Week 1 Practice Questions

Week 1 Practice Questions

Commerce Paper 2

Coverage Area: 

  • Organisation Theory – Nature and Concept of Organisation, External Environment of Organizations -Technological, Social, Political, Economical and Legal.
  • Organisation Behaviour – Meaning and Concept; Individual in organizations: Personality, Theories, and Determinants.
  • Human Resources Management (HRM) – Meaning, Nature and Scope of HRM, Human Resource Planning.
  • Industrial Relations (IR) – Meaning, Nature, Importance and Scope of IR.

No. of Questions – 8

Word Limit – As mentioned alongwith each question


1. Explain the following in about 150 words:

a) Freudian Stages of Personality development

b) Gandhian Approach to Industrial Relations


d) Task Environment vs. General Environment

2. “Organizational behaviour is the study of the many factors that have an impact on how individuals and groups respond to and act in organizations and how organizations manage their environment”. In the light of above statement, discuss nature and scope of Organisation Behaviour. (300 words)

3. “Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines.” Comment. (300 words)

4. “Management is personnel administration.” Do you agree? Explain. (300 words)

5. “Human resource planning is a double-edged weapon”. Comment. (300 words)

6. What is meant by industrial relations? What is its importance? What are the parties involved in Industrial Relations? (300 words)

7. Discuss the impact of recently introduced Goods and Services Tax (GST) on Business Environment in India. (200 words)

8. Critically analyse the impact of stricter H1B visa norms on HR practices of Indian Companies. (200 words)


  • Answers are to be submitted in the comments section below. You can also add images of your handwritten answer.
  • Make sure you first understand the question, before moving on to attempt the same.
  • For effective discussion and evaluation, try to submit the answers within this week only till 21/07/2017.
  • Make sure you copy your answers somewhere (for ex. in notepad or separate word file) before submitting your answers here to avoid any problems which may arise due to unforeseen technical glitches.

All the Best !!!


  1. 7. Goods and Service tax is a new input based tax regime which subsumes various central and state level indirect taxes like Excise, Vat, etc. It shall have the following impact on the business environment In India in the short run-

    1. Technological – need to adopt to the GST network and hire/re-skill accounting and taxation staff
    2. Legal- more complainces, also due to the anti-profiteering clause in the GST regime
    3. Geographic – It being a destination tax- states like Up, Bihar may benefit at the cost of producing states like Maharastra and Gujarat. At the same time smooth flow of goods between states will benefit comapnies
    4. Financial- need to re-jig working capital requirements- due to change in period of return of the input tax credit for exporting firms -which may lead to increase in costs and possible fall in exports demand
    5. Demand patterns- The prodcuers of sin products like cigarattes may have to face the brunt of falling demand due to higher taxes

    However, in the long run- when the companies must have adjusted to the new tax regime- the benefits of increased government developemntal expenditure (due to increased tax revenue) as also the ease of doing business will start to accrue

    1. Great attempt! You could also have started by mentioning that Business Environment is composed of General & Task Environment or something like legal environment changes affect all businesses generally. Overall above average. Attempt remaining also.

      1. Overall great coverage but you should use structure as used by Raunak in first answer! You have good writing skills. Keep practising. All the best.

  2. 8. Critically analyse the impact of stricter H1B Visa norms on HR practices of Indian Companies.

    The business enviornment for Indian companies in general and IT companies in particular have become very dynamic with elements of protectionist tendencies world over. In this respect the impact of stricter H1B Visa norms on HR practices of Indian companies could be the following :

    1. Recruitment and Hiring- hiring more Americans as supposed to Indian immigrants for specialised work. Infosys recently announced its plan to hire 10000 workers in US
    2. Training and development- the skill set of Americans at IT work is not at the same level as that of Indians and thus the need to devise new traning strategies
    3. Performace appraisal – need to move over the bell curve (as Infosys recently did) for it may be legally sued for not being transparent and being discriminatory
    4. HR record keeping – as the legal compliance rules become stricter, the IT company may be sued for not fulfilling the legal requirements. The law suits against Infosys in US recently is a case in point
    5. Outsourcing the HR functions – IT would face the delimma of carrying an inhouse HR for foriegn HR functions or outsource it to local agencies for better complainces

    Human resource management is an ever evolving concept, mainly due to the elements in the general environement and the growing strategic advantages accruing from skilled employees. the new wave of protectionism is just a new stage, as also the elements in the technical environment, with the adevnt of the fourth revolution. The IT companies are already taking measures to adopt to these trends and shall forbear this wave as well

        1. Human resource planning is a double-edged weapon. If used properly, it leads to the maximum utilisation of human resources, reduces excessive labour turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organisation. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches for the management personnel. Therefore, for the success of an enterprise, human resource planning is a very important function, which can be neglected only at its own peril.

    1. The five stages of Freud’s psychosexual theory of development include the oral, anal, phallic, latency, and genital stages. Try to be thorough with the question first. Any mistake in interpreting the requirements of the question can prove really fatal.

  3. 1 (d)
    Task Environment and General Environment

    The systems theory views an organisation as a relatively open system which interacts with its environemnt for exchange of Information, resources and Influence. The environment here consists of the broader environment with indirectly affecting elements (namely, techonological, politoc-legal, social and the like) and the task environement with direct affecting elements (namely, customers, suppliers, competitors and the like).

    General environment remains the same for all, however an organisation’s task environment is specific to itself. Further, the general environment indirectly affects an organisation through the task environment. Also, while it’s hard to delineate the affects of the general environment, the task environment has a direct interface with the organisation and thus it’s affects are observable.

    Nonethless, with the systems concept in vogue a manager has to keep a close watch on both the broader frame and the specific elements of the environment, affecting an organisation, in order to keep the Organisation viable and attain it’s Goals

      1. sure, would do.

        Pls revert back to this query-in urgent need – of a concise source for the Finaincial Institutions part in paper 1 ??

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