CBSE Class 12 Business Studies Principles of Management MCQs Set G

Question. ‘Principles of Management are not rigid prescriptions, which have to be followed absolutely’. Identify the nature of management principles discussed in the given statement.
(a) General Guidelines
(b) Universal
(c) Flexible
(d) Contingent
Answer: (c)

Question. ‘The application of principles of management is dependent upon the prevailing situation at a particular point of time’. Which nature of management principle is mentioned in the given statement.
(a) Behavioural
(b) Contingent
(c) Flexible
(d) Universal
Answer: (b)

Question. Which principle of Henri Fayol states that ‘there should be one and only one boss for every individual employee.
(a) Discipline
(b) Unity of command
(c) Unity of direction
(d) Division of work
Answer: (b)

Question. Violation of which of the following principle of Henri Fayol is known as gang plank.
(a) Remuneration of employees
(b) Scalar Chain
(c) Centralisation and Decentralisation
(d) Discipline
Answer: (b)

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

Question. Which principle of scientific management is considered as an extension of principle of ‘Harmony not discord.’ (Choose the correct alternative)
(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. ‘Management principles help the managers in better understanding of managerial situations and circumstances’. Which significance of principles of management is highlighted in the given statements.
(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. 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 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 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
Answer: (c)

Question. Raj, a Manager decided that there will be separate departments for finance, marketing, production and sales in his company. By doing so he is following a principle of Management. Identify the principle of management followed by Raj in the given situation. (Choose the correct alternative)
(a) Division of work
(b) Centralisation and decentralisation
(c) Order
(d) Unity of command
Answer: (a)

Question. XYZ Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work and responsibility between workers and Management. The management even takes workers into confidence before taking important decisions. All the workers are satisfied as the behaviour of the management is very good. From the following options identify the principle of management discussed in the given case.
(a) Initiative
(b) Science not rule of thumb
(c) Cooperation not individualism
(d) Equity
Answer: (c)

Question. Simco Ltd. is manufacturing files and folders from the old clothes to discourage use of plastic files and folders. For this they employ people from nearby villages where very less job opportunities are available. An employee, Atul, designed a plan for the cost reduction but it was not welcomed by the production manager. Another employee gave the same suggestion for improvement in design, but it was also not appreciated by the production manager. From the following alternatives choose the principle of management described in the above para.
(a) Equity
(b) Initiative
(c) Order
(d) Discipline
Answer: (b)

Question. Which technique of scientific Management helps in establishing interchangeability of manufactured parts and products. (choose the correct alternative)
(a) Standardisation of work
(b) Division of work
(c) Functional foremanship
(d) Motion study
Answer: (a)

Question. Which technique of scientific management is an extension of the principle of division of work and specialisation. (Choose the correct alternative)
(a) Standardisation of work
(b) Functional foremanship
(c) Simplification of work
(d) Differential piece wage system
Answer: (b)

Question. A firm is manufacturing Apparels and is running under heavy losses. To recover from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost. The management also asked the workers to work overtime without any additional payment and promised to increase the wages of workers after achieving its mission. Within a short period the company started earning profits because both the management and the workers honoured their commitments. From the following options, identify principle of management described in the above para.
(a) Discipline
(b) Cooperation not individualism
(c) Esprit de corps
(d) Order
Answer: (a)

Question. 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
Answer: (d)

Question. 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
Answer: (c)

Question. Praveen is working as a production manager in a factory. There is no class conflict between the management and workers. The working conditions are very good. The company is earning huge profits. As a policy matter, management is sharing the gains with the workers because they believe that prosperity of the company cannot exist for a long time without the prosperity of the employees. From the following alternatives, Identify the principle of management described in above para.
(a) Esprit De corps
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Harmony not discord
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 in the given statement. (Choose the correct alternative)
(a) Science not rule of thumb
(b) Harmony not discard
(c) Cooperation not individualism
(d) Division of work
Answer: (a)

Question. ‘Principles of management are at the core of management theory’. Which importance of principles of management is highlighted in the above statement.
(a) Optimum utilisation of resources and effective administration
(b) Scientific divisions
(c) Meeting changing environment requirements
(d) Management training, education and research
Answer: (d)

