CBSE Class 12 Business Studies Case Study Questions Principles of Management MCQs Set B

Read the source given below and answer the following questions :
Vishesh completed his MBA at a reputed business school in Lucknow. He was impressed by the principles and techniques of scientific management developed by F.W.Taylor. On completing his MBA, he wanted to apply Scientific Management in his family’s business of fast food chain of restaurants named ‘Burger Mania’. His main goal was to reduce costs with increased output. To begin with, he wanted to develop a standard method which would be followed throughout the organization. So, he investigated traditional methods through work study and unified the best practices. The standard method,i.e., the best way of doing the job was then developed taking into account all parameters right from the procurement of raw materials till the delivery of the final product to the customer. Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency. For this, he set up a special training unit called ‘Hamburger’ in Bengaluru where the workers were given the required training to learn the best method. At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements. The standard time and other parameters were determined on the basis of work study and Vishesh rewarded the workers for meeting the standard output . Now, ‘Burger Mania’ has standardized processes, raw material, time, machinery, trained staff and working conditions that ensure that the food they send out to their customers has the same high standards of excellence and level of quality in every chain or franchise. The application of Scientific Management to every aspect of restaurant operations led to ‘Burger Mania’s’ widespread success.

Question. Identify the principle of Scientific Management that helped Vishesh in investigating the traditional methods through work study and unifying the best practices. (Choose the correct alternative)
(a) Science not rule of thumb
(b) Method study
(c) Harmony not discord
(d) Cooperation not individualism

Answer: A

Question. ‘Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency . ’ Identify the principle of Scientific Management mentioned in the given statement.
(a) Cooperation not individualism
(b) Stability of personnel
(c) Harmony not discord
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer: D

Question. Identify the technique of Scientific Management used by Vishesh to reward the workers for meeting the standard output.
(a) Time study
(b) Motion study
(c) Differential piece system
(d) Functional foremanship

Answer: C

Question. ‘At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements.’ Identify the technique of Scientific Management mentioned in the given statement.
(a) Method study
(b) Motion Study
(c) Standardization and simplification of work
(d) Time study

Answer: B

Read the source given below and answer the following questions :
Taylor suggested that method of production should not be decided by rule of thumb method but all the methods must be tried in the organisation and the one which brings maximum benefits with minimum cost must be selected. To determine the best way there are certain parameters right from procurement of raw materials till the final product is delivered. Taylor developed the concept of assembly line by using method study. The objective of method study is to minimise the cost of production and maximise the quality and customer satisfaction. Ford motors used this concept very successfully.

Question. Taylor developed which concept by using method study?
(a) Six sigma
(b) Assembly line
(c) Just in time manufacturing
(d) None of the above

Answer: B

Question. As per above para which company used this concept successfully?
(a) Nike
(b) Adidas
(c) Ford
(d) Hyundai

Answer: C

Question. The objective of method study is
(a) to differentiate between efficient worker and inefficient worker.
(b) to maximise production.
(c) to minimise cost, maximise production and maximise quality.
(d) none of the above

Answer: C

Question. There is only one best method to do a thing is suggested in which scientific principle?
(a) Science not rule of thumb
(b) Harmony, not discord
(c) Cooperation, not individualism
(d) Development of workers to their greatest efficiency and prosperity

Answer: A

Read the source given below and answer the following questions :
Sakaar Foundation is an NGO (Non-Government organization) working to improve thelives of children with medical needs, the homeless and victims of natural disasters. Apart from donations in Cash, they collect dry ration, old clothes, shoes, toys, books, medicines, etc. from donors. At Sakaar Foundation’s office in Lucknow the material collected is segregated, classified and put in shelves and boxes that are numbered systematically. There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is a part of a particular team, depending on their competency and training. Each volunteer becomes specialized in their respective field , leading to efficient utilization of human effort. The management of Sakaar Foundation does not close its ears to any constructive suggestion made by the volunteers. There is an equal division of work and responsibility between volunteers and management. All day long the management works side by side with the volunteers helping ,  encouraging and smoothing the way for them.

