Test Your Knowledge Case Studies: HOTS/Evaluation Questions - Directing Commerce Notes | EduRev

Crash Course of Business Studies(BST)- Class 12

Commerce : Test Your Knowledge Case Studies: HOTS/Evaluation Questions - Directing Commerce Notes | EduRev

The document Test Your Knowledge Case Studies: HOTS/Evaluation Questions - Directing Commerce Notes | EduRev is a part of the Commerce Course Crash Course of Business Studies(BST)- Class 12.
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CASELECT 1: Mohan and Sohan are friends working in Surya Ltd. as Production and Sales Managers respectively. In an inter-departmental meeting Sohan informed Mohan about a change in the marketing policy of the company.

On the basis of the given information about Mohan and Sohan answer the following question:

Identify the type of communication highlighted in above case.

Solution : Informal communication.


CASELECT 2: Ankur is working as a production manager in an organisation. His subordinate Saurabh discussed with him a method of production which will reduce the cost of production. But due to some domestic problems and Ankur's mind being pre-occupied he is not in a position to understand the message. Saurabh got disappointed by this. Identify the factor which acts as a communication barrier. (1 Mark)

Solution : Lack of attention (Psychological barriers of communication).


CASELECT 3: In an organisation employees always feel they are under stress. They take least initiatives and fear to express their problem before the manager. The manager does not give information about future plans but simply tells the employee what immediate steps they must take. What do you think is wrong with the manager?

Solution : The manager has adopted autocratic leadreship style. An autocratic leader gives orders and insists that they are obeyed. He determines the policies for the group without consulting them. He does not give the subordinates any freedom to influence his decision. It is like - bossing people around. An autocratic leader gives orders and expects his subordinates to obey those orders. If a manager is following this style, then communication is only one-way with the subordinate only acting according to the command given by the manager.


CASELECT 4: Anju and Manju work as supervisor and clerk in Production and Finance Department, respectively. They're dose friends and have lunch together. One noon while having lunch Anju shared with Manju that about twenty employees will be transferred to the foreign branch next month.

On the basis of the given information about Anju and Manju, answer the following question:

(a) Identify the type of communication took place between Anju and Manju.

(b) State any two features of such communication. (3 Marks)

Solution :

(a) Informal communication.

(b) Features of Informal communication are:

(i) It takes place outside the official channels.

(ii) It may be on work related or other matters.

(iii) It arises out of social interactions.


CASELECT 5: Kareena is working in an MNC' she has been given an option to buy the shares of the company at an amount less than the market price because of her performance as an incentive.

Identify and explain the form of incentive is being referred here. (3 Marks)

Solution : Co-partnership/Stock Option: Management offers shares to its employees at a set price which is lower than the market price. Such an allotment of shares creates a feeling of ownership to the employees and makes them to contribute towards the growth of the organisation.


CASELECT 6: Somya has been awarded the 'Employee of the Month' award. Her name has been placed on the notice board.

Identify and explain the form of incentive is being referred here. (3 Marks)

Solution : Employee Recognition Programmes: Recognition is the acknowledgement of the work of the employee with a show of appreciation.

The examples of employee recognition are:

(i) Congratulating the employee for good performance.

(ii) Displaying on the notice board or in the company news letter about the achievement

ofemployee.

(iii) Installing award or certificate for best performance.

(iv) Distributing mementos, complimentary goods like T-shirts in recognition of employee

services.


CASELECT 7: In the following cases identify the type of communication barrier:

(a) Shunidhi is working for a project at an overseas location with a world renowned computer engineer. She is among the four people who are in the core team of the project. The world renowned engineer, Mr. Sanjay Sethi, her boss rarely seeks an advice from her. He thinks that Shunidhi lacks experience and needs to learn more.

(b) In a board meeting where all the board of directors were having board discussion. One of the director said something which he continued to say but before he could complete what he had to said the other directors due to preconceived notions derived some other meaning.

