CBSE Class 12 Business Studies Principles of Management Assignment

PRINCIPLES OF MANAGEMENT

Conentcept of Principle of Managem :
Principle of Management are the broad and general guidelines for managerial decision making. They are different from principles of science as they deal with human behaviour. They are different from techniques of management as techniques are method whereas principles are guidelines to action and decision making. Principle of management are different from values which are formed as generally accepted behaviour in society and having moral coordination where-as principles are formed through research having teachnical nature.

Nature of Principles of Management
The nature of principles of management can be described in the following
(1) Universal applicability i.e. they can be applied in all types of organizations, business as well as non-business, small as well as large.
(2) General Guidelines : They are General points :Guidelines to action which however do not provide readymade solutions as the business environment is very changing or dynamic.
(3) Formed by practice and experimentation : They are developed after thorough research work on the basis of experiences of managers.
(4) Flexible which can be modified by the practicing manager as per the demands of the situations.
(5) Mainly Behavioural : Since the principles aim at influencing human behaviour they are behavioural in nature.
(6) Cause and Effect relationship : They intend to establish relationship between cause & effect so that they can be used in similar situations.
(7) Contingent : Their applicability depends upon the prevailing situation at a particular point of time.

Significance of the Principles of Management
The significance of principles of management can be derived from their utility
which can be understood from the following points :
(1) Providing managers with useful insights into reality.
(2) Optimum utilization of resource and effective administration.
(3) Scientific decisions.
(4) Meeting the changing environmental requirements.
(5) Fulfilling social responsibility.
(6) Management training, education and research.

Taylor s Scientific Management :
F.W. Taylor (1856-1915) was an American mechanical engineer who believed in analyzing the work scientifically and finds one best way to do any work.
His book Principles of Scientific Management was published in 1911.

Principles of Scientific Management :
Taylor gave the following principles of scientific management :

(1) Science and not the rule of thumb : which implies developing one standard method through work study unifying the best practices globally which would result in optimum resource utilization.

(2) Harmony, Not discord : which implies that there sould be mental revolution on part of managers, workers and owners to respect each other s role and eliminate any class conflict to realize organizational objectives.

(3) Cooperation not individualism : It is an extension of the Principle of Harmony, Not discord whereby constructive suggestions of workers should be adopted and they should not go on strike as both management and workers share responsibility and perform together. Infact there should be complete cooperation between the labour and the management
instead of individualism.

(4) Development of Each and Every Person to His or Her greatest Efficiency and Prosperity : Which implies development of competencies of all persons of an organization after their scientific selection and assigning work suited to their temperament and abilities.

Techniques of Scientific Management

(1) Functional Foremanship : Functional foremanship is a technique in which planning and execution are saparated. There are 8 types of specialized professionals 4 each under planning and execution who keep a watch on all workders to extract optimum performance. 

(2) Standardisation and Simplification of work : Standardization refers to developing standards for every business activity whereas Simplification refers to eliminating superfluous varieties of product or service. It results in savings of cost of labour, machines and tools. It leads to fuller utilization of equipment and increase in turnover.

(3) Method Study : The objective of method study is to final out one best way of doing the job to maximise efficiency in the use of materials, machinery, manpower and capital.

(4) Motion Study : Motion study seeks to eliminate unnecessary motions in the execution of a job to enable it to be completed in less time efficienty.

(5) 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, frame suitable incentive schemes & determine labour costs.

(6) Fatigue study : Fatigue study seeks to determine amount and frequency or rest intervals in completing a task.

(7) Differential Piece Wage system : Differential Piece Wage system seeks to reward a more efficient worker by giving him/her more wages for more quantity of standard production achieved.

(8) Mental Revolution : It involves a change in the attitude of workers and management towards one another from competition to cooperation.

Foyol s Principles of Management : Henri Fayol (1841-1925) was a French Mechanical engineer who gave 14 general principles of Management which are as under :

(1) Division of Work : Work is divided into small tasks / jobs and each one is done by a trained specialist which leads to greater efficiency.

