PYQ 2 - Learning Business Studies
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    VERY SHORT ANSWER QUESTIONS (1 or 2 Marks)

    QUESTION 1:
    State the role of 'Gang Boss' in functional foremanship.

    Answer: Gang boss has to ensure that all the required material are available for workers to start
    the work. He has to report to the production in charge as per functional foremanship.

     QUESTION 2:
    What is meant by Management principles?

    Answer. Principles of management are broad and general guidelines for managerial decisionmaking
    and behavior.

     QUESTION 3:
    State the technique of scientific management which is the strong motivator for a worker to
    reach standard performance.

    Answer: Differential piece wage system.

     QUESTION 4:
    State the role of 'route clerk' in functional foremanship.
    CBSE Board 2016
    Answer: Route clerk is the person who work under the planning in charge & responsible for
    showing the route of production.

     QUESTION 5:
    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?

    Answer: 'Rule of thumb'

     QUESTION 6:
    What do you mean by Mental Revolution?

    Answer: Mental Revolution means revolutionary change in the attitude of both workers and
    managers

     QUESTION 7:
    Name the organizational structure which helps in increasing managerial and operational efficiency. 
    (CBSE 2016)
    Answer: Functional structure helps in increasing the managerial & operational efficiency.

     QUESTION 8:
    A company manufacturing motorcycles and cars should have separate divisions for both,
    headed by separate divisional managers, separate plans and resources. Identify the principle
    with the help of this example.

    Answer. Unity of Direction

     QUESTION 9:
    The directors of XYZ limited, an organization manufacturing computer, want to double the
    sales and have given the responsibility to the sales manager. The sales manager has no
    authority either to increase sales expense or appoint new salesmen. Hence, he could not
    achieve this target. Identify the principle violated in this situation.

    Answer: Principle of Authority and Responsibility

     QUESTION 10:
    Who Suggested the concept of functional foreman ship?

    Answer: F.W.Taylor.

     QUESTION 11:
    A subordinate receives order from more than one boss’. Which principle in violated?

    Answer: Unity of command.

     QUESTION 12:
    Hina & Hitesh are typists in a company having the same educational qualification. Hina is
    getting Rs. 3000 per month $ Hitesh is getting Rs 4000 per month as salary for the same work
    hours .Which principle of management is violated in this case? Name the principle $ explain it.

    Answer: In this case, the ‘Principle of Equity’ is violated .As both are working in same job position,
    possessing same qualification they must be paid same salary.

     QUESTION 13:
    What is meant by flexibility of principles of management?

    Answer: The principles of management are not rigid. They can be modified by the manager when
    the situation so demands.

    SHORT ANSWER QUESTIONS (3 or 4 Marks)

    QUESTION 14:
    Explain why is it said that principles of management are 'mainly behavioural' and 'contingent' in nature. Also explain how principles of management 'provides managers with useful insights into reality' and 'helps in thoughtful decision-making'.
    (CBSE 2016)
    Answer: Principles of management are 'mainly behavioural', 'contingent' in nature and 'provides
    managers with useful insights into reality' and 'helps in thoughtful decision-making'. These points
    have been explained below.
    1. Mainly behavioural: The principles of management are 'mainly behavioural' in nature as
    management principles aim at influencing individuals, and their applicability vary as per human
    nature. Besides this, these principles provide an understanding of the relationship between
    individuals and material resources so that organisational objectives can be achieved.
    2. Contingent: Their applicability depends upon the prevailing situation at a particular point of
    time. The application has to be changed as per the situation.
    3. Formed by practice and experimentation: Principles of Management are based on years of
    experimentation and experience. Thus, these principles guide the managers, when they face the
    real world problems. Managers can use them in different situations to solve the problems, which
    are of recurring nature.
    4. Cause and Effect relationship: Decisions regarding management should be taken carefully.
    They should be based on reasons and facts. As principles of management were developed from
    real life problems so, they stand the test of logic and reasoning. Thus, principles of management
    help the managers in taking logical decisions that are free from personal bias.

     QUESTION 15:
    Explain the principles of scientific management.

    Answer:
    1. Science, not rule of Thumb As per Taylor the work /task should not be performed by ‘hit
    or miss method, rather a logical and a rational approach should be followed in each and
    every element of work. We should be constantly experimenting to develop new
    techniques, which make the work much simpler, easier and quicker.
    2. Harmony, not discord : There should be complete harmony between management and
    workers in achieving organizational goals. It implies that there should be mental
    revolution on the part of managers and workers in order to respect each other’s role and
    eliminate any class conflict to realize organizational objectives.
    3. Cooperation, not individualism : According to this principle, all the activities in the firm
    should be carried out by the mutual cooperation of one and all. Managers and employees
    should jointly determine standards and take measures to achieve them.
    4. Development of each and every person to his or her greatest Efficiency and Prosperity:
    As per this principle each and every employee should be given importance, their efficiency
    should be taken care of right from the beginning by giving proper training to them and
    increase and enhance their future prospect.

    QUESTION 16:
    Explain briefly 'discipline' and 'scalar chain' as principles of general management.
    CBSE BOARD 2017

    Answer:
    (i) Discipline: Discipline implies that an organisation should follow the rules and regulations and
    ensure conformity to the set rules and policies. Discipline requires good supervisors at all levels,
    clear and fair agreements and judicious application of penalties.
    (ii) Scalar chain: Scalar chain refers to a pre-defined, formal path of authority and communication
    in the order of the highest to the lowest. Every individual in an organisation follows this chain of
    authority for communication.

     QUESTION 17:
    Sanchit, after completing his entrepreneurship course from Sweden returned to India and
    started a coffee shop 'Aroma Coffee Can' in a famous mall in New Delhi. The specialty of the
    coffee shop was the special aroma of coffee and wide variety of flavors to choose from.
    Somehow, the business was neither profitable nor popular, Sanchit was keen to find out the
    reason. He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the
    causes for the same. Sandhya took feedback from the clients and found out that though they
    loved the special unique aroma of coffee but were not happy with the long waiting time being
    taken to process the order. She analyzed and found out that there were many unnecessary
    obstructions in between which could be eliminated. She fixed a standard time for processing
    the order. She also realised that there were some flavors whose demand was not enough. So,
    she also decided to stop the sale of such flavors. As a result with in a short period Sandhya was
    able to attract the customers. Identify and explain any two techniques of scientific
    management used by Sandhya to solve the problem.
    CBSE BOARD 2017
    Answer:
    The techniques of scientific management used by Sandhya to solve the problem are:
    (a) Standardization of work: Standardization of work implies setting milestones or benchmarks
    for any work or activity. It aims at establishing standards of excellence against which actual
    performance can be measured. Standards are to be followed by the managers and workers in the
    production process, and standardization has the objective of ensuring that the final product is of
    fixed size, characteristic and quality. Various other techniques given by Taylor, such as method
    study, fatigue study and time study, are based on the concept of standardization.
    (b) Simplification of work: Simplification of work involves eliminating the unnecessary
    diversifications in the production terms of variety, size and dimension. It aims at fuller utilisation
    of the resources, reducing the inventories and increasing the turnover. It also helps in reducing
    the costs of labour and machines. Along with this, simplification aims at removing the
    unnecessary steps involved in a process to achieve efficiency.

