CBSE Class 12 Business Studies HOTs Principles of Management

Please refer to CBSE Class 12 Business Studies HOTs Principles of Management. Download HOTS questions and answers for Class 12 Business Studies. Read CBSE Class 12 Business Studies HOTs for Chapter 2 Principles of Management below and download in pdf. High Order Thinking Skills questions come in exams for Business Studies in Class 12 and if prepared properly can help you to score more marks. You can refer to more chapter wise Class 12 Business Studies HOTS Questions with solutions and also get latest topic wise important study material as per NCERT book for Class 12 Business Studies and all other subjects for free on Studiestoday designed as per latest CBSE, NCERT and KVS syllabus and pattern for Class 12

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.

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

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.

Q.8 What is the premise of scientific management?

Ans. Finding ‘one best way’ to do a particular task.

Q.9 What is meant by ‘mental revolution’ according to Taylor?

Ans. According to Taylor, mental revolution means a complete transformation in the attitude between management and workers. Both should realize that they need each other.

Q.10 Name two companies which have successfully implemented standardization and simplification of work.

Ans. Nokia, Toyota and Microsoft. This is evident from their large share in their respective markets.

Q.11 What is the basis of formation of scientific management?

Ans. Observation and Experimentation.

Q.12 What is the objective of standardisation?

Ans. To increase the efficiency of workers.

Q.13 How does the techniques of ‘motion study’ help to improve the efficiency of workers?

Ans. By eliminating unnecessary and wasteful movements on the job.

Q.14 List any two principle of Scientific Management’ formulated by Taylor for managing an organization scientifically.

Ans. Science, not Rule of Thumb

Harmony, not Discord

Cooperation, not Individualism

Conceptual Questions

Q.1 Fayol points out the danger and cost of unnecessary labour turnover in one of this ‘Principle’. Name & explain the principle.

Ans. Principle of stability of tenure of personnel : According to this principle, employees should not be moved from their place frequently. The period of service in a position should be fixed. Fayol suggest that employee turnover should be minimized to maintain organizational efficiency. There should not be frequent terminations & transfers. Effects :

1. Provides a feeling of job – security among the employees.

2. Employees efficiency increases and they contribute their maximum when feel that their job is secure.

3. No wastage of time & resources

Adverse effects of violation :-

1. Cost of unnecessary labour turnover. Recruitment, selection & training cost will be high.

2. If the job of a person is not secure, he/she will look out job else where and his/her work will not be satisfactory.

Q.2 Workers should be encouraged to development carry out their plans for improvements. Identify the principle of management formulated by Fayol.

Ans. Principle of initiative.

Q.3 Why does the principle of unity of command not hold good in the case of functional foremanship?

Ans. According to the principle of unity of command, an employee should receive orders / instruction from one & only one boss or superior On the other hand, the principle of functional foremanship insists on orders and instructions from Height specialists.

So, if an organization has appointed eight functional specialists, then it is not possible to allow only one superior to give orders. Hence, the principle of unity of command does not hold good in the case of functional foremanship.

Q.4 Explain four techniques which facilitate application of the principle of scientific management.

Ans. 1) Time study : It determines the standard time taken to perform a well defined job the objective of time study is to determine the no of workers to be employed, frame suitable incentive schemes and determine labour costs.

2) Method study : The objective of method study is to find out one best way of doing the job.

Example : To manufacture shoes, the methods could be manual or mechanical but the cost of labour & capital to manufacture shoes may vary.

The management has to decide about the method to be used t manufacture shoes.

3) Motion study : Motion study refers to the study of movements like lifting, putting objects, sitting etc, which are undertaken while doing a typical job. Example : Suppose a worker is engaged in a motor mechanic job. The expert in motion study observe how he moves various parts of his body, how many times he has to pick up and keep the tools back.

4) Fatigue study : Fatigue study seeks to determine the amount & frequency of rest intervals in completing a task.

Example : Suppose an employee is working in a plant where three shifts are in operation. If he continues to work in the second & third shift, he may feel totally exhausted and will not continue to work any longer.

Q.5 Which principle of management envisages that each group of activities having the same objectives must have one head and one plan? Explain the principle with a suitable example.

