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Class 12 Business Studies Chapter 2 Principles of Management
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Principles of Management
Chapter: 2
PART – A
VERY SHORT TYPE QUESTIONS ANSWERS (1 MARK EACH)
1. Who is called the father of scientific management ?
Ans: F. W. Taylor is called the father of scientific management.
2. Who authored the book “The Principles and Methods of Scientific Management ?
Ans: F. W. Taylor
3. Who introduced the differential piece rate system ?
Ans: F. W. Taylor
4. Who is called the father of administrative management theory ?
Ans: Henry Fayol.
5. Name the book authored by Henry Fayol on Management ?
Ans: General and Industrial Management.
6. Who introduced the concept of Gank Plank ?
Ans: Henry Fayol.
7. What is the main objective of fatigue study ?
Ans: The main objectives of fatigue study is to reduce fatigue at work and maintain the operational efficiency of the workers.
8. Which principles state ‘one plan, one boss’ and ‘one head, one plan.’
Ans: Unity of direction.
9. Which technique of scientific management does provide for eight specialist foremen over workers ?
Ans: Functional Foremanship.
10. What is required to ensure harmony among workers and managers ?
Ans: Mental revolution is required to ensure harmony among workers and managers.
11. Why did Fayol introduced the concept of ‘Gang Plank’ ?
Ans: Fayol introduced the concept of “Gang Plank’ to allows direct link between two employees of different departments for quick communication.
12. Why are principles of management called flexible ?
Ans: Principles of management are flexible in nature because it can be modified and changed with the changes in environment of a business.
13. Which principle of management is violated if a subordinate is asked to receive orders from two or more superiors ?
Ans: Unity of command.
14. Which principle of management promotes team spirit ?
Ans: Esprit de Corps.
15. Which technique of scientific management describes one best way to perform a task ?
Ans: Scientific Task Setting.
16. Why is it said that management principles are universal in application ?
Ans: Management principles are universal in application because it can be successfully applied in different organisations at different places.
17. Who gave functions and principles of management ?
Ans: Henry Fayol.
18. Which technique of scientific management does provide for eight specialist foremen over workers ?
Ans: Functional Foremanship.
19. Name the device which permits direct communication between employees working at the same level ?
Ans: Gang plank.
B. SHORT TYPE QUESTIONS ANSWERS TYPE-1 (2/3 MARKS EACH)
20. Write three features of scientific management ?
Ans: Three features of scientific management are :
(i) It is a systematic approach to handle management problems.
(ii) It rejects the age old method of ‘rule of thumb’ or “hit or miss approach.
(iii) It attempts to discover the best method of doing a work at the lowest cost.
21. What do you mean by management principles ?
Ans: The dictionary meaning of the word principle is basic knowledge and fundamental truth. In case management, it implies some. fundamental truth which are made by scientific study and analysis. According to Harold Koontz, “principle in management are fundamental truth explaining relationship between two or more variables.” Therefore management principles implies those rules and regulations and guidelines which give a correct way to take correct decision by the management.
22. What is scientific management ?
Ans: The word scientific implies systematic manner of doing any activity on the other hand, management implies managing, controlling and supervising of the employees. Therefore, scientific management implies a systematic application of different managerial techniques. It is concerned with the replacement of old techniques with the scientific method of production.
According to F. W. Taylor, “Scientific management means knowing exactly what you want men to do and seeing that they do it in the be and the cheapest way.”
23. Explain in brief the concept of Gang Plank.
Ans: Scalar chain is a line of authority from top level to bottom. But due to scale chain communication takes too much time as the order comes from top to bottom. The scalar chain should not be rigid. There should be provision for short circuiting the chain. This would allow quick communication and swift action. So, Fayol introduced “Gang Plank’. The gang plank allows direct link between two employees of different departments and thus facilitates quick communication. It would lead to better coordination by removing hurdies in the exchange of information between employees of two different departments.
24. Distinguish between time study and motion study ?
Ans: Distinction between time study and motion study are:
(i) Motion study is a technique which involves close observation of the movements of body and limbs of an individual required to perform a job. Time study is the technique of observing and recording the time required by a worker of reasonable skills and ability to perform cach element of the task in a job.
(ii) Motion study is the study of the movement of an operator or a machine to eliminate useless motions and find out the best method of doing a particular job.
Through, time study the precise time required for each element of a man’s work is determined.
(iii) The purpose of motion study is to design the best methods of doing various operations.
