education

Past question and answer on industrial management(GNS 113)

INDUSTRIUALISATION FOR 2016/2017
OBJECTIVES
QUESTION AND ANSWER

  1. The controlling financial institution in an economy is referred to a. THE ANSWER IS BANK
  2. The business profit of an organization is equal to total revenue minus. THE ANSWER IS EXPLICIT COST
  3. The function of money that involves making future payment is payment. THE ANSWER IS DEFERRED PAYMENT
  4. Any business behavior by business men that may violate social or moral standards are…. THE ANSWER IS NON-ETHICAL BEHAVIOUR
  5. The act of checking if the standards, set within an organization is met is. THE ANSWER IS MANAGEMENT
  6. The function of thinking in advance of future happening is. THE ANSWER IS CREATIVITY
  7. A rational businessman will always want to make. THE ANSWER IS MAXIMISE PROFIT
  8. The effort of bringing a component of a product and finally assembling the part together is. THE ANSWER IS TERTIARY PRODUCTION
  9. The promotion of industries that are into the production of goods to earn foreign exchange is. THE ANSWER IS EXPORT SUBSTITUTION
  10. The factor that affect how a business function that are beyond the control of the business is. THE ANSWER IS BUSINESS ENVIRONMENT
  11. The recruitment of applicants into an organization is. THE ANSWER IS STAFFING
  12. The act of getting employees to perform in a way that will help to achieve the established objective is.THE ANSWER IS LEADING
  13. The function of arranging materials resources and human resources to operate within an organization is. THE ANSWER IS ORGANISING
  14. The essential item before the commencement of an organization operation is. THE ANSWER IS PLANNING
  15. Business organize by an individual or group of individuals to make profit is. THE ANSWER IS FIRM
  16. The group of companies that are related based on their primary activities is. THE ANSWER IS INDUSTRIES
  17. Companies that produce goods that pertain to farming, forestry, fishing and animal husbandary is. THE ANSWER IS AGRICULTURAL INDUSTRIES
  18. Companies that are involve in the extraction of mineral resources is. THE ANSWER IS PRIMARY PRODUCTION COMPANIES
  19. The financial institution that deals directly with individuals and organization isTHE ANSWER IS COMMERCIAL BANK

INDUSTRIAL MANAGEMENT(GNS 113) THEORY ASPECT

Industrial management(GNS 113)

Questions and answers
(1)a Define the following terms: (i) an industry (ii) a firm
b. Explain five positive and negative effects of industrialization.
(2)a. Explain industrialization.
b. Using relevant examples, discuss the strategies of industrialization used in Nigeria.
C. Discuss four importance of a business organisation.
(3)a. Explain seven encountered in the process of industrialisation.
(4)a. Explain 5 characteristics of business environments.
b. Discuss five internal factors of business environments.
(5). What do you understand by ‘location of industry’. Explain 6 factors to be considered when locating an industry in an environments.
(6)a. Discuss the scientific Theory of Management as propounded by fredick Taylor.
b. Give a summary of Robert Owen’s Theory of Management.

STRATEGIES OF INDUSTRIALISATION

Question: What do theories of firm in Economics attempts to explain?

In economics, the theory of firm attempts to explain the reasoning behind why firms exist, why they operate and produce as they do, and how they are structured.

Discuss the scientific theory of management as profounded by Frederick Taylor


Scientific management is a management theory that analyses work flows to improve economic efficiency, especially labor productivity. This management theory, developed by Frederick Winslow Taylor.
He suggested that productivity would increase if jobs were optimized and simplified. He also proposed matching a worker to a particular job that suited the person’s skill level and then training a worker to do that job in a specific way. Taylor first developed the idea of breaking down each job into components parts and timing each parts to determine the most efficient method of working.


Scientific management consists of four core principles:


1) Look at each job or task scientifically to determine the “one best way” to perform the job.

2) Hire the right workers for each job and train them to work at maximum efficiency.
3) Monitor workers performance, and provide instruction and training when needed.


4)Divide the work between management and labour so that management can plan and train the workers, and workers can execute the

State five characteristics of Business Environment


a) It consists of all factors that are external to the business that affect the functioning of the business.
b) It covers all factors or forces affecting the business.
c) It is dynamic in nature, that is, it changes as the society changes.
d) It is not easy to predict the changes in the future of the business.
e) It differs from place to place.

Explain four functions of money


Money performs the following functions:
1) Medium of Exchange
: Money can serve as a medium through which people can exchange goods and services. It came due to the inadequacy of the trade-by-barter system.
Money can be used to buy different variety of goods and services.