Ans. Unity of Direction : The principle implies that there should be “ONE HEAD AND ONE PLAN” for a group of activities having the same objective. Example : If a company is manufacturing motor cycle as well as cars, then it should have two separate divisions. Each divisions should have its own in charge, plans & resources effects.

1. Ensures unity of action.

2. Facilitates coordination.

Adverse effects :

1. There will be unnecessary duplication of efforts & wastage of resources.

2. Efficiency of the organization will also be adversely effected because of lack of unity of action.

Q.6 Name and explain the technique of Taylor which is the strongest motivation for a worker to reach standard performance.

Ans. Differential piece way system. This is method of wage payment suggested by F.W. Taylor in which efficient & inefficient workers are paid at different rates. He wanted to reword efficient worker. The efficient workers are paid at higher

rates than the inefficient ones. Workers are paid on the basis of the number of units produced. If a worker produces more than standard units, he is given a higher wage per unit. Due to different rates for different sets of workers, It is known as differential wages system.

Q.7 The directors of Bhupender Ltd. An arganisation manufacturing computers, want to double the sales & have given this responsibility of their sales manager. The sales manager has no authority either to increase the sales expenses or appoint new salesman. Hence he could not achieve this target.

Is the sales manager responsible for not achieving the target? Explain in brief, the relevant principle in support of your answer.

Ans. No, the sales manager is not responsible because he has no authority either to increases the sales expenses or appoint new salesmen. In this case the principle of ‘Parity of Authority and Responsibility is violated. Authority means the right orders & obtain obedience. There are two types of authority (a) official authority i.e. authority to command & (b) Personal authority which is the authority of the individual manager. ‘Responsibility’ means obligation to perform the job assigned on time. Fayol suggested that there must be balance between authority and responsibility. Giving authority without responsibility may lead to irresponsible use of authority. So an organization should build safeguards against abuse of managerial power.

Effects :-

1. No misuse of authority.

2. Helps in performing duties on time without any delay.

Adverse effect

1. If authority is less, the subordinate will not be able to perform his duties well.

2. If the subordinate is given excess authority he may misuse his authority.

Q.8 Name the principle and explain of Fayol which suggests that communication from top to bottom should follow the official lines of command.

Ans. Principle of scalar chain. The formal lines of authority form highest to lowest ranks are know as scalar chain. The principle of scalar chain suggests that communication from top to bottom should follow the official lines of command.

According to Fayol, organizations should have a chain of authority & communication that runs from top to bottom and should be followed by managers & the subordinates.

CBSE_Class_12_Bussiness_Studies_management _Set_B_4

Effect :

1. Smooth flow of communication in organization.

2. No communication Gap in the organization.

3. There will be unity of command in the organization

4. No confusion of Dual order.

Adverse effect :-

1. Authority responsibility relationship will not be clear

2. Communication gap in the organization.

Q.9 Hina and Harish are typists in a company having same educational qualifications. Hina is getting Rs. 3000 per month and Harish Rs. 400 per month as salary for the same working hours. Which principle of management is violated in this case? Name and explain the principle.

Ans. Principle of Equity :- The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just treatment.

Q.10 Taylor’s techniques of management are universally applicable. Do you agree? Give any four reasons in support of your answer.

Ans. Taylor’s techniques are developed through scientific approach and not by rule of thumb. Any principle developed scientifically is universally applicable because these are not effected by personal feelings or biasness of managers.

The techniques which facilitate the universal applicability of Taylor’s principles are :-

→ Time study → Motion study

→ Method study → Fatigue study

But, some techniques of scientific management are not universally applicable under some situations. These are

i) Functional Foremanship → This technique is not applicable in the organization following the principle of unity of command.

ii) Differential Piece Wage system : This technique is also not applicable in the organization following the principle of equity.

Q.11 “Taylor’s principles of scientific management and Fayol’s principle of management are mutually complementary “. Do you agree? Give any five reasons in support of your answer .

Ans. Yes, I agree with the view – “Taylor’s principle of scientific management and Fayol’s principles of management are mutually complementary “. While Taylor succeeded in revolutionizing the working of factory shop floor, Hennry Fayol explained the general principles of management which the managers should follow in doing their work.