(c) An organisation has employees from various countries, having different languages and culture. Once the management decided to draft the message of congratulating the employees on the Christmas in their native languages and translated the same message in different languages. On the 27 December, there was a strike by the employees belonging to a particular country showing resentment on the language used in the greetings. (3 Marks)

Solution :

(a) Personal barrier: Lack of confidence of superior on his subordinate.

(b) Psychological barrier: Premature evaluation.

(c) Semantic barrier: Faulty translation.


CASELECT 8: Mr. John is working as the Human Resource Consultant in Blue Horizon Pvt. Ltd. The company manufactures squashes and soft drinks. The company is facing a problem of high employee turnover due to which the production and supply situation of its product has been on decline. The personnel manager of the company asks Mr. John to look into the situation and offer a suitable solution for retaining the talented employees and solve the problem of employee turnover.

On analysing the situation Mr. John suggests that the good employees of the organisation should be rewarded in a manner that creates feeling of ownership among the employees and thus motivates them to contribute their best towards the organisational goals.

On the basis of the given information about Mr. John, the Human Resource Consultant in Blue Horizon Pvt. Ltd., answer the following question:

Identify and explain the incentive that has been suggested by Mr. John.

Also, explain any two other incentives of the same category. (4 Marks)

Solution :

(a) Co-partnership/Stock option is the type of incentive that has been suggested by Mr. John. Under this incentive scheme the employees of the company are offered the shares of the company at a price lower than the market price. This creates a feeling of ownership in the employees and motivates them to contribute their best.

(b) The two other financial incentives are listed below:

(i) Profit sharing: Under this method the employees given a share from the profits of the company. This encourages to improve their performance and contribute to their best of tire ability because they understand that higher profits for the company would also increase their personal gains.

(ii) Retirement benefits: An organisation may provide retirement benefits like provident fund, pension and gratuity to its employee'7. These incentives provide financial security to the employees and acts as an incentive for them while they are in service.


CASELECT 9: Sohan is working under his superior, Naman. He always communicates useful ideas and suggestions to his superior regarding reduction of cost, improvement in the product, etc. Naman implements his suggestions and has always found favourable results, but he never

appreciates Sohan for his suggestions. Sohan decided not to communicate any suggestion or ideas to Naman.

On the basis of the given information Sohan and Naman answer the following question:

(a) Identify and explain the factor which acts as a communication barrier.

(b) Explain two other factors of the same group of communication barrier. (4 Marks)

Solution :

(a) Lack of proper incentives (Personal barriers): If there is no incentive for communication then the subordinates may not take any initiative to communicate. For example, if there is no reward for a good suggestion; the subordinates may not be willing to offer useful suggestions.

(b) Some of the personal barriers are as follows:

(i) Fear of challenge to authority: Sometimes superiors withhold or suppress information, if they fear of losing their authority over subordinates.

(ii) Lack of confidence of superior on his subordinates: If the superiors do not trust the competency of the employees, they don't pay any attention to their advice, opinion or suggestions.


CASELECT 10: Rajat a Sales Manager, achieved his sales targets one month in advance. This achievement was displayed on the notice board and a certificate for the best performance was awarded to him by the CEO of the company.

On the basis of the given information about, Rajat a Sales Manager answer the following question:

(a) Name the incentive provided to Rajat.

(b) Identify the type of incentive.

(c) List any two other incentives of the type identified in part (b). (4 Marks)

Solution :

(a) Incentive provided to Rajat is an example of Employee Recognition Programmes.

(b) Non-financial incentive.

(c) The any other non-financial incentive are:

(i) Status.

(ii) Job Security.


CASELECT 11: Sandy Shows Ltd. is a profitable business venture that arranges local entertainment events. So far the business has run successful pop concerts, sports events and outdoor theatre, all using local people. Sandy Shows Ltd. uses the local football ground for all the events, which costs Rs. 200,000 per day to the company.

