Business Studies Question Bank

Part A:

Commerce Department
SANSKRITI SCHOOL

Principles & Functions of Management

Principles of Management
Sample paper1 (5+1+1)

Ques1

Explain the foll: principles:

(i)Equity
(ii)Remuneration of employees

Ques2

The principles of management are different from those used in pure

science. Write any one difference.

Any one of the following differences :

(i) Principles of management are not as rigid as Principles of pure sciences.
(ii) Principles of management deal with human behavior and cannot be tested in
laboratories like the Principles of pure science.
(iii) Principles of management are general guidelines where as Principles of
Pure Science are specific. (1 Mark)

Ques3

Why is it said that management principles are universal.

Sample paper2 (5+1+1)

Ques1

Name and explain that principle of Fayol which suggests that

communication from top to bottom should follow the official lines of
command.

Ques2

List any two principles of Scientific Management formulated by Taylor for

managing an organization scientifically.

Ques3

Different techniques were developed by Taylor to facilitate principles of

scientific management. One of them is Fatigue study. What is the objective
of this study?

Ques 4

In your school, you observe that books are kept in office, chalks in the
library and office records in the staffroom. How will that affect the
achievement of school objectives? Which aspect of management is lacking
here and why? As a manager, what steps will you take to rectify the short
comings?

The aspect of management lacking is organising/ principle of order.

In the absence of orderliness, school objectives will not be achieved
efficiently& effectively.
Things should be placed at appropriate places to achieve maximum
efficiency within given time framework
(1+2+2)

Page 1 of Question Bank- Chapter 2 Class XII

Other Questions
1)

Principles of management are different from that of pure sciences. Give any one difference.

2)

What is the premise of scientific management?

(that there is only one best way of doing a job)

3)

Give the name of any two specialists suggested by Taylor in his technique of Functional
Foremanship.

4)

Which principle is violated in the following situations?

a.

When a manager grants one months medical leave with pay to supervisor and only one
weeks medical leave to an accountant.
b. When the worker is wasting time looking for a toolbox in the factory.
c. When a worker receives orders from 3 supervisors.
d. If employees break their promise of working upto their full potential.
e. A purchase manager purchases raw materials from his son who is a supplier at a rate that is
higher than the market rate.
f. A sales man suggests a new advertising technique to his sales manager but the manager
ignores hi suggestion and sends him away.

1
each

5)

An organisation follows the principle of Espirit de Corps. What are the possible positive effects of
this principle on the firm?

6)

List any two principles of administrative management formulated by Fayol.

Parity of authority and responsibility; Unity of command; Unity of direction and Stability of tenure.

7)

Mohan, a manager expects his subordinates to adapt to the new environs and working conditions
without giving them time to settle down. Which principle of management is being overlooked and
why?

8)

The subordinates in a company receive orders regarding their work from different operative heads
for the same task. Which principle of management is overlooked and why?

9)

Mohan, a manager expects his subordinates to work for the pleasure of being in the organization.
Which principle of management is being overlooked and why?

10) Mohan, a manager does not distribute the work amongst his subordinates either according to
capability or proportionately. Which principle of management is being overlooked and why?

11) Mohan, a manager, very often speaks to people at all levels, passing on instructions regarding his
department and also other departments. Which principle of management is overlooked and why?

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

13) The production manager of Bharat Ltd. Instructs a salesman to go slow in selling the product..
Whereas the marketing manager is insisting on fast selling to achieve the target. Which principle of
management is being violated in this case? State any one of the foll: consequences of violation of this
principle.

Page 2 of Question Bank- Chapter 2 Class XII

14) The production manager asks the foreman to achieve a target production of 200 units per day. But
he does not give him the authority to requisition tools and materials from the stores department.
Can the production manager blame the foreman if he is not able to achieve the desired target?
Explain briefly the principle relating to the situation.

15) It has been observed that the prevailing situation in an organization is due to violation of the
principle of order. What might have been the prevailing situation?

16) Bhuvan ltd. was engaged in the business of garment manufacturing and selling its products under a
popular brand. The demand for their product was increasing. In order to keep their market share in
the short run, the company directed its existing workforce to work overtime but this resulted in
many problems. Due to increase in the 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 product. This resulted in a lot of
overlapping and wastage. The workers were becoming indisciplined. Team spirit was also reducing.
Workers were feeling cheated and their morale was declining. The quality of garments stated
declining and the market share decreased. Based on this case, answer the foll; questions:
(a) Identify which principles of Fayol were violated in the above case?
(b) What steps should be taken by the company to restore its reputation?

17)

Why does the principle of Unity of Command not hold good in case of Functional
Foremanship?
What contradictions do you find in the principle of Unity of command and the technique of
functional Foremanship?

18) How can Fayols principles of Equity and order be applied in a work situation?

19)

Why did Fayol introduce the concept of Gang Plank in relation to the principle of Scalar Chain?
What light does this throw on the nature of management principles?

20) Which principle is violated

a. if a subordinate is asked to receive orders from two seniors?
b. If a person is shifted from his job position frequently?
Give any two adverse effects that a firm may face due to such violation.

21) Which principle suggests:

a. That employee should be treated with kindness and justice?
b. That employee should not be moved from one position to another frequently?

