CBSE Class 12 Business Studies Principles Of Management Worksheet Set B

Question. Explain the principles of scientific management.
Answer: a) use of science, not rule by thumb : As per taylor the work /task should not be performed by ‘hit or miss’ method, rather a logical and a rationale approach should be followed in each and every element of work.

b) Harmony , not discord : As per this principle, there should be harmony between the management and the employees, for which y=there should be mental rvolution. Both the parties should realize each others importance and work towards the profits of the firm. Conflicts should be avoided.

c) Cooperation , not individualism : According to this principle, all the activities in the firm should be carried out by the mutual cooperation of one and all. Managers and employees should jointly determine standards and take measures to achieve them.

d) Development of each and every person to his/her greatest efficiency/prosperity : As per this principle each and every employee should be given
importance, their efficiency should be taken care of right from the beginning, proper training to be given to increase and enhance their future prospect.

Question. Discuss the following techniques of scientific management:
a) Fatigue study b) Method study
Answer: Fatigue study : It refers to the duration and frequency of rest intervals to complete a particular job. The rest refreshes the workers. They work again with full energy and stamina. Long working hours, poor working conditions, unsuitable workcan also be the causes of fatigue. It should be reduced.

b) Method study : It refers to identify the most suitable, economical way of doing a particular activity.

To conduct this study, process chart, operation research technique can be used. The main objective is to minimize the cost of production and maximize the quality of the work. 

Question. Which technique of scientific management suggest that each worker should be supervised by specialists? Give the names of two designations of any two types of specialist.
Answer: Functional foremenship advocated the need of specialists. The two designations are :
a) Gang boss : The group leader is called gang boss. He is expected to ensure that both the machines and the workers are fit enough for production and the material required by them is available.
b) Repair boss : The main function of the repair boss is to keep the machines and tools in working condition.

Question. Distinguish between Time study and Motion study
Answer: 

Question. Write a brief note on ‘Discipline’ as a principle of management.
Answer: Discipline is essential for any successful work performance. Fayol considers discipline to mean obedience, respect for authority, and observance of established rules. Disciple is to be followed at all the levels of management. Fines and penalties should be imposed if they are not followed. A Manager can present a good example to his subordinated by being in discipline himself.

Question. Distinguish between Unity of command and Unity of Direction
Answer:

Question. Write a brief note on principle of “Initiative”
Answer: As per this principle, the employees should be given enough opportunity to take initiative inmaking and executing the plan in a certain limit. Employees should be free to come forward with their innovative ideas, suggestions before framing the plans.
Positive effects:
a) Develops feeling of belongingness in employees.
b) Employees achieve the target on time if they are set up with their consultation.

Question. Write a brief note on ‘Espirit-de-corps’
Answer: Espirit-de-corps refers to the team spirit among the employees. It believes in ‘Unity is strength’.
The superiors should share the credit of success with others in the organization.’we’ shoud take the place of ‘I’ in the organization. This increases the cooperation and creates a feelong of belongingness .

Question. If an organization does not provide the right place for physical and human resources, which
principle of Fayol is violated ? State two consequences.
Answer: The principle of Order is violated. Following are the evil effects if the principle is not followeda)
Misuse of resources.
b) Increase in the possibility of accidents.
c) Height of disorder.

Question. ’Taylor’s principles of scientific management and Fayol’s principals of management are mutually complementary’ Do you agree with this view. Give three reasons to support your Answer.
Answer: Yes, I agree that both the principles of management are complementary to each othera) Taylor brought a number of suggestions in order to increase the efficiency of workers whereas Fayol brought into existence many principles in order to solve the problems of high ranking managers
b) Taylor started his career as a labourer wheras Fayol started his career as a high ranking manager.
c) Taylor’s principles are relatred to production areas whereas Fayol’s orinciples are important to all functional areas such as finance,marketing etc.

LONG QUESTIONS

Question. Explain the Features of the principles of Management.
Answer: Management principles are the statements of basic truths which have the ability to predict the result of managerial activities.
Following are the featuresa)
Universal applicability : The principles are universal in nature. Universality refers to the truth which is equally applicable in all the spheres(both business and non business, in various countries too) All Business units such as Industries and non business units such as educational institutions has to apply more or less same principles in order to achieve their objectives.
b) General guidelines : The principles of management are not definite and specific like the principles of science. The principles of management cannot be applied blindly anywhere and are not applied strictly.
c) Formed by practice and experimentation : Principles of management are the result of the various problems faced by the professionals. As the problems came, research eas done,through observation and continuous experimentations these principles have been derived.
d) Flexibility : The principles of management as they exist today are not in the form of final truth. As there is the change in the environment,new kinds of problems arise and so the principles are altered and the new ones are propounded.
e) Relationship between cause and effect : The principles of management establish the relation between the cause and effect. For e.g If unity of command is followed, it avoids confusion among the employees. In this statement, Unity of command is the cause and avoidance of confusion is the effect.
f) Contingent : Mangement principles are contingent in nature which meAns. they are not permanent as they are affected by the changes.

