Business Organisation and Management
BCOC 132 Free Solved Assignment
BCOC 132 Free Solved Assignment Jan 2022
Q.1 What is technological innovation? Explain the various types of innovation.?
ANS- Technological innovation is the economic function through which new technologies are introduced into production and consumption.
It entails recognizing new technological possibilities, organizing the human and financial resources needed to transform them into useful products and processes, and sustaining the requisite activities.
It is important because technological advances have played a key role in facilitating radically improved standards of living. Innovation is said to be endogenous; i.e., it is responsive to changes in demand and supply conditions.
A simple model distinguishing demand-pull from technology-push innovations is presented.
Innovators are usually unable to capture all of the incremental economic benefits their contributions yield, which can lead to incentive failures characterized as ‘the appropriability problem.’ BCOC 132 Free Solved Assignment
Innovative activities also entail high risks of technological failure and (especially) the misperception of market demands.
To cope with these problems, policies such as the patent system and institutions such as high-technology venture capital markets have evolved.
Types of innovation
1. Incremental Innovation- Incremental Innovation is the most common form of innovation.
It utilizes your existing technology and increases value to the customer (features, design changes, etc.) within your existing market.
Almost all companies engage in incremental innovation in one form or another.
Examples include adding new features to existing products or services or even removing features (value through simplification). Even small updates to user experience can add value.
2.Disruptive Innovation- Disruptive innovation, also known as stealth innovation, involves applying new technology or processes to your company’s current market.
It is stealthy in nature since newer tech will often be inferior to existing market technology.
This newer technology is often more expensive, has fewer features, is harder to use, and is not as aesthetically pleasing. BCOC 132 Free Solved Assignment
It is only after a few iterations that the newer tech surpasses the old and disrupts all existing companies.
By then, it might be too late for the established companies to quickly compete with the newer technology.
3. Architectural Innovation:- Architectural innovation is simply taking the lessons, skills and overall technology and applying them within a different market.
This innovation is amazing at increasing new customers as long as the new market is receptive.
Most of the time, the risk involved in architectural innovation is low due to the reliance and reintroduction of proven technology. Though most of the time it requires tweaking to match the requirements of the new market
4.Radical innovation :- Radical innovation is what we think of mostly when considering innovation. It gives birth to new industries (or swallows existing ones) and involves creating revolutionary technology.BCOC 132 Free Solved Assignment
The airplane, for example, was not the first mode of transportation, but it is revolutionary as it allowed commercialized air travel to develop and prosper.
Q.2 Explain the features of an ideal form of business organisation. Which form can be considered to be an ideal in all respects?
ANS- Some features of an ideal form of business organisation are:-
1.Easy to Form: A form of organisation requiring minimum formalities in starting it will be an ideal form of organisation.
An organisation requiring too much time in establishing a business will not be preferred. The passage of time will result in escalation of costs and loss of profit.
2. Scope for Raising Finances :-An ideal organisation is one which helps the enterprise to raise funds as per its requirements. If more funds are required then outsiders will have to be approached.
The cost of raising the funds should also be taken into account. The funds should not dilute the control of business from the owners.
There should be a scope for raising funds for expansion and developmental purposes at a later time.BCOC 132 Free Solved Assignment
3. Continuity:- An ideal form of organisation should ensure the continuity of the business. A business can ensure profitability and growth only if it continues to work uninterruptedly.
The change in managerial personnel or any other factor should not affect the working of the business.
4. Maintaining Secrecy:- The secrets of a business should be closely guarded. It is essential for the success of the business. The form of organisation should be such which can ensure the guarding of business secrets.
5. Tax Burden:- This is another factor which is taken into account while selecting a form of organisation. That form of organisation will be preferred in which tax burden is low.
6. Extent of Risk and Liability:An element of risk is present in every type of business. It is only the degree which differs. In a competitive world every producer tries to capture market for his product.
The rapid changes in technology are influencing the method of production. The consumer preferences are also changing every time.
Q.3 What do you mean by span of control? Discuss factors affecting span of control
ANS- The concept of “Span of Control“, which is also known as the management ratio, refers to the number of direct subordinates directly controlled by a superior.
This is a particularly important concept to understand small business owners because small businesses often get into trouble when the founder ends with too much control.
