Business Studies Class 12 Important Questions<\/a> Chapter 2 Principles of Management to solve different types of questions in the exam. Go through these Principles of Management Class 12 Important Questions and Answers & Previous Year Questions to score good marks in the board examination.<\/p>\nImportant Questions of Principles of Management Class 12 Business Studies Chapter 2<\/h2>\n
Question 1.
\nAppliances India Ltd. is engaged in a manufacturing and distribution of home appliances since 1987. It has a good name in the market as the company is producing good quality appliances. It has separate departments for manufacturing, finance, sales, maintenance services and technical services to achieve specialisation.
\nSince, the areas of operations of the company have increased and customers have become more demanding, the company decided to modify the existing principle of management to meet the changing requirements of the environment.
\nState the general principle of management which the company wants to modify to meet the changing requirements. (Delhi 2019)
\nAnswer:
\nThe company wants to modify the principle of ‘Division of Work’.<\/p>\n
<\/p>\n
Question 2.
\nState the role of \u2018speed boss\u2019 in functional foremanship. (Foreign 2016; Delhi 2016)
\nAnswer:
\nSpeed boss is responsible for maintaining speed of production, investigating causes of delay and removing it.<\/p>\n
Question 3.
\nState the role of \u2018gang boss\u2019 in functional foremanship. (All India 2016; Delhi 2016; Foreign 2016)
\nAnswer:
\nGang boss is responsible for keeping machines and tools ready for work.<\/p>\n
Question 4.
\nState the role of \u2018inspector\u2019 in \u2018functional foremanship\u2019. (All India 2016: Delhi 2016; Foreign 2016)
\nAnswer:
\nThe inspector is responsible for maintaining quality of work.<\/p>\n
Question 5.
\nState the role of \u2018route clerk\u2019 in functional foremanship. (All India 2016)
\nAnswer:
\nRoute-clerk is responsible for specifying the route of production.<\/p>\n
Question 6.
\nWhat is determined by fatigue study? (Foreign 2014)
\nOr
\nState the objective of fatigue study. (All India 2010; Foreign 2010)
\nAnswer:
\nThe objective of fatigue study is to maintain the efficiency level of workers by determining the amount and frequency of rest intervals in completing a task.<\/p>\n
Question 7.
\nWhat is the objective of \u2018method study\u2019 as a technique of scientific management? (Delhi 2014)
\nAnswer:
\nThe main objective of method study is to find out the best way of doing the job.<\/p>\n
Question 8.
\nState the objective of time study. (All India 2014,2010; Delhi 2010)
\nOr
\nWhat is determined by time study? (All India 2014; Foreign 2010)
\nAnswer:
\nThe main objective of time study is to determine the standard time required to perform a job.<\/p>\n
Question 9.
\n\u2018Accurate cause and effect relationship cannot be established by principles of management.\u2019 Why? (Compartment 2013)
\nAnswer:
\nSince management principles are applicable on human resource of a concern, and human behaviour is unpredictable, accurate cause and effect cannot be established by them.<\/p>\n
Question 10.
\nWhy do principles of management try to establish the relationship between cause and effect? State. (Comportment 2013)
\nAnswer:
\nEstablishing cause and effect relationship through management principles helps manager, to solve day-to-day problems easily and effectively.<\/p>\n
Question 11.
\nWhat is meant by \u2018principles of management\u2019? (All India 2013 2009, Delhi 2011)
\nAnswer:
\nPrinciples of management are general guidelines, which can be used for conduct in work places under certain situations. It also helps manager to take and implement thoughtful decisions.<\/p>\n
Question 12.
\nAyesha, a manager, decided that there will be separate departments for finance, marketing, production and sales in her company. By doing so she is following a principle of management. Name the principle. (Compartment 2013)
\nAnswer:
\nDivision of work<\/p>\n
Question 13.
\nShreya, a manager feels that employees should get enough time to adapt to a new environment to show results. By doing so she is following a principle of management. Name the principle. (Comportment 2013)
\nAnswer:
\nStability of personnel<\/p>\n
Question 14.
