctuates on observing the figure as a closed book or open book.

The distraction of attention arises when you are studying and the doorbell suddenly rings, you get up to answer the door. You may or may not be able to return to the original stimulus. Fluctuation of attention cannot be controlled totally but the distraction of attention should be avoided.

Class 12 Psychology Chapter 4 Cognitive Processes Intext Questions and Answers

ACTIVITIES (Textbook Page. No. 33)

Activity 1
Read the following examples and try to name the cognitive process described in each of them:

1. Reena immediately sensed the burning smell of pizza put in the oven.
2. Mahesh always pays attention to what the psychology teacher teaches in class.
3. Professor Mr. Patil met one of his former students all of a sudden. He tried to recall the name of his student.
4. Saif was reading a storybook and so he forgot to complete his homework.
5. After considering all pros and cons, Dinesh took the decision of changing his business.

Answer:

1. Sensation
2. Attention
3. Perception, Memory
4. Forgetting
5. Reasoning, Decision making.

Class 12 Psychology Textbook Solutions Digest

• Psychology: A Scientific Discipline Class 12 Psychology
• Intelligence Class 12 Psychology
• Personality Class 12 Psychology
• Cognitive Processes Class 12 Psychology
• Emotions Class 12 Psychology
• Psychological Disorders Class 12 Psychology
• First Aid in Mental Health Class 12 Psychology
• Positive Psychology Class 12 Psychology

Psychology Class 12 Chapter 3 Personality Question Answers Maharashtra Board

Balbharti Maharashtra State Board Class 12 Psychology Solutions Chapter 3 Personality Textbook Exercise Questions and Answers.

Personality Class 12 Psychology Chapter 3 Questions and Answers

1. Choose the correct option and complete the following statements.

Question 1.
A person who is shy and reserved is called an ……………..
(a) introvert
(b) extrovert
(c) ambivert
Answer:
(a) introvert

Question 2.
The Ink-Blot test was developed by psychologist ………………….
(a) Murray
(b) Rorschach
(c) Morgan
Answer:
(b) Rorschach

Question 3.
……………….. traits are the dominant characteristics of a person.
(a) Cardinal
(b) Secondary
(c) Central
Answer:
(a) Cardinal

2. Match the Pair

Question 1.

Answer:

3. State whether the following statements are true or false.

Question 1.
Personality is merely related to external appearance.
Answer:
False

Question 2.
People with high neuroticism are emotionally reactive.
Answer:
True

Question 3.
Children from families having a warm emotional atmosphere are well adjusted.
Answer:
True

4. Explain the concepts in 25 – 30 words each.

Question 1.
Personality
Answer:
The word personality is derived from the Latin word ‘persona’ which was used to refer to masks worn by actors during a stage performance, Thus, the meaning of personality was interpreted as ‘projected behaviour’ of an individual.

According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determines his unique adjustments to the environment.” According to Norman Munn, “Personality is a unique combination of individual’s physical structure, needs, interests, abilities and aptitudes.”

Question 2.
Trait
Answer:
A trait is a relatively enduring and consistent way of thinking, feeling and acting. It is some distinctive characteristic of the person that leads him/her to behave in more or less consistent ways across situations and over a period of time. Allport categorised traits as: (i) Cardinal Traits (single, dominant trait) (ii) Central Traits (core or basic traits) (iii) Secondary Traits

Question 3.
Sentence Completion Test
Answer:
Sentence Completion Test (SCT) is a type of projective technique used to assess personality. The individual is given a series of incomplete sentences and is asked to complete them in his/her own words, for e.g., My mother, My greatest fear is It is assumed that the endings provided by the person will reflect their motivation, urges, internal conflicts etc.

Question 4.
Structured interview
Answer:
Interview is a process in which the interviewer collects information about the personality of an interviewee by asking him/her specific questions. The main types of interview depending on the purpose of assessment are – structured and unstructured interview.

In structured interview, the number, type and sequence of questions to be asked are pre-determined. The answers expected from the interviewee are also specific. This type of interview is used where exact quantification is required, for e.g., industrial psychologists use structured interviews to select employees for a job.

