Principles of Management -Test Papers

CBSE Test Paper - 01
Chapter - 2 Principles of Management


  1. Espirit De Corps means ________.
    1. Scalar Chain
    2. Unity
    3. Gang Plank
    4. Order
  2. Which of the following system of management talks about a cheap and efficient way of doing a job?
    1. Scientific
    2. None of these
    3. Both Scientific and Administrative
    4. Administrative
  3. Who is responsible for keeping the machine and tools ready for operation?
    1. Speed Boss
    2. Gang Boss
    3. Inspector
    4. Repair Boss
  4. What type of centralisation does Fayol talk about?
    1. More Centralisation
    2. No Centralisation
    3. Little Centralisation
    4. Effective centralisation
  5. Which of the following is the technique to find out one best way of doing the job and minimise the production cost?
    1. Method study
    2. Fatigue study
    3. Motion study
    4. Time study
  6. State whether each of the following statement is True or False:
    1. Taylor's technique of differential piece wage system acts as a strong motivator for a worker to reach standard performance.
    2. Management principles are flexible to adapt to a dynamic business environment.
    3. The focus of Fayol's Principles of Management is an improvement in overall administration.
    4. Fayol principles are developed on the basis of scientific experiments.
  7. Fill in the blanks with suitable words:
    1. Under the differential piece-rate plan, efficient and inefficient workers are paid at ________ rates.
    2. The right to give orders and obtain obedience is known as ________.
    3. Unity of Commands resembles ________ organization.
    4. The formal lines of authority from highest to lowest ranks are known as ________.
  8. Match the following:
    (i) One best way of doing a job(a) Simplification
    (ii) Eliminates unnecessary diversity of products(b) Standardization
    (iii) Setting standards for business activities(c) Motion study
    (iv) Eliminates unnecessary movements(d) Method study
  9. What is the main focus of principles given by Henri Fayol and F.W. Taylor?
  10. Name the techniques of Taylor which is the strongest motivator for a worker to reach standard performance.
  11. Principle of cooperation, not individualism, is an extension of which principle given by Fayol?
  12. What is meant by Fayol’s principle of “Esprit De Corps”?
  13. 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?
  14. What does the principle of “Initiative” indicate?
  15. Explain the meaning of management principles and state how are they derived at.
  16. Devender and Rakhi both are friends. Both have completed their MBA course. Currently, they are employed, at an equal level, in a multi-national company. Devender is Deputy Manager in Kidswear Division and Rakhi is Deputy Manager in Ladieswear Division. Mr. Raghu Parsad is their boss. In order to please his boss, Devender always plays the role of Yes Man. On the other hand, Rakhi says Yes only for reasonable matters. She unhesitatingly refuses any wrong action of her boss. At the end of the year, when the performance of both of them was evaluated, then Rakhi s performance stood better than that of Devender. In spite of all this, Mr. Parsad decided to promote Devender. Behind this decision, the consideration of the boss was: being a lady, Rakhi will not be able to take as yet the responsibility of a higher post. So, let her stay where she is at present.
    1. Identify which Principle of Management has been violated by the company.
    2. Quoting the lines, identify those values which have been ignored in the above paragraph.
  17. 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 the 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, a place for men, machines and raw materials until 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 and explain the principles and the technique of scientific management followed by the Production Manager in the above case.
  18. Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.