     QUESTION 18:
    Explain briefly 'Unity of Direction' and 'Order' as principles of general management.
    CBSE BOARD 2017
    Answer:
    (i) Unity of Direction: According to this principle, each unit of the organisation should work
    towards a common objective. According to it, units having same goals should have a single head
    and plan. This principle helps in eliminating the overlapping of work. For example, if an
    organisation is engaged in the manufacturing of two products, then each products should have
    its own separate department and divisions with their respective heads and plans.
    (ii) Order: Orderliness principle focuses on right arrangement of things. Everything and everyone
    should be at their respective places, in short 'right people at right place and at right time'. This
    helps in carrying out the tasks smoothly. For example, if important documents are kept in a
    certain order then it will help in locating these files easily when required. Violation of this
    principle leads to chaos and delay in work.

     QUESTION 19:
    How are management principles derived?
    OR
    "Management principles are evolutionary." Explain.
    OR
    "Derivation of management principles may be said to be a matter of science." Explain.

    Answer: Management principles have emerged gradually, through an evolutionary process of
    combining deep observations and experimental studies.
    (i) Observation method
    Under this method, managerial researchers to derive management principles observe and
    analyze practical events. For example, it was observed that by dividing the work into different
    units, efficiency of employees improved. As a result, it led to formulation of principle of 'division
    of labor'.
    (ii) Experimental method
    Under this method, experiments are conducted so that management principles can be derived
    and their validity can be tested. For example, two units, one unit involving one superior and one
    subordinate and other unit involving two superiors and one subordinate, were taken. It was
    found that unit having one superior and one subordinate performed better. As a result, it led to
    formation of principle of "unity of command." From the above it can be concluded that
    observations and experiments result in the formulation of management principles, which
    therefore are evolutionary. Hence, derivation of management principles can be said to be a
    matter of Science. It is worth mentioning here that even though derivation of management
    principles is a matter of science; their application remains a matter of art. The success of
    managers depends upon how skillfully they put these principles into practice.

     QUESTION 20:
    ‘Discipline is double-edged tool’ Comment.
    Answer: Discipline is a double-edged tool. It is expected to strike a balance between, forcing the
    discipline on one hand and motivating employees on the other. Personnel entrusted with
    enforcing it are expected to be competent and capable of achieving this balance. Employees must
    honor the commitment made by them and management must meet its promises to increase
    wages declaration of bonus etc.

    LONG ANSWER TYPE QUESTIONS (5 OR 6 MARKS)

    QUESTION 21:
    Explain the Features of the principles of Management.

    Answer:
    Management principles are the statements of basic truths, which have the ability to predict the
    result of managerial activities. Following are the features:
    1. Universal applicability: The principles are universal in nature. Universality refers to the truth,
    which is equally applicable in all the spheres. All Business units such as Industries and non
    business units such as educational institutions has to apply more or less the same principles in
    order to achieve their objectives.
    2. General guidelines: The principles of management are not definite and specific like the
    principles of science. The principles of management cannot be applied blindly anywhere and are
    not applied strictly.
    3. Formed by practice and experimentation : Principles of management are the result of the
    various problems faced by the professionals. As the problems arises research is easily done,
    through observation and continuous experimentations.
    4. Flexibility: The principles of management are flexible as they can be changed according to the
    situation in hand . As there is the change in the environment, new kinds of problems arise and so
    the principles are altered and the new ones are propounded.
    5. Relationship between cause and effect: The principles of management establish the relation
    between the cause and effect. For e.g. If unity of command is followed, it avoids confusion among
    the employees. In this statement, Unity of command is the cause and avoidance of confusion is
    the effect.
    6. Contingent: Management principles are contingent in nature, which means, they are not
    permanent as they are affected by the changes in the business environment.

     QUESTION 22:
    Explain why is it said that principles of management are 'mainly behavioural' and 'contingent'
    in nature. Also explain how principles of management 'provides managers with useful insights
    into reality' and 'helps in thoughtful decision-making'.

    Answer: Principles of management are 'mainly behavioural', 'contingent' in nature and 'provides
    managers with useful insights into reality' and 'helps in thoughtful decision-making'. These points
    have been explained below.
    1. Mainly behavioural: The principles of management are 'mainly behavioural' in nature as
    management principles aim at influencing the behaviour of individuals, and their applicability
    vary as per human nature. Besides this, these principles provide a understanding of the
    relationship between individuals and material resources so that organisational objectives can
    be achieved.
    2. Contingent: Management principles are also contingent in nature as they can be used in
    different situations depending upon the nature of the manager and the requirement of the
    situation.
    3. Provides managers with useful insights into reality: Principles of Management are based on
    years of experimentation and experience. Thus, these principles guide the managers, when they
    face the real life problems. Managers can use them in different situations to solve the recurring
    problems.
    4. Helps in thoughtful decision-making: Decisions regarding management should be taken
    carefully. They should be based on reasons and proofs rather than beliefs and ignorance. As
    principles of management were developed from real life problems so, they stand the test of logic
    and reasoning. Thus, principles of management help the managers in taking logical decisions that
    are free from personal bias.

     QUESTION 23:
    Explain the importance of management principles.
    Answer: The importance of management principles can be understood by considering the
    following points:
    1. Providing managers with useful insights into reality: Principles of management help in
    increasing managerial efficiency by adding to their knowledge and ability to understand
    the various situations more objectively.
    2. Optimum Utilization of Resources and effective administration: Management principles
    help in organizing various activities in such a way that results in elimination of unwanted
    activities and consequent wastage. Management principles help in managing
    organizations effectively. For example, Unity of Command helps to avoid confusion and
    conflicts Unity of Direction ensures unity of actions to facilitate coordination.
    3. Scientific decisions: They help the mangers in taking the decisions based on the objective
    assessment of a situation. Thus, decisions taken are logical and free from any bias and
    prejudice
    4. Meeting changing environment requirements: Though the principles are only guidelines
    for action, yet they can be modified according to the need of changing situations. Thus,
    principles of management help in meeting changing requirements of the environment.
    5. Fulfilling social responsibilities: Principles of management have been devised in such a
    way that they help in fulfilling social responsibilities.
    6. Management training, education and research: Principles of management are used as a
    basis for management training, education and research.

     QUESTION 24 :
    Discuss the differences between the contributions of Taylor and Fayol.

