CBSE Class 12 Business Studies Principles of Management Worksheet Set E

NCERT Solutions for Class 12 Business Studies Chapter 2 Principles of Management Objective Type Questions

Question. Which of the following statement is false with respect to principles of management?
(a) The principles of management are formed by experience and collective wisdom of managers as well as experimentation.
(b) The principles of management are not rigid prescriptions, which have to be followed absolutely.
(c) Management principles aim at influencing behaviour of human beings.
(d) The application of principles of management is not contingent or dependent upon the prevailing situation at a particular point of time.
Answer: D

Question. Principles of management are not :
(a) Universal
(b) Flexible
(c) Absolute
(d) Behavioural 
Answer: C

Question. Which study is the study of movements:
(a) Method
(b) Motion
(c) Time
(d) None of these
Answer: B

Question. Which of the following statement is false?
(a) Functional foremanship is an extension of the principle of division of work and specialisation to the shop floor.
(b) Under planning incharge four personnel namely speed boss, gang boss, repair boss, and inspector would work.
(c) Time Study determines the standard time taken to perform a well-defined job.
(d) Cooperation, Not Individualism is an extension of principle of ‘Harmony not discord.  
Answer: B

Question. Fayol's book was published in English as ‘General and Industrial Management’ in :
(a) 1949
(b) 1947
(c) 1918
(d) 1933 
Answer: A

Question. Which of the following Fayol's Principle of management states that there should be one and only one boss for every individual employee.
(a) Unity of direction
(b) Order
(c) Unity of command
(d) Division of work 
Answer: C

Question. Gang plank is a term associated with which principle of Fayol.
(a) Equity
(b) Order
(c) Scalar Chain
(d) Initiative. 
Answer: C

NCERT Solutions for Class 12 Business Studies Chapter 2 Principles of Management One Word Answer Type Questions 

Question. Name the following principles of management:
(i) That prevents dual subordination.
(ii) That prevents overlapping of working of two divisions. 
Answer: (i) That prevents dual subordination : Unity of Command.
(ii) That prevents overlapping of working of two divisions : Division of Work..

Question. Which Principle of Management implies that there should be ‘One Head and One Plan’ for a group of activities having the same objective ?
Answer: Unity of Direction.

Question. Which Principle of Management states that an employee should receive orders from one superior only ?
Answer: Unity of Command.

Question. Ayesha a manager decided that there will be separate departments for finance, marketing, production and sales in her company. By doing so, she is following a principle of management. Name that Principle.
Answer: The principle is ‘Division of Work‘.

Question. Shreya, a manager, feels that the employees should get enough time to adapt to a new environment to show results. By doing so she is following a principle of management. Name that Principle. 
Answer: The principle is ‘Stability of Personnel‘.

Question. State any one method through which management principles have been derived. 
Answer: Observation Method.

Question. "Management principles can be modified as per the situation, it means they are not rigid." Which feature of principles of management is being explained in the above statement ? 
Answer: Management principles are flexible.

Question. Name the principle of scientific management which emphasise on study and analysis of methods rather than estimation.
OR
Name the principles of scientific management which suggests the introduction of scientific investigation and analysis.
Answer: Science, not rule of thumb.

Question. Which technique of Taylor differentiates between an efficient worker and an inefficient worker ?
Answer: Differential piece wage system.

Question. Beena, a student of management, likes to relate what she learnt in class to real life situations. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. Name the technique of Scientific management that should be adhered to, while manufacturing parts for such products.
Answer: Standardisation and Simplification of work.

Question. Himanshu keeps machines, materials, tools, etc. ready for operations by concerned workers. Whose work is described by this statement under functional foremanship ?
Answer: Gang boss.

NCERT Solutions for Class 12 Business Studies Chapter 2 Principles of Management Short Answer Type Questions

Question. Explain how principles of Management :
(i) Help in optimum utilisation of resources and effective administration; and
(ii) Help the managers in meeting changing environment requirements. 
Answer: (i) Principles of management help in optimum utilisation of resources by equipping managers to foresee the cause and effect relationships thereby reducing the wastages associated with trial and error approach. Principles of management help in effective administration by limiting the boundaries of managerial discretion so that decisions are free from personal prejudices.
(ii) Principles of management help the managers in meeting requirements of changing environment because they can be modified according to the changes taking place in the environment.