Question. Discuss four importance of Principles of Management.
Answer:The importance of the principles of management becomes clear from the following pointsa) Provides useful insight to the managers : The principles of the management are evolved on the basis of experiments performed by the professionals. The principles of managers guides them how to act in a particular situation.
b) Scientific decisions : A scientific decision meAns. a balanced decision. The principles of
management provide the necessary training to the managers so that they can take rational decisions.

Important Questions for NCERT Class 12 Business Studies Principles Of Management

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

Answer :   C

Question. Which of the following statements best describe the principle of division of work?
(a) Resources should be divided among jobs
(b) Labour should be divided
(c) Work should be divided into small tasks
(d) It leads to specialisation

Answer :  C

Question. Management principles differ from pure science principles because management principles are....................
(a) vague
(b) situation-bound
(c) rigid
(d) easy to learn

Answer :  B

Question. What is the main objective of simplification in scientific management?
(a) To determine the productive moments
(b) To determine the unproductive moments
(c) To determine the best possible way or method to perform a task
(d) To eliminate unnecessary diversity of products

Answer :  D

Question. For the two statements given below, choose the correct option
Statement I The right to give orders and obtain obedience is known as responsibility.
Statement II The objective of method study is to determine the one best way to perform the job.
Alternatives
(a) Statement I is correct and Statement II is incorrect
(b) Statement II is correct and Statement I is incorrect
(c) Both the statements are correct.
(d) Both the statements are incorrect

Answer :  B

Question. Which of the following is not the principle of management given by Taylor?
(a) Cooperation, not individualism
(b) Science, not rule of thumb
(c) Harmony, not discord
(d) Functional foremanship

Answer :  D

Question. Which of the following principles aims at checking the ignoring of activities?  
(a) Unity of command
(b) Unity of direction
(c) Discipline
(d) All the above

Answer :  B

Question. What type of revolutionary change is talked about by F.W. Taylor?    
(a) Green Revolution
(b) White Revolution
(c) Mental Revolution
(d) None of these

Answer :   C

Question. In which year Taylor became an Engineer from a worker?   
(a) 1878
(b) 1884
(c) 1901
(d) 1903

Answer :  B

Question. Management should find ‘One best way’ to perform a task. Which technique of Scientific management is defined in this sentence?  
(a) Time Study
(b) Motion Study
(c) Fatigue Study
(d) Method Study

Answer :   D

Question. Which management expert is talked about mental revolution?  
(a) Fayol
(b) Taylor
(c) Hamman
(d) None of the above

Answer :   B

Question. A purchase manager of a company has to purchase 500 tonnes of raw material.
Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate, which principle of management has been violated by this situation?  
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity

Answer :   C

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. 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. 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. 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. 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

True/False :

Question. Employees’ turnover refers to the turnover achieved by employees.
Answer : False

Question. Functional Foremanship violates the principle of unity of command.
Answer : True

Important Questions for NCERT Class 12 Business Studies Principles of Management

Very Short Answer Type Questions :

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. A subordinate receives order from more than one loss’ . Which principle in violated? 
Answer :Unity of command.

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 manage-ment principles is being highlighted in the above description. Identify the point. 
Answer : Universal Applicability

Short Answer Type Questions :

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. ‘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 manage-ment 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.
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.
Answer : 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. 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. 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:

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.

Long Answer Type Questions :

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.

Meaning: Principles of management are broad & general guidelines for managerial decision- making.
Nature/Features/ Characteristics of Management Principles: -
a) They have universal applicability in all types of organizations. They are formed by practice & experimentation.
b) They are flexible and can be modified by the manager when the situation demands.
c) They are aimed at influencing human behavior; so they are mainly behavioral in nature.
d) The application of the principles of management is contingent or dependent upon the prevailing situation at a particular point of time.

