CBSE Class 12 Business Studies Principles Of Management Worksheet Set A

Important Questions for NCERT Class 12 Business Studies Principles Of Management

Question. On what basis the principles of management were derived?   
(a) On the basis of observation
(b) On the basis of experimental studies
(c) On the basis of both (a) and (b)
(d) None of these

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 :  A

Question. What did Taylor want to standardise?   
(a) Material
(b) Machine and Tools
(c) Methods
(d) All of these

Answer :  D

Question.  What is the meaning of the universality of the principles of management? 
(a) Applicable to all the fields
(b) Applicable no where
(c) Applicable only to business
(d) Applicable only to non-business field

Answer :  A

Question. What principle of management has been given by Henry Fayol?  
(a) Principle of Unity of command
(b) Principle of optimum production
(c) Principle of using science instead of rule of thumb
(d) None of these

Answer : A

Question. Which of the following system of management talks about cheap and efficient way of doing a job?  
(a) Administrative
(b) Scientific
(c) Both the above
(d) None of the above

Answer : B

Question. Which of the following, according to Foyal, happens to be the meaning of the division of work?   
(a) Equitable division of the whole work among the persons available
(b) Alloting a specific part of the whole work to every person
(c) Both the above
(d) None of the above

Answer : B

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 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. 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. 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. 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. 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 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. 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. ‘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. 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. Which technique of scientific Management helps in establishing interchangeability of manufactured parts and products.
(a) Standardisation of work
(b) Division of work
(c) Functional foremanship
(d) Motion study

Answer : A

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. 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. 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.
(a) Division of work
(b) Centralisation and decentralisation
(c) Order
(d) Unity of command

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. Which technique of scientific management is an extension of the principle of division of work and specialisation.
(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 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. 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. ................. 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

Very Short Answer Questions :

Question. ”A proper place for everything and everything in its right place.” With which principle is the statement connected?
Answer : The statement is connected with principle of Order.

Question. What is esprit de corps?
Answer : Esprit de corps means that manager should make efforts to develop an environment of unity, harmony and team spirit among the subordinates.

Question. Which principle states that an employee should receive orders from one superior only?
Answer : Unity of command

Question. Describe the concept of mental revolution.
Answer : Mental revolution means transformation in the thinking and attitude of management and workers towards one another. Both should understand the importance of one another. Management should share surplus with workers and the workers in turn should work with full devotion.

Question. On which principle of Fayol is Taylor’s technique of functional foremanship based?
Answer : Division of work

Question. ’Rule of thumb’refers to-
a) Use of personal judgement in handling management issues
b) Adopting a hit and trial approach to resolve management problems
c) Both a)and b) given above
d) None of the above
Answer : c) Both a) and b) given above

Question. Name the work study techniques developed by Taylor?
Answer : Method study, motion study, time study, fatigue study.

Question. Define division of work.
Answer : Dividing the whole work into relevant number of tasks.

Question. Define gang plank.
Answer : It means direct communication between two employees not in the same chain.

Question. Name the technique of Taylor which is the highest motivator for workers to reach standard performance.
Answer : Differential Piece Wage System.

Question. Hina & Harish are typist in a company having same educational qualification. Hina is getting Rs.3000 per month and harish Rs. 4000 per month as salary far the same working hour. Which principle of management is violated in this case? Name and explain the principle?
Answer : Principle of fair remuneration.

Question. Which principle of management is violated if an employee is asked to receive orders from two superiors?
Answer : Principle of unity of Command

Question. Which principles of management promotes team spirit.?
Answer : Esprict De Corps.

Question. If an organization does not provide the right place for physical and human recourses in the organization, which principle is violated? What are its consequences?
Answer : Principle of Order

Question. Which principle of scientific management suggest the introduction of scientific investigation and analysis of management practice?
Answer : Science, not rule of Thumb.

Question. The production manager of an automobile company asked the foreman to achieve a target production of 200 units (Scooters) per day. But he did not give him the authority to requisition tools and materials from the store department. Can the production managers blame the foreman if he is not able to achieve the desire target? Explain briefly the principle relating to the situation.
Answer : No, the production manager can not blame the foreman because he did not give material from the stores department. Since he had no authority, he could not fulfill his responsibility. Also explain principle of Parity of Authority.

Question. Who gave the concept of scientific management? What was his profession?
Answer : F.W.Taylor gave the concept of scientific management and he was an American mechanical engineer.

Question. Why is it said that the principles of management are universal?
Answer : Because they can be applied to all types of organization :- business as well as non business, small as well as large, public sector as well as private sectors.

Question. Which principle of management aims at securing the loyalty and devotion of the employees by giving them fair and just treatment?
Answer : Principle of Equity.

Question. “Workers should be encouraged to develop and carry out their plans for improvements”. Identify the principle of management formulated by Fayol.
Answer : Principle of initiative.

Question. Who was the first to identity functions of management?
Answer : Henri Payol.

Question. Mohan a manager, expects his colleagues to get work out of subordinates without giving them any powers. Which principle of management is being overlooked and why?
Answer : Principle of parity of Authority and Responsibility.

Question. Identify the technique of scientific management which are described by the statement given below:-
i. When specialists supervise each worker.
ii. Change in the attitude of workers and management towards one another. From competition to Co-operation.
iii. When uniformity is introduced in materials. Machine, tools, method of works and working conditions after, due research.
Answer : 1. Functional Foremanship.
2. Mental Revolution
3. Standardization of works.

Question. It has been observed that the prevailing situation in an organization is due to the violations of the principle of ‘order’. What might have been your observation?
Answer : people and materials are not in suitable places at appropriate time.

Question. Which principle of management suggests that a subordinate should receive orders from and be accountable to one superior?
Answer : Principle of Unity of command.

Question. What is the basis of formation of scientific management?
Answer : Observation & Experimentation.

Question. Which principle of management is violated when a manager grants one month medical leave to a superior with pay and only one week medical leave to an accountant?
Answer : Principle of equity.

Question. How re principles of management formed?
Answer : They are formed by practice and experimentation

Question. Name and explain that principle of Fayol which suggest that communication from top to bottom should follow the official lines of command?
Answer : Principle of Scalar Chain.

Question. Which principle of management envisages that each group of activities having the same objective must have one head and one plan? Explain the principle with suitable example.
Answer : Unity of Direction 

Question. Why is it said that principles of management are flexible?
Answer : Because they can be modified by the managers when the situation so demands

Key points to remember for Chapter 02 Principles of Management

• Nature or Features of Management Principles
(i) Universal applicability : Applicable in all types of organisations, irrespective of size, nature and objectives.
(ii) Formed by practice and experience : Formed by experimentation, experience and collective wisdom of the managers.
(iii) General guidelines : Guidelines to actions are available but they do not provide ready made solution to all managerial problems.
(iv) Flexible : Can be modified by a manager according to the situation, They are not rigid prescriptions.
(v) Mainly behavioural : These mainly influence the behaviour of human beings.
(vi) Cause and effect relationship : Establish relationship between cause and effect i.e., if a particular principle is applied in a particular situation, what would be its likely effect.
(vii) Contingent : The use of management principles is contingent or dependent upon the prevailing situation at a particular point of time.

