Principles of Management

CBSE Class 12 Business Studies
NCERT Solutions
Chapter 02
Principles of Management

1. Principles of management are NOT

(a) Universal

(b) Flexible

(d) Behavioural

Ans: Principles of management are not absolute. They are just the guidelines for the decision making in the course of management. That is, principles of management are not applied as it is in the real business situations rather they need to be modified by the manager as per the situation and the requirement.

2. How are principles of management formed?

(a) In a laboratory

(b) By experiences of managers

(d) By propagation of social scientists

Ans: Principles of management were developed over years by experiences and observations of the managers. Every manager faces varying situations in real business organisations. Based on these experiences, they draw general conclusions and inferences that guide them in their action and decision making in similar situations. That is, the experiences of the managers form the basis of the principles of management.

3. The principles of management are significant because of

(a) Increase in efficiency

(b) Initiative

(d) Adaption to changing technology

Ans: Optimum utilisation of resources entails employing the limited resources (such as capital and labour) to their best possible usage so that maximum benefit can be derived with minimum possible cost. Principles of management help in predicting the cause and effect relationship of the decisions of the managers. Thus, the wastage of resources that may be associated with the hit and trail method can be avoided. Thus, principles of management are significant because of optimum utilisation of resources. Increase in efficiency, initiative and adaptation to changing technology arrives at later stages, ones the resources are fully utilised.

4. Henry Fayol was a

(a) Social Scientist

(b) Mining Engineer

(d) Production engineer

Ans: Henry Fayol (1841-1925) was a French mining engineer who started his work in the mining industry at the age of nineteen. Based on his own experience, he developed the theory of business administration. He gave the concept of 'Administrative Principles'.

5. 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

(d) It leads to specialisation

Ans: According to the principle of 'Division of Work', the work should be divided into small jobs. This is because of the fact that any complex task can be performed efficiently if it is divided into smaller units and performed by specialists.

6. 'She/he keeps machines, materials, tools, etc., ready for operations by concerned workers'. Whose work is described by this sentence under functional foremanship

(a) Instruction Card Clerk

(b) Repair Boss

(d) Route Clerk

Ans: The work of Gang Boss is being described in the given sentence. Gang boss is assigned the task of keeping the machines and tools ready for operations. That is, he has to take care of the materials which are to be used by the working people. On the other hand, repair boss ensures that these machines are in proper working condition. Route clerk is there to watch over the route of production and instruction card clerk assigns the duties of the workers.

7. Which of the following is NOT a Principle of management given by Taylor?

(a) Science, not rule of Thumb

(b) Functional Foremanship

(d) Harmony not discord

Ans: Among the options given above, Functional Foremanship is not a principle of management rather it is a technique of scientific management as given by Taylor. It comprises of the methods or steps to be taken to achieve a desired goal. On the other hand, the other three are principles of management that acts as guidelines for decision making in the actual practice of the techniques.

8. 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

(d) Method Study

Ans: The technique that is being described in the given sentence is 'Method Study'. According to the 'Method Study' there is always a 'one best way' to complete any task. Every task can be performed via best method to gain efficiency. The basic purpose of this study is to reduce the costs to its minimal and increase the productivity to its maximum. Time study, Motion study and Fatigue study aims at standardising the time limits, eliminating the unwanted actions and deciding the break limits, respectively.

9. Which of the following statements best describes 'Mental Revolution'?

(a) It implies change of attitude

(b) The management and workers should not play the game of one upmanship.

(d) Workers should be paid more wages.

Ans: 'Mental Revolution', a term given by Taylor implied that the management and workers should change their attitude and thinking towards harmony. Management should take care of the needs and suggestions given by the workers and workers on the other hand, should work to their best capability. This will build a harmonious working environment in the organisation.

10. 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.

Ans: The false statement is 'Fayol's principles are applicable in specialised situations whereas Taylor's principles have universal application'. The correct statement in place of this is, ' Fayol's principles are universally applicable whereas Taylor's principles are applicable only in specialised situation.'