\nName the following principles of management:
\n(a) that prevents dual subordination and
\n(b) that prevents overlapping of working of two divisions. (Compartment 2012)
\nAnswer:
\n(a) Unity of command
\n(b) Unity of direction<\/p>\n
<\/p>\n
Question 15.
\nDistinguish between the principles of \u2018unity of command\u2019 and \u2018unity of direction’ on the basis of implications. (Comportment 2012)
\nAnswer:
\nDifference between unity of command and unity of direction on the basis of implications is stated below:
\nUnity of command It affects individual employee.
\nUnity of direction It affects the entire organisation.<\/p>\n
Question 16.
\nDefine \u2018scientific management\u2019. (Comportment 2012)
\nOr
\nWhat is meant by scientific management? (Foreign 2011)
\nAnswer:
\nScientific management In words of Taylor, scientific management means knowing exactly what you want men to do and seeing that they do in the best and the cheapest way.<\/p>\n
Question 17.
\nState why \u2018principles of management\u2019 are called contingent. (All India (C) 2012)
\nOr
\nWhat is meant by the statement \u2018principles of management are contingent\u2019? (All India 2011,2010; Foreign 2011)
\nOr
\nGive any one reason why principles of management are called \u201ccontingent\u201d. (Delhi 2010; Foreign 2010)
\nOr
\nWhy is it said that \u2018principles of management are contingent\u2019? (Foreign 2011)
\nAnswer:
\nThe application of principles of management is contingent as it depends upon the prevailing situation at a particular point of time.<\/p>\n
Question 18.
\nWhat is meant by \u2018universal applicability of principles of management\u2019? (Delhi 2011)
\nAnswer:
\n‘Universal applicability of principles of management’ means that the principles of management are intended to apply to all types of organisations at all places.<\/p>\n
Question 19.
\nState any one reason why principles of management are important? (All India 2011)
\nAnswer:
\nPrinciples of management are important as they help managers in taking thoughtful and scientific decisions.<\/p>\n
Question 20.
\nWhat is meant by the statement \u2018principles of management are flexible\u2019? (Delhi 2011)
\nOr
\nGive any one reason why principles of management are not rigid prescriptions? (All India 2010; Delhi 2010)
\nAnswer:
\nPrinciples of management are flexible, which means that they are not rigid, and can be modified by the manager as per the situation.<\/p>\n
Question 21.
\nWhat is meant by Fayol\u2019s principle of \u2018esprit de corps\u2019? (Delhi 2011)
\nAnswer:
\nFayol’s principle of ‘esprit de corps’ suggests that management should promote team spirit of unity and harmony among the employees.<\/p>\n
Question 22.
\nState any one principle of scientific management. (Delhi 2011)
\nAnswer:
\nScience, not rule of thumb It advocates that there is only one best method to maximise efficiency and this method should substitute rule of thumb throughout the organisation.<\/p>\n
Question 23.
\nName the principle of scientific management which emphasises on study and analysis of methods rather than estimation.
\nOr
\nName the principle of scientific management which suggests the introduction of scientific investigation and analysis. (Delhi (C) 2011)
\nAnswer:
\nScience, not rule of thumb.<\/p>\n
<\/p>\n
Question 24.
\nGive any one reason why principles of management do not provide readymade solution to all managerial problems. (All India 2010; Delhi 2010; Foreign 2010)
\nAnswer:
\nPrinciples of management do not provide readymade solution to all managerial problems because principles provide general guidelines to managers whereas real business situations are extremely complex and not based on theoretical knowledge.<\/p>\n
Question 25.
\nWhich principle of management implies that there should be \u2018one head and one plan for a group of activities having the same objective? (All India 2010)
\nAnswer:
\nPrinciple of unity of direction implies that there should be ‘one head and one plan’ for a group of activities having the same objective.<\/p>\n
Question 26.
\nWhich principle of management states that an employee should receive orders from one superior only? (Delhi (C) 2010)
\nAnswer:
\nUnity of command states that an employee should receive orders from one superior only.<\/p>\n
Question 27.