Question 5.
Unstructured interview
Answer:
Interview is a process in which the interviewer collects information about the personality of an interviewee by asking him/her specific questions. The main types of interview depending on the purpose of assessment are – structured and unstructured interview.

In unstructured interview, the type and sequence of questions to be asked by the interviewee are not pre-determined. Detailed answers can be given and scoring is often subjective. It is employed by clinical psychologists, counsellors, etc.

5. Write short notes on the following in 50 – 60 words each.

Question 1.
Gordon Allport’s trait theory of personality.
Answer:
The word personality is derived from the Latin word ‘persona’. According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determines his unique adjustments to the environment.”

A trait is a relatively enduring and consistent way of thinking, feeling and acting. It is some distinctive characteristic of the person that leads him/her to behave in more or less consistent ways across situations and over a period of time. Allport categorised traits as Cardinal traits, Central traits and Secondary traits.
(i) Cardinal Traits – It is a single trait that dominates the individual’s personality. Every action of the person can be traced to the influence of this trait, for e.g., in case of Gandhiji honesty is the cardinal trait, in case of Napoleon, the cardinal trait was ambition.

(ii) Central Traits – These traits are ‘core’ traits or ‘basic’ characteristics that form the building blocks of personality. There are about 5-10 traits such as sensitivity, sociability, diligence, etc., that can best describe an individual’s personality.

(iii) Secondary Traits – These traits play a minor role in personality as they appear only in specific situations or under specific circumstances. They are sometimes related to preferences or attitudes.

Question 2.
Effect of mass media on personality development.
Answer:
The word personality is derived from the Latin word ‘persona’ which was used to refer to masks worn by actors during a stage performance, Thus, the meaning of personality was interpreted as ‘projected behaviour’ of an individual.

According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determines his unique adjustments to the environment.”

The psycho-social factors that have an effect on personality include heredity, family, peer group, culture and mass media. Mass media includes print media e.g., newspapers; audio-visual media e.g., T.V. and new media e.g., internet. Media is a source of information, education, entertainment and even socialization. It has a considerable effect on our value system, behaviour patterns and personality. However, excessive dependence on media may lead to egocentrism, poor academic performance, difficult in concentration, sleep disturbance, etc.

6. Answer the following questions with given points in 100 – 150 words each.

Question 1.
Explain the Big Five Factors model of Personality.
Points:
(i) Openness to experience
(ii) Conscientiousness
(iii) Extroversion
(iv) Agreeableness
(v) Neuroticism
Answer:
The word personality is derived from the Latin word ‘persona’ which was used to refer to masks worn by actors during a stage performance, Thus, the meaning of personality was interpreted as ‘projected behaviour’ of an individual.

According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determines his unique adjustments to the environment.” According to Norman Munn, “Personality is a unique combination of individual’s physical structure, needs, interests, abilities and aptitudes

The Five Factor Model of or Big Five Personality theory, based on the trait perspective proposed by Robert McCrae and Paul Costa. The five broad trait factors are-

1. Openness to Experience
2. Conscientiousness
3. Extroversion
4. Agreeableness
5. Neuroticism.

1. Openness to Experience – People who are open to experience are intellectually curious imaginative, appreciative of art, sensitive to beauty. They sometimes tend to think and act in nonconforming, adventurous ways. Individuals who score low on openness to experience tend to be conventional, resistant to change and prefer familiarity and routine. They may lack creativity and aesthetic sense.

2. Conscientiousness – It concerns the way in which people control, regulate and direct their impulses. People high in conscientiousness are hardworking, disciplined, responsible, dependable, etc, while those low on conscientiousness tend to be careless, unorganised, spontaneous, undisciplined, etc.

3. Extroversion – Extroversion is marked by pronounced engagement with the external world. People high on this trait are assertive, talkative, sociable, enthusiastic, etc. Individuals showing low extroversion tend to be shy, reserved, lack the activity levels of extroverts. They are low-key and disengaged from the social world.

