business studies class 12 principles of management case study

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Case Study Chapter 2 Principles of Management

Please refer to Chapter 2 Principles of Management Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 2 Principles of Management

Read the source given below and answer the following questions : Taylor suggested that method of production should not be decided by rule of thumb method but all the methods must be tried in the organisation and the one which brings maximum benefits with minimum cost must be selected. To determine the best way there are certain parameters right from procurement of raw materials till the final product is delivered. Taylor developed the concept of assembly line by using method study. The objective of method study is to minimise the cost of production and maximise the quality and customer satisfaction. Ford motors used this concept very successfully.

Questions :

Question. Taylor developed which concept by using method study? (a) Six sigma (b) Assembly line (c) Just in time manufacturing (d) None of the above

Question. As per above para which company used this concept successfully? (a) Nike (b) Adidas (c) Ford (d) Hyundai

Question. The objective of method study is (a) to differentiate between efficient worker and inefficient worker. (b) to maximise production. (c) to minimise cost, maximise production and maximise quality. (d) none of the above

Question. There is only one best method to do a thing is suggested in which scientific principle? (a) Science not rule of thumb (b) Harmony, not discord (c) Cooperation, not individualism (d) Development of workers to their greatest efficiency and prosperity

Read the source given below and answer the following questions. Ram is a class twelfth commerce student in a reputed school in Punjab. Mohan is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B.Sc course. During vacations when Mohan comes home, Ram shows him the businessstudies project that he is preparing on the topic ‘Principles of Management’. Mohan tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principles different from those of pure science.

Question. Management principles are taught in the MBA colleges also. This indicates which aspect of nature of management? (a) Management as Science (b) Management as Art (c) Management as Profession (d) Management as both science and art

Question. Management principles and scientific principles are : (a) Same (b) Different from each other (c) Both (a) and (b) (d) None of the above

Question. Management principles are derived or formed by (a) will and wish of Manager (b) overnight (c) deep observation and repeated experiments (d) none of the above

Question. Outline the feature of Principles of Management highlighted above. (a) Pervasive (b) Contingent (c) Behavioural (d) None of the above

Read the source given below and answer the following questions. Alpha Ltd. was engaged in business of garment manufacturing and selling its products under a popular brand. The demand for their product was increasing. In order to keep the market share in short run, the company directed its existing workforce to work overtime but this resulted in many problems. Due to increasing pressure of work the efficiency of workers declined. Sometimes workers worked under more than one superior. The departments which were producing one product were asked to produce more than one type of products. This resulted in lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of team was also reducing. Workers were feeling cheated and their morale was declining. The quality of garments started declining and market share decreased.

Question. “Workers were feeling cheated and their morale was declining”. This is related to which principle? (a) Principle of Division of Work (b) Principle of Equity (c) Principle of Unity of Command (d) Principle of Initiative

Question. “Departments which were producing one product were asked to produce more than one type of products”. This is violation of which principle? (a) Principle of Discipline (b) Principle of Unity of Direction (c) Principle of Division of Work (d) None of the above

Question. “The spirit of team was also reducing”. This indicates violation of which principle ? (a) Principle of “Espirit De Corps” (b) Principle of Unity of Command (c) Principle of Unity of Direction (d) Principle of Discipline

Question. “Sometimes workers worked under more than one superior.” This is violation of which principle of management? (a) Principle of Discipline (b) Principle of Unity of Command (c) Principle of Unity of Direction (d) Principle of Equity

Read the source given below and answer the following questions : The principles of management are intended for all types of organisations, business as well as non-business, small as well as large, public as well as private sector, manufacturing as well as service sectors. They are not rigid prescriptions , which have to be followed absolutely. They can be modified by the manager as per the prevailing situation. Adherence to these principles adds to managers ’ knowledge, ability and understanding of managerial situations and circumstances. It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly . These principles of management hold great relevance and managers should try to follow them as far as possible . Often certain principles of management are violated and the entire organization suffers. For example, Raman is working as a production manager in CFL Ltd. which manufactures CFL bulbs. His subordinate Arjun designed a plan for cost reduction but it was not welcomed by Raman. Another employee gave some suggestions for improvement in design but it was also not appreciated by Raman. This resulted in dissatisfaction among the employees which further resulted in poor performance of the employees. On the basis of the above paragraph answer the following questions:

Question. ‘It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly’. According to this statement, the principles of management are important because they help in  ………………… (a) Meeting changing environment requirements (b) Optimum utilization of resources and effective administration (c) Providing managers with useful insights into reality (d) Fulfilling social responsibility

Question. As Raman did not welcome the suggestions of other employees, which principle of management is violated by him? (a) Discipline (b) Order (c) Unity of direction (d) Initiative

Question. Identify the nature of principle of management discussed in the given para. (Choose the correct alternative) (a) General guidelines (b) Universal applicability (c) Formed by practice and experimentation (d) Contingent

Question. Identify the nature of management principles when it is said that principles of management can be modified as per the prevailing situation. (Choose the correct) (a) Flexible (b) Contingent (c) Behaviour (d) Absolute

Read the source given below and answer the following questions : Principles of Taylor and Fayol are mutually complimentary. One believed that 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. Taylor also developed certain techniques of scientific management which aimed at improving the performance of the employees. One of his techniques aimed at differentiating between efficient and inefficient workers. The purpose behind this technique is to reward efficient workers and motivate inefficient workers to perform better. 

Question. Which principle of scientific management advocates complete agreement between the managers and workers? (a) Harmony not discord (b) Cooperation not individualism (c) Science not rule of thumb (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Which principle of Henri Fayol is being referred to in the above paragraph? (Choose the correct alternative) (a) Discipline (b) Order (c) Equality (d) Remuneration of employees

Question. ‘One of his techniques aimed at differentiating between efficient and inefficient workers’. Name the technique of scientific management reflected in the given statement. (Choose the correct alternative) (a) Functional foremanship (b) Method study (c) Differential piece wage system (d) Standardisation and simplification of work

Question. Which principle of scientific management is the extension of the principle ? (Choose the correct alternative) (a) Harmony not discord (b) Cooperation not individualism (c) Science not rule of thumb (d) Development of each and every person to his/her greatest efficiency and prosperity

Read the source given below and answer the following questions : The application of principles of management is dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per the requirements .These principles are logical rather than blind faith. They are based on objective assessment of the situation. Management decision taken on the basis of principles are free from bias and prejudice. Managers often try to apply these principles in various day to day situations. violation of these principles can result in negative consequences in the organization. For example, Sushma and Suresh are working  in a Multinational company at the same level. Both are working hard and are happy with their employer. Suresh had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees knew about it. At the time of performance appraisal, the performance of Sushma was judged better than Suresh. Even then their boss Nikhil decided to promote Suresh stating that being a female Sushma will not be able to handle the complications of a higher post. This resulted in a great deal of dissatisfaction for Sushma. Nikhil gave priority to his own interest over the interest of the organization. Since he personally liked Suresh more than Sushma, hence he promoted Suresh instead of Sushma, ignoring the overall interest of the organization. On the basis of the above paragraph answer the following questions:

Question. “The application of principles of management is dependent upon the prevailing situation at particular point of time”. What is the nature of principles of management that is depicted by the above statement? (Choose the correct alternative)  (a) Universal applicability (b) Flexible (c) Contingent (d) Mainly behavioural

Question. ‘Decisions based on management principles are free from bias and prejudice’. This statement shows which importance of principles of management. (Choose the correct alternative) (a) Scientific decisions (b) Fulfilling social responsibility (c) Providing managers with useful insights into reality (d) Meeting changing environment requirements

Question. ‘Nikhil gave priority to his own interest over the interest of the organisation’. Which one of the following principles have been violated in the given case.  (a) Order (b) Equity (c) Discipline (d) Initiative

Question. Violation of which principle of management prompted Nikhil to further violate the managerial principle identified (a) Division of work. (b) Unity of direction (c) Subordination of individual interest to general interest (d) Centralization and decentralization

Read the source given below and answer the following questions : Sakaar Foundation is an NGO (Non-Government organization) working to improve thelives of children with medical needs, the homeless and victims of natural disasters. Apart from donations in Cash, they collect dry ration, old clothes, shoes, toys, books, medicines, etc. from donors. At Sakaar Foundation’s office in Lucknow the material collected is segregated, classified and put in shelves and boxes that are numbered systematically. There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is a part of a particular team, depending on their competency and training. Each volunteer becomes specialized in their respective field , leading to efficient utilization of human effort. The management of Sakaar Foundation does not close its ears to any constructive suggestion made by the volunteers. There is an equal division of work and responsibility between volunteers and management. All day long the management works side by side with the volunteers helping ,  encouraging and smoothing the way for them.

