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Standard XII
Business Management
Question

'Shan Spices Ltd.' is the manufacturer of different food specific spices like Rajmaa Masala, Cholley Masala, AalooParantha Masala etc. Mr Raghav, the owner of the company has created different departments for purchase, production, marketing, finance and human resource. There are thirty employees working in the organisation. Planning is of paramount importance to the company as Mr Raghav believes that effective planning leads to achievement of organisational objectives. So in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasized on work performance which resulted in smooth functioning of the organisation.
(1) Identify and state the type of organisation mentioned in the above para.
(2) State one feature of the concept identified in part (1) as mentioned in the above para.
(3) What was the purpose behind the formulation of rules for the employees that restricted their personal communication with the employees of other departments?
(4) State two values violated by Mr. Raghav.

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Solution
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(1) Formal organization.
(2) Focus on objective and work performance.
(3) Avoidance of the emergence of an informal organization which may obstruct the fulfillment of organizational goals.
(4) Values
(i) Freedom to employees
(ii) Fulfillment of psychological social needs of employees.

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'Shan Spices Ltd.' is the manufacturer of different food specific spices like Rajmaa Masala, Cholley Masala, AalooParantha Masala etc. Mr Raghav, the owner of the company has created different departments for purchase, production, marketing, finance and human resource. There are thirty employees working in the organisation. Planning is of paramount importance to the company as Mr Raghav believes that effective planning leads to achievement of organisational objectives. So in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasized on work performance which resulted in smooth functioning of the organisation.
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(2) State one feature of the concept identified in part (1) as mentioned in the above para.
(3) What was the purpose behind the formulation of rules for the employees that restricted their personal communication with the employees of other departments?
(4) State two values violated by Mr. Raghav.
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