So, the Span of control means the number of subordinates, which one can better manage (manager or administrator) effectively. Every superior person can supervise a limited number of subordinates (employees).BCOC 132 Free Solved Assignment
Therefore, every superior should be given the right to handle only some subordinates or be given.
It is important to keep in mind that all manager experiences a decrease in effectiveness because their period of control is greater than the optimum level.
In other words, the limitations contained during the period of control are not the lack of some individual managers, but rather the managers generally.
Apart from this, it is important to understand that the duration of control refers only to direct reports, instead of a complete corporate hierarchy.
Even though a CEO can technically control hundreds of employees, the duration of his control will include only the head or functional manager of the department who directly reported to the CEO.
“When a sufficient level of the hierarchy is given, any manager can indirectly control any person,” said Hendrick.BCOC 132 Free Solved Assignment
“But when it comes to direct reports, then the theory (period of control) entrepreneurs should respect the innate boundaries of managers.”
Factors affecting span of control :-
Nature of work: It is the nature of work which decides the span of control, if the work is simple and repetitive and being done by experienced worker the span of control can be wide.
But if it is a quality oriented work narrow span of control is needed.
Ability of the manager: Ability of the manager especially the availability of time with the manager decides the span of control. Very able manager may have a wide span a less experienced manager a narrow span of control.
Efficiency of the organization: Organization with a effective and efficient working system and skilled employees can have a large span of control.
Staff assistants: If managers have staff assistants and they can handle routine work, the managers may have a wide span of control.
Ability of the subordinates: Skilled, experienced and sincere workers hardly need much supervision and can even work without effective supervision hence provide for large span of control. BCOC 132 Free Solved Assignment
Fresher or unskilled or semi-skilled workers need a close supervision and hence a narrow span of control.
Q.4 What is the meaning of lease financing? Explain its advantages and limitations.
ANS:- A lease can be defined as an arrangement between the lessor (owner of the asset) and the lessee (user of the asset) whereby the lessor purchases an asset for the lessee and allows him to use it in exchange for periodical payments called lease rentals or minimum lease payments (MLP).
Leasing is beneficial to both the parties for availing tax benefits or doing tax planning. At the conclusion of the lease period,
the asset goes back to the lessor (the owner) in an absence of any other provision in the contract regarding compulsory buying of the asset by the lessee (the user).
There are four different things possible post-termination of the lease agreement. A famous quote by Donald B. Grant says, “Why own a cow when the milk is so cheap? All you really need is milk and not the cow.” The concept of Lease is influenced by this quote.
We can compare ‘milk’ with the ‘rights to use an asset’ and ‘cow’ with the ‘asset’ itself.
Ultimately, a person who wants to manufacture a product using machinery can get to use that machinery under a leasing arrangement without owning it
Advantages of Leasing:- BCOC 132 Free Solved Assignment
1.Balanced Cash Outflow – The biggest advantage of leasing is that cash outflow or payments related to leasing are spread out over several years, hence saving the burden of one-time significant cash payments.
This helps a business to maintain a steady cash-flow profile.
2. Quality Assets – While leasing an asset, the ownership of the asset still lies with the lessor whereas the lessee just pays the rental expense.
Given this agreement, it becomes plausible for a business to invest in good quality assets which might look unaffordable or expensive otherwise.
3. Better Usage of Capital- Given that a company chooses to lease over investing in an asset by purchasing, it releases capital for the business to fund its other capital needs or to save money for a better capital investment decision.
4. Tax Benefit – Leasing expense or lease payments are considered as operating expenses, and hence, of interest, are tax-deductible. BCOC 132 Free Solved Assignment
Disadvantages of Leasing:-
1. Lease Expenses- Lease payments are treated as expenses rather than as equity payments towards an asset.
2. Reduced Return for Equity Holders- Given that lease expenses reduce the net income without any appreciation in value, it means limited returns or reduced returns for an equity shareholder.
In such a case, the objective of wealth maximization for shareholders is not achieved.
3. Debt- Although a lease doesn’t appear on the balance sheet of a company, investors still consider a long-term leases as debt and adjust their valuation of a business to include leases.
4. Limited Access to Other Loans- Given that investors treat long-term leases as debt, it might become difficult for a business to tap capital markets and raise further loans or other forms of debt from the market. BCOC 132 Free Solved Assignment
Q.5 What is wealth maximization? Why is wealth maximisation preferred over profit maximisation?
