CBSE Class 12 Business Studies Principles of Management MCQs Set H

Question. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management.
(a) Discipline
(b) Equity
(c) Division of work
(d) Order
Answer: (c)

Question. According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction
Answer: (b)

Question. Name the principle of management suggested by Henri Fayol, which advocates that, “there should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility.
(b) Esprit De Corps
(c) Order
(d) None of the above
Answer: (d)

Question. According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity
Answer: (c)

Question. Through this principle of management, Henri Fayol guides the managers to exhibit exemplary behaviour and advises that they should not fall into temptation of misusing their powers for personal benefit at the cost of general interest of the organisation. Which principle of management is being described in the above statement?
(a) Remuneration of employees
(b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest
(d) Equity
Answer: (c)

Question. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps
Answer: (a)

Question. The principles of pure science are considered to be _________ in nature.
(a) Flexible
(b) Rigid
(c) Creative
(d) None of the above
Answer: (b)

Question. The principles of management enhance the understanding of the relationship between human and material resources for the achievement of organisational goals. Identify the feature of the principles of management being described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural
Answer: (b)

Question. Which principle of management aims at securing the loyalty and devotion of the employees by giving them fair and just treatment?
(a) Unity of direction
(b) Equity
(c) Order
(d) Unity of command
Answer: (b)

Question. Sigma Ltd. is a large company manufacturing electric motors. The company has several departments- Production, Marketing, Finance, and HR. Mr. Shashank, CEO of the company set the target sales of \( ₹10 \) crore in a month. To increase the sales, the marketing manager, Mr. Ishaan insists on offering \( 10\% \) discount to customers. But the finance manager, Mr. Mohak does not approve such a discount as it would mean loss of revenue. Because of dual subordination, the sales manager, Mr. Anshik could not achieve the sales target. Which principle of management has been overlooked by this company?
(a) Division of Work
(b) Coordination
(c) Unity of command
(d) Unity of Direction
Answer: (c)

Question. In today’s dynamic business environment, companies are specialising in their core competency and divesting non- core businesses. In this context, one may cite the decision of Hindustan Unilever limited in divesting non-core businesses of chemicals and seeds. Some companies are outsourcing their non-core activities like share-transfer management and advertising to outside agencies. So much so, that even core processes such as \( R\&D \), manufacturing and marketing are being outsourced today. Thus, the significance of ‘Business Process outsourcing’ (BPO) and ‘Knowledge Process outsourcing’ (KPO) has increased. Identify the significance of principles of management highlighted above.
(a) Providing managers with useful insight into reality
(b) Optimum utilisation of resources
(c) Meeting changing requirements
(d) Scientific decisions
Answer: (c)

Question. Employees in an organisation deserve fair and just remuneration. But what is just and fair is determined by multiple factors, such as contributions of the employee, paying capacity of the employer and also prevailing wage rate for the occupation under consideration. Identify the characteristics of principles of management highlighted above.
(a) Universal Applicability
(b) Flexible
(c) Contingent
(d) Behavioural
Answer: (c)

Question. A worker directly contacts the CEO of the company with a complaint regarding working conditions in the factory. Which of the following principles is being violated here?
(a) Unity of command
(b) Unity of direction
(c) Scalar chain
(d) Discipline
Answer: (c)

Question. Principles of Management are not:
(a) Applicable only in large firms
(b) Formed by practice and experience of managers
(c) Flexible
(d) Contingent
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: (c)

Question. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without paying any interest in the organisational objectives. Identify the principle of management which has been overlooked by this organisation.
(a) Subordination of Individual interest to general interest.
(b) Equity
(c) Centralisation
(d) Authority and Responsibility
Answer: (a)

Question. The manager of an organisation knows that one of the newly appointed workers belongs to the reserved category and he always undermines that employee’s performance. Identify the principle of management violated by the manager.
(a) Division of work
(b) Discipline
(c) Esprit de corps
(d) None of these
Answer: (d)

Question. If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated?
(a) Equity
(b) Order
(c) Initiative
(d) Discipline
Answer: (b)

Question. Which of the following statement is related to division of work
(a) Resources should be divided equally among departments
(b) Work should be divided into smaller parts
(c) Subordinates should be divided among superiors
(d) Departments should be divided into sub sections
Answer: (b)

Question. The Delhi Government imposes ban on use, storage, sale and manufacture of plastic after considering its adverse impact on environment and ecology. Which principle of Fayol is mentioned in the above decision.
(a) Initiative
(b) Division of work
(c) Esprit de corps
(d) None of these
Answer: (d)

Question. Rishab, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other departments. Which principle of management is being overlooked?
(a) Unity of command
(b) Remuneration of employees
(c) Scalar chain
(d) Gang plank
Answer: (c)

Question. The sales manager assigned a target of selling 40 RO water Purifiers in a month to a group of 10 sales executives. They mutually decided to sell 4 purifiers each. However, after selling 1 purifier, Kshitij (one of the sales executives) met with an accident. The other executives did not pay any attention to the remaining target of Kshitij and concentrated on their individual sales target. At the end of the month, only 37 purifiers could be sold. Identify the principle of management violated in the given case?
(a) Esprit de corps
(b) Stability of personnel
(c) Remuneration of employees
(d) Equity
Answer: (a)