→ Fayol’s perspective is top level management which Taylor’s perspective is shop floor level of factory. Taylor’s scientific principles aim at increasing worker’s efficiency by devising the best method, fair day’s work, differential piece wage system and functional foremanship. On the other hand, Taylor’s principle aim at increasing managerial efficiency.

→ Τhe aim of the principles of both Taylor’s and Fayol is the same, ie to maximize efficiency of work and performance.

→ Both sets of principle suggest mutual cooperation b/w employer and Eemployees.

Q.12 The production manager of Bharat Ltd. Instructs a salesman to go slow in selling the product, whereas the marketing manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case? State the consequences of violation of the this principle.

Ans. Unity of Command :-

Consequences of Violation :-

If an employee gets orders from two superiors at the same time i.e., principle of unity of command is violated.

→ authority is undermined

→discipline and order is disturbed

→stability is threatened

→ conflict among superiors

→ loyalty of employee is divided

→ employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.

Q.13 Priya and Nandita are working in a organization. They perform similar jobs but they are paid their salaries at different rates. Which principle of management is violated in this situation? Explain the principles in brief.

Ans. Principle of Equity :- The principle of “Equity” emphasizes kindliness and justice in the behaviour of managers towards workers. According to Fayol, employees can be made to put in their best only when are given kind, fair and just treatments.

Q.14 In each of the following cases tell which principle of management as given by Henry Fayol being violated and how.

a) When a sales manager is not given the right to discount to the buyer necessary to conclude a large scale. Contract, which will be profitable for the company.

Ans. Authority and responsibility.

b) When each division of the company does not have a separate plan of action.

Ans. Unity of Direction.

c) When a subordinate receives order from two superiors.

Ans. Unity of command.

d) When a manager awards contract for supply of raw material to a particular party which happens to be owned by his relative ignoring other parties who can supply the same at a cheaper rate.

Ans. Subordination of individual interest to group interest.

e) When a subordinate habitually contacts higher authority in the company by passing his/her immediate superior.

Ans. Scalar chain.

f) When the tools and /or raw materials are not found at the right place in the company.

Ans. Order.

Q.15 Identify the techniques of scientific management which are described by the statements given below. Also give reason.

a) When many specialists supervise each worker.

Ans. Functional foremanship.

b) When uniformity is introduced in materials machines tools method of work and working condition after due research.

Ans. Standardisation of work.

c) To determine standard time taken to perform a will defined job.

Ans. Time study.

d) Giving variable wages to workers and management based on their performance.

Ans. Deferential piece wage system.

e) Change in the attitude of workers and management towards are another from competition to cooperation.

Ans. Mental Revolution.

f) To fine out one best way to do job.

Ans. Method study.

Q.16 If an organization does not provide the right place for physical & human resources in the organization. Which principle is violated? What are the consequences?

Ans. Principle of order :-

Consequences :

1. Violation of material order leads to wasteful movement of materials & tools.

2. If social order is violated, it may not be easy to contact the needed employee.

1 Mark Questions

1. What do you mean by managerial principles ?

2. Give one difference between managerial principles and pure scientific principles.

3. What is the difference between Principles & Values ?

4. How are the principles of management formed ?

5. Why is it said that principles of management are universal ?

6. How can you say that managerial principles are flexible ?

7. If the co. doesn’t provide the right place for physical and human resources, which principles of management is violated ?

8. Which device helps subordinates of the same level of different departments to communicate directly in case of emergency ?

9. Which principle promotes team spirit ?

10. Who emphasized on administrative principles of management ?

11. What is positive effect of principle of division of work ?

12. What is the negative effect of not following the principle of division of work ?

13. What is principle of initiative ?

14. What is the objective of principle of unity of direction ?

15. What is the negative effect if principle of order is violated ?

16. Which principle of management suggest that employees should be treated with justice and kindness ?

17. What is the purpose of gang plank ?

18. What is the principle of unity of direction ?

19. Which technique of scientific management give high compensation to better performer ?

20. Which technique of scientific management seeks to find out one best way of doing a job ?

21. What is the objective of scientific management ?

22. Name the technique of scientific management which focuses on separation of planning and execution function.

23. Name the personnel who work under the production In charge ?

24. What is the objective of method study ?

25. What is the objective of ‘Time Study’ ?

Question Bank

1. Principles of management are statement of fundamental truth which provide guidelines for management decision making and action.