Lissa, the Operations Manager hires casual labour for cleaning, checking tickets and setting up the stage. The business has its own full-time office staff for all of the administration. Local businesses provide catering and sell the tickets for a commission.

Alexendra, the Finance Manager, is ambitious and wants to expand the business into bigger entertainment events. These could include very famous pop groups, world class performers and national sports events. Lissa is less sure about expansion on this scale.

"Think of the economies of scale/ said Alexendra. 'We will also be able to charge much more for the tickets!'

The business faced a major problems on account of more and more events. The first is its staff. As the business has become more successful, the workload on the office staff has increased. All the staff members are unhappy about working long hours without extra pay. 'Well they get free tickets for the shows,' said Alexendra. 'I'm fed up with their complaints. If they don't like it they can go and work in the local supermarket - they'll earn more!' This worried Lissa, as the problem would get worse if the business expanded into bigger entertainment events.

On the basis of the given information about Sandy Shows Ltd. answer the following question:

Identify' and explain the methods for improving staff motivation at Sandy Shows Ltd. (4 Marks)

Solution : The staff of Sandy Shows Ltd. may be motivated by offering following Financial Incentives:

(i) Productivity linked wage incentives: It include plans/schemes under which employees can be motivated by linking their productivity with their salary that is increment in salary is according to increase in their productivity.

(ii) Bonus: A one-time extra reward offered to the employees for sharing high performance. It is given over and above the wages/salaries of tire employees. Some companies offer bonus to their employees during the festival time. It could also be offered in the form of free trips to foreign countries, paid vacations etc.

(iii) Profit sharing: Employees are given a share in surplus profits on the assumption that they contribute to profit earning. This serves to motivate them to improve their performance.

(iv) Co-partnership/Stock option: Management offers shares to its employees at a set price which is lower than the market price. Such an allotment of shares creates a feeling of

ownership to the employees and makes them to contribute towards the growth ot the

organisation.


CASELECT 12: A meeting of all supervisor is scheduled on 18th May 2014 This Notice Board was placed in reception area of ABC Ltd. The notice placed here did not mention clear specification regarding the time. This resulted in ambiguity of message.

On the basis of the given information about ABC Ltd. answer the following question:

(a) Identify the communication barrier discussed above.

(b) Identify the category of this communication barrier,

(c) Explain any three other communication barrier of the same category. (5 Marks)

Solution :

(a) Badly expressed message

(b) Semantic Barriers.

(c) The other barriers of some category are:

(i) Symbols with different meanings: If a word has several meanings, the receiver may perceive the meaning of the word differently from that intended by the sender e.g., use of the words value, right etc.

(ii) Faulty translations: If the communications are originally drafted in one language and are then translated to the language understandable to the workers and if the translator is not proficient with both languages, mistakes may creep in causing different meanings to the communication.

(iii) Body language and gesture decoding: Along with the verbal communication, another important mode of communication is body language and gestures shown by the person who is talking. If the verbal combination does not match his body language, then the employees may get confused and may mis-understand the meaning.


CASELECT 13: Alembic Ltd. all the employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone talking to one another causing thereby inefficiency in the office. It has also resulted in loss of secret and confidential information.

What system do you think the manager of Alembic Ltd. should adopt to improve communication? Give reasons. (5 Marks)

Solution : Alembic Ltd. should adopt formal communication system to improve its state of affairs. The formal communication will be beneficial to the organisation because:

(i) It ensures maintaining secrecy of confidential matters.

(ii) It provides support to the authority of a superior over subordinates because it flows through official channels designed in the organisational chart.

(iii) Such communication is systematic and ensures orderly flow of information and ideas.

(iv) The source of communication can be easily located. Hence, in case of any confusion, the matter can be easily clarified.


