CBSE Class 12 Business Studies Principles of Management VBQs

Question. A manager should have the right to punish a subordinate for willfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting her/his case. Identify the principle of management highlighted above.
(a) Authority and Responsibility
(b) Discipline
(c) Equity
(d) Stability of Personnel

Answer : C

Question. Mr. Saxana, Finance manager of ABC ltd. Applied for leave to attend a family function in Jaipur. The director of the company requested him to cancel his leave as there is an important meeting schedule on that date. Mr. Saxana immediately agreed and cancelled his trip as he thought attending meeting is more import for company’s benefit. Which principle of Fayol is applied by Mr. Saxana?
(a) Principle of subordination of individual interest to general interest.
(b) Principle of equity
(c) Principle of order
(d) Principle of Discipline. 

Answer : A

Question. Match the principle of management in Column I with their respective explanation in Column II:

(a) (i), (ii), (iii), (iv)
(b) (ii), (i), (iii), (iv)
(c) (iii), (ii), (i), (iv)
(d) (iii), (i), (ii), (iv)

Answer : C

Question. Which of the following technique of scientific management violate‘s the principle of Equity?
(a) Differential Piece Wage System
(b) Standardisation and Simplification of work ‘
(c) Functional foremanship
(d) Method Study 

Answer : A

Question. Manager of ABC ltd. does not allocate work as per the capability of workers. Which principle is violated by them.
(a) Principle of equity
(c) Principle of order
(b) Principle of discipline
(d) Principle of Division of work 

Answer : D

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

Answer : C

Question. Match the technique of scientific management in Column I with their respective explanation in Column II:

(a) (iii), (ii), (i), (iv)
(b) (ii), (i), (iii), (iv)
(c) (iii), (iv), (i), (ii)
(d) (i), (iii), (ii), (iv)

Answer : D

Question. Which one of the following statements best describes ‘Mental Revolution’ as described by F.W. Taylor?
(a) It implies change of attitude.
(b) The management and workers should not play the game of one gunmanship.
(c) Both management and workers require each other.
(d) Workers should be paid more wages.. 

Answer : C

Question. Principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gain with the workers while the other suggested that employee’s compensation should depend upon the earning capacity of the company and should give them a reasonable standard of living Which principle of Fayol is applied here?
(a) Remuneration
(c) Equity
(b) Discipline
(d) Esprit the corps 

Answer : A

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

Answer : B

Question. The principles of management are not rigid prescriptions, which have to be followed absolutely.” Which of the following best describes the given statement?
(a) Management principles aim at influencing behaviour of human beings.
(b) Management principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.
(c) Management principles are flexible and can be modified by the manager when the situation so demands.
(d) None of the above. 

Answer : C

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

Answer : D

Question. Rahul, a manager decided that there will be separate departments for finance, marketing, production and sales in his company. By doing so he is following a principle of management. Which of the following principles of management is followed by Rahul in the given case?
(a) Division of work
(b) Equity
(c) Order
(d) Unity of direction

Answer : A

Question. Taylor in one of his principles of scientific management suggested ‘investigation of traditional methods through work study, unifying the best practices and developing a standard method, which would be followed throughout the organisation. Which principle of scientific management is discussed in the given statement. 
(a) Science not rule of thumb
(b) Harmony not discard
(c) Cooperation not individualism
(d) Division of work

Answer : A

Question. ‘Principles of management are at the core of management theory’. Which importance of principles of management is highlighted in the above statement.
(a) Optimum utilisation of resources and effective administration
(b) Scientific divisions
(c) Meeting changing environment requirements
(d) Management training, education and research

Answer : D

Question. ................. involves a change in the attitude of workers and management towards and another from competition to cooperation.
(a) Cooperation not individualism
(b) Mental revolution
(c) Unity of direction
(d) Unity of command

