{"id":18630,"date":"2021-02-15T09:54:09","date_gmt":"2021-02-15T04:24:09","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=18630"},"modified":"2021-02-15T09:54:09","modified_gmt":"2021-02-15T04:24:09","slug":"ncert-solutions-for-class-12-business-studies-chapter-2","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-12-business-studies-chapter-2\/","title":{"rendered":"NCERT Solutions for Class 12 Business Studies Chapter 2 Principles of Management"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 12 Business Studies<\/a> Chapter 2 Principles of Management Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

Principles of Management NCERT Solutions for Class 12 Business Studies Chapter 2<\/h2>\n

Principles of Management Questions and Answers <\/span>Class 12 Business Studies Chapter 2<\/h3>\n

Multiple Choice Questions\u00a0<\/span><\/p>\n

Question 1.
\nPrinciples of Management are NOT
\n(a) Universal
\n(b) Flexible
\n(c) Absolute
\n(d) Behavioural
\nAnswer:
\n(c) Absolute.<\/p>\n

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Question 2.
\nHow are principles of Management formed ?
\n(a) In a loboratory
\n(b) By experiences of Managers
\n(c) By experiences of customers
\n(d) By propagation of social scientists.
\nAnswer:
\n(b) By experiences of Managers.<\/p>\n

Question 3.
\nThe principles of management are significant because of’
\n(a) Increase in efficiency
\n(b) Initiative
\n(c) Optimum utilisation of resources
\n(d) Adaptation to changing technology
\nAnswer:
\n(a) Increase in efficiency.<\/p>\n

Question 4.
\nHenri Fayol was a
\n(a) Social scientist
\n(b) Mining Engineer
\n(c) Accountant
\n(d) Production Engineer
\nAnswer:
\n(b) Mining Engineer.<\/p>\n

Question 5.
\nWhich of the following statement best describes the principle of ‘Division of Work’
\n(a) Work should be divided into small tasks
\n(b) Labour should be divided
\n(c) Resources should be divided among jobs
\n(d) It leads to specialisation
\nAnswer:
\n(a) Work should be divided into small tasks.<\/p>\n

\"NCERT<\/p>\n

Question 6.
\n‘She\/he keeps machines, materials, tools etc. ready for operations by concerned workers.’ Whose work is described by this sentence under functional foremanship
\n(a) Instruction card clerk
\n(b) Repair Boss
\n(c) Gang Boss
\n(d) Route clerk
\nAnswer:
\n(c) Gang Boss.<\/p>\n

Question 7.
\nWhich of the following is NOT a Principle of management given by Taylor?
\n(a) Science, not rule of the Thumb
\n(b) Functional foremanship
\n(c) Maximum not restricted output
\n(d) Harmony not discord
\nAnswer:
\n(b) Functional Foremanship.<\/p>\n

Question 8.
\nManagement should find ‘one best way’ to perform a task. Which technique of Scientific management is defined in this sentence
\n(a) Time Study
\n(b) Motion Study
\n(c) Fatigue Study
\n(d) Method Study
\nAnswer:
\n(d) Method study.<\/p>\n

\"NCERT<\/p>\n

Question 9.
\nWhich of the following statements best describes ‘Mental Revolution’?
\n(a) It implies change of attitude.
\n(b) The Management and workers should not play the game of one upmanship
\n(c) Both management and workers require each other.
\n(d) Workers should be paid more wages.
\nAnswer:
\n(a) It implies change of attitude.<\/p>\n

Question 10.
\nWhich of the following statement is FALSE about Taylor and Fayol
\n(a) Fayol was a mining engineer whereas Taylor was a mechanical engineer
\n(b) Fayol’s principles are applicable in specialised situations whereas Taylor’s principles have universal application
\n(c) Fayol’s principles were formed through personal experience whereas Taylor’s principles were formed through experimentation
\n(d) Fayol’s principles are applicable at the top level of management whereas Taylor’s principles are applicable at the shop floor.
\nAnswer:
\n(b) Fayol’s principles are applicable in specialised situations whereas Taylor’s principles have universal application.<\/p>\n

Short Answer Type Questions\u00a0<\/span><\/p>\n

Question 1.
\nHow is the principle of ‘Unity of command’ useful to management? Explain briefly.
\nAnswer:
\nUnity of Command:-
\nAccording to this principle, every employee should get orders and directions only from one superior and he should be accountable to that superior alone. It is essential to avoid duality of command. If a subordinate gets orders from two superiors, in such a situation he would not be able to decide which superior’s orders should be carried out first.<\/p>\n