Question. _____________ is considered as the father of scientific management. (Fill up the blank with the correct alternative) (a) Peter Drucker (b) F.W.Taylor (c) Henri Fayol (d) Abraham Maslow

Question. Identify the principle of scientific management adopted by Sakaar Foundation in the above case. (Choose the correct alternative)  (a) Science not rule of thumb (b) Cooperation not individualism (c) Harmony not discord (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Which principle of management means “a specific place for everything and everyone” as adopted by Sakaar Foundation? . (Choose the correct alternative) (a) Discipline (b) Order (c) Initiative (d) Scalar chain

Question. Identify the importance of principles of management that can be linked with the given case. (Choose the correct alternative) (a) Fulfilling social responsibility (b) Optimum utilization of resources and effective administration (c) Meeting changing environment requirements (d) Providing managers with useful insights into reality

Read the source given below and answer the following questions : Vishesh completed his MBA at a reputed business school in Lucknow. He was impressed by the principles and techniques of scientific management developed by F.W.Taylor. On completing his MBA, he wanted to apply Scientific Management in his family’s business of fast food chain of restaurants named ‘Burger Mania’. His main goal was to reduce costs with increased output. To begin with, he wanted to develop a standard method which would be followed throughout the organization. So, he investigated traditional methods through work study and unified the best practices. The standard method,i.e., the best way of doing the job was then developed taking into account all parameters right from the procurement of raw materials till the delivery of the final product to the customer. Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency. For this, he set up a special training unit called ‘Hamburger’ in Bengaluru where the workers were given the required training to learn the best method. At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements. The standard time and other parameters were determined on the basis of work study and Vishesh rewarded the workers for meeting the standard output . Now, ‘Burger Mania’ has standardized processes, raw material, time, machinery, trained staff and working conditions that ensure that the food they send out to their customers has the same high standards of excellence and level of quality in every chain or franchise. The application of Scientific Management to every aspect of restaurant operations led to ‘Burger Mania’s’ widespread success.

Question. Identify the principle of Scientific Management that helped Vishesh in investigating the traditional methods through work study and unifying the best practices. (Choose the correct alternative) (a) Science not rule of thumb (b) Method study (c) Harmony not discord (d) Cooperation not individualism

Question. ‘Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency . ’ Identify the principle of Scientific Management mentioned in the given statement. (a) Cooperation not individualism (b) Stability of personnel (c) Harmony not discord (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Identify the technique of Scientific Management used by Vishesh to reward the workers for meeting the standard output. (a) Time study (b) Motion study (c) Differential piece system (d) Functional foremanship

Question. ‘At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements.’ Identify the technique of Scientific Management mentioned in the given statement. (a) Method study (b) Motion Study (c) Standardization and simplification of work (d) Time study

Read the source given below and answer the following questions : Amar is the Managing director in a garment manufacturing company. He is an experienced manager and firmly believes in application of principles of management in day to day managerial situations. He believes that management principles are flexible to adapt to dynamic business environment. He believes in producing more and better work for the same effort. He always hires specialists for various job positions. This results in efficient and effective output. Hence the organization has separate departments for finance, marketing, production and human resource. Being a management expert, Amar believes in the concept of having one and only one boss for every individual employee. He always aims at avoiding dual subordination within the organization. Under his direction and supervision, his company has achieved new heights within a short span of time. As the Managing director, he formulates policies that aims at minimizing employee turnover and maintaining organizational efficiency. Hence his organization selects personnel after due and rigorous procedure, and once a person is selected, he is kept at his post for a minimum fixed tenure. This helps in improving the overall efficiency of the organization.

Question. Identify which importance of principles of management is mentioned here? (a) Providing managers with useful insights into reality (b) Meeting changing environment requirements (c) Fulfilling social responsibility (d) Scientific decisions

Question. ‘He always aims at avoiding dual subordination within the organization’. Name the principle of management that aims at avoiding dual subordination. (a) Order (b) Equity (c) Unity of direction (d) Unity of command

Question. Identify the principle of management that suggests setting up of separate departments for finance, marketing, production etc. within an organization. (a) Discipline (b) Centralization and Decentralisation (c) Division of work (d) Authority and responsibility

Question. “As a Managing Director, he formulates policies that aim at minimizing employee turnover and maintaining organizational efficiency”. Which principle of management Amar is following? (a) Order (b) discipline (c) Equity (d) Stability of personnel

Read the source given below and answer the following questions : After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his /her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount , whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive with in a year. Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. 

Question. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here? (a) Discipline (b) Order (c) Remuneration to Employees (d) Unity of Direction

Question. Aditi tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. Which principle is being violated here? (a) Discipline (b) Order (c) Equity (d) None of these

Question. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here? (a) Centralization and Decentralization (b) Division of work (c) Discipline (d) Order

Question. “The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority”. Identify the principle of Management being followed here: (a) Centralization and Decentralisation (b) Authority and Responsibility (c) Unity of Command (d) Unity of Direction

Read the source given below and answer the following questions : Ramesh is day and night involved in the organizing of his business. He has given job to every employee based upon his capability and experience. As there has been proper division of work and systematic allocation of tasks the productivity is increasing. The size of the company has increased in the recent past. The related activities which are similar in nature are grouped together. Everything was going well in the organisation until recently. The company has recently seen a deficit of exchange of information across functionally different departments. 

Question. Now the related activities which are similar in nature are grouped together. Which step of organising is highlighted in the above case: (a) Identification and division of work (b) Departmentalisation (c) Assignment of duties (d) Establishing authority relationship

Question. The company has recently seen a deficit of exchange of information across functionally different departments. Which one disadvantage of functional structure is highlighted above: (a) Function allocative (b) Conflict of interests (c) Inflexibility (d) Problems in coordination

Question. Which importance of organizing is highlighted in be above case: (a) Optimum utilisation of resources (b) Effective administration (c) Benefits of specialisation (d) Expansion and growth

Question. Identify the type of organisational structure which facilitates occupational specialisation. (a) Functional structure (b) Horizontal structure (c) Network structure (d) Divisional structure

Read the source given below and answer the following questions : Ganesh Leathers is a shoe manufacturing company. The firm has decided to increase the productivity of its workers. For this the firm has chalked out a plan. It will be hiring operational managers to work at the lower levels of management. It has decided to keep eight managers over a group of workers. Thus every worker has to report to all these eight managers. The managing director of the company Mr. Ganesh Tiwari is of the view that the principles of management are guidelines to action but do not provide readymade straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. According to him it is necessary to differentiate between efficient and inefficient workers. Hence, he introduced specific rate of wage payment for those who performed above standard and for those who performed below standard. The basic idea behind is to improve the productivity of all the workers.

Questions : Question. Which technique of scientific management is employed by Ganesh leathers by keeping eight managers. (a) Time study (b) Motion study (c) Functional foremanship (d) Standardisation of work

Question. Which principle of Henri Fayol is followed by the company in the above case. (a) Unity of direction (b) Unity of command (c) Initiative (d) Discipline

Question. Which nature of principles of management is mentioned in the given para. (a) Universal applicability (b) Flexibility (c) General guidelines (d) Contingent

Question. Which technique of scientific management is used by the firm to differentiate between efficient and inefficient workers. (a) Time study (b) Motion study (c) Differential piece rate system (d) method study

Read the source given below and answer the following questions : Care Ltd. is a well known cement company in India. It is able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover has increased manifolds over the years. The rate of profitability of the business is also creditable. The employees of the company are happy and satisfied. The overall pay and compensation paid by the company is fair to both- employees and the organisation. There is complete cooperation between the workers and management. The spirit of competition has been replaced by the spirit of cooperation within the organisation. As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the rural areas. 

Questions : Question. ‘It is able to earn adequate revenue to cover costs’.the company in the given statement. (a) Growth (b) Survival (c) Profit (d) Diversification

Question. Which importance of management is discussed in the given case. (a) Management increases efficiency (b) Management helps in the development of society (c) Management creates a dynamic organisation (d) Management is an intangible force

Question. Name the principle of Fayol followed by the company in the given case. (a) Discipline (b) Order (c) Remuneration of employees (d) Unity of direction

Question. Which principle of scientific management is followed by the company in the given case: (a) Scientific not rule of thumb (b) Harmony not discord (c) Cooperation not individualism (d) Development of each and every person to his or her greatest efficiency and prosperity.

Read the source given below and answer the following questions : Rajat Joined as a CEO of Bharat Ltd. a firm manufacturing computer hardware. On the first day he addressed the employees. He said that he believed that a good company should have an employee suggestion system and he wished to minimize employee turnover to maintain organisational efficiency. He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with sternly to send the message that everyone was equal in the eyes of management . Also that he would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimize need for using penalties. He told all present that the interests of the organization should take priority over the interests of any one individual employee.