Significance/ Importance of Management Principles: -
a) They provide the managers with useful insights into reality.
b) They help in optimum utilization of resources and effective administration.
c) They help to take scientific decisions.
d) They help in meeting changing environment requirements. They help in fulfilling social responsibility.
e) They are used for management training, education and research.

Fayol’s Principles of Management-
1) Division of work: - Whole work should be divided into small tasks / units; each task should be assigned to one person according to the capability, qualification and experience of the person.
2) Authority and responsibility: - Authority means the power to take decisions. Responsibility means obligation to complete the job assigned on time. Fayol suggested that there must be a balance between authority and responsibility.
3) Discipline: - It means obedience to organizational rules and employment agreement.
4) Unity of command: - An employee should receive orders / instructions from one and only one boss/ superior and should be accountable to one superior only.
5) Unity of direction: - All the units of an organization should be moving towards the same objectives through coordinated and focused efforts. (One unit, one plan).
6) Subordination of Individual Interest to General Interest: - The interest of the organization must supersede the interest of individuals or employees.
7) Remuneration of employees: - Remuneration of employees should be just and equitable to provide maximum satisfaction to the employees as well as employer.
8) Centralization and Decentralization: -Centralization refers to concentration of authority or power in few hands at the top level. Decentralization means even
distribution of power at every level of management. There must be a combination of both depending upon the nature and size of the organization.
9) Scalar chain: - The formal line of authority from highest to lowest rank is 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 been delayed.
10) Order: - It means there should be a fixed place for every person and everything in the organization and everyone and everything should be at its definite place i.e. material and social order.
11) Equity: - Equity means no discrimination on account of sex, religion, language, caste, belief or nationality etc.
12) Stability of Tenure of personnel: - It means no frequent termination and transfer. Employees should not be moved from their positions frequently, they should be given reasonable time to show results.
13) Initiative: - Initiative refers to taking the first step with self-motivation. The employees in the organization must be given an opportunity to take some initiative in making and executing a plan.
14) Espirit de corps: - Fayol emphasizes the need for team work, spirit of unity and harmony among employees. A manager should replace I with We.
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.

Scientific Principles: -
1) Science, not rule of thumb: Taylor believed that there was only one best method to maximize efficiency, which can be developed through scientific study.
2) Harmony, not discard: Taylor insists that there is need for both the groups i.e., workers group and management group to change their attitudes for each other. He called for a mental revolution which means complete change of attitude and outlook for each other. The true interests of the two are one and the same; that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa.
3) Cooperation, not individualism: Work must be carried on in cooperation with each other, with mutual confidence and understanding for each other.
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 the best method.

Taylor’s techniques of scientific management: -
1) Functional foremanship: -Taylor suggested activities of factory workers should be supervised by eight types of specialized foremen. He divided the work of factory in two departments:
Planning department: -Instruction card clerk, route clerk, time and cost clerk and disciplinarian.
Production department: - Gang boss, speed boss, repair boss and Inspector.
2) Standardization and Simplification of work: - It refers to the process of setting standards for various business activities whereas Simplification means to put an end to unnecessary types, qualities, size/weight etc. of products.
3) Method study: – Objective of method study is to find out one best way of doing the job. The objective of the whole exercise is to minimise the cost of production and maximise the quality and satisfaction of the customer.
4) Motion study: - It refers to the study of movements so that unproductive movements may be eliminated.
5) Time study: – It determines standard time taken to perform a well- defined job.
6) Fatigue study: – It seeks to determine the amount and frequency of rest intervals in completing a task.
7) Differential piece wage system: - It emphasizes on paying different rates of wages for efficient and inefficient employees. It rewards the efficient employees and motivates the inefficient ones to perform better.

MCQs Questions for NCERT Class 12 Business Studies Principles Of Management

Question. What study did Taylor make to set standard time for work?   
(a) Time study
(b) Fatigue study
(c) Motion study
(d) Method study

Answer : A

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

Answer :  A

Question. “Panchayats in our country have been given more powers to decide and spend funds granted to them by the government for welfare of villagers.” Identify the principle of management highlighted in the statement.
(a) Equity
(b) Centralisation and decentralisation
(c) Authority and responsibility
(d) Esprit de corps

Answer: B

Question. Karan Nath took over ‘D’ north Motor Company’ from his ailing father three months ago. In the past the company was not performing well. Karan was determined to improve the company’s performance. He observed that the methods of production as well as selection of employees in the company were not scientific. He believed that there was only one best method to maximise efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that ‘best method’. He asked the production manager to develop the best method and carry out the necessary training. The production manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to the customers. This method was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage.
Identify the principles of scientific management being discussed above:
(a) Science, not rule of thumb
(b) Development of each and every person to his or greatest efficiency and prosperity
(c) Harmony, not discord
(d) Both a and b

