ISC Class 12 Syllabus 2027 Business Studies

ISC YEAR 2027

INDIAN SCHOOL CERTIFICATE
EXAMINATION

BUSINESS STUDIES
(859)

February 2025
____________________________________________________________________________________________

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Council for the Indian School Certificate Examinations (CISCE)

MISSION STATEMENT

The Council for the Indian School Certificate
Examinations is committed to serving the nation's
children, through high quality educational
endeavours, empowering them to contribute towards
a humane, just and pluralistic society, promoting
introspective living, by creating exciting learning
opportunities, with a commitment to excellence.

ETHOS OF CISCE

Trust and fair play.
Minimum monitoring.
Allowing schools to evolve their own niche.
Catering to the needs of the children.
Giving freedom to experiment with new ideas
and practices.
Diversity and plurality - the basic strength for
evolution of ideas.
Schools to motivate pupils towards the
cultivation of:
Excellence - The Indian and Global
experience.
Values - Spiritual and cultural - to be the bedrock
of the educational experience.
Schools to have an 'Indian Ethos', strong roots in
the national psyche and be sensitive to national
aspirations.

CLASS XII
There will be two papers in the subject: Group discussion, final interview, medical
test, reference check, final approval,
Paper I - Theory: 3 hours …… 80 marks
placement; brief explanation and
Paper II - Project Work …… 20 marks importance of each step of the selection
procedure); distinction between recruitment
PAPER - I (THEORY): 80 MARKS and selection.
1. Human Resource Management (v) Staff Training.
(i) Introduction to Human Resource Meaning and definition of training;
Management. distinction between training, education and
development; types of training (induction,
Meaning and definition of Human Resource job, remedial, safety, promotional,
Management; Characteristics of Human refresher- brief explanation of each.);
Resource Management: people oriented, methods of training: on the job and off the
comprehensive function, staff function, job (vestibule, apprenticeship, internship,
pervasive, challenging, continuous, classroom); Distinction between on the job
individual oriented, development oriented, and off the job training. Hindrances to
action oriented, future oriented, training: brief explanation. Benefits of
interdisciplinary, art as well as science,
training to employer and employees.
young discipline; Importance of human
resource management. (vi) Staff Morale.
(ii) Job and Manpower planning. Meaning, definition and characteristics of
staff morale; Morale Productivity Matrix
Meaning, relevance and difference between (brief explanation of the four situations);
the following: Job Analysis, Job factors influencing morale (morale
Specification, Job Description, Job depressants and stimulants: an
Enrichment and Job Enlargement, understanding of how the same factor may
Manpower Estimation. lower or boost morale); methods of raising
(iii) Staff Recruitment. morale; indicators of low and high morale;
advantages of high morale; disadvantages
Meaning, definition and characteristics of of low morale.
staff recruitment; sources of recruitment:
(vii) Staff Motivation.
internal sources (promotion, transfer, ex-
employees, recommendation by employees); Meaning, definition and characteristics of
external sources (advertisements, campus staff motivation; difference between
recruitment, casual callers, gate hiring, motivation and morale; importance of staff
employment exchanges, placement agencies, motivation to the employer and the employee
labour contractors). Differences between ; factors influencing motivation: monetary
internal and external sources of recruitment, and non-monetary incentives; differences
their merits and demerits; e-recruitment: between monetary and non-monetary
concept, benefits and limitations; sources of incentives; Maslow’s theory of the
e-recruitment: internet and intranet (their Hierarchy of Human Needs (explanation of
benefits and limitations). the theory with the help of the pyramid,
assumptions and criticism of the theory);
(iv) Staff Selection. Herzberg’s Two-factor Theory (Motivation
Meaning and definition of staff selection; and Hygiene Factors).
Selection procedures (preliminary
screening, application blank, selection test,

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(viii) Staff Remuneration. seniority-cum-merit (brief explanation of
each and the advantages, disadvantages,
Meaning and definition of Staff
comparison between seniority basis and
remuneration, Methods of wage payment –
merit basis.)
Time Rate and Piece Rate System (An
explanation of the two systems along with Staff Transfer: Meaning, definition and need
their merits, demerits and suitability, for transfer; Types of transfers:
differences between the two); Pay Slip and replacement, versatility, remedial,
Payroll - Meaning, Differences, production (meaning and relevance of each
Components, Specimens of both. Various type).
staff benefits: Employee Provident Fund,
(xii) Staff Separation.
National Pension System, Group Insurance
(medical and life), encashment of leave, Meaning of Staff separation; means of staff
gratuity, (basic understanding only). Types separation: Retirement (Compulsory and
of leaves (casual, medical/sick, earned / Voluntary), Lay off, Retrenchment,
privilege, maternity/ paternity, sabbatical/ Resignation, Suspension (Meaning and
study, leave without pay: basic distinction only), Dismissal: grounds for
understanding only) dismissal, procedure for staff dismissal.
(ix) Staff Leadership. Exit Interview-Meaning and importance.
Meaning and definition of staff leadership; (xiii) Emerging trends in Human Resources.
Distinction between Leadership and Flexible Hours, Permanent part time, Work
Management; Leadership styles: Autocratic, from home, Retainership, Virtual teams,
Democratic, Laissez-Faire (brief Self-managing teams (SMTs) - only meaning
explanation, advantages, disadvantages and
of the above terms.
comparison between each style);
Leadership continuum (brief description); 2. Business Communication and
Situational leadership (brief description); Correspondence
Blake & Mouton Managerial Grid (brief (i) Business Communication
explanation).
Meaning and definition of communication;
(x) Staff Appraisal. 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
and their respective advantages and (Formal and Informal), on the basis of
disadvantages). direction (Horizontal, Vertical-upwards and
downwards, Diagonal), Meaning,
(xi) Staff Promotion and Transfer. Advantages and Disadvantages of each;
Staff Promotion - Meaning, definition, distinction between - Internal and External;
benefits and limitations of promotion; Open Formal and Informal; Horizontal and
and Closed policy of promotion (meaning Vertical Communication; Barriers to
and differences); a brief understanding of Communication (Semantic, Physical and
the concept of Dry promotion and upgrading Mechanical, Organisational, Socio-
and distinction between the two; Psychological: meaning only, detailed
requirements of a sound promotion policy; explanation not required); overcoming the
Basis of promotion: seniority, merit, barriers to communication.