Questions : Question. Identify the principal of management in the following line. “ He said that he believed that a good company should have an employee suggestion system” (a) Unity of command (b) Unity of direction (c) discipline (d) initiative 

Question. Identify the principal of management in the following lines “Which would give rise to a spirit of mutual trust and belongingness among team members. (a) Discipline (b) Unity of command (c) Initiative (d) Esprit de corps. 

Question. Identify the principal of management in following line. “He wished to minimize employee turnover to maintain organizational efficiency.” (a) Stability of personnel (b) Discipline (c) Centralization and Decentralization (d) Remuneration of employees 

Question. Identify the principal of management in the following lines. “He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties.” (a) Initiative (b) Equity (c) Discipline (d) Esprit de corps.

Read the source given below and answer the following questions : Radhika opens a jewellery showroom in Jaipur after completing a course in jewellery designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/ her specialised job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discounts rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked the put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.

Question. Identify the principal of management in the following lines. “Therefore after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. (a) Discipline (b) Initiative (c) Scalar chain (d) Remuneration 

Question. Which principle is violated in the following lines. “However when it comes to setting the conflicts among her employees, She tends to be more biased towards her female employees.” (a) Discipline (b) Equity (c) Division of work (d) Justice 

Question. Identify the principal of management in “She divided the work into small tasks and each employee is trained to perform his/her specialised job” (a) Unity of command (b) Unity of direction (c) Division of work (d) Discipline 

Question. Identify the principal “The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority” (a) Division of work (b) Discipline (c) Initiative (d) Centralisation and decentralisation 

Read the source given below and answer the following questions : As students of a management course Karan and Kunal were asked to prepare a project report on applicability of principles of management in real business situations. In order to conduct the survey Kunal had selected an outlet of a popular chain of fast food restaurant whereas Karan visited a nearby department store. When Kunal presented his report to class, Karan realised that their observations were matching on various grounds. In both the business units, work is divided into small tasks and each is performed by a trained employee. A set of rules are predetermined and communicated to employees for compliance and these is a fixed place for every thing and all employees have been allotted individual space. Moreover, the manager encourage a spirit of mutual trust and belongingness among the employees so that need for imposing penalties is reduced.

Question. Identify the principles of management in the following lines: “There is a fixed place for everything and all employees have been allotted individual space” (a) Unity of direction (b) Order (d) Scalar chain (d) Equity 

Question. Identify the principal of management in the following lines “work is divided into small tasks and each is performed by a trained employee.” (a) Unity of direction (b) Unity of command (c) Division of work (d) Initiativ

Question. Identify the principal of management in following lines “A set of rules are predetermined and communicated to the employees for compliance.” (a) Discipline (b) Scalar chain (c) Unity of command (d) Unity of direction 

Question. Identify the principle of management in the following lines: “Managers encourage a spirit of mutual trust and belongingness among the employees” (a) Unity of command (b) order (c) Equity (d) Esprit de corps 

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Q. 1. In your school, you observe that books are kept in office, chalks in the library and office records in the staff room.

• Which principle of management is violated here and why?
• How will that affect the achievement of school objectives?
• As a manager, what steps will you take to rectify the shortcomings?           (3 marks)
• Disparate storage of resources violates "Unity of Direction" principle.
• Breeds inefficiency: Staff waste time searching for materials, reducing productivity.
• Increases mismanagement risk: Resources may be misplaced or lost, disrupting school operations.
• Creates coordination challenges: Departments struggle to implement cohesive strategies.
• Solutions: Centralize resource management; designate storage areas; implement inventory control.
• Train staff on proper resource handling.
• Foster collaboration among departments.
• Benefits: Enhances efficiency, minimizes mismanagement risks, promotes unified direction towards achieving school objectives.

Q. 2. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day.  But he did not give him the authority of requisition tools and materials from the stores department.  Can the production manger blame the foreman if he is not able to achieve the desired target?  Explain briefly the principle relating to the situation.               (3 marks)

Ans.  No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and materials form the stores department.  Since he has no authority, he could not fulfill his responsibility.

In this case the principle of ‘Authority and Responsibility’ is violated.  Fayol suggested tht there must be a balance between authority and responsibility.  Authority and responsibility must go hand in hand.  Responsibility without adequate authority will make the subordinate ineffective, I.e., he will not be able to perform his duties properly.  At the same time giving authority without fixing responsibility may lead to misuse of of authority.

Q. 3. S oniya Ltd. was engaged in the business of manufacturing auto components.  Lately, its business was expanding due to increased demand for cars.  The competition was also increasing.  In order to keep its market share intact, the company directed its workforce to work overtime.  But this resulted in many problems.

Due to increased pressure of work the efficiency of workers declined.  Sometimes, the subordinates had to work for more than one superiors.  The workers were becoming indisciplined.  The spirit of teamwork, which had characterized the company previously, had begun to wane.

Identify any three principles of management (as given by Henry Fayol) which were begin violated, quoting the lines from the above case.             (3 marks)

Ans.  Three principles of management by Henry Fayol that were being violated in the case of Soniya Ltd.:

Unity of Command : "Sometimes, the subordinates had to work for more than one superiors."

• This violates the principle of unity of command, which states that an employee should receive orders from only one superior to avoid confusion and conflicting instructions.

Division of Work : "Due to increased pressure of work the efficiency of workers declined."

• The increased workload and pressure on workers suggest a lack of effective division of work, leading to decreased efficiency and productivity.

Esprit de Corps (Spirit of Teamwork) : "The spirit of teamwork, which had characterized the company previously, had begun to wane."

• This indicates a decline in the spirit of teamwork among employees, which violates the principle of esprit de corps. This principle emphasizes the importance of fostering harmony and unity among workers to achieve common objectives.

Q. 4. The production manager of Harsh Ltd. instructs a salesman to go slow in selling the product, where the marketing manager is insisting on fast selling to achieve the target.  Which principle of management is being violated in this case?                           (1 mark)

Ans.  Unity of command

Q. 5. Kanika and Priyanka are typists in a company having same educational qualifications.  Kanika is getting Rs. 16000 per month and Priyanka Rs. 10000 per month as salary for the same working hours.  Which principle of management is violated in this case.  (1 mark)

Ans.  Principle of equity

Q. 6. Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other departments.  Which principle of management is being overlooked?                    (1 mark)

Ans.  Principle of Scalar Chain.

Q. 7. The management and workers have entered into an agreement that workers will do overtime to cover up looses of the company.  In return, the manager will increase the wages.  But management later refused to increase the wages.  Name the principle violated in this situation.             (1 mark)

Ans.  Principle of discipline

Q. 8. In Simran Ltd., an employee has the objective of maximizing his salary, but the organizational objective is to maximize output at competitive cost.  There was some dispute on this for a while.  Eventually, the organization’s interest was given priority over employees’ interest.  Name the principle related to this situation.                                       (1 marks)

Ans.  Principle of subordination of individual interest to general interest.

Q. 9. Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing.  She has employed eleven persons in her showroom.  For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.  The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to given any further discount rests with Radhika as the final authority.  In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work.  In return she had promised to give them a special incentive within a year.  Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.  However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees.

In context of the above case:

• Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
• Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
• State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question.
• The various principles of management that are being applied by Radhika are listed below:
• Principle of Division of work:

“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”

• Principle of Centralization and Decentralization:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”

• Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a each bonus to each of these employees to honour her commitment.”

• The principle of management which is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”

• One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

Q. 10. Neeraj is selected for the post of software developer in an IT Company.  On the first day of his joining Mehul, his project manager tells Neeraj that during the course of his work he will come across many such opportunities which may temp him to misuse his powers for individual or family’s benefit at the cost of larger general interest of the company.  In such situations, he should rather exhibit exemplary behavior as it will raise his stature in the eyes of the company.  Also, for interacting with anyone in the company on official matters, he should adopt the formal chain of authority and communication.

• Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
• List any two values that Mehul wants to communicate to Neraj.
• Subordination of Individual Interest to General Interest:
• Scalar Chain:
• Self restraint

Q. 11. Davinder is a class twelfth commerce student in a reputed school in Punjab.  Satinder is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B. Sc course.  During vacations when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic ‘Principles of Management’.  Satinder tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice.  But he finds these principle different from those of pure science.

• Outline the concept of principles of management.
• Why does Satinder find the principle of management different from those of pure science?
• Why do the principles of management form the core of management in practice?

Explain by giving any two points highlighting the importance of principles of management.

