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Business Studies

Placement and Orientation

Bhuvan, Risha...

Question

Bhuvan, Rishabh and Piyush have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform

• Purchase of raw material

• Purchase of machinery

• Production of toys

• Arrangement of finance

• Sale of toys

• Selection of employees

In order to facilitate the work, they thought that four managers should be appointed to look after production, finance, marketing, and personnel.

(i) Identify the function of management involved in the above paragraph.

(ii) Quote the lines from the above paragraph which helps you to identify this function.

(iii) State the steps followed in this process.

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Solution

(i) Organising.

(ii) (a) 'They identified the following main activities which they have to perform'.

(b) 'In order to facilitate the work, they thought that four managers should be appointed to look after production, finance, marketing and personnel'. These lines depict the 'Identification and division of work' step of organising process.

(iii) The steps involved in organising are:

(a) Identification and division of work.

(b) Departmentalisation.

(c) Assignment of duties.

(d) Establishing reporting relationships.

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