Why is this principle essential in management? OR

Give the adverse effects of not following this principle.

22) How does the technique of motion study help to improve the efficiency of workers?

Page 3 of Question Bank- Chapter 2 Class XII

23) The directors of A ltd, a firm manufacturing computers, have asked their production manager to
achieve a target production of 150 computers per day. The production manager, in turn, has asked
his foreman to achieve this target. However, he has not given the foreman the authority to
requisition tools and materials from the stores department. The foreman could not achieve the
target.
Can the production manager blame the foreman for not achieving the target?
Can the directors blame the production manager for not achieving the target?
Explain the relevant principle relating to the situation in support of your answer.

24)

How do the principles of scalar chain and Unity of Command help in solving problems faster?
How are the principles of scalar chain and Unity of Command useful to managers?

25) What are the aims of Time and motion studies?

26)

Scientific management is a clever device for the exploitation of labor. Do you agree? Give
reasons in support of your answer.
Explain why Scientific Management is resented by workers.
The principles underlying scientific management are disadvantageous to both employers and
employees. Do you agree? Give reasons in support of your answer.
The principles underlying scientific management are advantageous to both employers and
employees. Do you agree? Give reasons in support of your answer.

27) Differentiate between Unity of Command and Unity of Direction.

28) Explain Standardization and Simplification.

29)

If you are a planning manager setting up the Standard task in an organisation, which study will
you conduct first- Time or Motion Study- and why.

(TS= determine standard time for performing a job. MS=curtail unnecessary movement while doing a job. Therefore, MS
precedes TS as standard time will be determined on the basis of movements required for performing the activity in the most
efficient manner.)

How do Time and Motion Studies improve efficiency of workers?

(TS fix standard time reqd to do a particular task and so create time consciousness and lays down a fair days work. MS
reduces wasteful movements and thus saves time and reduces fatigue)

30) Explain the adverse effects of violation of :

31)

a. Division of labour
d. Order
b. Unity of command
e. Fair remuneration
c. Stability of Tenure
Management principles have the features of universality coupled with flexibility. Explain.
Management principles are flexible and not absolute and must be used with in the light of
changing and specialized conditions. Explain.

3
Each

(For these questions, give examples to explain the points)

32) It has been observed that the prevailing situation in the organisation is due to the violation of the
principle of order/ Unity of command etc. What may have been your observation?

Page 4 of Question Bank- Chapter 2 Class XII

33) In an organisation, the global operations manager was also given the task of looking after domestic
operations. Which principle is being overlooked here? Explain this principle.

(division of work)
34) Mudit, a new entrant in the industry with an engineering degree joined an organisation. The top
level management offered him very low pay. Which principle is being overlooked here and how
will it affect Mudit.

( fair remuneration)
35) Sudha, a young entrepreneur, started her career in biotechnology extracting enzymes from fruits for
the treatment of various diseases. Being a sole proprietor, she used to take all decisions herself. But
when the organisation grew, she continued with this practice as a result of which important
decisions got delayed. Which principle of management is being disregarded here? Explain it.

( Centralization and decentralization)

36)

Do you agree that Taylors principles of Scientific Management and Fayols principles of
management are complementary? Give reasons.
Give a comparative study of the contributions made by Taylor and Fayol to the field of
management.

37) Explain whether Taylors techniques of management are universally giving at least 3 techniques in
support of your answer.

(No. they can only be applied to manufacturing enterprises where individual workers contribution to the total output can be
identified. They are not applicable to the managerial positions, service industry, assembly line manufacturing units or skill
based work. )

38) How do techniques of Scientific management improve the efficiency of workers?

(Define Sc Mgt+ give examples of specific techniques and how they improve efficiency)

39) Name and explain the wage payment method recommended by Taylor with the help of an example.

(Differential Piece Rate System)

40)

Explain the significance of management principles.

Proper understanding of management principles is necessary for managers.
Proper understanding of management principles would make managers take a more realistic
view of any situation.
Bring out the need for management principles.

41) Bring out Henri Fayols contribution to the science of management.

42) Factory owners or managers relied on personal judgment in attending to the problems they
confronted in the course of managing their work. Which principle of Taylor is it referring to ?
Ans. 'Rule of thumb'

43) Explain the objectives of standardization.

Ans. Standardisation is done for the following reasons:
(i) To ensure that a given product range has fixed types, sizes, characteristics etc.
(ii) To bring about interchangeability, for manufactured parts, output, developments etc. among
various branches.
(iii) To set uniform standards of performance for men, machines etc.

Page 5 of Question Bank- Chapter 2 Class XII

44) How do management principles ensure optimum utilization of resources and effective
administration? - 3 or 4 Mark
Ans. In every organization, resources such as men, machine, material and money play a vital role.
Management principles are designed in such a way that maximum benefits from t h e s e resources
can b e a c hi e ve d w i t h m i n i m u m re s ou r ce w a s t a g e . Along with this, the principles of
management also help in establishing effective administration bylimiting the boundary of anagerial
discretion that their decisions may be free from personal biases.
For example, while deciding the annual budget for different departments, a manager is required to
follow t h e principle of contribution t o organisational objectives and not personal preferences.

Page 6 of Question Bank- Chapter 2 Class XII