2) Standard of Deferred Payment: Since money can be stored, it can be accumulated to pay debts that are fixed in terms of money. The use of money makes it possible for payments to be deferred from the present to some future date. And it encourages stability of money.


3) Unit of Account: In serving as a unit of account, it becomes practically possible for individual and companies to keep accounting record of their transactions in bank statements, ledgers and invoices.


4) Store of Value: Money is a good store of value because wealth can be stored for future use. When there is no inflation, money stored or saved retains its value for many years.


5) As a measure of Value: The value of goods and services are expressed by prices, therefore, money is used as a yardstick to measure and compare the worth of goods and services as well as occupation.


State Eight Characteristics of Money

  1. No intrinsic Value: The commodity that should serve as money must have little or no value in itself as opposed to its value of exchange.
  2. Generally Acceptability: Money must be generally acceptable by all in the society or country as a means of exchange.
  3. Portability: The object that serves as money must be something that can be carried about from one place to the other, i.e such object must have light weight.
  4. Homogeneity: Each unit of money must be same in size, colour and quality and be the same nationwide.
  5. Durability: The object that will serve as money must be able to last long, it must not be a perishable commodity, it must be able to stand the test of time.
  6. Relative Scarcity: Money must be relatively scarce, it must not be too many so as not to lose its value.
  7. Divisibility: Money must be capable of being divided into smaller units e.g 2500, 3200 e.t.c. to enable it to purchase both low and high priced commodities.
  8. Stability: in order to encourage lending and borrowing of money, the value of money must be stable.

Explain Demand for Money


Definition: The demand for money is the total amount which all individuals in the economy wish, for various reasons, to hold. In other words, the demand for money refers to the desire to hold money; that is, keeps one’s resources in liquid form rather than spending it. The demand for money in economics, is known as Liquidity Preference.

© Explain any four Functions of Management
Planning
: This is the process whereby managers make arrangement on what the organization are like to be. In management if you fail to plan, you have plan to fail.

  • Organizing: It is essential in an organization. The management in the organization group activities among the people and the resources systematically, intergrating the vision into verified system.
  • Leading: when the management discover what motivate employees and guide them to meet the organization owners, getting members of the organization to perform in such a way that will help to achieve established objectives.
  • Controlling: This is the managing of an organizational performance to make sure that goals are been met, the cost and performance must be monitored.
  • Staffing: This is a process where you recruit employees, placement of employees, training and developing them to carry out or accomplish the organizational activities.

Explain four Characteristics of Sole Proprietorship

  • OWNERSHIP: The business enterprise is owned by one person.
  • OBJECTIVE: The main objective of the one man business is to make profit.
  • SOURCE OF CAPITAL: THE CAPITAL REQUIRED to set up and run the business is provided by the proprietor.
  • LIABILTY: The sole proprietor has unlimited liability.
  • LEGAL ENTITY: It is not a legal entity as the owner is not separated from the business.
  • MANAGEMENT: The business is controlled and managed by the sole proprietor himself.
  • LIFE SPAN: The life span depends on the owner. The enterprise can fold up at any time.

Discuss Seven Factors That Surround The Business Environment Externally

  • Political Factors: This is in relationship to the law of the country that pertains to business, which if not followed will result in fines, e.g paying of taxes acquiring license for some goods e.t.c.
  • Economic Factors: These are economic issues like interest rates, exchange rates, inflation and the economic cycle which affect the purchasing of raw materials, sourcing for financial assistance from the banks, paying salaries e.t.c.
  • Social Factors: These are the societal factors that help an organisation to grow, it is the society that buys the product of the organisation to survive and to grow. The organization will need to supply goods at desirable prices, give fair remuneration to employees, give employment opportunities and fair return on investments of shareholders. The changes in society lifestyle and attitude, the change in size and distribution of the population, change in leisure time e.t.c affect the organisation.
  • Technological Factors: The organisation need to keep up to date with the latest technological advancement in order to remain in competition. The organisation use machinery in production process which will make their product efficient and cheaper in produce.
  • Environmental Factors: The organisation have to be more friendly with the environment by reducing noise from production unit, reducing wastage and pollution e.t.c.
  • Competitive Factors: The competition with other producers affect business operation. The organisation will need to have a higher percentage of market shares of the product and be in control to continue to exist in the commodity market.
  • Structural Factors: The smallness or largeness of the of the firm also matters. How big or small a firm is will determine the people buying goods or shares in that company. And this will also influence the fact of if a wholesaler, or a retailer or customer will be the buyer of that commodity.

1a) Explain Six Problems of Industrialization in your country.