\nState the objective of motion study. (All India 2010; Delhi 2010; Foreign 2010)
\nAnswer:
\nThe objective of motion study is to eliminate unnecessary and wasteful motions so that it takes less time to complete the job efficiently.<\/p>\n
Question 28.
\nWhich technique of Taylor differentiates between an efficient worker and an inefficient worker? (All India 2010)
\nAnswer:
\nDifferential piece wage system differentiates between an efficient worker and an inefficient worker.<\/p>\n
Question 29.
\nWhich revolution involves a change in the attitude of workers and management towards one another, from competition to cooperation? (Delhi (C) 2010)
\nAnswer:
\nMental revolution involves a change in the attitude of workers and management towards one another, from competition to cooperation.<\/p>\n
Question 30.
\nExplain briefly \u2018unity of direction\u2019 and \u2018order\u2019 as principles of general management. (All India 2017)
\nAnswer:
\n‘Unity of direction’ and ‘order’ as principles of general management are discussed below:
\n(i) Unity of direction ‘One unit and one plan for the group of activities having the same objective is the essence of this principle. It implies that there should be one head and one plan for a group of activities having the same objective. It means that the efforts of members of the organisation should be directed towards the achievement of a common goal. It was forwarded by Fayol.<\/p>\n
(ii) Order According to Fayol, ‘People and material must be in suitable place at appropriate time for maximum efficiency’. This principle states that there should be a place for everything and everyone in an organisation and that thing or person should be found at its alloted place. This will lead to increased productivity and efficiency.<\/p>\n
Question 31.
\nExplain briefly \u2018initiative\u2019 and \u2018esprit de corps\u2019 as principles of general management. (All India 2017)
\nAnswer:
\n‘Initiative’ and ‘esprit de corps’ as principles of general management are discussed below:
\n(i) Initiative It means freedom to think of new ideas and execute them. The principle of initiative implies that the managers of an organisation should encourage their subordinates to take initiative and think of new ideas or policies that are beneficial for the organisation and execute them. By ‘encouraging initiative, the management can motivate employees to work better and harder.<\/p>\n
(ii) Esprit de corps This principle states that union is strength. It refers to team spirit, i.e. harmony in the work group and mutual understanding among the workers. A group of workers working collectively in harmony and with mutual cooperation leads to the achievement of goals efficiently. Unity among the personnel can be accomplished through proper communication and coordination.<\/p>\n
Question 32.
\nExplain briefly \u2018remuneration of employees\u2019 and \u2018scalar chain\u2019 as principles of general management. (All India 2017)
\nAnswer:
\nRemuneration of employees According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees, which gives them a reasonable standard of living and should be within the paying capacity of the company.<\/p>\n
Scalar chain According to Fayol, scalar chain refers to the chain of authority and communication that runs from top to bottom and should be followed by managers and their subordinates.
\n<\/p>\n
The above figure illustrates the scalar chain. If D and O wants to communicate, the message should usually move up through C, B, A, M, N and then O. Communication through this process takes time.<\/p>\n
Question 33.
\nExplain \u2018unity of command\u2019 and \u2018equity\u2019 as principles of general management. (Delhi 2017)
\nAnswer:
\nUnity of command According to this principle, one subordinate should receive orders from one superior only at a given point of time. The principle is necessary to avoid confusion and conflict. Equity The principle of equity implies a sense of fairness and justice to all workers working in an organisation. Observance of equity alone would make workers loyal and devoted to the organisation. Equity does not mean equal salary to a peon and supervisor.<\/p>\n
But equity means application of same disciplinary rules, leave rules, etc irrespective of their grade, position and gender, language, religion or nationality, etc.<\/p>\n
Question 34.
\nExplain briefly ‘discipline’ and ‘scalar chain’ as principles of general management. (Delhi 2017)
\nAnswer:
\nDiscipline According to Fayol, discipline is obedience, application and outward mark of respect. It is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.<\/p>\n
Scalar chain It is the chain of superiors ranking from the top to the lowest ranks. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom linking managers at all levels. The scalar chain serves as the chain of command and also as the chain of communication. Under the chain of command, orders and instructions, issued at higher levels, flow through intermediate managers before reaching the lower levels.<\/p>\n
Question 35.