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(ii) Business Correspondence 4. Globalisation and recent trends in Business
Need and functions of business (i) Globalisation.
correspondence.
Meaning, nature, opportunities and threats
Business Letters of globalization for business; brief
understanding of how globalization has
Elements and contents of various business
been instrumental in transforming the
letters; types of letters: solicited and
manner in which Business is conducted.
unsolicited letters of application for a job,
along with drafting of biodata; Interview (ii) e-Business.
letter, Offer of Appointment, Letter of
Meaning, nature and importance of
resignation, Letter of enquiry, Quotation
e- business to the buyer and to the seller.
letter, Order letter, Complaint letter, Reply
to Complaint letter). (iii) Outsourcing.
NOTE: Candidates should be able to draft Concept of outsourcing; Parties involved –
all of the above types of letters, using the the outsourcer, the outsourced and the
appropriate format. service provider – the respective advantages
and disadvantages of each of the above.
Reports
(iv) Types of Outsourcing.
Meaning and definition of Reports; types of
reports: statutory, non- statutory, private, Business Process Outsourcing (BPO),
public, informational, interpretative, Knowledge Process Outsourcing (KPO),
routine/periodic, special; brief explanation and Business Legal Process Outsourcing
of each type of report; differences between (LPO).
statutory and non-statutory, private and Basic understanding of the above.
public, informational and interpretative,
routine/periodic and special report. Format (v) Online means of conducting business.
of report (report writing not required). Business to Consumer (B2C), Consumer to
(iii) Current trends in Business Communication: Consumer (C2C), Business to Business
e-mail and video conferencing. (B2B), Intra Business (Intra B) and,
Business to Government (B2G), Government
Meaning and uses of e-mail and video
to Business (G2B).
conferencing.
Basic understanding of the above with a few
3. Business Size and Finance examples.
(i) Various business entities. 5. Business Regulators and Intermediaries
Meaning, definition and distinction between (i) Regulators and Intermediaries.
sole proprietorship, partnership, private
limited company and public limited Meaning of the terms Regulators and
company. Intermediaries.
(ii) Sources of business finance (ii) Role of Regulators and Intermediaries.
A basic understanding of the following: (a) Reserve Bank of India (RBI): Indian
Equity and preference shares, debentures banks, foreign banks, Non-Banking
and bonds, retained profits, public deposits, Financial Companies (NBFC).
loans, trade credit, discounting of bills of (b) Securities and Exchange Board of India
exchange, global depository receipt, Angel (SEBI): stock exchanges, stock brokers,
investors, venture capitalists, crowd merchant bankers, depositories, mutual
funding, peer to peer funding, factoring. funds and credit rating agencies.
(c) Insurance Regulatory and Development
Authority of India (IRDA): insurance

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companies, insurance agents and organization stand to gain from incurring this
insurance brokers. cost? Do the benefits justify the cost?
(d) Food Safety and Standards Authority of 5. Consider any two successful business leaders.
India (FSSAI): food processors, food Give a brief account of their leadership styles.
packers. Explain the impact of their leadership styles in
(e) Bureau of Indian Standards (BIS): ISI the achievement of the organizational goals of
mark given to industrial goods, their respective organisations.
consumer electrical goods, steel 6. Analyse the emerging trends in human resource
manufacturers. management and discuss their implementation in
Only a basic understanding of the roles of India (Comparative study of five organisations).
the above regulators and intermediaries. 7. Make a comparative study of any two
E-Businesses in terms of their Nature, Size,
Products and Services offered, Functioning and
PAPER II–PROJECT WORK: 20 MARKS Policies.
Candidates will be expected to have completed two 8. Select any two companies and study their
projects from any topic covered in Theory. sources of finance with respect to the amount
The project work will be assessed by the teacher procured and advantages and disadvantages of
and a Visiting Examiner appointed locally and each source of finance
approved by CISCE. 9. Select any BPO or KPO and explain the
Mark allocation for each Project [10 marks]: outsourced functions that it performs. Discuss
the impact of outsourcing in general and
Overall format 1 mark specifically on the profitability of the
Content 4 marks outsourcing organization.
Findings 2 marks 10. Study any one regulator and the intermediaries
under it. Give an account of their functions and
Viva-voce based on the Project 3 marks how it helps the common man.

A list of suggested Projects is given below: NOTE: No question paper for Project work will be
set by CISCE.
1. Analyse the recruitment process in any two
companies of your choice. List the loopholes if
any and give suggestions for improving the
process. (You may also make a comparative
study of the recruitment process).
2. Evaluate the selection process of any two firms
from the corporate world and discuss their
benefits and drawbacks vis-a-vis each other.
3. Study any two business organizations (one Multi
National Company and one Indian Company)
with regards to their Policies of Compensation
(Increment policy, Incentive policy, Bonus and
reward policy, retirement benefits).
4. Study the various types of leaves made available
to employees. Leaves can be considered as
financial cost to the organization. What other
tangible and non-tangible benefits does the

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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

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