  • Political Stability: The unstable political system and corruption being practised in the country discourage foreign investors in investing in the country.
  • Over Reliance On Foreign Technology: The local industries rely on foreign experts and technology for their production process. A situation whereby there is breakdown, foreign experts and spare parts must be available for the continuity of production.
  • Over Dependence On Foreign Aids: The government depends so much on foreign aids before it can embark on any capital project. This has given room to the syphoning of foreign exchange earnings out of the country.
  • Lack of Dedication: Our leaders lack dedication to duty. They are corrupt and mismanage the fund creation of infrastructural facilities for personal use.
  • Skilled labour: One of the problems confronting industrialization in Nigeria is the absence of enough skilled labour to appropriately man the industry. There are few well trained artisans, engineers and the like to operate the sophisticated industrial machines.
  • Widespread of poverty: One would have thought that the acquisition of the necessary skills would have solved the problem of the absence of skilled labour. However, it is more than that. The level of poverty in Nigeria is such that even where people want to acquire the necessary skills, they are unable to because they cannot afford the cost of training.
  • Demand for industrial goods in Nigeria: Following from the previous point is the fact that in Nigeria, majority of the people are poor and therefore mostly unable to afford the manufactured goods. Most factories therefore are producing below their installed capacity. The industries cannot make the needed profits to be ploughed back into the business.
  • Supply of raw materials: Another basic problem facing industrialization in Nigeria is the low supply of raw materials to feed the industries. In some cases, the industrial plants are there but because there are not enough raw materials to feed them, the machines just stay idle at the mercy of the weather till they get damaged or operate far below their installed capacity.
  • Infrastructural facilities: There is also the problem of lack of enough infrastructural facilities such us good roads, railways, constant supply of water and electricity etc. The industrial factories need electricity to run 24 hours a day. They need a constant supply of water, especially, those of them which depend on it. The factories need a good road network to be able to transport their raw materials and finished goods efficiently. However, the availability of these is inadequate Nigeria.
  • Capital to invest: Another problem is the absence of capital to make the initial investment and to re-inject into the business in order to expand. The banks may be willing to help but their interest rates are over the roof so entrepreneurs are not attracted to that option. Even where they are, some are not able to provide the collateral needed by the banks. As a result, Nigerian entrepreneurs are not able to access the facility or the loan.

The Two Factors Affecting Business Environment

  1. Internal Factors
  2. External Factors

Internal Factors: These are those factors affecting business internally.

  1. Availability of finance because without money the organisation may not be able to do what they wish.
  2. The capability of the staff is the productivity of the organization.
  3. The information that are available to the organisation, the more effective the
    organisation can make better decisions.
  4. The quality and quantity of information technology available to the organisation which will affect the productivity of the organisation.
  5. The management skills of the employees.
    The changes in the cost of production, that is, increase in wages and raw materials can affect the profitability of the organisation.

IMPORTANCE OF BUSINESS


The interaction of the business and the environment will determine the opportunities and threats of the business will be exposed to.

  1. It helps to identify the strength and weakness of an organisation in relation to global development.
  2. It helps the firm to analyse the competitor’s strategy.
  3. It will assist business organisation in improving its image to the society.
  4. It will assist managers in updating his knowledge, understanding and skills.
  5. It will assist in identifying the areas for growth and expansion of their activities.

DEFINE MANAGEMENT ACCORDING TO PROFESSION

A profession may be defined as an occupation that requires specialized knowledge and intensive academic preparations to which entry is regulated by a representative body.

The essentials of a profession are:

  1. Specialized Knowledge – A profession must have a systematic body of knowledge that can be used for development of professionals. Every professional must make deliberate efforts to acquire expertise in the principles and techniques. Similarly a manager must have devotion and involvement to acquire expertise in the science of management.
  2. Formal Education & Training – There are no. of institutes and universities to impart education & training for a profession. No one can practice a profession without going through a prescribed course. Many institutes of management have been set up for imparting education and training. For example, a CA cannot audit the A/C’s unless he has acquired a degree or diploma for the same but no minimum qualifications and a course of study has been prescribed for managers by law. For example, MBA may be preferred but not necessary.
  3. Social Obligations – Profession is a source of livelihood but professionals are primarily motivated by the desire to serve the society. Their actions are influenced by social norms and values. Similarly a manager is responsible not only to its owners but also to the society and therefore he is expected to provide quality goods at reasonable prices to the society.
  4. Code of Conduct – Members of a profession have to abide by a code of conduct which contains certain rules and regulations, norms of honesty, integrity and special ethics. A code of conduct is enforced by a representative association to ensure self discipline among its members. Any member violating the code of conduct can be punished and his membership can be withdrawn. The AIMA has prescribed a code of conduct for managers but it has no right to take legal action against any manager who violates it.
  5. Representative Association – For the regulation of profession, existance of a representative body is a must. For example, an institute of Charted Accountants of India establishes and administers standards of competence for the auditors but the AIMA however does not have any statuary powers to regulate the activities of managers.