The superiod whose orders are not carried out might become annoyed or develop a feeling of jealousy and bitterness towards the other superior. According to Fayol.” as soon as two superiors yield their authority over the same person or department, uneasiness makes itself felt.”<\/p>\n

Fayol further writes that if there are two or more superiors as regards any employee, it will only undermine authority, put discipline in jeopordy, disturb order and threaten stability of organisation.<\/p>\n

\"NCERT<\/p>\n

Question 2.
\nDefine scientific management. State any three of its principles.
\nAnswer:
\nScientific Management
\nThe Scientific Management school stimulated by F.W. Taylor and carried on by others through the years, suggested a totally revolutionary way of thinking about the problems of work and organizations. The Major theme of scientific Management was that work could be studied scientifically.<\/p>\n

Taylor retentlessly pursued the idea that efficiency at work could be improved through careful ‘scientific’ analysis. He advocated an inductive, empirical, detailed study of each job to determine the ‘one best way’ to organize work. The primary emphasis was on the application of scientific methods to the solutions of managerial and organizational problems. Tosi and Corroll summarized the principles of scientific management thus<\/p>\n

(i) Current Management practice was inefficient. Most scientific management writers believed that the way Management was practiced in their time was inefficient.<\/p>\n

(ii) Management must adopt the scientific methods in industry. The scientific methods involves solving problems by research rather than relying or experience or intuition. It demands evalution of alternatives by making systematic and objective comparisons among them to see which is best. Taylor and his colleagues believed there is ‘one best way’ to organize work and this could be ascertained through scientific method.<\/p>\n

(iii) Specialization should be practiced. Taylor advocated the division of the entire work of an organization into managerial and non-managerial categories. He favoured a complete separation of planning function from doing function. He proposed using specialization experts, called as functional foremen, each of whom was to be responsible for some specific portion of the worker’s job like inspection of work, ascertaining the machine speed etc. He firmly believed that vertical specialization would improve job performance.<\/p>\n

(iv) Planning and scheduling were essential. In scientific management everything was to be done according to a plan. To improve performance, plans for a whole organization were to be broken down into plans for smaller units, and even further to individuals. Writers like Gantt developed charts (Gantt chart) which helped a Manager to make optimum use of his resources by carefully schedulingjobs among available equipment and resources.<\/p>\n

Question 3.
\nIf an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?
\nAnswer:
\nWhen the organisation does not provide the right place for physical and human resources it violate the principles of division of work propounded by Henri Fayol. The Principle of division of work may be explained in brief as follows.<\/p>\n

Division of work<\/p>\n

This principle tells us that as far as possible the whole work should be divided into parts and each employee should be assigned only one part of the work according to his ability and attitude.<\/p>\n

When that employee performs that part of the work repeatedly, he will become specialised in doing that particular part of the work, consequently, the benefits of the specialisations will be achieved. According to Fayol, the principles of division of work is applicable to all kinds of work – technical as well as Managerial.<\/p>\n

\"NCERT<\/p>\n

Question 4.
\nExplain any four points regarding significance of Principles of management?
\nAnswer:
\nNeed and Importance of principles of Management : A principal is a fundamental statement of truth that provides a guide to thought and action. The technique and nature of Management may be based on the defined principles. By abiding the principles of Management a manager may escape from committing errors. The need and importance of Management principles may be highlighted in the following ways<\/p>\n

(i) To Increase the Managerial Efficiency :
\nThe principles of Management have been developed on the basis of experiences of professional Managers. These principles instruct a Manager as to how to act in various situations so that the mistakes committed by the previous Manager are not repeated. Application of Management principles avoid the need for trial and error-method. They ‘ can make decisions on the basis of predetermind principles and thereby increase the Managerial efficiency.<\/p>\n

(ii) Helpful in Managerial Training :
\nThe principles of Management present a detailed schedule of training for the new managers. By acquiring the knowledge as to which principle is to be used in a particular situation they can learn the art of Management quickly.<\/p>\n

(iii) To Improve Research :
\nThe principles of Management provide new ideas, new thoughts and new vision to managers and researchers. Since the principles are flexible in nature they motivate the managers to do further research in the field of Management and thus they are helpful in increasing the horizons of knowledge.<\/p>\n

(iv) Helpful in understanding the Nature of Management :
\nThe principles of management explain the nature and functions of Management. Thus, they are helpful in understanding the nature and functions of Management.<\/p>\n