(2) Authority and Responsibility : Managers are empowered with authority to give orders and obtain obedience and responsible for the accomplishment of task for which they are granted authority.

(3) Discipline : it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.

(4) Unity of Command : There sould be only one boss for every employee.
If an employee gets orders from two superiors at the save time the principle of unity of command is voilated.

(5) Unity of Direction : Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination.

(6) Subordination of Individual Interest to General Interest : The Interest of an organization should take priority over the interests of any one individual employee.

(7) Remuneration of Employees : The overall pay and compensation should be fair to both employees and the organization.

(8) Centralization and Decentralization : The concentration of decision making authority is called centralization whereas its dispersal among more than one person is known as decentralization. Both should be balanced.

(9) Scalar Chain : The formal lines of authority between superiors and subordinates from the highest to the lowest ranks is known as scalar chain. This chain should not be voilated but in emergency employees at same level can contact through Gang Plank. 

(10) Order : A place for everything (everyone) and everything (everyone) in its place. People & materials must be in suitable places at oppropriate time for maximum efficiency.

(11) Equity : The working environment of any organization should be free from all form of discrimination and the principles of Justice and fair play should be followed.

(12) Stability of Personnel : After being selected and appointed after due and rigorous procedure the selected person should be kept at the post for a minimum period decided to show result.

(13) Initiative : Workers should be encouraged to develop and carry out their plans for improvements. Initiative means taking the first step with self motivation It is thinking out and executing the plan.

(14) Espirit De Corps : Management should promote team spirit, unity and harmony among employees. Management should promote a team work.

Fayol versus Taylor :

While the work of Taylor concerned shop floor, the work of Fayol concerned General Principles applicable to all types of situations.

Important Notes and Questions for NCERT Class Business Studies 12 Principles of Management

Principle
A principle is a fundamental statement of truth that provides guidance to thought and action.

Principles of Management
Principles of management are broad and general guidelines for managerial decision making and behavior (i.e. they guide the practice of management).

Nature of Principles of Management
The nature of principles of management can be described in the following points:
1. Universal applicability i.e. they can be applied in all types of organizations, business as well as non-business, small as well as large enterprises.
2. General Guidelines: They are general guidelines to action and decision making however they do not provide readymade solutions as the business environment is ever changing or dynamic.
3. Formed by practice and experimentation: They are developed after thorough research work on the basis of experiences of managers.
4. Flexible: Which can be adapted and modified by the practicing managers as per the demands of the situations as they are man-made principles.

Significance of the Principles of Management
The significance of principles of management can be derived from their utility which can be understood from the following points:

1. Providing managers with useful insights into reality: Management principles guide managers to take right decision at right time by improving their knowledge, ability and understanding of various managerial situations and circumstances.
2. Optimum utilization of resources and effective administration: Management principles facilitate optimum use of resources by coordinating
the physical, financial and human resources. They also help in better administration by discouraging personal prejudices and adopting an objective approach.
3. Scientific decisions: Decisions based on management principles tend to be more realistic, balanced and free from personal bias.
4. Meeting the changing environmental requirements: Management principles provide an effective and dynamic leadership and help the organization to implement the changes.

Fayol’s Principles of Management

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 in 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 fortune of the company. For his contributions, he is well known as the “Father of General Management”.

Principles of Management developed by Fayol

1. Division of work: Work is divided in small tasks/job and each work is done by a trained specialist which leads to greater efficiency, specialization, increased productivity and reduction of unnecessary wastage and movements.

2. Authority and Responsibility: Authority means power to take decisions and responsibility means obligation to complete the job assigned on time. Authority and responsibility should go hand in hand. Mere responsibility without authority, makes an executive less interested in discharging his duties. Similarly giving authority without assigning responsibility makes him arrogant and there is fear of misuse of power.