• The principles of management serve as a broad and general guideline for the managerial decision making and action.
• Satinder finds the principles of management different from those of pure science because the management principles are not as rigit as principles of pure science.  This is due to the fact that they deal with the human behavior and thus, need to be applied creatively in the light of given situation.
• The importance of principles of management is described below:
• Providing managers with useful insights into reality:
• Optimum utilization of resources and effective administration:

Q. 12. Nutan Tiffin Box service was started in Mumbai by Mumbai dabbawalas.  The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at right time and place.  The service is uninterrupted even on the days of bad weather, political unrest and social disturbances.  Recently they have started online booking system through their website’ mydabbawals.com’.  owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business schools.  The Dabbawals operate in a group of 25-30 people along with a group pleader.  Each group teams up with other groups in order to deliver the tiffin on time.  They are not transferred on frequent basis as they have to remember the addresses of their customers.  They follow certain rules while doing trade-No alcohol during working hours; No leave without permission; Wearing of white cap & carrying ID cards during business hours.

Recently on the suggestion of a few self motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children.  They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later.

• State any one principle of management given by Fayol & one characteristic of management mentioned in the above case.
• Given any two values which the Dabbawalas want to communicate to the society.

Ans.   One principle of management given by Fayol that can be observed in the case of Mumbai dabbawalas is "Unity of Command." This principle states that an employee should receive orders from only one superior to avoid confusion and conflict. In the case of dabbawalas, each group operates under the leadership of a group leader (group pleader), ensuring clear direction and accountability within the group.

One characteristic of management mentioned in the above case is "Adaptability." Despite facing various challenges such as bad weather, political unrest, and social disturbances, the dabbawalas continue to provide uninterrupted service by adapting their strategies and operations to overcome these obstacles.

Two values that the Dabbawalas want to communicate to society are:

1. Social Responsibility : By implementing a plan to feed slum children with leftover food from customers' tiffins, the dabbawalas demonstrate their commitment to addressing social issues and contributing to the welfare of the less fortunate in society.

2. Reliability : The dabbawalas' consistent and efficient delivery service, even in adverse conditions, reflects their value of reliability. They strive to provide prompt and dependable service to their customers, earning their trust and satisfaction.

Q. 13. ‘Aapka vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities.  On its founders day a stage performance had to be put up.  A committee of ten prefects was constituted to plan different aspect of the function.  They all decided to use recycled paper for decoration.  There was a spirit of unit and harmony and all members supported each other.  With mutual trust and belongingness the programme was systematically planned and executed.  Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning and executing the programme.  He was so inspired by the success of the function that he asked his father to apply to same principle in his business.  His father replied that he was already using this principle.

• Identify the principle of management applied for the success of the programme.
• State any two features of management highlighted in the above para.
• Identify any two values which ‘Aapka Vidyalaya’ communicated to the society.

Ans.  The principle of management applied for the success of the program is "Unity of Purpose" or "Unity of Objective." This principle emphasizes the importance of aligning individual and group efforts towards the achievement of common goals.

Two features of management highlighted in the paragraph are:

Teamwork : The committee of prefects demonstrates effective teamwork by collaborating to plan and execute the function. There is a spirit of unity and harmony among the members, and they support each other to achieve their goals.

Systematic Planning and Execution : The program is systematically planned and executed by the committee of prefects. They use recycled paper for decoration, indicating a thoughtful and environmentally conscious approach to organizing the event.

Two values communicated to society by 'Aapka Vidyalaya' are:

Environmental Responsibility : By choosing to use recycled paper for decoration, 'Aapka Vidyalaya' demonstrates its commitment to environmental sustainability and responsibility. This value promotes awareness and action towards protecting the environment.

Holistic Development : 'Aapka Vidyalaya' emphasizes holistic development by encouraging a mix of curricular, co-curricular, and sports activities. This value reflects a commitment to nurturing students' overall growth and well-being, beyond academic achievements alone.

Q. 14. Nikita and Salman completed the MBA and started working in a multinational company at the same level. Both are working hard and are happy with their employer.  Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss.  All the employees in the organization knew about it.  At the time of performance appraisal the performance of Nikita was judged better than Salman.  Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of a higher post.

• Identify and explain the principle of management which was not followed by this multinational company.
• Identify the values which are being ignored quoting the liens the above para.               (5 marks)

Ans.  The principle of management that was not followed by this multinational company is "Impartiality" or "Fairness." This principle emphasizes that decisions and actions should be fair and unbiased, without favoritism or discrimination.

In this scenario, the boss, Mohammed Sharif, decided to promote Salman over Nikita despite Nikita's better performance. The reason cited for promoting Salman, based on gender stereotypes, indicates a lack of impartiality and fairness in the decision-making process. By allowing Salman's negative behavior to influence the promotion decision and discriminating against Nikita based on her gender, the company fails to uphold the principle of impartiality.

The values being ignored in this scenario are:

Fairness and Equality : The company's decision to promote Salman over Nikita based on gender stereotypes disregards the principles of fairness and equality. Nikita's better performance should have been the sole criterion for promotion, irrespective of her gender.

Integrity and Ethical Conduct : Salman's habit of backbiting and wrong reporting about his colleagues indicates a lack of integrity and ethical conduct. By promoting him despite his negative behavior, the company sends a message that unethical conduct is tolerated and even rewarded, undermining the values of integrity and ethical behavior in the workplace.

Q. 15.  Sigma Ltd. is a large company manufacturing electric motors.  The company has several departments – Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company set the target sale of 10 crore in a month.  To increase the sales, the marketing manager, Mr. Ishaan insists on offering 10% discount to customers.  But the finance manager, Mr. Mohak does not approve such discount as it would mean loss of revenue.  Because of dual subordination, the sales manager, Mr. Anshik could not achieve the sales target.

• Which concept of management Sigman Ltd. is lacking?  State it.
• Which principle of management has been overlooked by this company?   State it.
• Which principle of management has been overlooked by this company?  State it.           (6 marks)
• The company is lacking ‘ Coordination ’.

It is the process by which the activities of different departments are synchronized to ensure unity of action.

    2. Concept: Unity of Command

In Sigma Ltd., the absence of "Unity of Command" leads to dual subordination for the sales manager, Mr. Anshik.

Mr. Anshik faces conflicting directives from the marketing manager, Mr. Ishaan, who advocates for offering discounts to boost sales, and the finance manager, Mr. Mohak, who opposes the idea due to potential revenue loss.

This dual subordination hampers Mr. Anshik's ability to effectively achieve the sales target set by the CEO, Mr. Shashank, as he receives contradictory instructions from multiple superiors.

   3. Principle: Unity of Direction

In addition to lacking "Unity of Command," Sigma Ltd. also overlooks the principle of "Unity of Direction."

This principle emphasizes the importance of aligning all activities within the organization towards a common goal or objective.

While the CEO has set a sales target of 10 crore in a month, the conflicting opinions between the marketing manager and the finance manager regarding offering discounts create disunity in direction.

The marketing manager's proposal to offer discounts to increase sales conflicts with the finance manager's concern about potential revenue loss, resulting in a lack of alignment in efforts towards achieving the sales target.

This lack of unity in direction hampers the company's ability to effectively coordinate its actions and resources towards the common goal of achieving the sales target.

Q. 16. ABC Ltd. is engaged in producing electricity from domestic garbage.  There is almost equal division of work and responsibility between workers and management.  The management even takes workers into confidence before taking important decisions.

All the workers are satisfied as the behavior of the management is very good.

• State the principle of management described in the above para.
• Identify any two values which the company wants to communicate to the society.             (3 marks)
• The principle of Taylor described in the above para is Cooperation, Not Individualism.

Values communicated to society by ABC Ltd.:

Employee Empowerment : ABC Ltd. values and promotes employee empowerment by involving workers in decision-making processes and sharing responsibilities equally between workers and management. This communicates a commitment to fostering a sense of ownership and involvement among employees, empowering them to contribute meaningfully to the company's success.

Good Governance and Transparency : The company emphasizes good governance and transparency by taking workers into confidence before making important decisions. This demonstrates a commitment to open communication, trust, and fairness in organizational practices, thereby promoting transparency and accountability in its operations.

Q. 17. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running under heavy losses.

To revive from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost.  The management also asked the workers to work overtime without any additional payment and promised to increased to wages of the workers after achieving its mission.  Within a short period the company started earning profits because both the management and the workers honoured their commitments.

• Identify any two values that the company wants to communicate to the society.           (3 marks)
• The principle of management described in the above para is Discipline.

Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of the organization.

    2. Values communicated to society by Voltech India Ltd.:

Fairness and Social Responsibility : The company demonstrates a commitment to fairness and social responsibility by promising to increase wages for workers after achieving its mission. Despite asking workers to work overtime without additional payment initially, the company fulfills its commitment to reward their efforts once profitability is restored. This communicates a sense of fairness and social responsibility towards its employees, ensuring they are fairly compensated for their contributions.

