NCERT Solutions for Class 12 Business Studies Chapter 2 | Principles and Functions of Management

Business Studies NCERT

Short Answer Type Questions
  What makes principles of management flexible?

  State the main objective of time study.

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

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

  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.

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

Short Answer Type Questions
   How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.

   Define scientific management. State any three of its principles.

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

   Explain any four points regarding significance of principles of management.

   Explain the principle of ‘Scalar chain’ and gang plank.

   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?

Long answer type question
   Explain the principles principles of scientific management given/propounded by Taylor.

  Explain the following principles of management given by Fayol with examples.

  Unity of direction
  Esprit de corps
  Centralisation and decentralisation

   Explain the technique of ‘Functional Foreman ship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.

  Discuss the following techiques of Scientific Work Study:

  Time Study
  Motion Study
  Fatigue Study
  Method Study
  Simplification and standardisation of work

   Discuss the differences between the contributions of Taylor and Fayol.

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

   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.

  Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
  Explain these principles in brief.
  What steps should the company management take in relation to the above principles to restore the company

   (Further information related to the above question 6) 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 —
• The company should introduce scientific management with regard to production.
• Production Planning including routing, scheduling, dispatching and feedback should be implemented.
• In order to separate planning from operational management ’Functional foremanship’ should be
• ‘Work study’ should be undertaken to optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• 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 6 above.)

a. Do you think that introduction of scientific management as recommended by M 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.

Multiple Choice Questions
  Principles of Management are not

  not Flexible
  not absolute
  not behavioural

  How are principle of management formed?

  In a laboratory
  By experience of managers
  By experience of customers
  By propagation of social scientists

   The principles of management are significant because of

  Increase in efficiency
  Optimum utilisation of resources
  Adaptation to changing technology

   Henri Fayol was an

  Social scientist
  Mining engineer
  Production engineer

   Which of the following statement best describe the principle of 'Division of work'?

  Work should be divided into small tasks
  Labour should be divided
  Resources should be divided among jobs
   It leads to specialisation

  He/She keeps machines,materials,tools etc. ready for operations by concern workers'. Whose work is described by this sentence under functional foreman ship.

  Repair Boss
  Gang Boss
  Instruction Card Clerk
   Route Clerk

  Which one of the following is not principle of management given by Taylor?

  Science,not rule of thumb
  Functional foremen ship
  Maximum,not restricted output
  Harmony,not discord

   Management should find 'one best way' to perform a task. Which technique of scientific management is defined in this sentence?

  Time study
  Motion study
  Fatigue study
  Method study

   Which of the following statement best describes "Mental revolution"?

   It implies change of attitude
  The management and the workers should not play the game of one c
  Both management and workers require each other
  Workers should be paid more wages

   Which of the following statement of 'false' about Taylor and Fayol?

  Fayol was a mining engineer whiereas Taylor was mechanical engineer
  Fayol's principles are applicable in specialised situation whereas Taylor's principles have universal application
  Fayol's principles were formed through personal experience whereas Taylor's principles were formed through experimentation
  Fayol's principles are applicable at the top level of management whereas Taylor's principles are applicable at the shop floor.

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