3. Discipline: t is the obedience to organizational rules by the subordinates. Discipline requires good supervisors at all levels, clear and fair agreements and judicious application of penalties.

4. Unity of Command: t implies that every worker should receive orders and instructions from one superior only, otherwise it will create confusion, conflict, disturbance and overlapping of activities.

5. Unity of Direction: Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination.

Difference between Unity of Command and Unity of Direction

7. Remuneration of Employees: The overall pay and compensation should be, fair to both employees and the organization. The wages should encourage the workers to work more and better.6. Subordination of Individual Interest to General Interest: The interest of an organization should take priority over the interest of any one individual employee.

8. Centralization and Decentralization: Centralization means concentration of decisions making authority in few hands at top level. Decentralization means evenly distribution of power at every level of management. Both should be balanced as no organization can be completely centralized or completely decentralized.

9. Scalar Chain: The formal lines of authority between superiors and subordinates from the highest to the lowest ranks is known as scalar chain. This chain should not be violated but in emergency employees at same level can contact through Gang Plank by informing their immediate superiors.

10. Order: A place for everything and everyone and everything and everyone should be in its designated place. People & material must be in suitable places at appropriate time for maximum efficiency.

11. Equity: The working environment of any organization should be free from all forms of discrimination (religion, language, caste, sex, belief or Basis Unity of Command Unity of Direction nationality) and principles of justice and fair play should be followed. No worker should be unduly favoured or punished.

12. Stability of Personnel: After being selected and appointed by rigorous procedure, the selected person should be kept at the post for a minimum period decided to show results.

13. Initiative: Workers should be encouraged to develop and carry out their plan for improvements. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan.

14. Espirit De Corps: Management should promote team spirit, unity and harmony among employees. Management should promote a team work.

Taylor’s Scientific Management
Fredrick Winslow Taylor (1856-1915) was a person who within a very short duration (1878-1884) rose from ranks of an ordinary apprentice to chief engineer in Midvale Steel Company, U.S.A. Taylor conducted a number of experiments and came to conclusion that workers were producing much less than the targeted standard task. Also, both the parties – Management and workers are hostile towards each other.

Principles of Scientific Management

(1) Science, not rule of Thumb: There should be scientific study and analysis of each element of a job in order to replace the old rule of thumb approach or hit and miss method. We should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.

(2) Harmony, Not discord: It implies that there should be mental revolution on part of managers and workers in order to respect each other’s role and eliminate any class conflict to realize organizational objectives.

(3) Cooperation not individualism: It is an extension of the Principle of Harmony not discord whereby constructive suggestions of workers should be adopted and they should not go on strike as both management and workers share responsibility and perform together.

(4) Development of each and every person to his or her greatest Efficiency and Prosperity: It implies development of competencies of all persons of an organization after their scientific selection and assigning work suited to their temperament and abilities. This will increase the productivity by 1. Functional Foreman-ship: Functional foreman-ship is a technique in which planning and execution are separated. There are eight types of specialized, professionals, four each under planning and execution who keep a watch on all workers to extract optimum performance.

Planning Incharges:
1. Route Clerk to specify the exact sequence and route of production.

2. Instruction card clerk is responsible for drafting instructions for the workers.

3. Time and cost clerk to prepare time and cost sheet for the job.

4. Shop Disciplinarian to ensure discipline and enforcement of rules and regulations among the workers.

Production Incharges:
1. Gang boss is responsible for keeping tools and machines ready for operation.

2. Speed boss is responsible for timely and accurate completion of job.

3. Repair boss to ensure proper working conditions of tools and machines.
4. Inspector to check quality of work.

2. Standardization and Simplification of work: Standardization refers to developing standards for every business activity whereas Simplification refers to eliminating superfluous varieties of product or service. It results in savings of cost of labour, machines and tools. It leads to fuller utilization of equipment and increase in turnover.

3. Method Study: The objective of method study is to find out one best way of doing the job to maximize efficiency in the use of materials, machinery, manpower and capital. (1) Which technique of scientific management is being violated here? (Hintsss: Functional Foreman ship.) (2) Write one consequence of this violation.