Question. Manoj is a managing director in a company. He believes that employee turnover should be minimised to maintain organisational efficiency. He is of the view that personnel should be selected and appointed after due and rigorous procedure and once selected they should be kept at their post for a minimum fixed tenure. From the following options, choose the management principle followed by Manoj in the given case.
(a) Remuneration of employees
(b) Stability of personnel
(c) Centralisation and discentralisation
(d) Discipline
Answer: (b)

Question. “Any one can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfil in the statement being discussed above.
(a) Ethical code of Conduct
(b) Professional Association
(c) Restricted Entry
(d) Service Motive
Answer: (c)

Question. ‘The application of Principles of management is dependent upon the prevailing situation at a particular point of time’. Identify the nature of management principles mentioned in the given statement. (Choose the correct alternative)
(a) Universal
(b) Flexible
(c) Contingent
(d) Mainly behavioural
Answer: (c)

Question. Which of the following techniques of scientific management helps in differentiating efficient and inefficient workers?
(a) Time study
(b) Motion study
(c) Functional foremanship
(d) Differential piece wage system
Answer: (d)

Question. Rahul, a manager decided that there will be separate departments for finance, marketing, production and sales in his company. By doing so he is following a principle of management. Which of the following principles of management is followed by Rahul in the given case?
(a) Division of work
(b) Equity
(c) Order
(d) Unity of direction
Answer: (a)

Question. XYZ Ltd. is producing electricity from domestic garbage. There is almost equal division of work and responsibility between workers and management. The management even takes workers into confidence. All the workers are satisfied as the behaviour of management is very good. State the principle of management described in the above para. (Choose the correct alternative)
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Authority and responsibility
Answer: (b)

Question. Which of the following is not a principle of management given by Taylor?
(a) Science not rule of thumb
(b) Functional foremanship
(c) Maximum not restricted output
(d) Harmony not discord
Answer: (b)

Question. ‘The principles of management are not rigid prescriptions, which have to be followed absolutely.’ Which nature of principles of management is highlighted in the given statement?
(a) General guidelines
(b) Universal applicability
(c) Flexible
(d) Contingent
Answer: (c)

Question. ................. is the principle of management according to which a manager should replace ‘I’ with ‘we’ in all his conversations with workers.
(a) Division of work
(b) Scalar chain
(c) Esprit de corps
(d) Cooperation not individualism
Answer: (c)

Question. Principles of management are not ................. . (Fill in the blank choosing the correct alternative)
(a) Universal
(b) Flexible
(c) Behavioural
(d) Absolute
Answer: (d)

Question. ................. involves a change in the attitude of workers and management towards and another from competition to cooperation.
(a) Cooperation not individualism
(b) Mental revolution
(c) Unity of direction
(d) Unity of command
Answer: (b)

Question. Arun is a managing director in a company. He believes that employees turnover should be minimised to maintain organisational efficiency. He is of the view that personnel should be selected and appointed after due and rigorous procedure and once selected they should be kept at their post for a minimum fixed tenure. From the following options, choose the management principle followed by Arun in the given case.
(a) Remuneration of employees
(b) Stability of personnel
(c) Centralisation and decentralisation
(d) Discipline
Answer: (b)

Question. Aqualife Ltd. has decided to become the market leader in selling water bottles. The company decides to take care of all the departments. The top management decides to set standards for all the business activities right from the purchase of raw material to manufacturing and packaging of the water bottles. Which technique of scientific management is used here?
(a) Simplification
(b) Standardisation
(c) Differential piece wage system
(d) Method study
Answer: (b)

Question. 15 new employees have started their career in Bhagwati Enterprises Ltd. The employees are new to the environment of the organisation and have no idea about the demands of the new job. The management has decided to give them three months of time to show their results. Which principle of Henri Fayol is mentioned here?
(a) Stability of personnel
(b) Discipline
(c) Order
(d) Unity of Direction
Answer: (a)

Question. School time is a company engaged in manufacturing stationery items, school bags and school uniforms. The company has the same unit producing all the three products. This leads to confusion among the employees regarding the reporting as well as differentiation of work. Which principle of Henri Fayol is violated here.
(a) Unit of Command
(b) Unity of Direction
(c) Incentive
(d) Order
Answer: (b)