The purpose of time study is to scientifically determine the standard time for doing a job under given conditions.
25. Discuss three fundamental features of management principles.
Ans: The three fundamental features of management principles are:
(i) Fundamental truth: The principle of management are the fundamental truth based on years of experience and testing. They guide the managers in thinking and doing their managerial jobs.
(ii) General statements: Management principles are stated in the form of general statements. Management principles are not exact as principle of physical science and are merely expressed as statement.
(iii) Universal application: Management principles are universal in nature. These can successfully applied in different organisations at different places.
26. Write three importance of management principles.
Ans: The three importance of management principles are given below:
(i) To increase managerial efficiency: Management principles provide guidelines as to how managers should function in different situation which in turn increase their efficiency.
(ii) Optimum utilisation of resources: Several principles of management aim at optimum utilisation of all types of resources for the attainment of organisational goals. For instance, principles of division of work, discipline, unity of direction etc. facilitate better utilisation of human efforts and physical resources.
(iii) Meeting Environmental Challenges: Every business operates in a dynamic environment. Changes in economic, social, political etc. create challenges for the business. The manager can apply the management principles suitably to deal with different situations.
27. Distinguish between unity of command and unity of direction.
Ans: The differences between unity of command and unity of direction are given below:
| Unity of command | Unity of direction |
| 1. It implies that a subordinates should receive orders and instructions from one boss only. This principle is related to the functioning of personnel. | It means “one unit and one plan for the group of activities having the same objective. |
| 2.This principles is related to the functioning of personnel. | This principles is related to the functioning of a department or the organisation as a whole. |
| 3. Unity of command is necessary to fix responsibility of each subordinates. | Unity of direction is necessary for sound organisation. |
28. Write three benefits of scientific management.
Ans: Three benefits or advantages of scientific management are as follows:
(i) Increase in production and productivity: The scheme of scientific management involves planning of task and scientific method of doing work. This results in the increases in production per worker and per machine because of increased efficiency.
(ii) Reduction in the cost of production: Scientific management ensures avoiding of all types of wastages and losses. This leads to the reduction in cost of production.
(iii) Better quality products: Standardisation, which is an essential elements of scientific management, ensures better quality product.
29. Explain three disadvantages/ limitations of scientific management.
Ans: The three disadvantages/limitations of scientific management are as follows:
(i) Introductive of scientific management is quite expensive.
(ii) Reorganisation of work force and working style is very complex and time-consuming matter.
(iii) The workers are supposed to do routine work like automatic machines. This creates problems of monotony among workers.
(iv) Scientific management separates planning from performance. The workers are to carry out instructions given to them. So workers. are not given any opportunity to take initiative.
30. Explain the principle of scalar chain with an example.
Ans: Scalar chain refers to the unbroken chain or line of authority running from the top management to the lowest levels of the organisation. This is also known as hierarchy of authority.
Fayol realised that sometimes it becomes absolutely essential to short circuit the chain of command or to depart from the prescribed route with a view to ensure communication fast and effective. In such a case gang plank should be used. Fayol’s gang plank allows two individuals to deal directly with each other without weakening the chain of command Fayol’s gang plank concept is shown in figure.
This figures shows that there are two chains of command of ABCDE and AFGHI. All the persons can communicate with one another along the chain of authority shown in it. If D wants to communicate with H. D will have to communicate via C, B, A. F. G to H. In this way much time will be wasted. But in order to minimise the delay in communication the “Gang Plank should be used.
C. SHORT TYPE QUESTIONS ANSWERS TYPE- II (4 MARKS EACH)
31. Explain the principle of ‘discipline’ and principle of “subordination of individual interest to general interest.
Ans: The principle of ‘discipline’ and principle of ‘subordination of individual interest to general interest are:
(i) Discipline: Discipline means getting obedience to rules and regulations of the organisation. According to Fayol, discipline is obedience, application, energy and outward mark of respect Discipline is necessary for the smooth running of the organisation Maintenance of discipline in the organisation depends upon the quality of leadership, clear and fair arrangements and a judicious application of punishments.
(ii) Subordination of individual Interest to General Interest: The business enterprise is superior to its individual employees. The interests of the business organisation must prevail upon the personal interests of the individuals. This principle calls for reconciliation of goals of individuals with those of the organisation. When the individual and the organisational interests conflict, the latter must prevail. The employees should subordinate their interests to the general interests of the concern. The goals of the concern must not be sacrificed for the promotion of personal interests of individuals
32. Explain ‘Method Study’ and ‘Motion Study’ as techniques of scientific management.
Ans: Same as Q.No 47 (a) and (d).
