Solution

MCQ PART A ( 5 TO 8)

Class 12 - Business Studies

1. (a) Direct recruitment

Explanation:
Direct recruitment is suitable for filling casual vacancies when the workload is high or when a certain number of permanent
workers are absent.
2.
(b) Both promotion and transfer
Explanation:
Both are included in direct source.

3.
(d) Direct Recruitment
Explanation:
Through Direct Recruitment

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4.
(b) Starting a company
Explanation:
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Human Resource Management includes many specialised activities except starting a company.

5.
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(d) Job offer
Explanation:
Job offer is not included in contract of employment.
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6. (a) All of these

Explanation:
By

All of these
7. (a) Employment interview
Explanation:
Employment interview
8.
(b) Directing
Explanation:
Directing not included in staffing

9. (a) Workload analysis

Explanation:
Workload analysis means to find out the number and type of employees required to perform various jobs designed in the
organisational structure.
10.
(d) Number and types of persons required
Explanation:
Estimating manpower requirement means to find out the number and type of employees. Type here means qualification and
educational background of people to be recruited.

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11.
(d) Interest test
Explanation:
Interest tests are used to know the pattern of interests or involvement of a person.

12. (a) (a) - (ii), (b) - (i), (c) - (iii)

Explanation:
(a) - (ii), (b) - (i), (c) - (iii)
13.
(d) Workload analysis
Explanation:
Workload analysis enables an assessment of the number and types of human resources necessary for the performance of various
jobs and the accomplishment of organisational objectives.

14. (a) Demotion

Explanation:
Demotion
It is opposite of promotion
15.

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(d) All of these
Explanation:
All of these
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16.
(c) All of these
ve
Explanation:
All of the above are included in psychological test
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17. (a) Option (d)

Explanation:
All of these
By

18. (a) Recruitment

Explanation:
Recruitment refers to searching for suitable candidates for the various job positions to be filled up from time to time in the
organization. It is the process of finding and attracting suitable applicants for employment.
19. (a) Intelligence test
Explanation:
An intelligence test is an indicator of a person’s learning ability or the ability to make decisions and judgments.
20.
(d) Staffing
Explanation:
Staffing is a part of human resource management. It is the process of filling vacant position by appointing the right personnel.

21. (a) Both A and R are true and R is the correct explanation of A.
Explanation:
Both A and R are true and R is the correct explanation of A.
22.
(d) A is false but R is true.
Explanation:
A is false but R is true.

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23.
(d) A is false but R is true.
Explanation:
A is false but R is true.

24.
(b) Organisational climate
Explanation:
Organisational climate

25. (a) Autocratic

Explanation:
Autocratic: An autocratic leader gives orders and expects his subordinates to obey these orders. The leader does not change or
wish to be contradicted in his decisions.
26. (a) Planning
Explanation:
The process of directing involves guiding, coaching, instructing, motivating, leading the people in an organization to achieve
organizational objectives. Elements of directing are supervision, motivation, leadership & communication.

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27.
(b) 1943 kS
Explanation:
Abraham Maslow, a well-known psychologist in a classic paper published in 1943, outlined the elements of a theory known as
Maslow's Need Hierarchy Theory of Motivation.
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28. (a) Loss by transmission and poor retention
Explanation:
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Loss by transmission and poor retention is a type of psychological barrier.

29.
(c) Perquisites
Explanation:
By

Perquisites

30.
(b) Directing
Explanation:
Directing

31.
(b) Communication
Explanation:
Communication is the sum of all things one person does when he wants to create understanding in the mind of another. All the
other options are the element of communication.

32.
(d) Upward (Formal) communication
Explanation:
Upward (Formal) communication

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33.
(c) Organizational
Explanation:
In an organization where there is more number of managerial levels, communication gets delayed and distorted as the number
of filtering points are more.

34.
(c) Consultation
Explanation:
Consultation is a process where the manager will encourage the employees to participate in decision making. Manager respects
other people's opinion and takes decision after proper consultation.