Answer : B

Question. Arun is a managing director in a company. He believes that employees turnover should be minimised to maintain organisational efficiency. He is of the view that personnel should be selected and appointed after due and rigorous procedure and once selected they should be kept at their post for a minimum fixed tenure.
From the following options, choose the management principle followed by Arun in the given case.
(a) Remuneration of employees
(b) Centralisation and decentralisation 
(c) Stability of personnel
(d) Discipline

Answer : C

Question. Which principle of Henri Fayol states that ‘there should be one and only one boss for every individual employee.
(a) Discipline
(b) Unity of command
(c) Unity of direction
(d) Division of work

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. Manoj is a managing director in a company. He believes that employee turnover should be minimised to maintain organisational efficiency. He is of the view that personnel should be selected and appointed after due and rigorous procedure and once selected they should be kept at their post for a minimum fixed tenure. From the following options, choose the management principle followed by Manoj in the given case.
(a) Remuneration of employees
(b) Stability of personnel
(c) Centralisation and discentralisation
(d) Discipline

Answer : B

Question. XYZ Ltd. is producing electricity from domestic garbage. There is almost equal division of work and responsibility between workers and management. The management even takes workers into confidence. All the workers are satisfied as the behaviour of management is very good.
State the principle of management described in the above para.
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Authority and responsibility

Answer : B

Question. Match the Nature of principles of management in Column I with their respective Explanation in Column II.

(a) A-(i), B-(iii), C-(ii)
(b) A-(i), B-(ii), C-(iii)
(c) A-(ii), B-(i), C-(iii)
(d) A-(iii), B-(i), C-(ii)

Answer : C

Question. “Any one can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfil in the statement being discussed above.
(a) Ethical code of Conduct
(b) Professional Association
(c) Restricted Entry
(d) Service Motive

Answer : C

Question. ‘The principles of management are not rigid prescriptions, which have to be followed absolutely.’ Which nature of principles of management is highlighted in the given statement? 
(a) Universal applicability
(b) General guidelines
(c) Flexible
(d) Contingent

Answer : A

Question. ‘The application of Principles of management is dependent upon the prevailing situation at a particular point of time’. Identify the nature of management principles mentioned in the given statement. 
(a) Universal
(b) Flexible
(c) Contingent
(d) Mainly behavioural

Answer : C

Question. Aqualife Ltd. has decided to become the market leader in selling water bottles. The company decides to take care of all the departments. The top management decides to set standards for all the business activities right from the purchase of raw material to manufacturing and packaging of the water bottles.
Which technique of scientific management is used here?
(a) Simplification
(b) Standardisation
(c) Differential piece wage system
(d) Method study

Answer : B

Question. ‘The application of principles of management is dependent upon the prevailing situation at a particular point of time’. Which nature of management principle is mentioned in the given statement.
(a) Behavioural  
(b) Universal
(c) Flexible
(d) Contingent 

Answer : D

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

Answer : B

Reasoning Based Questions :

Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case:

Question. Assertion (A) : Taylor’s technique of functional foremanship is based on fayol’s principle of division of work.
Reason (R): Taylor advocated separation of planning and execution functions of foreman through a planning and production in-charge under him. Each of the in-charge will have four personnel working under him according to their specialization
(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, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : A

Question. Assertion (A): Management principal can not be applied differently under different conditions
Reason (R): Some changes can be made in application of principles according to the requirement of the company.
(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, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : A

Question. Assertion (A) : Technique of “Simplification of Work” eliminate superfluous verities. Sizes and dimensions of products.
Reason (R): Technique of “Simplification of work” reduced inventories, fuller utilisation of equipment and increased turnover to reduce cost.
(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, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : A

Question. Assertion (A) : Management principles provides managers with useful insight into reality.
Reason (R): Management principles improve knowledge, ability and understanding of managers under various managerial situations.
(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, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : A

Answer the Question Based on below Paragraph :

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

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

Answer : C

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

Answer : D

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

Answer : A

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

Answer : D

Answer the questions on the basis of the following paragraph :

Sonam opens a jewellery showroom in Jaipur after completing a course in jewellery 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 specialised job. 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 discounts rests with Sonam as the final authority. In the earlier days of starting of the business, five of her employees were asked the 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 settling the conflicts among her employees, she tends to be more biased towards her
female employees.