    QUESTION 23:
    Discuss the following techniques of Scientific Work Study:
    (a) Time Study
    (b) Motion Study
    (c) Fatigue Study
    (d) Method Study
    (e) Simplification and standardisation of work.

    Answer :
    (a) Time Study- In this technique Taylor emphasised on setting a standard time limit for
    completing any particular 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 method of time
    study will depend upon volume and frequency of the task, the cycle time of the operation and
    time measurement costs. The objective of time study is to determine the number of workers to
    be employed; frame suitable incentive schemes and determine labour costs. For example, if, on
    the basis of observations it is determined that one person can finish making 1 shirt in two hours
    then, in a working day of 8 hours, each worker should make 4 shirts.

    (b) Motion Study- As the name suggests, motion study refers to the study of motion
    (movements) involved while undertaking a task. This technique aims at removing the unwanted
    actions/motions so that the work can be completed in a lesser time. Taylor along with his
    associate Frank Gailberth observed the motions of a worker and categorized them as productive,
    incidental and unproductive. They demonstrated that by eliminating the unproductive
    movements productivity can be increased. For example, in brick layering they demonstrated that
    productivity increased by nearly 4 times by reducing the motions from 18 to 5.

    (c) Fatigue Study- This technique is regarding requirement of rest or break during the work. If a
    worker works continuously physical and mental fatigue sets. This reduces his/her efficiency.
    Thus, the worker requires rest or break. Fatigue study identifies the intervals required while
    completing a task. It suggests that standard break timings should be decided for improving the
    working performance of workers.

     (d) Method Study- This study aims at finding out the best method of completing any work. It
    takes into account each and every activity involved in the task. It helps in reducing the costs and
    maximizing the satisfaction of the customers. Assembly line production, used by Ford Motors is
    a popular example of method study.

     (e) Simplification and Standardisation of Work- Taylor holds up standardisation as the very basis
    of techniques of scientific management. Standardisation as the word suggests implies setting of
    milestones or benchmarks for any work or activity. Various other techniques by Taylor, such as
    method study, fatigue study and time study are also based on the concept of standardisation.
    The objectives of standardisation are:
    (i) To reduce a given line or product to fixed types, sizes and characteristics.
    (ii) To establish interchange ability of manufactured parts and products.
    (iii) To establish standards of excellence and quality in materials.
    (iv) To establish standards of performance of men and machines.

    Simplification on the other hand means eliminating any unnecessary diversifications in the
    product. It aims at fuller utilisation of the resources, reducing inventories and increasing the
    turnover. It helps in reducing the costs of labour and machines. This technique helps in optimum
    utilisation of resources and removes the unnecessary costs.