35.
(d) Supervision
Explanation:
Elements of directing are supervision, leadership, motivation and communication.

36.
(b) Motive

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Explanation:
A motive is an inner state that energises, activates or moves and directs behaviour towards goals. Motives arise out of the needs
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of individuals. Realisation of a motive causes restlessness in the individual which prompts some action to reduce such
restlessness.

37.
ve
(d) Motivation
Explanation:
Motivation means incitement or inducement to act or move. It is a process of making subordinates to act in a desired manner to
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achieve certain organizational goals.

38.
By

(c) Abraham Maslow

Explanation:
Hierarchy Theory of Motivation was given by Abraham Maslow.

39.
(b) only i
Explanation:
Influencing the behaviour of others. Leadership is the process of influencing people to strive willingly for group objectives.

40.
(b) Informal
Explanation:
Interaction among people at work gives rise to a network of social relationships among employees and is called informal
communication. Informal interaction among employees builds better human relationships.

41.
(c) Supervision
Explanation:
The supervisor ensures the performance of work according to the targets set. He takes responsibility for the achievement of
tasks and motivates his workers effectively.

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42.
(b) only iii
Explanation:
Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards the achievement of
organizational goals. It does not influences the leader's own behaviour.

43.
(c) Infosys
Explanation:
In 1981, Narayana Murthy founded Infosys, a global software consulting company headquartered in Bangalore.

44.
(b) Democratic leadership
Explanation:
Democratic leadership is the style of leadership in which the superior uses file forces from within the groups in order to
establish control.

45.

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(c) Communication
Explanation:
Communication
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46.
(c) All of these
ve
Explanation:
Termination, Demotion and Suspension are all signs of negative motivation as they impact a person's Security needs. They
hamper employee's morale and lowers the efficiency levels.
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47. (a) Directing helps in estimating manpower requirements for the organization.
Explanation:
By

Directing helps in estimating manpower requirements for the organization.

48.
(d) Personal barrier
Explanation:
If there is no motivation or incentive for communication, subordinates may not take initiative to communicate. This limitation
falls under personal barrier category.

49.
(b) Both A and R are true but R is not the correct explanation of A.
Explanation:
Both A and R are true but R is not the correct explanation of A.

50. (a) Both A and R are true and R is the correct explanation of A.
Explanation:
Both A and R are true and R is the correct explanation of A.
51.
(b) Both A and R are true but R is not the correct explanation of A.
Explanation:
Supervisor acts as a link between workers and management. He conveys management ideas to the workers on one hand and
workers problems to the management on the other. This role played by supervisor helps to avoid misunderstandings and

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 conflicts between management and workers/employees.

52. (a) Taking corrective action

Explanation:
Taking corrective action
53. (a) Controlling is expensive
Explanation:
The process of controlling starts from planning and ends with taking corrective steps in the direction of deviations identified.
But, the process is expensive in terms of time spent and the expenditure incurred on the technology used or technique adopted.
54.
(c) Assignment of duties
Explanation:
Assignment of duties

55.
(c) Flexible
Explanation:
Standards are the criteria against which actual performance would be measured. It is important enough that standards should be
flexible enough to be modified whenever required, because of the changes taking place in the internal and external business

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environment.

56.
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(d) When the standards have been set
Explanation:
Standards are the criteria against which actual performance would be measured. Standards serve as benchmarks towards which
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an organization strives to work.
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57.
(c) only iv
Explanation:
The clarity in a working relationship is a part of Organising, not Controlling.
By

58.
(c) significant deviation
Explanation:
Management by exception is an important principle of management control based on the belief that an attempt to control
everything results in controlling nothing. Only significant deviation which goes beyond the permissible limit should be brought
to the notice of management.

59. (a) both forward and backwards-looking

Explanation:
Planning based on facts makes controlling easier and effective. controlling improves future planning by providing information
derived from past experience. This way, controlling is both forward and backwards-looking.
60.
(c) All of these
Explanation:
When the control system is effective, it automatically helps in boosting employees morale, when the objective is achieved.

