BUSINESS STUDIES (859)

Note: The Syllabus for this Subject has not been changed.
CLASS XII

There will be two papers in the subject:

Paper I - Theory: 3 hours …… 80 marks Paper II - Project Work …… 20 marks

PAPER - I (THEORY): 80 Marks

1. Human Resource Management (iv) Staff Selection.
(i) Introduction to Human Resource Meaning and definition of staff selection;
Management. Selection procedures (preliminary
screening, application blank, selection test,
Meaning and definition of Human Resource Group discussion, final interview, medical
Management; Characteristics of Human test, reference check, final approval,
Resource Management: people oriented, placement; brief explanation and
comprehensive function, staff function, importance of each step of the selection
pervasive, challenging, continuous, procedure); distinction between recruitment
individual oriented, development oriented, and selection.
action oriented, future oriented,
interdisciplinary, art as well as science, (v) Staff Training.
young discipline; Importance of human Meaning and definition of training;
resource management. distinction between training, education and
development; types of training (induction,
(ii) Job and Manpower planning.
job, remedial, safety, promotional,
Meaning, relevance and difference between refresher- brief explanation of each.);
the following: Job Analysis, Job methods of training: on the job and off the
Specification, Job Description, Job job (vestibule, apprenticeship, internship,
Enrichment and Job Enlargement, classroom); Distinction between on the job
Manpower Estimation. and off the job training. Hindrances to
training: brief explanation. Benefits of
(iii) Staff Recruitment.
training to employer and employees.
Meaning, definition and characteristics of (vi) Staff Morale.
staff recruitment; sources of recruitment:
internal sources (promotion, transfer, ex- Meaning, definition and characteristics of
employees, recommendation by employees); staff morale; Morale Productivity Matrix
external sources (advertisements, campus (brief explanation of the four situations);
recruitment, casual callers, gate hiring, factors influencing morale (morale
depressants and stimulants: an
employment exchanges, placement agencies, understanding of how the same factor may
labour contractors). Differences between lower or boost morale); methods of raising
internal and external sources of recruitment, morale; indicators of low and high morale;
their merits and demerits; e-recruitment: advantages of high morale; disadvantages
concept, benefits and limitations; sources of of low morale.
e-recruitment: internet and intranet (their
benefits and limitations). (vii) Staff Motivation.
Meaning, definition and characteristics of
staff motivation; difference between

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 motivation and morale; importance of staff and their respective advantages and
motivation to the employer and the employee disadvantages).
; factors influencing motivation: monetary
(xi) Staff Promotion and Transfer.
and non-monetary incentives; differences
between monetary and non-monetary Staff Promotion - Meaning, definition,
incentives; Maslow’s theory of the benefits and limitations of promotion; Open
Hierarchy of Human Needs (explanation of and Closed policy of promotion (meaning
the theory with the help of the pyramid, and differences); a brief understanding of
assumptions and criticism of the theory); the concept of Dry promotion and upgrading
Herzberg’s Two-factor Theory (Motivation and distinction between the two;
and Hygiene Factors). requirements of a sound promotion policy;
(viii) Staff Remuneration. Basis of promotion: seniority, merit,
seniority-cum-merit (brief explanation of
Meaning and definition of Staff each and the advantages, disadvantages,
remuneration, Methods of wage payment – comparison between seniority basis and
Time Rate and Piece Rate System (An merit basis.)
explanation of the two systems along with
their merits, demerits and suitability, Staff Transfer: Meaning, definition and need
differences between the two); Pay Slip and for transfer; Types of transfers:
Payroll - Meaning, Differences, replacement, versatility, remedial,
Components, Specimens of both. Various production (meaning and relevance of each
staff benefits: Employee Provident Fund, type).
National Pension System, Group Insurance (xii) Staff Separation.
(medical and life), encashment of leave,
gratuity, (basic understanding only). Types Meaning of Staff separation; means of staff
of leaves (casual, medical/sick, earned / separation: Retirement (Compulsory and
privilege, maternity/ paternity, sabbatical/ Voluntary), Lay off, Retrenchment,
study, leave without pay: basic Resignation, Suspension (Meaning and
understanding only) distinction only), Dismissal: grounds for
dismissal, procedure for staff dismissal.
(ix) Staff Leadership.
Exit Interview-Meaning and importance.
Meaning and definition of staff leadership;
Distinction between Leadership and (xiii) Emerging trends in Human Resources.
Management; Leadership styles: Autocratic, Flexible Hours, Permanent part time, Work
Democratic, Laissez-Faire (brief from home, Retainership, Virtual teams,
explanation, advantages, disadvantages and Self-managing teams (SMTs) - only meaning
comparison between each style); of the above terms.
Leadership continuum (brief description);
2. Business Communication and
Situational leadership (brief description);
Correspondence
Blake & Mouton Managerial Grid (brief
explanation). (i) Business Communication
(x) Staff Appraisal. Meaning and definition of communication;
importance of communication in business,
Meaning and definition of Performance
elements of the Communication Process,
Appraisal and Potential Appraisal;
Methods of communication: Oral, Written,
Distinction between the two; Objectives and
Gestural, Visual (Meaning, advantages and
importance of Performance Appraisal,
disadvantages of all these methods),
Methods of Performance Appraisal - merit
Difference between oral and written
grading, appraisal by results, appraisal by
communication, Types of communication:
superior staff: self-appraisal; 360°
On the basis of area of operation (Internal
appraisal (brief explanation of each method
and External), on the basis of relationship