Ethical Conduct and Integrity : Voltech India Ltd. upholds ethical conduct and integrity by honoring its commitments to both management and workers. The decision to shift the unit to a backward area where labor is available at a low cost may raise questions about ethical labor practices. However, by promising to increase wages after achieving profitability and delivering on that promise, the company demonstrates integrity and ethical conduct, ensuring transparency and trust in its dealings with both management and workers.

Q. 18. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without paying any interest to the organizational objectives.

• Which aspect of management the company is lacking?  What will be its impact on the organization?
• Identify the principle of management which has been overlooked by this organization.
• State any two values neglected by the people of this organization.   (5 marks)

Ans.   Aspect of Management Lacking: Coordination

Impact on the Organization: The lack of coordination among departments in setting their own objectives without aligning them with organizational objectives can lead to inefficiency, duplication of efforts, conflicts, and ultimately hinder the achievement of overall organizational goals. Departments may pursue their own agendas, resulting in disjointed efforts, wasted resources, and decreased overall performance of the organization.

Principle of Management Overlooked: Unity of Direction

Values Neglected by the People of the Organization:

Teamwork and Collaboration : The departments' focus on setting their own objectives without considering organizational goals neglects the value of teamwork and collaboration. Instead of working together towards common objectives, departments may operate in silos, hindering synergy and cooperation within the organization.

Organizational Vision and Mission : By disregarding organizational objectives in favor of departmental goals, the people of Kushal Ltd. neglect the value of aligning individual and departmental efforts with the organization's vision and mission. This lack of alignment can lead to a loss of focus on the overarching purpose and direction of the organization, resulting in fragmented efforts and diminished organizational effectiveness.

Q. 19. Telco Ltd. is manufacturing files and folders from old clothes to discourage use of plastic fields and folders.  For this, they employ people from nearby villages where very less job opportunities are available.  An employee, Harish, designed a plan for cost reduction but it was not welcomed by the production manager.  Another employee gave some suggestion for improvement in design, but it was also not appreciated by the production manager.

• Identify any two values that the company wants to communicate to the society. (3 marks)
• Initiative.  It means eagerness to initiate action without being asked to do so.
• Values which the company wants to communicate to the society are:
• Sensitivity towards the environment
• Creation of job opportunities
• Development of backward regions.

Q. 20. Khandelwal Ltd., a tyre manufacturing concern has been established for more than ten years.  Having made good profits in the past, company wanted to expand further and hence did not declare bonus for the previous year.  The workers got agitated and trade union declared strike and demanded bonus and other facilities.  The management decided not to give into their demands.

• Which principle of scientific management is overlooked in the given case?
• State any two values overlooked/ignored by the management in the above case.
• Harmony, not Discord
• Values overlooked are:
• Mutual understanding
• Peace and stability
• Law and Order
• Sense of belongingness  (any two)

Q. 21. Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials.  He proposes to adopt to logical approach to his business rather than hit and trial method as he knows that this can result in tremendous saving of human energy as well as wastage of time and materials.  He plans to adopt paternalistic style of management in practice in order to avoid any kind of class-conflict that may emerge between him and the workers.  Moreover, he plans to seek the opinion of his workers before taking any important decisions and also offers incentives to them for providing valuable suggestions for the business.

• Identify and explain the various principle of scientific management that Hritik plans to apply in his business.
• List any two values that he wants to communicate to the society by offering eco-friendly packaging material.
• The various principle of scientific management that Hritik plans to apply in his business are described below:
• Science, not Rule of Thumb:
• Harmony, Not Discord:
• Cooperation, Not Individualism:
• The two values that Harit wants to communicate to the society by offering eco-friendly packaging material are:
• Concern for environment
• Sense of responsibility

Q. 22. Gaurika has been appointed as the chief organizer of a weeklong cultural event.  Being a staunch follower of scientific management, she decides to execute her work by putting into practice the various techniques of scientific management.  On the basis of several observations, she is able to determine that the standard time taken by the security officer at the gat to check the credentials of each visitor is 30 seconds.  So she decides to employ two persons on this job for every function along with the other necessary support staff.  She considers the fact that every day, the functions will take place in three shifts of four hours each, therefore it is important to give breaks to the support staff even in a single shift to take her/his lunch etc.  moreover, on introspection, she determines that the best way to distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would help to save time and eliminate any kind of confusion.

In the context of the above case:

• Identify and explain the various techniques of work study which have been put into practice by Gaurika.
• List any two values that Gaurika wants to communicate to the society.
• The various techniques of work study which have been put into practice by Gaurika are outlined below:
• Time Study:
• Fatigue Study:
• Method Study:
• The two values that Gaurika wants to communicate to the society are:
• Optimum utilization of resources
• Concern for employees

Q. 23. ‘Study Buddy Pvt.’ Is company dealing in stationery items. In order to establish standards of excellence and quality in materials and in the performance of men and machines, the company adheres to benchmarks during production.  Moreover, its products are available in limited varieties, sizes and dimensions thereby eliminating superfluous diversity of products.

Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’

Ans.   Technique of scientific management: Standardization

• Establishing benchmarks during production.
• Limiting varieties, sizes, and dimensions of products.
• Consistency in materials and performance.
• Quality control and excellence in production.
• Efficiency in operations.
• Enhanced quality and customer satisfaction.

Q. 24. Tina and Anshu completed their MBA and started working in a multinational company at the same level.  Both are working hard.  Anshu has the habit of backbiting and wrong reporting about his colleagues to impress the boss.  All the employees in the organization know about it.  At the time of performance appraisal also Tina’s performance was rated better than Anshu.  Even then their boss decided to promote Anshu stating that being a female, Tina will not be able to handle the complications of higher post.

• Identify and explain the principle of management that was not followed by this company.
• Identify the values being ignore.
• Company is violating the “Principle of Equity.”
• The values ignored are

                  1.   Gender equality

                  2. eward for performance

                  3. Good human behavior.

Q. 25. In one of his principles, Taylor suggested that job performance should be based on scientific enquiry and not on will/wish or personal intuition of manager?

• Name that principle.
• What values can be followed by using this principle?
• Principle of “Science not rule of thumb.”
• If manager is using this technique he can follow the value of objectivity it as when decisions are taken scientifically he cannot be biased.

Q. 26. The production department of Alpha Ltd. was not performing well on detailed analysis, it was observed that the workers of that department were overburdened.  They were forced to work for longer hours without any break.  So the management planned to replace the production manager.  They appointed Mr. Hari as the new Production Manager.  He observed the average worker and note down their times.  He noted down the time they worked and the time they required to be fresh to join back the work.  Based on this observation, he set the break intervals for workers. He gave small breaks to workers to recharge their energy.

• Name and explain the technique of scientific management used by Mr. Hari.
• State the value which Mr. Hari wants to communicate to the society by allowing rest intervals to workers.
• Fatigue study.
• Value of humanity/sympathy/respect towards employees.

Q. 27. In the staff meeting the principal of the school raised objection that teachers start the teacher after 5 to 10 minutes in third floor classes.  He warned them as students are complaining about this.  The teachers explained the principal that when we climb steps from ground to third floor.  We get some tiredness and need 5 to 10 minutes rest before starting the lecture.  The principal planned to install a lift in school so that teachers do not waste their energy on wasteful activity of climbing steps.

• State the techniques of scientific management used by principal.
• State any other technique of scientific management.
• “Technique of motion study.”
• Other two techniques:
• Functional foremanship
• Time study.

Q. 28. In a factory the toolbox was kept under the table of every worker, whenever worker needs tools he had to bend tape out tool from tool box and keep it back after use.  The newly appointed supervisor observed it and suggested to keep a stool near every worker’s chain where toolbox can he placed so that workers do not waste their energy in bending again and again.

• Which technique of scientific management is used by New Supervisor.
• State the objective of motion study.
• Motion study.
• The objective of motion study is to eliminate unproductive movements of workers.

Q. 29. Mr. Mukesh used to manufacture shoes by employing labour who were easily available.  When his son after completing his MBA joined the business, he analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.

• Which technique of Scientific management is used by his son.
• What is the objective of that technique.
• Method Study
• Finding the best way of doing thing.

Q. 30. Mr. Kapoor, Finance manager of ABC Ltd. applied for leave to attend a family function in Amritsar.  The director of the company  requested him to cancel his leave as there is an important meeting schedule on that date.  Mr. Kapoor immediately agreed and cancelled his trip as he thought attending meeting is more important for company’s benefit.

• Which principle of Fayol is applied by Mr. Kapoor?
• Explain that principle.
• Principle of subordination of individual interest to general interest.
• According to this principle, the interest of organization must supersede the interest of individuals or employees.  In the organization all the employees are working with some objective and there is always an objective of organization.