• Significance of Principles of Management
(i) Provide useful insights into reality to the managers : Use of these principles increases managerial efficiency by adding to their knowledge and ability to understand various real world situations more accurately into real world.
(ii) Optimum utilisation of resources and effective administration : The principles help the managers to foresee the cause and effect relationships of their decisions and reduce wastage associated with trial and error approach. They help in effective administration by making managerial decisions free from personal prejudices.
(iii) Scientific decisions : The principles help in taking decisions scientifically based on logic and objective assessment of situations rather than blind faith and personal prejudices.
(iv) Meeting requirements of changing environment : Principles of Management are modified to help the managers to meet requirements of changing environment.
(v) Fulfilling social responsibility : The management principles have been developed in such a way that they help in fulfilling social responsibilities of the organisation.
(vi) Management training, education and research : Principles of Management are the basis of management theories, which are used in management of training, motivation, research and development.

• About Henry Fayol: Henry Fayol (1841-1925) got degree in Mining Engineering and joined French Mining company in 1860 as an Engineer. He rose to the position of Managing Director is 1988. When the company was on the verge of bankruptcy, he accepted the challenge and by using rich and broad administrative experience, he turned the fortunes of the company. For his contributions, he is well known as the “Father of General Management”.

• Fayol’s Principles of Management
(i) Division of Work : Work is to be divided into small tasks and it should be completed by a specialised worker only.
(ii) Authority and Responsibility : There should be a balance between authority and responsibility.
(iii) Discipline : Obedience of organisational rules and employment agreements.
(iv) Unity of Command : Each employee should receive orders in a hierarchy and should be responsible to only one superior.
(v) Unity of Direction : A group of activities having same objective must have one head and one plan.
(vi) Subordination of Individual Interest to General Interest : Organisational interest should supercede individual interest.
(vii) Remuneration of Employees : Pay and compensation should be fair to both, the employees and the organisation.
(viii) Centralisation and Decentralisation : Balance the involvement of the subordinates through decentralisation and retention of final authority with managers through centralisation.
(xi) Scalar Chain : A chain of authority and communication should be there, from top to bottom levels of management.
(x) Order : People and resources should be in suitable places at appropriate time for maximum efficiency.
(xi) Equity : Kind and just behaviour with all employees without discrimination.
(xii) Stability of Personnel : Minimise employee turnover to maintain organisational efficiency.
(xiii) Initiative : Encourage employees to take initiative in thinking and executing the plans.
(xiv) Esprit de Corps : Promote a team spirit of unity and harmony among the employees.

• Principles of Scientific Management
(i) Science, not rule of thumb: Decisions on the basis of scientific study and analysis rather than traditional methods of trial and error.
(ii) Harmony, not discord: Eliminate class-conflict and develop harmony between the management and the workers.
(iii) Co-operation, not individualism: Competition should be replaced by co-operation. Both should realise that they need each other.
(iv) Development of each and every person to his or her greatest efficiency and prosperity: Personnel competencies should be developed by scientific selection and training should be given for maximum organisational progress.

• Techniques of Scientific Management
(i) Functional Foremanship : Separation of planning and execution function.
(ii) Standardisation and Simplification : Setting standards for every business activity and eliminating unnecessary diversity of products.
(iii) Method Study : Identify one best way to do a job.
(iv) Motion Study : Eliminate wasteful and unnecessary movements.
(v) Time Study : Determine standard time required to perform a job.
(vi) Fatigue study : Determine the amount and frequency of rest intervals of workers.
(vii) Differential piece wage system : Different wage rates for efficient and inefficient workers.
(viii) Mental Revolution : Total change in the attitude of both management and workers.

Important Questions for NCERT Class 12 Business Studies Principles Of Management

Question. _____ are guidelines to take decisions or actions while practicing ______.

(a) Values, principles
(b) Values, techniques
(c) Principles, techniques
(d) Principles, value

Answer : Principles, techniques

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 : Functional foremanship

Question. Taylor focused his attention on
(a) administrative level
(b) Top level
(c) Middle level
(d) Shop level

Answer : Shop level

Question. The principles of management can be changed according to the prevailing situation in organisation.
This shows that management principles are
(a) flexible
(b) universal
(c) behavioral
(d) scientific
Answer : flexible

Question. ’The principles of management are dependent on the prevailing situation at particular point of time.’ Identify the nature of principles of management
(a) Contingent
(b) Flexible
(c) Mainly behavioral
(d) Cause and effect relationship

Answer : Contingent

Question. Riyadh, a manager in ‘King Cobra Limited’, has not set the parameters to assess the performance of work and accuses his subordinates for under performance. This led to dissatisfaction among the workers. Which principle of management has been overlooked by Riyadh?
(a) Unity of command
(b) Discipline
(c) Authority and responsibility
(d) Equity

Answer : Authority and responsibility

Question. Saksham was appointed as Northern Regional Manager by Bedi Pharmaceuticals and Annidhya was appointed as Western Regional Manager. Both have similar responsibilities but Saksham enjoys more perks and salaries that Annidhya.Identify the principle violated.
(a) Principle of Espirit De Corps (b) Principle of Equity
(c) Principle of Remuneration
(d) Principle of subordination of individual interest to general interest

Answer : Principle of Remuneration

Question. Who is considered as father of scientific Management?
(a) F.W Taylor
(b) Henry Fayol
(c) Gilberth
(d) Koontz

Answer : F.W Taylor

Question. ‘If this principle is violated, authority is undermined, discipline in jeopardy, order disturbed and stability threatened.’ Identify the principle of management
(a) Discipline
(b) Unity of Direction
(c) Order
(d) Unity of Command

Answer : Unity of Command

Question. ‘The Differential Piece Wage System technique is based on the principle of ________.
(a) Equity
(b) Remuneration
(c) Subordination of individual interest to general interest
(d) Division of work

Answer : Remuneration

Question. One of the techniques of scientific management states that efficient workers should be paid higher wages than inefficient workers. Identify the technique from the following options:
(a) Time study
(b) Simplification of work
(c) Differential piece wage system
(d) Mental revolution

Answer : Differential piece wage system

Important Questions for NCERT Class 12 Business Studies Principles Of Management

Question. Principle of Initiative-

(a) Boosts up the morale of employees
(b) Brings down the morale of employees
(c) Does not effect on morale of employees
(d) None of the above

Answer : A

Question. Unity of Command insists on
(a) One Boss One employee
(b) Orders from a single superior
(c) Match between orders of different bosses
(d) All of the above

Answer : B

Question. Which of the following option best describes the meaning of ‘mental revolution’?
(a) Change of attitude
(b) Change of values and principles
(c) Change of pay scales
(d) Change of working atmosphere

Answer : Change of attitude

Question. Principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes. Which of the following characteristic of principles of management is reflected in the above statement?
(a) Principles are flexible in nature
(b) Principles are contingent
(c) Principles are behaviourial
(d) General guidelines
Answer : Principles are behaviourial

Question. The principles of science are ______ whereas the principles of management are _______ .
(a) flexible/rigid
(b) rigid/flexible
(c) based on research/based on development
(d) permanent/temporary
Answer : rigid/flexible