Question. Identify the principle of management in the following lines. “Therefore after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.
(a) Discipline
(b) Initiative
(c) Scalar chain
(d) Remuneration 

Answer : A

Question. Which principle is violated in the following lines. “However when it comes to setting the conflicts among her employees She tends to be more biased towards her female employees.”
(a) Discipline
(b) Equity
(c) Division of work
(d) Justice 

Answer : B

Question. Identify the principle of management in “She divided the work into small tasks and each employee is trained to perform his/her specialised job”
(a) Unity of command
(c) Division of work
(c) Unity of direction
(d) Discipline 

Answer : C

Question. Identify the principle “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”
(a) Division of work
(b) Discipline
(c) Initiative
(d) Centralisation and decentralization 

Answer : D

Case Study Based MCQ Questions Principles of Management Class 12 :

The application of principles of management is dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per the
requirements. These principles are logical rather than blind faith. They are based on objective assessment of the situation. Management decision taken on the basis of principles are free from bias and prejudice. Managers often try to apply these principles in various day to day situations. violation of these principles can result in negative consequences in the organization. For example, Sushma and Suresh are working in a Multinational company at the same level. Both are working hard and are happy with their employer. Suresh had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees knew about it. At the time of performance appraisal, the performance of Sushma was judged better than Suresh. Even then their boss Nikhil decided to promote Suresh stating that being a female Sushma will not be able to handle the complications of a higher post.
This resulted in a great deal of dissatisfaction for Sushma. Nikhil gave priority to his own interest over the interest of the organization. Since he personally liked Suresh more than Sushma, hence he promoted Suresh instead of Sushma, ignoring the overall interest of the organization.
On the basis of the above paragraph answer the following questions:

Question. “The application of principles of management is dependent upon the prevailing situation at particular point of time”.
What is the nature of principles of management that is depicted by the above statement? 
(a) Universal applicability
(b) Flexible
(c) Contingent
(d) Mainly behavioural

Answer : D

Question. ‘Decisions based on management principles are free from bias and prejudice’.
This statement shows which importance of principles of management. 
(a) Scientific decisions
(b) Fulfilling social responsibility
(c) Providing managers with useful insights into reality
(d) Meeting changing environment requirements

Answer : A

Question. ‘Nikhil gave priority to his own interest over the interest of the organisation’.
Which one of the following principles have been violated in the given case.
(a) Order
(b) Equity
(c) Discipline
(d) Initiative

Answer : B

Question. Violation of which principle of management prompted Nikhil to further violate the managerial principle identified in part (iii)
(a) Division of work.
(b) Unity of direction
(c) Subordination of individual interest to general interest
(d) Centralization and decentralization

Answer : C

After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture , 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, when the business was doing well, she honoured her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solving the conflicts among employees.
On the basis of the above paragraph, answer the following questions.

Question. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?
(a) Centralization and Decentralization
(b) Division of work
(c) Discipline
(d) Order

Answer : B

Question. “The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority”.
Identify the principle of Management being followed here:
(a) Centralization and Decentralisation
(b) Authority and Responsibility
(c) Unity of Command
(d) Unity of Direction

Answer : A

Question. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.”
Which principle of management is being highlighted here?
(a) Discipline
(b) Order
(c) Remuneration to Employees
(d) Unity of Direction

Answer : A

Question. Aditi tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. Which principle is being violated here?
(a) Discipline
(b) Order
(c) Equity
(d) None of these

