CBSE Class 12 Business Studies Principles of Management VBQs Set 02

Principles of Management

Question. Henry Fayol, F.W. Taylor belongs to which of the following school of management?
(a) Neoclassical school
(b) Modern school
(c) Classical school
(d) Early perspective
Answer: (c) Classical school

Question. Gang plank is related to:
(a) communication
(b) motivation
(c) supervision of workers
(d) incentives to workers
Answer: (a) communication

Question. In what situation has Fayol permitted the violation of the principle of scalar chain?
(a) When the employee is extraordinarilly capable
(b) At the time of sudden happening
(c) in all conditions and circumstances
(d) In no condition or situation
Answer: (b) At the time of sudden happening

Question. Which one is not the Henry Fayol’s principle of management:
(a) Division of work
(b) Differential wages
(c) Scalar chain
(d) Equity
Answer: (b) Differential wages

Question. A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate, which principles of management has been violated by this situation?
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity
Answer: (c) Subordinating personal interest to general interest

Question. Which of the following statement justifies understanding of principles of management to take scientific decisions:
(a) Adherence to these principles add to knowledge and understanding of managerial situations
(b) Principles emphasise logic rather than blind faith
(c) Principles of management are the core of the management theory
(d) Principles are guidelines that can be modified as per the changing environment
Answer: (b) Principles emphasise logic rather than blind faith

Question. Which of the following technique of scientific management is a violation of unity of command.
(a) Differential piece wage system
(b) Fatigue study
(c) Functional foremanship
(d) Simplification of work
Answer: (c) Functional foremanship

Question. Which of the following technique of scientific management has the objective to determine the number of workers to be employed, frame suitable incentive schemes and determine labour cost.
(a) Differential piece wage system
(b) Time study
(c) Functional foremanship
(d) Simplification of work
Answer: (b) Time study

Question. According to Taylor there can be many hindrances in a good performance which may lead to fatigue identify the most suitable cause of Fatique from the following options.
(a) Long working hours
(b) Doing unsuitable work
(c) Uncordial relation with the boss
(d) All of the options
Answer: (d) All of the options

Question. Fayol principle of division of work can be applied to the following kind of work.
(a) Technical
(b) Managerial
(c) Both
(d) None of the options
Answer: (c) Both

Question. Authority is undermined discipline is in jeopardy order distributed and stability threatened. The above statement is a violation of one of the principles of management.
(a) Unity of direction
(b) Discipline
(c) Unity of command
(d) Stability of personel
Answer: (c) Unity of command

Question. How are principles of management are formed?
(a) By rule of thumb
(b) By observation and experimentation
(c) By experiences of customers
(d) By experiments in science laboratory
Answer: (b) By observation and experimentation

Question. Which of the following statements is true with reference to principles of management?
(a) The principles of management have evolved.
(b) The principles of management are yet to be evolved.
(c) The principles of management are in the continuous process of evolution.
(d) None of the options
Answer: (c) The principles of management are in the continuous process of evolution.

Question. By profession, FW Taylor was a:
(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer
Answer: (a) Mechanical engineer

Question. Which of the following statements is/are true with reference to principles of management?
(a) The principles are guidelines to action.
(b) The principles denote a cause and effect relationship.
(c) Principles help the manager to take decisions while performing various management functions.
(d) All of the options
Answer: (d) All of the options

Question. Principles of management can be modified by the manager when the situation demands. This statement implies that the principles of management are:
(a) Rigid
(b) Contingent
(c) Flexible
(d) Universally applicable
Answer: (c) Flexible

Question. The principles of management enhance the understanding of relationship between human and material resources for the achievement of organisational goals. Identify the feature of the principles of management being described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural
Answer: (d) Mainly behavioural

Question. Principles of management emphasize on logical and rational decision making rather than on the basis of bias and prejudice. The given statement highlights that the knowledge of principles of management leads to:
(a) Providing managers with useful insight into reality
(b) Scientific decisions
(c) Meeting changing environmental requirements
(d) All of the options
Answer: (b) Scientific decisions

Question. ‘Rule of thumb’ refers to:
(a) Use of personal judgement in handling management issues
(b) Adopting a hit-and-trial approach to resolve management problems
(c) Both of the above
(d) None of the options
Answer: (c) Both of the above

Question. According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/ her greatest efficiency and prosperity
(d) None of the options
Answer: (b) Science, not rule of thumb

Question. According to Taylor, “each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the options
Answer: (c) Development of each and every person to his or her greatest efficiency and prosperity

Question. This technique of scientific management helps in development of the concept of assembly line which is widely used in automobile companies these days as well. Identify the technique.
(a) Motion study
(b) Standardisation and simplification of work
(c) Method study
(d) Time study
Answer: (c) Method study

Question. Which of the following is an objective of time study?
(a) To determine the number of workers to be employed
(b) To formulate suitable incentive schemes
(c) To calculate the labour costs
(d) All of the options
Answer: (d) All of the options

Question. The technique of differential piece rate system was developed by Taylor in order to:
(a) Discriminate between efficient and inefficient workers
(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the options
Answer: (d) All of the options