Answer: D

Question. A Production Manager set a target to manufacture 2,000 shirts in 2 months and accordingly divided the work among 10 employees. One of the workers fell ill and took medical leave for a month. The production manager divided his work among other workers in order to achieve the target on time. The workers cooperated for achievement of targets.
Which principle of management is highlighted here?
(a) Initiative
(b) Scalar chain
(c) Esprit De Corps
(d) Unity of direction

Answer: C

Question. Beena, a student of management, likes to relate what she learnt in class to real life situations. She observed many situations while watching educational programmes on television that remind her of concepts of scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. Name the technique of Scientific management that should be adhered to, while manufacturing parts for such products.
(a) Functional foremanship
(b) Standardisation and Simplification of work
(c) Differential Piece Wage System
(d) Method Study

Answer: B

Question. In order to set up standard target of performance for workers, it was necessary for Shiv Ltd. to fix standard time for workers to perform a particular job. For this Mr. Ganesh, the Production Manager of the company observed the workers when they were performing the job. He used a stop watch in hand and noted down the average time taken by workers for completion of the job. He repeated the same observation for 100 times and then calculated average time for the performance of the job. This was fixed as the standard time on the basis of which efficient and inefficient workers were distinguished. Identify technique of scientific management followed by Mr. Ganesh.
(a) Time Study
(b) Method Study
(c) Motion Study
(d) Fatigue Study

Answer: A

Question. The sales manager assigned a target of selling 50 electronic irons in one month to a group of 10 sales executives. They mutually decided to sell five electric irons each. However, after selling one electric iron, Arun (one of the sales executives) met with an accident. The other sales executives did not pay any attention to the remaining target of Arun and concentrated on their individual sales target. At the end of the month, only 46 electric irons could be sold. Identify the principle of management violated in the given case:
(a) Discipline
(b) Esprit De Corps
(c) Subordination of individual interest to general interest
(d) None of these

Answer: B

Question. In the festive season Kapoor industries (manufacturers of gift items) decided to reduce the rest interval of workers from 40 minutes to just eight minutes. However due to heavy workload and reduction in time of rest interval, the workers efficiency level went down and it led to fall in production level instead of rising. Which technique of scientific management should be followed by Kapoor industries?
(a) Time study
(b) Fatigue study
(c) Motion study
(d) None of these

Answer: B

Question. Henry Fayol was a   
(a) Social Scientist
(b) Mining Engineer
(c) Accountant
(d) Production engineer

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. Which one is not the Henry Fayol’s principle of management:   
(a) Division of Work
(b) Differential wages
(c) Scalar chain
(d) Equity

Answer :  B

Question. Which of the following statements best describes the principle of ‘Division of Work’?   
(a) Work should be divided into small task
(b) Labour should be divided
(c) Resources should be divided among jobs
(d) It leads to specialisation

Answer :  D

Question. Which study is not done under scientific management:  
(a) Motion
(b) Profit
(c) Time
(d) Fatigue

Answer :  B

Question. Who is the Father of Administrative Management?   
(a) Taylor
(b) Fayol
(c) Both
(d) None of these

Answer :  B

Question. Judicious application of penalties by the management is principle of
(a) Initiative
(b) Discipline
(c) Remuneration of workers
(d) Tenure of personnel

Answer : B

Question. Which study of Taylor aims at eliminating unnecessary movements to ensure timely completion of work.
(a) Method study
(b) Motion study
(c) Time study
(d) Fatigue study

Answer : B

Question. Taylor believed that there was only one best method to maximise efficiency. Which principle of scientific management has highlighted the above statement?
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Cooperation, not individualism
(d) Development of each and every person

Answer : B

Question. Which of the following statement best describes the principle of ‘Division of Work’?
(a) Work should be divided into small tasks
(b) Labour should be divided
(c) Resources should be divided among jobs
(d) It leads to specialisation

Answer : D

Question. The employees should be given reasonable time to show results. Any insecurity of job will result in high recruitment, selection and training cost. This principle relates to which of the following principles?
(a) Esprit de Corps
(b) Remuneration
(c) Stability of personnel
(d) Authority and responsibility