Answer : C

Sakaar Foundation is an NGO(Non-Government organization) working to improve thelives of children with medical needs, the homeless and victims of natural disasters. Apart from donations in Cash, they collect dry ration, old clothes, shoes, toys, books, medicines, etc. from donors. At Sakaar Foundation’s office in Lucknow the material collected is segregated, classified and put in shelves and boxes that are numbered systematically. There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is a part of a particular team, depending on their competency and training. Each volunteer becomes specialized in their respective field, leading to efficient utilization of human effort. The management of Sakaar Foundation does not close its ears to any constructive suggestion made by the volunteers. There is an equal division of work and responsibility between volunteers and management. All day long the management
works side by side with the volunteers helping, encouraging and smoothing the way for them.
On the basis of the above paragraph answer the following questions:

Question. _____________ is considered as the father of scientific management. 
(a) Peter Drucker
(b) F.W.Taylor
(c) Henri Fayol
(d) Abraham Maslow

Answer : B

Question. Identify the principle of scientific management adopted by Sakaar Foundation in the above case. 
(a) Science not rule of thumb
(b) Cooperation not individualism
(c) Harmony not discord
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer : B

Question. Which principle of management means “a specific place for everything and everyone” as adopted by Sakaar Foundation? .
(a) Discipline
(b) Order
(c) Initiative
(d) Scalar chain

Answer : B

Question. Identify the importance of principles of management that can be linked with the given case. 
(a) Fulfilling social responsibility
(b) Optimum utilization of resources and effective administration
(c) Meeting changing environment requirements
(d) Providing managers with useful insights into reality

Answer : A

Care Ltd. is a well known cement company in India. It is able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover has increased manifolds over the years. The rate of profitability of the business is also creditable. The employees of the company are happy and satisfied. The overall pay and compensation paid by the company is fair to both- employees and the organisation. There is complete cooperation between the workers and management. The spirit of competition has been replaced by the spirit of cooperation within the organisation. As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the rural areas. 
On the basis of the above paragraph, answer the following questions:

Question. ‘It is able to earn adequate revenue to cover costs’.
Which organisational objective is achieved by the company in the given statement.
(a) Growth
(b) Survival
(c) Profit
(d) Diversification

Answer : B

Question. Name the principle of Fayol followed by the company in the given case.
(a) Discipline
(b) Order
(c) Remuneration of employees
(d) Unity of direction

Answer : C

Question. Which principle of scientific management is followed by the company in the given case:
(a) Scientific not rule of thumb
(b) Harmony not discord
(c) Cooperation not individualism
(d) Development of each and every person to his or her greatest efficiency and prosperity.

Answer : C

Question. Which importance of management is discussed in the given case.
(a) Management increases efficiency
(b) Management helps in the development of society
(c) Management creates a dynamic organisation
(d) Management is an intangible force

Answer : B

Vishesh completed his MBA at a reputed business school in Lucknow. He was impressed by the principles and techniques of scientific management developed by F.W.Taylor. On
completing his MBA, he wanted to apply Scientific Management in his family’s business of fast food chain of restaurants named ‘Burger Mania’. His main goal was to reduce costs with
increased output. To begin with, he wanted to develop a standard method which would be followed throughout the organization. So, he investigated traditional methods through work study and unified the best practices. The standard method,i.e., the best way of doing the job was then developed taking into account all parameters right from the procurement of raw materials till the delivery of the final product to the customer. Vishesh also believed that each person should not only be scientifically selected but should also be given the required
training to increase efficiency. For this, he set up a special training unit called ‘Hamburger’ in Bengaluru where the workers were given the required training to learn the best method. At
the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements. The standard time and other parameters were determined on the basis of work study and Vishesh rewarded the workers for meeting the standard output. Now, ‘Burger Mania’ has standardized processes, raw material, time, machinery, trained staff and working conditions that ensure that the food they send out to their customers has the same high standards of excellence and level of quality in every chain or franchise. The application of Scientific Management to every aspect of restaurant operations led to ‘Burger Mania’s’ widespread success.
On the basis of the above paragraph, answer the following questions:

Question. Identify the technique of Scientific Management used by Vishesh to reward the workers for meeting the standard output. 
(a) Time study
(b) Motion study
(c) Differential piece system
(d) Functional foremanship