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 (Formal and Informal), on the basis of limited company and public limited
direction (Horizontal, Vertical-upwards and company.
downwards, Diagonal), Meaning,
(ii) Sources of business finance
Advantages and Disadvantages of each;
distinction between - Internal and External; A basic understanding of the following:
Formal and Informal; Horizontal and Equity and preference shares, debentures
Vertical Communication; Barriers to and bonds, retained profits, public deposits,
Communication (Semantic, Physical and loans, trade credit, discounting of bills of
Mechanical, Organisational, Socio- exchange, global depository receipt, Angel
Psychological: meaning only, detailed investors, venture capitalists, crowd
explanation not required); overcoming the funding, peer to peer funding, factoring.
barriers to communication. 4. Globalisation and recent trends in Business
(ii) Business Correspondence (i) Globalisation.
Need and functions of business Meaning, nature, opportunities and threats
correspondence. of globalization for business; brief
Business Letters understanding of how globalization has
been instrumental in transforming the
Elements and contents of various business
manner in which Business is conducted.
letters; types of letters: solicited and
unsolicited letters of application for a job, (ii) e-Business.
along with drafting of biodata; Interview Meaning, nature and importance of
letter, Offer of Appointment, Letter of
e- business to the buyer and to the seller.
resignation, Letter of enquiry, Quotation
letter, Order letter, Complaint letter, Reply (iii) Outsourcing.
to Complaint letter). Concept of outsourcing; Parties involved –
NOTE: Candidates should be able to draft the outsourcer, the outsourced and the
all of the above types of letters, using the service provider – the respective advantages
appropriate format. and disadvantages of each of the above.
Reports (iv) Types of Outsourcing.
Meaning and definition of Reports; types of Business Process Outsourcing (BPO),
reports: statutory, non- statutory, private, Knowledge Process Outsourcing (KPO),
public, informational, interpretative, and Business Legal Process Outsourcing
routine/periodic, special; brief explanation (LPO).
of each type of report; differences between Basic understanding of the above.
statutory and non-statutory, private and
public, informational and interpretative, (v) Online means of conducting business.
routine/periodic and special report. Format Business to Consumer (B2C), Consumer to
of report (report writing not required). Consumer (C2C), Business to Business
(iii) Current trends in Business Communication: (B2B), Intra Business (Intra B) and,
e-mail and video conferencing. Business to Government (B2G), Government
to Business (G2B).
Meaning and uses of e-mail and video
conferencing. Basic understanding of the above with a few
examples.
3. Business Size and Finance
(i) Various business entities.
Meaning, definition and distinction between
sole proprietorship, partnership, private