Answer : C

Question. The production manager of Jimmy Davis, a jeans manufacturing company, sets the target to manufacture 1,000 jeans per month to be completed by 10 workers. One of the worker fell sick and the work was divided by the remaining workers among themselves. Which principle of management has been set as an example by the employees?
(a) Esprit de corps
(b) Unity of direction
(c) Initiative
(d) order

Answer : A

Question. Violation of principle of ‘Esprit de Corps’ leads to
(a) minimize labour turnover
(b) minimize sales turnover
(c) loss of coordination
(d) disorder

Answer : C

Question. Which of the following statement correctly describe the meaning of principle of order?
1. Command by a superior to his subordinates
2. Materials, tools and apparatus should be kept at their respective place after use
3. Employees should be available at their respective workstations
Correct answer would be:
(a) Only 1
(b) 2 & 3
(c) 1 & 3
(d) 1,2 & 3

Answer : B

Assertion Reason Based Question :

Question. Assertion(A): Prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for employees and vice versa.
Reason (R): The principle of scientific management highlighted here is “Harmony, not discord”. Taylor recognised that ‘managers versus workers’ conflict helped none, the workers, the managers or the factory owners. He emphasised that there should be complete harmony between the management and workers. Both should realise that each one is important.
(a) Both Assertion (A) and Reason (R) are true and Reason ® is correct explanation of Assertion (R)
(b) Both Assertion (A) and Reason (R) are true but Reason (R ) is not the correct explanation of Assertion A)
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Answer: A

Question. Assertion(A): There should be an almost equal division of work and responsibility between workers and management.
Reason (R): The principle of scientific management highlighted here is “Cooperation, not individualism”. Management should work almost side-by-side with the workers helping, encouraging and smoothing the way for them. Management should not close its ears to any constructive suggestions made by the employees. They should be rewarded for their suggestions which results in substantial reduction in cost.
(a) Both Assertion (A) and Reason (R) are true and Reason R is correct explanation of Assertion A
(b) Both Assertion (A) and Reason (R) are true but Reason R is not correct explanation of Assertion R.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Answer: A

Question. Assertion(A): The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use eminent human effort.
Reason (R): The principle of management highlighted here is “Division of work”. In business ,work can be performed more efficiently if it is divided into special tasks; each performed by a specialist or trained employee. This results in efficient and effective output.
(a) Both Assertion (A) and Reason (R) are true and Reason R is the correct explanation of Assertion A.
(b) Both Assertion (A) and Reason (R) are true but Reason R is not the correct explanation of Assertion A.
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Answer: A

Question. Assertion(A): Principles of management are mainly behavioural in nature.
Reason (R): Management principles aims at influencing behaviour of human beings.
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R )is not the correct explanation of Assertion( A)
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Answer: A

Question. Assertion(A): Principles of management establish accurate cause and effect relationship.
Reason (R): The principles of management tell us if a particular principle was applied in a particular situation, what would be its likely effect.
(a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R )is not the correct explanation of Assertion( A)
(c) Assertion (A) is true and Reason(R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Answer : D

VERY SHORT TYPE QUESTION :

Question. What is meant by ‘Principles of Management’?
Answer: It is broad and general guidelines for decision making and behaviour of management.

Question. Give anyone difference between Principle and Technique.
Answer: Principles are guidelines to take decision whereas techniques are methods to take action.

Question. What is meant by 'Universality of management principles'?
                                                        Or
Why is it said that management principles are universal?
Answer: This it means that they are applicable to all kinds of organizations.

Question. The principles of management aren't rigid and can be modified when the situation demands. Which nature of principles is being discussed here?
Answer: Flexibility.

Question. Factory owners or managers relied on personal judgment in attending to the problems they confronted in the course of managing their work. Which principle of Taylor is it referring to ?
Answer: 'Rule of thumb'

Question. What do you mean by Mental Revolution?
Answer: Mental Revolution means revolutionary change in the attitude of both workers and managers from competition to cooperation.

Question. Principle of cooperation, not individualism, is an extension of which principle given by Fayol?
Answer: Principle of Harmony, not discord.

Question. What is the aim of Method study?
Answer: Aim is to find one best method of doing the job.

Question. What is the aim of doing motion study?
Answer: The aim of this study is to eliminate unnecessary movements so as to ensure timely completion of work.

Question. What is the purpose of time study?
Answer: To estimate/ determine a fair day’s work. 

Question. Name the techniques of Taylor which is the strongest motivator for a worker to reach standard performance.
Answer: Differential Piece Wage system.