33. What is meant by scientific management ? Discuss briefly the main elements of scientific management.
Ans: 1st Part: Same as Q.No 22.
2nd Part: Same as Q.No 41.
34. Describe in brief, Taylor’s principles of
(a) Science, not rule of thumb
(b) Harmony, not discord.
Ans: (a) Science not rule of thumb: This principle requires development and application of scientific methods. Taylor advocated that the traditional rule of thumb’ methods should be replaced with the scientific methods. While the use of scientific method denotes precision in deterring any aspect of work, rule of thumb emphasised estimation.
(b) Harmony not discord: There should be harmony (not conflicts) between the management and the workers. Taylor opinions that there should be group harmony refers that there should be mutual give and take and proper understanding so that group as a whole contributes to the maximum.
35. Explain in brief the principles of discipline and equity.
Ans: (i) Principles of discipline: According to Fayol, discipline is absolutely essential for the smooth running of business. Without it no business can prosper.
He believed that discipline results from these things :
(a) Good leadership at all levels of the organisation.
(b) Fair agreement between the firm and its employees.
(c) Faimess in the application of penalties.
(ii) Principles of Equity: According to this principles, the manager must install equality in the organisation. To ensure this, managers should be friendly, fair and kind, in dealing with their subordinates. It is because everyone likes equity in treatment. Equity brings loyalty and fosters good employee relations.
36. Write a note on Taylor’s functional foreman ship.
Ans: See Answer to Question No. 41 (ii).
37. Briefly explain four principles Taylor’s Scientific management.
Ans: Four principles Taylor’s scientific management are given below:
(i) Co-operation: Scientific management is based on mutual confidence and co-operation between management and workers. If there is understanding between management and workers. Then cooperation is achieved which is essential for smooth running of an enterprise.
(ii) Maximum output: Scientific management aims at increase in production and productivity instead of restricted production either by management or by worker.
(iii) Development of workers: One of the principles of scientific management is that all workers should be developed. Development workers is essential for the company’s prosperity. This would ensure greater efficiency and prosperity for both the company and the workers.
(iv) Equal division of responsibility between management and workers: There should be almost equal division of responsibility between the managers and the workers. The management should assume responsibility for the work for which it is better suited.
38. Discuss Fayol’s Principles of authority and responsibility” and ‘discipline’.
Ans: (i) Principles of authority and responsibility: Authority means the right to take decision and responsibility means obligation with respect to the tasks that one has to perform and for which he is paid. Authority and responsibility must go side by side.
(ii) Discipline: According to Fayol, discipline is absolutely essential for the smooth running of business. Without it no business can prosper.
He believed that discipline results from these things:
(a) Good leadership at all levels of the organisation.
(b) Fair agreement between the firm and its employees.
(c) Fairness in the application of penalties.
39. An organisation follows the principles of management. What are the positive effects of the following principles on the organisation ?
(a) Scalar Chain
(b) Equity
(c) Division of work
Ans: The positive effects of the following principles on the organisation are given below:
(a) Scalar Chain: See Answer to Question No. 43(iii)
(b) Equity: See Answer to Question No. 43 (v)
(c) Division of work: This implies that every employee should be assigned only one type of work so as to bring about specialisation in every activity. Fayol applied the principle of division of work to both the managerial as well as technical activities. Division of work tends to increase efficiency. It helps to avoid waste of time and effort caused by changes from one work to another.
40. Explain any six reasons as to why proper understanding of management principles is necessary ?
Ans: Proper understanding of management principles is necessary because of the following reasons:
(i) Useful insights to managers: The knowledge of management. principles makes it easy to analyse the manager’s job and define the scope of his duties. It is through the application of management principles that a manager can deal with complex business problems.
(ii) To attain social objectives: Management principles play an important role in better utilisation of resources, giving more satisfaction to the society and improving quality of life of people.
(iii) To carry on researches: Today management principles have become the basis of carrying on researches.
(iv) To increase managerial efficiency: Management principles provide guidelines as to how managers should function in different situation which in turn increase their efficiency.
(v) Optimum utilisation resources: Several principles of management aim at optimum utilisation of all types of resources for the attainment of organisational goals. For instance, principles of division of work, discipline, unity of direction etc. facilitate better utilisation of human efforts and physical resources.
