NCERT Class 12 Business Studies Principles Of Management

NCERT Class 12 Business Studies Principles Of Management. Download NCERT Chapters and Books in pdf format. Easy to print and read. Copies of these textbooks may be downloaded and used as textbooks or for reference. Refer to other chapters and books at other links (NCERT now providing you soft copies of all textbooks of all subjects from class first to twelfth online).


Principles of Management:

The Concept : A managerial principle is a broad and general guideline for decisionmaking and behaviour. For example while deciding about promotion of an employee one manager may consider seniority, whereas the other mayfollow the principle of merit. One may distinguish principles of management from those of pure science. Management principles are not as rigid as principles of pure science. They deal with human behaviour and, thus, are to be applied creatively given the demandsof the situation.

Human behaviour is never static and so also technology, which affects business. Hence all the principles have to keep pace with these changes. For example, in the absence of Information andCommunications Technology (ICT), a manager could oversee only a small work force that too within a narrow geographical space. The advent of ICT has expanded the capability of the managers to preside over large business empires spread across the globe. Infosys headquarters in Bangalore boast of the Asia’s largestflat screen in their conference room from where their managers can interact with their employees and customers in all parts of the world. In developing an understanding of the meaning of principles of management, it is also useful to know what these are not.

The principles of management should be distinguished from techniques of management. Techniques are procedures or methods, which involve a series of steps to be taken to accomplish desired goals. Principles are guidelines to take decisions or actions while practicing techniques. Likewise, principles should also be understood as being distinct from values. Values are something, which are acceptable or desirable. They have moral connotations. Principles are basic truths or guidelines for  behaviour. Values are general rulesfor behaviour of individuals in society formed through common practice whereas principles of management are formed after research in work situations, which are technical in nature. However, while practicing principles of management values  


By nature is meant qualities and characteristics of anything. Principles are general propositions, which are applicable when certain conditions are present. These have been developed on the basis of observation and experimentation as well as personal experiences of the managers. Depending upon how they are derived and how effective they are in explaining and predicting managerial behaviour, they contribute towards the development of management both as a science and as an art. Derivation  of these principles may be said to bea matter of science and their creativeapplication may be regarded as an art. These principles lend credibility of a learnable and teachable discipline to the practice of management. As such, ascent to managerial position may not be a matter of birth, but a matter of requisite qualifications. Clearly, management principles have gained importance with increasing professionalisation of management. These principles are guidelines to action. They denote a cause and effect relationship.


Multiple Choice

1. Principles of management are NOT

 (a) Universal

 (b) Flexible

 (c) Absolute

 (d) Behavioural

2. How are principles of management formed?

 (a) In a laboratory

 (b) By experiences of managers

  (c) By experiences of customers

 (d) By propagation of social scientists

3. The principles of management are significant because of

 (a) Increase in efficiency

 (b) Initiative

 (c) Optimum utilisation of resources

 (d) Adaptation to changing technology

4. Henri Fayol was a

 (a) Social Scientist

 (b) Mining Engineer

 (c) Accountant

 (d) Production engineer

5. Which of the following statement best describes the principle of ‘Division of Work’

 (a) Work should be divided into small tasks

 (b) Labour should be divided

 (c) Resources should be divided among jobs

 (d) It leads to specialisation

6. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship

 (a) Instruction Card Clerk

 (b) Repair Boss

 (c) Gang Boss

 (d) Route Clerk

7. Which of the following is NOT a Principle of management given by Taylor ?

 (a) Science, not rule of the Thumb

 (b) Functional foremanship

 (c) Maximum not restricted output 

 (d) Harmony not discord

8. Management should find ‘One best way’ to perform a task. Which technique of Scientific management is defined in this sentence?

 (a) Time Study

 (b) Motion Study

 (c) Fatigue Study

 (d) Method Study

9. Which of the following statements best describes ‘Mental Revolution’?

 (a) It implies change of attitude.

 (b) The management and workers should not play the game  of one upmanship.

 (c) Both management and workers require each other.

 (d) Workers should be paid more wages.

10. Which of the following statements is FALSE about Taylor and Fayol?

 (a) Fayol was a mining engineer whereas Taylor was a  mechanical engineer

 (b) Fayol’s principles are applicable in specialised situations  whereas Taylor’s principles have universal application 

 (c) Fayol’s principles were formed through personal experience whereas Taylor’s principles were formed through experimentation

 (d) Fayol’s principles are applicable at the top level of management whereas Taylor’s principles are applicable at the shop floor. 

Short Answer Type

1. How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.

2. Define scientific management. State any three of its principles.

3. If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?

4. Explain any four points regarding significance of Principles of management.

5. Explain the principle of ‘Scalar Chain’ and gang plank.

Long Answer Type

1. Explain the Principles of Scientific management given by Taylor.

2. Explain the following Principles of management given by Fayol with examples:

 (a) Unity of direction

 (b) Equity

 (c) Espirit de corps 

 (d) Order

 (e) Centralisation and decentralisation

 (f ) Initiative

3. Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.

4. Discuss the following techniques of Scientific Work Study:

 (a) Time Study

 (b) Motion Study

 (c) Fatigue Study

 (d) Method Study

 (e) Simplification and standardisation of work

5. Discuss the differences between the contributions of Taylor and Fayol.

6. Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.

Please refer to attached file for NCERT Class 12 Business Studies Principles Of Management



Click to View or Download pdf file
Click for more Business Studies Study Material

Latest NCERT & CBSE News

Read the latest news and announcements from NCERT and CBSE below. Important updates relating to your studies which will help you to keep yourself updated with latest happenings in school level education. Keep yourself updated with all latest news and also read articles from teachers which will help you to improve your studies, increase motivation level and promote faster learning

Board Exams Class 10 and Class 12 Datesheet 2020

CBSE has announced the datesheet for the remaining exams of class 10 and class 12 exams. The exams are going to start in July. The class 10 and 12th board exams will be conducted for the remaining 29 papers from July 1 to July 15, 2020, at various centers nominated by...

Board Cancelled Official CBSE Statement

Keeping in view the requests received from various State Governments and the changed circumstances as on date, following has been decided- 1. Examinations for classes X and XII which were scheduled from 1st July to 15th, 2020 stand cancelled. 2. Assessment of the...

Class 12 Board Exams Datesheet Announced

CBSE has announced the datesheet of the remaining class 12 board exams, see below:  

Class 10 Board Exams to be held

The CBSE board has announced that there is no change in the decision of conducting the CBSE board exams for the 29 subjects, which were canceled due to coronavirus crisis. So when the lockdown gets relaxed completely, the board will conduct the exams for the students,...

CBSE Board Exams in July Press Release

CBSE has released press note for the dates for the CBSE Board exams for Class 10. CBSE said “With regards to conduct of Class X examinations several queries are being received by the CBSE. In this context, it is once again reiterated that remaining examinations of...

CBSE advisory on student marks

CBSE has issued a public advisory for all students to be careful from unscrupulous persons impersonating themselves as officers/officials of CBSE. These people have been contacting parents and have been telling them that they have access to student marks data for Board...

Studies Today