4. Motion Study: It is the science of eliminating wastefulness resulting from using unnecessary, ill-directed and inefficient motions by workers and machines to identify best method of work.

5 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, frame suitable incentive schemes & determine labour costs.

6. Fatigue study: Fatigue study seeks to determine time and frequency of rest intervals in completing a task. The rest interval will enable workers to regain their lost stamina thereby avoiding accidents, rejections and industrial sickness.

7. Differential piece wage system: This system links wages and productivity. The standard output per day is established and two piece rates are used: higher for those who achieve upto and more than standard output i.e. efficient workers and lower for inefficient and slow workers. Thus, efficient workers will be rewarded & inefficient will be motivated to improve their performance.
For example: Standard task is 10 units. Rates are: Rs 50 per unit for producing 10 units or more and Rs 40 per unit for producing less than 10 units Worker A produces 11 Units; he gets Rs 550 (11 units x 50 per unit) Worker B produces 09 units; he gets Rs 360 (9 units x 40 per unit) This difference of Rs 190 will motivate B to perform better.

8. Mental Revolution: It involves a complete change in mental outlook and attitude of workers and management towards one another from competition to cooperation. The management should create pleasant working conditions & workers should work with devotion and loyalty. Instead of fighting over distribution of profits, they must focus attention on increasing it.

 

MCQs for NCERT Class 12 Business Studies Principles of Management..

Question. Which of the following option is false? Principles of management are

(a) Applicable only in large firms 

(b) Formed by practice and experience of managers

(c) Flexible 

(d) Contingent 

Answer : A

 

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 : B

 

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 : B

 

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 : A

 

Question. Match functions with the nature of specialists: Functions done Name of Boss

1. Keep Machines and tools ready A. Speed Boss

2. Keep check on quality of work B. Inspector

3. Timely and accurate completion of work C. Repair Boss

4. Ensure proper working condition of machines D. Gang Boss

Find the correct match:

(a) 1(D) 2(B) 3(A) 4(C) 

(b) 1(C) 2(B) 3(A) 4(D)

(c) 1(B) 2(C) 3(A) 4(D) 

(d) 1(D) 2(B) 3(C) 4(A)

Answer : A

 

Question. Employees’ turnover refers to the turnover achieved by employees. (True/False)

Answer : False

 

Question. Functional Foremanship violates the principle of unity of command. (True/False)

Answer : True

 

Question. Assertion (A): According to Taylor, there should be an almost equal division of work and responsibility between workers and management.

   Reason (R): The principle of ‘harmony not discord’ says that there should be complete harmony between management and workers.

Find the correct option:

(a) Both A and R are true and R is the correct explanation of A

(b) Both A and R are true but R is not the correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

 

Answer : (b) Both A and R are true but R is not the correct explanation of A Explanation: Both A and R are correct but R is not the correct explanation of A as per Taylor, ‘Principle of cooperation not individualism’

 

Question. Principles of management equip the managers to foresee the cause and effect relationships of their decisions and actions so that the wastages associated with a trial and error approach can be overcome. Identify the point of significance of principle of management highlighted here.

Answer : Optimum utilization of resources and effective administration

 

Question. Reema is one of the most successful managers of her company, Globe Ltd. She knows that the principles of management are intended to apply to all types of organisations, business as well as non-business, small as well as large, public sector as well as private sector. One of the points related to the nature of management principles is being highlighted in the above description. Identify the point. 

Answer : Universal Applicability

 

Important Exam Questions for NCERT Class Business Studies 12 Principles of Management

 

Question. A subordinate receives order from more than one loss’ . Which principle in violated? 

Answer: Unity of command.

 

Question. In your school, you observe that books are kept in office, chalks in the library and office records in the staff room.