CASELECT 14: ‘KPM Pvt. Ltd.' is manufacturing breads and biscuits for many years. It has approximately 150 employees and most of them are not happy with the working environment. Because of this the labour turnover rate is veryhigh. Therefore the company appoints a new Human Resource Manager, Naveen, to analyse the situation. Naveen finds that there is no free flow of communication, and there is no suggestion box for the employees to voice their suggestions or grievances. The company rarely organises a social or cultural gathering, the employees just come, finish their work and leave the organisation.

On the basis of the given information about KPM Pvt. Ltd. answer the following question:

(a) Identify and explain the communication barrier discussed above.

(b) Identify the category of this communication barrier.

(c) Explain any other communication barrier of the same category. (5 Marks)

Solution :

(a) Organisational facilities: In a large organistion, free and effective flow of information is possible only when there are proper facilities like suggestion box, complaint box, social get togethers, etc. Lack of these facilities create communication problems.

(b) Organisational barriers.

(c) The other organisational barriers to effective communication.

(i) Organisational policy: If the organisational policy does not support free flow of information, it may result in barriers. For example, in a centralised organisation, people may not be encouraged to have a free communication.

(ii) Rules and regulations: Rigid rules and regulations may create barriers as this may lead to red tapism and delay in action.

(iii) Status: Sometimes people working at the higher level do not believe in the information provided by the lower level employees and they don't allow the subordinates to express their feelings freely.


CASELECT 15: Princy had always been ambitious and self-motivated but she never imagined her business empire would be so successful. After completing a hairdressing course at college she used all of her savings and a bank loan to start her own business, Style spa, providing fitness and beauty solutions for women. Princy worked 13 hours a day and took no holiday for a year and within 12 months she was able to repay the bank loan. After three years, Princy was the main shareholder in Style Spa Private limited operating four 'Fitness and Beauty' centres. Princy made small batches of creams, soaps and shampoos and they were very successful in one of the hairdressing shops. Princy wanted to manufacture these products on a much larger scale.

Rohit a friend of princy offered to finance the factory to produce Princy's beauty products in exchange for a 45% stake in Style Spa Private limited. He explained that he was not interested in managing the factory, short term profits were not a priority and Princy would have complete control. Within 4 months, the production unit has been established.

The products proved to be popular but not very profitable because of production and supply problems. Princy had no experience of managing a factory. She tried to control each and everything on her own as a result many problems soon became apparent. Suppliers complained of receiving confusing orders. Retail customers could not get enough stock of the most popular ranges, but their telephone calls for more deliveries went unanswered. Different departments of the factory appeared not to be communicating with each other. The factory workforce had agreed to work flexibly, switching from one task to another. Workers were paid a good salary but they did not like the formal instructions pinned to the notice-board each morning giving details of the daily jobs with no thought given to their preferred work groups. Initial production problems had often gone unsolved as too much of formal instruction without follow up has resulted in lack of trust between the superior and subordinates.

On the basis of the given information about Style Spa Pvt. Ltd. and its production unit answer the following question:

Identify the two possible barriers to effective communication stated in above case.

As a communication specialist suggest few ways in which communication might be improved in the factory. (6 Marks)

Solution :

(a) The two possible barriers to effective communication are:

(i) Organisational policy (Organisational Barrier).

(ii) Distrust (Emotional Barrier).

(b) The few ways in which communication might be improved in the factory are:

(i) Clarify the ideas before communication: First of all the superior should himself be clear about the message. The entire idea, should be analysed in depth first by the superior and then stated in a manner that is clearly conveyed to the subordinates.

(ii) Communicate according to the needs of the receiver: The manager should adjust his communication according to the education and understanding levels of the subordinates. This will make the receiver more receptive.

(iii) Follow up communications: There should be a proper follow up of the information given by the manager to the subordinates. This follow up helps to remove hurdles, mis-understanding of instructions given by the manager to his subordinates.

(iv) Be a good listener: Manager should be a good listener. Patient and attentive listening solves half of the problem.

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