(vi) Meeting environmental challenges: Every business operates in a dynamic environment. Changes in economic, social, political etc. create challenges for the business. The manager can apply the management principles suitably to deal with different situations.
E. LONG TYPE QUESTIONS ANSWERS (6/8 MARKS EACH)
41. Discuss the techniques/ elements of scientific management.
Ans: The techniques/elements of scientific management are discussed below:
(i) Scientific selection and training of workers: Taylor advised for proper selection of the workers and their training. Tests and interview should be used to judge the suitable person on the job. Employees are selected according to predetermined standards in an impartial way.
(ii) Functional foreman ship: In order to ensure specialisation at supervisory level. Taylor suggested functional foreman ship. Under this scheme there shall be eight specialists or functional bosses to supervise the activities of each worker. Out of these, four will be in the planning office and other four will be in the workshop or shop.
(iii) Specialization: Taylor suggested that scientifically selected and trained workers should be allocated the tasks according to their specialisation. Moreover, different functional bosses meet supervise each worker.
(iv) Standardization: Taylor advocated for standardisation of materials, tools, equipments, methods etc. Standardised working environment should also be provided to the workers. It will increase efficiency and eliminate or minimise wastage of resources. This will ultimately reduce cost of production.
(v) Experimentation or work study: The work for each worker must be determined through proper experiments or work-study.
The main areas of work study are as follows:
(a) Method study: It is a survey of production process. It aims to evolve the best method of doing a particular job by simplifying the production process, method etc.
(b) Time study: Time study is the process of recording the exact time taken for doing a job with a view to find a standard time for doing the job.
(c) Fatigue study: It is the study of the reduction of human energy or capacity in doing his job. It is caused by over-work without rest.” poor working conditions etc.
(d) Motion study: It aims at eliminating unnecessary motions and to find out the best method of doing a job efficiently.
42. Distinguish between Taylor’s scientific management and Fayol’s principles of management.
Ans: Differences between Taylor’s scientific management and Fayol’s principles of management are given below:
| Basis | F.W. Taylor | Henry Fayol |
| 1. Personality | Taylor is known as the father of Scientific Management. He was basically a scientist. basically a practitioner. | Fayol is known as the father of Functional Management or Mana gement process. He was |
| 2. Results | His efforts resulted in greater efficiency of shop and factory mana gement. | He gave more emphasis on the functions of man agers and the manage ment process as a whole. |
| 3. Applicability | Taylor’s scientific mana gement is applicable to industrial organisations only. | Fayol’s principles have universal application. |
| 4. Unity of command | He recommended functional foreman ship which violates unity of command one boss only. | He advocated unity of command so that each worker gets order from. |
| 5. Formation of principles | His principles are based on observation and experimentation. organisation. | His principles were drawn observation and wn from his personal experience of managing. |
43. Discuss five principles of management evolved by Henry Fayol.
Ans: The five principles of management evolved by Henry Fayol are discussed below:
(i) Unity of command: According to this principle, one employees should get command and orders from one manager or superior. If one employee is to get command from two or more managers then it will be confused for him that which command he will select.
(ii) Unity of direction: This principle state that there should be one head and one plan for a group of similar activities having the same objective. It means only one manager must direct similar activities under a particular plan.
(iii) Scalar chain: Scalar chain is a line of authority from top level to bottom. But due to scalar chain communication takes too much time as the order comes from top to bottom. The scalar chain should not be rigid. There should be provision for short circuiting the chain. This would allow quick communication and swift action. So, Fayol introduced “Gang Plank. The gang plank allows direct link between two employees of different departments. Thus facilitates quick communication. It would lead to better coordination by removing hurdles in the exchange of information between employees of two different departments.
(iv) Discipline: According to Fayol, discipline is absolutely essential for the smooth running of business. Without it no business can prosper.
He believed that discipline results from these things:
(a) Good leadership at all levels of the organisation.
(b) Fair agreement between the firm and its employees.
(c) Fairness in the application of penalties.
(v) Equity: According to this principles, the manager must install equality in the organisation. To ensure this, managers should be friendly, fair and kind, in dealing with their subordinates. It is because everyone likes equity in treatment. Equity brings loyalty and fosters good employee relations.
44. Distinguish between traditional and modern management.
Ans: The differences between traditional and modern management are given below:
(i) Traditional style of management is like military style of management like having very hard and rules and regulations, very hierarchical, organised etc.
Whereas modern style of management largely depends on soft skills like consensus building, relationships, listening and understanding etc.