1. Which principle of management is violated here and why?

2. How will that affect the achievement of school objectives?

3. As a manager, what steps will you take to rectify the shortcomings? 

Answer:

1. The principle of “Order”

2. In the absence of orderliness, school objectives will not be achieved efficiently and effectively.

3. Things should be placed at appropriate places to achieve maximum efficiency with given time framework.

 

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 of requisition tools and materials from the stores department. Can the production manger blame the foreman if he is not able to achieve the desired target? Explain briefly the principle relating to the situation. 

Answer: No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and materials form the stores department. Since he has no authority, he could not fulfil his responsibility.

In this case the principle of „Authority and Responsibility‟ is violated. Fayol suggested tht there must be a balance between authority and responsibility. Authority and responsibility must go hand in hand. Responsibility without adequate authority will make the subordinate ineffective, I.e., he will not be able to perform his duties properly. At the same time giving authority without fixing responsibility may lead to misuse of of authority.

 

Question. Soniya Ltd. was engaged in the business of manufacturing auto components. Lately, its business was expanding due to increased demand for cars. The competition was also increasing. In order to keep its market share intact, the company directed its workforce to work overtime. But this resulted in many problems.

Due to increased pressure of work the efficiency of workers declined. Sometimes, the subordinates had to work for more than one superiors. The workers were becoming indiscipline. The spirit of teamwork, which had characterized the company previously, had begun to wane. Identify any three principles of management (as given by Henry Fayol) which were begin violated, quoting the lines from the above case.

Answer:

1. Unity of command -“Sometimes, the subordinates had to work for more than one superiors.‟

2. Discipline- “The workers were becoming indiscipline.”

3. Spirit de corps-“The spirit of teamwork, which had characterized the company previously, had begun to wane.”

 

Question. Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to given any further discount rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees.

In context of the above case:

1. Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.

2. Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.

3. State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question. 

Answer:

1. The various principles of management that are being applied by Radhika are listed below:

a. Principle of Division of work:

“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”

b. Principle of Centralization and Decentralization:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”

c. Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a each bonus to each of these employees to honour her commitment.”

2. The principle of management which is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”

3. One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

 

Question. ‘Aapka vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities. On its founders day a stage performance had to be put up. A committee of ten prefects was constituted to plan different aspect of the function. They all decided to use recycled paper for decoration. There was a spirit of unit and harmony and all members supported each other. With mutual trust and belongingness the programme was systematically planned and executed. Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning and executing the programme. He was so inspired by the success of the function that he asked his father to apply to same principle in his business. His father replied that he was already using this principle.

Answer: 1. Identify the principle of management applied for the success of the programme.

2. State any three features of management highlighted in the above para. (5)

1. a. Espirit de corps b. Management is pervasive-:he asked his father to apply the same principle in his business.’

Management is pervasive as it can be applied to all types/levels of organizations.

2. Management is a group activity –„There was a spirit of unity and harmony and all members supported each other.’

Management is a group activity because it requires team work and/or coordination of individual efforts.

 

Question. Gaurika has been appointed as the chief organizer of a weeklong cultural event. Being a staunch follower of scientific management, she decides to execute her work by putting into practice the various techniques of scientific management. On the basis of several observations, she is able to determine that the standard time taken by the security officer at the gat to check the credentials of each visitor is 30 seconds. So she decides to employ two persons on this job for every function along with the other necessary support staff. She considers the fact that every day, the functions will take place in three shifts of four hours each, therefore it is important to give breaks to the support staff even in a single shift to take her/his lunch etc. moreover, on introspection, she determines that the best way to distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would help to save time and eliminate any kind of confusion. In the context of the above case:Identify and explain the various techniques of work study which have been put into practice by Gaurika. 