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5. Business Regulators and Intermediaries A list of suggested Projects is given below:
(i) Regulators and Intermediaries. 1. Analyse the recruitment process in any two
companies of your choice. List the loopholes if
Meaning of the terms Regulators and
any and give suggestions for improving the
Intermediaries.
process. (You may also make a comparative
(ii) Role of Regulators and Intermediaries. study of the recruitment process).
(a) Reserve Bank of India (RBI): Indian 2. Evaluate the selection process of any two firms
banks, foreign banks, Non-Banking from the corporate world and discuss their
Financial Companies (NBFC). benefits and drawbacks vis-a-vis each other.
(b) Securities and Exchange Board of India 3. Study any two business organizations (one Multi
(SEBI): stock exchanges, stock brokers, National Company and one Indian Company)
merchant bankers, depositories, mutual with regards to their Policies of Compensation
funds and credit rating agencies. (Increment policy, Incentive policy, Bonus and
reward policy, retirement benefits).
(c) Insurance Regulatory and Development
4. Study the various types of leaves made available
Authority of India (IRDA): insurance
to employees. Leaves can be considered as
companies, insurance agents and
financial cost to the organization. What other
insurance brokers.
tangible and non-tangible benefits does the
(d) Food Safety and Standards Authority of organization stand to gain from incurring this
India (FSSAI): food processors, food cost? Do the benefits justify the cost?
packers. 5. Consider any two successful business leaders.
(e) Bureau of Indian Standards (BIS): ISI Give a brief account of their leadership styles.
mark given to industrial goods, Explain the impact of their leadership styles in
consumer electrical goods, steel the achievement of the organizational goals of
manufacturers. their respective organisations.
Only a basic understanding of the roles of 6. Analyse the emerging trends in human resource
the above regulators and intermediaries. management and discuss their implementation in
India (Comparative study of five organisations).
7. Make a comparative study of any two
PAPER II – PROJECT WORK: 20 Marks E-Businesses in terms of their Nature, Size,
Candidates will be expected to have completed two Products and Services offered, Functioning and
projects from any topic covered in Theory. Policies.
8. Select any two companies and study their
The project work will be assessed by the teacher
sources of finance with respect to the amount
and a Visiting Examiner appointed locally and
procured and advantages and disadvantages of
approved by the Council.
each source of finance
Mark allocation for each Project [10 marks]: 9. Select any BPO or KPO and explain the
Overall format 1 mark outsourced functions that it performs. Discuss
the impact of outsourcing in general and
Content 4 marks specifically on the profitability of the
Findings 2 marks outsourcing organization.
10. Study any one regulator and the intermediaries
Viva-voce based on the Project 3 marks under it. Give an account of their functions and
how it helps the common man.
NOTE: No question paper for Project work will be
set by the Council.

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 SAMPLE TABLE FOR PROJECT WORK

S. Unique PROJECT 1 PROJECT 2 TOTAL

No. Identification MARKS
Number
(Unique ID) A B C D E F G H I J
of the
Teacher Visiting Average Viva- Total Teacher Visiting Average Viva- Total (E + J)
candidate
Examiner Marks Voce by Marks Examiner Marks Voce by Marks
Visiting Visiting
(A + B ÷ Examiner (C + D) (F + G ÷ Examiner (H + I)
2) 2)
7 Marks* 7 Marks* 7 Marks 3 Marks 10 Marks 7 Marks* 7 Marks* 7 Marks 3 Marks 10 Marks 20 Marks

1
2
3
4
5
6
7
8
9
10

*Breakup of 7 Marks to be awarded separately by

the Teacher and the Visiting Examiner is as Name of Teacher:
follows:
Signature: Date
Overall Format 1 Mark
Content 4 Marks Name of Visiting Examiner
Findings 2 Marks
Signature: Date
NOTE: VIVA-VOCE (3 Marks) for each Project is to be conducted only by the Visiting Examiner, and should be based on the Project only