Question. Which technique of scientific management proposed by F.W. Taylor violates the principle of ‘Unity of Command’?
(a) Differential Piece Wage System
(b) Functional Foremanship
(c) Work Study
(d) Standardisation and Simplification

Answer : Functional Foremanship

Question. Which foreman ensures proper working condition of machineries ready for operation by workers?
(a) Repair Boss
(b) Gang Boss
(c) Speed boss
(d) Inspector

Answer :Repair Boss

Question. Which principle of management emphasizes on study and analysis of methods rather than estimation?
(a) Method study
(b) Science, not rule of thumb
(c) Standardization of work
(d) Maximum, not restricted output

Answer : Science, not rule of thumb

Question. A manager should replace ‘I’ with ‘We’ in all his conversations with workers. This statement relates to which of the following principle of management?
(a) Initiative
(b) Esprit De Corps
(c) Equity
(d) Subordination of individual interest to general interest

Answer : Esprit De Corps

Question. A company made a research the wastages and eliminated superfluous varieties during the process of production. Which technique of scientific management is applied here?
(a) Standardization
(b) Simplification
(c) Method Study
(d) Functional Foremanship

Answer : Simplification

Question. Henry Fayol was a
(a) social scientist
(b) mining engineer
(c) accountant
(d) production engineer

Answer : mining engineer

Question. Administrative principles were given by
(a) F. W. Taylor
(b) Henry Fayol
(c) Abraham Maslow
(d) Henry Fayol

Answer : Henry Fayol

Question. Which contemporary techniques of management focuses on reduction of seven wastes of production?
(a) Six Sigma
(b) Operation Research
(c) Lean Manufacturing
(d) Reengineering

Answer : Lean Manufacturing

Question. Same charger of mobiles can be used for different models of a particular brand. This is an example of which of the following techniques of scientific management?
(a) Standardization
(b) Simplification
(c) Method Study
(d) Functional Foremanship

Answer : Standardization

Question. Gang Plank is related with which principle of management?
(a) Unity of Direction
(b) Unity of Command
(c) Scalar Chain
(d) Order

Answer : Scalar Chain

Question. The concept of Gang Plank is applicable when
(a) Two superiors at different levels take decision in case of urgency
(b) Two superiors at same levels take decision in case of urgency
(c) Two subordinates at any level take decisions in case of urgency
(d) One superior and subordinate take decisions in case of urgency

Answer : Two superiors at same levels take decision in case of urgency

Question. Which of the following statement is not true about Taylor and Fayol?
(a) Taylor worked at shop floor area whereas Fayol worked top level of management
(b) Taylor’s contribution was applicable to specialized situations whereas Fayol’s contribution was universally applicable.
(c) Taylor’s contribution was based on personal experiences whereas Fayol’s contribution was based on observations and experimentations.
(d) Taylor’s contribution was towards increasing productivity whereas Fayol’s contribution was on improving overall administration

Answer : Taylor’s contribution was based on personal experiences whereas Fayol’s contribution was based on observations and experimentations.

Question. “The understanding of business environment enables the firm to identify opportunities. What is meant by ‘opportunities’ here?
Answer : Opportunity refers to the positive changes that occurred in the business environment and help the organization to improve its performance.

Question. “The Principles of Management are different from those used in pure Science”. Write anyone difference 
Answer : management principles are very flexible whereas pure science principles are rigid

Question. Name the foremen who arranges all the resources input and setup to start the work smoothly ?
Answer : Gang Boss

Question. What is meant by principles of management? 
Answer : these are the statements of fundamental truths which act as guidelines for taking managerial actions and effect relationship.

Question. Give the meaning of mental revolution as suggested by Taylor.
Answer : change in mental attitudes towards each other

Question. Distinguish between Time study And Fatigue studies 
Answer : Time study
This study is done by stop watch, for finding out :-
(i) Standard time required for a specific work.
(ii) Number of required workers to perform a job and estimated labour cost.
(iii) Efficient and inefficient workers.
Fatigue study
This study is done, for finding out :-
(i) Number/frequency of rest intervals.
(ii) Duration of rest intervals
(iii) Workers feel fatigue/tiredness, by continue working.

Question. The Production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day. But he did not give him the authority to requisition tools and materials from the stores department. Can the production manager blame the foreman if he is not able to achieve the desired target? Explain briefly the principle relating to the situation.
Answer : No.
Principle of authority and responsibility is violated.

Question. Explain that technique of scientific management which is the strongest motivator for a worker to reach standard performance.
Answer: Differential wage system /differential piece rate Taylor has advised the adoption of differential wage system in order to motivate the employees according to this system wages are paid on the basis of work done and not on the basis time spent doing the work. In this system two different wage rates are used:
One is the high wage and the other is the low wage rate. Those workers who are able to produce the standard number of units within a fixed duration are paid as per the lower wage rate. For example, let the standard output per day be 20 units and the two wage rates be Rs. 5 per unit and Rs. 4 per unit respectively. Worker ‘A’ produce 20 units in a day and in doing so he earns Rs. 100 (20 units x Rs. 5 per units). Another worker ‘B’ produces only 18 units in a day and hence he will earn only Rs. 72 (18 units x Rs. 4 per unit). In this way, even though ‘B’ has produced only 2 units less than ‘A’ the difference intheir wages will be Rs. 28 (100-72). As a result less efficient workers will be 
motivated to work more and efficient workers will be motivated to maintain their efficiency.

Question. i) Name and explain the principle of management in which workers should be encouraged to developed and carry out their pl:Answer for improvement in the organization.
ii) Name and explain the technique of scientific management which helps in eliminating unnecessary diversity of product and thus results in saving cost.
Answer:
I) it is principle of initiative:
According to Fayol it is the duty of the manager to encourage the feeling of initiative among his employees. For doing some work or taking some decision but within the limits of authority and discipline. It will be possible only when manager will welcome his/her sub-ordinates.
ii. it is simplification technique:
simplification means. putting and end to the unnecessary types, qualities, sizes/weights, etc.

Question. The court passed an order that all schools must have water purifiers for the school children as:
i. Society in general is more concert about quality of life.
ii. Innovative technique are being developed on manufacture water purifier at competitive rates.
iii. incomes are rising and children at home are also drinking purifier water.
The government is also showing positive attitude towards the water purifier business .
Identify the different dimensions of business environment by Quoting from the above details.
Answer:
i. Legal environment: the court passed an order that all school must have water purifiers for school childrens.
ii. Social Environment: Society in general is more concert about quality of life.
iii. Technological Environment: Innovative technique are being developed on manufacture water purifier at competitive rates.
iv. Political Environment: The government is also showing positive attitude towards the water purifier business.