Q. 31. The manager of ABC Ltd. asked his workers to work overtime to increase the production and earn more but he did not paid extra wages to workers for extra time worked.  The workers started feeling dissatisfied and stop contributing maximum.

• Which principle of Fayol is violated in the above case.
• Explain that principles.
• Principle of Remuneration.
• According to this principle, the interest of organization must supersede the interest of individuals or employees.

Q. 32. Mr. Rajiv is the owner of ‘Laxmi Dairy.’  He is producing various milk products.  He always tests various ways of producing different products and chooses the best and most economical way of production.  He is also very particular about fixing a place for everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production.

• Which technique of scientific management is applied by Mr. Rajiv?
• Which principle of Henry Fayol is followed by him?
• Principle of order

Q. 33. Mr. Rajiv the senior manager of Unique enterprise considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone.  The employees of unique enterprise were not working efficiently and company’s profit margin started declining to tackle the problem, the company appointed a new manager from IIM Bangalore.  The new manager after joining made a policy that all the decisions will be taken after consulting employees in the meeting.  All employees must give some suggestions and best suggestions will be rewarded with financial and nonfinancial incentives.  This policy had a very positive effects on company.

• State the principle of Hencry Fayol used by new manager.
• State the technique of scientific management related to above case.
• Principle of initiative.
• “Cooperation not individualism.”

Q. 34. In a school principal makes sure that every instruction, order or information given by him must be passed to vice-principal then Head of the department and then to teachers and students must be informed by respective teachers only.  He never allows teachers to directly communicate with him.

• Stat the Principle of Henry Fayol followed by the school principal.
• In case of emergency which concept of Scalar Chain can be used by teacher to pass urgent message directly to principal.
• Scalar Chain.
• Gang-plank.

Q. 35. Pawan is working as a Production Manager in CFL Ltd. which manufactures CFL bulbs.  There is no class-conflict between the management and workers.  The working conditions are very good.  The company is earning huge profits.  As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.

• State the principle of management described in the above paragraph.
• Identify any two values which the company wants to communicate to society.
• The principle of management described in the above paragraph is ‘Harmony, not discord’.
• The two values that the company wants to communicate to the society are:

Q. 36. The principles of Taylor and Fayol are mutually complementary.  On believed that 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.

Identify and explain the principles of Fayol and Taylor referred to in the above paragraph.

The principles of Fayol and Taylor referred to in the above paragraph are ‘Remuneration of employees’ and ‘Harmony, Not Discord’.

• Remuneration of Employees:
• Harmony, not Discord:

Q. 37. The principles 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.

Identify and explain the principles of Taylor and Fayol referred to in the above paragraph.

Ans.  The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’.

• Initiative:
• Cooperation and Not Individualism:

Q. 38. Hina and Harish are typists in a company having the same educational qualifications.  Hina gets Rs. 3,000 per month and Harish gets Rs. 4,000 per month as salaries for the same working hours.  Which principle of management is being violated in this case?  Name and explain the principle.

Ans.  The principle of Equity has been violated in this case.  It emphasizes kindliness and justice in the behavior of managers towards workers.  No discrimination should be made by them on the basis of caste, creed, gender or otherwise.

Q. 39. Rajveer works as a plant superintendent in a carpet making factory.  In order to complete the export orders on time, the production manager asks him to make the workers work over time whereas the finance manager is strictly against this practice because it will increase the cost of production.  Moreover, Rajveer feels that since the company is manufacturing handmade carpets as well as machine made carpets there is a lot of overlapping of activities.  Therefore, there should be two separate divisions for both of them wherein each division should have its own in charge, plans and execution resources.

• Identify and explain the principle of management which is being violated.
• Also identify the principle of management that Rajveer feels should be implemented in the factory.
• Give any two differences between the principle of management as identified in part (a) and part (b) respectively.

The principle of management which is being violated in stated below:

• Unity of command:
• Unity of direction:
• The difference between the principle of Unity of Command and Unity of Direction is given below:

Q. 40. Gurpreet is running a retail mart in Varansi to provide various types of products of daily use under one roof to the buyers.  The employee turnover in his business is very high and he is perpetually on a look out for new staff.  The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis without letting them settle down in a specific work.  This approach of his creates a sense of insecurity among the employees and they tend to leave the job very quickly.  However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.

• Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually ona look out for new staff.
• “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.”  Name and explain the relevant principle of management will have been brought into effect by Gurpreet.
• Stability of Personnel;

Also Check at EduRev:   Chapter Notes - Principles Of Management   Learn Principles of the Scientific Management: Overview  

Q. 41. After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail company through the reference of her cousin Taruna who works in the same company as a Senior Manager.  Taruna decides to guide Tanya through her experience by making her aware of the important facts about management in practice.  She tells her that neither the principles of management provide any readymade, straitjacket solutions to all managerial problems nor they are not rigid prescriptions, which have to be followed absolutely.

• Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
• Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems?
• The two features of principles of management mentioned in the above paragraph are as follows:
• General guidelines:
• As the real business situations are very complex and dynamic and are a result of many factors, the principles of management not provide readymade, straitjacket solutions to all managerial problems.

Q. 42. Raj and Simran are both qualified eye surgeons and good friends.  After obtaining a certificate of practice, they decide to persue a career of their own choice.  Raj starts an eye care centre in the city whereas Simran joins a government hospital in a small village.  They meet after a long time in a party.  Raj invites Simran to visit his eye care centre and she accepts his invitation.  She observes at his clinic that there is a fixed place for everything and everyone and it is present there so that there is no hinderance in the activities of the clinic.  Also, Raj always tends to replace ‘I’ will ‘We’ in all his conversations with the staff members.  Later on Raj shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.

• Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
• List any two values that Simran wants to communicate to the society by taking up a job in a village.
• Spirit de Corps:
• Concern for poor

Q. 43. Anshul owns a small scale factory where utility items are prepared from waste material like paper mache items, paper and cloth bags, decorative material etc.  over the past few weeks, he was observing that the productivity of one of his very efficient worker, Ramdas, is going down.  So he decides to probe into the matter and confronts Ramdas one day.  On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient when everybody is being paid at the same rate.  Taking a lesson from this insight, Anshul decides to implement an incentive bonus plan so as differentiate between efficient and inefficient workers.

• Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
• State any two values that Anshul wants to communicate to the society by setting up a special type of business.

Differential Piece wage System is the incentive bonus plan that Ashul may implement so as differentiate between efficient and inefficient workers.

Q. 44. Swaraj is running an office furniture showroom.  Most of his clients are businessmen and they prefer to buy goods on credit.  Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days, while negotiating a deal with a buyer.  On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalize a highly profitable deal for the business.  So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering a credit period of 30 days in the interest of the business.  But swaraj refuses to extend his authority and as a result, the deal is not finalized.

• Can Mr. Bhardwaj be held responsible for loss of the deal?  Why or why not?  Give a suitable reason in support of your answer.
• Also, explain the related principle.
• No, Mr. Bhardwaj cannot be held responsible for loss of the deal in the above case as he was not given the necessary authority to carry out his responsibility.  There is an imbalance in authority and responsibility.
• The name of the related principle is Authority and Responsibility.

Get an overview of Business Finance through this  video. Find NCERT Solutions of Financial Management  here .  

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Class 12th Business Studies - Principles of Management Case Study Questions and Answers 2022 - 2023

By QB365 on 08 Sep, 2022

QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 12 Business Studies Subject - Principles of Management, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

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Principles of management case study questions with answer key.

12th Standard CBSE

Final Semester - June 2015

Business Studies

After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. 1. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?

2. "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority." Identify the principle of Management being followed here:

3. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?

4. Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?

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Principles of management case study questions with answer key answer keys.

1. (b) Division of work 2. (a) Centralization and Decentralisation  3. (a) Discipline 4. (c) Equity

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• Revision Notes

Business Studies Class 12 Notes - Free PDF Download

Class 12 Business Studies is an interesting subject comprising lots of concepts and problem diagrams. Students can only enjoy Class 12 Business studies if they understand the complex terms and basic concepts in easy language. To help students perform well in the Class 12 Business studies exam and give them better clarity of all the crucial concepts of this subject, nothing can be better than well-explained Class 12 Business Studies Notes .

Business Studies class 12 notes are prepared by the subject experts who have experience of over 20+ years and sound knowledge of the latest CBSE syllabus as well as the Class 12 board exam pattern. Business Studies Class 12 Notes will provide the students with a complete overview of all the chapters with the broad coverage of crucial topics from each chapter that has high marks weightage in the exam for the better performance of students.

Detailed Overview of Class 12 Business Studies Revision Notes

Download cbse class 12 business studies revision notes 2024-25 pdf.

Also, check Class 12 Business Studies Notes for other chapters:

CBSE Class 12 Notes for Business Studies Followed By NCERT Guidelines

Evision notes of business studies class 12 - free pdf download.

