UPMSP Class 12 Business Studies flashcards

32 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, using planning, organising, staffing, directing and controlling.

Effectiveness vs efficiency

Effectiveness means completing a task on time and achieving the goal; efficiency means doing it with minimum cost and resources. A firm can be one without the other.

Levels of management

Top management sets objectives and policies; middle management interprets policy and assigns duties; supervisory management oversees daily operations and worker performance.

Coordination

The synchronisation of the efforts of all departments and levels of management; it is not a separate function but the essence of management.

Scientific management

F.W. Taylor's approach applying science to shop-floor work through time study, motion study, functional foremanship, standardisation and a differential piece wage system.

Unity of command

Fayol's principle that each subordinate should receive orders from only one superior, preventing confusion, conflict and divided loyalty in the organisation.

Gang plank

A shortcut in the scalar chain allowing two employees at the same level to communicate directly in an emergency without passing through the whole chain of command.

Differential piece wage system

Taylor's incentive scheme paying a higher rate per unit to workers producing above standard output and a lower rate to those below it, rewarding efficiency.

Business environment

The sum of all individuals, institutions and external forces that affect a business; it includes micro forces such as customers and suppliers and macro forces such as economic and legal conditions.

Micro environment

The specific forces that directly and immediately affect a firm's operations: suppliers, customers, competitors, market intermediaries, the public and the organisation itself.

Macro environment

The general external forces affecting all firms in an industry: economic, social, technological, political and legal environments, largely beyond a single firm's control.

Planning

Deciding in advance what to do, how, when and by whom; it bridges the gap between where we are and where we want to be, and is the primary management function.

Planning premise

An assumption about the future environment, such as forecasts of demand or government policy, on which plans are based and which must be clearly stated.

Policy vs rule

A policy is a general guideline channelling decision-making within limits; a rule is a specific do-or-don't statement with no discretion allowed in its application.

Organisation structure

The framework of authority and responsibility relationships among people and departments; functional structure groups by function, divisional structure groups by product or territory.

Delegation

The downward transfer of authority from a superior to a subordinate, with responsibility assigned for the task; accountability to the superior cannot be delegated.

Decentralisation

The dispersal of decision-making authority to lower levels of the organisation; it is a philosophy of participative management, not merely the absence of centralisation.

Span of control

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

Recruitment vs selection

Recruitment is searching for and attracting prospective applicants from internal and external sources; selection is choosing the most suitable candidate through tests, interviews and reference checks.

Training vs development

Training increases skills and knowledge for a specific job and is job-oriented; development is the overall growth of an employee's personality and capability over the long run.

Vestibule training

An off-the-job method in which a replica of the workplace is set up and trainees learn on dummy equipment before moving to the actual job.

Maslow's need hierarchy

Abraham Maslow's order of human needs: physiological, safety, social, esteem and self-actualisation; a satisfied need no longer motivates behaviour.

Herzberg's two-factor theory

Hygiene factors such as pay and working conditions prevent dissatisfaction but do not motivate; motivators such as recognition and growth create genuine satisfaction.

Leadership styles

Autocratic leaders decide alone; democratic leaders involve subordinates in decisions; laissez-faire leaders give subordinates freedom to decide, with the leader available as support.

Controlling

Measuring actual performance against planned standards, identifying deviations and taking corrective action; it links backward-looking review with forward-looking improvement.

Management by exception

A control principle under which managers attend only to deviations that exceed acceptable limits, leaving routine performance within limits to operate without intervention.

Capital structure

The mix of debt and equity used to finance a firm; debt is cheaper because interest is tax-deductible but adds fixed obligations and financial risk.

Working capital

The capital required for day-to-day operations, equal to current assets minus current liabilities; its requirement grows as the operating cycle lengthens.

Primary vs secondary market

The primary market issues new securities and the company receives the funds; the secondary market trades existing securities between investors, providing liquidity and price discovery.

Dematerialisation

The conversion of physical share certificates into electronic form held in a demat account with a depository, enabling paperless holding and faster transfer of securities.

Marketing mix

The four Ps a firm controls: product (features, branding, packaging), price, place (distribution channels) and promotion (advertising, sales promotion, personal selling, publicity).

Consumer redressal commissions

Under the Consumer Protection Act, 2019, District, State and National Commissions hear complaints by claim size, from up to Rs 1 crore to above Rs 10 crore.