2. Management principles are not as rigid as principles of pure science. They deal with human behaviour, which is never static. Hence, principles of management have to keep pace with change.

3. Principles are basic truth or guidelines for behaviour while values have moral connotations, i.e., something which are acceptable or desirable.

4. They are formed by practice and experimentation.

5. 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 sector, manufacturing as well as service sector.

6. Because these can be modified by the manager when the situation so demands.

7. Principle of ‘Order’.

8. Gang Plank.

9. Espirit De Corps.

10. Henry-Fayol. He was a French mining engineer.

11. There would be specialisation and efficient utilization of Labour.

12. Performance of the workers will be poor due to absence of specialization.

13. According to the principle of initiative, workers should be encouraged to develop and carry out their plans for improvements.

14. To ensure unity of action and co-ordination.

15. There will be chaos leading to loss of time and material.

16. Principle of equity.

17. To enable two employees at the same level to communicate directly with each other.

18. Unity of direction.

19. Differentiate Piece wage system.

20. Method study.

21. Finding ‘one best way’ to do a particular task.

22. Functions Foremanship.

23. Speed Boss, Gang Boss, Repair Boss, and Inspector.

24. To find out ‘one best way’ of doing job.

25. To determine the standard time required to perform a certain job so as to fix a fair day’s work for the workman.

3-4 Marks Questions

1. What do you mean by management principles ?

2. “Management principles are evolutionary” Explain.

3. Briefly explain the nature of managerial principles.

4. “Management principles are dynamic”. Comment.

5. “Management principles aim at influencing human behaviour”. Explain.

6. “Management principles are relative not absolute”. Explain.

7. How does managerial principles ensure optimum utilization of resources and effective administration ?

8. Define Scientific management any name any three principles of it.

9. How does ‘mental revolution’ helpful in effective management ?

10. Explain the principle ‘Science, not the rule of Thumb” given by Taylor.

11. Explain the principle ‘Harmony not discord’.

12. Name the techniques of scientific management.

13. What do you mean by Time Study ? What is its objective ?

14. Explain ‘fatigue study’ and its objective.

15. Explain the techniques of differential piece rate system.

16. Distinguish between unity of command and unity of direction on the basis of.

(i) Meaning

(ii) Aim

(iii) Implications.

SUGGESTED ANSWERS TO 3-4 MARKS QUESTIONS

Ans.1 Management principles are statement of fundamental truth which provide guidelines for managerial decision making and action. These principles are derived on the basis of observations and analysis or experimental studies. They help in predicting the results of managerial action. They have been given Henry Fayol and F.W. Taylor E.g. Principle of Division of work.

Ans.2 Principles of management are evolutionary in nature-They are formed by practice and experimentations. They are developed on the basis of organized quantative facts or from the long experiences of the leaders and scholars of management thought’s. They are derived on the basis of observation and analysis of event which management face in actual practice. They are based on experimental studies.

Ans.3 Nature of managerial principles—

(a) General guidelines— They are not readymade solutions to all managerial problems, rather they are general guidelines to help the management.

(b) Formed by practice and experimentation — They are not developed overnight. They are derived on the basis of observations and analysis of events which managers face in actual practice. Secondly they are derived after conducting experimental studies.

(d) Universal Applicability— They are applicable to all types of organizations.

Ans. 4. Management principles are dynamic— Management principles are flexible and can be utilized under different conditions of the organizations. They are influenced by the need of the given situation. These are flexible guide whose application depends upon the physical factors, social factors and economic factors of an organization.

Ans. 5. Management involves dealing with human. Management principles are directed towards regulating the human behaviour but not definite rules can be laid down in this respect. Human behaviour is complex and also unpredictable. Each individual has uniqueness based upon his ego, beliefs, culture ability etc. Principles of management help the management to modify the behaviour of employees at work place.

Ans. 6. Management principles are relative not absolute. ------- Yes, management principles are not absolute. They can not be applied blindly in all situations and in all organizations. They have to be applied keeping in view the prevailing situation. They require the room for modification as same principle may produce different result in different situations.

