CBSE Class 12 Business Studies Principles of Management MCQs Set F

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

Question: 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
Answer: b

Question: Harmony Not discord principle is concerned with
a) Management should share the gain of the company with workers
b) Investigation of Task
c) Scientific inquiry
d) Observation and Analysis
Answer: a

Question: Which principle of management suggest the concept of replacing I with we.
a) Order
b) Equity
c) Espirit De Corp
d) None of the options
Answer: c

Question: According to Henri Fayol ‘People and materials must be in suitable place at appropriate time for maximum efficiency’. Identify the managerial principle discussed in the given statement.
a) Discipline
b) Scalar Chain
c) Unity of Direction
d) Order
Answer: d

Question: Which of the following techniques of scientific management aims at differentiating between efficient and inefficient workers.
a) Differential piece wage system
b) Time Study
c) Standardisation and simplification of work
d) Method study
Answer: a

Question: Which of the following elements should be kept in mind while determining fair remuneration?
a) Cost of living
b) Demand of labourers
c) Qualification
d) All of these
Answer: d

Question: Taylor in one of his principles of scientific management suggested ‘investigation of traditional methods through work study, unifying the best practices and developing a standard method, which would be followed throughout the organisation.’ Which principle of scientific management is discussed?
a) Science not rule of thumb
b) Harmony not discard
c) Cooperation not individualism
d) Division of work
Answer: a

Question: Name and explain that principle of Fayol which suggests that communication from top to bottom should follow the official lines of command.
a) Remuneration of Employees
b) Centralization and Decentralization
c) Principle of Scalar Chain
d) Unity of Direction
Answer: c

Question: Science not rule of thumb principle is given by _______.
a) Hanry Fayol
b) L M Prasad
c) F W Taylor
d) L H Haney
Answer: c

Question: In which year Taylor became an Engineer from a worker?
a) 1878
b) 1884
c) 1901
d) 1903
Answer: b

Question: Raj, a Manager decided that there will be separate departments for finance, marketing, production and sales in his company. Identify the principle of Management followed.
a) Division of work
b) Centralisation and decentralisation
c) Order
d) Unity of command
Answer: a

Question: The principles of management are significant because of
a) Increase in efficiency
b) Initiative
c) Optimum utilisation of resources
d) Adaptation to changing technology
Answer: a

Question: Henri Fayol Period was
a) 1841-1925
b) 1851-1925
c) 1861-1925
d) 1841-1926
Answer: a

Question: ‘Management principles help the managers in better understanding of managerial situations and circumstances’. Which significance of principles of management is highlighted?
a) Optimum utilisation of resources and effective administration
b) Providing managers with useful insights into reality
c) Scientific decisions
d) Fulfilling social responsibility
Answer: b

Question: Henri Fayol was a
a) French Doctor
b) Mechanical engineer
c) Russian Mechanical engineer
d) All the options
Answer: b

Question: Which principle of Henri Fayol states that workers should be encouraged to develop and carry out their plans for improvements.
a) Esprit de corps
b) Order
c) Initiative
d) Equity
Answer: c

Question: Which is determines the standard time taken to perform a well-defined job.
a) Time Study
b) Motion study
c) Fatigue study
d) Method study
Answer: a

Question: Arun, a managing director, believes employees should be selected rigorously and retained for a fixed tenure. Which principle is he following?
a) Remuneration of employees
b) Stability of personnel
c) Centralisation and decentralisation
d) Discipline
Answer: b

Question: A firm shifted its unit to a low-cost labour area and promised higher wages after success, both management and workers cooperated. Which principle is described?
a) Discipline
b) Cooperation not individualism
c) Esprit de corps
d) Order
Answer: a

Question: Which of the following are principles of management given by Fayol?
a) Centralisation and decentralisation
b) Unity of direction
c) Equity
d) All the options
Answer: d

Question: Which of the following statements justifies the principle ‘Cooperation, not individualism’?
a) Management and workers should transform their thinking towards each other.
b) There should be an equal division of work between management and workers
c) Industrial efficiency depends to a large extent on personnel competencies
d) There is only one best method to maximise efficiency
Answer: b

Question: 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
Answer: c

Question: Which principle of scientific management is considered as an extension of principle of ‘Harmony not discord’?
a) Science not rule of thumb
b) Equity
c) Coordination not individualism
d) Development of each and every person to his or her greatest efficiency and prosperity
Answer: c