    Question 1.
    Explain ‘unity of command’ and ‘equity’ as principles of general management. (CBSE, Delhi 2017)
    Answer:
    1.    Unity of command: According to Fayol, there should be one and only one boss for every individual employee. Dual subordination should be avoided. Fayol felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”.
    2.    Equity: According to Fayol, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible.” This principle emphasizes on kindliness and justice in the behaviour of managers towards workers. The managers should not discriminate against anyone on account of gender, religion, language, caste, belief or nationality etc.
    Question 2.
    Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop ‘AromaCoffeeCan’ in a famous mall in New Delhi. The speciality of the coffee ship was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the causes for the same.
    Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions in between which could be eliminated. She fixed a standard time for processing the order.
    She also realised that there were some flavours whose demand was not enough. So, she also decided to stop the sale of such flavours. As a result with in a short period Sandhya was able to attract the customers.
    Identify and explain any two techniques of scientific management used by Sandhya to solve the problem. (CBSE, Delhi 2017)
    Answer:
    The two techniques of scientific management used by Sandhya to solve the problem are: (any two)
    1.    Time study: It seeks to determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed , frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of task the standard time is fixed for the whole of the task by taking several readings.
    2.    Simplification (Standardisation and Simplification): Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring optimum utilisation of resources.
    3.    Motion study: Motion study refers to the study of movements of limbs of a worker while doing a particular task. It seek to divide all such movements into three categories namely;
    ·         Motions which are required
    ·         Motions which are unnecessary
    ·         Motions which are incidental.
    Thus, motion study helps to eliminate unnecessary movements of a work and enables him to complete the given task efficiently.
    Question 3.
    Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management. (CBSE, Delhi 2017)
    Answer:
    1.    Discipline: Discipline refers to the obedience to organisational rules and employment
    agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. .
    2.    Scalar chain: According to Fayol the formal lines of authority from highest to lowest ranks are known as scalar chain. He suggests that the,”Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” However in order to ensure speedy communication during emergencies, Gang Plank is a shorter route that has been provided . However, the superior has to be informed later on.
    For example in the following case there is one head ‘A’ who has two lines of authority under her/ him. One line consists of B-C-D- E-F. Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who is at the same level of authoritythen she/he has to traverse the route E-D-C-B-A-L-M-N-O. This is due to the principle of scalar chain being followed in this situation. However, if there is an emergency then ‘E’ can directly contact ‘O’ through ‘Gang Plank’ as shown in the diagram. But they should inform their superiors about it later on.
    Question 4.
    Explain ‘order’ and ‘initiative’ as principles of general management. (CBSE, Delhi 2017)
    Answer:
    1.    Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. A sense of orderliness will lead to increased productivity and efficiency in the organization.
    2.    Initiative: Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
    Question 5.
    Explain briefly ‘Unity of Direction’ and ‘Order’ as principles of general mangement. (CBSE, OD 2017)
    Answer:
    1.    Unity of direction: According to Fayol, each group of activities having same objective
    must have one head and one plan. It prevents overlapping of activities. For example if a company is manufacturing handmade carpets as well as machine made carpets there is likely to be 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.
    2.    Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. A sense of orderliness will lead to increased productivity and efficiency in the organization.
    Question 6.
    Explain briefly ‘Initiative’ and ‘Esprit de Corps’ as principles of general mangement. (CBSE, OD 2017)
    Answer:
    1.    Initiative: Initiative means taking the first step with self-motivation. The workers should’ be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
    2.    Espirit de corps: According to Fayol, ‘Management should promote a team spirit of unity and harmony among employees.” A manager should replace T with ‘We’ in all his conversations with workers to promote teamwork. This approach is will give rise to a spirit of mutual trust and belongingness among team members. It will also reduce the need for using penalties.
    Question 7.
    Explain briefly ‘Remuneration of Employees’ and ‘Scalar Chain’ as principles of general mangement. (CBSE, OD 2017)
    Answer:
    1.    Remuneration of employees: According to Fayol, the overall pay and compensation should be fair and equitable to both employees and the organisation. The employees should be paid fair wages so that they are able to maintain at least a reasonable standard of living. At the same time it should be within the paying capacity of the company. This will ensure pleasant working atmosphere and good relations between workers and management.
    2.    Scalar chain: According to Fayol, the formal lines of authority from highest to lowest ranks are known as scalar chain. He suggests that the,”Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” However in order to ensure speedy communication during emergencies, Gang Plank is a shorter route that has been provided . However, the superior has to be informed later on.
    For example in the following case there is one head ‘A’ who has two lines of authority under her/him. One line consists of B-C-D- E-F.
    Another line of authority under ‘A’ is L-M-N- O-P. If ‘E’ has to communicate with ‘O’ who is at the same level of authority then she/he has to traverse the route E-D-C-B-A-L-M-N-O.
    This is due to the principle of scalar chain being followed in this situation. However, if there is an emergency then ‘E’ can directly contact ‘O’ through ‘Gang Plank’ as shown in the diagram.
    Question 8.
    What did Taylor want to communicate through mental revolution? (CBSE, Sample Paper, 2017)
    Answer:
    Through the concept of mental revolution Taylor emphasized that there should be complete transformation in the outlook of the management and workers towards each other. Managers should share surplus with workers and the workers should work with full devotion instead of indulging in any form of class conflicts.
    Question 9.
    Briefly explain work study techniques that help in developing standards to be followed throughout the organization.
    Answer:
    The various work study techniques that help in developing standards to be followed throughout the organization are described below:
    1.    Time study: It seeks to determine the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of task, the standard time is fixed for the whole of the task by taking several readings.
    2.    Motion study: Motion study refers to the study of movements of limbs of a worker while doing a particular task. It seek to divide all such movements into three categories namely;
    ·         Motions which are required
    ·         Motions which are unnecessary
    ·         Motions which are incidental.
    Thus, motion study helps to eliminate unnecessary movements of a work and enables him to complete the given task efficiently.
    3.    Method study: The objective of method study is to find out one best way of doing the job among the various methods available of doing the job. This can be done by taking into consideration several related parameters.
    4.    Fatigue study: It seeks to determine the amount and frequency of rest intervals that should be provided to the workers for completing a task. This technique helps in increasing productivity as the rest intervals will help a person to regain stamina and work again with the same capacity.
    Question 10.
    Nutan Tiffin Box service was started in Mumbai by the 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 the 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 ‘mydabbawala.com’. Owing to their tremendous popularity amongst the happy and satisfied customers and members, the Dabbawalas were invited as guest lecturer by top business schools. The Dabbawalas operate in a group of 25-30 people alongwith a group leader. Each group teams up with other groups in order to deliver the tiffins 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 leaves without permission; wearing white caps and 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.
    1.    State any one principle of management given by Fayol and one characteristic of management mentioned in the above case.
    2.    Give any two values which the Dabbawalas want to communicated to society. (CBSE, Sample Paper 2016)
    Answer:
    1.    The relevant principle of management given by Fayol is:
    Stability of Personnel: The employee turnover should be minimized to maintain organizational efficiency. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation.
    (The other correct answers are principle of Discipline / Initiative / Espirit de corps) The characteristic of management mentioned in the above case is:
    Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
    (The other correct answers are management is intangible/ group activity/dynamic)
    2.    The two values that Dabbawalas want to communicate to society are:
    ·         Concern for poor/ Humanity
    ·         Responsibility
    Question 11.
    ‘Aapka Vidyalaya’ believes in the holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities. On its Founder’s Day, a stage performance had to be put up. A committee of ten prefects was constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. There was a spirit of unity and harmony and all the members supported each other. With mutual trust and a sense of belonging, the programme was systematically planned and executed. Kartik, one of the prefects, realised that the group had unknowingly applied one of the principles of management while planning and executing the programme. He was so inspired by the success of this function that he asked his father to apply the same principle in his business. His father replied that he was already using this principle.
    1.    Identify the principle of management applied for the success of the programme.
    2.    State any two features of management highlighted in the above paragraph.
    3.    Identify any two values which ‘Aapka Vidyalaya’ communicated to society. (CBSE, Delhi 2015)
    Answer:
    1.    The principle of management applied for the success of the programme is Espirit De Corps.
    2.    The two features of management mentioned in the above paragraph are as follows:
    ·         Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
    ·         Management is pervasive as it is applicable to all types of organizations, (economic,
    social, political) all sizes of organizations (small, medium, large) and at all levels of management (top, middle and lower).
    3.    The two values that ‘Aapka Vidyalaya’ communicated to society are:
    ·         Responsibility
    ·         Sustainable development.
    Question 12.
    Telco Ltd. manufactures files and folders from old clothes to discourage the use of plastic files 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 suggestions for improvements in design, but it also was not appreciated by the production manager.
    1.    State the principle of management that is violated in the above paragraph.
    2.    Identify any two values that the company wants to communicate to the society. (CBSE, OD 2014)