Question. The directors of XYZ limited, an organisation manufacturing computers, want to double the sales and have given the responsibility to the sales manager. The sales manager has no authority either to increase sales expense or appoint new salesmen. Hence, he could not achieve this target. Identify the principle violated in this situation.
Answer: Principle of Authority and Responsibility.

Question. A company manufacturing motorcycles and cars should have separate divisions for both, headed by separate divisional managers, separate plans and resources. Identify the principle with the help of this example.
Answer: Unity of Direction.

Short Answer type Qstionsue

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. Principal of Taylor and Fayol are mutually complementary. One believed that management should not close its ears to constructive suggestion made by the employees, while the other suggested that a good company should have an employee suggestion system, whereby suggestions which result in substantial time or cost reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred in the above para.
Answer: Cooperation, not individualism AND Initiative.

Question. Shaaranya 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 superior. The workers were becoming indisciplined. The spirit of team work, which had characterized the company previously, had begun to wane.
Identify, quoting the lines from the above the General principles of managements being violated.
Answer: 1.Sometimes the subordinates had to work for more than one superior.-
Unity of command
2. The workers were becoming indiscipline. - Principle of discipline
3. The spirit of team work, which had characterized the company previously, had begun to wane- Espirit-de-corps

Question. An environmental conscious multinational company "AXN Ltd." follows certain well defined business principles that result to minimize the employee turnover. Following are some of the important environmental factors followed by 'AXN Ltd.'
(1) Honour the law of every country in which it operates.
(2) Respect the culture and customs of all nations.
(3) Provide clean and safe products to enhance the quality of life throughout the world.
(4) Develop a culture in the company that enhances individual creativity and teamwork while honouring mutual trust and respect between management and labour.
From the above:
(i) Identify and state any one general principle of management and any one dimension of business environment.
(ii) Also identify any two values which the above guiding principles and environmental factors are conveying to the society.
Answer: (i) Principle of management:
(a) Stability of personnel
(b) Esprit de corps
(c) Initiative
Dimension of business environment :
(a) Legal environment.
(b) Social environment.
(ii) Values being conveyed: 
(a) Respect for law
(b) Cleanliness and hygiene
(c) Raising standard of living
(d) Secularism

Long Answer type Qstionsue

Question. Explain the technique ‘Functional Foremanship’
Answer: Functional foremanship is the extension of the principle of specialization.
This technique emphasises on the separation of planning from execution. To facilitate it, Taylor suggested setting up of "planning in charge" and "production in charge".
FUNCTIONAL FOREMANSHIP
Planning In charge: The main function of "planning in charge" is to plan all aspects of a job to be performed. It consists of four positions:
(i) Route clerk: He determines the sequence to perform various mechanical and manual operations.
(ii) Instruction card clerk: He issues instructions to the workers to be followed by them.
(iii) Time and cost clerk: He is concerned with the framing of time schedule on the basis of determined route. Also, he keeps the record of the cost of operations.
(iv) Disciplinarian: He is concerned with the coordination in each job from planning to successful execution. He enforces rules and regulations and maintains discipline.
Production In charge: It consists of following four specialists who are concerned with the execution of plAnswer:
(i) Speed Boss: He checks whether work is progressing as per schedule. He ensures timely and accurate completion of jobs.
(ii) Gang Boss: He arranges machines, materials, tools, and equipment properly so that workers can proceed with their work.
(iii) Repair Boss: He ensures that all machines, tools, equipment are in perfect working order.
Inspector: He ensures that the work is done as per the standards of quality set by planning department.

Question. Name and explain that principle of Fayol which suggests that communication from top to bottom should follow the official lines of command.
Or
Explain the 'Principle of Scalar Chain' with an example.
Answer: In an organization, the formal lines of authority, from highest to lowest level of all superiors and subordinates, are known as scalar chain. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom, linking superiors and subordinates at all levels. The scalar chain serves as a chain of command as well as communication. In normal circumstances, the formal communication is required to be made by following this chain.  

Example: The above figure shows the scalar chain linking managers at lower levels with the top management. If D has to communicate with G, The message should ordinarily move up through C and B to A, and then down from A to E, F and G.
Above mentioned chain has following disadvantages:
(i) It causes delay in reaching communication to the required level.
(iii) Creates the possibility of distortion of information flow as various levels are involved.
To avoid delays and to remove hurdles in the exchange of information, concept of Gang Plank has been suggested by Fayol, shown by the dotted line joining D and G.