Question. Match the following by choosing the correct option.
Column A
(i) Each work is done by a trained specialist
(ii) Judicious application of penalties
(iii) Dual subordination should be avoided
(iv) One head and one plan
Column B
(a) Unity of Command
(b) Unity of Direction
(c) Division of work
(d) Discipline
(a) (i)-(a); (ii)-(b); (iii)-(c); (iv)-(d)
(b) (i)-(b); (ii)-(a); (iii)-(d); (iv)-(c)
(c) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(a); (iv)-(b)
Answer: (c)

Question. Match the following by choosing the correct option.
Column A
(i) Affects an individual employee
(ii) Affects the entire organisation
(iii) Formal lines of Authority between superiors and Subordinates
(iv) Concentration of decisions making authority
Column B
(a) Scalar chain
(b) Centralisation and Decentralisation
(c) Unity of Direction
(d) Unity of Command
(a) (i)-(a); (ii)-(b); (iii)-(c); (iv)-(d)
(b) (i)-(b); (ii)-(a); (iii)-(d); (iv)-(c)
(c) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(a); (iv)-(b)
Answer: (d)

Question. Match the following by choosing the correct option.
Column A
(i) Manager should replace ‘I’ with ‘We’ in all his conversations with workers.
(ii) Employees should not be transferred frequently.
(iii) Right material should be placed at the right place
(iv) No worker should be unduly favoured
Column B
(a) Equity
(b) Order
(c) Esprit de corps
(d) Stability of personnel
(a) (i)-(c); (ii)-(d); (iii)-(b); (iv)-(a)
(b) (i)-(b); (ii)-(a); (iii)-(d); (iv)-(c)
(c) (i)-(a); (ii)-(c); (iii)-(d); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(a); (iv)-(b)
Answer: (a)

Question. In which two departments did Taylor divide the work of a factory manager?
(a) Department of Planning and Production
(b) Department of Planning and Finance
(c) Department of Planning and Marketing
(d) Department of Planning and Research
Answer: (a)

Question. Under fatigue study:
(a) Tiring work is given to employees
(b) Employee’s movements are increases
(c) Record is maintained for time consumed on employee’s work
(d) Rest is given to employees during work
Answer: (d)

Question. According to Taylor, the Gang Boss works under the planning authority. (True/False)
Answer: False

Question. According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above
Answer: (b)

Question. According to this principle of scientific management, “Scientific management has for its foundation the firm conviction that true interest of the management and workers are one and the same; the prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa.”
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above
Answer: (c)

Question. According to this principle of scientific management, the employees should be rewarded for their suggestions which results in substantial reduction in the cost.
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above
Answer: (b)

Question. According to Taylor, “each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the above
Answer: (c)

Question. Sharing of gains with the workers is the objective of the principle:
(a) Harmony, not discord
(b) Science, Not rule of Thumb
(c) Cooperation, Not Individualism
(d) Development of each and every person to his or her greatest efficiency
Answer: (a)

Question. Which technique of Taylor differentiates between an efficient worker and an inefficient worker?
(a) Time Study
(b) Functional foremanship
(c) Fatigue study
(d) Differential Piece wage system
Answer: (d)

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) Method Study
(c) Fatigue Study
(d) Motion Study
Answer: (b)

Question. The Basic aim of Functional foremanship is:
(a) Not to provide free time to workers
(b) To separate Top level management from Chief Executive officers
(c) To separate planning functions from executive functions
(d) Not to divide the work
Answer: (c)

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. What did Taylor want to standardise?
(a) Material
(b) Machine and tools
(c) Methods
(d) All of the above
Answer: (d)

Question. Scientific management brings
(a) Social change
(b) Economic change
(c) Mental change
(d) Industrial change
Answer: (c)

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. 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: (b)

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: (a)

Question. Fredrick Winslow Taylor’s Mechanism of Scientific Management includes
(a) Scientific task setting
(b) Planning the task
(c) Standardisation of tools and equipments
(d) All of the above
Answer: (d)

Question. What is meant by Simplification as a technique of Scientific management?
(a) Making simple methods of doing a job
(b) Putting an end to the unnecessary types, qualities, sizes etc.
(c) Simplification of selling techniques
(d) Simplifying the production techniques.
Answer: (b)

Question. Even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed. This can result in a tremendous saving of human energy as well as wastage of time and materials. Which of the following principles of scientific management emphasize the above situation?
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Initiative
(d) Development of each person to his or her greatest efficiency.
Answer: (b)

Question. Which of the technique of scientific management violates the Principle of Unity of Command
(a) Differential piece wage system
(b) Fatigue study
(c) Functional foremanship
(d) Simplification of work
Answer: (c)

Question. Taylor was of the view that the foundation of job efficiency is laid down in the very process of staff selection. (True/False)
Answer: True

Question. The function of speed boss is to keep the machines and tools in working condition. (True/False)
Answer: False

Question. The job of ___________________ is to see whether all the workers are doing their respective job as per the speed laid down or not.
Answer: Speed Boss

Question. The objective of ______________ is to decide the required number of workers. (Time study/Fatigue Study)
Answer: Time study