\nExplain \u2018order\u2019 and \u2018initiative\u2019 as principles of general management. (Delhi 2017)
\nAnswer:
\nOrder: According to Fayol, ‘People and material must be in suitable place at appropriate time for maximum efficiency’. This principle states that there should be a place for everything and everyone in an organisation and that thing or person should be found at its alloted place. This will lead to increased productivity and efficiency.<\/p>\n
Initiative: According to Fayol, ‘Initiative means taking the first step with self motivation, it is thinking out and executing the plan’. It is one of the traits of an intelligent person. Initiative should be encouraged because employees get satisfaction when they are allowed to take initiative. But it does not mean going against the established practices of the company for the sake of being different.<\/p>\n
Question 36.
\nName and explain the principle of management according to which a manager should replace T with \u2018We\u2019 in all his’conversation with workers? (Delhi 2013)
\nAnswer:
\nEsprit de corps: It is the principle of management, according to which a manager should replace ‘I’ with ‘We’ in all his conversation with workers. Literally speaking, the phrase ‘esprit de corps’ means the spirit of loyalty and devotion which unites the members of the group.<\/p>\n
According to Fayol, management should promote a team spirit of unity and harmony among employees. A manager should replace T with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members.<\/p>\n
<\/p>\n
Question 37.
\nExplain \u2018harmony, not discord\u2019 as a principle of scientific management? (Delhi 2013)
\nAnswer:
\nAccording to this principle, there should be complete harmony between the management and the workers working in an organisation. To support this, Taylor advocated a complete ‘mental revolution’, i.e. change in the attitude of both workers and management towards one another, from competition to cooperation. Both should realise the importance of each other.<\/p>\n
Question 38.
\nExplain \u2018cooperation, not individualism\u2019 as a principle of scientific management? (Delhi 2013)
\nAnswer:
\n‘Cooperation, not individualism’ is a principle of scientific management which states that there should be complete cooperation between the workers and management in an oganisation instead of individualism and competition. In the absence of constant and willing cooperation between the two sides, maximum prosperity for both the parties cannot be achieved.<\/p>\n
Question 39.
\nExplain how principles of management:
\n(i) provide useful insight into reality and
\n(ii) help in thoughtful decision-making (Delhi 2012)
\nAnswer:
\n(i) Provide useful insight into reality The principles of management provide useful insight into real world situations. Managers may apply these principles to fulfil their tasks and responsibilities. These principles guide the managers in taking and implementing thoughtful decisions.<\/p>\n
(ii) Thoughtful decision-making These principles help in enhancing knowledge, ability and understanding of managerial situations and circumstances. They must be timely, realistic and subject to measurement and evaluation. They emphasise logic rather than blind faith and are free from bias and prejudice.<\/p>\n
Question 40.
\nExplain how principles of management:
\n(i) help in optimum utilisation of resources and effective administration, and
\n(ii) help the managers in meeting changing environment requirements. (All India 2012)
\nAnswer:
\n(i) Principles of management help in optimum utilisation of resources by equipping managers to foresee the cause and effect relationship of their decisions and actions, as such the wastage associated with a trial and error approach can be overcome.
\nPrinciples of management help in effective administration by limiting the boundaries of management discretion so that their decisions may be free from personal prejudice and bias.<\/p>\n
(ii) Principles of management help the managers in meeting changing environment requirements because they can be modified according to the changes taking place in the environment, e.g. the principle of division of work has now been extended to the entire business. Therefore, companies are focusing on their competency and outsourcing non-core business.<\/p>\n
Question 41.