Question. Explain the techniques of scientific management which is the strongest motivation for a worker to teach standard performance.
Answer: Explain in brief differential wage system.

Question. Explain the following techniques of scientific management.
(i) Time study
(ii) Simplification of work
Answer: (i) It refers to determine the standard time required to complete a particular work……..explain the whole study in brief.
(ii) Simplification means putting an end to the unnecessary types qualities sizes, weights etc. …..explain with examples.

Question. State the two methods through which management principles have been derived.
Answer: a) Observation method

b) Experimental method

Question. What is the objective of fatigue study?
Answer: To find out ….

a) The number of rest intervals.

b)The frequency of rest intervals.

c) The duration of rest interval.

Question. “The Principles of management are different from those used in pure science “. Comment.
Answer: The Principles of Management differ from those used in pure science as they are not rigid like principles of pure science since, they deal with human behavior which is unpredictable.

Question. Who Suggested the concept of functional foremanship?\
Answer: F.W.Taylor.

Question. Rohit keeps machines,materials,tools etc,ready for operations by concrnened workers’. Whose work is described by this sentence under functional foremanship?
Answer: Gang Boss 

Question. What is meant by flexibility of principles of management?
Answer: The principles of management are not rigid. They can be modified by the manager when the situation so demands.

Question. What is the latest development in scientific management?
Answer: Lean Manufacturing.

Question. Which principle of management ensures fairness to all employees by treating them as fairly as possible?
Answer:Principle of equity.

Question. What is mental revolution?
Answer: Change in attitude of management & workers towards each other.

Question.‘ A subordinate receives order from more than one loss’ . Which principle in violated?
Answer: Unity of command.

Question. Name the founder of gender theory of management?
Answer: Henry Fayol.

Question. according to taylor “ even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed “ which principle of his is emphasized here?
Answer: sciencse not rule of thumb

Question.“the true intentions of management and workers are one and the same and the prosperity of the one cannot exist without the prosperity of the other” which principle of taylor is being talked about.
Answer: harmony not discord.

Question. what type of organizational objective is satisfied if an organization provides salary to the workers commensurate with their job?
Answer: personal objective

Question. the production manager of a company is trying to produce good with minimum cost. Name the concept which is being focused by management.
Answer: efficency

Question. Hina & Hitesh are typists in a company having the same educational qualification. Hina is getting Rs3000 per month $ Hitesh is getting Rs 4000 per month as salary for the same work hours .Which principle of management is violated in this case? Name the principle $ explain it. 
Answer: In this case the ‘Principle of Equity’ is violated .As both are having same qualification working at same authority level but getting different salaries .

Question. Explain giving reasons under which situations techniques of Taylor are not applicable . 
Answer: Some techniques of Taylor are not universally applicable under some situations. These are:-
(a) Functional Foremanship-This technique is not applicable in the organizations adopting principle of unity of command.
b) Differential piece rate system: This technique is not possible in organization following principle of equity.
c) Simplification: This technique is not suitable for organizations having objcective of diversification and expansion of line of products and varieties.

Question. develop a differential piece rate plan for a shirt manufacturing company.
Answer: standard target for an average worker 40 shirts in a day wage rate for those who achieve the target rs 10 per shirt wage rate for those who produce less than
that rs 8 per shirt

Question. an employee is asked to produce 100 units in one weeks time but he is not allowed to take out raw material from the store at the end of the week the employee could not complete his target because of insufficient supply of raw
materials .can he be blamed ? which principle is associated with this condition?
Explain it
Answer: no, we cannot blame the employee. The principal associated with this condition is principal of authority and responsibility.

Question. mohan a manager expects his subordinates to adopt to the new environment and working conditions without giving them time to settle down.
Which principle is being overlooked.
Answer: the principle overlooked is principle of stability of tenure

Question. mohan a manager does not distribute the work among his subordinates either according to the capability or proportionately which principal of management is overlooked . what can be the consequences?
Answer: the principal overlooked is the principal of division of work
Following can be the consequences
1. lack of efficiency and effectiveness
2. lack of specialization

Important Questions for NCERT Class 12 Business Studies Principles Of Management

Question. Which of the following elements should be kept in mind while determining fair remuneration?  
(a) Cost of living
(b) Demand of labourers
(c) Qualification
(d) All of these

Answer :  D

Question. Principles of management are NOT 
(a) Universal
(b) Flexible
(c) Absolute
(d) Behavioural

Answer :  C

Question. What was the title of the research paper written by Taylor in 1903? 
(a) Factory management
(b) Shop management
(c) Office management
(d) Production management

Answer :  A

Question. What type of centralisation Fayol talks about? 
(a) Little Centralisation
(b) More Centralisation
(c) Effective Centralisation
(d) No Centralisation

Answer :  C

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

Answer :  D

Question. Which of the following statements is FALSE about Taylor and Fayol? 
(a) Fayol was a mining engineer whereas Taylor was a mechanical engineer
(b) Fayol’s principles are applicable in specialised situations whereas Taylor’s principles have universal application
(c) Fayol’s principles were formed through personal experience whereas Taylor’s principles were formed through experimentation
(d) Fayol’s principles are applicable at the top level of management whereas Taylor’s principles are applicable at the shop floor

Answer :  B
 
Question. In what situation has Fayol permitted the violation of the Principle of Scalar Chain?  
(a) When the employee is extraordinarily capable
(b) At the time of sudden happening
(c) In all conditions and circumstances
(d) In no condition or situation

Answer :  B

Important Questions for NCERT Class 12 Business Studies Principles Of Management

Question. Organisation Interest supersede employees interest is indicated in
(a) Principle of Subordination of Individual Interest to General Interest
(b) Principle of Espirit De Corps
(c) Principle of Initiative
(d) Principle of Discipline
Answer : A

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

Answer : C

Question. Unity of Direction insists on
(a) One unit one plan
(b) Efforts of all employees should be directed in one direction only
(c) No overlapping of different department
(d) All of the above

Answer : D

Question. According to Fayol
(a) Organisation must use policy of centralisation
(b) Organisation must use policy of decentralisation
(c) Organisation must use combination of centralisation and decentralisation
(d) None of the above

Answer : C

Question. Principles of management are not
(a) universal
(b) flexible
(c) absolute
(d) behavioural

Answer : absolute

Question. Principles of management cannot be
(a) defined
(b) applied anywhere
(c) tested in Laboratories
(d) part of Business

Answer : tested in Laboratories

Question. How are principles of management formed?
(a) By experiments in a laboratory
(b) By experiences of managers
(c) By experiences of customers
(d) By propagation of social scientists
Answer : By exsperiences of managers

Question. ‘Hindustan Lever Limited’ decided to divest in non-core business of chemicals and seeds.’ Which point of importance of principles of management is highlighted here?
(a) Fulfilling social responsibility
(b) Optimum utilization of resources
(c) Meeting changing environment requirements
(d) Scientific decisions
Answer : Meeting changing environment requirements

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 : Applicable only in large firms

Questions and Answer

Question. Which technique of Taylor differentiates between an efficient and an inefficient worker?
Answer : Differential Piece Wage System.

Question. According to which principle a manager should replace I with We?
Answer : Esprit de corps.

Question. What are principles of management?
Answer : Principles of management are general guidelines for managerial actions.

Question. The subordinates in a company receive orders regarding their work from different operative heads for the same task. Which principle of management is being overlooked?
Answer :Unity of command

Question. Why are principles of management important?
Answer : Principles of management are important because they help in decision-making, they ensure optimum utilisation of resources, they help in scientific decision-making, help in meeting changing environmental requirements etc.

Question. What is centralisation and decentralisation?
Answer : Centralisation means concentration of decision-making power in a few hands.
Decentralisation means distribution of authority among more than one person.

Question.State the main point of difference between unity of command and unity of direction.
Answer : Unity of command means an employee should receive orders from only one boss.
Unity of direction means the efforts of all units of an organisation must be focused towards achievement of organisational goals.

Question. Describe the following scientific techniques:
Time study, Fatigue study , motion study, method study.
Answer :Time study:It determines the standard time required to perform a defined job.
Fatigue study:It determines the frequency of rest intervals required to complete a task without getting physically and mentally tired.
Motion study:It aims to eliminate unnecessary movements while doing a work and designs the best method to perform repeated jobs.
Method study:It finds out the best possible way of doing a job after deciding sequence of operations.

Question. Which study decides the sequence of operations beginning from the procurement of raw materials and continuing till the product is finally delivered to consumers.
Answer : Method study

Question.The technique of simplification refers to what?
Answer : Eliminating unnecessary diversity of products.

Question. State the role of gang boss in functional foremanship.
Answer : In functional foremanship the role of gang boss is to keep machines and tools ready for operation by workers.