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Chapter 2 Principles of Management Class 12 Business Studies HOTS
Class 12 Business Studies students should refer to the following high order thinking skills questions with answers for Chapter 2 Principles of Management in Class 12. These HOTS questions with answers for Class 12 Business Studies will come in exams and help you to score good marks
HOTS Questions Chapter 2 Principles of Management Class 12 Business Studies with Answers
Principles of Management
Important Questions for NCERT Class 12 Business Studies Principles of management
Question. State the two methods through which management principles have been derived.
Answer: a) Observation method b) Experimental method
Question. What is the objective of fatigue study?
Answer: To find out ….
a) The number of rest intervals. b)The frequency of rest intervals. c) The duration of rest interval.
Question.“The Principles of management are different from those used in pure science “. Comment.
Answer: The Principles of Management differ from those used in pure science as they are not rigid like principles of pure science since, they deal with human behavior which is unpredictable.
Question. Who Suggested the concept of functional foreman ship?
Answer: F.W.Taylor.
Question. Rohit keeps machines,materials,tools etc,ready for operations by concerned workers’. Whose work is described by this sentence under functional foreman ship?
Answer: Gang Boss
Question. What is meant by flexibility of principles of management?
Answer: The principles of management are not rigid. They can be modified by the manager when the situation so demands.
Question.What is the latest development in scientific management?
Answer: Lean Manufacturing.
Question. Which principle of management ensures fairness to all employees by treating them as fairly as possible?
Answer: Principle of equity.
Question. What is mental revolution?
Answer: Change in attitude of management & workers towards each other.
Question. A subordinate receives order from more than one loss’ . Which principle in violated?
Answer: Unity of command.
Question. Name the founder of gender theory of management?
Answer: Henry Fayol.
Question. According to taylor “ even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed “ which principle of his is emphasized here?
Answer: sciencse not rule of thumb
Question.“The true intentions of management and workers are one and the same and the prosperity of the one cannot exist without the prosperity of the other” which principle of taylor is being talked about.
Answer: harmony not discord.
Question. What type of organizational objective is satisfied if an organization provides salary to the workers commensurate with their job?
Answer: personal objective
Question. The production manager of a company is trying to produce good with minimum cost. Name the concept which is being focused by management.
Answer: efficiency
Question. Hina & Hitesh are typists in a company having the same educational qualification. Hina is getting Rs3000 per month $ Hitesh is getting Rs 4000 per month as salary for the same work hours .Which principle of management is violated in this case? Name the principle $ explain it.
Answer: In this case the ‘Principle of Equity’ is violated .As both are having same qualification working at same authority level but getting different salaries .(Explain the principle of Equity ).
Question. Explain giving reasons under which situations techniques of Taylor are not applicable .
Answer: Some techniques of Taylor are not universally applicable under some situations. These are:-
(a) Functional Foreman ship-This technique is not applicable in the organizations adopting principle of unity of command.
b) Differential piece rate system: This technique is not possible in organization following principle of equity.
c) Simplification: This technique is not suitable for organizations having objective of diversification and expansion of line of products and varieties
Question. Develop a differential piece rate plan for a shirt manufacturing company
Answer: Standard target for an average worker 40 shirts in a day wage rate for those who achieve the target rs 10 per shirt wage rate for those who produce less than that rs 8 per shirt
Question. An employee is asked to produce 100 units in one weeks time but he is not allowed to take out raw material from the store at the end of the week the employee could not complete his target because of insufficient supply of raw materials .can he be blamed ? which principle is associated with this condition? Explain it
Answer: no, we cannot blame the employee. The principal associated with this condition is principal of authority and responsibility.
(explain this principal)
Question. Mohan a manager expects his subordinates to adopt to the new environment and working conditions without giving them time to settle down. Which principle is being overlooked.
Answer: the principle overlooked is principle of stability of tenure
Question. Mohan a manager does not distribute the work among his subordinates either according to the capability or proportionately which principal of management is overlooked . what can be the consequences?
Answer: the principal overlooked is the principal of division of work
Following can be the consequences
1.lack of efficiency and effectiveness
2.lack of specialization
Case Study Based HOTs Class 12 Business Studies
Case Study - 1
Read the following text and answer the following questions on the basis of the same:
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.
In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees.
Question. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?
