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Study Material for Class 12 Business Studies Chapter 2 Principles of Management
Class 12 Business Studies students should refer to the following Pdf for Chapter 2 Principles of Management in Class 12. These notes and test paper with questions and answers for Class 12 Business Studies will be very useful for exams and help you to score good marks
Class 12 Business Studies Chapter 2 Principles of Management
Question. Henry Fayol, F.W. Taylor belongs to which of the following school of management?
(a) Neoclassical school
(b) Modern school
(c) Classical school
(d) Early perspective
Answer. C
Question. Gang plank is related to:
(a) communication
(b) motivation
(c) supervision of workers
(d) incentives to workers
Answer. A
Question. In what situation has Fayol permitted the violation of the principle of scalar chain?
(a) When the employee is extraordinarilly capable
(b) At the time of sudden happening
(c) in all conditions and circumstances
(d) In no condition or situation
Answer. B
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. 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 principles 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. Which of the following statement justifies understanding of principles of management to take scientific decisions:
(a) Adherence to these principles add to knowledge and understanding of managerial situations
(b) Principles emphasise logic rather than blind faith
(c) Principles of management are the core of the management theory
(d) Principles are guidelines that can be modified as per the changing environment
Answer. B
Question. Which of the following technique of scientific management is a violation of unity of command.
(a) Differential piece wage system
(b) Fatigue study
(c) Functional foremanship
(d) Simplification of work
Answer. C
Question. Which of the following technique of scientific management has the objective to determine the number of workers to be employed, frame suitable incentive schemes and determine labour cost.
(a) Differential piece wage system
(b) Time study
(c) Functional foremanship
(d) Simplification of work
Answer. B
Question. According to Taylor there can be many hindrances in a good performance which may lead to fatigue identify the most suitable cause of Fatique from the following options.
(a) Long working hours
(b) Doing unsuitable work
(c) Uncordial relation with the boss
(d) All the above
Answer. D
Question. Fayol principle of division of work can be applied to the following kind of work.
(a) Technical
(b) Managerial
(c) Both
(d) None of these
Answer. C
Question. Authority is undermined discipline is in jeopardy order distributed and stability threafened. The above statement is a violation of one of the principles of management.
(a) Unity of direction
(b) Discipline
(c) Unity of command
(d) Stability of personel
Answer. C
Question. How are principles of management are formed?
(a) By rule of thumb
(b) By observation and experimentation
(c) By experiences of customers
(d) By experiments in science laboratory
Answer. B
Question. Which of the following statements is true with reference to principles of management?
(a) The principles of management have evolved.
(b) The principles of management are yet to be evolved.
(c) The principles of management are in the continuous process of evolution.
(d) None of the above
Answer. C
Question. By profession, FW Taylor was a:
(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer
Answer. A
Question. Which of the following statements is/are true with reference to principles of management?
(a) The principles are guidelines to action.
(b) The principles denote a cause and effect relationship.
(c) Principles help the manager to take decisions while performing various management functions.
(d) All of the above
Answer. D
Question. Principles of management can be modified by the manager when the situation demands. This statement implies that the principles of management are:
(a) Rigid
(b) Contingent
(c) Flexible
(d) Universally applicable
Answer. C
Question. The principles of management enhance the understanding of relationship between human and material resources for the achievement of organisational goals. Identify the feature of the principles of management being described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural
Answer. D
Question. Principles of management emphasize on logical and rational decision making rather than on the basis of bias and prejudice. The given statement highlights that the knowledge of principles of management leads to:
(a) Providing managers with useful insight into reality
(b) Scientific decisions
(c) Meeting changing environmental requirements
(d) All of the above
Answer. B
Question. ‘Rule of thumb’ refers to:
(a) Use of personal judgement in handling management issues
(b) Adopting a hit-and-trial approach to resolve management problems
(c) Both of the above
(d) None of the above
Answer. C
Question. According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/ her greatest efficiency and prosperity
(d) None of the above
Answer. B
Question. According to Taylor, “each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the above
Answer. C
Question. This technique of scientific management helps in development of the concept of assembly line which is widely used in automobile companies these days as well. Identify the technique.
(a) Motion study
(b) Standardisation and simplification of work
(c) Method study
(d) Time study
Answer. C
Question. Which of the following is an objective of time study?
(a) To determine the number of workers to be employed
(b) To formulate suitable incentive schemes
(c) To calculate the labour costs
(d) All of the above
Answer. D
Question. The technique of differential piece rate system was developed by Taylor in order to:
(a) Discriminate between efficient and inefficient workers
(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the above
Answer. D
Question. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management.
(a) Discipline
(b) Equity
(c) Division of work
(d) Order
Answer. C
Question. According to this principle of general management,“an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction
Answer. B
Question. Name the principle of management suggested by Henri Fayol, which advocates that, “there should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility
(b) Esprit De Corps
(c) Order
(d) None of the above
Answer. D
Question. According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity
Answer. B
Question. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps
Answer. A
Question. Tisco Ltd. manufactures plastic folders. Aman works at operational level. Aman get orders from production manager as well as finance manager. He gets confused most of the times, which manager he should follow.State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of command
(c) Initiative
(d) Scaler chain
Answer. B
Question. Which of the following does not follow the scalar chain?