Important Questions for NCERT Class 12 Business Studies Principles Of Management

Question. In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of authority under her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority under Shalleen is Lata-Rupa-Geet-Hussain-Preeti. According to a Principle of Management given by Fayol, If Ismail has to communicate with Hussain who is at the same level of authority then illustrate the route he will have to traverse.
(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail
(c) Ismail-Chris-Shalleen-Preeti-Hussain
(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain

Answer : A

Question. Taylor proposed eight specialists from whom each worker will have to take orders from, as part of the technique of Functional Foremanship specified by him. Those with technical mastery, intelligence and grit may be given----------------------------- work. Those with energy and good health may be assigned ---------------- work.
(a) Planning, Execution
(b) Execution, Planning
(c) Production, Planning
(d) Implementation, Production

Answer : A

Question. The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from the employees at a competitive cost. On the other hand, Ramakaant, an employee of the company, wants to get the maximum salary while working the least. The principle of management given by Fayol being violated by Ramakaant is ----------------.
(a) Remuneration
(b) Equity
(c) Discipline
(d) Subordination of individual interest to general interest.

Answer : D

Question. The principles are guidelines to action but do not provide readymade, straitjacket solutions to all managerial problems. This is so because ------------------.
(a) The application of principles can be changed as per requirements.
(b) Real business situations are very complex and dynamic and are a result of many factors.
(c) Principles are like different tools serving different purposes, the manager must decide which tool to use under what circumstances.
(d) All the above

Answer : B

Question. The principle of management given by Fayol which aims at preventing overlapping of activities is:
(a) Division of work
(b) Unity of Command
(c) Unity of Direction
(d) Order

Answer : C

Question. According to the technique of Scientific management “Differential Piece Wage system” How much more will a worker making 60 units earn as compared to a worker making 49 units? If the standard output per day is 50 units and those who make standard output or more than standard get Rs. 75 per unit and those below get Rs. 65 per unit.
(a) Rs. 4500
(b) Rs. 3185
(c) Rs. 1315
(d) Rs. 3250

Answer : C

Question. Name the principle of management given by Fayol which when applied would mean that the workers and management both honour their commitments without any prejudice towards one another.
(a) Discipline
(b) Mental Revolution
(c) Remuneration of employees
(d) Scalar chain

Answer : A

Question. The employees should be judiciously penalised for their actions against the organisation is indicated in ---------------- principle of management.
(a) Principle of Equity
(b) Principle of Responsibility, Authority
(c) Principle of Discipline
(d) None of the above

Answer : C

Question. The technique of Scientific Management given by Taylor, which aims to establish interchangeability of manufactured parts and products is ...……………………..
(a) Method Study
(b) Motion study
(c) Standardization
(d) Differential Piece wage system.

Answer : C

Question. Gang plank is concerned about---------------.
(a) Contact not allowed
(b) Indirect contact
(c) Direct contact
(d) Contact before application.

Answer : C

Question. Where are the principles of management applicable? 
(a) In the field of business
(b) In the non-business field
(c) In both (a) and (b)
(d) None of these

Answer : C

Question. ‘A proper place for everything and everything in its right place’, with which order is this statement connected as explained in the principle of order?   
(a) Material
(b) Social
(c) Both the above
(d) None of the above

Answer : A

Question. How are principles of management formed?  
(a) In a laboratory
(b) By experiences of managers
(c) By experiences of customers
(d) By propagation of social scientists

Answer : B

Question. Which system of management talks of “complete mental change”?  
(a) Administrative management
(b) Scientific management
(c) Both (a) and (b)
(d) None of these

Answer : B

Question. What principle of management is violated if an employee gets orders from more than one superior?   
(a) Unity of command
(b) Unity of direction
(c) Division of work
(d) Scalar chain

Answer : A

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

Answer : C

Question. In which book Henry Fayol has mentioned the 14 principles of management:    
(a) General and industrial management
(b) Principles based management
(c) General management
(d) Industrial management

Answer : A

Question. In an organisation Shyam and Smriti are working at the same posts but being a male employee Ram has more rights than Smriti. State any one principle of management which is violated here.
(a) Principle of equity
(b) Unity of command
(c) Scalar principle
(d) Rule of thumb
Answer. A

Question. V learn Ltd. is manufacturing LED bulbs to save electricity. However, it is running under heavy losses. To revive from the losses, the management shifts the unit to a backward area where labour is available at a low cost. The management also asks the workers to work overtime without any additional payments and promises to increase the wages of the workers after achieving its mission. Within a short period, the company starts earning profits because both the management and workers honour their commitments. State the principle of management described in the above paragraph.
(a) Unity of order
(b) Unity of direction
(c) Discipline
(d) Scalar chain
Answer. C

Question. Tisco Ltd. manufactures notebooks from cow dung to discourage the use of plastic files and folders. For this, they employ people from nearby villages where very less job opportunities are available. An employee, Harsh, designed a plan for cost reduction but it was not welcomed by the production manager. Another employee gave some suggestions for improvements in design, but it was not appreciated by the production manager.
State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of direction
(c) Initiative
(d) Scalar chain
Answer. C

Question. EMPOWER Ltd. is a company which takes care of the fact that the confidence of the employees should always be at its peak. For this reason, they give surety to their employees for employment for a minimum fixed tenure of time. Which principle of management is followed here?
(a) Division of labour
(b) Equity
(c) Unity of command
(d) Stability of personnel
Answer. D

Question. Where are the principles of management applicable?
(a) In the field of business
(b) In the non-business field
(c) In both (a) and (b)
(d) None of these
Answer. C

Question. Aman works in a shirt manufacturing company. He observed that there is lot of chaos and irregularity in the work. His senior manager advised him to divide the tasks into small jobs or tasks which will help him in achieving specialization and fulfilment of goals.State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Division of work and specialization
(c) Equity
(d) Scalar chain
Answer. B

Question. Vinay is a software manager in Concentrix Ltd. When he was on leave, he was expecting his subordinates to take the remaining work to the finish. However, he finds a new way of dealing with this problem. He develops a system of suggestion building from the side of workers. For this a suggestion/complain box is to be kept where the workers can drop their advice and hence take steps from their side. Which principle of management has been implemented here of late by the plant superintendent?
Which principle of management is violated here?
(a) Initiative
(b) Equity
(c) Unity of command
(d) Cooperation not individualism
Answer. A

Question. Bholaram is working in a German company. In this organization all the employees get fair and just treatment. There is no discrimination on caste color or creed. Identify the principle of management used here.
(a) Unity of command
(b) Unity of direction
(c) Scaler chain
(d) Equity
Answer. D

Question. Tisco Ltd. manufactures plastic folders. Aman works at the operational level. He gets orders from production manager as well as finance manager. He gets confused most of the times, which manager he should follow. State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of command
(c) Initiative
(d) Scalar chain
Answer. B

Question. Ashna and Janit works in a reputed MNC. They have same job responsibilities and job profile. Ashna is hardworking talented girl at the time of promotion she didn’t get promotion while Janit is not hardworking he received promotion based on the criterion that he is male and he can contribute more to the organization.
State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of command
(c) Equity
(d) Scalar chain
Answer. C

Question. Employees deserve fair and just remuneration but what is just and fair is determined by multiple factors.They include contribution of the employee, Paying capacity of the employer and prevailing wage rate for the occupation under consideration. Which quality of principles of management is highlighted above?
(a) General Guidelines
(b) Universal applicability
(c) Flexible
(d) Contingent
Answer. D

