Business Studies class 12 chapter 2 questions and answers Principles of Management

Class 12 business studies chapter 2 ncert solutions: Principles of Management questions and answers

Textbook	Ncert
Class	Class 12
Subject	Business Studies
Chapter	Chapter 2
Chapter Name	Principles of Management class 12 ncert solutions
Category	Ncert Solutions
Medium	English

Are you looking for business studies class 12 chapter 2 questions and answers? Now you can download Principles of Management class 12 questions and answers pdf from here.

Very Short Answer Type:

Question 1: What makes principles of management flexible?

Answer 1: Management principles are varied, and one rule cannot be applied to all cases. Thus, a manager has to assess the situation and then determine the best solution to the issue at hand. For this reason, management principles are flexible.

Question 2: State the main objective of time study.

Answer 2: The main objective of time study is to determine the time required to complete a specific task or operation under normal working conditions. It involves measuring the time taken for each element of a process to identify inefficiencies, set performance standards, and improve productivity. By analyzing time data, time study helps optimize work methods, reduce waste, and establish realistic benchmarks for labor costs and operational performance.

Question 3: Name the principle that is an extension of the ‘harmony, not discord’.

Answer 3: The principle that extends the concept of “harmony, not discord” is the principle of “cooperation, not individualism”. This principle emphasizes the importance of teamwork and collaboration within an organization, where all members work together towards a common goal rather than focusing solely on individual interests.

By fostering a cooperative environment, it encourages mutual respect, shared responsibility, and a collective effort, leading to more efficient and harmonious operations. This principle helps improve communication, morale, and overall productivity.

Question 4: State any two causes of fatigue that may create hindrance in the employee’s performance.

Answer 4: The two causes of fatigue that may create hindrance in the employee’s performance are long working hours and uncordial relations with the boss.

Question 5: SanakLal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.

Answer 5: The principle of management followed by Wales Limited is stability of personnel. According to Fayol, employee turnover should be minimized to maintain organizational efficiency. The employees should be selected after the rigorous procedure and ones selected they should be kept at their position for a minimum fixed tenure. They should be given a reasonable amount of time to show the result.

Question 6: Which technique is used by Taylor for distinguishing efficient and inefficient workers?

Answer 6: The technique used by Taylor for distinguishing efficient and inefficient workers was “Differential Piece Wage System”. Under this technique, wages are being decided according to the set standard. The workers who perform better than the set standards get higher wages in comparison with the workers who perform below the standards.

Short Answer Type:

Question 1: How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.

Answer 1: Principle of Unity of Command implies that each and every subordinate should have one and only one boss. Orders and instructions should come from only one head. This helps the working of any organisation in the following manner
(i) Authority responsibility relationship is clearly defined.
(ii) Subordinates are known for whom they are accountable.
(iii) Discipline and order is maintained.

Question 2: Define scientific management. State any three of its principles.

Answer 2: Scientific Management Definition: Scientific management is a management theory that focuses on improving efficiency by studying and optimizing work processes. It involves determining the most effective methods to complete tasks and using scientific analysis to ensure workers perform in the best and most economical way, maximizing productivity.

Three Principles of Scientific Management:

Science, Not Rule of Thumb: This principle advocates for replacing traditional, trial-and-error methods with scientifically researched methods. Managers should study different work methods, analyze their results, and standardize the best approach to achieve the most efficient and productive outcomes.

Harmony, Not Discord: Taylor emphasized the importance of cooperation between workers and management. Instead of conflict, both sides should work together, with management ensuring fair treatment and workers contributing to the organization’s success. This fosters a harmonious relationship, leading to better performance and fewer disruptions.

Co-operation, Not Individualism: This principle stresses the need for collaboration between workers and management rather than individual efforts. Both parties should work towards common goals, with management valuing employees’ input and workers working towards the organization’s efficiency. Collective responsibility and coordination lead to mutual benefits and higher productivity.

Question 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?

Answer 3: In such a situation, the principle that is violated is the principle of order. It states that there should be a right arrangement of resources. In other words, the right people at the right place and at the right time. Following this approach helps in carrying out the tasks effortlessly. Whenever that principle is violated, it results in unnecessary delay at work and ensures chaos. Delays in completing work will result in a loss for the company.

Question 4: Explain any four points regarding significance of principles of management.

Answer 4: Principles of management have the following significance

1. Management principles are based on years of observation and implementation into real-life issues. Hence, these principles guide managers in tackling real-world problems easily.

