{"id":177212,"date":"2022-09-03T12:09:18","date_gmt":"2022-09-03T06:39:18","guid":{"rendered":"https:\/\/www.cbselabs.com\/?p=177212"},"modified":"2022-09-03T12:09:18","modified_gmt":"2022-09-03T06:39:18","slug":"class-12-business-studies-chapter-2-important-questions","status":"publish","type":"post","link":"https:\/\/www.cbselabs.com\/class-12-business-studies-chapter-2-important-questions\/","title":{"rendered":"Principles of Management Class 12 Important Questions and Answers Business Studies Chapter 2"},"content":{"rendered":"

We have given these 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>\n

Important 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

\"Principles<\/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

\"Principles<\/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

\"Principles<\/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\"Principles<\/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

\"Principles<\/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