Class 12 Business Studies Notes are available to access both online and offline in PDF format on our official website and app for free. Our team prepares these notes strictly as per the latest syllabus of CBSE and follows the current examination pattern. The teachers we have here are highly experienced who have prepared these notes, significantly based on concepts followed by CBSE from the past several years. Class 12th business studies notes provide you with a very smooth understanding of the subject and will clear all your concepts in one go.

Well-explained in an easy to understand language with solved problems, graphical representation, and practical examples, class 12th business studies notes help students understand the crucial concepts of Class 12 business studies conveniently. Students can refer these notes to quickly brush up the important topics from each chapter of Class 12 Business Studies in a strategic manner just before the exam without any panic. Also, Class 12 Business Studies Notes help students understand which topics are critical from an exam point of view and thus require their more attention.

CBSE Class 12 Business Studies Weightage 2024-25

Revision notes of business studies class 12- chapter-wise.

Business studies is a fundamental concept as it teaches you the theories you will need to put into practice if you want to run any business successfully. You have to focus on these concepts because these will be useful even if you interact with any business organisation in the future. The subject concentrates on principles and concepts that elaborate on the science of management and its significance. They also focus on different business environments as well as functions like planning and organisation.

Class 12 Business Studies Notes explains the chapter-wise crucial concepts in a lucid and straightforward manner to help students understand all these concepts thoroughly. All these concepts are important from Class 12 board exam point of view as many questions appear in the exam from these concepts and by revising these concepts, students can score good marks in Class 12 Business Studies exam.

CBSE Class 12 Study Materials

Overview of revision notes cbse class 12 business studies.

CBSE Class 12 Business studies is a very important branch of the syllabus that deals with different concepts related to the management and effectiveness of a business. There are 12 chapters included in the syllabus of Class 12 Business studies. All these chapters are divided into two books called Principles and Functions of Management and Business, Finance, and Marketing. Students will get familiarized with concepts such as Management, Planning, Organizing, Staffing, Controlling, and Directing a Business. The syllabus also covers other important topics such as Financial Management, Financial Markets, Consumer Protection, Marketing, and much more. To complete their syllabus, students will need Class 12 Business Studies Notes provided by Vedantu.

The learned subject matter experts at Vedantu have created well-researched and verified Revision notes for the students.

With these Class 12th business studies notes, students will be able to dominate their syllabus and secure good grades in their examinations. By getting detailed insights into the chapters through the notes, students will be able to learn the subject and master the concepts easily. With Business Studies Notes for Class 12 PDF , students have the chance to cement their knowledge about business topics and concepts in the best way. These notes have been prepared according to CBSE guidelines and thus students can actually gain a lot of important benefits if they manage to download the revision notes for this subject in Class 12.

Benefits of Class 12 Business Studies Notes PDF Download

The Class 12 Business studies notes will explain each and every single concept of the chapters in acute detail. Students can study the revision notes to gain proper insights into the chapter and achieve a proper conceptual foundation in the subject of business studies.

The learned experts at Vedantu have designed these notes according to the requirements of the students. So, they don’t have to look for other resources to complete their study materials. The links to all the chapters and the revision notes have been provided right here.

Students can use the revision notes to clarify any particular doubts that they are having about a certain chapter or a topic. For instance, if you have doubts about the first chapter, you can download Class 12 Business Studies Chapter 1 Notes  PD F and rectify any errors and clear doubts.

Students can definitely rely on the revision notes to completely their syllabus in time for the exams. They don’t have to go through the elongated process of reading the entire textbook to learn about the chapters. Just going through the revision notes will help students complete all the chapters on time.

Students will be able to guess the CBSE exam pattern from the revision notes as these study materials have been crafted according to CBSE guidelines . Students can find out the topics that are most important and most likely to appear in the examinations. This will help them get prepared beforehand.

Chapter-Wise Division of Crucial Topics Covered in Revision Notes of Business Studies Class 12: 

Chapter 1 - nature and significance of management.

Definition of Management.

Effectiveness v. Efficiency.

Characteristics of Management.

Management Objectives.

Importance of Management.

Chapter 2 - Principles of Management

Nature of Business Management.

Significance of Principles of Management.

Principles of Scientific Management.

Fayol’s Principle of Management.

Chapter 3 - Business Environment

Meaning 

Features 

Dimensions 

Chapter 4 - Planning

Importance 

Types 

Planning Process

Chapter 5 - Organising

Introduction 

Organisational Structure

Delegation 

Importance of Delegation

Chapter 6 - Staffing

Recruitment

Sources of Recruitment

Chapter 7 - Directing

Characteristics

Elements of Directing

Chapter 8 - Controlling

Limitations

Relationship between Planning and Controlling.

Chapter 9 - Financial Management

Financial Management.

Financial Decisions.

Factors Affecting Financial Decisions.

Factors Affecting Capital Budgeting Decisions.

Factors Affecting Dividend Decision.

Financial Planning.

Capital Structure.

Debt v. Equity.

Chapter 10 - Financial Markets

Functions. 

Capital v. Money Market.

Chapter 11 - Marketing

Marketing and Selling 

Functions of Marketing

Chapter 12 - Consumer Protection

Legal Protection

Consumer Rights

Chapter 13 - Entrepreneurship Development

Concept 

Roles and Functions of Entrepreneurship.

3 Revision Techniques to Use NCERT Class 12 Business Studies Notes PDF

Revise, Rest, and Repeat: Studies indicate that a brief nap of approximately 20 to 30 minutes enhances memory retention. Therefore, incorporating regular cycles of revision, rest, and repetition aids in boosting memory and recall abilities. Utilize this revision strategy while utilizing the NCERT Class 12 Business Studies Notes PDF .

Pomodoro Technique: An Effective Method for Distracted Learners: The Pomodoro technique offers an effective approach to revision, particularly beneficial for students struggling with sustaining focus on a task for extended periods. By utilizing this technique, students can effectively utilize the NCERT Class 12 Business Studies Notes PDF to comprehensively revise the entire syllabus.

Blurting: A Novel Approach to Revision: In addition to the aforementioned methods, blurting emerges as a noteworthy revision technique. This method involves vocalizing Business Studies notes aloud, as verbalizing aids in retention. Following this, assess your comprehension by jotting down recollections obtained during your Class 12 Business Studies revision sessions.

Subject-wise Solutions for Class 12

NCERT Solutions for Class 12 Maths

NCERT Solutions for Class 12 Physics

NCERT Solutions for Class 12 Chemistry

NCERT Solutions for Class 12 Biology

NCERT Solutions for Class 12 English

NCERT Solutions for Class 12 Business Studies

NCERT Solutions for Class 12 Economics

NCERT Solutions for Class 12 Accountancy

Download Revision Notes for Business Studies Class 12

When it comes to preparing for exams, students need to be prepared by completing their syllabus. Download Quick Revision Notes for Business Studies Class 12 from Vedantu and you will have all the assistance to complete the syllabus and retain information about the chapters.

FAQs on CBSE Class 12 Business Studies Notes

1. Can You Give me the Details of the Portion of Business Studies Class 12?

Class 12 Business Studies is divided majorly into two portions.

The 1st Portion Consists:

Principles and Functions of Management - Nature and Significance of Management, Principles of Management, Business Environment, Planning Organizing, Staffing, Directing and Controlling. 

The 2nd Part Consists:

Business Finance and Marketing. 

2. Where can I get Free Revision Notes of Business Studies Class 12 Online?

Students can download well-explained and reliable Class 12 Business Studies Revision notes online for free from the official website of Vedantu and its app. These notes are prepared by the subject experts as per the latest CBSE syllabus and hence wholly trustworthy and reliable. Students can always access these notes freely whenever required.

3. Is it necessary to use Class 12 Business Studies notes?

Refer to Vedantu's Class 12 Business Studies Notes to ace your exam preparation. With the help of these notes, you will be able to revise all important topics of the syllabus in less time. These notes are prepared on the latest syllabus, exam pattern and marking scheme to fetch you more marks in the exam. They are fully authentic as they are prepared by the best Business Studies teachers in India. By studying from these notes, you will see a lot of progress in your exam preparation. 

4. What are the chapters in Business Studies Class 12?

The syllabus of Class 12 Business Studies comprises 12 chapters that are divided into two books - Principles and Functions of Management, and Business Finance and Marketing. 