Question. Ramesh is the owner of a printing press. The size of his organisation has increased during the recent past. There are many employees who work in his organisation. The organisation is considered good and has earned a lot of reputation in the market. However, when it comes to making key decisions in the organisation related to many things he never considers the opinions of his subordinates. Even though the size of organisation has increased yet he tries to take all key decisions on his own. Which principle of Fayol has been violated by Ramesh?
(a) Esprit de corps
(b) Equity
(c) Centralisation and decentralisation
(d) Harmony
Answer. C

Question. In Ashu Ltd. management and labour union entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished but afterwards management refused to fulfill its commitment. Identify the principle of management violated by the management of Ashu Ltd.
(a) Division of work
(b) Discipline
(c) Initiative
(d) Equity
Answer. B

Question. Which company did Taylor join in America in 1878 as a labourer?
(a) Bethlehem Steel Works
(b) American Steel Company
(c) Midvale Steel Company
(d) None of these
Answer. C

Question. Three subordinates. S1, S2 and S3 receive orders from M1’. In such a situation which principles of management is being observed?
(a) Equity
(b) Order
(c) Unity of command
(d) Unity of direction
Answer. C

Question. Ria a manager expects her subordinates to adopt to the new environment and working conditions without giving them time to settle down. Which principle is overlooked in this statement?
(a) Principle of harmony, not discord
(b) Principle of stability of tenure
(c) Principle of Unity of Command
(d) None of these
Answer. B

Question. Nakul, a manager of Zyco Ltd. enjoys cordial relations with his co-workers and makes plans in consultation with his team to achieve organisational goals. Identify the principle of management followed by Zyco:
(a) Unity of command
(b) Esprit de corps
(c) Equity
(d) Order
Answer. B

Question. Pakka employment is a company which takes care of the fact that the confidence of the employees should always be at its peak. For this reason they give surety to their employees for employment for a minimum fixed tenure of time. Which principle of management is followed here?
(a) Stability of personnel
(b) Standardisation of work
(c) Foremenship
(d) None of these
Answer. A

Read the following text and answer questions.

Krishna and Saroj are both qualified CA and good friends. After obtaining a certificate of practice, they decide to pursue a career of their own choice. Krishna starts own practice in the city whereas Saroj joins a Government company. They meet after a long time in a party. Krishna invites Saroj to visit his office and she accepts his invitation. She observes at his office that there is a fixed place for everything and everyone and it is present there so that there is no hindrance in the activities of the office . Also, Krishna always tends to replace ‘I’ with ‘We’ in all his conversations with the staff members. Later on Krishna shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.

Question. Whether management is____________ profession
(a) Full fledged
(b) Soon going to be
(c) Not
(d) None of these
Answer. A

Question. “She observes at his office that there is a fixed place for everything and everyone” Identify the Principle of management highlighted here:
(a) Equity
(b) Order
(c) Espirit de corps
(d) Unity of command
Answer. B

Question. “Krishna always tends to replace ‘i’ with ‘We’ in all his conversations with the staff members”.
Which principle of management is being highlighted here:
(a) Stability of personnel
(b) Equity
(c) Espirit de corps
(d) None of these
Answer. C

Question. “Krishna shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes”. Identify the management principle.
(a) Equity
(b) Subordination of Individual interest to general interest
(c) Scalar chain
(d) None of these
Answer. A

Question. _______involve a series of steps to be taken to accomplish desined goals. Principles are guidlines to make decisions or actions while practicing.
(a) values
(b) techniques
(c) programmes
(d) actions
Answer. B

Question. While practicing principles of management ______ cannot be neglected as the business have to fulfill social and ethical responsibility towards society.
(a) values
(b) techniques
(c) programmes
(d) actions
Answer. A

Question. Derivation of principles of management is a matter of (i) ________ and their application is a matter of (ii)_________.
(a) (i) art (ii) science
(b) (i) science (ii) art
(c) (i) art (ii) discipline
(d) (i) discipline (ii) science
Answer. B

Question. In the words of ________,_________ means knowing exactly what you want men to do and seeing that they do it in the best and cheapest why.
(a) Henry Fayol Management
(b) W. Taylor, scientific management
(c) Harold Koontz, administrative management
(d) W. Taylor, Management
Answer. B

Question. As per cooperation, not individualism principle of management, competition should be replaced with_____
(a) coordination
(b) cooperation
(c) management
(d) harmony
Answer. B

Question. _______among the following was the first to identify four functions of management.
(a) Henry Fayol
(b) W. Taylor
(c) Max Weber
(d) Harold Koontz
Answer. A

Question. The contribution of Fayol and Taylor are ______to each other.
(a) competitive
(b) cooperative
(c) complimentary
(d) coordinated
Answer. C

Question. The principles of pure science is considered to be _________ in nature.
(a) flexible
(b) rigid
(c) creative
(d) none of the above
Answer. C

Question. ___________is the technique in which each worker is supervised by eight supervisors.
(a) Functional foremanship
(b) Unity of action
(c) Centralisation
(d) Simplification of work
Answer. A

Question.. Principles of management are not _________
(a) absolute
(b) behavioral
(c) universal
(d) Flexible
Answer. A

Directions: In the following questions, a statement of assertion is followed by a statement of reason.
Mark the correct choice as:
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.

Question. Assertion: Principle of division of work states that the total work should be sub divided into small parts and each parts should be allocated to a specialized person.
Reason: Hence workers will always be on the separate work and does not interface with each other’s work so their efficiency and effectiveness will increase.
Answer. C

Question. Assertion: Parity of authority and responsibility.
Reason: Authority without responsibility makes people ineffective and responsibility without authority resulting in irresponsible behavior of workers
Answer. C

Question. Assertion: Discipline is absolutely essential for achieving goals in business.
Reason: It involves a series of functions for achieving goals like planning, organizing, staffing, directing and controlling.
Answer. D

Question. Assertion: One head one plan one worker is unity of command.
Reason: It states workers should receive orders from only one boss at a time.
Answer. B

Question. Assertion: Centralizing means increasing the role of subordinates in management.
Reason: Giving responsibility to subordinates resulting in effective and efficient work.
Answer. D

Question. Assertion: Scalar chain is also known as gang plank.
Reason: Gang plank makes a bridge between two subordinates at the same level.
Answer. D

Question. Assertion: Principle of management are universally acceptable.
Reason: Because principle of management is universally acceptable they need not to be changed in any situation.
Answer. C

Question. Assertion: Functional foremanship is opposite to unity of command.
Reason: it Emphasizes on minimum eight specialist to supervise and gave orders to subordinate.
Answer. A

Question. Assertion: Differential piece rate wages refers to a system in which efficient and non efficient workers work.
Reason: to suitably reward the efficient workers and charge penalties from inefficient workers
Answer. C

Question. Assertion: Scientific management requires time study of working by workers.
Reason: Wages will be paid according to time not by working.
Answer. B

Short Answer type Question Answer

Question. The two techniques of scientific management used by Sandhya to solve the problem are:
(a) Time study: It seeks to determine 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, frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of the task the standard time is fixed for the whole of the task by taking several readings.
(b) Simplification (Standardisation and Simplification): Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring optimum utilisation of resources.
(c) Motion study: Motion study refers to the study of movements of limbs of a worker while doing a particular task. It seeks to divide all such movements into three categories namely; Motions which are required Motions which are unnecessary Motions which are incidental. Thus, motion study helps to eliminate unnecessary movements of a work and enables him to complete the given task efficiently.
Answer : The two techniques of scientific management used by Sandhya to solve the problem are:
(a) Time study: It seeks to determine 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, frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of the task the standard time is fixed for the whole of the task by taking several readings.
(b) Simplification (Standardisation and Simplification): Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring optimum utilisation of resources.
(c) Motion study: Motion study refers to the study of movements of limbs of a worker while doing a particular task. It seeks to divide all such movements into three categories namely; Motions which are required Motions which are unnecessary Motions which are incidental. Thus, motion study helps to eliminate unnecessary movements of a work and enables him to complete the given task efficiently.