    Answer:
    1.    The principle of management that has been violated in the above case is Initiative. Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
    2.    The two values that the company wants to communicate to the society are
    ·         Concern for environment
    ·         Providing job opportunities
    Question 13.
    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.
    1.    State the principle of management described in the above paragraph.
    2.    Identify any two values which the company wants to communicate to society. (CBSE, OD 2014)
    Answer:
    1.    The principle of management described in the above paragraph is ‘Harmony, not Discord’.
    Taylor emphasised that there should be complete harmony between the management and workers instead of a kind of class-conflict, the manager versus workers. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. The prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa. He advocated paternalistic style of management should be in practice.
    2.    The two values that the company wants to communicate to the society are:
    ·         Prosperity
    ·         Sharing
    Question 14.
    Voltech India Ltd. is manufacturing LED bulbs to save electricity. However, it is running under heavy losses. To revive from the losses, the management shifts the unit to a backward area where labour is available at a low cost. The management also asks the workers to work overtime without any additional payments and promises to increase the wages of the workers after achieving its mission. Within a short period, the company starts earning profits because both the management and workers honour their commitments.
    1.    State the principle of management described in the above paragraph.
    2.    Identify any two values that the company wants to communicate to the society. (CBSE, Delhi 2014)
    Answer:
    1.    The principle of management described in the above paragraph is ‘Discipline’. Discipline- It refers to the obedience to organizational rules and the employment agreement. It is necessary for the systematic working of the organization. It requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
    2.    The two values that the company wants to communicate to the society are:
    ·         Trust
    ·         Sustainable development
    Question 15.
    ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work and responsibilities between workers and the management. The management even takes workers into confidence before taking important decisions. All the workers are satisfied as the behaviour of the management is very good.
    1.    State the principle of management described in the above paragraph.
    2.    Identify any two values which the company wants to communicate to society. (CBSE, Delhi 2014)
    Answer:
    1.    The principle of management described in the above paragraph is ‘Cooperation, Not Individualism’.
    This principle is an extension of principle of ‘Harmony, Not Discord’. There should be complete cooperation between the labour and the management instead of individualism. Competition should be replaced by cooperation and there should be an almost equal division of work and responsibility between workers and management. Also, management should reward workers for their suggestions which results in substantial reduction in costs. At the same time, workers should desist from going on strike and making unreasonable demands on the management
    2.    The two values that the company wants to communicate to the society are:
    ·         Participation
    ·         Sustainable development
    Question 16.
    The principles of Taylor and Fayol are mutually complementary. 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.
    Identify and explain the principles of Favol and Taylor referred to in the above paragraph. (CBSE, Delhi 2014)
    Answer:
    The principles of Fayol and Toylor referred to in the above paragraph are ‘Remuneration of employees’ and ‘Harmony, Not Discord’.
    Remuneration of Employes: According to Fayol, the overall pay and compensation should be fair and equitable to both employees and the organisation. The employees should be paid fair wages so that they are able to maintain at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company. This will ensure pleasant working atmosphere and good relations between workers and management.
    Harmony, Not Discord: Taylor emphasised that there should be complete harmony between the management and workers instead of a kind of class-conflict, the managers versus workers. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. The prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa. He advocated paternalistic style of management should be in practice
    Question 17.
    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. (CBSE, Delhi 2014)
    Answer:
    The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’.
    Initiative: Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
    Cooperation and Not Individualism: This principle is an extension of principle of ‘Harmony, Not Discord’.There should be complete cooperation between the labour and the management instead of individualism. Competition should be replaced by cooperation and there should be an almost equal division of work and responsibility between workers and management. Also, management should reward workers for their suggestions which result in substantial reduction in costs. At the same time, workers should desist from going on strike and making unreasonable demands on the management.
    Question 18.
    Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both of them worked hard and were happy with their employer. Salman had the habit of back-biting and wrong reporting about his colleagues to impress his boss. All the employees in the organisation knew about it. At the time of performance appraisal, the performance of Nikita was judged to be better than Salman. Even then their boss, Mohammed Sharif, decided to promote Salman stating that being a female, Nikita would not be able to handle the complications of a higher post.
    1.    Identify and explain the principle of management which was not followed by this, multinational company.
    2.    Identify the values which are being ignored quoting the lines from the above paragraph. (CBSE, OD 2013)
    Answer:
    1.    The multinational company didn’t follow the Principle of Equity. It emphasizes kindliness and justice in the behaviour of managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender or otherwise.
    2.    The two values which are being ignored in the given case are:
    ·         Honesty: “Wrong reporting about his colleagues to impress his boss.”
    ·         Justice: “At the time of performance appraisal, the performance of Nikita was judged better than Salman. Even then their boss, Mohammad Sharif, decided to promote Salman.”
    Question 19.
    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. (CBSE, Delhi 2006)
    Answer:
    The principle of Equity has been violated in this case. It emphasises kindliness and justice in the behaviour of managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender or otherwise.
    Question 1.
    Radhika opens a jewellry showroom in Jaipur after completing a course in jewellry 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 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 settling the conflicts among her employees, she tends to be more biased towards her female employees.
    In context of the above case:
    1.    Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
    2.    Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
    3.    State any one effect of the violation of the principle of management by Radhika as identified in part(b) of the question.
    Answer:
    1.    The various principles of management that are being applied by Radhika are listed below:
    ·         Principle of Division of Work: According to Fayol, “The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort.” He advocates that the principle of division of work is applicable to all kinds of work both technical as well as managerial.
    “For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialised job.”
    ·         Principle of Centralisation and Decentralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.”
    “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: Discipline refers to the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
    “Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.”
    2.    The principle of management which is being violated by Radhika is Equity.
    According to Fayol, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible.” This principle emphasizes on kindliness and justice in the behaviour of managers towards workers. The managers should not discriminate against anyone on account of gender, religion, language, caste, belief or nationality etc.
    “However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.”
    3.    One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.
    Question 2.
    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.
    In context of the above case:
    1.    Identify and explain the principle of management which is being violated.
    2.    Also identify the principle of management that Rajveer feels should be implemented in the factory.
    3.    Give any two differences between the principle of management as identified in part (a) and part (b) respectively.
    Answer:
    The principle of management which is being violated is stated below:
    1.    Unity of command: There should be one and only one boss for every individual employee. Dual subordination should be avoided. Fayol felt that if this principle is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”.
    2.    Unity of direction: All the units of an organization should be moving towards the same objectives through coordinated and focused efforts. Each group of activities having the same objective must have one head and one plan. This will lead to unity of action and coordination.
    3.    The difference between the principle of Unity of Command and Unity of Direction is given below:
    S.No.
    Basis
    Unity of Command
    Unity of Direction
    1.
    Meaning
    One subordinate should receive orders from and should be responsible to only one superior.
    Each group of activities having same objective must have one head and one plan.
    2.
    Aim
    It prevents dual subordination.
    It prevents overlapping of activities.
    3.
    Implications
    It affects an individual employee
    It affects the entire organization.
    Question 3.
    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 tempt 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 behaviour 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.
    In context of the above case:
    1.    Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
    2.    List any two values that Mehul wants to communicate to Neeraj.
    Answer:
    1.    The various principles of management that Mehul is advising Neeraj to follow while doing his job are as follows:
    ·         Subordination of Individual Interest to General Interest: Through this principle, Fayol advocates that in all circumstances, the interests of an organisation should take priority over the interests of any one individual employee. This is essential because larger interests of the other employees and the stakeholders i.e., owners, shareholders, creditors, debtors, financers, tax authorities, customers and the society at large cannot be sacrificed for the interest of any one person. For example, Mehul tells Neeraj that he might get tempted to misuse his powers for his or his family’s benefit and so he must display exemplary behaviour to raise his stature in the eyes of the company.
    ·         Scalar Chain: According to Fayol, the formal lines of authority from highest to lowest ranks are known as scalar chain. He suggests that “The organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” However, in order to ensure speedy communication during emergencies, Gang Plank is a shorter route that has been provided. However, the superior has to be informed later on.

