Organization of Commerce and Management - Standard XII

Vocabulary-style flashcards covering the key concepts, management principles, financial services, and marketing theories from the Standard XII Organisation of Commerce and Management text.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behaviour or for a chain of reasoning.

Division of Work

The practice of dividing work into technical, financial, and managerial tasks and assigning it to employees based on their capabilities to improve efficiency.

Scalar Chain

The hierarchy of authority from the top level to the lower level established for the purpose of communication.

Gang Plank

A system of direct communication used in emergency situations to avoid the longer scalar chain and take speedy decisions, requires permission from authorities.

Father of Modern Management

The title given to Henry Fayol ($1841$-$1925$) due to his contribution in development of managerial thoughts.

Scientific Management

Per Fredrick Taylor, it consists of knowing exactly what you want men to do and seeing that they do it in the best and cheapest manner.

Rule of Thumb

Decisions based on the personal judgments of the manager; Taylor advocated replacing this with methods developed through scientific analysis.

Mental Revolution

A principle focusing on the change in attitude of employees and management towards each other to realize their equal importance in the organization.

Time Study

The technique of observing and recording the time taken by an employee to complete a task to fix standard time and measure efficiency.

Fatigue Study

The study of physical and mental stress resulting from long hours or poor conditions to maintain operational efficiency of employees.

Differential Piece-Rate Wage Plan

A system where higher rates are offered to employees completing more than standard output, and lower rates to those performing below standard.

Planning

The process of deciding in advance what to do, how to do it, when to do it, and who is to do it, bridging the gap from where we are to where we want to go.

POSDCORB

A keyword for management functions where P stands for Planning, O for Organizing, S for Staffing, D for Directing, Co for Co-ordination, R for reporting, and B for Budgeting.

Staffing

The process of attracting, recruiting, selecting, placing, and retaining the best workforce, often described as 'Right person at right job with right pay'.

Directing

The soul of management function, involving instructing, guiding, inspiring, and motivating employees to achieve predetermined goals.

Co-ordinating

The integration and synchronization of group efforts to provide unity of action for organizational objectives, termed as the 'Plus-value of the group'.

Controlling

A function of comparing actual performance with predetermined standard performance, measuring deviation, and suggesting corrective measures.

Entrepreneur

Derived from the French verb 'entreprendre', it refers to a person who starts a business and is willing to risk loss in order to make money.

Intrapreneur

An employee with the authority and support of their company to implement innovative ideas without investing personal capital or taking personal financial risk.

Start-up India

A Government of India initiative launched in $2016$ that defines an entity as having headquarters in India, opened less than $10$ years ago, with an annual turnover less than $100$ crores.

Agro-tourism

A commercial enterprise at a working farm, ranch, or agricultural plant conducted for the enjoyment of visitors that generates supplement income for the owner.

Business Services

Intangible, heterogeneous, inseparable, and perishable activities that help in the successful and seamless running of a business.

Commercial Bank

A bank that performs primary functions of accepting deposits and lending money, and secondary functions like agency and utility services.

RTGS

Real Time Gross Settlement; a fund transfer system where transactions are settled as soon as they are processed on a one-to-one basis with a minimum amount of $2$ lacs.

NEFT

National Electronic Fund Transfer; a system where funds are transferred electronically in half-hourly settlement batches on a deferred net basis.

Policy

The statement of contract between the insured and insurer containing the terms and conditions of the insurance contract.

Principle of Indemnity

A guarantee to put the insured in the same financial position they were in immediately prior to the happening of an uncertain event; not applicable to life insurance.

Principle of Subrogation

The principle that after the insured is fully compensated for a loss, the right of ownership of the damaged property passes to the insurer.

Principle of Causa-Proxima

The rule that when a loss is caused by multiple factors, the nearest or most direct cause is considered to decide the insurer's liability.

Warehousing

A group of activities connected with the storage and preservation of goods from the time of production until the time of consumption.

E-business

The administration of conducting business via the internet, including buying, selling, and technical/customer support.

B2C

Business to Consumer; transactions between business firms and their customers, such as marketing, product information, and home delivery.

C2C

Consumer to Consumer; electronically facilitated transactions between consumers through a third-party intermediary, such as online auctions.

Outsourcing

The process of contracting a business function or specific non-core activity to specialized agencies to reduce costs and use expertise.

BPO

Business Process Outsourcing; a subset of outsourcing involving the contracting of operations and responsibilities for specific business processes to a third-party provider.

KPO

Knowledge Process Outsourcing; the allocation of high-level tasks to an outside organization requiring advanced analytical, technical, and specialist expertise.

LPO

Legal Process Outsourcing; practice where a firm or corporation obtains legal support services (research, drafting) from an outside service company.

Social Responsibility of Business

The obligation of management to protect the interests of society and avoid harm while pursuing objectives and values.

Trusteeship

A socioeconomic philosophy propounded by Mahatma Gandhi where wealthy people act as trustees of trusts that look after the welfare of the general public.

Business Ethics

A code of conduct that businesses are expected to follow, distinguishing between right and wrong, good and bad, or fair and unfair actions.

CSR

Corporate Social Responsibility; a self-regulating business model mandated per Section $135$ of the Companies Act, $2013$, requiring companies to spend at least $21$ of average net profits on social causes.

Consumer Protection

Measures aimed at safeguarding the rights and interests of consumers against fraudulent, unethical, or monopolistic trade practices.

Right to Safety

The consumer right to be protected against products and production processes that are hazardous to health or life.

Right to Redress

The right of consumers to fair settlement of claims, including demand for repair, replacement, or compensation for defective goods.

District Commission

A consumer dispute redressal commission at the district level that handles complaints where the value of goods or services does not exceed $1$ crore.

State Commission

A consumer dispute redressal forum at the state level dealing with complaints between $1$ crore and $10$ crores in value.

National Commission

The apex consumer dispute redressal forum at the national level for complaints where the value of goods or services exceeds $10$ crores.

Market

Derived from the Latin 'mercatus', it refers to the place or process where buyers and sellers involve in the transaction of goods and services for money.

Monopoly

A market situation where a single producer or seller controls the market with no close substitutes for the product.

Oligopoly

A market situation where there are only a few sellers producing and selling either homogeneous or differentiated products.

Marketing Mix

The combination of the $4$ Ps (Product, Price, Place, Promotion) for goods and an additional $3$ Ps (People, Process, Physical Environment) for services.