Short Answer Type:

1. How is the principle of 'Unity of Command' useful to management? Explain briefly.

Ans: According to this principle an employee should receive orders from one boss only because if he is receiving orders from more than one boss then he will get confused and will not be able to understand that whose orders must be executed first and on the other hand, if employee is receiving orders from more bosses he gets chance to give excuses by saying that he was busy in executing the orders of other boss. To avoid confusion and to give no chance of excuses to employee, the orders must come from one boss only.

2. Define Scientific Management. State any three of its principles.

Ans: Scientific management can be defined as "application of science for each and every element of management." In general language it means apply scientific tools, methods and trained personnel in order to increase the output.

The Following are three principles of scientific management.

i.Harmony, Not Discord: According to this principle, the managers and the workers should maintain a harmonious work environment. They should realise that they are dependent on each other. Only if they work in amity, will they be able to perform better. Taylor emphasised on complete mental revolution. That is, the workers should change their attitude and each one should realise others importance.Management should take care of the needs of the workers and workers on the other hand should work to their best efficiency. Both should work in harmony towards the common goals of the organisation.

ii.Science, Not Rule of Thumb: According to Taylor, instead of rule of thumb scientific management practices should be followed. Under the rule of thumb, each manger handles a situation as and when they arise. They used the trial and error method to find solutions to a problem. Taylor proposed that instead of this management practices should be scientific. He suggested that a study of various traditional methods should be done and the best method/solution among them should be adopted and followed by all the managers in the organisation. Such a scientific management greatly reduces the costs and improves efficiency.

iii.Personnel Development: Overall efficiency of the organisation depends on the individual competencies of the employees. Scientific management aimed at improving the working capabilities of the employees to their maximum level. It focused on the training and development of the labourers to raise their productivity.

3. If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?

Ans: In the stated situation, the Principle of Order is violated. In this principle order does not mean command but it refers to orderly arrangements of men and material that is a fixed place for everything and every one in the organisation. There are certain consequences of violation of these principles:

1.Wastage of time and energy in search of men and material.

2. Not able to contact the people at the right time.

4. Explain any four points regarding significance of Principles of Management.

Ans: Principles of management play an important role in managerial practices. They guide the managers in taking actions and decisions. The following points highlight the significance of Principles of Management

(a) Insights to Reality: Principles of Management are based on years of experimentation and experience. Thus, these principles guide the managers, when they face the real world problems. Managers can use them in different situations to solve the recurring problems.

(b) Logistic Decisions: Decisions regarding management should be taken carefully. They should be based on reasons and proofs rather than beliefs and ignorance. As principles of management were developed from real life problems so, they stand the test of logic and reasoning. Thus, principles of management help the managers in taking logical decisions that are free from personal bias.

(c) Basic Education of Management: These principles form the basic roots of management education. Without them management as a discipline could not have been developed. That is, they form an important part of management curriculum. In addition, they also form the basis of further research on management techniques and methods.

(d) Optimal use of Resources: Principles of management help in the optimum utilisation of the available resources. With principles of management the exact cause and effect relationship of the decisions of the managers can be predicted. Thereby, the wastage of resources that may be associated with the hit and trail method can be avoided.

Thus, by following the principles of management, best possible usage of resources becomes possible such that maximum benefit can be derived with minimum possible cost.

5. Explain the principle of 'Scalar Chain' and gang plank.

Ans: Scalar Chain means line of authority or chain of superiors from highest to lowest rank. Fayol insists that this chain must be followed strictly in the organisation. Every information must pass through every key of this chain, no skipping of one key should be allowed. According to scaler chain principle of C wants to contact E he has to move through B - A- D and then E. If this chain is broken then there are chances of communication gap in the organisation but sometimes following scaler chain becomes a long process and if someone important information has to be passed, it gets delayed so in case of emergency, Fayol permitted a short cut in the chain which is called Gang Plank in which Case can directly contact to E.

Principles of Management - Solutions