Industrial management GNS 113

QUESTION AND ANSWER

SOURCES OF CAPITAL OF A SOLE PROPRIETORSHIP

  • Personal savings.
  • Loan from friends.
  • Trade credit i.e collecting credit goods.
  • Loan and overdraft from banks
  • Grants/loans from government.

SOURCES OF CAPITAL FOR PARTNERSHIP

  1. Personal contribution from partners.
  2. Loans and overdraft from banks.
  3. Trade credit.
  4. Undistributed profit ; are brought back to the business.
  5. Getting money from Admission of new partners.

Industrial management
GNS 113

THEORETICALLY QUESTIONS 

(1) a. Explain six problems of industrialisation in your country. b. Discuss three strategies of industrialization that have been practice in Nigeria.

(2)a. What do you understand by industrialization. b. Discuss five roles of industrialization in an economy. C. Explain four reasons why the establishment of industries in rural area is necessary.

(3)a. Mr. Kilanko want to go into soap Making, advice him on the factors to consider when locating his business.

(4)a. Discuss seven factors that bring about the localization of industry in an economy.

(5)a. Explain business environment. b. Discuss seven factors that surround the business environment externally.

(6)a. Explain five roles of money in an economy. b. Explain five types of money.

ANSWERS

a. Explain six problems of industrialisation in your country.

  1. Skilled labour: One of the problems confronting industrialization in Nigeria is the absence of enough skilled labour to appropriately man the industry. There are few well trained artisans, engineers and the like to operate the sophisticated industrial machines.
  2. Widespread poverty: One would have thought that the acquisition of the necessary skills would have solved the problem of the absence of skilled labour. However, it is more than that. The level of poverty in Nigeria is such that even where people want to acquire the necessary skills, they are unable to because they cannot afford the cost of training.
  3. Demand for industrial goods in Nigeria: Following from the previous point is the fact that in Nigeria, majority of the people are poor and therefore mostly unable to afford the manufactured goods. Most factories therefore are producing below their installed capacity. The industries cannot make the needed profits to be ploughed back into the business.
  4. Supply of raw materials: Another basic problem facing industrialization in Nigeria is the low supply of raw materials to feed the industries. In some cases, the industrial plants are there but because there are not enough raw materials to feed them, the machines just stay idle at the mercy of the weather till they get damaged or operate far below their installed capacity.
  5. Infrastructural facilities: There is also the problem of lack of enough infrastructural facilities such us good roads, railways, constant supply of water and electricity etc. The industrial factories need electricity to run 24 hours a day. They need a constant supply of water, especially, those of them which depend on it. The factories need a good road network to be able to transport their raw materials and finished goods efficiently. However, the availability of these is inadequate Nigeria.
  6. Capital to invest: Another problem is the absence of capital to make the initial investment and to re-inject into the business in order to expand. The banks may be willing to help but their interest rates are over the roof so entrepreneurs are not attracted to that option. Even where they are, some are not able to provide the collateral needed by the banks. As a result, Nigerian entrepreneurs are not able to access the facility or the loan.
  7. Political Instability: The unstable political system and corruption being practised in the country discourage foreign investors in investing in the country.
  8. Over Reliance On Foreign Technology: The local industries rely on foreign experts and technology for their production process. A situation whereby there is breakdown, foreign experts and spare parts must be available for the continuity of production.
  9. Over Dependence On Foreign Aids: The government depends so much on foreign aids before it can embark on any capital project. This has given room to the syphoning of foreign exchange earnings out of the country.
  10. Lack of Dedication: Our leaders lack dedication to duty. They are corrupt and mismanage the fund creation of infrastructural facilities for personal use.

b. Discuss three strategies of industrialization that have been practice in Nigeria.

  1. Import substitution: This approach is very popular. It consists of importing components of a product from foreign countries and finally assembling the parts together in a country that imported the product e.g KIA cars, Peugeot automobile. This approach is good because it saves a lot scarce foreign exchange, it promotes local employment opportunities, it also supplement the imported product and helps the development of the technological know how of the people.
  2. Export substitution: This approach geared effort towards the establishment and promotion of industries that are into the production of goods that will be exported to other countries and earn foreign exchange. This approach increases the foreign exchange earnings of a country, it solves the problem of balance payment, it increases employment opportunities because the people will be employed in the companies and it also facilitate the transfer of technology from foreign countries.
  3. Small scale industries: These are small companies within a country that produces goods and services on small scale with limited capital.