Question. The relevant principle of management given by Fayol is:-
Stability of Personnel: The employee turnover should be minimized to maintain organizational efficiency. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. (The other correct answers are principle of Discipline / Initiative / Espirit de corps). The characteristic of management mentioned in the above case is:
Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals. (The other correct answers are management is intangible/ group activity/dynamic)
Answer : The relevant principle of management given by Fayol is:-
Stability of Personnel: The employee turnover should be minimized to maintain organizational efficiency. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. (The other correct answers are principle of Discipline / Initiative / Espirit de corps). The characteristic of management mentioned in the above case is:
Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
(The other correct answers are management is intangible/ group activity/dynamic)

Question. No, the sales manager is not responsible because he has no authority either to increase the sales expenses or appoint new salesmen. In this case, the principle of ‘Parity of Authority and Responsibility is violated’.
Authority means the right to orders & obtains obedience. There are two types of authority a. Official authority i.e. authority to command & (b) Personal authority which is the authority of the individual manager.
‘Responsibility’ means obligation to perform the job assigned on time. Fayol suggested that there must be balance between authority and responsibility. Giving authority without responsibility may lead to irresponsible use of authority. So an organization should build safeguards against abuse of managerial power.
Answer : No, the sales manager is not responsible because he has no authority either to increase the sales expenses or appoint new salesmen. In this case, the principle of ‘Parity of Authority and Responsibility is violated’.
Authority means the right to orders & obtains obedience. There are two types of authority a. Official authority i.e. authority to command & (b) Personal authority which is the authority of the individual manager.
‘Responsibility’ means obligation to perform the job assigned on time. Fayol suggested that there must be balance between authority and responsibility. Giving authority without responsibility may lead to irresponsible use of authority. So an organization should build safeguards against abuse of managerial power.

Question. Principle of Equity.
The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just treatment.
Answer : Principle of Equity.
The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just treatment.

Long answer type Questions

Question. Time Study- It determines the standard time taken to perform a well-defined job. The standard time is fixed for the whole of the task by taking several readings. The method of time study will depend upon volume and frequency of task, the cycle time of operation and time measurement costs. For example- On the basis of several observations it is determined that standard time taken by the worker to make one cardboard box is 20 minutes. So in one hour she/he will make 3 boxes. Assuming that a worker has to put in 8 hours of work in a shift and deducting one hour for rest and lunch, it is determined that in 7 hours a worker makes 21 boxes @ 3 boxes per hour. Now this is the standard task a worker has to do. Wages can be decided accordingly.

Answer: Time Study- It determines the standard time taken to perform a well-defined job. The standard time is fixed for the whole of the task by taking several readings. The method of time study will depend upon volume and frequency of task, the cycle time of operation and time measurement costs. For example- On the basis of several observations it is determined that standard time taken by the worker to make one cardboard box is 20 minutes. So in one hour she/he will make 3 boxes. Assuming that a worker has to put in 8 hours of work in a shift and deducting one hour for rest and lunch, it is determined that in 7 hours a worker makes 21 boxes @ 3 boxes per hour. Now this is the standard task a worker has to do. Wages can be decided accordingly.

Question. (i) UNITY OF COMMAND - According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle.
(ii) FATIGUE STUDY - A person is bound to feel tired physically and mentally if she/he does not rest while working. The rest intervals will help one to regain stamina and work again with the same capacity. This will result in increased productivity. Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.

Answer: (i) UNITY OF COMMAND - According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle.
(ii) FATIGUE STUDY - A person is bound to feel tired physically and mentally if she/he does not rest while working. The rest intervals will help one to regain stamina and work again with the same capacity. This will result in increased productivity. Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.

Question. Following are the principles of management highlighted by Rajat in his address to the employees: (Any Four) a. Initiative: Initiative means taking the first step in self- motivation. It is thinking out and executing the plan. But it does not mean going against the established practices of the company for the sake of being different. b. Stability of personnel: “Employee turnover should be minimized to maintain organizational efficiency.” according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure. c. Discipline: Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of the organization. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. d. Equity: There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality, etc. Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible. e. Espirit de corps: Management should promote a team spirit of unity and harmony among employees, according to Fayol. A manager should replace ‘I’ with’We’ in all his conversations with workers to foster team spirit. f. Subordination of individual interest to general interest: In all situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person.

Answer: Following are the principles of management highlighted by Rajat in his address to the employees: (Any Four) a. Initiative: Initiative means taking the first step in self-motivation. It is thinking out and executing the plan. But it does not mean going against the established practices of the company for the sake of being different. b. Stability of personnel: “Employee turnover should be minimized to maintain organizational efficiency.” according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure. c. Discipline: Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of the organization. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. d. Equity: There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality, etc. Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible. e. Espirit de corps: Management should promote a team spirit of unity and harmony among employees, according to Fayol. A manager should replace ‘I’ with’We’ in all his conversations with workers to foster team spirit. f. Subordination of individual interest to general interest: In all situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person.

Management principles: Principles of management are general guidelines for managerial decision- making.

Nature

(1) They have universal applicability in all types of organisations.

(2) They are formed by practice and experimentation.

(3) They are flexible and can be modified by the manager when the situation so demands.

(4) They are aimed at influencing human behaviour; so they are mainly behavioural in nature.

(5) The applications of the principles of management is contingent or dependent upon the prevailing situation at a particular point of time.

Significance

(1) They provide the managers with useful insights into reality.

(2) They help in optimum utilisation of resources and effective administration.

(3) They help to take scientific decisions.

(4) They help in meeting changing environment requirements.

(5) They help in fulfilling social responsibility.

(6) They are used as a basis for management training, education and research.

Fayol’s principles of management

(1) Division of work:- work should be divided into small tasks / jobs; each performed by a specialist or trained employee.

(2) Authority and responsibility:- ‘authority’ means the right to give orders and obtain obedience ‘responsibility’ means obligation to perform the job assigned on time. Fayol suggested that there must be a balance between authority and responsibility.

(3) Discipline:- it means obedience to organisational rules and employment agreement.

(4) Unity of command:-an employee should receive orders / instructions from one and only one boss or superior.

(5) Unity of direction:-all the units of an organisation should be moving towards the same objectives through coordinated and focused efforts.

(6) Subordination of individual interest to general interest:- the interest of the organisation

should supersede the interest of anyone individual employee.