Answer : C

Question. ‘At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements.’
Identify the technique of Scientific Management mentioned in the given statement.
(a) Method study
(b) Motion Study
(c) Standardization and simplification of work
(d) Time study

Answer : B

Question. Identify the principle of Scientific Management that helped Vishesh in investigating the traditional methods through work study and unifying the best practices. 
(a) Science not rule of thumb
(b) Method study
(c) Harmony not discord
(d) Cooperation not individualism

Answer : A

Question. ‘Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency.’
Identify the principle of Scientific Management mentioned in the given statement. 
(a) Cooperation not individualism
(b) Stability of personnel
(c) Harmony not discord
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer : D

Ganesh Leathers is a shoe manufacturing company. The firm has decided to increase the productivity of its workers. For this the firm has chalked out a plan. It will be hiring
operational managers to work at the lower levels of management. It has decided to keep eight managers over a group of workers. Thus every worker has to report to all these eight managers. The managing director of the company Mr. Ganesh Tiwari is of the view that the principles of management are guidelines to action but do not provide readymade straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. According to him it is necessary to differentiate between efficient and inefficient workers. Hence, he introduced specific rate of wage payment for those who performed above standard and for those who performed below standard. The basic idea behind is to improve the productivity of all the workers.
On the basis of the above paragraph, answer the following questions:

Question. Which technique of scientific management is employed by Ganesh leathers by keeping eight managers.
(a) Time study
(b) Motion study
(c) Functional foremanship
(d) Standardisation of work

Answer : C

Question. Which principle of Henri Fayol is followed by the company in the above case.
(a) Unity of direction
(b) Unity of command
(c) Initiative
(d) Discipline

Answer : B

Question. Which nature of principles of management is mentioned in the given para.
(a) Universal applicability
(b) Flexibility
(c) General guidelines
(d) Contingent

Answer : C

Question. Which technique of scientific management is used by the firm to differentiate between efficient and inefficient workers.
(a) Time study
(b) Motion study
(c) Differential piece rate system
(d) method study

Answer : C

Amar is the Managing director in a garment manufacturing company. He is an experienced manager and firmly believes in application of principles of management in day to day
managerial situations. He believes that management principles are flexible to adapt to dynamic business environment. He believes in producing more and better work for the same
effort. He always hires specialists for various job positions. This results in efficient and effective output. Hence the organization has separate departments for finance, marketing, production and human resource. Being a management expert, Amar believes in the concept of having one and only one boss for every individual employee. He always aims at avoiding dual subordination within the organization. Under his direction and supervision, his company has achieved new heights within a short span of time. As the Managing director, he formulates policies that aims at minimizing employee turnover and maintaining organizational efficiency. Hence his organization selects personnel after due and rigorous procedure, and once a person is selected, he is kept at his post for a minimum fixed tenure. This helps in improving the overall efficiency of the organization.
On the basis of the above paragraph, answer the following questions:

Question. Identify which importance of principles of management is mentioned here?
(a) Providing managers with useful insights into reality
(b) Meeting changing environment requirements
(c) Fulfilling social responsibility
(d) Scientific decisions

Answer : B

Question. Identify the principle of management that suggests setting up of separate departments for finance, marketing, production etc. within an organization. 
(a) Discipline
(b) Centralization and Decentralisation
(c) Division of work
(d) Authority and responsibility

Answer : C

Question. ‘He always aims at avoiding dual subordinationwithin the organization’. Name the principle of management that aims at avoiding dual subordination. 
(a) Order
(b) Equity
(c) Unity of direction
(d) Unity of command

Answer : D

Question. “As a Managing Director, he formulates policies that aim at minimizing employee turnover and maintaining organizational efficiency”.
Which principle of management Amar is following? 
(a) Order
(b) discipline
(c) Equity
(d) Stability of personnel