(a) Functional structure
(b) Divisional Structure
(c) Formal organisation
(d) Informal Organisation
Answer. D
Question. Sohan keeps machines, materials, tools, etc. ready for operations by concerned workers. Whose work is described by this sentence under functional foremanship?
(a) Repairs boss
(b) Speed boss
(c) Inspectors
(d) Gang boss
Answer. D
Question. Which technique of Taylor separates planning and executive functions?
(a) Functional foremanship
(b) Fatigue work
(c) Standardisation
(d) Simplification
Answer. D
Question. Vinay and Pooja started a dry-cleaning shop.Customers were not happy with the services. So, they decided to find one best method to perform the job.
Identify the technique of management used here.
(a) Motion study
(b) Fatigue study
(c) Method study
(d) Work study
Answer. C
Question. Management principles increases managerial efficiency as the manager leaves routine meeting to his/ her subordinates and deal with exceptional situations which require his/her expertise by following the principle of delegation.
What does the above case signify about management?
(a) Meeting changing environment requirements.
(b) Providing managers with useful insights into reality.
(c) Fulfilling social responsibility.
(d) Management training, education and research.
Answer. B
Question. “A manager should replace ‘I’ with ‘We’ in all their conversations with the workers to fasten team spirit.”Identify the principle of management emphasised here.
(a) Esprit de Corps
(b) Scalar Principle
(c) Unity of Command
(d) Unity of Direction
Answer. A
Question. In an organisation Ram and Prema are working at the same posts but being a male employee Ram has more rights than Prema. State any one principle of management which is violated here?
(a) Principle of Equity
(b) Rule of Thumb
(c) Scalar Principle
(d) Unity of Command
Answer. A
Question. ‘Rohit keeps machines, materials, tools, etc. ready for operations for concerned workers’. Whose work is described by this sentence under functional foremanship?
(a) Speed boss
(b) Repair boss
(c) Route clerk
(d) Gang boss
Answer. D
Question. What is the latest development in scientific management?
(a) Motion study
(b) Time study
(c) Fatigue study
(d) Lean manufacturing
Answer. D
Question. “Principles help managers to take decisions while performing functions of management.” In your opinion above statement is:
(a) True,principles are guidelines to take actions
(b) False, functions of management are not related with principles of management
(c) Partly true, principles denotes cause and effect relationship which may help functions
(d) False, functions of management are just actions
Answer. A
Question. Which technique of Taylor separates planning and executive functions?
(a) Functional foremanship
(b) Fatigue work
(c) Standardisation
(d) Simplification
Answer. A
Question. In which year Taylor became an Engineer from a worker?
(a) 1878
(b) 1884
(c) 1901
(d) 1903
Answer. B
Question. The Principles of division of work is applicable to government office where there is a diary/dispatch clerk whose job is to receive and send mail, a data entry operator who’s task is to input data on the computer.
Division of work is also applicable to limited companies where there are separate departments like production, finance research and development etc.
Which character of the principles highlighted here.
(a) general guidelines
(b) Universal applicability
(c) Flexible
(d) Contingent
Answer. B
Question. ABC Pvt. Ltd. is an organisation which is governed by people who are egoistic and consider themselves as the most intelligent. All the suggestions made by the workers are not even attended which has resulted in many strikes during last couple of months. The result is lack of productivity. The principle of management violated here is:
(a) Division of labour
(b) Equity
(c) Unity of command
(d) Cooperation not individualism
Answer. D
Question. Soni and Moni having same educational qualifications are working as managers in Beeta Ltd. Soni belongs to a rural area where employment opportunities are very less whereas Moni belongs to an urban area.Ignoring other differences between the two, management of Beeta Ltd. appointed both of them as assistant managers offering them same salary package. The principle is followed by Beeta Ltd in the above case is:
(a) Initiative
(b) Equity
(c) Unity of command
(d) Cooperation not individualism
Answer. B
Question. How many principles of management has been given by Henry Fayol?
(a) 5
(b) 14
(c) 16
(d) 20
Answer. B
Question. Asad is a middle level manager. He keeps all his subordinates under a lot of discipline. His employees however complain of wastage of time and efforts as they feel that nothing is being assigned in a proper way and a proper place, also no proper schedule is made for working. Which principle of management is violated here is:
(a) Discipline
(b) Unity of command
(c) Unity of direction
(d) Order
Answer. D
Question. EMPOWER Ltd. is a company which takes care of the fact that the confidence of the employees should always be at its peak. For this reason, they give to their employees for employment for a minimum fixed tenure of time. Which principle of management is followed here?
(a) Division of labor
(b) Equity
(c) Unity of command
(d) Stability of personnel
Answer. D
Question. NASA Pvt. Ltd. is an organisation which is governed by people who are egoistic and consider themselves as the most intelligent. All the suggestions made by the workers are not even attended which has resulted in many strikes during last couple of months. The result is lack of productivity. Which principle of management is violated here?