Question. Explain how Principles of Management :
(i) Provide useful insights into reality, and
(ii) Help in thoughtful decision making.
Answer: (i) Principles of management provide useful insights into reality by enabling the managers to learn from the past mistakes and conserve time by solving recurring problems quickly. (ii) Principles of management help in thoughtful decision making because the decisions based on principles are not biased and based on the objective assessment of the situation.

Question. Explain the following principles of “Scientific Management”.
(i) Science, not a rule of thumb
(ii) Co-operation, not individualism
(iii) Harmony, not discord.
OR
Explain ‘Harmony, not discord’ as a principle of scientific management.
OR Explain ‘Science, not a rule of thumb’ as a principle of management.
OR Explain ‘Co-operation not individualism’ as a principle of scientific management.
Answer: (i) Science, not a rule of thumb : Taylor believed that there was only one best method to maximise efficiency. This method can be developed through scientific study and analysis of each element of a job and should substitute ‘Rule of Thumb‘. This standard method then should be followed throughout the organisation.
(ii) Co-operation, not individualism : There should be complete co-operation between the labour and management instead of individualism; competition should be replaced by co-operation. Both should realise that they need each other.
(iii) Harmony, not discord : According to Taylor, there should not be any conflict between the managers and the workers. He emphasised that there should
be complete harmony between the managers and the workers. Both should realise that each one is important to achieve the objectives of the organisation.

Question. Enumerate any two techniques of Scientific Management. 
Answer: Techniques of Scientific Management :
(i) Functional Foremanship : The technique is to improve the performance of supervisor in the factory set up. Taylor suggested functional foremanship through eight persons. Functional Foremanship is an extension of principle of division of work and specialization at the shop floor.
(ii) Motion Study : It refers to the study of movements like lifting, putting objects, sitting & changing positions etc. Which are undertaken while doing a typical job. Unnecessary movements are eliminated so that it takes less time to complete the job efficiently.
(iii) Standardisation and Simplification of Work: It is the process of setting standards for every business activity. These standards are benchmarks which must be adhered during production process. The standards should be set for every business activity i.e., standardisation of process, raw material, time, product etc. Simplification aims at eliminating superfluous varieties, sizes and dimension.
(iv) Method Study : The objective of method study is to find one best way of doing the work
(v) Time Study : It determines the standard time taken to perform a well defined job, the objective of time study is to determine the number of workers to be employed (vi) Fatigue Study : This study seeks to determine the amount and frequency of rest intervals in completion of a task.
(vii) Differential Piece Wage System : According to this, there are different rate of wage payment, higher rate for the efficient members who performed above standard and lower rate for those who perform below standards.

Question. Explain “Science not rule of thumb” as a principle and ‘Time-Study‘ as a technique of scientific management.
Answer: (i) Science, not rule of thumb
(ii) Time Study : Time study is the technique of observing and recording the standard time required to perform each detailed task of an industrial portion. The purpose of time study is to determine the number of workers, labour cost, and to frame suitable incentive schemes.

Question. What is meant by the statement, “Principles of Management are Flexible” ?
Answer: Management Principles are not as rigid as those of natural science viz. Physics and Chemistry.
Principles of Management are not applied blindly in an identical manner to all situations. Management principles are not absolute and should be utilised in the light of changing and special conditions. Management principles do not provide any hard and fast rules and they have to be modified as per changes in the business environment. 

Question. Explain how principles of Management :
(i) Help the managers in taking scientific decisions
Answer: (i) Help the managers in taking scientific decisions : Decisions based on management principles tend to be more realistic and free from personal bias. Management principles have been developed after repeated experimentation, so, they reduce the chances of wastage due to hit and trial approach and facilitate managers to take scientific and balanced decisions.