\nExplain how principles of management:
\n(i) help the managers in taking scientific decisions, and
\n(ii) provide the managers with useful insights into real world situations. (All India 2012)
\nAnswer:
\n(i) Scientific decisions The knowledge of management principles enables managers to learn the cause and effect relationship between variables operating in the organisation. They are able to develop a scientific and objective approach towards problem solving and decision-making.<\/p>\n
(ii) Provide the manager with useful insight into reality Management principles act as guidelines for the managers. These principles improve knowledge, ability and understanding of managers under various managerial situations. The effects of these principles help the managers to learn from their mistakes.<\/p>\n
Question 42.
\nName and explain the technique of scientific management which helps in establishing interchangeability of manufactured parts and products. (All India 2010: Delhi 2010)
\nAnswer:
\nStandardisation is the process of setting standards for every business activity process, raw materials, time, product and machinery.
\nTaylor advocated the standardisation of tools, and equipment, cost system and several other items.
\nThe objectives of standardisation are:<\/p>\n
\n- To reduce a given line or product to fixed types.<\/li>\n
- To establish interchangeability of manufactured parts and products.<\/li>\n
- To establish quality standards.<\/li>\n
- To establish performance standards of men and machines.<\/li>\n<\/ul>\n
Question 43.
\nName and explain the principle of management which requires judicious application of penalties by the management. (All India 2010; Delhi 2010)
\nAnswer:
\nDiscipline According to Fayol, discipline is obedience, application and outward mark of respect. It is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.<\/p>\n
<\/p>\n
Question 44.
\nName and explain the principle of management in which workers should be encouraged to develop and carry out their plans for improvement in the organisation. (Delhi (C) 2010)
\nAnswer:
\nInitiative According to Fayol, ‘Initiative means taking the first step with self motivation, it is thinking out and executing the plan’. It is one of the traits of an intelligent person. Initiative should be encouraged because employees get satisfaction when they are allowed to take initiative. But it does not mean going against the established practices of the company for the sake of being different.<\/p>\n
Question 45.
\nState any four or five features of principles of management. (All India 2019,2015; Delhi 2019,2015: Compartment 2012)
\nOr
\nExplain any five characteristics which reflect the nature of principles of management. (Delhi (C) 2010)
\nAnswer:
\nManagement principles are broad and general guidelines for decision-making and behaviour. Following features highlight the characteristics of management principles:
\n(i) Universal application Management principles are applied in every situation where the objectives are attained through group efforts. All social, economic, political or ‘ religious organisations apply management principles for their successful operations. Every organisation must make the best possible use of its available resources by the application of management principles alongwith managerial functions such as planning, organising, staffing, directing and controlling.<\/p>\n
(ii) Flexibility: The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to do so.<\/p>\n
(iii) General statements: Management principles are concerned with human behaviour which cannot be tested under laboratory conditions. Human behaviour cannot be predicted accurately. Therefore, management principles are not as exact as the principles of physical science.<\/p>\n
(iv) Influencing human behaviour Human element is an essential factor of production. It activates and extracts work from other factors also. Each person is different from other as regards to his ability, knowledge, skills, social status, attitudes and ideologies. Management is concerned with the integration of individual efforts.<\/p>\n
(v) Cause and effect relationship Management principles also form a cause and effect relationship. It indicates the consequences of certain actions or inactions in the business, e.g. if wages are paid on piece rate system, the quantity of work will increase but the quality will suffer. The principle of unity of command will avoid confusion, duplication and overlapping of work.<\/p>\n
Question 46.
