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Test: Principles of Management- Case Based Type Questions - Commerce MCQ


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15 Questions MCQ Test Business Studies (BST) Class 12 - Test: Principles of Management- Case Based Type Questions

Test: Principles of Management- Case Based Type Questions for Commerce 2024 is part of Business Studies (BST) Class 12 preparation. The Test: Principles of Management- Case Based Type Questions questions and answers have been prepared according to the Commerce exam syllabus.The Test: Principles of Management- Case Based Type Questions MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Principles of Management- Case Based Type Questions below.
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Test: Principles of Management- Case Based Type Questions - Question 1

Direction: Read the following text and answer the questions given below:

Shruti, a student of management at MDI, Gurgaon, likes to relate what she has learnt in her classes during study to real life situations around her. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. These factories had defined benchmarks during production and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at eliminating superfluous varieties, sizes and dimensions and devising new varieties instead of the existing ones. While watching the programme, Shruti realized that these companies could adopt one best way of doing the job in order to be more productive. She also felt that the employees of these companies were working for long hours continuously and needed to adopt certain strategies in order to improve their efficiency. The programme also showed a few interviews where some workers were found to be highly efficient as compared with a few others.

Which Scientific Management technique would Shruti advise these factories to implement in order to motivate the inefficient workers to perform better?

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 1
This technique of wage payment is based on efficiency of workers. The efficient workers are paid more wages than inefficient one. On the other hand, those workers who produce less than standard number of pieces are paid wages at lower rate than prevailing rate i.e. worker is penalized for his inefficiency.
Test: Principles of Management- Case Based Type Questions - Question 2

Direction: Read the following text and answer the questions given below:

Shruti, a student of management at MDI, Gurgaon, likes to relate what she has learnt in her classes during study to real life situations around her. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. These factories had defined benchmarks during production and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at eliminating superfluous varieties, sizes and dimensions and devising new varieties instead of the existing ones. While watching the programme, Shruti realized that these companies could adopt one best way of doing the job in order to be more productive. She also felt that the employees of these companies were working for long hours continuously and needed to adopt certain strategies in order to improve their efficiency. The programme also showed a few interviews where some workers were found to be highly efficient as compared with a few others.

Which Scientific Management technique would Shruti recommend for these factories if they have to find out one best way of doing the job?

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 2
The objective of method study is to find out one best way of doing the job. There are various methods of doing the job.
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Test: Principles of Management- Case Based Type Questions - Question 3

Direction: Read the following text and answer the questions given below:

Shruti, a student of management at MDI, Gurgaon, likes to relate what she has learnt in her classes during study to real life situations around her. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. These factories had defined benchmarks during production and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at eliminating superfluous varieties, sizes and dimensions and devising new varieties instead of the existing ones. While watching the programme, Shruti realized that these companies could adopt one best way of doing the job in order to be more productive. She also felt that the employees of these companies were working for long hours continuously and needed to adopt certain strategies in order to improve their efficiency. The programme also showed a few interviews where some workers were found to be highly efficient as compared with a few others.

Name the technique of Scientific Management that these factories are adhering to while manufacturing parts for such products.

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 3
  • Standardisation 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.

  • Simplification aims at eliminating unnecessary diversity of products. It results in savings of cost of labour, machines and tools.

Test: Principles of Management- Case Based Type Questions - Question 4

Direction: Read the following text and answer the questions given below:

Shruti, a student of management at MDI, Gurgaon, likes to relate what she has learnt in her classes during study to real life situations around her. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. These factories had defined benchmarks during production and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at eliminating superfluous varieties, sizes and dimensions and devising new varieties instead of the existing ones. While watching the programme, Shruti realized that these companies could adopt one best way of doing the job in order to be more productive. She also felt that the employees of these companies were working for long hours continuously and needed to adopt certain strategies in order to improve their efficiency. The programme also showed a few interviews where some workers were found to be highly efficient as compared with a few others.

Which Scientific Management technique would Shruti suggest for these factories if they have to help the workers regain their stamina and enable them to work again with the same capacity?

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 4
Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.
Test: Principles of Management- Case Based Type Questions - Question 5

Direction: Read the following text and answer the following questions on the basis of the same:

Amisha did her MBA from IIM Bangalore and decided to begin her own company. Now she is the proprietor of ABC Foods Pvt. Ltd. which is into the production of packaged foods and beverages. She has started on a small-scale but decided that there will be separate departments for finance, marketing, production and sales in her company so that later on when the scale of operations increases, the functions and processes are streamlined. She has plans for expansion over the next 5 years but plans to limit the major decision making powers to herself as she is yet to build a strong and reliable team. She has also worked out a fair and reasonable structure for the overall pay and compensation to be paid to the employees on the basis of a combination of various methods. She also wants to ensure that her employees stay with the company for longer durations so that the funds invested in their training do not go waste. Thus, she has taken some measures to minimize employee turnover.