Question: Assertion (A) Each group of activities having the same objective must have ‘one head and one plan’.
Reason (R) Principle of “unity of command”.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
Answer: c

Question: Assertion (A): According to the principle of cooperation, not individualism all the activities done by different people must be carried on with a spirit of mutual cooperation.
Reason (R): Workers and managers should separately determine the standards. In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Answer: c

Question: Assertion (A): Simplification putting an end to the unnecessary types, qualities, sizes etc.
Reason (R): Simplification effects economy in the use of machine In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Answer: a

Question: Assertion (A) The principles of management are yet to be evolved.
Reason (R) Principles of Management are said to be evolutionary in nature as these principles have evolved over a long period of time with continuous practice and experimentation.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
Answer: d

Question: Assertion (A): Differential piece wage system is a technique which does not differentiate between efficient and less efficient workers.
Reason (R): Differential piece wage system acts as an incentive for less efficient workers to be motivated to perform better. In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
Answer: d

Fill In The Blanks:

Question: Authority is of two types official and__________ authority.
Answer: personal

Question: According to __________principle of Fayol ,every subordinate must have only 1 boss.
Answer: unity of command

Question: The principle of division of work given by Fayol states that __________ should be divided into small tasks.
Answer: work

Question: Formal lines of authority from highest to lowest ranks are known as __________ .
Answer: Scalar chain

Question: The concentration of decision making authority in the hands of management is known as __________.
Answer: Centralisation

Question: The objective of __________ study is to determine the one best way to perform the job.
Answer: method

Question: Functional foremanship is extension of __________ principle of Fayol.
Answer: division of work

Question: Unity of Commands resembles __________ organization.
Answer: military

Question: Under differential piece rate plan, efficient and inefficient workers are paid at __________ rates.
Answer: different

Question: In general, __________ organization have more decentralisation.
Answer: large/big

True /False:

Question: Principles of management provide an accurate cause and effect relationship.
Answer: False

Question: Fayol’s book, ‘General and Industrial Management’ was published in English in the year 1949.
Answer: True

Question: Fayol had the view that one group should have one head and one plan.
Answer: True

Question: Managerial principles are behavioural, therefore they apply on human behaviour only.
Answer: False

Question: In case of emergency where a worker can even contact CEO directly.
Answer: True

Question: Fayol is known as father of scientific management.
Answer: False

Question: Remuneration principle states that overall pay and compensation to both males and females should be same.
Answer: False

Question: Principle of management may be used by managers as Straightjacket solution for the managerial problems faced by them.
Answer: False

Question: Gang Plank permits horizontal communication.
Answer: True

Question: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time.
Answer: True

Match the following:

Question: On the basis of features of principles of management
(a) Cause and effect relationship            (i) They do not provide readymade solution for managerial problem
(b) General guide lines                           (ii) Application of principles of management are not dynamic in nature
                                                              (iii) They can be used in similar situation large number of cases.
Answer: a (iii) b (i)

Question: Match the following on the basis of the meaning of
(a) Formal lines of authority from highest to lowest                  (i) Decentralization
(b) Systematic dispersal of decision making authority             (ii) Centralization
                                                                                                (iii) Division of Work
                                                                                                (iv) Scalar Chain
Answer: a (iv) b (i)

Question: Match the following on the basis of effect
(a) Division of work                                     (i) ensures congenial atmosphere
(b) Discipline                                              (ii) Employees suggestion system
(c) Remuneration of Employees                (iii) Invites penalty if violated
                                                                  (iv) Specialization
Answer: a-(iv) b-(iii) c-(i)

Question: Match the following on the basis of meaning
(a) One and only boss for every employee                         (i) Order
(b) A place for every thing and everything in its place        (ii) Division of work
                                                                                          (iii) Unity of command
                                                                                          (iv) Initiative
Answer: a-(iii) b-(i)

Question: Match the following on the basis of violating effect
(a) conflicts among superiors                                                 (i) Remuneration of employee
(b) poor relation between workers and management            (ii) Principle of order
(c) Wastage of time & efforts                                                (iii) Authority and responsibility
(d) Abuse of managerial power                                             (iv) Division of work
Answer: a-(iv) b-(i) c-(ii) d-(iii)