Answer : D

The principles of management are intended for all types of organisations, business as well as non-business, small as well as large, public as well as private sector, manufacturing as well as service sectors. They are not rigid prescriptions, which have to be followed absolutely. They can be modified by the manager as per the prevailing situation. Adherence to these principles adds to managers’ knowledge, ability and understanding of managerial situations and circumstances. It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly. These principles of management hold great relevance and managers should try to follow them as far as possible. Often certain principles of management are violated and the entire organization suffers. For example, Raman is working as a production manager in CFL Ltd. which manufactures CFL bulbs. His subordinate
Arjun designed a plan for cost reduction but it was not welcomed by Raman. Another employee gave some suggestions for improvement in design but it was also not appreciated by Raman. This resulted in dissatisfaction among the employees which further resulted in poor performance of the employees.
On the basis of the above paragraph answer the following questions:

Question. Identify the nature of principle of management discussed in the given para. 
(a) General guidelines
(b) Universal applicability
(c) Formed by practice and experimentation
(d) Contingent

Answer : B

Question. Identify the nature of management principles when it is said that principles of management can be modified as per the prevailing situation.
(a) Flexible
(b) Contingent
(c) Behavioural
(d) Absolute

Answer : A

Question. ‘It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly’.
According to this statement, the principles of management are important because they help in ......................... .
(a) Meeting changing environment requirements
(b) Optimum utilization of resources and effective administration
(c) Providing managers with useful insights into reality
(d) Fulfilling social responsibility

Answer : C

Question. As Raman did not welcome the suggestions of other employees, which principle of management is violated by him?
(a) Discipline
(b) Order
(c) Unity of direction
(d) Initiative

Answer : D

Principles of Taylor and Fayol are mutually complimentary. One believed that management should share the gains with the workers, while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Taylor also developed certain techniques of scientific management which aimed at improving the performance of the employees. One of his techniques aimed at differentiating between efficient and inefficient workers. The purpose behind this technique is to reward efficient workers and motivate inefficient workers to perform better.
On the basis of the above paragraph answer the following questions:

Question. Which principle of Henri Fayol is being referred to in the above paragraph?
(a) Discipline
(b) Order
(c) Equality
(d) Remuneration of employees

Answer : D

Question. Which principle of scientific management advocates complete agreement between the managers and workers? 
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Development of each and every person to his/her greatest efficiency and prosperity.

Answer : A

Question. Which principle of scientific management is the extension of the principle (identified in part (ii))?
(a) Harmony not discord
(b) Cooperation not individualism
(c) Science not rule of thumb
(d) Development of each and every person to his/her greatest efficiency and prosperity

Answer : B

Question. ‘One of his techniques aimed at differentiating between efficient and inefficient workers’.
Name the technique of scientific management reflected in the given statement.
(a) Functional foremanship
(b) Method study
(c) Differential piece wage system
(d) Standardisation and simplification of work

Answer : C

Ramesh is day and night involved in the organizing of his business. He has given job to every employee based upon his capability and experience. As there has been proper division of work and systematic allocation of tasks the productivity is increasing. The size of the company has increased in the recent past. The related activities which are similar in nature are grouped together. Everything was going well in the organisation until recently. The company has recently seen a deficit of exchange of information across functionally different departments. 
On the basis of the given paragraph, answer the following questions:

Question. Which importance of organizing is highlighted in be above case:
(a) Optimum utilisation of resources
(b) Effective administration
(c) Benefits of specialisation
(d) Expansion and growth

Answer : C

Question. Now the related activities which are similar in nature are grouped together. Which step of organising is highlighted in the above case:
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing authority relationship

Answer : B

Question. The company has recently seen a deficit of exchange of information across functionally different departments. Which one disadvantage of functional structure is highlighted above:
(a) Function allocative
(b) Conflict of interests
(c) Inflexibility
(d) Problems in coordination

Answer : D

Question. Identify the type of organisational structure which facilitates occupational specialisation.
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure

Answer : A