(v) To Allain Social Goals
\nThe standard of living of the people in a society depends on the quality of Management. Only the development of Managerial principles enables more efficient utilisation of human and material resources. Thus, Management principles are helpful in the attainment of social and cultural goal such as better quality products at resonable rates, more employment opportunities, increase in wages etc.<\/p>\n

Question 5.
\nExplain the principle of ‘Scalar Chain’ and gang plank.
\nAnswer:
\nScalar chain According to the principle, there is a scalar chain of authority in the organisation which moves in a straight line from the highest authority to the lowest level subordinates. According.to Fayol each communication from top to lower level and vice versa should flow through each executive along the scalar chain. Fayol has explained this scalar chain with the help of the following diagram :
\n\"NCERT
\nAbove diagram depicts that A is the seniormost executive and BCDEFG and LMNOPQ are his subordinates. Normally, each communication from top to lower level will flow from A to B, B to C, C to D and will trickle down from F to G. Similarly, every communication from lower level to top will flow G to F, F to E, E to D and will finally reach A from B. If suppose F wants to communicative with P then according to scalar chain such a message will first reach A through E,D,C,B and then it will reach P through L,M,N,0.<\/p>\n

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According to Fayol the process of scalar chain results in unnecessary delay and if it is essential to communiate immediately, a gangplank may be created between F and P without breaking the scalar chain. This gangplank allows the two employees to communicate directly with each other, but for this it is necessary for F to take prior permission from his immediate superior E and similarly P has to take prior permission from his imediate superior Q, and each must provide the details of their conversations to these superiors.<\/p>\n

Long Answer Type Questions\u00a0<\/span><\/p>\n

Question 1.
\nExplain the principles of scientific Management given by Taylor?
\nAnswer:
\nTaylor\u2019s Scientific Management :
\nIt refers to an important stream of one of the earlier schools of thought of management referred to as the classical school. Taylor thought that by scientifically analysing work.it would be possible to find ‘one best way’ to do it. He believed that contemporary management was amateurish and should be studied as a discipline.<\/p>\n

He is known for coinage of the term scientific management’ In the words of Taylor, scientific management means “knowing exactly what you want men to do and seeing that they do it in the best and cheapest way” thus the principles are<\/p>\n

1. Science not Rule of Thumb
\nTaylor pioneered the introduction of the method of scientific inquiry into a domain of management practice. He believed that there was only one best method to maximise efficiency.<\/p>\n

This method can be developed through study and analysis. According to Taylor even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed. It will save time and energy both.<\/p>\n

2. Harmony, Not Discord
\nFactory system of production implied that managers served as a link between the owners and the workers. Taylor recognised that this conflict helped none the workers, the managers or factory owners. He emphasised that there should be complete harmony between the management and workers.<\/p>\n

To achieve this state Taylor called for complete mental revolution on the past of both. According to Taylor, “Scientific management has for its foundation the firm conviction that the true interests of the two are one and the same.”<\/p>\n

\"NCERT<\/p>\n

3. Co-operation, Not Individualism
\nThere should be complete cooperation between the labour and the management instead of individualism. This principle is an extension of principle of “Harmony not discord”. According to Taylor, ‘there should be an almost equal division of work and responsibility between workers and management.<\/p>\n

4. Development of Each and Every person to his or her greatest efficiency and prosperity Industrial efficiency depends to large extent on personnel competencies. As such scientific management also stood for workers development workers training was essential also to learn the “best method” developed the scientific approach. Thus each person should be scientifically selected, they should be given required training. Thus we can say that Taylor was an ardent supporter of use of scientific method in business.<\/p>\n

Question 2.
\nExplain the following Principles of management given by Fayol with examples
\n(a) Unity of direction
\n(b) Equity
\n(c) Espirit de corps
\n(d) Order
\n(e) Centralisation and decentralisation
\n(f) Initiative
\nAnswer:
\n(a) Unity of Direction
\nAccording to this principles, each group of activities having the same objective must have one head and one plan. Observance of this principles provides great help to the management in maintaining co-ordination among various functions of an organisations. Unity of direction is essential for achiveving unity of action. To ensure success in any group effort, it is necessary that authority for directing the group action is concentrated in just one person and above all, the entire group has the same plan to act upon, otherwise there would be duplication of activities and uncessary wastage of resources.<\/p>\n

(b) Equity
\nEquity implies that employees should be treated with justice and kindness. Managers should be fair and impartial in their dealings with subordinates. They should adopt a sympathetic and unbaised attitude towards employees. Equity helps to create cordial relations between management and employees and the employees become loyal to the organisation whereas partiality breeds frustrations which adversely affects their efficiency.<\/p>\n