Ans. 7. In every organization resources such as men machines, materials and money play a vital role. Management principles are designed in such a way that maximum benefits from these resources can be achieved with minimum resources wastage. Along with this principles of management also help in establishing effective administration by limiting the boundary of managerial discretion so that their decisions may be free from personal biases.

Ans. 8. According to Taylor, “Scientific management means knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”.

Three Principles of Scientific management are as follows :

(i) Science, not rule of thumb

(ii) Harmony, not discord.

(iii) Cooperation, not individualism.

Ans. 9. Mental revolution implies change in the attitude of both the management and the workers towards each other. It becomes possible by : (a) sharing a part of surplus with workers, (b) training of employees, (c) division of word, (d) team spirit, (e) positive attitude, (f) sense of discipline, (g) Sincerity etc. Mental revolution results in achievement of organizational goals effectively and efficiently.

Ans. 10. This principle is concerned with selecting the best way of performing a job through the application of scientific principles there of and not by intuition, experience and hit and trail methods. It means that work assigned to any employee should be observed and analyzed with respect to each element or part there of and the time involved therein as to decide the best way of performing the work and to determine the standard output. Rule of thumb does not involve analytical thinking before doing.

Ans. 11. This principle require that there should become understanding between workers and management. Manager should create suitable working conditions and resolve all problems scientifically. Also, workers should attend to their jobs with devotion and be careful not to waste resources of the organization. Workers should be disciplined and loyal. It helps to produce synergy effect, since both management and work in union.

Ans. 12. Techniques of scientific management are as follows :—

(i) Functional Foremanship.

(ii) Standardization and simplification of work

(iii) Method study

(iv) Time study

(v) Fatigue study

(vi) Motion study

(vii) Differential piece wage system.

Ans. 13. Time study determines the standard time taken by workmen to perform a given task.

The purpose of time study are as follows:—

(i) To decide how much time is normally required to perform a certain job,

(ii) To determine a fair day’s work for the workmen.

(iii) To determine the number of workers to be employed.

(iv) To frame suitable incentive schemes.

Ans. 14. Fatigue study determines the amount and frequency of intervals in completing a task. Workers can not work at a stretch. After putting in work for a certain period of time, they feel tired which affects their performance. It they are allowed rest intervals, they will regain their stamina and will resume their work with greater efficiency.

Ans. 15. This is a method of wage payment suggested by F.W. Taylor in which efficient and inefficient workers are paid at different rates. He wanted to reward efficient workers. So, he introduced different rates of wages payment for those who performed above standard and for those who performed below standard. The efficient workers are paid at higher rates than the inefficient ones.

Workers are paid on the basis of the number of units produced. If a worker produces more than standard nits he is given a higher wages per unit. Due to different rates for different sets of workers, it is known as differential wage system.

The wage payable to a worker are calculated as follows :

Wages = No. of units produced x wage Rate

CBSE_Class_12_Bussiness_Studies_management _Set_B_1

5-6 MARKS QUESTION

1. Explain the principles of scientific management given by Taylor.

2. Explain any functional foremanship techniques of Scientific Management with diagram.

3. Explain the importance of managerial principles.

4. Are the principles of management given by Henry Fayol and F.W. Taylor are complimentary or supplementary to each other. Justify your answer.

Ans.1 Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.

Principles of Scientific Management

(i) Science, not rule of thumb :— Taylor believes that there was only one best method to maximize efficiency. This method can be developed through study and analysis. The method so developed should substitute ‘Rule of Thumb’ throughout the organization. Scientific method involves scientific observations and analysis of each task and determination of standard of work.This will result in tremendous saving of human energy as will as wastage of time and materials.

(ii) Harmony, not discord :— Taylor emphasized that there should be complete harmony between the management and workers. Both should realize that each one is important to achive, this Taylor advocate a complete ‘Mental Revolution’ on the part of both management and workers. It means that management and workers should transform their thinking. In such a situation each trade unions will not think of going on strike etc. Managers should adopt an enlightened attitude and share the gains of the company with workers.

Workers on their par should work hard with discipline and loyalty. Both should be part of the family.