There are eight chapters in the first book. These are as follows - 

Chapter 1: Nature & Significance of Management

Chapter 2: Principles of Management

Chapter 3: Business Environment

Chapter 4: Planning

Chapter 5: Organising

Chapter 6: Staffing

Chapter 7: Directing

Chapter 8: Controlling

The second book consists of the following four chapters - 

Chapter 9: Financial Management 

Chapter 10: Financial Markets 

Chapter 11: Marketing

Chapter 12: Consumer Protection

5. How do you make a BST note?

Business Studies notes are really important to simplify your exam preparation journey. You can prepare handwritten notes for BST. First, thoroughly read all the chapters from your NCERT BST textbook. While preparing notes, make sure that they are well-structured, crisp and short. Divide your notes into two sections - the theory section and the numerical section. Prepare the most important bullet points in simple words from every theory topic and write down statistics from the case studies. Revise these notes multiple times to strengthen your conceptual understanding. 

6. How to download CBSE Class 12th Business Studies Quick Revision Notes?

You can easily download Class 12 Business Studies Quick Revision Notes by visiting the page CBSE Class 12 Business Studies Revision Notes on the Vedantu website. You can select the chapter and then proceed to download the PDF of its Revision Notes. These notes will help you ace Business Studies by providing the best quality study material from an examination point of view. They are 100% authentic notes, error-free and comprehensive. By downloading these notes, and regularly revising them, you will be able to learn the Business Studies concepts with a crystal-clear understanding. All these PDFs are available at free of cost on the Vedantu app as well.

7. Can you please provide a detailed Stepwise Study Plan to ace Business Studies Class 12?

First of all, study each chapter from the standard NCERT textbook to obtain conceptual clarity and to cover all basics. Then, solve every question given in the back exercises of each chapter. Refer to Vedantu's Revision Notes for Class 12 Business Studies CBSE Class 12 Business Studies Revision Notes. Prepare short notes to summarize all the main topics. Analyze the tables and charts given in the NCERT for better understanding. Practice as many previous year questions and sample papers as you can, and most importantly, revise all topics multiple times. 

8. How can class 12 business studies chapter 1 notes pdf help me prepare for exams?

Class 12 business studies chapter 1 notes pdf can help you prepare for exams by providing a structured overview of the topics covered in the chapter. They serve as a handy revision tool, enabling you to quickly review key points and concepts before exams.

9. Are there any tips for effectively using class 12 business studies chapter 2 notes?

To effectively use class 12 business studies chapter 2 notes, consider the following tips:

Review the notes regularly to reinforce your understanding of the principles of management.

Use mnemonic devices or visualization techniques to memorize key principles and their applications.

Apply the principles learned in the notes to real-life business scenarios to deepen your understanding.

Discuss concepts with peers or teachers to gain additional insights and perspectives.

Revision Notes for Class 12

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CBSE Class 12 Business Studies Chapter 2 – Principles of Management Class 12 Notes

Principles of management class 12 revision notes .

In the principles of management class 12 notes, we will study the business principles guiding the working of Toyota Motor Corporation. Then, we will study the fascinating evolution of management principles. Furthermore, we will study the concept of Principles of Management. Thus, we will see as to how a managerial principle serves as a broad and general guideline for decision making and behavior. Moreover, we will study nature i.e. the qualities and characteristics of Principles of Management. Also, we will read the case study of ‘Kiran Mazumdar Shaw’, a highly successful Indian businesswoman and CEO of ‘Biocon’. From the story, we will understand the significance of management principles. Hence, we will get to know that the principles of management derive their significance from their utility. We will discuss the significance of management principles in terms of six useful points.

Then, we will study the scientific management proposed by the Father of Scientific Management F.W. Taylor. Also, we will read an extract depicting his contribution to Scientific Management. Thus, we will study Principles of Management as proposed by Taylor. Also, we will study the techniques of Scientific Management. Furthermore, we will be discussing the methods to standardize and simplify the work. Then, we will discuss the 14 principles of management as listed by Henri Fayol. These helped in improving managerial efficiencies. In the end, we will compare the contributions of Taylor and Fayol.

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Sub-topics under Principles of Management :

• Concept of Principles of Management :   In this Subtopic, we will understand how a managerial principle serves as a broad and general guideline for decision making and behavior.
• Fayol’s Principles of Management :  In this Subtopic, we will study the 14 principles of management as listed by Henri Fayol which helped in improving managerial efficiencies.
• Taylor’s Scientific Management : In this Subtopic, we will study the scientific management proposed by the Father of Scientific Management F.W. Taylor.

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CBSE Class 12 Business Studies Revision Notes

• CBSE Class 12 Business Studies Chapter 13 – Entrepreneurship Development Class 12 Notes
• CBSE Class 12 Business Studies Chapter 12 – Consumer Protection Class 12 Notes
• CBSE Class 12 Business Studies Chapter 11 – Marketing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 10 – Financial Markets Class 12 Notes
• CBSE Class 12 Business Studies Chapter 9 – Financial Class 12 Notes
• CBSE Class 12 Business Studies Chapter 8 – Controlling Class 12 Notes
• CBSE Class 12 Business Studies Chapter 7 – Directing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 6 – Staffing Class 12 Notes
• CBSE Class 12 Business Studies Chapter 5 – Organising Class 12 Notes
• CBSE Class 12 Business Studies Chapter 4 – Planning Class 12 Notes

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• Class 12 Business Studies
• Chapter 2 Principles of Management

Important Questions Class 12 Business Studies Chapter 2 - Principles of Management

Important Questions with Answers for CBSE  Class 12 Business Studies Chapter 2 – Principles of Management which is outlined by expert Business Studies teachers from the latest version of CBSE (NCERT) books.

CBSE Class 12 Business Studies Chapter – 2 Important Questions

What is meant by ‘Management Principles’?

Answer : Principles of management refers to the broad and general guidelines for managerial decision making and traits.

Name the organisational structure that assists in increasing managerial and operational efficiency.

Answer : Functional structure assists in increasing managerial and operational efficiency.

Explain why is it said that the principles of management are ‘primarily behavioural’ and ‘contingent’ in nature. Also, explain how principles of management ‘furnishes the managers with useful insights into reality’ and ‘helps is thoughtful decision making’.

Answer : Principles of management are ‘primarily behavioural’ and ‘contingent’ in nature and ‘furnishes the managers with useful insights into reality’ and ‘helps is thoughtful decision making’. These points have been justified in the below-mentioned points:

• Primarily behavioural : The principles of management are ‘primarily behavioural’ in nature as principles of management aim at affecting the individuals and their applicability differ as per human nature.
• Contingent : Their applicability relies upon the current scenario at a specific point of time. The application must be changed according to the situation.
• Formed by practice and experimentation : management principles are based on the number of years of experimentation and practice. Hence, these principles assists the managers when they confront the real-time issues.
• Cause and effect relationship : The decisions that are taken regarding the management must be taken carefully. They must certainly be based on the facts. Principles of management were developed from the real-time issues and they stand the test of reasoning and logic.

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Briefly explain ‘discipline’ and ‘scalar chain’ as the principles of general management.

• Discipline : Discipline implies that an establishment must follow the rules and regulations and make sure that the compliance to set some stipulated policies and rules. Discipline certainly requires some good supervisors at all the levels with clear and unbiased agreements and judicious application of penalties.
• Scalar chain : Scalar chain refers to a defined, established pathway of authority and communication in the order of highest to the lowest.

What are the features on Principles of management? Answer : Principles of management are the statements of fundamental truth, which possess the capability to anticipate the outcome of managerial pursuits. Below mentioned are the features:

• Universal applicability : Management principles are relevant to all sorts of establishments – business & non-business. They are applicable to all levels of management. Every business must make the best potential effectiveness by the use of management principles. Hence, they are universal or all-pervasive.
• Principles of Management have a Cause & Effect Relationship : Principles of management mean cause and effect relationship between associated variables. They imply what will be the outcome or result of some actions. Consequently, if one is known, the other can be determined.
• Principles of Management – Aims at Influencing Human Behavior : Human behaviour is complicated and unpredictable. Management principles are aimed towards controlling human behaviour so that people can contribute their best to the organization. Management is concerned with combining efforts and harmonizing them towards a purpose. But in situations, even these principles fail to understand human behaviour.
• Principles of Management are Flexible : Management principles are effective guidelines and not inactive rules. There is enough room for managerial responsibility i.e. they can be altered as per the necessities of the situation. Modification & development is a perpetual phenomenon in case of principles of management.

What is the importance of the principles of management?

Answer : The importance of the principles of management are mentioned below:

• Furnishing managers with beneficial insights : These principles of management help in raising the managerial effectiveness by adding to their knowledge, skills and ability to comprehend the various situations more equitably.
• Scientific decisions : Management principles assists the managers in taking the decisions that are based on the goal-oriented situation. Hence, the decisions taken are certainly logical, unbiased and free from any sort of prejudices.
• Fulfilling social responsibilities : These principles of management are outlined in such a way that they assist in fulfilling social responsibilities.
• Management training, education and research : These principles of management are utilised as a basis for management training, education and research.

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