“…she has taken some measures to minimize employee turnover.”

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 5

She has also worked out a fair and reasonable structure for the overall pay and compensation to be paid to the employees on the basis of a combination of various methods. She also wants to ensure that her employees stay with the company for longer durations so that the funds invested in their training do not go waste. Thus, she has taken some measures to minimize employee turnover.

Test: Principles of Management- Case Based Type Questions - Question 6

Direction: Read the following text and answer the following questions on the basis of the same:

Amisha did her MBA from IIM Bangalore and decided to begin her own company. Now she is the proprietor of ABC Foods Pvt. Ltd. which is into the production of packaged foods and beverages. She has started on a small-scale but decided that there will be separate departments for finance, marketing, production and sales in her company so that later on when the scale of operations increases, the functions and processes are streamlined. She has plans for expansion over the next 5 years but plans to limit the major decision making powers to herself as she is yet to build a strong and reliable team. She has also worked out a fair and reasonable structure for the overall pay and compensation to be paid to the employees on the basis of a combination of various methods. She also wants to ensure that her employees stay with the company for longer durations so that the funds invested in their training do not go waste. Thus, she has taken some measures to minimize employee turnover.

‘‘…but plans to limit the major decision making powers to herself.’’

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 6
Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all of the organization.
Test: Principles of Management- Case Based Type Questions - Question 7

Direction: Read the following text and answer the following questions on the basis of the same:

Amisha did her MBA from IIM Bangalore and decided to begin her own company. Now she is the proprietor of ABC Foods Pvt. Ltd. which is into the production of packaged foods and beverages. She has started on a small-scale but decided that there will be separate departments for finance, marketing, production and sales in her company so that later on when the scale of operations increases, the functions and processes are streamlined. She has plans for expansion over the next 5 years but plans to limit the major decision making powers to herself as she is yet to build a strong and reliable team. She has also worked out a fair and reasonable structure for the overall pay and compensation to be paid to the employees on the basis of a combination of various methods. She also wants to ensure that her employees stay with the company for longer durations so that the funds invested in their training do not go waste. Thus, she has taken some measures to minimize employee turnover.

‘‘…there will be separate departments for finance, marketing, production and sales…”

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 7
Division of Work: This principle of management is based on the theory that if workers are given a specialized task to do, they will become skillful and more efficient in it than if they had a broader range of tasks. Therefore, a process where everyone has a specialized role will be an efficient one.
Test: Principles of Management- Case Based Type Questions - Question 8

Direction: Read the following text and answer the following questions on the basis of the same:

Amisha did her MBA from IIM Bangalore and decided to begin her own company. Now she is the proprietor of ABC Foods Pvt. Ltd. which is into the production of packaged foods and beverages. She has started on a small-scale but decided that there will be separate departments for finance, marketing, production and sales in her company so that later on when the scale of operations increases, the functions and processes are streamlined. She has plans for expansion over the next 5 years but plans to limit the major decision making powers to herself as she is yet to build a strong and reliable team. She has also worked out a fair and reasonable structure for the overall pay and compensation to be paid to the employees on the basis of a combination of various methods. She also wants to ensure that her employees stay with the company for longer durations so that the funds invested in their training do not go waste. Thus, she has taken some measures to minimize employee turnover.

“…fair and reasonable structure for the overall pay and compensation to be paid to the employees…”

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 8
Remuneration plays an important role in motivating the workers of a company. Remuneration can be monetary or nonmonetary. However, it should be according to an individual’s efforts they have made.
Test: Principles of Management- Case Based Type Questions - Question 9

Direction: Read the following text and answer the following questions on the basis of the same:

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

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

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 9
Equity means combination of fairness, kindness and justice. The employees should be treated with kindness and equity if devotion is expected of them. It implies that managers should be fair and impartial while dealing with the subordinates.
Test: Principles of Management- Case Based Type Questions - Question 10

Direction: Read the following text and answer the following questions on the basis of the same:

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

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

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 10
Under centralization, the important and key decisions are taken by the top management and the other levels are into implementations as per the directions of top level. On the other hand, Decentralization is a systematic delegation of authority at all levels of management and in all of the organization.
Test: Principles of Management- Case Based Type Questions - Question 11

Direction: Read the following text and answer the following questions on the basis of the same:

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

Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 11
Henri Fayol has stressed on the specialization of jobs. He recommended that work of all kinds must be divided and subdivided and allotted to various persons according to their expertise in a particular area. Subdivision of work makes it simpler and results in efficiency.
Test: Principles of Management- Case Based Type Questions - Question 12

Direction: Read the following text and answer the following questions on the basis of the same:

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

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

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 12

The principle of remuneration to employees is being highlighted in the given sentence: "Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees."