    For example, in the following case, there is one head ‘A’ who has two lines of authority under her/ him. One line consists of B-C-D-E-F. Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has
    to communicate with ‘O’, who is at the same level of authority, then she/he has to traverse the route E-D-C-B-A-L-M-N-O.
    This is due to the principle of scalar chain being followed in this situation. However, if there is an emergency, then ‘E’ can directly contact ‘O’ through ‘Gang Plank’ as shown in the diagram.
    2.    The two values that Mehul wants to communicate to Neeraj are:
    ·         Honesty
    ·         Self restraint
    Question 4.
    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 principles different from those of pure science.
    In context of the above case:
    1.    Outline the concept of principles of management.
    2.    Why does Satinder find the principles of management different from those of pure science?
    3.    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.
    Answer:
    1.    The principles of management serve as a broad and general guideline for the managerial decision making and action.
    2.    Satinder finds the principles of management different from those of pure science because the management principles are not as rigid as principles of pure science.
    This is due to the fact that they deal with the human behaviour and thus, need to be applied creatively in the light of given situation.
    3.    The importance of principles of management is described below:
    ·         Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into real world situations and help them to enrich their knowledge, ability and understanding of the diverse managerial situations and circumstances. It also enables the managers to learn from past mistakes and conserve time by solving recurring problems quickly.
    ·         Optimum utilisation of resources and effective administration: The knowledge of management principles enables the managers to foresee the cause and effect relationships of their decisions and actions. As a result, it leads to optimum utilisation of scarce resources by avoiding wastage associated with a trial-and-error approach. Principles of management limit the boundary of managerial discretion so that their decisions may be free from personal prejudices and biases. This facilitates effective administration within the organisation.
    Question 5.
    Gurpreet is running a retail mart in Varanasi 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.
    In context of the above case:
    1.    Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually on a look out for new staff.
    2.    “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 has been brought into effect by Gurpreet.
    Answer:
    1.    Stability of Personnel: Stability of personnel is principle of management which Gurpreet is unable to apply and is perpetually on a look out for new staff. According to Fayol, “Employee turnover should be minimised to maintain organisational efficiency”. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation.
    2.    Remuneration of Employees: According to Fayol, the overall pay and compensation should be fair and equitable to both employees and the organisation. The employees should be paid fair wages so that they are able to maintain at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company. This will ensure pleasant working atmosphere and good relations between workers and management.
    Question 6.
    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.
    In context of the above case :
    1.    Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
    2.    Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems?
    Answer:
    1.    The two features of principles of management mentioned in the above paragraph are as follows:
    ·         General guidelines: The principles of management are guidelines to action. Since the real business situations are very complex and dynamic and are a result of many factors, these principles do not provide readymade, straitjacket solutions to all managerial problems. But the importance of principles cannot be underestimated because even a small guideline may help to solve a given problem.
    ·         Flexibile: The principles of management are not rigid prescriptions which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to decide which principle should be used under what circumstances as individual principles are like different tools serving different purposes.
    2.    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.
    Question 7.
    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 pf the clinic. Also, Raj always tends to replace T with ‘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.
    In context of the above case:
    1.    Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
    2.    List any two values that Simran wants to communicate to the society by taking up a job in a village.
    Answer:
    1.    The various principles of management that Raj is applying for the successful management of his eye care centre are described below:
    ·         Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. A sense of orderliness will lead to increased productivity and efficiency in the organization.
    ·         Espirit De Corps: According to Fayol, “Management should promote a team spirit of unity and harmony among employees.” A manager should replace T with ‘We’ in all his conversations with workers to promote teamwork. This approach will give rise to a spirit of mutual trust and belongingness among team members. It will also reduce the need for using penalties.
    ·         Equity: According to Fayol, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible.” This principle emphasizes on kindliness and justice in the behaviour of managers towards workers. The managers should not discriminate against anyone on account of gender, religion, language, caste, belief or nationality etc.
    2.    The two values that Simran wants communicate to the society by taking up a job in a village are:
    ·         Humanity
    ·         Concern for poor
    Question 8.
    Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials. He proposes to adopt a 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.
    In context of the above case:
    1.    Identify and explain the various principle of scientific management that Hritik plans to apply in his business.
    2.    List any two values that he wants to communicate to the society by offering eco¬friendly packaging material.
    Answer:
    1.    The various principle of scientific management that Hritik plans to apply in his business are described below:
    ·         Science, not Rule of Thumb: Taylor believed that there was only one best method to maximise efficiency and it could be developed through scientific study and analysis. This is because if the managers rely on personal judgment in attending to the work related problems, it may suffer from the limitation of a trial and error approach. Therefore, it is important for them to know what works and why does it work. For this, they should adopt scientific method to substitute the ‘Rule of Thumb or hit and trial method’ throughout the organisation.
    ·         Harmony, Not Discord: In the paternalistic style of management, the employer takes care of the needs of employees like a father. Taylor said that any kind of class conflicts between the workers and the managers were not good; rather they must realise that each one is important. Therefore, he emphasised that there should be complete harmony between the management and workers. To achieve this, Taylor called for complete mental revolution on the part of both management and workers by transforming their thinking. The management should share the gains of the company, if any, with the workers and at the same time, workers should work hard.
    ·         Cooperation, Not Individualism: Through this principle, Taylor suggests that there should be complete cooperation between the workers and the management instead of individualism. This principle is an extension of principle of ‘Harmony, Not Discord’. Both should realise the importance of each other. In order to replace the feeling of competition with cooperation, the management should not close its ears to any constructive suggestions made by the employees. Rather, the workers should be rewarded for any of their valuable suggestions which results in substantial saving in costs. Also, the workers should be taken into confidence by the management whenever any important decisions are to be taken.
    2.    The two values that Harit wants to communicate to the society by offering eco-friendly packaging material are:
    ·         Concern for environment
    ·         Sense of responsibility
    Question 9.
    ‘Study Buddy Pvt. Ltd.’ 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.’
    Answer:
    Standardisation and Simplification of Work is the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’
    Standardisation implies devising new varieties instead of the existing ones. It refers to the process of setting standards for every business activity; it can be standardisation of process, raw material, time, product, machinery, methods or working conditions. These standards are the benchmarks which must be adhered to during production. It helps to reduce a given line or product to fixed types, sizes and characteristics, establish interchange ability of manufactured parts and products, determine standards of excellence and quality in materials and of performance of men and machines.
    Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also to save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring ‘optimum utilisation of resources. Most large companies like Samsung, Toyota and Microsoft etc. have successfully implemented standardisation and simplification.
    Question 10.
    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.
    In context of the above case:
    1.    Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
    2.    State any two values that Anshul wants to communicate to the society by setting up a special type of business.
    Answer:
    Differential Piece Wage System is the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
    Differential Piece Wage System is a performance based wage system which was introduced by Taylor so as to distinguish between the workers who were able to achieve the standard or performed above standard from those who performed below standard. For example, it is determined that standard output per worker per day is 10 units and those who made standard or more than standard will get Rs. 40 per unit and those below will get Rs. 30 per unit. Now an efficient worker making 11 units will get 11 x 40 = Rs. 440 per day whereas a worker who makes 9 units will get 9 x 30 = Rs. 270 per day. According to Taylor, the difference of Rs. 170 should be enough for the inefficient worker to be motivated to perform better.
    Question 11.
    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 finalise 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.
    In context of the above case:
    1.    Can Mr. Bhardwaj be held responsible for loss of the deal? Why or why not ? Give a suitable reason in support of your answer.
    2.    Also, explain the related principle.
    Answer:
    1.    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.
    2.    The name of the related principle is Authority and Responsibility.
    Authority is the right to give orders and obtain obedience by the virtue of one’s position in the organization. Responsibility is the obligation of a person to carry out the assigned task to the best of one’s abilities and skills. There are two types of authorities, namely the official authority, which is the authority to command, and personal authority, which is the authority of the individual manager. Authority is both formal and informal. According to Fayol, there should be balance between the authority given and responsibility entrusted to an employee so that he is able to carry out the assigned task. Any kind of imbalance in authority and responsibility is not good for the organisation. If the authority granted to an employee is less than what is required, he will ineffective in doing his work. On the other hand, if the authority delegated to an employee is more than what is required, he may tend to misuse it.