(a) Division of labour
(b) Equity
(c) Unity of command
(d) Cooperation not individualism
Answer. D
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
Fayol points out the danger and cost of unnecessary labour turnover in one of his principles of management. Name that principle.
Ans. Stability of tenure
Name the device which permits direct communication between employees working at same level.
Ans. Gang plank.
Specify the consequence of violating principle of remuneration.
Ans. Employees will get demotivated.
Which principle of management insists "workers should be encouraged to develop and carry out their plans for development"? Explain that principle.
Ans. Principle of initiative. (with explanation)
The management of a company promises the workers to pay extra wages if they work overtime, but later on management refuses to pay extra wages. Which principle is violated in this case?
Ans. Principle of discipline.
“Manager should replace "I" with "we" in all his conversation to encourage team spirit.' Identify the principle of management emphasised here.
Ans. Principle of 'Esprit de corps'.
Hina and Hitesh are typists in a company having the same educational qualifications. Hina is getting 23,000 per month and Hitesh 24,000 per month as salary for the same working hours. Which principle of management is violated in this case? Name and explain this principle.
Ans. In this case the "Principle of Equity" is violated. As both are having same qualifications working at same authority level but getting different salaries. ( with explanation)
The production manager instructs a salesman to go slow in selling the products whereas the marketing manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case?
Ans. In this case there is the violation of principle of "Unity of Command."
Purchase manager gave order to supply raw material @ 1000 per quintal to his relative whereas same quality raw material is available @ 900 per quintal by another This is violation of which principle of management? Explain that principle.
Ans. It is violation of Principle of "subordination of individual interest to group interest." (with explanation)
Which principle of management suggests that employees should not leave the organisation frequently? Give two adverse effects of this principle is violated.
Ans. The Principle of "Stability of Tenure." The two adverse effects of violation of this principle are:
- wastage of resources
- demotivation and frustration of employees.
In one of the principles of scientific management, Taylor emphasises that there should be equal division of work and responsibility between workers and management and management should work almost side by side with workers helping them. Identify the principle.
Ans. "Cooperation not individualism" as management fail to fulfill their commitment.
If an organisation does not provide the right place for physical and human resources in an organisation then which principle is violated? What are the consequences of it?
Ans. Principle of order.
A manager expects his subordinates to adopt to the new environment and working conditions without giving them time to settle down. Which principles of management are being overlooked and why?
Ans. Principle of stability of tenure. (with explanation)
A manager expects his subordinates to work only for the happiness and pleasure of being in the organisation. Which principle is being overlooked in this?
Ans. Principle of remuneration.
A manager, does not distribute the work among his subordinates either according to the capability or Which principle of management is overlooked and why?
Ans. Principle of division of work. (with explanation)
Give any one point of difference between management principles and scientific principles.
Ans. The management principles are flexible but scientific principles are rigid.
Give any two features of management principles.
Ans. (i) Management principles are solved by practice and experiments.
(ii) Management principles are general guidelines.
Are the principles of management static?
Ans. No, they are not static. These can be changed according to the nature of organisation.
List any two principles of 'scientific management' formulated by Taylor for managing any organisation scientifically?
Ans. (i) Science, not rule of thumb, (ii) Harmony, not discord
How are management principles derived?
Ans. Management principles are derived by:
(i) Deep observation, (ii) Repeated experiments.
Why are that management principles universal?
Ans. Management principles are said to be universal because these are applicable in all types of organisations, at all levels and at all times
Which principle of management insists in orderly arrangement of men and material?
Ans. Principle of order.
An organisation is following the principle of scalar chain and principle of equity. What are the positive effects of these principles?
Ans. Positive effects of scalar chain:
- Smooth flow of communication
- No communication gap
Positive effects of equity: - Satisfaction of employees
- Boosts up the morale of employees.
Name the foreman who arrange all the resources input and setup to start the work smoothly.
Ans. Gang boss.
In a company there are four departments for finance, marketing production and human resource development. Identify the principle of management used in this company.
Ans. Division of work.
Some More of Viva Questions :
- What is the main objective of 'Fatigue study'?
- What is the main objective of 'Time study'?
- What is the main objective of simplification in scientific management?
- State how the management principles are flexible.
- 'The principles of management are different from those of pure sciences'. State any one
- What is the main objective of 'Method study'?
- What is the main objective of 'Motion study'?
- How have the management principles been derived?
- What is meant by 'Principles of Management'?
- State any two points which highlight the nature of principles of management.
CBSE Class 12 Business Studies Nature and Significance of Management Important Questions |
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CBSE Class 12 Business Studies Organising Important Questions |
CBSE Class 12 Business Studies Directing Important Questions |
CBSE Class 12 Business Studies Controlling Important Questions |
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CBSE Class 12 Business Studies Consumer Proctection Important Questions |
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Get better marks in Class 12 Business Studies Examination |
CBSE Class 12 Business Studies Chapter 2 Principles of Management Study Material
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