Question. Match the Nature of principles of management in Column I with their respective Explanation in Column II.
Column I
A. Universal Applicability
B. Flexible
C. General guidelines
Column II
(i) Principles of management are not rigid prescriptions.
(ii) Principles of management are intended to apply to all types of organisations.
(iii) Management principles do not provide readymade strait jacket solutions to all managerial problems.
(a) A-(i), B-(iii), C-(ii)
(b) A-(i), B-(ii), C-(iii)
(c) A-(ii), B-(i), C-(iii)
(d) A-(iii), B-(i), C-(ii)
Answer: (c)

Question. ‘Coordination unifies unrelated or diverse interests into purposeful work activity.’ Which characteristic of coordination is discussed in the given statement?
(a) Coordination is a continuous process.
(b) Coordination ensures unity of action.
(c) Coordination is an all pervasive function.
(d) Coordination integrates group efforts.
Answer: (d)

Case Based 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. 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) Universal applicability

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) Behavioural
(d) Absolute
Answer: (a) Flexible

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) Providing managers with useful insights into reality

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) Initiative

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. On the basis of the above paragraph answer the following questions:

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) Remuneration of employees

Question. Which principle of scientific management advocates complete agreement between the managers and workers? (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: (a) Harmony not discord

Question. Which principle of scientific management is the extension of the principle (identified in part (ii))? (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) Cooperation not individualism

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) Differential piece wage system

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) Contingent

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) Scientific decisions

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) Equity

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

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. On the basis of the above paragraph answer the following questions:

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) F.W.Taylor

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) Cooperation not individualism

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) Order

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) Fulfilling social responsibility

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. On the basis of the above paragraph, answer the following questions:

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

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. (Choose the correct alternative)
(a) Method study
(b) Motion Study
(c) Standardization and simplification of work
(d) Time study
Answer: (b) Motion Study

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) Science not rule of thumb

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. (Choose the correct alternative)
(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) Development of each and every person to his/her greatest efficiency and prosperity.

Amar is the Managing director in a garment manufacturing company. He is an experienced manager and firmly believes in application of principles of management in day to day managerial situations. He believes that management principles are flexible to adapt to dynamic business environment. He believes in producing more and better work for the same effort. He always hires specialists for various job positions. This results in efficient and effective output. Hence the organization has separate departments for finance, marketing, production and human resource. Being a management expert, Amar believes in the concept of having one and only one boss for every individual employee. He always aims at avoiding dual subordination within the organization. Under his direction and supervision, his company has achieved new heights within a short span of time. As the Managing director, he formulates policies that aims at minimizing employee turnover and maintaining organizational efficiency. Hence his organization selects personnel after due and rigorous procedure, and once a person is selected, he is kept at his post for a minimum fixed tenure. This helps in improving the overall efficiency of the organization. On the basis of the above paragraph, answer the following questions:

Question. Identify which importance of principles of management is mentioned here? (Choose the correct alternative)
(a) Providing managers with useful insights into reality
(b) Meeting changing environment requirements
(c) Fulfilling social responsibility
(d) Scientific decisions
Answer: (b) Meeting changing environment requirements

Question. Identify the principle of management that suggests setting up of separate departments for finance, marketing, production etc. within an organization. (Choose the correct alternative)
(a) Discipline
(b) Centralization and Decentralisation
(c) Division of work
(d) Authority and responsibility
Answer: (c) Division of work

Question. ‘He always aims at avoiding dual subordination within the organization’. Name the principle of management that aims at avoiding dual subordination. (Choose the correct alternative)
(a) Order
(b) Equity
(c) Unity of direction
(d) Unity of command
Answer: (d) Unity of command

Question. “As a Managing Director, he formulates policies that aim at minimizing employee turnover and maintaining organizational efficiency”. Which principle of management Amar is following? (Choose the correct alternative)
(a) Order
(b) discipline
(c) Equity
(d) Stability of personnel
Answer: (d) Stability of personnel

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 \( 5\% \) 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 solving the conflicts among employees. On the basis of the above paragraph, answer the following questions.