ANS- Wealth maximization is a modern approach to financial management. Maximization of profit used to be the main aim of a business and financial management till the concept of wealth maximization came into being.
It is a superior goal compared to profit maximization as it takes broader arena into consideration.
Wealth or Value of a business is defined as the market price of the capital invested by shareholders.
It simply means maximization of shareholder’s wealth. It is a combination of two words viz. wealth and maximization. A wealth of a
shareholder maximizes when the net worth of a company maximizes.
To be even more meticulous, a shareholder holds share in the company/business and his wealth will improve if the share price in the market increases which in turn is a function of net worth. BCOC 132 Free Solved Assignment
This is because wealth maximization is also known as net worth maximization. Finance managers are the agents of shareholders and their job is to look after the interest of the shareholders.
The objective of any shareholder or investor would be a good return on their capital and safety of their capital. Both these objectives are well served by wealth maximization as a decision criterion for business.
Wealth maximisation is preferred over profit maximisation because,
1. Wealth maximisation is based on the cash flows into the organization but, profit maximisation is based on the increase in sales and accounting profits of the organization.
2. Wealth maximisation considers the time value of money but, profit maximisation ignores the time value of money.
3. In wealth maximisation the concept is defined precisely but, in profit maximisation the concept of profit lacks clarity, profit is neither defined nor precisely corrected.
4. Companies of wealth maximisation bring new innovative products and services to consumers but, companies of profit maximisation stick to the same product line without modification and degradation. BCOC 132 Free Solved Assignment
5. The aim of wealth maximization is to produce quality products at a low cost but, in profit maximization quality of the product may not be maintained.
6. Wealth maximisation serves the interests of suppliers, financers, employees, management, consumers and society but, profit maximisation leads to exploitation of employees and consumers.
Q.6 “A manager can be more effective if he is a good leader.” Comment
ANS- Effective management has always been a key part of working life for employees. If sufficient management is lacking, it is easy for teams to lose motivation, enthusiasm, and productivity, which can lead to professionals seeking new opportunities.
The relationship between a manager and their reports has a direct impact on the morale and success of the team.
To become an effective manager, he should follow these:-
1.A Manager should communicate clearly– When leaders are good communicators, they are better able to manage their teams.
The delegation of tasks, conflict management, motivation, and relationship building (all key responsibilities of any manager) are all much easier when you are a strong communicator.
2. Must have the ability to listen and understand- As a manager, a key part of the role is to provide support to employees working within a team.
The ability to listen and understand the wants, needs, and concerns of your team, and the individuals who report into you, forms an important part of your responsibilities.
Everyone within a team should feel that they have a voice and that their opinion will be listened to. BCOC 132 Free Solved Assignment
Ability to make decisions- A Manager should have The ability to give clear direction to a team and make key decisions can set a good manager apart from a mediocre one.
The inability to make decisions can be indicative of a poor manager and can lead to a lack of confidence within a team.
4. A Manager must show some trust to the employees- Employees that feel trusted are better placed to achieve their potential and are given an incentive to ensure that they perform well.
In a team, it’s important to build mutual trust between line managers and team members, as this will enable delegation to happen more effectively.
5.He must set a good example- Employees are looking for a leader that they can look up to and, down the line, emulate. However, for employees to buy into the direction of their manager, they need to respect them professionally.
By setting a good example, proving skills and knowledge, and being a high achiever, a manager can gain the professional respect of their employees and ensure that they have the backing of the team.
6.He should protect the team like a good leader does– As a leader, it falls on you to take responsibility for the success and failures of their team.
However, a good leader shares the successes and absorbs the failures. Empowering the team to drive for success and sharing any wins is an important trait.
More importantly, is taking responsibility when mistakes are made and team goals are not met. Leading from the front. BCOC 132 Free Solved Assignment
Showing the team that you are willing to step in for them when things get tough is all part of effective management.
Q.7 Distinguish between equity shares and preference shares
|BASIS OF COMPARISON||EQUITY SHARES||PREFERENCE SHARES|
|Meaning||Equity shares are the ordinary shares of the company representing the part ownership of the shareholder in the company||Preference shares are the shares that carry preferential rights on the matters of payment of dividends and repayment of capital|
|Payment of dividend||The dividend is paid after the payment of all liabilities.||Priority in payment of dividend over equity shareholders|
|Repayment of capital||In the event of the winding-up of the company, equity shares are repaid at the end.||In the event of the winding up of the company, preference shares are repaid before equity shares.|
|Rate of dividend||Fluctuating||Fixed|
|Voting rights||Equity shares carry voting rights||Normally, preference shares do not carry voting rights. However, in special circumstances, they get voting rights.|
Q.8 Write a short note on job enrichment.