\nState any four points which highlight the importance of principles of management. (All India 2019, 2015)
\nOr
\nWhat is meant by principles of management? State any three points of their importance. (Delhi 2015)
\nOr
\nExplain how principles of management:
\n(i) help in optimum utilisation of resources and effective administration and
\n(ii) help in the thoughtful decision-making. (Foreign 2012)
\nAnswer:
\nManagement principles are essential for the successful running of business organisation. These principles are guidelines to management. They highlight the areas where the management should pay immediate attention. These principles simplify the process of management, increase the overall efficiency of management and help in the achievement of objectives.<\/p>\n
The significance of management principles can be summarised as follows:
\n(i) Provide the manager with useful insight into reality Management principles act as guidelines for the managers. These principles improve knowledge, ability and understanding of managers under various managerial situations. The effects of these principles help the managers to learn from their mistakes.<\/p>\n
(ii) Optimum utilisation of resources Several principles of management aim at optimum utilisation of all types of resources for the attainment of organisational goals, e.g. principles of division of work, discipline, unity of direction, order, etc facilitate better utilisation of human efforts and physical resources.<\/p>\n
(iii) Scientific decisions The knowledge of management principles enables managers to learn the cause and effect relationship between variables operating in the organisation. They are able to develop a scientific and objective approach towards problem solving and decision-making.<\/p>\n
(iv) Meeting changing environment requirements Every businessman has to cope up with the changes that are taking place in the business environment. Management principles train the managers to implement the changes in right direction and at right level in the organisation.<\/p>\n
(v) Fulfilling social responsibility A manager is able to achieve efficiency and economy in the activities of his enterprise by applying management principles. These principles are aimed at maximising profits without loss of social value. In other words, management principles seek to ensure that the resources of the society are utilised fully and good quality products at fair prices are made available to society.<\/p>\n
Question 47.
\nExplain the following techniques of scientific management.
\n(a) Fatigue study
\n(b) Differential piece wage system (Delhi 2019)
\nAnswer:
\n(a) Fatigue study Fatigue in work is natural. When the worker is given continuous work, he will get tired and lose speed and efficiency. He needs rest after working for a few hours. Scientific management studies the nature of work to determine the standard time for finishing the job and to find out when the workers need rest. The nature, time and period of rest are pre-determined. Necessary changes should also be made in the working methods and conditions to reduce fatigue.<\/p>\n
(b) Taylor wanted to differentiate between efficient and inefficient workers. Under this system of wage payment, wages are paid on the basis of work done. According to him, higher rates were given to the workers who are producing standard products or more and lower rates were given to those who are producing less. e.g.
\nStandard output = 100 units\/day
\nWage rate 1 = \u20b9 10\/unit for standard output (100 units) or more
\nWage rate 2 = \u20b9 7\/unit for below standard output
\nWorker 1 = Output 99 units
\nWages = 99 \u00d7 7 = \u20b9 693
\nWorker 2 = Output 101 units
\nWages = 101 \u00d7 10 = \u20b9 1010
\nThus, a difference of \u20b9 317 (1,010 – 693), for different of 2 units is enough to motivate the inefficient work for more output.<\/p>\n
Question 48.
\nExplain the following principles of scientific management:
\n(a) Harmony, not discord
\n(b) Development of each and every person to his or her greatest efficiency and prosperity. (Delhi 2019)
\nAnswer:
\n(a) Taylor believed ‘management should share the gains with workers’. This has been emphasised by the principle of ‘harmony, not discord’, which also emphasised on mental revolution.<\/p>\n
Harmony, not discord The interests of the employers and employees should be fully harmonised so as to create a good relationship. Taylor emphasised that there should be complete harmony between the management and workers. This requires a transformation in the thinking of both, which can be achieved through mental revolution.<\/p>\n
Management should share the gains of the company with the workers. At the same time, workers should work and embrace changes. Taylor beleived in, that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice-versa.<\/p>\n
In the same way, Fayol’s principle of ‘remuneration of employees’ suggested that the employees compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Remuneration of employees According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees. Thus, we can say that Taylor’s and Fayol’s principles are mutually complementary.<\/p>\n
(b) Development of each and every person to his\/her greatest efficiency and prosperity Industrial efficiency depends upon the efficiency of workers and worker’s efficiency depends upon proper training and their proper selection. Taylor suggested that due care should be taken while selecting the employees and after selection, they must be given job according to their physical, mental and intellectual capabilities. Employees must be sent for training from time to time to update their knowledge. This will ensure greatest efficiency and prosperity for both workers and management.<\/p>\n
Question 49.
\nDeewan Ltd. is a multinational consulting company with its headquarters at Washington D.C. It hires young people from different countries of the world.