CBSE Test Paper - 01
Chapter - 2 Principles of Management


Solution

  1. (b) Unity
    Explanation:
    • Esprit de corps is a French phrase that translates into 'group spirit'.
    • It is one of the principles of Henri Fayol.
    • Management should promote a team spirit of unity and harmony among employees, according to Fayol.
  2. (a) Scientific
    Explanation: Scientific management
  3. (b) Gang Boss
    Explanation:
    1. Speed boss - Responsible for timely and accurate completion of the job.
    2. Gang boss - Responsible for keeping machine and tools ready for operation.
    3. Repair boss - To Ensure proper working condition of machines.
    4. Inspector - To Check the quality of work.
  4. (d) Effective centralisation
    Explanation: Fayol talks about effective centralisation.
  5. (a) Method study
    Explanation: Method study
    1. True
    2. True
    3. True
    4. False
      Explanation: False, Fayol principles are based on a fundamental truth.
    1. Different
    2. Authority
    3. Military
    4. Scalar chain
  6. (i) - (d), (ii) - (a), (iii) - (b), (iv) - (c).
  7. The main focus of Henri Fayol is on improving overall administration whereas that of Taylor is on increasing productivity.
  8. Differential Piece Wage system: In this system efficient and inefficient workers are paid at different rates. So the scope of extra earnings motivates the worker to put extra efforts.
  9. Taylor's principle Cooperation, Not Individualism is the extension of the initiative principle of Fayol.
  10. Esprit de corps means Promoting team spirit will build harmony and unity within the organization. To achieve the organizational objective easily it is important to promote teamwork especially in large organizations, otherwise, objectives would be difficult to realize. This principle strengthens the bond among the employees and develops a sense of unity among them. This principle focuses on the importance of community work rather than individual expertise.
  11. Principle violated in this situation is “Order”. Consequences of violation can be:
    1. Misuse of resources like men and material.
    2. Increase in the chances of accidents.
    3. The decrease in productivity and efficiency
    4. Wastage of time in search of men and material.
    5. Not able to contact the people at the right time.
  12. Initiative means taking the first step with self-motivation. It is one of the traits of a creative person. Fayol suggested that employees at all levels should be allowed to take initiative in work-related matters. Management must appreciate and encourage initiative but it does not mean going against the established practices of the organization for the sake of being different. The principle of 'Initiative' brings a sense of belongingness among the employees as they strongly believe that they have a say in the functioning of the organization. It also enables managers to identify an able and efficient employee from a bunch of employees.
  13. Management principles are statements of fundamental truth which provide guidelines for managerial decision-making and action. Management principles are derived from the following two methods:
    1. Observation- Management principles are derived on the basis of observation and analysis of events which managers face in actual practice. For example, every manager faces the problem of delegating his authority to subordinates in actual practice. Principles governing delegation of authority are evolved on the basis of observation of managers.
    2. Experimental studies- Another method of deriving principles is conducting experimental studies. For example, we may conduct an experimental study to confirm the correctness of the principle of unity of command.
    1. In this case, the ‘Principle of Equity’ has been ignored. According to the principle, the managers should treat their subordinates in a just and kind manner.
    2. Values that have been ignored:
      1. Good human behaviour: In order to please his boss, Devender, always plays the role of “Yes Man.”
      2. Gender Equality: Inspite of all this, Mr. Parsad decided to promote Devender, Behind this decision, the consideration of the boss was, being a lady, Rakhi will not be able to take as yet, the responsibility of a higher post. So let her stay where she is at present.
  14. The principles of scientific management followed in the above case are :
    1. Science, not the rule of thumb In order to increase organisational efficiency, the ‘Rule of Thumb’ method should be substituted by the methods developed through scientific analysis of work.
    2. Development of each and Every Person to his/her Greatest Efficiency Efficiency of any organisation also depends on the skills and capabilities of its employees to a great extent. Thus, providing training to the workers was considered essential in order to learn the best method developed through the use of a scientific approach. To attain the efficiency, steps should be taken right from the process of selection of employees. Employees should be scientifically selected.
    The techniques of scientific management followed in this case are:
    1. Standardisation It is the process of setting standards for every business activity, process, raw materials, time, machinery and methods, to achieve efficiency. Standardisation of a product implies that the size, design, quality, shape, etc of the product should meet the requirements and tastes of consumers. Simplification means eliminating superfluous sizes, varieties, and dimensions.
      Its aim is to:
      1. Eliminate unnecessary diversity of products and thereby reduce costs.
      2. Help in achieving economy in the use of required machines and tools.
    2. Method Study This technique of scientific management is conducted to find out the ‘one best method or way’ of performing a particular task. The objective of this study is to minimise the cost of production and maximise the quality and satisfaction of the customer.
  15. Both Fayol and Taylor have contributed immensely to the knowledge of management, which has formed a basis for further practice by managers. It must be pointed out that their contributions are complementary to each other. Though both differ in their perspective but their contribution to the contemporary business environment cannot be ignored.
    The relevance of Taylor and Fayol’s contribution:
    1. Both contributed in the form of principles.
    2. Both developed their principles through practical experience.
    3. Both emphasized on mutual cooperation and bringing team spirit between management and employees.
    4. Both advocate division of work and responsibility on the basis of specialisation.
    5. Both were emphasizing on maximizing the efficiency of work and performance.
    6. Both were emphasizing on organizational interest over the individual interest.
    7. Both wanted to involve workers participation in management decisions.
    8. Both of them have contributed immensely to the knowledge of management, which has formed a basis for further practice by managers.