Previous Year Long Questions With Answers - Principles of Management Commerce Notes | EduRev

Business Studies (BST) Class 12

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Commerce : Previous Year Long Questions With Answers - Principles of Management Commerce Notes | EduRev

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Q. 1. Why principles of management are needed? Explain by giving any five reasons [Outside Delhi Comptt. Set I 2010]
OR
"Principles of Management, now a days have become an integral part for all types of successful business organisations". In light of this statement, present your comments regarding the reasons why management principles are needed?
Ans.
Following are the main five reasons which highlight the importance of management principles:
(i) Improves understanding: The knowledge of principles improves the understanding of the managers about the ways and means of managing an organisation.
(ii) Direction for training of managers: The principles are helpful in identifying the areas of management in which existing and future managers should be trained.
(iii) Optimum utilization: Management principles aim at optimum utilization of human and physical resources for the attainment of organisational goals.
(iv) Meeting changing environment requirement: Management principles help the managers to meet changing requirements of the environment.
(v) Fulfilling social responsibility and research: Management principles are used as a basis for management training education and research.

Q. 2. Explain any four characteristics of 'Principles of Management.' [Delhi Set I, II, III 2016]
OR
Describe the nature of Principles of Management with the help of any four points. [Outside Delhi Set I, II, III 2016]
Ans. 
Characteristics of principles of management:
(i) Universal applicability.
(ii) General guidelines.
(iii) Formed by practice and experimentation.
(iv) Flexible.
(v) Mainly behavioural.
(vi) Cause and effect relationship.
(vii) Contingent.
Detailed Answer: Characteristics/Nature of Principles of Management:
(i) Universal applicability: The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as the services sectors. However, the extent of their applicability would vary with the nature of the organisation, business activity, scale of operations, etc.
(ii) General guidelines: The principles are guidelines to action but do not provide ready made and to the point solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. However, the importance of principles cannot be underestimated because even a small guideline helps to solve a given problem.
(iii) Formed by practice and experimentation: The principles of management are formed by experience and collective wisdom of managers as well as experimentation. For example, It is a matter of common experience that discipline is indispensable for accomplishing any purpose. This principle is mentioned in the management theory. On the other hand, in order to remedy the problem of fatigue of workers in the factory, an experiment may be conducted to see the effect of improvement of physical conditions to reduce the stress.
(iv) Flexible: 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 do so.
(v) Mainly behavioural: Management principles aim at influencing behaviour of human beings. Therefore, principles of management are mainly behavioural in nature. It is not that these principles do not pertain to things and phenomenon at all; it is just a matter of emphasis. Moreover, principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.
(vi) Cause and effect relationships: The principles of management are intended to establish relationship between cause and effect so that they can be used in similar situations in a large number of cases. As such, they tell us if a particular principle was applied in a particular situation, what would be its likely effect. The principles of management are less than perfect since they mainly apply to human behaviour. In real life, situations are not identical. Therefore, accurate cause and effect relationships may be difficult to establish.
(vii) Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per requirements.

Q. 3. Explain Fayol’s principles of ‘equity’ and ‘order’ with examples. [Delhi Set II, Outside Delhi Set I 2011]
Ans. 
Equity: Fayol advocated that there should be no discrimination against anyone on account of sex, religion, language, caste, belief, nationality, etc. and emphasised kindness and justice in the behaviour of the managers towards the workers to ensure loyalty and devotion. For example, Now-a-days, in multinational corporations, equal opportunities are available to everyone.
Order: Fayol advocated that people and resources must be in suitable places at appropriate time for maximum efficiency i.e., there should be a place for everything and everyone in an organisation and that thing or person should be found in the allotted place. This will lead to increased productivity and efficiency. For example, Raw material should be available at the place prescribed for it.

Q. 4. Explain the following principles of Fayol with the help of one example of each:
(i) Initiative
(ii) Espirit de Corps. [Delhi Comptt. Set III 2011]
Ans.
(i) Initiative: Fayol wanted that subordinates should be given an opportunity to take some initiatives in making and executing the plans. Employees get satisfaction when they are allowed to take initiatives. Initiatives on their part can be a great source of organisational strength. For example, Before setting up the plan, the manager must welcome the suggestions and ideas of its employees to allow their maximum participation. But once the plan is made, every employee must follow and implement it.
(ii) Espirit de Corps: According to this principle, the management should take responsible steps to develop a sense of belongingness and feeling of team spirit among employees. In order to achieve the best possible results, individual and group efforts need to be effectively integrated and coordinated. Management must infuse the team spirit in the workers. It develops atmosphere of mutual trust and understanding among employees and minimises the need of penalties for default. A manager should replace ‘I’ with ‘We’ in his conversations to promote spirit of team work. For example, If a department has to achieve a target, then according to this principle, it is the duty of each member of the department to ensure that target is achieved on time, even if any member is unable to fulfill his/her individual target. It means that employees should not concentrate only on achieving their individual targets but on achieving group targets.

Q. 5. Explain the following principles of management given by Fayol:
(i) Unity of Command
(ii) Order. U [SQP 2015]
Ans. 
(i) Unity of Command: There should be one and only one boss for every individual employee. If an employee gets orders from two supervisors at the same time, the principle is violated. Consequences of violation : Authority is undermined, discipline is in jeopardy, order gets disturbed and stability is threatened.
(ii) Order: People and materials must be in suitable places at appropriate time for maximum efficiency. A place for everything (everyone) and everything (everyone) in its (her/his) place i.e., orderliness. Benefits of the principle : No hindrance in the activities of business, increased productivity and efficiency.
Detailed Answer: Unity of Command: According to the principle of unity of command, an individual employee should receive orders from only one superior at a time and that employee should be answerable only to that superior. If there are many superiors giving orders to the same employee, he will not be able to decide as to which order is to be given priority. He thus finds himself in a confused situation. Such a situation adversely affects the efficiency of the subordinates. On the other hand, when there are many superiors, every superior would like his orders to be given priority. This ego problem creates a possibility of clash. Consequently, their own efficiency is likely to be affected.
Order: According to the principle of order, a right person should be placed at the right job and a right thing should be placed at the right place. According to Fayol, every enterprise should have two different orders-Material Order for Physical Resources and Social Order for Human Resources. Keeping the physical resources in order means that ‘a proper place for everything and everything in its right place’. Similarly, keeping the human resources in order means ‘a place for everyone and everyone in his appointed place’. Maintaining these two orders properly will ensure that everybody knows his workplace, what he is to do and from where he would get his required material. Consequently, all the available resources in the organisation will be utilised properly.

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