(ii) Traditional organisation was very casual and goal oriented. The incentives and objectives could be clearly defined and the controlling was very easy.
Whereas in modern organisation emphasis on strategic management and takes the growth of the decentralised organisation into perspective.
(iii) Traditionally, management is defined as an art of getting things done through others.
Modern concept of management considers management as the process of utilisation of human resources and physical resources in such a manner that organisational objectives are achieved effectively and efficiently.
(iv) Traditional management does not give the functions which a manager has to perform to get results from others.
It performs the functions of planning, organising, staffing directing and controlling. Thus, management could be viewed as a process consisting of these functions.
(v) Traditionally, management did not lay emphasis on research and innovation.
Whereas, modern management has given more emphasis te research and innovation.
45. Explain five significance of principles of management.
Ans: The five significance/importance of principles of management are as follows:
(i) To attain social objectives: Management principles play at important role in better utilisation of resources, giving more satisfaction to the society and improving quality of life of people.
(ii) To carry on researches: Today management principles have become the basis of carrying on researches.
(iii) To increase managerial efficiency: Management principles provide guidelines as to how managers should function in different situation which in turn increase their efficiency.
(iv) Optimum utilisation resources: Several principles of management aim at optimum utilisation of all types of resources for the attainment of organisational goals. For instance, principle of division of work, discipline, unity of direction etc. facilitate better utilisation of human efforts and physical resources.
(v) Meeting environmental challenges: Every business operates in a dynamic environment. Changes in economic, social, political etc. create challenges for the business. The manager can apply the management principles suitably to deal with different situations
46. Explain in brief the principles of scientific management.
Ans: Four principles Taylor’s scientific management are giver below:
(i) Science not rule of thumb: This principle requires development and application of scientific methods. Taylor advocated that the traditional ‘rule of thumb methods should be replaced with the scientific methods. While the use of scientific method denotes precision in deterring any aspect of work, rule of thumb emphasised estimation.
(ii) Co-operation : Scientific management is based on mutual confidence and co-operation between management and workers. If there is understanding between management and workers. Then co-operation in achieved which is essential for smooth running of an enterprise.
(iii) Harmony not discord: There should be harmony (not conflicts) between the management and the workers. Taylor opinions that there should be group harmony refers that there should be mutual give and take and proper understanding so that group as a whole contributes to the maximum.
(iv) Maximum output: Scientific management aims at increase in production and productivity instead of restricted production either by management or by worker.
(v) Development of workers: One of the principles of scientific management is that all workers should be developed. Development workers is essential for the company’s prosperity. This would ensure greater efficiency and prosperity for both the company and the workers.
(vi) Equal division of responsibility between management and workers: There should be almost equal division of responsibility between the managers and the workers. The management should assume responsibility for the work for which it is better suited.
47. Explain whether Taylor’s techniques of scientific management are universally applicable giving examples of at least three techniques in support of your answer.
Ans: Yes, Taylor’s techniques of scientific management are universally applicable. Some of the techniques are given below:
(i) Scientific selection and training of workers: Taylor advised for proper selection of the workers and their training. Tests and interview should be used to judge the suitable person on the job.
Employees are selected according to predetermined standards in an impartial way.
(ii) Functional foreman ship: In order to ensure specialization a supervisory level. Taylor suggested functional foreman ship. Under this scheme there shall be eight specialists or functional bosses to supervise the activities of each worker. Out of these, four will be in the planning office and other four will be in the workshop or shop.
(iii) Specialization: Taylor suggested that scientifically selected and trained workers should be allocated the tasks according to their specialisation. Moreover, different functional bosses meet supervise each worker.
(iv) Standardization: Taylor advocated for standardisation of materials tools, equipments, methods etc. Standardised working environment should also be provided to the workers. It will increase efficiency and eliminate or minimise wastage of resources. This will ultimately reduce cost of production.
(v) Experimentation or work study: The work for each worker must be determined through proper experiments or work-study.
The main areas of work study are as follows:
(a) Method study: It is a survey of production process. It aims to evolve the best method of doing a particular job by simplifying the production process, method etc.
(b) Time study: Time study is the process of recording the exact time taken for doing a job with a view to find a standard time for doing the job.
(c) Fatigue study: It is the study of the reduction of human energy or capacity in doing his job. It is caused by over-work without rest, poor working conditions etc.
(d) Motion study: It aims at eliminating unnecessary motions and find out the best method of doing a job efficiently.Z
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