Answer: The various techniques of work study which have been put into practice by Gaurika are outlined below: 1. Time Study: 2. Fatigue Study: 3. Method Study:

Important Questions for NCERT Class 12 Business Studies Principles of Management

Question. The principle which emphasises kindliness and justice in the behaviour of managers towards workers is
(a) equity
(b) Order
(c) Espirit de Corps
(d) Initiative

Answer : equity

Question. CEOs of Uber and Zomato decided to look after the financial needs of the employees during the ill effects of COVID 19 as they believed they are the people who helped them create their business. The decision of retention of employees relates to which of the following principle of management?
(a) Esprit de corps
(b) Stability of tenure of personnel
(c) Discipline
(d) Remuneration of employees

Answer : Remuneration of employees

Question. When a superior does not fulfil the promise to raise the salary/wages of workers on achievement of target effectively and efficiency, it is violation of
(a) Principle of Renumeration
(b) Principle of Discipline
(c) both (a) and (b)
(d) None of the above

Answer : B
Question. Management Principles provide
(a) Readymade solution to managerial problems
(b) Guidelines for managerial action
(c) Guarantee for success of an organisationn
(d) All of the above

Answer : B

Question. Gang Plank permits direct communication between
(a) Employees working at same level
(b) Any employees irrespective of their level
(c) Employees of same department only
(d) None of the above

Answer : B

Question. Principle of Responsibility and Authority insists on
(a) Responsibility > Authority
(b) Authority > Responsibility
(c) Responsibility = Authority
(d) All of the above

Answer : C

Question. Frequent transfer and turnover of employees lead to violation of
(a) Principle of Espirit De Corps
(b) Principle of Discipline
(c) Principle of Initiative
(d) Principle of Stability of Personnel

Answer : D

Question. If a manager is biased in dealing with people from different states, he is violating
(a) Principle of Discipline
(b) Principle of Espirit De Corps
(c) Principle of Renumeration
(d) Principle of Equity

Answer : D

Question. ‘Keshav 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. Taylor devised the concept of assembly line by using _____________
(a) Fatigue Study
(b) Motion Study
(c) Time Study
(d) Method Study

Answer : B

Question. Simplification technique insists on
(a) Using simple method of production
(b) More varieties of product
(c) Elimination of unnecessary diversity of products, size and types
(d) All of the above

Answer : C

Question. The main objective of Fatigue Study is
(a) To eliminate tiring movements of workers
(b) To decide number, duration and frequency of break intervals
(c) To differentiate productive and non-productive movements of workers
(d) All of the above

Answer : B

Question. The main objective of Fatigue Study is ------------------.
(a) To eliminate tiring movements of workers
(b) To decide number, duration and frequency of rest intervals
(c) To differentiate productive and non-productive movements of workers
(d) All of the above

Answer : B

Question. The principles of management are said to be flexible as -----------------.
(a) they aim at influencing behavior of human beings.
(b) they are general guidelines to action, but do not provide readymade solutions to management problems.
(c) they can be modified by the manager when the situation so demands.
(d) their application is dependent upon the prevailing situation at a particular point of time.

Answer : C

Question. Suraj was engaged in the business of carpet making. Since company was making handmade carpet as well as machine made carpet, there were lot of overlapping of activities. So, the Production manager advised that there should be two separate divisions where in each division should have its own head, plans and execution.
Identify the principle of management insisted by production Manager.
(a) Unity of command
(b) order
(c) Unity of direction
(d) Equity

Answer : C

Question. ---------------- is an extension of the principle of division of work but it violates the principle of Unity of command.
(a) Cooperation, not individualism
(b) Functional foremanship
(c) Unity of Direction
(d) Standardization and Simplification of work

Answer : B

Question. Gang Plank permits direct communication between ----------------.
(a) Employees working at same level
(b) Any employees irrespective of their level
(c) Employees of same department only
(d) None of the above

Answer : B

Question. The main objective of the motion Study is-------------------.
(a) To provide more work to the workers
(b) To separate planning functions with other functions
(c) To eliminate unproductive movement
(d) To study standard time.

Answer : C

Question. Principle of Order is concerned with -------------------.
(a) Orderly arrangements of various resources
(b) Giving order to employees
(c) Receiving order from top level
(d) None of the above.