(a) Discipline
(b) Order
(c) Remuneration to Employees
(d) Unity of Direction
Answer: A
Question. Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?
(a) Discipline
(b) Order
(c) Equity
(d) None of these
Answer: C
Question. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?
(a) Centralization and Decentralization
(b) Division of work
(c) Discipline
(d) Order
Answer: B
Question. "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority." Identify the principle of management being followed here:
(a) Centralization and Decentralisation
(b) Authority and Responsibility
(c) Unity of Command
(d) Unity of Direction
Answer: A
Read the following text and answer the following questions on the basis of the same:
Damini D’Souza took over the reins of Kinsa Retail’ as its managing director in India. Kinsa Retail with its headquarters at Japan has been in retail business for the last 40 years. It has regional offices in many countries with each regional office taking care of the shops in that particular region. As it is a large organisation, the regional officers have been given the powers to decide and spend funds sanctioned to them by the headquarter for the welfare of the customers of the region.
Kinsa Retail wants the highest possible standards of ethical conduct being followed for which a code of conduct is in place for putting values into practice. All employees as well as Board members are required to
act in accordance with the highest standards of personal and professional integrity when acting on behalf of the company. Non-compliance involves a heavy penalty including termination of employment. The management of Kinsa Retail firmly believes that the principles of management are not rigid prescriptions which have to be followed absolutely. Rather, the application of principles of management is dependent upon the prevailing situation at a particular point of time. Their application has to be changed as per requirements. Kinsa Retail selects and appoints personnel after due and rigorous procedure. But once selected, they are given reasonable time to show results. All the employees are happy and satisfied working in the organisation.
Question. The management of Kinsa Retail firmly believes that the principles of management are not rigid prescriptions which have to be followed absolutely. Rather, the application of principles of management is dependent upon the prevailing situation at a particular point of time. Their application has to be changed as per requirements. What nature of management principles has been highlighted here?
(a) Universal applicability
(b) Flexibility
(c) Contingent
(d) Mainly behavioural
Answer: C
Question. Kinsa Retail selects and appoints personnel after due and rigorous procedure. But once selected, they are given reasonable time to show results. All the employees are happy and satisfied working in the organisation. Identify the principle of management discussed here.
(a) Equity
(b) Subordination of individual interest to general interest
(c) Stability of personnel
(d) Initiative
Answer: C
Question. As it is a large organisation, the regional officers have been given the powers to decide and spend funds sanctioned to them by the headquarter for the welfare of the customers of the region. Identify the principle of management discussed here.
(a) Authority and responsibility
(b) Division of work
(c) Centralisation and decentralisation
(d) Order
Answer: C
Question. All employees as well as Board members are required to act in accordance with the highest standards of personal and professional integrity when acting on behalf of the company. Non-compliance involves a heavy penalty including termination of employment. Identify the principle of management discussed here.
(a) Discipline
(b) Standardisation and simplification of work
(c) Esprit De Corps
(d) Initiative
Answer: A
Case Study - 2
Read the following text and answer the following questions on the basis of the same:
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.
In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command.
However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees.
Question. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?
(a) Centralization and Decentralization
(b) Division of work
(c) Discipline
(d) Order
Answer : B
Question. "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority." Identify the principle of Management being followed here:
(a) Centralization and Decentralisation
(b) Authority and Responsibility
(c) Unity of Command
(d) Unity of Direction
Answer : A
Question. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?
(a) Discipline
(b) Order
(c) Remuneration to Employees
(d) Unity of Direction
Answer : A
Question. Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?
(a) Discipline
(b) Order
(c) Equity
(d) None of these
Answer : C
Very Short Answer type Chapter Principles of Management Class 12 Business Studies
Question. How are principles of management formed?
Ans: They are formed by practice and experimentation.
Question. Why is it said that the principles of management are universal?
Ans: Because they can be applied to all types of organization :- business as well as non business, small as well as large, public sector as well as private sectors.
Question. Why is it said that principles of management are flexible?
Ans: Because they can be modified by the managers when the situation so demands.
Question. Which principles of management promotes team spirit.?
Ans: Esprict De Corps.
Question. Who was the first to identity functions of management?
Ans: Henri Payol.
Question. Which principle of management suggests that a subordinate should receive orders from and be accountable to one superior?
Ans: Principle of Unity of command.