Question. _____________ is considered as the father of scientific management. (Fill up the blank with the correct alternative)
(a) Peter Drucker
(b) F.W.Taylor
(c) Henri Fayol
(d) Abraham Maslow

Answer: B

Question. Identify the principle of scientific management adopted by Sakaar Foundation in the above case. (Choose the correct alternative) 
(a) Science not rule of thumb
(b) Cooperation not individualism
(c) Harmony not discord
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer: B

Question. Which principle of management means “a specific place for everything and everyone” as adopted by Sakaar Foundation? . (Choose the correct alternative)
(a) Discipline
(b) Order
(c) Initiative
(d) Scalar chain

Answer: B

Question. Identify the importance of principles of management that can be linked with the given case. (Choose the correct alternative)
(a) Fulfilling social responsibility
(b) Optimum utilization of resources and effective administration
(c) Meeting changing environment requirements
(d) Providing managers with useful insights into reality

Answer: A

Read the source given below and answer the following questions.
Ram is a class twelfth commerce student in a reputed school in Punjab. Mohan is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B.Sc course. During vacations when Mohan comes home, Ram shows him the businessstudies project that he is preparing on the topic ‘Principles of Management’. Mohan tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principles different from those of pure science.

Question. Management principles are taught in the MBA colleges also. This indicates which aspect of nature of management?
(a) Management as Science
(b) Management as Art
(c) Management as Profession
(d) Management as both science and art

Answer: C

Question. Management principles and scientific principles are :
(a) Same
(b) Different from each other
(c) Both (a) and (b)
(d) None of the above

Answer: B

Question. Management principles are derived or formed by
(a) will and wish of Manager
(b) overnight
(c) deep observation and repeated experiments
(d) none of the above

Answer: C

Question. Outline the feature of Principles of Management highlighted above.
(a) Pervasive
(b) Contingent
(c) Behavioural
(d) None of the above

Answer: A

Read the source given below and answer the following questions :
The application of principles of management is dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per the requirements .These principles are logical rather than blind faith. They are based on objective assessment of the situation. Management decision taken on the basis of principles are free from bias and prejudice. Managers often try to apply these principles in various day to day situations. violation of these principles can result in negative consequences in the organization. For example, Sushma and Suresh are working  in a Multinational company at the same level. Both are working hard and are happy with their employer. Suresh had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees knew about it. At the time of performance appraisal, the performance of Sushma was judged better than Suresh. Even then their boss Nikhil decided to promote Suresh stating that being a female Sushma will not be able to handle the complications of a higher post. This resulted in a great deal of dissatisfaction for Sushma. Nikhil gave priority to his own interest over the interest of the organization. Since he personally liked Suresh more than Sushma, hence he promoted Suresh instead of Sushma, ignoring the overall interest of the organization. On the basis of the above paragraph answer the following questions:

Question. “The application of principles of management is dependent upon the prevailing situation at particular point of time”. What is the nature of principles of management that is depicted by the above statement? (Choose the correct alternative) 
(a) Universal applicability
(b) Flexible
(c) Contingent
(d) Mainly behavioural

Answer: D

Question. ‘Decisions based on management principles are free from bias and prejudice’. This statement shows which importance of principles of management. (Choose the correct alternative)
(a) Scientific decisions
(b) Fulfilling social responsibility
(c) Providing managers with useful insights into reality
(d) Meeting changing environment requirements

Answer: A

Question. ‘Nikhil gave priority to his own interest over the interest of the organisation’. Which one of the following principles have been violated in the given case. 
(a) Order
(b) Equity
(c) Discipline
(d) Initiative

Answer: B

Question. Violation of which principle of management prompted Nikhil to further violate the managerial principle identified
(a) Division of work.
(b) Unity of direction
(c) Subordination of individual interest to general interest
(d) Centralization and decentralization

Answer: C

Read the source given below and answer the following questions.
Alpha Ltd. was engaged in business of garment manufacturing and selling its products under a popular brand. The demand for their product was increasing. In order to keep the market share in short run, the company directed its existing workforce to work overtime but this resulted in many problems. Due to increasing pressure of work the efficiency of workers declined. Sometimes workers worked under more than one superior. The departments which were producing one product were asked to produce more than one type of products. This resulted in lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of team was also reducing. Workers were feeling cheated and their morale was declining. The quality of garments started declining and market share decreased.