2. Management principles are based on logic rather than on beliefs. These principles are derived from real-life situations and therefore are based on logic and reasoning. It helps managers in making decisions which are devoid of personal bias.

3. Principles are the foundation of management education. They helped it to grow as a discipline, and such principles also offer a basis on which further research programs can be carried out to develop new methods and techniques.

4. Management principles help organisations to perform at the best of their capacity or, in other words, ensure optimum utilisation of the available resources.

Question 5: Explain the principle of ‘Scalar Chain’ and gang plank.

Answer 5: Principle of Scalar Chain and Gang plank: The chain of authority from the highest to the lowest ranks which help in formal communication are known as scalar chain. According to Fayol, “Organisation should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates.”
In the given diagram, O is heading 2 teams, where A and X are at the same level, B and Y are at the same level and C and Z are at the same level. The line of communication is clearly defined A to B to C and X to Y to Z. Authority responsibility relationship is also very clear. But C and Z cannot directly contact each other directly. This at times may take lot of time during an emergency to communicate as per the prescribed flow, to avoid this problem a system known as ‘Gang Plank’ was introduced where in C or Z could contact each other and same way B and Y could contact each other.

Question 6: A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?

Answer 6: Mr. Rathore violated the principle of Subordination of Individual Interest to General Interest by prioritizing his personal interest over the organization’s goals. By awarding the order to his cousin at a higher price, he compromised the financial interests of the organization, which could hinder its ability to achieve its overall objectives. This behavior reflects a failure to prioritize the general interest of the firm.

Positive Impacts of Following This Principle:

• Ensures organizational goals are achieved efficiently and effectively.
• Promotes fairness and integrity in decision-making.
• Builds trust and morale among employees and stakeholders by demonstrating a commitment to the company’s interests over personal gains.
• Helps optimize resource utilization, leading to better financial performance.

Long Answer Type:

Question 1: Explain the Principles of Scientific management given by Taylor.

Answer 1: Principles of scientific management are given by FW Taylor

(i) Science, Not Rule of Thumb When different managers use their own different methods to get the work done it is rule of thumb. Taylor believed that there was only one best method maximise efficiency. Taylor advised that every organisation should compare the results of different methods, test them again and again and finally select one best method of getting the work done.

(ii) Harmony, Not Discord Managers are an extension of the management and serve as a link between workers and the owners. Workers have to take the instructions from the managers and managers have to get the work done through the workers. Sometime the relation between them is spoilt, which is very harmful for everyone-workers, managers and owners. This class conflict should be replaced by harmony between the two. Both should change their thinking towards each other. This is known as mental revolution.

(iii) Co-operation, Not Individualism There should be complete co-operation between the labour and the management instead of individualism. This principle is an extension of principle of harmony, not discord. The management and the workers should not compete with each other rather co-operate with each other. Management should consider all good suggestions made by the employees which can help in cost reduction. At the same time workers should never think of going on strikes in order to get their unreasonable demands fulfilled.

(iv) Development of Each and Every person to His or her Greatest Efficiency and Prosperity Scientific management also stood for worker development. Taylor believed that workers should be aware of the ‘best method’. On the other hand, all organisations should select employee carefully in order to get maximum efficiency. When the duties are allotted, perfect match should be made between the requirements of the job and the capabilities of the worker. Training should be provided to improve the skills further. In this way, efficiency will go higher resulting in prosperity for both workers and company.

Question 2: Explain the following Principles of management given by Fayol with examples:
a. Unity of direction
b. Equity
c. Espirit de corps
d. Order
e. Centralisation and decentralisation
f. Initiative

Answer 2: a. Unity of Direction: This principle states that each unit of the organisation should be working towards attaining a common business objective. It helps in avoiding work overlapping and also increases profitability. For example, a company producing two different products should have separate management for each.

b. Equity: This principle focuses on treating all employees equally. Equality should be based on religion, caste, creed etc. It will promote harmony among the workers. For e.g., workers from different religions should be treated equally in a company.

c. Espirit de corps: This principle states that employees in an organisation should work with each other and maintain unity. The team spirit is improved when all resources are working unitedly, and this feeling should be promoted by the manager.

d. Order: There should be order in work being done. The management should hire the right people at right place and right time. Doing such things helps in carrying out the activities in a smooth manner. For e.g., if the user manual pages are arranged in a sequence, shuffling them will result in delay in production.

e. Centralisation and Decentralisation: Centralisation is the concentration of power or authority in the hands of selected people in an organisation. Whereas decentralisation is shifting the authority to middle and lower levels of management. For e.g., if CEO has all decision-making powers, it is centralisation, whereas if the decision-making power is distributed to managers of middle and lower levels, then it is decentralisation.

f. Initiative: As per this principle, workers should be motivated and provided incentives. They should be encouraged to suggest points for improvement, it will make them take more initiative for the development of the organisation.