(2)a. What do you understand by industrialization.

Definition of industrialization

Industrialization can be defined as the system by which an economy which hitherto produced basic agricultural goods, now manufactures those same goods with the use of machines instead of manual labour and assembly plants instead of skilled artisans.

b. Discuss five roles of industrialization in an economy.


Industrialization of the individual sector contributes greatly to the economic development of nations in the following ways:

  1. Increase In Gross National Product [GNP]: The industrial sector, through its operations like payments of taxes, increase the earnings acquirable to the nation.
  2. Employment Opportunities: Industries provide employment [job] for many people.
  3. Technological Development: Industrialization can also lead to the development of technology in the country.
  4. Diversification Of The Economy: The industrial sector helps different countries to prevent over-dependence on only one product like Nigeria’s present over-dependence on crude oil, if Nigeria can invest in the industrial sector, her economy will in time be diversified.
  5. Improving Standard of Living; Industrialization also leads to the improvement of raising the improvement of raising the people’s standard of living through production of goods that are cheap and affordable.
  6. Funding of Education And Research: The industrial sector provides capital for the funding of education and research work in all the nations, e.g the Education Tax Fund [ETF] in Nigeria.
  7. Conservation of Foreign Exchange: Industrialisation has led to the conservation of foreign exchange which would have been used for importing goods now produced locally.
  8. Stimulation of Other Sector: The industrial sector stimulates the growyh of other sectors like agriculture, mining and lumbering.
  9. Control of Inflation Due to Mass Production: With modern technology, products like cars and machinery can be mass produced. This can help to reduce inflation.
  10. Training And Development of Skilled Manpower: Many people are trained in different technical areas in order to acquire special skills to manage different aspects of machines in an industry.

b. Discuss seven factors that surround the business environment externally.

Discuss Seven Factors That Surround The Business Environment Externally

  1. Political Factors: This is in relationship to the law of the country that pertains to business, which if not followed will result in fines, e.g paying of taxes acquiring license for some goods e.t.c.
  2. Economic Factors: These are economic issues like interest rates, exchange rates, inflation and the economic cycle which affect the purchasing of raw materials, sourcing for financial assistance from the banks, paying salaries e.t.c.
  3. Social Factors: These are the societal factors that help an organisation to grow, it is the society that buys the product of the organisation to survive and to grow. The organization will need to supply goods at desirable prices, give fair remuneration to employees, give employment opportunities and fair return on investments of shareholders. The changes in society lifestyle and attitude, the change in size and distribution of the population, change in leisure time e.t.c affect the organisation.
  4. Technological Factors: The organisation need to keep up to date with the latest technological advancement in order to remain in competition. The organisation use machinery in production process which will make their product efficient and cheaper in produce.
  5. Environmental Factors: The organisation have to be more friendly with the environment by reducing noise from production unit, reducing wastage and pollution e.t.c.
  6. Competitive Factors: The competition with other producers affect business operation. The organisation will need to have a higher percentage of market shares of the product and be in control to continue to exist in the commodity market.
  7. Structural Factors: The smallness or largeness of the of the firm also matters. How big or small a firm is will determine the people buying goods or shares in that company. And this will also influence the fact of if a wholesaler, or a retailer or customer will be the buyer of that commodity.

(6)a. Explain five roles of money in an economy.
b. Explain five types of money.

  1. COINS: Coins are precious metals made of silver, which have a defined amount of metallic content. They also have an official stamp of authority placed on them.Coins are homogenous and indestructible.
  2. COMMODITY MONEY: This is the type of money which has value has both money and commodity. Commodity money is valuable for its own sake since it can be put to some other uses.They can be used has medium of exchange e.g gold, diamond, cattle and beads.
  3. BANK NOTE: These are slips of paper or currency issued by the central bank. Paper money originated from the receipt issued by goldsmiths to those who deposited precious metals e.g gold, with them for safe keeping.
  4. PARTIAL MONEY: These are representatives of money which may be legal tender. They are acceptable within a certain restricted area. Partial money is not made mandatory for acceptance by all the people.
  5. LEGAL TENDER: A legal tender is any means of payment by which a trader is compelled by the law of the state to accept in settlement of debts, e.g Dutchmark. This is money which has the backing of the law and is an offence to reject it.
  6. TOKEN MONEY: Is a form of money which represents a greater values than it intrinsic value.