Question. Explain ‘Harmony, not Discord‘ as a principle and ‘Fatigue Study‘ as a technique of scientific management ?
Answer: Fatigue Study : Fatigue study seeks to determine the amount and frequency of rest intervals to be given to tired workers to regain their lost energy and to maintain their operational efficiency. Fatigue is generally caused by long working hours, poor working conditions, etc. Adequate rest intervals will help the tired workers to regain their stamina and work again with same capacity.

Question. Explain ‘Harmony, not Discord‘ as a principle and ‘Motion Study’ as a technique of scientific management ?
Answer: Motion Study : Motion Study refers to the study of movements-like lifting, putting objects, etc. which are undertaken while doing a specified job. The objective of this study is to identify productive, unproductive and incidental motions and to eliminate unnecessary and unproductive motions to save time, efforts and resources so as to increase the productivity of workers and machinery.

Question. Explain the technique of scientific management that is the extension of ‘Principle of Division of Work and Specialisation’. 
OR Explain the technique of scientific management which separates the planning and execution work
Answer: The technique of Functional Foremanship.
(i) Functional Foremanship is a technique which aims to improve the quality of supervision at the shop floor by putting a worker under eight specialist foremen.
(ii) In this technique, planning is separated from execution. Under Planning Department :
(a) Route Clerk : This foreman lays down the sequence of operations, in which the work is to be carried out by each class of machines and men.
(b) Instruction Card Clerk : This foreman has to lay down the instructions and guidelines which workers need to follow in order to do their job.
(c) Time and Cost Clerk : This foreman records the time taken by a worker in completing a job. He also keeps a record of cost of the work done.
(d) Disciplinarian : He is responsible for discipline and systematic performance of the job. Under Production Department :
(a) Gang Boss : He is responsible to keep machines, materials, tools, etc. ready for operation by the concerned workers. (b) Speed Boss : He has to ensure that the work is accomplished at the right time and according to the specified speed. (c) Repair Boss : He is responsible for keeping up of machines and equipment in an efficient and working order.
(d) Inspector : He is responsible for the quality of work and brings a spirit of quality consciousness in the minds of the workers.

Question. Explain the technique of Scientific Management which is the strongest motivator for a worker to reach standard performance. 
Answer: Differential Piece Wage System :
(i) Taylor wanted to differentiate between efficient and inefficient workers.
(ii) He wanted to reward efficient workers and introduced two rates of wage payment for those who performed equivalent to or above standard and for those who performed below standard.
(iii) The difference in the wage was enough for the inefficient worker to be motivated to perform better. E.g., Standard output (per worker, per day) = 10 units Wage rate I = ₹ 2 per unit (for output < 10 units) Wage rate II = ` 3 per unit (for output ≥ 10 units)
Particulars               Worker A  Worker B
Output                    9 units     11 units 
Total wages              9 × 2 = 18  11 × 3  = 33
Difference in units produced = 2 Difference in wages = ₹ 15

Question. Explain any four points regarding significance of principles of management.
OR Explain any four points of importance of Principles of Management.
OR State any four points which highlight the importance of Principles of Management. 
Answer: Importance of Principles of Management:
(i) Providing managers with useful insights into reality : The principles of management provide the managers with useful insights into the real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from the past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.
(ii) Optimum utilisation of resources and effective administration : Both human and material resources, available with the company are limited. They have to be put to optimum use. By optimum
use we mean that the resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. As such the wastages associated with a trial-and-error approach can be overcome.
(iii) Scientific decisions : Decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes. They must be timely, realistic and subjected to measurement and evaluation. Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions are taken on the basis of principles which are free from bias and prejudice. They are based on the objective assessment of the situation.
(iv) Meeting changing environment requirements: Although the principles are in the nature of general guidelines but they are modified and as such help managers to meet changing requirements of the environment. Management principles are flexible to adapt to a dynamic business environment.
(v) Fulfilling social responsibility : The increased awareness of the public, forces businesses, especially limited companies to fulfill their social responsibilities. Management theory
and management principles have also evolved in response to these demands. Moreover, the interpretation of the principles also assumes newer and contemporary meanings with the change in time.
(vi) Providing basis for Management training, education and research : Principles of management are at the core of management theory. As such these are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a discipline. These principles enable refinement of management practices as well by facilitating the development of new management techniques which have developed due to further research on these principles.

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