(7) Remuneration of employees:- remuneration of employees should be just and equitable to provide maximum satisfaction to the employees as well as employer. 

(8) Centralisation and decentralisation:- the concentration of decision- making authority by top management is called centralisation, whereas delegation of authority throughout all the levels of the organisation is called decentralisation. There should be a balance between centralisation and decentralisation.

(9) Scalar chain:- the formal lines of authority from highest to lowest rank are known as ‘scalar chain’ suggests that communication from top to bottom should follow the official lines of command. Gang plank is a shorter route and has been provided so that communication has not delayed.

(10) Order:- it means –There should be a fix place for every person and everything in the organisation and each person and every thing should be at its definite place.

(11) Equity:- the principles of ‘equity’ emphasises kindliness and justice in the behaviour of managers towards workers, i.e., no discrimination on account of sex, caste, language, etc.

(12) Stability of personnel: - employees should not be moved from their positions frequently, they should be given reasonable time to show results.

(13) Initiative: - employees should be encouraged to make and execute plans within the prescribed limits of authority.

(14) Espirit de corps:-Fayol emphasises the need for team work, spirit of unity and harmony among employees.

Scientific Management: Principles and Techniques
Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.

Principles
1. Science, not rule of thumb – Taylor believed that there was only one best method to maximise efficiency, which can be developed through scientific study.

2. Harmony,not discard: There should be complete harmony between the management and workers.

3. Cooperation, not individualism: every employee should work in the organisation with full cooperation not for individual interest only.

4. Development of each and every person to his/her greatest efficiency and prosperity: Each person should be scientifically selected. They should be given required training to learn
best method.

Techniques
Functional foremanship-Taylor suggested activities of factory workers should be observed by eight type of specialised foremen. He divided the work of factory in two departments:
Planning department with Instruction card clerk, route clerk, time and cost clerk and discipline officer Production department: Gang boss, speed boss, repair boss and Inspector

Standardisation and simplification of work
Fatigue study – It seeks to determine the amount and frequency of rest intervals in completing a task.
Method study – Objective of method study is to find out one best way of doing the job.
Time study – It determines standard time taken to perform a well- defined job.
Motion study - It refers to the study of movements so that unproductive movements may be eliminated.
Differential piece wage system: It differentiates between efficient and less efficient workers on the basis of two wages rates-high and low wages rates. It rewards the efficient workers and motivates the less efficient ones to perform better.

Important Questions for NCERT Class 12 Business Studies Principles Of Management

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. Out of the following which one gives more strength to research work.    
(a) Principles of management
(b) Functions of management
(c) Levels of management
(d) All the above

Answer : A

Question. According to which principle of management, all similar activities for the fulfilment of one object must be kept under one authority.   
(a) Equity
(b) Centralisation
(c) Unity of command
(d) Unity of direction

Answer :  D

Question. How many Principles of Management has been given by Henry Fayol?   
(a) 5
(b) 14
(c) 16
(d) 20

Answer :  B

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. Which system of management gives due importance to ‘specialisation’?   
(a) Scientific management
(b) Administrative management
(c) Both (a) and (b)
(d) None of these

Answer :  A

Question. The violation of which principle of management results in ‘disorderly flow of information’?   
(a) Scalar Chain
(b) Unity of Command
(c) Authority and Responsibility
(d) Stability of employees

Answer :  A

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 scientific technique/ work study establishes interchangeability of manufactured parts or products?
(a) Motion Study
(b) Method Study
(c) Standardisation and Simplification
(d) Functional Foremanship

Answer : Standardisation and Simplification

Question. ‘An employee contacts the CEO directly to complaint about the problems employees are facing at the work station’. Which principle of management is violated here?
(a) Unity of command
(b) Unity of direction
(c) Scalar chain
(d) Discipline

Answer : Scalar chain

Question. “One head One plan” is concerned with the following principle of Fayol
(a) Unity of command
(b) Unity of Direction
(c) Fair remuneration
(d) Division of work

Answer : Unity of Direction

Question. The technique in which task of supervision is divided into several specialized functions with the help of eight specialists is
(a) Standardization
(b) differential piece wage system
(c) simplification
(d) functional Foremanship

Answer : functional Foremanship

Question. Which scientific principle of management encourages employees to render their suggestions while taking important decisions?
(a) Harmony, not Discord
(b) Science, not Rule of Thumb
(c) Cooperation not individualism
(d) Maximum, not Restricted Output

Answer : Cooperation not individualism

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 : Method Study

Question. Which technique of scientific management is the extension of Fayol’s principle of division of work?
(a) Mental revolution
(b) Simplification of work
(c) Functional foremanship
(d) Standardization of work

Answer : Functional foremanship

Question. Panchayats in our country have been given more powers to decide and spend funds granted to them by the government. The principle of management highlighted in the above statement is
(a) Equity
(b) Centralisation and decentralisation
(c) Authority and Responsibility
(d) Espirit De corps

Answer : Centralisation and decentralisation

Question. The principle which states that there should be good supervisors at all levels for smooth and systematic working of an organisation is:
(a) equity
(b) initiative
(c) discipline
(d) order

Answer : discipline

Question. Ms. Surbhi, the manager of ATS Ltd. found Vasu, an employee usually coming late to the office.
Being new, she could not take strict action against him. Consecutively, other employees also started coming late which led to the fall in the overall discipline. Which principle of management Surbhi could not apply in the organization.
(a) Subordination of individual interest to general interest
(b) Remuneration
(c) Discipline
(d) Equity

Answer : Equity

Question. Mr. Gurarpan, the General Manager of Pinewood Industries, is very enthusiastic about his work. He makes the plans for all the departments on his own and instructs the department heads to follow those plans. Which principle of management is violated by Mr. Gurarpan?
(a) Espirit De corps
(b) Unity of Direction
(c) Initiative
(d) Unity of Command

Answer : Initiative

Question. Which of the principle of Fayol’s is in the contrast to scientific technique, Functional foremanship?
(a) Unity of direction
(b) Unity of command
(c) Discipline
(d) Subordination of individual interest to general interest

Answer : Unity of command

Very Short Answer Questions

Question. “Workers should be encouraged to develop and carry out their plans for development”.
Identify the principle of management formulated by Fayol.
Answer: Principle of initiative.

Question. How do the techniques of ‘motion study’ help to improve the efficiency of workers?
Answer: By eliminating unnecessary and wasteful movements on the job.

Question. What is the objective of standardisation?
Answer: To increase the efficiency of workers

Question. What is meant by ‘mental revolution’ according to Taylor?
Answer: According to Taylor, mental revolution means a complete transformation in the attitude between management and workers. Both should realize that they need each other.

Question. Which principle of management envisages that each group of activities having the same objectives must have one head and one plan? Explain the principle with a suitable example.
Answer: Unity of Direction.

Question. Why is it said that principles of management are flexible?
Answer: Because these can be modified by the manager when the situation so demands

Question. Name the technique of scientific management which focuses on separation of planning and execution function.
Answer: Functional Foremanship.

Question. What is the objective of method study ?
Answer: To find out ‘one best way’ of doing job.

Question. What is the objective of ‘Time Study’?
Answer: To determine the standard time required to perform a certain job so as to fix a fair day’s work for the workman.