According to this principle of management, employees should be paid a fair and adequate compensation for their work. This compensation should be based on various factors like the level of responsibility, skills, knowledge, and experience required for the job, and the prevailing market conditions. The compensation should be such that it can attract and retain skilled and competent employees.

In the given sentence, Aditi is following this principle by giving a bonus to her employees when her business was doing well. This shows that she values the contribution of her employees and is willing to compensate them for their hard work and dedication. By doing so, she is motivating her employees to work harder and achieve better results for the company.

Overall, the principle of remuneration to employees is an important aspect of management as it helps in attracting and retaining talented employees, improving their morale and motivation, and enhancing the overall productivity and profitability of the company.

Test: Principles of Management- Case Based Type Questions - Question 13

Direction: Read the following text and answer the questions given below:

Tasty Ice Creams Ltd. is a very famous company in Indore and has many branches in different parts of the city. They also have major expansion plans as they expect that their customers will increase in number in the next two years. Tasty Ice Creams Ltd. produces a variety of ice-creams which are extremely popular in the city and one brand of icecream ‘Magic’ sells the most. Thus, the company undertakes the maximum production for ‘Magic’ and it contributes to their revenue to the extent of 25% and has the largest market share. The company has undertaken different strategies to ensure that they remain the market leader in Indore. One of the methods it follows is Differential Piece Wage System to differentiate between efficient and inefficient workers. It is so because the company believes that in this way its inefficient workers would be encouraged to perform better and improve their productivity. This will motivate them to be at par with the efficient workers. Thus, Tasty Ice Creams Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹ 50 per unit and those below will get ₹ 40 per unit.

Such a worker producing 7 units is termed as ………………..

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 13
Inefficiency in the workplace leads to poor productivity and low morale. Demotivation and dissatisfaction at work lead to inefficiency which causes low productivity which loops you right back round to demotivation again.
Test: Principles of Management- Case Based Type Questions - Question 14

Direction: Read the following text and answer the questions given below:

Tasty Ice Creams Ltd. is a very famous company in Indore and has many branches in different parts of the city. They also have major expansion plans as they expect that their customers will increase in number in the next two years. Tasty Ice Creams Ltd. produces a variety of ice-creams which are extremely popular in the city and one brand of icecream ‘Magic’ sells the most. Thus, the company undertakes the maximum production for ‘Magic’ and it contributes to their revenue to the extent of 25% and has the largest market share. The company has undertaken different strategies to ensure that they remain the market leader in Indore. One of the methods it follows is Differential Piece Wage System to differentiate between efficient and inefficient workers. It is so because the company believes that in this way its inefficient workers would be encouraged to perform better and improve their productivity. This will motivate them to be at par with the efficient workers. Thus, Tasty Ice Creams Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹ 50 per unit and those below will get ₹ 40 per unit.

Such a worker producing 15 units is termed as ………………..

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 14
The efficient worker has developed an employee-efficiency formula that supports effective outputs. In other words, efficient workers also know how to be effective. They set goals, track progress toward goals, celebrate successes and learn from mistakes.
Test: Principles of Management- Case Based Type Questions - Question 15

Direction: Read the following text and answer the questions given below:

Tasty Ice Creams Ltd. is a very famous company in Indore and has many branches in different parts of the city. They also have major expansion plans as they expect that their customers will increase in number in the next two years. Tasty Ice Creams Ltd. produces a variety of ice-creams which are extremely popular in the city and one brand of icecream ‘Magic’ sells the most. Thus, the company undertakes the maximum production for ‘Magic’ and it contributes to their revenue to the extent of 25% and has the largest market share. The company has undertaken different strategies to ensure that they remain the market leader in Indore. One of the methods it follows is Differential Piece Wage System to differentiate between efficient and inefficient workers. It is so because the company believes that in this way its inefficient workers would be encouraged to perform better and improve their productivity. This will motivate them to be at par with the efficient workers. Thus, Tasty Ice Creams Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹ 50 per unit and those below will get ₹ 40 per unit.

What will be the earnings of a worker producing 15 units?

Detailed Solution for Test: Principles of Management- Case Based Type Questions - Question 15
Output is more than standard Earnings = 15 units × ₹ 50 = ₹ 750
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