(iii) Co-operation, not individualism :— There should be complete cooperation between the labour and management instead of individualism. Management should work almost side by side with the worker helping, encouraging and smoothing the way for them. This principle is extension of the principle ‘Harmony not Discord’. Competition should be replaced by co-operation. Both should realize that they need each other. For management should receive their suggestions of the employees. They should be rewarded if any of their suggestions results in substantial reduction in costs. They should be allowed to take part in management decisions. At the same time workers should resist from going on strike and making unreasonable demands on the management.

(iv) Development of each and every person to his/her greatest efficiency and prosperity :— Industrial efficiency depends to a large extent on the competencies of the employees. According to Taylor, to increase efficiency each person should be scientifically selected. The work assigned should suit her/his physical, mental & intellectual capability. They should be given the required training as well as to learn the ‘best method’ to do a Job.

Efficient employees would produce more and earn more. This will ensure that their greatest efficiency and prosperity for both the company and workers.

Ans.2 Techniques of Scientific Management

Functional foremanship :— It is an extension of the principle of division of work on specialization to the shop floor. Each worker will have to take order from eight foremen in the related process of function of production.

Basic Aim of Functional Foremanship :— To separate planning functions from executive (operative) functions. Under the factory manager there was a planning in change and a production incharge.

• Under planning incharge, four personnel, namely, instruction card clerk, route clerk, time clerk and cost clerk and disciplinarian worked. These four personnel would draft instructors for the workers specify the route of production prepare time and cost sheet and ensure discipline, respectively.

• Under production incharge four personnel who would work were speed boss, gang boss, repair boss and inspector. They were responsible for timely and accurate completion of job, keeping machines and tools etc., ready for operation by workers, ensure proper working condition of machines and tools and chick the quality of work.

• Foremen should have intelligence, education, tact, judgment, special knowledge, energy, honesty and good health all these qualities cannot always be found in a single foreman. So, Taylor purposed eight specialists. CBSE_Class_12_Bussiness_Studies_management _Set_B_2

CBSE_Class_12_Bussiness_Studies_management _Set_B_2

Ans.4. Significance of Management Principles

Provide useful insights to manager : – Principle of managers provides useful insights to managerial behaviour and influence managerial practices. These principles will add to their knowledge ability and understanding of managerial situations and circumstances. Managers may apply inside principles to fulfill their task and responsibility. They enable the managers to learn from past mistakes and save time by solving recurring problems fast. So, management principles increase management efficiency.

Optimum Utilisation of Resources :— Management principles aim at optimum utilization of human and physical resources for the attainment of organizational goals. By optimum utilization, we learn that resources should be put to use in such a manner that they should give maximum benefit with minimum cost. e.g. — Science not rule of thumb suggest-every task should be done with minimum required efforts and energy.

Scientific Decisions Management principles enable the managers to approach various problems systematically & scientifically & keep them in taking scientific decisions to meet changing conditions. Management decisions taken on the basis of principles are free from bias and prejudice because they emphasize logic rather than blind faith.

Meeting Changing Environment requirements :— Management principles train the managers to adopt the changes in technology in right direction and at right level in the organization. Thus, although the management principles are general guidelines, yet they are modified by the manager to meet changing requirements of the environment.

Fulfilling social Responsibility :— Management principles not only act as guidelines for achieving organisational objectives but this principle also guide the managers to perform social responsibility. E.g.— principles of “Fair Remuneration’ insists on adequate salary to employee.

5. The contribution of Henry Fayol and F.W. Taylor to the field of management is explained in following table.

CBSE_Class_12_Bussiness_Studies_management _Set_B_3

Taylor’s principles of scientific management and Fayol’s principles of management are mutually complementary.

Reasons for this view are given below :—

1. The aim of the principles of both Taylor and Fayol is the same, i.e., to maximize efficiency of work and performance.

2. Both sets of principles suggest mutual cooperation between employer and employees.

3. Taylor and Fayol both advocate division of work and responsibility.

4. Both of them have contributed immensely to the knowledge of management, which has formed a basis for further practice by managers.

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Chapter 01 Nature and Significance of Management
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Chapter 02 Principles of Management
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Chapter 03 Business Environment
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Chapter 04 Planning
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Chapter 05 Organising
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Chapter 06 Staffing
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Chapter 07 Directing
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Chapter 08 Controlling
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CBSE Class 12 Business Studies Chapter 2 Principles of Management HOTS

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