Short Answer Questions

Question. The directors of Bhupender Ltd. an organisation manufacturing computers want to double the sales & have given this responsibility to their sales manager. The sales manager has no authority either to increase the sales expenses or appoint new salesman. Hence he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain in brief, the relevant principle in support of your answer.
Answer: No, the sales manager is not responsible because he has no authority either to increase the sales expenses or appoint new salesmen.In this case, the principle of ‘Parity of
Authority and Responsibility is violated’.
Authority means the right to orders & obtain obedience. There are two types of authority
(a) Official authority i.e. authority to command &
(b) Personal authority which is the
authority of the individual manager. ‘Responsibility’ means obligation to perform the job assigned on time. Fayol suggested that there must be balance between authority and
responsibility. Giving authority without responsibility may lead to irresponsible use of authority. So an organization should build safeguards against abuse of managerial power.

Question. Sita and Geeta are typists in a company having same educational qualifications. Sita is getting Rs. 3000 per month and Geeta Rs. 400 per month as salary for the same working hours. Which principle of management is violated in this case? Name and explain the principle.
Answer: Principle of Equity.
The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just treatment.

Question. The production manager of Bharat Ltd. instructs a salesman to go slow in selling the product, whereas the marketing manager is insisting on fast selling to achieve the target.
Which principle of management is being violated in this case? State the consequences of violation of this principle.
Answer: Unity of Command
Consequences of Violation:-
If an employee gets orders from two superiors at the same time i.e., principle of unity of command is violated.
i) authority is undermined
ii) discipline and order is disturbed
iii) stability is threatened
iv) conflict among superiors
v) loyalty of employee is divided
vi) employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.

Question. If an organization does not provide the right place for physical & human resources in the organization, which principle is violated? What are the consequences?
Answer: Principle of order, Consequences:
1. Violation of material order leads to wasteful movement of materials & tools.
2. If social order is violated, it may not be easy to contact the needed employee.

Question. Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both are working hard and happy with their employer. Salman had the habbit of backbiting and wrong reporting about his colleagues to impress his boss.
All the employees in the organisation knew it. At the time of performance appraisal Nikita was judged better than Salman. Even then their boss, Mohammad Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of higher post.
i) Identify and explain the principle of management which was not followed by this company.
ii) Identify the values which are being ignored by the company.
Answer: (a) The principle violated is equity. It advocates that there should be no discrimination against anyone on account of sex, religion, language, caste, belief and nationality etc. it
emphasizes kindliness and justice in the behaviour of manager towards their workers to ensure loyalty and devotion.
(b) The values which are being ignored are:
(i) Good human behaviour because ‘Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss.’
(ii) Gender equality because ‘their boss decided to promote Salman stating that being a female Nikita will not be able to handle the complication of higher post.’

Question. Explain the following principles of management given by Fayol.
(a) Unity of command
(b) Order
Answer: (a) Unity of command
• There should be one and only one boss for every individual employee.
• If an employee gets order from two superior at the same time, the principle is violated.
• Consequences of violation: authority is undermined, discipline is in jeopardy, order is disturbed, and stability is threatened.
(b) Order
- People and material must be in suitable places at appropriate time for maximum efficiency.
- It means ‘a place for everything (everyone) and everything (everyone) in its (his/her) place’ ie. orderliness.
- Benefits of the principle: no hindrance in the activities of business, increased productivity and efficiency.

Question. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day. But he did not give him the authority to requisition tools and materials from the stores department. Can the production manager blame foreman if he is not able to achieve the desired target? Explain briefly the principle relating to the situation.
Answer: The principle is authority and responsibility. No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and material from the stores department since he has no authority, he cannot fulfil his responsibility.

Question. ABC ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work responsibility between worker and management. The management even takes workers into confidence before taking important decisions.
(a) State the principle of management described in the above para.
(b) Identify any two values which the company want to communicate to the society.
Answer: (a) The principle of Taylor described in the above para is cooperation, not individualism.
It states that there should be complete cooperation between workers and the management. Competition should be replaced by cooperation.
(b) Values which the company wants to communicate with society
• Good behaviour in human interaction. Concern for the environment.

Long Answer Questions

Question. Explain the nature of management principles.
Answer: Nature of management principles can be described as follows:
(i) Universal Applicability: The principles of management are applicable to all types of organisations irrespective of their size and nature.
(ii) General Guidelines: They are only guidelines for action and don’t provide direct or readymade solution for a managerial problem.
(iii) Formed by practice and experimentation: The principles of management have been developed through experimentation as well as experience and wisdom of managers.
(iv) Flexible: They are flexible i.e. they can be modified by the managers according to a given situation.
(v) Mainly behavioral: They are mainly behavioral in nature since they are devised to influence human behaviour.
(vi) Cause and effect relationship: The principles of management establishes relationship between cause and effect. They guide us as to what would be the effect if a particular
principle were to be applied in a given situation.
(vii) Contingent: The use of principles of management is contingent or dependent upon the prevailing conditions.

Question. Explain the importance of management principles.
Answer: The importance of management principles can be understood by considering the following points:
(i) Provide useful insights to manage: Principles of management help in increasing managerial efficiency by adding to their knowledge and ability to understand the various situations more objectively.
(ii) Optimum Utilization of Resources and effective administration: Management principles help in organizing various activities in such a way that results in elimination of unwanted activities and consequent wastage. Management principles help in managing organizations effectively. For example, Unity of Command helps to avoid confusion and conflicts Unity of direction ensures unity of actions to facilitate coordination.
(iii) Scientific decisions: They help the managers in taking the decisions based on the objective assessment of a situation. Thus decisions taken are logical and free from any bias and prejudice.
(iv) Meeting changing environment requirements: Though the principles are only guidelines for action yet they can be modified according to the need of changing situations. Thus principles of management help in meeting changing requirements of the environment.
(v) Fulfilling social responsibilities: Principles of management have been devised in such a way that they help in fulfilling social responsibilities.
(vi) Management training, education and research: Principles of management are the fulcrum of management theory so that they are used as a basis for management training, education and research.

Question. How do the techniques of scientific management improve the productivity of workers
Answer: The technique of scientific management has helped in improving the productivity of the workers in the following manners
1. It establishes better relations between labour and management.
2. Profit is increased many times due to effective integration of right men, materials, money and method.
3. The use of standardized raw materials, equipments, machines and method produce standard article at minimum possible price.
4. It enables the management to reduce the cost of production
5. It helps in providing better working condition and higher standard of living.

Question. Kushal Ltd. is a leading automobile company in which the various department are setting up their own objective without paying any interest to the organizational objectives.
I. Which aspects of management of company is lacking? What will be impact on the organization?
II. Identify the principle of management which has been over looked by the organization.
III. State any two value which is neglected by the people of organization.
Answer: I. The company is lacking ‘coordination’. Its different department like production, marketing, etc. do not coordinate this wok in absence of coordination; these will be overlapping and chaos instead of harmony and integration of activities. The company will fail to achieve its objectives.
II. Subordinate of individual interest to general interest.
Values -Mutual cooperation, unity of action, optimum utilization of resources.