Question 3: Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.

Answer 3: Functional Foremanship is an extension to the principle of division of labor. In this technique each worker will work under eight foreman in the related process or function of production.

Taylor divides the eight foreman under two incharges: 

• Planning incharge 
• Production incharge.

Planning incharge includes:

• Instruction card clerk: His role is to give instructions to workers.
• Route clerk: He is responsible for the specification of the production route.
• Time and cost clerk: His role is to prepare time and costs sheets.
• Disciplinarian: His role is to ensure discipline.

Production incharge includes:

• Speed boss: His role is to ensure that the work completes in a timely and accurate manner.
• Gang boss: He is responsible to keep machines and tools in a ready state of work.
• Repairs boss: His role involves keeping the machines and tools in proper working conditions, and arranging for their repairs as and when needed.
• Inspector: He is responsible for checking the quality of work.
  

Mental revolution: Mental revolution focuses on the transformation of the mindset and attitude of workers and management towards each other. Management should try their best to satisfy the needs of the employees and workers should also do their best in order to develop the organization. Both should realise the importance of each other and cooperate with one another.

Question 4: Discuss the following techniques of Scientific Work Study:
a. Time Study
b. Motion Study
c. Fatigue Study
d. Method Study
e. Simplification and standardisation of work

Answer 4: Some of the techniques of scientific work study are:

Time Study: Time study involves measuring the time taken to perform each task or element of a job. The objective is to establish a standard time for the completion of tasks, which helps in improving productivity, scheduling work efficiently, and determining fair wages for workers. It ensures that workers neither overwork nor underperform.

Motion Study: Motion study focuses on analyzing the movements of workers and machines during the performance of a task. The goal is to eliminate unnecessary movements and identify the most efficient way to complete the task. This helps in reducing fatigue, improving efficiency, and enhancing overall productivity.

Fatigue Study: Fatigue study examines the physical and mental fatigue experienced by workers during their job. It helps determine the frequency and duration of rest intervals required to maintain optimal productivity. Properly managed rest breaks ensure workers are not overburdened, leading to better quality of work and reduced errors.

Method Study: Method study involves analyzing the current methods of performing a job and finding simpler, more efficient, and cost-effective ways to complete it. This technique emphasizes improving workflow, eliminating waste, and optimizing resource utilization.

Simplification and Standardization of Work: Simplification aims to reduce unnecessary diversity in products, parts, and processes, which helps lower production costs and increase efficiency. Standardization involves establishing uniformity in processes, materials, tools, and equipment to ensure consistency in output, enhance quality, and streamline production.

Question 5: Discuss the differences between the contributions of Taylor and Fayol.

Answer 5: The differences between the contributions of Taylor and Fayol are:

PRINCIPLE	TAYLOR	FAYOL
TITLE	Father of scientific management	Father of general management.
CONTRIBUTION	scientific management or taylorism was given by him 1911.	The general theory of administration or Fayolism was given by him in 1916.
PERSPECTIVE	Focused on lower level management	Focused on top level managment.
FOCUS	Focused on improving the overall administration of the organization.	Focused on improving the productivity and worker’s efficiency.
UNITY OF COMMAND	Focused on functional foremanship and not unity of command	Followed the concept of unit of command.
BASIS OF FORMATION	observational experimentation	personal observation.
PRINCIPLES	He introduced the principles of scientific management.	He intoduced the 14 principles of management.

Question 6: Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.

Answer 6: The principles of both Fayol and Taylor play a significant role in the contemporary business environment. These principles provide a guideline to managers for making decisions and taking appropriate actions. Business situations can be best understood with the application of these principles.

Such principles are not used as it is described, but managers can take guidance from these and determine how to confront a situation. It can be used in various scenarios, and the decisions which are taken by managers will be backed by facts and logic, which makes it more applicable. By providing insight into real word business cases, they help managers in decision-making.

As these principles have industry-wide applicability and are based on human behaviour, they provide insight into human and material resources. It helps in the development of an organisation by improving effectiveness and efficiency with minimum use of resources and cost.