ANS- It simply means, adding a few more motivators to a job to make it more rewarding. A job is enriched when the nature of the job is made more exciting, challenging and creative or gives the job holder more decision making, planning and controlling powers.
According to Beatty and Schneider, “Job enrichment is a motivational technique which emphasizes the need for challenging and interesting work.
It suggests that jobs be redesigned so that intrinsic satisfaction is derived from doing the job. BCOC 132 Free Solved Assignment
In its best applications, it leads to a vertically enhanced job by adding functions from other organizational levels, making it contain more variety and challenge and offer autonomy and pride to the employee.
Job enrichment is thus, an important practice in meeting “whole man” needs. It represents a new and popular nonmonetary motivational technique.
It applies to improvement of job in such a way that it has more motivators than before and at the same time maintaining the degree of maintenance factors.
(i) Give sufficient freedom to the employees in deciding about work methods, pace, sequence etc.
(ii) Increase responsibility.
(iii) Encourage participation.
(iv) Provide feedback to the employees.
(v) Make the personnel understand how tasks contribute to a finished product of the enterprise.
(vi) Give adequate benefits to the employees. Management should provide extrinsic and intrinsic rewards to the employees depending upon their motivational patterns.
(vii) Management should provide adequate welfare measures to the employees. People should perceive that management is sincere and caring about them.
Q.9 “None of the four forms of business organisations has all the features of an ideal form of organisation.” Comment.
ANS- Yes, none of the four form of organisations has all the features of an ideal form of organisation. So we made an comparision chart of all four form of organisation with that of ideal form of organisation BCOC 132 Free Solved Assignment
|Sole proprietorship form of business||Family business form of organisation||Partnership form of business organisation||Cooperative societies form of business organisation||Joint company form of business||Ideal form of business organisation|
|Formation and closure||Formation||Formation||Voluntary membership||Artificial person||Easy to form|
|Liability||Liability||Liability||Legal status||Separate Entity||Scope for raising|
|Sole risk bearer and profit recipient||control||Risk factor||Limited Liability||Formation||Extend of risk liability|
|Control.||Continuity||Decision of making & control||Control||Succession||Scope for control|
|No separate entity||Minor members||Continuity||Service Motive||Control||Continuity|
|Lack of business continuity||Number of partners||Common seal||Maintaining Secrecy|
Q.10 Enumerate the principal characteristics of managerial leadership.
ANS- The principal characteristics of managerial leadership are:-
Leadership is a process of Influence: Influence is the ability of an individual to change the behaviour, attitude, and belief of another individual directly or indirectly.
Someone has rightly defined leaderships as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task”
2. Leadership is not one-dimensional: The Essence of leadership is Followership. Leadership is a system thinking in multiple dimensions.
In terms of systems thinking, the organizational performers (followers) are must in the leadership process. Without followers, there can be no leadership.
Leadership is Multi-faceted: Leadership is a combination of personality and tangible skills (drive, integrity, self-confidence, attractive personality, decisiveness, etc),
styles (Authoritarian to laissez-faire), and situational factors (organisation’s internal and external environment, objectives, tasks, resources, and cultural values of leaders and the followers). BCOC 132 Free Solved Assignment
Leadership is Goal-oriented: Leadership is “organizing a group of people to achieve a common goal.” Thus, the influence concerns the goals only. Outside the goals, the concerns are not related to leadership.
5. Leadership is not primarily a Particular Personality Trait: A trait closely linked to leadership is charisma, but many people who have charisma (for example, movie actors and sports heroes) are not leaders
Leadership is not primarily a Formal Position: There have been many great leaders who did not hold high positions—for example, Mahatma Gandhi, Martin Luther King, Jr. and—and Anna Hazare.
On the other hand there are people who hold high positions but are not leaders.
Q.11 What are the most common barriers to effective communication?
ANS- The most common barriers to effective communication are:-
• The use of jargon. Over-complicated, unfamiliar and/or technical terms.
