Maharashtra HSC Organisation of Commerce and Management flashcards

34 cards. Read the term and the definition here. The deck at the top of this page is optional.

Commerce

Trade plus the auxiliaries that support trade, such as transport, banking, insurance, warehousing, advertising and communication; it covers the distribution of goods and services rather than production.

Business risk

The possibility of loss arising from uncertainty in business operations. It is unavoidable, borne by the owner, and grows with scale, time horizon and market volatility.

Genetic industry

A primary industry engaged in breeding and rearing plants and animals, such as poultry farms, nurseries and cattle breeding, rather than extracting resources from nature.

Entrepot trade

External trade in which goods are imported into a country and then re-exported, often after processing or repackaging, without being consumed domestically.

Partnership liability

Under the Indian Partnership Act, 1932, partners have unlimited joint and several liability, meaning personal assets can be used to settle firm debts.

One Person Company

A private company with only one member and at least one director, requiring a nominee for succession, with turnover and capital limits governing conversion into other forms.

Cooperative society

A voluntary association registered under the Cooperative Societies Act, with a minimum of ten members, one member one vote, limited liability and a service rather than profit motive.

Statutory corporation

A public sector undertaking created by a special Act of Parliament or state legislature, with a separate legal entity, defined powers and autonomy from direct departmental control.

Unity of command

Fayol's principle that each subordinate should receive orders from and be accountable to only one superior, preventing confusion and conflicting instructions.

Esprit de corps

Fayol's principle of building team spirit and unity among employees, emphasising harmony and collective effort over individual interests within the organisation.

Differential piece rate

Taylor's wage technique paying a higher rate per unit to workers who meet or exceed the standard output and a lower rate to those who fall short.

Span of management

The number of subordinates a superior can effectively supervise; a narrow span produces a tall structure, while a wide span produces a flat structure.

Planning premises

Assumptions about the future environment, internal and external, on which plans are based, such as market conditions, government policy and expected demand.

Policy versus rule

A policy is a general guideline allowing discretion in decisions, whereas a rule is a specific mandatory statement permitting no discretion.

Satisficing decision

Herbert Simon's concept that managers with bounded rationality accept a satisfactory rather than optimal alternative because complete information and analysis are impossible.

Standing plan

A plan used repeatedly for recurring situations, including objectives, strategies, policies, procedures and rules, as opposed to single-use plans such as budgets.

Delegation elements

Delegation consists of authority, the right to command; responsibility, the obligation to perform; and accountability, the answerability that remains with the delegator.

Decentralisation

The systematic dispersal of decision-making authority to lower levels throughout the organisation; unlike delegation, it is an organisation-wide philosophy rather than a superior-subordinate act.

Informal organisation

The network of social relationships and interactions that arises spontaneously among employees, outside the formally defined structure, rules and channels of communication.

Staffing process

The sequence of manpower planning, recruitment, selection, placement and orientation, training and development, performance appraisal, and compensation of employees.

Herzberg hygiene factors

Factors such as salary, working conditions and company policy whose absence causes dissatisfaction but whose presence does not by itself motivate employees.

Grapevine communication

Informal communication that spreads through social networks in an organisation; it is fast and can fill information gaps but is often inaccurate and unverifiable.

Laissez-faire leadership

A leadership style in which the leader gives subordinates complete freedom to make decisions and complete work, intervening minimally and offering support only when asked.

Maslow hierarchy

A motivation theory arranging needs as physiological, safety, social, esteem and self-actualisation, with lower-level needs generally satisfied before higher-level needs motivate behaviour.

Coordination

The orderly synchronisation of group efforts to achieve common goals; it is the essence of management, present in every function rather than being a separate function.

Management by exception

A control principle under which managers attend only to deviations that exceed a set critical limit, leaving routine performance within limits to subordinates.

Controlling process

Setting performance standards, measuring actual performance, comparing it with standards, analysing deviations, and taking corrective action to keep activities on plan.

PESTLE analysis

A framework for scanning the macro business environment through political, economic, social, technological, legal and environmental factors that affect organisational strategy.

SWOT analysis

A strategic tool matching internal strengths and weaknesses of a firm against external opportunities and threats in its environment to guide strategy formulation.

Innovative entrepreneur

An entrepreneur who introduces new products, methods, markets or sources of supply, creating new combinations of resources in the manner described by Schumpeter.

Marketing mix

The combination of product, price, place and promotion decisions through which a firm satisfies target consumer needs and positions its offering in the market.

Consumer Protection Act 2019 tiers

Three redressal bodies: District Commission up to fifty lakh rupees, State Commission from fifty lakh to two crore, and National Commission above two crore.

Net working capital

The excess of current assets over current liabilities, measuring the funds available to meet day-to-day operating needs of a business.

Debenture

A written acknowledgement of debt issued by a company, carrying a fixed rate of interest and repayment terms, with holders ranking as creditors rather than owners.