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) Division of work

Question. “The sales persons are allowed to close a deal with a buyer by giving a maximum of \( 5\% \) 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) Centralization and Decentralisation

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) Discipline

Question. Aditi tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. Which principle is being violated here?
(a) Discipline
(b) Order
(c) Equity
(d) None of these
Answer: (c) Equity

Ramesh is day and night involved in the organizing of his business. He has given job to every employee based upon his capability and experience. As there has been proper division of work and systematic allocation of tasks the productivity is increasing. The size of the company has increased in the recent past. The related activities which are similar in nature are grouped together. Everything was going well in the organisation until recently. The company has recently seen a deficit of exchange of information across functionally different departments. On the basis of the given paragraph, answer the following questions:

Question. Which importance of organizing is highlighted in be above case:
(a) Optimum utilisation of resources
(b) Effective administration
(c) Benefits of specialisation
(d) Expansion and growth
Answer: (c) Benefits of specialisation

Question. Now the related activities which are similar in nature are grouped together. Which step of organising is highlighted in the above case:
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing authority relationship
Answer: (b) Departmentalisation

Question. The company has recently seen a deficit of exchange of information across functionally different departments. Which one disadvantage of functional structure is highlighted above:
(a) Function allocative
(b) Conflict of interests
(c) Inflexibility
(d) Problems in coordination
Answer: (d) Problems in coordination

Question. Identify the type of organisational structure which facilitates occupational specialisation.
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure
Answer: (a) Functional structure

Ganesh Leathers is a shoe manufacturing company. The firm has decided to increase the productivity of its workers. For this the firm has chalked out a plan. It will be hiring operational managers to work at the lower levels of management. It has decided to keep eight managers over a group of workers. Thus every worker has to report to all these eight managers. The managing director of the company Mr. Ganesh Tiwari is of the view that the principles of management are guidelines to action but do not provide readymade straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. According to him it is necessary to differentiate between efficient and inefficient workers. Hence, he introduced specific rate of wage payment for those who performed above standard and for those who performed below standard. The basic idea behind is to improve the productivity of all the workers. On the basis of the above paragraph, answer the following questions:

Question. Which technique of scientific management is employed by Ganesh leathers by keeping eight managers.
(a) Time study
(b) Motion study
(c) Functional foremanship
(d) Standardisation of work
Answer: (c) Functional foremanship

Question. Which principle of Henri Fayol is followed by the company in the above case.
(a) Unity of direction
(b) Unity of command
(c) Initiative
(d) Discipline
Answer: (b) Unity of command

Question. Which nature of principles of management is mentioned in the given para.
(a) Universal applicability
(b) Flexibility
(c) General guidelines
(d) Contingent
Answer: (c) General guidelines

Question. Which technique of scientific management is used by the firm to differentiate between efficient and inefficient workers.
(a) Time study
(b) Motion study
(c) Differential piece rate system
(d) method study
Answer: (c) Differential piece rate system

Care Ltd. is a well known cement company in India. It is able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover has increased manifolds over the years. The rate of profitability of the business is also creditable. The employees of the company are happy and satisfied. The overall pay and compensation paid by the company is fair to both- employees and the organisation. There is complete cooperation between the workers and management. The spirit of competition has been replaced by the spirit of cooperation within the organisation. As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the rural areas. On the basis of the above paragraph, answer the following questions:

Question. ‘It is able to earn adequate revenue to cover costs’. Which organisational objective is achieved by the company in the given statement.
(a) Growth
(b) Survival
(c) Profit
(d) Diversification
Answer: (b) Survival

Question. Name the principle of Fayol followed by the company in the given case.
(a) Discipline
(b) Order
(c) Remuneration of employees
(d) Unity of direction
Answer: (c) Remuneration of employees

Question. Which principle of scientific management is followed by the company in the given case:
(a) Scientific not rule of thumb
(b) Harmony not discord
(c) Cooperation not individualism
(d) Development of each and every person to his or her greatest efficiency and prosperity.
Answer: (c) Cooperation not individualism

Question. Which importance of management is discussed in the given case.
(a) Management increases efficiency
(b) Management helps in the development of society
(c) Management creates a dynamic organisation
(d) Management is an intangible force
Answer: (b) Management helps in the development of society