• Emotional barriers and taboos. Some people may find it difficult to express their emotions and some topics may be completely ‘off-limits’ or taboo.
Taboo or difficult topics may include, but are not limited to, politics, religion, disabilities (mental and physical), sexuality and sex, racism and any opinion that may be seen as unpopular. BCOC 132 Free Solved Assignment
• Lack of attention, interest, distractions, or irrelevance to the receiver.
• Differences in perception and viewpoint.
• Physical disabilities such as hearing problems or speech difficulties
• Physical barriers to non-verbal communication. Not being able to see the non-verbal cues, gestures, posture and general body language can make communication less effective.
Phone calls, text messages and other communication methods that rely on technology are often less effective than face-to-face communication.
• Language differences and the difficulty in understanding unfamiliar accents.
• Expectations and prejudices which may lead to false assumptions or stereotyping. People often hear what they expect to hear rather than what is actually said and jump to incorrect conclusions.
• Cultural differences. The norms of social interaction vary greatly in different cultures, as do the way in which emotions are expressed. BCOC 132 Free Solved Assignment
For example, the concept of personal space varies between cultures and between different social settings.
Q.12 Distinguish between outsourcing and off shoring.
|BASIS FOR COMPARISON||OUTSOURCING||OFFSHORING|
|1. MEANING||Outsourcing is the assignment of business peripheral operations to an external organization||offshoring refers to the relocation of business processes in a different country|
|2. WHAT IT IMPLY?||Shifting operations to the third party||Shifting activities or offices|
|3. OBJECTIVE||Focus on core business activities.||lower labour cost.|
|4. FUNCTION PERFORMED||Non-employees||Employees of the organization|
|5. LOCATION||Within or outside the country||Outside the country|
Q.13 Distinguish between marketing concept and societal concept.
ANS- BCOC 132 Free Solved Assignment
|MARKETING CONCEPT||SOCIETAL CONCEPT|
|To maximize consumer satisfaction.||To maximize long-term interest and welfare of consumers and society.|
|Consumers will buy If they are satisfied.||Consumers will buy if they are satisfied with protection of long-term interest|
|Normally two-way.||Actively two-way.|
|Produce what you can sell.||Produce what you can sell but with protecting long-term interest of consumers and society.|
|It is the modern concept.||It is the latest concept.|
|Scope is wide.||Scope is wider or comprehensive.|
|Find out needs and wants of the target market and satisfy them more effectively than competitors.||Find out needs and wants of target market and satisfy them in a way that consumers’ and social interest and welfare are protected.|
|Probably two-way Seller and probably buyers are benefited.||Three-way benefits. Consumers, seller, and society are benefited.|
|Maximum profit with maximum consumer satisfaction.||Reasonable profit with protection of consumers’ interest and social welfare.|
|No guarantee.||There is guarantee for moral justice.|
|It starts with market or consumers.||It stars with consumers and society|
|It follows only integrated approach.||It follows Integrated as well as the relationship approach.|
|The target is only market.||The target is market as well as the entire society.|
Q.14 Write a short note on employee engagement.
Ans- Employee engagement is a human resources (HR) concept that describes the level of enthusiasm and dedication a worker feels toward their job.
Engaged employees care about their work and about the performance of the company, and feel that their efforts make a difference.
An engaged employee is in it for more than a paycheck and may consider their wellbeing linked to their performance, and thus instrumental to their company’s success.
Employee engagement can be critical to a company’s success, given its clear links to job satisfaction and employee morale. BCOC 132 Free Solved Assignment
Communication is a critical part of creating and maintaining employee engagement. Engaged employees are more likely to be productive and higher performing.
They also often display a greater commitment to a company’s values and goals.
Employers can encourage employee engagement in many ways, including communicating expectations clearly, offering rewards and promotions for excellent work, keeping employees informed about the company’s performance, and providing regular feedback.
Other strategies include making efforts to make employees feel valued and respected, and feeling that their ideas are being heard and understood.
Engaged employees believe that their work is meaningful, believe that they are appreciated and backed by their supervisors and that they have been entrusted with the success of their company.
Employee engagement has been a considered part of management theory since the 1990s and became widely adopted in the 2000s. BCOC 132 Free Solved Assignment
While it has its detractors, mostly based on how difficult it can be to measure, employee engagement has been found to have direct links to a company’s profitability and financial health.
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