Question 7: ‘Bhasin’ limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keep its market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products.
This resulted in a lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of teamwork, which had characterized the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease.
Actually the company had implemented changes without creating the required infrastructure.
(a) Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
(b) Explain these principles in brief.
(c) What steps should the company management take in relation to the above principles to restore the company to its past glory?

Answer 7: (a) The principles of management that are being violated in the given situation are as follows:

(i) Quote 1: Sometimes the subordinates had to work for more than one superior resulting in declining efficiency.
Principle: Unity of command— This is visible from the situation that the employees are made to work for more than one superior.

(ii) Quote 2: The divisions that were previously working on one product were also made to work on two or more products.
Principle: Division of work— In the situation given, One division is made to work on more than one product which gives rise to the wastages.

(iii) Quote 3: The workers were becoming indisciplined.
Principle: Discipline— ‘Principle of discipline’ is not being followed in the given situation, as workers were becoming indisciplined.

(iv) Quote 4: The spirit of teamwork, which had characterised the company, previously was beginning to wane.
Principle: Espirit de corps—As the workers lost the spirit of team work. It resulted to the violation of ‘E sprit de corps” principle.

(v) Quote 5: Workers were feeling cheated and initiative was declining.
Principle Initiative: It is given in the situation that initiative is declining and employees are discouraged.

2. (b) (i) Unity of Command: According to this principle, subordinate should be answerable to and take orders from only one boss. If an employee gets orders from more than one superior, the employee will be confused about whose orders to follow, which will eventually affect the work. It might also cause a conflict of interests and egos among the superiors.

(ii) Division of work: Division of work means that the given task is divided into small groups or units so that the task would be completed in a competent manner. This principle results in specialisation in work.

(iii) Discipline: Discipline means that the organisation must follow the rules and regulations to ensure conformity to the set rules and policies. It is important for both the workers as well as the management to honour their commitments.

(iv) Espirit de corps: This principle states that employees should work in unity with each other. They should work like a team and team spirit should be promoted by the manager. Each employee should have a sense of belongingness. This proves functional especially in large organisations where without team work, achievement of objectives would become difficult. Team sprit helps in increasing coordination and mutual understanding among the employees and thereby improves efficiency.

(v) Initiative: According to this principle, workers should be given praiseworthy motivation and incentive to work. They should be welcomed to come up with the suggestions regarding the work. Although initiatives should be encouraged, but they should be in line with the practices and rules of the organisation. For example, the managers can ask the workers for their inputs over how to increase efficiency. Also, good suggestions can be rewarded.

(c) The steps that can be taken by the company to restore its past glory are as follows:

• Scientific management must be followed.
• The subordinates get instruction from only one superior at a time to avoid any confusion and chaos.
• There must be specialisation in work in such a manner that each division specialises in single particular task. Hence it will help to avoid overlapping in work.
• Workers must be given proper incentives and motivation to work through such measures as differential piece wage system so they can work with their full efficiency.
• Preverence would be given to team work with proper coordination and understanding.

Question 8: (Further information related to the above question 7) The management of company ‘Bhasin Limited now realised its folly. In order to rectify the situation, it appointed a management consultant ‘Mukti Consultants- to recommend a restructure plan to bring the company back on the rails. ‘Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —
(i) The company should introduce scientific management with regard to production.
(ii) Production Planning including routing, scheduling, dispatching and feedback should be implemented.
(iii) In order to separate planning from operational management ’Functional foremanship’ should be introduced.
(iv) ‘Work study’ should be undertaken to optimise the use of resources.
(v) ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
(vi) To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part C – Case problem 7 above.).
It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.
a. Do you think that introduction of scientific management as recommended by Mukti consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.

Answer 8: a. Although scientific management is an extremely good condition it would not be able to give effective results due to the following reasons:

• a. The principle of the initiative will not help if functional foremanship is adopted.
• b. A lot of stress would be generated in the organisation.
• c. The adoption of professionals would lead to an increase in cost.
• d. Market research will be of little help due to the increased competition.
• e. With the introduction of the differential piece wage system, only the efficient workers would gain. The others would face a lot of instability if the target is not met.

b. The company should take the following precautions to implement the changes as they would not be readily accepted by everyone:

• a. The company must appoint trained workers only in a few areas.
• b. Extreme care must be undertaken while production planning.
• c. Functional foremanship can be introduced but the workers must be consulted for the suggestion.
• d. Optimum utilisation of time and money must be promoted.
• e. Standardization must be implemented for material and machine.
• f. Instead of introducing the differential wage system, financial incentives must be given to the workers who get more work done.