4. Agreeableness – It refers to the ability of a person to get along with others and show a concern for social harmony. People high on this trait tend to be friendly, cooperative, generous and believe that people are basically decent and trustworthy. Persons low on agreeableness tend to be uncooperative, suspicious, even hostile and jealous.

5. Neuroticism – It refers to a tendency to experience negative emotions such as anger, anxiety or depression more intensely and for longer periods than normally experienced by others. Those who score high on neuroticism tend to be irritable, fearful, emotionally unstable and interpret ordinary situations as threatening and hopeless. People who score low in neuroticism are less emotionally reactive and hence tend to be calmer, emotionally stable and experience more of positive feelings.

Question 2.
Explain the factors influencing personality.
Points:
(i) Family
(ii) School
(iii) Peer group
(iv) Culture
Answer:
The word personality is derived from the Latin word ‘persona’ which was used to refer to masks worn by actors during a stage performance, Thus, the meaning of personality was interpreted as ‘projected behaviour’ of an individual.

According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determines his unique adjustments to the environment.” According to Norman Munn, “Personality is a unique combination of individual’s physical structure, needs, interests, abilities and aptitudes

Personality is shaped by biological factors such as heredity and hormones secreted by endocrine glands as well as psychosocial factors such as family, school, peer group, culture, mass media, etc.

(i) Family – As the first agency of socialization, the family exerts a strong influence on personality. Aspects of family such as family structure, atmosphere, and relationships, family interactions and childrearing practices influence personality, for e.g., if parents show rejection or over protection, etc., towards the child it leads to low self-esteem and adverse effects on the personality. A family with a warm emotional atmosphere and where parents adopt democratic discipline and show love, respect and concern for the children will positively influence the child’s personality, i.e., boost self-esteem.

(ii) School – Various aspects of school such as teaching-learning process, academic and co- curricular facilities, role of the teachers, school location, management and discipline, etc., influence the child’s personality, for e.g., teachers who are well qualified, creative, build a rapport which the students, tend to motivate students and help them to develop a good personality.

(iii) Peer group – It refers to individuals of the same age group, e.g., classmates or sharing the same interests, e.g., members of a sports club. Influence of the peer group is most noticed in adolescence since it serves as a reference group. The influence of peer group on the person may be positive such as developing healthy gender attitudes, skills of communication, etc., or it may be negative e.g., developing aggressive tendencies, prejudices, etc.

(iv) Cultural factors – Culture refers to the customs, values and social behaviour of a particular society. Every culture has its own set of beliefs, norms, expectations, etc., which influence the thoughts, feelings and behaviour of its members.

Question 3.
Explain the various methods of personality measurement.
Points:
(i) Behavioural analysis
(ii) Self-report technique
(iii) Projective method
Answer:
The word personality is derived from the Latin word ‘persona’ which was used to refer to masks worn by actors during a stage performance, Thus, the meaning of personality was interpreted as ‘projected behaviour’ of an individual.

According to Gordon Allport, “Personality is the dynamic organization within the individual of those psychophysical systems that determines his unique adjustments to the environment.”

According to Norman Munn, “Personality is a unique combination of individual’s physical structure, needs, interests, abilities and aptitudes. Personality can be assessed using techniques such as Self Report measures (inventories), Behavioural Analysis Techniques and Projective techniques.

(i) Behavioural Analysis Techniques
Behavioural Analysis techniques such as Interview and Observation can provide information about an individual’s personality in a variety of situations.
(a) Interview – It is a process in which the interviewer collects information about the personality of an interviewee by asking him/her specific questions. The main types of interview depending on the purpose of assessment are- Structured and unstructured interview.

• Structured interview – The number, type and sequence of questions to be asked in the interview are pre-determined. The answers expected are also specific. This type of interview is used where exact quantification is required, for e.g., industrial psychologists use structured interviews to select employees for a job.
• Unstructured interview – The type and sequence of questions to be asked by the interviewer are not pre-determined. Detailed answers can be given and scoring is often subjective. It is employed by clinical psychologists, counsellors, etc.