(c) Espirit De corps or Team spirit
\nIt is a French word which means that there should be team spirit in the organisation. In other words, all the persons working in the organisation should have harmony and mutual understanding. Union is strength, unity in the staff is the foundation of success in any organisation. Management should not follow the policy of’divide and rule’ rather it should strive to maintain team-spirit and co-operation among employees so that they can work together as a team. According to Fayol only those organisations succeed where all the persons work unitedly as a group.<\/p>\n

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(d) Order
\nAccording to Fayol these are two aspects to an order namely material order and social order. Material order means, there should be a proper place for everything and everything should be in its proper place. Social order means, there should be proper place for everyone and everyone should be in his or her proper place. By following these two orders every person would know the exact place of his work and would know the place from where he would get the things needed by him.<\/p>\n

(e) Centralisation and decentralisation
\nEverything which increases the importance of subordinates role is decentralisation and everything that reduce the importance of subordinates role is centralisation. According to him there should be optimum degree of centralisation and decentralisation must be determined separately for each organisation according to its circumstances.<\/p>\n

Small firms for example, are likely to have absolute centralisation, because in this case the managers order are directly transmitted to subordinates. However, in the case of a large firm, there is lesser degree of centralisation because the manager’s order have to pass through a number of intermediaries to reach the subordinates. Management must, therefore, strike out a balance between centralisation and decentralisation.<\/p>\n

(f) Initiative
\nAccording to Fayol, each employee has natural capability of thinking out a plan, decision making and implementation of that plan, this is called initiative. Managers should utilise the initiative of their subordinate to the maximum extent. Employees at all levels should be given the opportunity to take initiative and exercise judgement in the formulation and execution of plAnswer:It develops the attitude of employees towards the plans.<\/p>\n

Question 3.
\nExplain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.
\nAnswer:
\nFunctional Organisation
\nThis form of organisational structure was originated by F.W. Taylor, to bring about specialization in management. According to Taylor, “The functional organistion consists of so dividing the management that each man, down from the assistant suprentendent, shall have as few functions as possible to perform. If practicable, the work of each man in the management should be confined to the performance of single leading function”.<\/p>\n

Taylor believes that a foreman is not a specialist in all the fields. He can be made only to execute the work. Thus functional organistion is based on the concept of F.W. Taylor’s “Functional Foremanship” under which instead of foreman, the whole work in the factory is controlled and guided by eights-specialists : four concerned with planning of work at the office level and four with its execution at the factory level.
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Mental Revolution
\nTaylor described, “The really great problem” involved the change “consists of the complete revolution in the mental attitude and habits of all those engaged in the management, as well of workmen.<\/p>\n

Mental revolution involves a change in the attitude of the workers and management towards one another from completion to cooperation. Both should realise that they require one another. Both should aim to increase the size of surplus. This would eliminate the need for any agitation.<\/p>\n

Management should share the part of surplus-with workers. Workers should also contribute their might, so that company makes profits. This attitude will be good for both of them and also for the company. In the long run only worker well-being will ensure prosperioty of the business.<\/p>\n

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Question 4.
\nDiscuss the following techniques of Scientific Work Study
\n(a) Time Study
\n(b) Motion Study
\n(c) Fatigue Study
\n(d) Method Study
\n(e) Simplification and standardisation of work
\nAnswer:
\n(a) Time Study
\nIt determines the standard time taken to perform a well-defined job. Time measuring devices are used for each element of task. The standard time is fixed for the whole of the task by taking several readings. The methods of time study will depend upon volume and frequency of the task, the cycle time of the operation and time measurements costs.<\/p>\n

The objectives of time study is to determine the number of workers to be employed, frame suitable incentives schemes and determine labour costs. For example on the basis of several observation it is determined that standard time taken by the worker to make one cardboard box is 20 minutes. So in one hour she\/he will make 3 boxes.<\/p>\n

Assuming that a worker has to put in 8 hours of work in a shift and deducting one hour rest and lunch it is determined that in 7 hours a worker makes 21 boxes @ 3 boxes per hour. Now this is the standard task a worker has to do. Wages can be decided accordingly.<\/p>\n

(b) Motion study
\nMotion study refers to the study of movements like lifting, putting objects, sitting and changing positions etc. which are undertaken while doing typical job. Unnecessary movements are sought tp be eliminated so that it takes less time to complete the job efficiently For example Taylor and his associate Frank Gail Berth were able to reduce motions in brick layering from 18 to just 5.Taylor demonstrated that productivity increased to about 4 times by this process.<\/p>\n

On close examination of body motions for example it is possible to find out<\/p>\n