    Q. 1. In your school, you observe that books are kept in office, chalks in the library and
    office records in the staff room.
    1. Which principle of management is violated here and why?
    2. How will that affect the achievement of school objectives?
    3. As a manager, what steps will you take to rectify the shortcomings? (3
    marks)
    Ans.
    1. The principle of ‘Order’
    2. In the absence of orderliness, school objectives will not be achieved efficiently and
    effectively.
    3. Things should be placed at appropriate places to achieve maximum efficiency with
    given time framework.

    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. Soniya 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.
    1. Unity of command
    “Sometimes, the subordinates had to work for more than one superiors.’
    1. Discipline
    ‘The workers were becoming indisciplined.’
    1. Spirit de corps
    ‘The spirit of teamwork, which had characterized the company previously, had begun to
    wane.’

    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:
    1. Identify and explain the various principles of management that are being applied by
    Radhika by quoting lines from the paragraph.
    2. Identify and explain the principle of management which is being violated by Radhika
    by quoting lines from the paragraph.
    3. State any one effect of the violation of the principle of management by Radhika as
    identified in part (b) of the question.
    Ans.
    1. The various principles of management that are being applied by Radhika are listed
    below:
    1. 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.”
    1. 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.”
    1. 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.”
    1. 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.”
    1. 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.
    In context of the above case:
    1. Identify and explain the various principles of management that Mehul is advising
    Neeraj to follow while doing his job.
    2. List any two values that Mehul wants to communicate to Neraj.
    Ans.
    1. The various principles of management that Mehul is advising Neeraj to follow while
    doing his job are as follows:
    1. Subordination of Individual Interest to General Interest:
    2. Scalar Chain:
    1. The two values that Mehul wants to communicate to Neeraj are:
    1. Honesty
    2. 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.
    In context of the above case:
    1. Outline the concept of principles of management.
    2. Why does Satinder find the principle of management different from those of pure
    science?
    3. 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.
    Ans.
    1. The principles of management serve as a broad and general guideline for the
    managerial decision making and action.
    2. 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.
    3. The importance of principles of management is described below:
    1. Providing managers with useful insights into reality:
    2. 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.
    1. State any one principle of management given by Fayol & one characteristic of
    management mentioned in the above case.
    2. Given any two values which the Dabbawalas want to communicate to the society.
    (4 marks)
    Ans.
    1. Principles of management (any one)
    1. Stability of Personnel
    2. Initiative
    3. Discipline
    4. Esprit de corps
    Characteristic of management (any one)
    1. Goal oriented
    2. Group activity
    1. Values that have been communicated by the Dabbawalas: (any two)
    1. Fulfilling social responsibility;
    2. Empathy towards disadvantaged children;
    3. Team work (or any other suitable value)

    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.
    1. Identify the principle of management applied for the success of the programme.
    2. State any two features of management highlighted in the above para.
    3. Identify any two values which ‘Aapka Vidyalaya’ communicated to the society.
    (4 marks)
    Ans.
    1. Espirit de corps
    2.
    1. Management is pervasive--‘ …he asked his father to apply the same principle in his
    business.’
    Management is pervasive as it can be applied to all types/levels of organizations.
    2. Management is a group activity –‘ There was a spirit of unity and harmony and all
    members supported each other.’
    Management is a group activity because it requires team work and/or coordination of
    individual efforts.
    3. Values being communicated to the society: (Any two)
    1. Concern for the environment.
    2. Holistic development of children.
    3. Teamwok

    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.
    1. Identify and explain the principle of management which was not followed by this
    multinational company.
    2. Identify the values which are being ignored quoting the liens the above para.
    (5 marks)
    Ans.
    1. The principle violated is EQUITY.
    It advocates that there should be no discrimination against anyone on account of sex,
    religion, language, caste, belief, nationality etc.
    It emphasizes kindliness and justice in the behavior of managers towards the workers to
    ensure loyalty and devotion.
    1. The valuation which are being ignored are:
    1. Good human behavior because ‘Salman had the habit of backing and wrong
    reporting about his colleagues to impress his boss.’
    2. Gender Equality because ‘Their boss decided to promote Salman stating that being a
    female Nikita will not be able to handle the complications of a higher post.’

    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.
    1. Which concept of management Sigman Ltd. is lacking? State it.
    2. Which principle of management has been overlooked by this company? State it.
    3. Which principle of management has been overlooked by this company? State it.
    (6 marks)
    Ans.
    1. The company is lacking ‘Coordination’.
    It is the process by which the activities of different departments are synchronized to ensure
    unity of action.
    1. Unity of command
    There should be one and only one boss for every individual employee.If an employee gets
    orders from two superiors at the same time, the principle of unity of command is
    violated.Consequences of violation:Authority is undermined, discipline is in jeopardy, order
    is disturbed and stability is threatened.
    1. Spirit de Corps
    Management should promote a team spirit of unity and harmony6 among employees.It is
    necessary for coordination.

    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.
    1. State the principle of management described in the above para.
    2. Identify any two values which the company wants to communicate to the society.
    (3 marks)
    Ans.
    1. The principle of Taylor described in the above para is Cooperation, Not Individualism.
    It states that there should be complete cooperation between the labour and the
    management.Competition should be replaced by cooperation.
    1. Values which the company wants to communicate to the society are:
    1. Good behavior in human interaction.
    2. Concern for the environment.