(ii) Self-Report Technique (Inventories)
The individual provides information about his/her personality by responding to statements/ questions on the inventory, for e.g., Minnesota Multiphasic Personality Inventory (MMPI), 16 Personality Factor Questionnaire (16 PFQ), etc. Responses are scored in quantitative terms and interpreted on the basis of norms that are developed for the test.

(iii) Projective Techniques
Projective techniques emerged from the psychoanalytic perspective. The individual responds freely to relatively unstructured or ambiguous stimuli/material. It is assumed that individuals project their own personality onto these stimuli, often revealing personal conflicts, coping styles, etc. Projective techniques cannot be scored in an objective manner. They use various materials like ink-blots, ambiguous pictures, incomplete sentences, word associations, etc. Main projective techniques include Rorschach’s Ink-Blot Tests, Thematic Apperception Test (TAT), Sentence Completion Test, etc.

Class 12 Psychology Chapter 3 Personality Intext Questions and Answers

ACTIVITIES (Textbook Page. No. 23)

Activity 1

Read the following examples and express your opinion about the concept of personality:
(i) Rohan is a good looking boy. He is a genius, but extremely arrogant. He always shouts at his friends. He always talks very rudely to his parents.
(ii) Ruchi is a girl with ordinary looks. She is poor in her studies but always gets along nicely with her friends. She always talks in a polite manner to everyone.
Answer:
[Information based question – refer textbook page no. 23 (3.1)]

Activity 2 (Textbook Page. No. 24)

Look at the list given below and discuss which of these factors have a stronger influence in shaping personality :
(i) Nutritious diet (ii) Junk food (iii) Physique (iv) Exercise (v) Technology (vi) Peer group (vii) Parents (vii) Neighbours (ix) Relatives (x) Childhood experiences.
Answer:
All the given factors tend to shape our personality. However, parents, peer group, physique, childhood experiences tend to exert greater influence.

Activity 3 (Textbook Page. No. 25)

Think how the peer group may influence you with respect to factors given below:
(i)Hairstyle (ii) Dressing style (iii) Eating habits (iv) Study habits (v) Communication skills (vi) Attitudes (vii) Decision making (viii) Likes and dislikes, etc
Answer:
The peer group refers to individuals who are of the same age or who tend to share similar interests. Peer group influences personality tremendously in late childhood and in adolescence. This may be in regard to physical appearance like hairstyle and dressing style. Peer group also influences how we interact with others i.e., interpersonal aspects like communication skills, decision-making, attitudes as well as personal preferences eating habits, study habits, like/dislikes, etc.

Activity 4 (Textbook Page. No. 27)

Make two separate lists of jobs requiring more need of talking and jobs requiring less need of talking. Try to find out which of your friends will be suitable for these two types of jobs.
Answer:
Jobs requiring more need of talking.

1. Teacher
2. Salesperson
3. Human resource manager
4. Lawyer
5. Event planner

Jobs requiring less need of talking.

1. Writer
2. Computer programmer
3. Librarian
4. Accountant
5. Researchers.

Activity 5 (Textbook Page. No. 29)

Use observation method and try to get few ideas of the personalities of the following individuals:

1. Traffic controller
2. News reporter
3. Private detective
4. Interior designer
5. Nurse
6. Teacher

Answer:

1. Traffic controller – He/she must have physical stamina, mental agility, negotiation skills, organizational skills.
2. News reporter – He/she must have curiosity, alertness, courage, language skills, empathy.
3. Private detective – He/she must be trustworthy, persistent, sociability, technological skills.
4. Interior designer – He/she must have creativity, interpersonal skills, aesthetic skills, communication skills.
5. Nurse – He/she must show empathy, stamina, communication skills, diligence, interpersonal skills.
6. Teacher – He/she must have good interpersonal and communication skills, be patient, creative.

Class 12 Psychology Textbook Solutions Digest

• Psychology: A Scientific Discipline Class 12 Psychology
• Intelligence Class 12 Psychology
• Personality Class 12 Psychology
• Cognitive Processes Class 12 Psychology
• Emotions Class 12 Psychology
• Psychological Disorders Class 12 Psychology
• First Aid in Mental Health Class 12 Psychology
• Positive Psychology Class 12 Psychology