Question. Who gave the concept of scientific management? What was his profession?
Ans: F.W.Taylor gave the concept of scientific management and he was an American mechanical engineer.
Question. Which principle of scientific management suggest the introduction of scientific investigation and analysis of management practice?
Ans: Science, not rule of Thumb.
Question. What is the basis of formation of scientific management?
Ans: Observation & Experimentation.
Question. Which principle of management is violated if an employee is asked to receive orders from two superiors?
Ans: Principle of unity of Command
Question. “Workers should be encouraged to develop and carry out their plans for improvements”. Identify the principle of management formulated by Fayol.
Ans: Principle of initiative.
Question. It has been observed that the prevailing situation in an organization is due to the violations of the principle of ‘order’. What might have been your observation?
Ans: People and materials are not in suitable places at appropriate time.
Question. Which principle of management is violated when a manager grants one month medical leave to a superior with pay and only one week medical leave to an accountant?
Ans: Principle of equity.
Question. Mohan a manager, expects his colleagues to get work out of subordinates without giving them any powers. Which principle of management is being overlooked and why?
Ans: Principle of parity of Authority and Responsibility.
Question. Which principle of management aims at securing the loyalty and devotion of the employees by giving them fair and just treatment?
Ans: Principle of Equity.
Question. Which principle of management envisages that each group of activities having the same objective must have one head and one plan? Explain the principle with suitable example.
Ans: Unity of Direction
Question. If an organization does not provide the right place for physical and human recourses in the organization, which principle is violated? What are its consequences?
Ans: Principle of Order
Question. The production manager of an automobile company asked the foreman to achieve a target production of 200 units (Scooters) per day. But he did not give him the authority to requisition tools and materials from the store department. Can the production managers blame the foreman if he is not able to achieve the desire target? Explain briefly the principle relating to the situation.
Ans: No, the production manager can not blame the foreman because he did not give material from the stores department. Since he had no authority, he could not fulfill his responsibility. Also explain principle of Parity of Authority.
Question. Name and explain that principle of Fayol which suggest that communication from top to bottom should follow the official lines of command?
Ans: Principle of Scalar Chain.
Question. Identify the technique of scientific management which are described by the statement given below:-
i. When specialists supervise each worker.
ii. Change in the attitude of workers and management towards one another. From competition to Co-operation.
iii. When uniformity is introduced in materials. Machine, tools, method of works and working conditions after, due research.
Ans: 1. Functional Foremanship.
2. Mental Revolution
3. Standardization of works
Question. Hina & Harish are typist in a company having same educational qualification. Hina is getting Rs.3000 per month and harish Rs. 4000 per month as salary far the same working hour. Which principle of management is violated in this case? Name and explain the principle?
Ans: Principle of fair remuneration.
Chapter-2
PRINCIPLES OF MANAGEMENT
Question. Prince the manager of a business undertaking, is very lax with his fellow employees and subordinates. He does not given them parameters or rules for reporting to work and completion of assignments. Which principle of management is overlooked?
Ans. Principle of Authority and Responsibility.
Question. “Workers should be encourage to develop and carry out their plans for development. “Identify the principle of management formulated by Fayol.
Ans. Principle of initiative.
Question. “A manager should replace ‘I’ with ‘we’ in all his conversation with worker to faster team spirit.” Identify the principle of management emphasized here.
Ans. Espirit –De- Corps
Question. Priyanka, manager, experts his subordinates to adapt to the new environs and working condition without giving them time to settle down. Which principle of management is being overlooked?
Ans. Stability of tenure of personal.
Question. Which principle of Taylor advocates scientific enquiry as opposed to hit and trail?
Ans. Science is not Rule of Thumb.
Question. Who gave the concept of scientific management ? What was his profession?
Ans. F.W. Taylor gave the concept of scientific management and he was on
American mechanical engineer.
Question. Why is Taylor most remembered?
Ans. For his time and motion studies.
CBSE Class 12 Business Studies HOTs Nature and Significance of Management |
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CBSE Class 12 Business Studies HOTs Controlling |
CBSE Class 12 Business Studies HOTs Financial Management |
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CBSE Class 12 Business Studies Chapter 2 Principles of Management HOTS
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Chapter 2 Principles of Management CBSE Class 12 HOTS Business Studies
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