The 14 Laws Of Henry Frayol

  1. Division Of Work: Specialisation of labour brings about efficiency and organizational success.
  2. Authority: Managers need to possess the right to give orders so that they can get things done. This right must be accompanied with responsibility.
  3. Discipline: Organisational members need to respect the ruler and agreement that govern the organization. There is therefore the need for obedience and respect. Discipline will result from good leadership at all levels of the organization.
  4. Unity Of Command: Each employees receive order from those superior, so as not to lead to conflict in instruction and confusion of authority.
  5. Unity Of Direction: The efforts of everyone in the organization should be coordinated and focused in the same direction.
  6. Subordination of individual interest to the general interest: In any undertaking, the interest of the employees should not take precedence over the interest of the organization as a whole.
  7. Renumeration: Employees should be paid fully, in accordance with their contribution. That is compensation for work should be fair to both employees and employer.
  8. Centralization: The relationship between centralization and decentralization is a matter of proportion of an optimum balance must be found for each organization.
  9. The Hierarchy/scalar chain: The line of authority in an organization often represented today by boxes and lines of the organization chart runs in order of from the management to the lowest level of the enterprise, subordinate should observe the formal chain of command unless expressly authorized by their respectively superiors to communicate with each other.
  10. Order: Both materials and people should be in their proper places, that is the right place at the right time.
  11. Equity: Managers should be fair to their subordinates. Fairness resulting from the combination of kindness and justice. Will lead to to devoted and loyal service.
  12. Stability Of Staff: A high employee turnover rate is not good for the efficient functioning of an organization. People need time in learning their job.
  13. Initiative: Subordinates should be given the freedom to conceive and carry out their plans, even when some mistakes result. One of the greatest satisfaction in organization for formulating and carrying out plan.
  14. Esprit de Corps: Promoting teams spirit and harmonious effort among individuals is the key to organization success.

Industrial management (GNS 113)

Questions and answers

(1)a Define the following terms: (i) an industry (ii) a firm

b. Explain five positive and negative effects of industrialization.

(2)a. Explain industrialization.

b. Using relevant examples, discuss the strategies of industrialization used in Nigeria.

C. Discuss four importance of a business organisation.

(3)a. Explain seven encountered in the process of industrialisation.

(4)a. Explain 5 characteristics of business environments.

b. Discuss five internal factors of business environments.

(5). What do you understand by ‘location of industry’. Explain 6 factors to be considered when locating an industry in an environments.

(6)a. Discuss the scientific Theory of Management as propounded by fredick Taylor.

b. Give a summary of Robert Owen’s Theory of Management.

ANSWERS

Define the following terms: (i) an industry (ii) a firm


(i)An Industry: The industry is the production of goods or related services within an economy. An industry is the classification of groups of companies that are related based on their primary business activities.


(ii)A Firm: A firm is also known as business. The firm is referred to as the business organization organized by an individual or group of individuals to make profit. It is a business organization such as Corporation, Limited Liability Company or Partnership that sells goods or services to make a profit.


EXPLAIN FIVE POSITIVE AND NEGATIVE EFFECTS OF INDUSTRIALISATION.


Positive Effect of Industrialisation
(i)Productivity: There will be increase in the production of goods and services.
(ii)Increase In Population: The population growth rate will increase because there is means for the people to increase birth and to take care of the aged.
(iii)Increase In Technology: There is splurred technological development in the means of production of goods and services.
(iv)Job Opportunities And Increase In Education: there are more jobs availability due to the new opening of industries around one’s location.
There are more educational opportunities, because workers are trained on the use of new machines and equipments.
(v)No Foreign Aid: The country will not depend on other countries for survival since it can produce using its own resources and means.
(vi)Availability Of Goods And Services: There is variety of goods services available to the people for consumption.


The Negative Effects Of Industrialisation are:


(i)Pollution: There is lot of pollution from industries due to fumes and smoke coming out of the industry during production, mostly when the machines are been operated upon.


(ii)It Leads To Rural-Urban Migration: Due to the availabilities of better industries that can pay well in the cities, people at the village migrate to the city to offer better services at good pay. So therefore, there is migration to cities by those in the village.


(iii)Result In Health Issues: Some due to being overworked are easily overstressed and die young.
There are also health issues like obesity, because the workers have no time for other curricular activities.


(iv)Lack Of Freedom: The working and waking hours of the workers are dictated.


(v)Mental Disorder: There is meteoric rise in mental illness and stress.


STRATEGIES OF INDUSTRIALISATION


1) Import-Substitution strategy: The import-substitution strategy involves deliberate attempt by government aimed at encouraging the growth of industries within the country which produce goods and services which would otherwise have been imported.
2)Export Promotion Strategy: Export promotion strategy is also a deliberate government policy aimed at encouraging the production of commodities for export.
3)Small Scale And Large Scale Development Strategy: Government can also encourage the development of small and large scale industries with the aim of developing the industrial sector of the economy.


Question: What do theories of firm in Economics attempts to explain?