\nIt is a company in which people dream to work because of its work environment, pay and growth prospectus. The company has a culture of open communication and people of various nationalities work together in a discrimination free environment. The behaviour of managers of Deewan Ltd. emphasises kindliness and justice which ensures loyality and devotion of workers.
\nIt also promotes mutual trust and belongingness among team members. In this way, management of Deewan Ltd. is able to achieve its objectives by promoting teamwork. By doing so managers of Deewan Ltd. are following some principles of management. Identify and explain any two such principles. (Comportment 2018)
\nAnswer:
\nThe principles followed are:<\/p>\n
\n- Initiative<\/li>\n
- Esprit de corps<\/li>\n<\/ul>\n
<\/p>\n
Question 50.
\nSanket, after completing his entrepreneurship course from U.S.A. returned to India and started a coffee shop \u2018Fioma Coffee\u2019 in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor pupular. Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well. Riya, took a feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard time for processing order. She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, within a short period Riya was able to attract the customers. Identify and explain any two techniques of scientific management used by Riya to solve the problem. (All India 2017; Delhi 2017)
\nAnswer:
\nThe two techniques of scientific management used by Riya are:
\n(i) Time study It refers to determine the standard time required to complete a particular activity. The standard time is determined on the basis of average time taken to complete the work. This study is conducted with the help of a stop watch. The main objective of this study is to get the estimated figure of labour cost to determine the number of required workers and to decide the suitable incentive plan.<\/p>\n
(ii) Simplification It helps in eliminating unnecessary diversity of products and thus, results in saving cost. It aims at eliminating superfluous varieties, sizes and dimensions. It leads to reduction in wastage of inventories, fuller utilisation of equipment and increased turnover.<\/p>\n
Question 51.
\nPrinciples of Taylor and Fayol are mutually complementary. One believed that management should not close its ears to constructive suggestions made by the employees while the other suggested that a good company should have an employee suggestion system, whereby suggestions which result in substantial time or cost reduction should be rewarded.
\nIdentify and explain the principles of Taylor and Fayol referred in the above para. (Delhi 2014)
\nAnswer:
\nCooperation and individualism Management should not close its ears to constructive suggestions made by the employees, is related with the principle of Taylor, i.e. ‘cooperation not individualism’. This principle is an extension of principle of harmony. Competition should be replaced by cooperation. Management and workers both should realise that they need each other. For this, management should entertain the constructive suggestions of employees and at the same time, workers should also cooperate with management.<\/p>\n
Initiative Another principle is related with Fayol, i.e. ‘initiative’ in which he suggested that employees at all levels should take initiatives or actions without any force or boundations. This will help to motivate them and they will work hard for the betterment of the organisation. He stressed that a good company should have an employee suggestion system where by initiatives\/ suggestions which result in substantial cost\/time reduction should be awarded.<\/p>\n
Question 52.
\nPrinciples of Taylor and Fayol are mutually complementary. One believed that the 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.
\nIdentify and explain the principles of Fayol and Taylor referred to in the above para. (All India 2014)
\nAnswer:
\nTaylor believed ‘management should share the gains with workers’. This has been emphasised by the principle of ‘harmony, not discord’, which also emphasised on mental revolution.<\/p>\n
Harmony, not discord The interests of the employers and employees should be fully harmonised so as to create a good relationship. Taylor emphasised that there should be complete harmony between the management and workers. This requires a transformation in the thinking of both, which can be achieved through mental revolution.<\/p>\n
Management should share the gains of the company with the workers. At the same time, workers should work and embrace changes. Taylor beleived in, that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice-versa.<\/p>\n
In the same way, Fayol’s principle of ‘remuneration of employees’ suggested that the employees compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Remuneration of employees According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees. Thus, we can say that Taylor’s and Fayol’s principles are mutually complementary.<\/p>\n
Question 53.