61.
(c) Positive Deviation
Explanation:

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 The third step in controlling is comparing the actual performance against the set standard of a particular task. When the actual
raises above the mark of the set standard then such a deviation is called positive deviation.

62. (a) Both qualitative and quantitative terms

Explanation:
Standards can be set in both qualitative and quantitative terms.
63.
(d) only ii
Explanation:
Establishing a reporting relationship is not a step in the process of controlling. The other 3 options are the steps involved in the
process of controlling.

64. (a) Results

Explanation:
Controlling is a goal-oriented function. The controlling function measures progress towards the organization goals and bring to
light the deviations, if any and indicate corrective action. Controlling helps the organization to achieve desired results.
65. (a) Quality and Quantity
Explanation:
Quality and quantity standards are used to measure performance.

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66.
(b) Sale expenses kS
Explanation:
Sale expenses come under Marketing standard.
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67. Read the text carefully and answer the questions:
Rajat Kumar, the CEO of Bhagat Hospitals, a leading chain of hospitals, decided to reward the good work of the doctors of this
organization. For this he instituted two running trophies. A 'Healthcare Achievers Trophy' to acknowledge and appreciate the
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tireless efforts of the doctors who rendered selfless services to the patients and another 'Beti Bachao Trophy' to recognize the
outstanding work done by the doctors in saving the girl child. The CEO also wanted to improve the health services in rural areas
all over the country. He decided that all doctors must work in rural areas for at least six months. He also decided that the
paramedical staff should be employed locally.
By

(i) (a) Directing

Explanation:
Directing
(ii) (c) Motivation
Explanation:
Motivation
(iii) (c) Employee recognition programmes
Explanation:
Employee recognition programmes
(iv) (d) Esteem Needs
Explanation:
Esteem Needs
68. Read the text carefully and answer the questions:
Mrs. Ambika Lamba founded 'Professional University' for undergraduate and postgraduate courses in diverse disciplines. The
University is among the top universities of India and has a tie-up with many other organizations which visit the campus annually
in order to hire its future employees during its placement season and offer handsome salary packages. On the basis of the
reputation and performance of its students performance in the practical world, the Information Technology department of the Lalit
Power Ltd., had few vacancies related to Cyber Security. The Human Resource Department of the company decided to recruit
fresh engineering graduates from 'Professional University' for the same after they received certain recommendations from other
industry players about the institution. For this purpose, they conducted 'employment interviews' of many engineering graduates

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who applied and were keen to join their company. There were five vacant positions which were duly filled after the company
undertook approximately 60 employment interviews. Thus, they gave a 'job offer' to the final five students who cleared all the
steps they undertook in order to fill the vacancies. They also decided to hire a Chartered Accountant for their Finance and
Accounts department. For this the company plans to undertake a series of steps in order to ensure that a person with sound
knowledge and experience is selected. They finally hired Satnam who worked only for four months and left the company citing
his inability to continue further on account of not having adequate experience to handle huge projects. This proved costly for the
Finance and Accounts department of Lalit Power Ltd. and they realized that they went wrong in the initial step to select the
candidate. Thus, they had to conduct the whole process again in order to select a new Chartered Accountant.
(i) (c) Campus Recruitment
Explanation:
Colleges and institutes of management and technology have become a popular source of recruitment for technical,
professional and managerial jobs. Many big organisations maintain a close liaison with the universities, vocational
schools and management institutes to recruit qualified personnel for various jobs.
(ii) (a) Preliminary Screening
Explanation:
Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the information supplied
in the application forms. Preliminary interviews help reject misfits for reasons, which did not appear in the
application forms.
(iii) (d) To evaluate the applicant's suitability for the job.

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Explanation:
To evaluate the applicant's suitability for the job.
(iv) (d) All of these
Explanation:
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All of these.
(v) (b) External Recruitment
ve
Explanation:
Here, company has used External Recruitment.
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By

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