In economics, the theory of firm attempts to explain the reasoning behind why firms exist, why they operate and produce as they do, and how they are structured.

Discuss the scientific theory of management as profounded by Frederick Taylor


Scientific management is a management theory that analyses work flows to improve economic efficiency, especially labor productivity. This management theory, developed by Frederick Winslow Taylor.
He suggested that productivity would increase if jobs were optimized and simplified. He also proposed matching a worker to a particular job that suited the person’s skill level and then training a worker to do that job in a specific way. Taylor first developed the idea of breaking down each job into components parts and timing each parts to determine the most efficient method of working.
Scientific management consists of four core principles:
1) Look at each job or task scientifically to determine the “one best way” to perform the job.
2) Hire the right workers for each job and train them to work at maximum efficiency.
3) Monitor workers performance, and provide instruction and training when needed.
4)Divide the work between management and labour so that management can plan and train the workers, and workers can execute the task efficiently.


Give a summary of Roberts Owen’s Theory of Management


Owen was one of the first to ‘manage’ rather than order his work force, and the first to attempt to gain agreement for his ideas rather than impose them on others [A worker cannot be sacked by disagreeing with Owen].
Owen developed an aid to motivation and discipline called the silent monitor system which could be described as a distant ancestor of appraisal schemes in practice today. This intention of this scheme was that high achievers were rewarded and slackers were motivated to improve.
Owen opposed to the fact of machine being more important and efficient rather he chose to humanize work. He introduce a bill to legislate, the aim is to:
1) Ban the employment of those under 10.
2) Ban night shifts for all children.
3) Provide 30 minutes a day education for all those under 18.

State five characteristics of Business Environment


a) It consists of all factors that are external to the business that affect the functioning of the business.
b) It covers all factors or forces affecting the business.
c) It is dynamic in nature, that is, it changes as the society changes.
d) It is not easy to predict the changes in the future of the business.
e) It differs from place to place.

What do you Understand by Management


Management: is the act of making people more effective than they would have been without any form of activities. It is the process of reaching organisational goals by working with people and other organization resources. It can be science and it can be art. It is the art of making people more effective and it is the science in how you do that aspect of your work effectively.
Management is an act of getting people together to accomplish a desire, goal and objective with the organisation resources efficiently and effectively.


Definition of Management by Henry Fayor: Henry Fayor defined management as an act to forecast and to plan to organize, to command, to coordinate and to control.

Industrial managementGNS 113

(1) a. Explain six problems of industrialisation in your country.
b. Discuss three strategies of industrialization that have been practice in Nigeria.
(2)a. What do you understand by industrialization.
b. Discuss five roles of industrialization in an economy.
C. Explain four reasons why the establishment of industries in rural area is necessary.
(3)a. Mr. Kilanko want to go into soap Making, advice him on the factors to consider when locating his business.
(4)a. Discuss seven factors that bring about the localization of industry in an economy.
(5)a. Explain business environment.
b. Discuss seven factors that surround the business environment externally.
(6)a. Explain five roles of money in an economy.
b. Explain five types of money.

a. Explain six problems of industrialisation in your country.
Skilled labour
One of the problems confronting industrialization in Nigeria is the absence of enough skilled labour to appropriately man the industry. There are few well trained artisans, engineers and the like to operate the sophisticated industrial machines.

SECTION B: Answer any two questions

Explain The Roles of Industrialization In The Development of An Economy

  1. Fund is the bloodline of a successful business. Explain various reasonable means from where a businessman can source fund.
  2. Explain the roles of industrialization in the development of an economy.
    3a) Explain what you understand by cooperative society.
    b) Explain four advantages of private limited liability company.
    c) Discuss three problems of public cooperation.

Industrialization of the individual sector contributes greatly to the economic development of nations in the following ways:

  1. Increase In Gross National Product [GNP]: The industrial sector, through its operations like payments of taxes, increase the earnings acquirable to the nation.
  2. Employment Opportunities: Industries provide employment [job] for many people.
  3. Technological Development: Industrialization can also lead to the development of technology in the country.
  4. Diversification Of The Economy: The industrial sector helps different countries to prevent over-dependence on only one product like Nigeria’s present over-dependence on crude oil, if Nigeria can invest in the industrial sector, her economy will in time be diversified.
  5. Improving Standard of Living; Industrialization also leads to the improvement of raising the improvement of raising the people’s standard of living through production of goods that are cheap and affordable.
  6. Funding of Education And Research: The industrial sector provides capital for the funding of education and research work in all the nations, e.g the Education Tax Fund [ETF] in Nigeria.
  7. Conservation of Foreign Exchange: Industrialisation has led to the conservation of foreign exchange which would have been used for importing goods now produced locally.
  8. Stimulation of Other Sector: The industrial sector stimulates the growth of other sectors like agriculture, mining and lumbering.
  9. Control of Inflation Due to Mass Production: With modern technology, products like cars and machinery can be mass produced. This can help to reduce inflation.
  10. Training And Development of Skilled Manpower: Many people are trained in different technical areas in order to acquire special skills to manage different aspects of machines in an industry.

