CBSE Class 12 Business Studies 2017 Outside Delhi set 3

© examsnet.com
Question : 1
Total: 6
Explain briefly 'Remuneration of Employees' and 'Scalar Chain' as principles of general management.
Solution:  
(a) Remuneration of Employees: Remuneration refers to the salaries and wages which are paid to the employees, so that they can work efficiently and effectively. It also helps in motivating the employees.Remuneration of employees should be just and equitable so as to give maximum sctisfaction to both employees and employers.
The employees should be paid fair wages/ salaries, which would give them at least reasonable standard of living. At the same time, it should be within the paying capacity of the company.
This will ensure good relations between workers and management.
(b) Scalar Chain: It refers to chain to authority and communication that runs from top to bottom and should be followed by the managers and the subordinates.
The concept of scalar chain can be easily understood with the help of the following diagram:

In the given diagram under A there are two lines of authority one is BCDE and another is LMNO. If ' O ' want to communicate with E, he has to follow the chain i. e. ONMLABCDE .
However, in case of emergency O can directly contact with E through gang plank.
© examsnet.com
Go to Question: