CBSE Class 12 Business Studies Principles of Management Important Questions

VERY SHORT ANSWER TYPE QUESTIONS (1 MARK)

QUES 1: What is meant by ‘principal of management’?                          

Ans.    Principal of management are broad and general guidelines for decision making and behavior of managers.

QUES 2: State any one principal of scientific management.                                          

Ans.    Cooperation not individualism: according to this principle, all activities done by different people must be carried on with a spirit of mutual cooperation.

QUES 3: What is determined by time study?                                                                   

Ans.     Time study determines the standard time taken to perform a well defined job.

QUES 4: Give the meaning of ‘mental revolution’ as suggested by F.W. Taylor.      

Ans.   It refers to change in attitude of management and workers towards one another from competition to cooperation.

QUES 5: What is meant by ‘Universal Applicability’ of principles of management?     

Ans.    It means that the principles of management are intended to apply to all types of organizations at all places.

QUES 6: State one reason why ‘Principles of Management’ are important?    

Ans.  Principles of management are important because they provide useful insight to managers.

QUES 7: State the role of ‘Speed Boss’ in functional foremanship?            

Ans.       The role of ‘Speed Boss’ is to ensure timely and accurate completion of job.

QUES 8: “The principal of management are different from those of pure science.” state any one difference.

Ans.       The principal of management are not definite like the principles of pure science.

QUES 9: Principle of cooperation, not individualism, is an extension of which principle given by Fayol?

Ans.    Principle of Harmony, not discord.

QUES 10: What is the aim of Method study?

Ans.    Aim of Method study is to find one best method of doing the job.

QUES 11: What is the aim of doing motion study?

Ans.    The aim of this study is to eliminate unnecessary movements so as to ensure timely completion of work.

QUES 12:  The directors of XYZ limited, an organization 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

Ans. Principle of Authority and Responsibility.

QUES 13: Which principle does functional foremanship violate?                           

Ans.    Unity of command

QUES 14: Give any one effect of principle of division of work?                

Ans.    Specialization, speed, accuracy.

QUES 15: A sales person is asked to finalize a deal with customer. The marketing manager allows him to give a discount of up to 10% but the Finance Manager allows him to give discount of up to 25%. Which principle is violated here?                                  

Ans.    Unity of Command.

QUES 16: “Workers should be encouraged to develop and carry out their plans for development.” Identify the principle of management formulated by Fayol.         

Ans.    Principle of Initiative

SHORT ANSWER TYPE QUESTIONS  (3 OR 4 MARKS)

QUES 1:  Give three points reflecting the nature of management principles.

Ans.    Management principles are (any three):

            (i)   Universal in application.

(ii)  General guidelines.

(iii) Flexible and can be applied differently under different conditions.

(iv) Formed by practice and experimentation.

(v)  Establish cause and effect relationships.

QUES 2:    "Principles of management achieve results economically." Explain?

Ans.    Management principles help in setting realistic objectives for the business because the objectives are set with the participation of employees. Hence, the employees work to their full potential and their commitment level increases because objectives of organization become their own objectives.

For example, the principle of maximum output rather than restricted one ensures more output. More output lowers cost per unit and hence profit per unit increases.

QUES 3:  Explain briefly the technique of fatigue study?                   

Ans.      Fatigue  study  determines  the  amount  and  frequency  of  rest  intervals  in completing  a  task.  Workers cannot work at a stretch. After putting in work for a certain periods of time, they feel tired which affects their performance. If they are allowed rest intervals, they will re-gain their stamina and will resume their work with greater efficiency.

QUES 4:  State any three reasons as to why proper understanding of management principles is necessary.                                                    

Ans.      Proper understanding of management principles is necessary because of the following reasons (any three):

(a) They provide managers with useful insight into reality.

(b) They help in optimal utilization of resources and effective administration.

(c) They help in meeting environment requirements.

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

QUES 1:  Explain the Principle of centralization and decentralization.

Ans.      Centralization means concentration of authority in the hands of few people at the top, whereas decentralization means appropriate distribution of power at every level of management. According to Fayol, company must be properly balanced i.e. it should neither be completely centralized nor decentralized. There must be some element of both of centralization and decentralization of the organization. The Panchayat system in our country is a very good example of decentralization at the national level.

QUES 2:  Define scientific management and name any three of its principles.

Ans.    According to Taylor, “Scientific management means knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”.

Three principles of scientific management are as follows:

(i)        Science, not rule of thumb

(ii)       Harmony, not discord.

(iii)      Cooperation, not individualism.

QUES 3:  Ms. Gita and Mr. Govind are Data Entry Operators in a campany having same educational qualifications.  Gita is getting Rs. 5,000 per month and Govind Rs. 6,000 per month as salary for the same working hours.

Which principle of management is violated in the case? Name and explain the principle.

Ans.    The principle of 'equity' is violated in this case. According to this principle, employees should be      given kind, fair and just treatment and there should not be any discrimination based on caste, creed, color, sex etc. Apparently, Gita is getting less in view of being a female which is against this principle.

QUES 4:  Explain the objectives of standardization.

Ans.    Standardization is done for the following reasons:

(i)        To ensure that a given product range has fixed types, sizes, characteristics etc.

(ii)       To bring about interchangeability, for manufactured parts, output, developments etc. among various branches.

(iii)      To set uniform standards of performance for men, machines etc.

QUES 5:  An organization follows the principles of management. What are the adverse effects of each of the following principles of management on the organization?

(i)    Unity of Command

(ii)   Order

(iii)  Stability of tenure of personnel

 Ans.    Adverse effects of said principles are:

(i) Unity of Command: If this principle is followed, work gets delayed which results in wastage of time and cost.

(ii) Order: It creates boredom among the employees due to rigidity provided by this principle.

(iii) Stability of personnel:  If employees are not rotated on different jobs frequently, they can specialize only in a small part of the whole process of production and thus can never become versatile.

LONG ANSWER TYPE QUESTIONS(5 OR 6 MARKS)

QUES 1:  Explain the nature of management principles.

Ans.    Nature of management principles can be described as follows:

(i) Universal Applicability: The principles of management are applicable to all types of organizations irrespective of their size and nature.

(ii) General Guidelines: They are only guidelines for action and don't provide direct or readymade solution for a managerial problem.

(iii) Formed by practice and experimentation: The principles of management have been developed through experimentation as well as experience and wisdom of managers.

(iv) Flexible: They are flexible i.e. they can be modified by the managers according to a given situation.

(v) Mainly behavioural: They are mainly behavioural in nature since they are devised to influence human behaviour.

(vi) Cause and effect relationship: The principles of management establish relationship between cause and effect. They guide us as to what would be the effect if a particular principle were to be applied in a given situation.

(vii) Contingent: The use of principles of management is contingent or dependent upon the prevailing conditions.

QUES 2:  Explain the importance of management principles.       

 Ans.    The importance of management principles can be understood by considering the following points: 

(i) Provide useful insight to manage: Principles of management help in increasing managerial efficiency by adding to their knowledge and ability to understand the various situations more objectively.

 (ii) Optimum Utilization of Resources and effective administration:  Management principles help in organizing various activities in such a way that results in elimination of unwanted activities and consequent wastage. Management principles help in managing organizations effectively.

For example, Unity of Command helps to avoid confusion and conflicts Unity of Direction ensures unity of actions to facilitate coordination

(iii) Scientific decisions: They help the mangers in taking the decisions based on the objective assessment of a situation. Thus decisions taken are logical and free from any bias and prejudice.

(iv) Meeting changing environment requirements: Though the principles are only guidelines for action yet they can be modified according to the need of changing situations. Thus principles of management help in meeting changing requirements of the environment. 

(v)  Fulfilling social responsibilities: Principles of management have been devised in such a way that they help in fulfilling social responsibilities.

QUES 3:  Sachin is working in a Shoe manufacturing Co. The management asked him to work overtime so as to produce more in order to meet increase in demand in the market. But he was not paid adequate wages for extra time and so he never contributed to his maximum. 

a)     Which principle of Fayol is violated in the above case? 

b)    Give two positive effects of following the above principle. 

c)     Which values can be emphasized by following the above principle? 

d)    Which values are ignored in the above situation?

Ans:    a) Remuneration of employees 

b)     i) ensure healthy atmosphere & good relations between the employees and the management. 

        ii) Smooth functioning of the organization.

c)  i) Motivation ii) Respect towards  employees.

d) (i)Respect for employees

(ii)  Motivation

(iii) Responsibility and sincerity of the employee

(iv) Initiative

(v)  Co operation

QUES 4:  Taylor's principles of scientific management and Fayol's principles of management are mutually complementary." Do you agree with this view? Give any four reasons in support of your answer.

Ans.    Yes, Taylor's principles of scientific management and Fayol's principles of management are mutually complementary because of the following reasons:

QUES 5:  Explain the technique 'Functional Foremanship'.

Ans.    Functional foremanship is the extension of the principle of specialization. This technique emphasizes on the separation of planning from execution. To facilitate it, Taylor suggested setting up of "Planning incharge" and "production incharge".

 FUNCTIONAL FOREMANSHIP

 Planning Incharge: 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 Incharge: It consists of following four specialists who are concerned with the execution of plans.

 (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 equipments properly so that workers can proceed with their work.

 (iii) Repair Boss: He ensures that all machines, tools, equipments are in perfect working order.

 (iv)  Inspector: He ensures that the work is done as per the standards of quality set by planning department.

QUES 6:  . 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 maximize 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 organization. It helped in increasing the output, improving the quality and reducing the cost and wastage.

Identify and explain the principles and the technique of scientific management followed by the Production Manager in the above case. 

Ans. Principles of management followed in the above case:

(a) Science not rule of thumb

• It states that there was only one best method to maximize efficiency.

• This method can be developed through scientific study and analysis of each element of a job and should substitute ‘Rule of Thumb’.

• This standard method then should be followed throughout the organisation.

(b) Development of each and every person to his greatest efficiency and prosperity

• This principle is concerned with efficiency of employees which could be built in right from the process of employee selection.

• The work assigned to employees should suit their capabilities.

• They should be given the required training to increase their efficiency.

• Efficient employees would produce more and earn more. This will ensure their greatest efficiency and prosperity for both the company and the workers.

Technique of scientific management followed in the above case:

(a) Method Study

•  It is a study to find out one best way of doing the job.

•  It helps to minimize the cost of production, improve the quality and maximize satisfaction of the customer.

•  It includes all activities from procurement of raw materials till the final product is delivered to the customer.