3(a) Explain What You Understand By Cooperative Society

Definition: A co-operative society is defined as a voluntary business organisation in which a group of individuals with common interest pool their resources together to promote the economic welfare of their members in production, distribution and consumption of goods and services.
Co-operative society is one of the oldest forms of business organisation. As far back as 1808, Robert Owen [1771-1858] established the first producer co-operative society in New Lonark, England. Also in 1884, Rochdole in collaboration with a group of twenty-eight weavers established a retail co-operative society.
In Nigeria, the first producer co-operative society was established in 1922 which has really contributed to the growth of Nigeria. Members may only be registered under co-operative laws. And their goals is to provide members welfare. Also each members have equal voting right.

(b) Explain Four Advantages of Private Limited Liability Company

  1. Large Capital: Private Limited Liability Company can easily raise capital as a result of many shareholders that form the business.
  2. It Has Legal Entity: Private Limited Liability Company has legal existence, hence it can sue and be sued in its own name.
  3. Shareholders Have Limited Liability: In the event of business failure, the shareholders only lose his shares which he contributed and his personal properties or assets are protected.
  4. Continuity of Existence: The chance of continuity of existence is high as the death or withdrawal of a shareholder cannot affect the existence of the company.
  5. Efficient Management: The business is efficiently managed by a board of directors appointed by the shareholders.
  6. Large Profit: Private limited liability companies do enjoy large profits because of their large size.
  7. Possibility of Expansion: The business can easily expand because of the large capital available to set up and run the company.
  8. It enjoys internal economies of large scale

GIVE A SUMMARY OF ROBERT OWEN’S THEORY OF MANAGEMENT

Robert owen was a manager of several cotton mills at new larnark. He was against the working condition of workers working for thirteen-hour long. He treat his workers well and spent more money on making them become better rather than machines. Robert owen’s also called them vital machines.

IN SUMMARY, of his contribution;
1. He improved working conditions
2. Raised minimum working age for children
3. Reduced hours of work for employees
4. Provide meals for employees at the factory

GIVE A SUMMARY OF ELTON MAYO STUDY OF HUMAN RELATION SCHOOL OF THOUGHT.

Elton mayo studied the behavior of people, his theories was formulated in 1920.
He introduce the human relation school of thought and focused on managers
Taking more interest in workers, treating them as people who have worthwhile opinion and realizing that this workers enjoy interacting together. He found that workers are motivated by;
1. Communication between managers and co-workers.
2. Involving in workers working life
3. Working in groups or teams
This theory was formulated using illumination experiment and relaye assembly test, room experiment.


DISCUSS THE SCIENNTIFIC THEORY OF MANAGEMENT AS PROPOUNDED BY FREDERICK TAYLOR

Henry frayol [1841-1925]

Henry frayol has been acknowledge, the founder of the classical management school, not because he was first to investigate managerial behavior but because he was the first to systemize it.
Fayol always insisted that his success was not due to his personal abilities as a manager but to the method he used. He believed that with scientific forcasting and proper methods of management, satisfactory result were inevitable.
Fayol’s insistent that management was not a personal talent but a skill was a major contribution to management.
The father of scientific management committed himself to the relentless pursuit of finding a better way. Taylor sought nothing less than what he called a mental revolution I n the practice of industrial management.
Taylor started the scientific management movement in industrgies in four areas, standardization of time, time and task study, selection and training and pay incentives.
The principle of scientific management, put forward certain principles. These principle are highlighted

  1. Time study principle: measuring by accurate time-study all productive efforts as well as the establishment of standard time for all workdone.
  2. Piece rate principle: concerns payment of wages which are commensurate with output. Workers were to be paid in relation to their output instead of the numbers of hours worked and the rate to be paid were to be passed in standards determine by time study.
  3. Separation of planning performance: the responsibility for planning work and making performance physically possible was to be taking over from workers by management.
  4. Scientific method for work principle: management were to assume the responsibility for work methods and training of workers as found necessary.
  5. Management control principle: management were to be trained and taught the application of scientific principleof management and control.
  6. Functional management principle: the application of strict military principle in industrial organization is to be abolished [ in order to ensure industrial coordination among the various specialist

Oluwamuyide Peter

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