\nPrinciples of Taylor and Fayol are mutually complementary. One believed that the management should scientifically select the person and the work assigned should suit his\/her physical and intellectual capabilities, while the other suggested that the work can be performed more efficiently if divided into specialised tasks. Identify and explain the principles of Fayol and Taylor referred to in the above para. (Foreign 2014)
\nAnswer:
\nThe principle of Fayol referred to in the above para is division of work. Division of work Every employee should be assigned only one type of work. It means that total work is divided into small tasks\/jobs and a trained specialist performs each job. The objective of division of labour derive the benefits from the principle of specialisation which can be applied to all work.<\/p>\n
For example, publishing of a book involves several operations like computer typing of text material, proof reading, printing, binding, etc. All the operations are performed by different people who are experts in their respective field.<\/p>\n
The principle of Taylor referred to in the above para is development of each and every person to his\/her greatest efficiency and prosperity. Development of each and every person to his\/her greatest efficiency and prosperity Industrial efficiency depends upon the efficiency of workers and worker’s efficiency depends upon proper training and their proper selection. Taylor suggested that due care should he taken while selecting the employees and after selecti on, they must be given job according to their physical, mental and intellectual capabilities. Employees must be sent for training from time to time to update their knowledge. This will ensure greatest efficiency and prosperity for both workers and management.<\/p>\n
Question 54.
\nExplain \u2018harmony not discord\u2019 as a principle and \u2018fatigue study\u2019 as a technique of scientific management. (Comportment 2013)
\nAnswer:
\nTaylor believed ‘management should share the gains with workers’. This has been emphasised by the principle of ‘harmony, not discord’, which also emphasised on mental revolution.<\/p>\n
Harmony, not discord The interests of the employers and employees should be fully harmonised so as to create a good relationship. Taylor emphasised that there should be complete harmony between the management and workers. This requires a transformation in the thinking of both, which can be achieved through mental revolution.<\/p>\n
Management should share the gains of the company with the workers. At the same time, workers should work and embrace changes. Taylor beleived in, that prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice-versa.<\/p>\n
In the same way, Fayol’s principle of ‘remuneration of employees’ suggested that the employees compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Remuneration of employees According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reasonable. It should be satisfactory to both employers and employees. Thus, we can say that Taylor’s and Fayol’s principles are mutually complementary.<\/p>\n
Fatigue study:
\nFatigue in work is natural. When the worker is given continuous work, he will get tired and lose speed and efficiency. He needs rest after working for a few hours. Scientific management studies the nature of work to determine the standard time for finishing the job and to find out when the workers need rest. The nature, time and period of rest are pre-determined. Necessary changes should also be made in the working methods and conditions to reduce fatigue.<\/p>\n
Question 55.
\nExplain \u2018science, not rule of thumb\u2019 as a principle and \u2018time-study\u2019 as a technique of scientific management. (compartment 2013)
\nAnswer:
\nScience, not rule of thumb:
\nTaylor has emphasised that in scientific management, organised knowledge should be applied, which will replace the rule of thumb. Scientific investigations should be used for taking managerial decisions instead of making the decisions on opinions, intuitions, estimates, prejudices, likes and dislikes, etc. Under scientific management, decisions are made on the basis of facts developed by the application of scientific methods.<\/p>\n
Time study:
\nTime study It refers to determine the standard time required to complete a particular activity. The standard time is determined on the basis of average time taken to complete the work. This study is conducted with the help of a stop watch. The main objective of this study is to get the estimated figure of labour cost, to determine the number of required workers and to decide the suitable incentive plan.<\/p>\n
Question 56.
\nExplain the technique of scientific management, i.e. the extension of principle of division of work and specialisation. (Delhi 2012)
\nOr
\nExplain the technique of scientific management which separates the planning and execution work. (Foreign 2012)
\nAnswer:
\nFunctional foremanship It is an extension of the principles of division of work and specialisation. The term, functional foremanship means separation of planning from execution. Each worker is supervised by various specialists. For this, Taylor suggested that under the factory manager, there is a planning incharge and a production incharge. The main function of the planning incharge is to plan all aspects of a job to be performed.<\/p>\n
Under planning incharge, following four personnel are appointed:<\/p>\n