Question. “Workers were feeling cheated and their morale was declining”. This is related to which principle?
(a) Principle of Division of Work
(b) Principle of Equity
(c) Principle of Unity of Command
(d) Principle of Initiative

Answer: D

Question. “Departments which were producing one product were asked to produce more than one type of products”. This is violation of which principle?
(a) Principle of Discipline
(b) Principle of Unity of Direction
(c) Principle of Division of Work
(d) None of the above

Answer: C

Question. “The spirit of team was also reducing”. This indicates violation of which principle ?
(a) Principle of “Espirit De Corps”
(b) Principle of Unity of Command
(c) Principle of Unity of Direction
(d) Principle of Discipline

Answer: A

Question. “Sometimes workers worked under more than one superior.” This is violation of which principle of management?
(a) Principle of Discipline
(b) Principle of Unity of Command
(c) Principle of Unity of Direction
(d) Principle of Equity

Answer: B

Read the source given below and answer the following questions :
Principles of Taylor and Fayol are mutually complimentary. One believed that management should share the gains with the workers, while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Taylor also developed certain techniques of scientific management which aimed at improving the performance of the employees. One of his techniques aimed at differentiating between efficient and inefficient workers. The purpose behind this technique is to reward efficient workers and motivate inefficient workers to perform better. 

Question. Which principle of scientific management advocates complete agreement between the managers and workers?
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer: A

Question. Which principle of Henri Fayol is being referred to in the above paragraph? (Choose the correct alternative)
(a) Discipline
(b) Order
(c) Equality
(d) Remuneration of employees

Answer: D

Question. ‘One of his techniques aimed at differentiating between efficient and inefficient workers’. Name the technique of scientific management reflected in the given statement. (Choose the correct alternative)
(a) Functional foremanship
(b) Method study
(c) Differential piece wage system
(d) Standardisation and simplification of work

Answer: C

Question. Which principle of scientific management advocates complete agreement between the managers and workers?
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer: A

Question. Which principle of scientific management is the extension of the principle ? (Choose the correct alternative)
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Development of each and every person to his/her greatest efficiency and prosperity

Answer: B

Read the source given below and answer the following questions :
The principles of management are intended for all types of organisations, business as well as non-business, small as well as large, public as well as private sector, manufacturing as well as service sectors. They are not rigid prescriptions , which have to be followed absolutely. They can be modified by the manager as per the prevailing situation. Adherence to these principles adds to managers ’ knowledge, ability and understanding of managerial situations and circumstances. It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly . These principles of management hold great relevance and managers should try to follow them as far as possible . Often certain principles of management are violated and the entire organization suffers. For example, Raman is working as a production manager in CFL Ltd. which manufactures CFL bulbs. His subordinate Arjun designed a plan for cost reduction but it was not welcomed by Raman. Another employee gave some suggestions for improvement in design but it was also not appreciated by Raman. This resulted in dissatisfaction among the employees which further resulted in poor performance of the employees. On the basis of the above paragraph answer the following questions:

Question. ‘It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly’. According to this statement, the principles of management are important because they help in  …………………
(a) Meeting changing environment requirements
(b) Optimum utilization of resources and effective administration
(c) Providing managers with useful insights into reality
(d) Fulfilling social responsibility

Answer: C

Question. As Raman did not welcome the suggestions of other employees, which principle of management is violated by him?
(a) Discipline
(b) Order
(c) Unity of direction
(d) Initiative

Answer: D

Question. Identify the nature of principle of management discussed in the given para. (Choose the correct alternative)
(a) General guidelines
(b) Universal applicability
(c) Formed by practice and experimentation
(d) Contingent

Answer: B

Question. Identify the nature of management principles when it is said that principles of management can be modified as per the prevailing situation. (Choose the correct)
(a) Flexible
(b) Contingent
(c) Behaviour
(d) Absolute

Answer: A