Question. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management.
(a) Discipline
(b) Equity
(c) Division of work
(d) Order
Answer: (c) Division of work

Question. According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction
Answer: (b) Authority and responsibility

Question. Name the principle of management suggested by Henri Fayol, which advocates that, “there should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility
(b) Esprit De Corps
(c) Order
(d) None of the options
Answer: (d) None of the options

Question. According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity
Answer: (b) Discipline

Question. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps
Answer: (a) Stability of personnel

Question. Tisco Ltd. manufactures plastic folders. Aman works at operational level. Aman get orders from production manager as well as finance manager. He gets confused most of the times, which manager he should follow. State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of command
(c) Initiative
(d) Scaler chain
Answer: (b) Unity of command

Question. Which of the following does not follow the scalar chain?
(a) Functional structure
(b) Divisional Structure
(c) Formal organisation
(d) Informal Organisation
Answer: (d) Informal Organisation

Question. Sohan keeps machines, materials, tools, etc. ready for operations by concerned workers. Whose work is described by this sentence under functional foremanship?
(a) Repairs boss
(b) Speed boss
(c) Inspectors
(d) Gang boss
Answer: (d) Gang boss

Question. Which technique of Taylor separates planning and executive functions?
(a) Functional foremanship
(b) Fatigue work
(c) Standardisation
(d) Simplification
Answer: (d) Simplification

Question. Vinay and Pooja started a dry-cleaning shop. Customers were not happy with the services. So, they decided to find one best method to perform the job. Identify the technique of management used here.
(a) Motion study
(b) Fatigue study
(c) Method study
(d) Work study
Answer: (c) Method study

Question. Management principles increases managerial efficiency as the manager leaves routine meeting to his/her subordinates and deal with exceptional situations which require his/her expertise by following the principle of delegation. What does the above case signify about management?
(a) Meeting changing environment requirements.
(b) Providing managers with useful insights into reality.
(c) Fulfilling social responsibility.
(d) Management training, education and research.
Answer: (b) Providing managers with useful insights into reality.

Question. “A manager should replace ‘I’ with ‘We’ in all their conversations with the workers to fasten team spirit.” Identify the principle of management emphasised here.
(a) Esprit de Corps
(b) Scalar Principle
(c) Unity of Command
(d) Unity of Direction
Answer: (a) Esprit de Corps

Question. In an organisation Ram and Prema are working at the same posts but being a male employee Ram has more rights than Prema. State any one principle of management which is violated here?
(a) Principle of Equity
(b) Rule of Thumb
(c) Scalar Principle
(d) Unity of Command
Answer: (a) Principle of Equity

Question. ‘Rohit keeps machines, materials, tools, etc. ready for operations for concerned workers’. Whose work is described by this sentence under functional foremanship?
(a) Speed boss
(b) Repair boss
(c) Route clerk
(d) Gang boss
Answer: (d) Gang boss

Question. What is the latest development in scientific management?
(a) Motion study
(b) Time study
(c) Fatigue study
(d) Lean manufacturing
Answer: (d) Lean manufacturing

Question. “Principles help managers to take decisions while performing functions of management.” In your opinion above statement is:
(a) True,principles are guidelines to take actions
(b) False, functions of management are not related with principles of management
(c) Partly true, principles denotes cause and effect relationship which may help functions
(d) False, functions of management are just actions
Answer: (a) True,principles are guidelines to take actions

Directions: In the following questions, a statement of assertion is followed by a statement of reason.Mark the correct choice as:
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true,but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.

Question. Assertion: Principle of division of work states that the total work should be sub divided into small parts and each parts should be allocated to a specialized person.
Reason: Hence workers will always be on the separate work and does not interface with each other’s work so their efficiency and effectiveness will increase.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Parity of authority and responsibility.
Reason: Authority without responsibility makes people ineffective and responsibility without authority resulting in irresponsible behavior of workers.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion:Discipline is absolutely essential for achieving goals in business.
Reason: It involves a series of functions for achieving goals like planning, organizing, staffing, directing and controlling.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).

Question. Assertion: One head one plan one worker is unity of command.
Reason: It states workers should receive orders from only one boss at a time.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (d) If assertion (A) is false but reason (R) is true.

Question. Assertion: Centralizing means increasing the role of subordinates in management.
Reason: Giving responsibility to subordinates resulting in effective and efficient work.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (d) If assertion (A) is false but reason (R) is true.

Question. Assertion: Scalar chain is also known as gang plank.
Reason: Gang plank makes a bridge between two subordinates at the same level.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (d) If assertion (A) is false but reason (R) is true.

Question. Assertion: Principle of management are universally acceptable.
Reason: Because principle of management is universally acceptable they need not to be changed in any situation.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.

Question. Assertion:Functional foremanship is opposite to unity of command.
Reason: it Emphasizes on minimum eight specialist to supervise and gave orders to subordinate.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Differential piece rate wages refers to a system in which efficient and non efficient workers work.
Reason: to suitably reward the efficient workers and charge penalties from inefficient workers
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Scientific management requires time study of working by workers.
Reason: Wages will be paid according to time not by working.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.