    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.
    1. State the principle of management described in the above para.
    2. Identify any two values that the company wants to communicate to the society.
    (3 marks)
    Ans.
    1. 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.
    1. Values that the company wants to communicate to the society are:
    1. Concern for the environment
    2. Development of backward regions

    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.
    1. Which aspect of management the company is lacking? What will be its impact on the
    organization?
    2. Identify the principle of management which has been overlooked by this organization.
    3. State any two values neglected by the people of this organization. (5 marks)
    Ans.
    1. The company is lacking ‘Coordination’.
    Its different departments like production, marketing, etc. do not coordinate their work.In the
    absence of coordination, there will be overlapping and chaos instead of harmony and
    integration of activities.The company will fail to achieve its objectives.
    1. Subordination of individual interest to general interest.
    2. Values:
    1. Mutual cooperation
    2. Unity of action
    3. Optimum utilization of resources

    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.
    1. State the principle of management described in the above para.
    2. Identify any two values that the company wants to communicate to the society.
    (3 marks)
    Ans.
    1. Initiative. It means eagerness to initiate action without being asked to do so.
    2. Values which the company wants to communicate to the society are:
    1. Sensitivity towards the environment
    2. Creation of job opportunities
    3. 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.
    1. Which principle of scientific management is overlooked in the given case?
    2. State any two values overlooked/ignored by the management in the above case.
    (3 marks)
    Ans.
    1. Harmony, not Discord
    2. Values overlooked are:
    1. Mutual understanding
    2. Empathy
    3. Peace and stability
    4. Law and Order
    5. 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.
    In context of the above case:
    1. Identify and explain the various principle of scientific management that Hritik plans to
    apply in his business.
    2. List any two values that he wants to communicate to the society by offering
    eco-friendly packaging material.
    Ans.
    1. The various principle of scientific management that Hritik plans to apply in his
    business are described below:
    1. Science, not Rule of Thumb:
    2. Harmony, Not Discord:
    3. Cooperation, Not Individualism:
    1. The two values that Harit wants to communicate to the society by offering eco-friendly
    packaging material are:
    1. Concern for environment
    2. 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:
    1. Identify and explain the various techniques of work study which have been put into
    practice by Gaurika.
    2. List any two values that Gaurika wants to communicate to the society.
    Ans.
    1. The various techniques of work study which have been put into practice by Gaurika
    are outlined below:
    1. Time Study:
    2. Fatigue Study:
    3. Method Study:
    1. The two values that Gaurika wants to communicate to the society are:
    1. Optimum utilization of resources
    2. 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. Standardization and Simplification of Work is the technique of scientific management
    which has been adopted by ‘Study Buddy Pvt. Ltd.’

    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.
    1. Identify and explain the principle of management that was not followed by this
    company.
    2. Identify the values being ignore.
    Ans.
    1. Company is violating the “Principle of Equity.”
    2. 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?
    1. Name that principle.
    2. What values can be followed by using this principle?
    Ans.
    1. Principle of “Science not rule of thumb.”
    2. 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.
    1. Name and explain the technique of scientific management used by Mr. Hari.
    2. State the value which Mr. Hari wants to communicate to the society by allowing rest
    intervals to workers.
    Ans.
    1. Fatigue study.
    2. 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.
    1. State the techniques of scientific management used by principal.
    2. State any other technique of scientific management.
    Ans.
    1. “Technique of motion study.”
    2. Other two techniques:
    1. Functional foremanship
    2. 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.
    1. Which technique of scientific management is used by New Supervisor.
    2. State the objective of motion study.
    Ans.
    1. Motion study.
    2. 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.
    1. Which technique of Scientific management is used by his son.
    2. What is the objective of that technique.
    Ans.
    1. Method Study
    2. 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.
    1. Which principle of Fayol is applied by Mr. Kapoor?
    2. Explain that principle.
    Ans.
    1. Principle of subordination of individual interest to general interest.
    2. 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.
    1. Which principle of Fayol is violated in the above case.
    2. Explain that principles.
    Ans.
    1. Principle of Remuneration.
    2. 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.
    1. Which technique of scientific management is applied by Mr. Rajiv?
    2. Which principle of Henry Fayol is followed by him?
    Ans.
    1. Method Study
    2. 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.
    1. State the principle of Hencry Fayol used by new manager.
    2. State the technique of scientific management related to above case.
    Ans.
    1. Principle of initiative.
    2. “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.
    1. Stat the Principle of Henry Fayol followed by the school principal.
    2. In case of emergency which concept of Scalar Chain can be used by teacher to pass
    urgent message directly to principal.
    Ans.
    1. Scalar Chain.
    2. 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.
    1. State the principle of management described in the above paragraph.
    2. Identify any two values which the company wants to communicate to society.
    Ans.
    1. The principle of management described in the above paragraph is ‘Harmony, not
    discord’.
    2. The two values that the company wants to communicate to the society are:
    1. Prosperity
    2. Sharing

    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.
    Ans.
    The principles of Fayol and Taylor referred to in the above paragraph are ‘Remuneration of
    employees’ and ‘Harmony, Not Discord’.
    1. Remuneration of Employees:
    2. 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’.
    1. Initiative:
    2. 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.
    In context of the above case:
    1. Identify and explain the principle of management which is being violated.
    2. Also identify the principle of management that Rajveer feels should be implemented
    in the factory.
    3. Give any two differences between the principle of management as identified in part
    (a) and part (b) respectively.
    Ans.
    The principle of management which is being violated in stated below:
    1. Unity of command:
    2. Unity of direction:
    3. 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.
    In context of the above case:
    1. Identify and explain the principle of management which Gurpreet is unable to apply
    and is perpetually ona look out for new staff.
    2. “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.
    Ans.
    1. Stability of Personnel;
    2. Remuneration of Employees:

    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.
    In context of the above case:
    1. Identify the two features of principles of management mentioned in the above
    paragraph by quoting lines from the paragraph.
    2. Why do the principles of management not provide readymade, straitjacket solutions
    to all managerial problems?
    Ans.
    1. The two features of principles of management mentioned in the above paragraph are
    as follows:
    1. General guidelines:
    2. Flexibile:
    1. 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.
    In context of the above case:
    1. Identify and explain the various principles of management that Raj is applying for the
    successful management of his eye care centre.
    2. List any two values that Simran wants to communicate to the society by taking up a
    job in a village.
    Ans.
    1. The various principles of management that Raj is applying for the successful
    management of his eye care centre are described below:
    1. Order:
    2. Spirit de Corps:
    3. Equity:
    1. The two values that Simran wants communicate to the society by taking up a job in a
    village are:
    1. Humanity
    2. 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.
    In context of the above case:
    1. Name and explain the incentive bonus plan that Anshul may implement so as
    differentiate between efficient and inefficient workers.
    2. State any two values that Anshul wants to communicate to the society by setting up a
    special type of business.
    Ans.
    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.
    In context of the above case:
    1. Can Mr. Bhardwaj be held responsible for loss of the deal? Why or why not? Give a
    suitable reason in support of your answer.
    2. Also, explain the related principle.
    Ans.
    1. 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.
    2. The name of the related principle is Authority and Responsibility.


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    This blog is created by Mrs. Kavita Jain, Principal, Kendriya Vidyalaya Gail Vijaipur. You can mail your suggestions and Feedback to us at our email address: kavitajainkv@gmail.com
    Born with a teacher's heart, learning and teaching are her bloodlines. she loves to learn and likes to teach. She is equally passionate about creating a learned and qualified next generation for her nation. She aims to reach out all who need help or are in doubt. She enjoys discussing the intricacies of her subject and turning them into lucid terms for all to understand in an easy and phased manner with a joyful experience.