RBSE SS Business Studies flashcards

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

Management

The process of getting things done through others to achieve organisational goals effectively and efficiently, combining planning, organising, staffing, directing and controlling.

Effectiveness vs efficiency

Effectiveness means completing work on time and achieving the goal; efficiency means doing it with minimum cost and resources. High performance needs both together.

Coordination

The deliberate synchronisation of activities across functions and levels so that all efforts move toward common goals. It is the essence of management, not a separate function.

Management levels

Top level sets objectives and policy, middle level interprets policy and assigns duties, supervisory level oversees operatives and maintains quality and reduces waste.

Unity of command

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

Unity of direction

Fayol's principle that each group of activities with the same objective should have one head and one plan, ensuring coordinated effort.

Functional foremanship

Taylor's technique placing eight specialist bosses around the worker: four in planning (route, instruction card, time and cost, discipline) and four on the shop floor.

Differential piece wage

Taylor's incentive system paying a higher rate per unit to workers who produce above the standard output and a lower rate to those below it.

Scalar chain and gang plank

Fayol's scalar chain is the formal line of authority from top to bottom; the gang plank permits direct communication between equals in emergencies with approval.

Business environment

The sum of external forces - economic, social, technological, political, legal and natural - that surround a firm, lie beyond its control and affect its performance.

Specific vs general forces

Specific forces such as customers, suppliers and competitors directly affect daily operations; general forces such as social, political and technological trends shape the long-term context.

LPG reforms 1991

Liberalisation, privatisation and globalisation reduced licensing, expanded private and foreign participation and integrated Indian business with world markets, raising competition.

Planning

Deciding in advance what to do, how and when, to bridge the gap between current position and desired objectives; it is the primary, pervasive and continuous function.

Planning premises

Assumptions about the future environment - economic, political, technological and internal conditions - on which plans are built and which guide alternative evaluation.

Policy vs rule

A policy is a general guideline channelling decisions and allowing some discretion; a rule is a specific, rigid statement of what must or must not be done.

Strategy

A comprehensive long-term plan for accomplishing objectives by matching organisational strengths to environmental opportunities and threats, usually set at the top level.

Organising

Identifying and grouping work, defining authority and responsibility, and creating relationships so people work together effectively toward objectives.

Delegation

The downward transfer of authority from superior to subordinate to complete a task; responsibility accompanies it, and accountability to the superior cannot be delegated away.

Decentralisation

The systematic dispersal of decision-making authority to the lowest levels of the organisation; it is an extension of delegation and differs in scope and philosophy.

Functional structure

Grouping activities by function such as production, marketing and finance. It aids specialisation and economies but can breed departmental conflict and coordination problems.

Recruitment vs selection

Recruitment is searching for and attracting prospective applicants to apply; selection is screening applicants and choosing the most suitable one for the job.

Training vs development

Training improves skills and knowledge for the present job through methods like apprenticeship and job rotation; development builds overall personality and capability for future roles.

Maslow's hierarchy

Needs ordered from lower to higher: physiological, safety, social, esteem and self-actualisation. A satisfied need stops motivating, so managers target the active level.

Leadership styles

Autocratic leaders decide alone and impose orders; democratic leaders consult the group before deciding; laissez-faire leaders leave decisions largely to subordinates.

Communication barriers

Interferences that distort messages: semantic (jargon, ambiguity), psychological (distrust, premature evaluation), organisational (hierarchy, rules) and personal (fear, poor listening).

Controlling

Measuring actual performance against set standards, identifying deviations, analysing causes and taking corrective action to keep activities on track toward objectives.

Management by exception

A control principle under which managers attend only to significant deviations from standards and leave minor variations to subordinates, saving time and effort.

Capital budgeting

The investment decision evaluating long-term projects using payback period, net present value, internal rate of return and profitability index to allocate scarce funds.

Fixed vs working capital

Fixed capital is invested in long-term assets like plant and machinery; working capital is invested in current assets like cash, inventory and receivables.

Primary vs secondary market

In the primary market new securities are issued and funds go to the issuer; in the secondary market existing securities trade between investors.

Money market instruments

Short-term instruments of up to one year: treasury bills, commercial paper, call money, certificates of deposit and commercial bills, used for liquidity management.

Marketing mix

The four Ps - product, price, place and promotion - that a firm combines to satisfy target customers; services add people, process and physical evidence.

Consumer rights

Six rights under consumer law: safety, to be informed, to choose, to be heard, to seek redressal and to consumer education, protecting buyers against unfair practices.