Answer : A

Question. Taylor believed that there was only one best method to maximise efficiency. This method can be developed through study and analysis. Identify the principle of Scientific management being discussed above:
(a) Harmony not discord
(b) Science not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) Cooperation not individualism

Answer : B

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

Answer : A

Question. Management Principles provide -----------.
(a) Readymade solution to managerial problems
(b) Guidelines for managerial action
(c) Guarantee for success of an organization
(d) All of the above

Answer : B

 

Answer the Questions based on the paragraph given below.

Rajat Joined as a CEO of Bharat Ltd. a firm manufacturing computer hardware. On the first day he addressed the employees. He said that a good company should have an employee suggestion system and he wished to minimize employee turnover to maintain organizational efficiency. He informed all employees that he would ensure that all agreements were clear, fair and there would be judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with sternly to send the message that everyone was equal in the eyes of management. Also, that he would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimize need for using penalties. He told all present that the interests of the organization should take priority over the interests of any one individual employee.

Question. Identify the principle of management in the following line. “He said that a good company should have an employee suggestion system.”
(a) Unity of command
(b) discipline
(c) Unity of direction
(d) initiative

Answer : D

Question. Identify the principal of management in the following lines “Which would give rise to a spirit of mutual trust and belongingness among team members.
(a) Discipline
(b) Initiative
(c) Unity of command
(d) Esprit de corps.

Answer : D

Question. Identify the principal of management in the following lines. “He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties.”
(a) Initiative
(b) Discipline
(c) Equity
(d) Esprit de corps.

Answer : B

Question. Identify the principle of management in following line. “He wished to minimize employee turnover to maintain organizational efficiency.”
(a) Stability of personnel
(b) Centralization and Decentralization
(c) Discipline
(d) Remuneration of employees

Answer : A

 

Short Answer type Question Answer

Question. 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 are disturbed
iii) Stability is threatened
iv) Loyalty of employee is divided
v) Employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.
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 are disturbed
iii) Stability is threatened
iv) Loyalty of employee is divided
v) Employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.

Question. 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.
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. 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 behavior of manager towards their workers to ensure loyalty and devotion.
Answer : 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 behavior of manager towards their workers to ensure loyalty and devotion.

Question. 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 fulfill his responsibility.
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 fulfill his responsibility.

Question. 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.
Answer : 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.

 

Long answer type Questions

Question. The various principles of management that are being applied by Radhika are listed below:
1. Principle of Division of work:
“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”
2. Principle of Centralization and Decentralization:
“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”
3. Principle of Discipline:
“Therefore, after six months when the business was doing well, she awarded bonus to each of these employees to honor her commitment.”
The principle of management which is being violated by Radhika is Equity.
“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”
One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.
Answer : The various principles of management that are being applied by Radhika are listed below:
1. Principle of Division of work:
“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”
2. Principle of Centralization and Decentralization:
“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”
3. Principle of Discipline:
“Therefore, after six months when the business was doing well, she awarded bonus to each of these employees to honor her commitment.”
The principle of management which is being violated by Radhika is Equity.
“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”
One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

Question. (i)The principles of management serve as a broad and general guideline for the managerial decision making and action.
(ii)Satinder finds the principles of management different from those of pure science because the management principles are not as rigid as principles of pure science.
(iii) This is due to the fact that they deal with the human behavior and thus, need to be applied creatively in the light of given situation.
(iv) The importance of principles of management is described below:
1. Providing managers with useful insights into reality:
2. Optimum utilization of resources and effective administration
Answer : (i)The principles of management serve as a broad and general guideline for the managerial decision making and action.
(ii)Satinder finds the principles of management different from those of pure science because the management principles are not as rigid as principles of pure science.
(iii) This is due to the fact that they deal with the human behavior and thus, need to be applied creatively in the light of given situation.
(iv) The importance of principles of management is described below:
1. Providing managers with useful insights into reality:
2. Optimum utilization of resources and effective administration