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

Business Studies (BST) Class 12

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

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Q. 1. Explain how principles of Management:
(i) Help in optimum utilisation of resources and effective administration;
(ii) Help the managers in meeting changing environment requirements.
Ans. (i) Principles of management help in optimum utilisation of resources by equipping managers to foresee the cause and effect relationships thereby reducing the wastages associated with trial and error approach.Principles of management help in effective administration by limiting the boundaries of managerial discretion so that decisions are free from personal prejudices.
(ii) Principles of management help the managers in meeting requirements of changing environment because they can be modified according to the changes taking place in the environment.

Q. 2. Explain how Principles of Management:
(i) Provide useful insights into reality, and
(ii) Help in thoughtful decision making.
Ans.
(i) Principles of management provide useful insights into reality by enabling the managers to learn from the past mistakes and conserve time by solving recurring problems quickly.
(ii) Principles of management help in thoughtful decision making because the decisions based on principles are not biased and based on the objective assessment of the situation.

Q. 3. What is meant by the statement, “Principles of Management are Flexible”?
Ans. 
Management Principles are not as rigid as those of natural science viz. Physics and Chemistry. Principles of Management are not applied blindly in an identical manner to all situations. Management principles are not absolute and should be utilised in the light of changing and special conditions. Management principles do not provide any hard and fast rules and they have to be modified as per changes in the business environment.

Q. 4. Explain any four points regarding significance of principles of management.
OR
Explain any four points of importance of Principles of Management.
OR
State any four points which highlight the importance of Principles of Management.
Ans.
 Importance of Principles of Management:
(i) Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into the real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from the past mistakes and conserve time by solving recurring problems quickly. As such management principles increase managerial efficiency.
(ii) Optimum utilisation of resources and effective administration: Both human and material resources, available with the company are limited. They have to be put to optimum use. By optimum use we mean that the resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. As such the wastages associated with a trial-and-error approach can be overcome.
(iii) Scientific decisions: Decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes. They must be timely, realistic and subjected to measurement and evaluation. Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions are taken on the basis of principles which are free from bias and prejudice. They are based on the objective assessment of the situation.
(iv) Meeting changing environment requirements: Although the principles are in the nature of general guidelines but they are modified and as such help managers to meet changing requirements of the environment. Management principles are flexible to adapt to a dynamic business environment.
(v) Fulfilling social responsibility: The increased awareness of the public, forces businesses, especially limited companies to fulfill their social responsibilities.Management theory and management principles have also evolved in response to these demands. Moreover, the interpretation of the principles also assumes newer and contemporary meanings with the change in time.
(vi) Providing basis for Management training,education and research: Principles of management are at the core of management theory. As such these are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a discipline. These principles enable refinement of management practices as well by facilitating the development of new management techniques which have developed due to further research on these principles.

Q. 5. Explain “Unity of Direction” and “Order” as principles of general management.
Ans. (i) Order: Fayol advocated that people and materials 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 things or person should be found at the allotted place. This will lead to increase in productivity and efficiency. For example, Raw material should be available at the place prescribed for it.
(ii) Unity of direction: According to their principle,each unit of the organisation should work towards a common objective. Each unit should have single head and plan. It helps in eliminating the overlapping of work.

Q. 6. Explain briefly ‘Espirit de Corps’ and ‘Order’ as general principles of management.
Ans.
Esprit de Corps
(i) It states that management should promote a team spirit of unity and harmony among employees to realise organisational objectives. The manager should replace ‘I’ with ‘We’ to foster team spirit.
(ii) This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties. Order
(i) It states that there should be a place for everything and everyone in an organisation and that thing or person should be found at the allotted place.
(ii) People and materials must be in suitable places at appropriate time for maximum efficiency.

Q. 7. Explain ‘unity of command’ and ‘equity’ as principles of general management.
Ans. 
Unity of command: According to this principle, one subordinate should receive orders from one superior only at a given point of time. The principle is necessary to avoid confusion and conflict.
Equity: The principle of equity implies of sense of fairness and justice to all workers working in an organisation. Observance of equity alone would make workers loyal and devoted to the organisation. Equity does not mean equal salary to a peon and supervisor. But equity means application of same disciplinary rules, leave rules, etc. irrespective of their grade, positions and gender, language, religion or nationality, etc.

Q. 8. Name and explain the principle of management according to which a manager should replace ‘I’ with ‘We’ in all his conversation with workers. 
Ans. Esprit de Corps given by Henry Fayol: According to this principle, management should promote team spirit of unity and harmony among its employees. This will give rise to a spirit of mutual unity and harmony among the employees. This will give rise to a spirit of mutual trust and will create a sense of belongingness towards the organisation.

Q. 9. Prashant Toys Pvt. Ltd. manufactures and sells toys of different types. Two founders of the company, Prashant and Nishant, jointly look after the overall management of the company. Since there is no clear-cut demarcation of authority between the two, often contradictory orders are passed to production and marketing people. Sometimes, this situation becomes embarrassing to production and marketing manager.
(i) Which principles of Management are being violated in this case?
(ii) State two steps that the company should take to overcome the problem.
Ans.
(i) Principle of Authority and Responsibility and principle of Unity of Command are being violated here.
(ii) Following steps can be taken to overcome the problem:
(a) The promoters should define their areas of authority clearly based on functions performed by them.
(b) The promoters should issue orders in their specific areas only to avoid confusions.

Q. 10. Explain the following principles of “Scientific Management”.
(i) Science, not a rule of thumb
(ii) Co-operation, not individualism
(iii) Harmony, not discord.
OR
Explain ‘Harmony, not discord’ as a principle of scientific management.
OR
Explain ‘Science, not a rule of thumb’ as a principle of management.
OR
Explain ‘Co-operation not individualism’ as a principle of scientific management.

Ans. (i) Science, not a rule of thumb: Taylor believed that there was only one best method to maximise efficiency. This method can be developed through scientific study and analysis of each element of a job and should substitute ‘Rule of Thumb‘. This standard method then should be followed throughout the organisation.
(ii) Co-operation, not individualism: There should be complete co-operation between the labour and management instead of individualism; competition should be replaced by co-operation. Both should realise that they need each other.
(iii) Harmony, not discord: According to Taylor, there should not be any conflict between the managers and the workers. He emphasised that there should be complete harmony between the managers and the workers. Both should realise that each one is important to achieve the objectives of the organisation.

Q. 11. Enumerate any two techniques of Scientific Management.
Ans. Techniques of Scientific Management:
(i) Functional Foremanship: 
The technique is to improve the performance of supervisor in the factory set up. Taylor suggested functional foremanship through eight persons. Functional Foremanship is an extension of principle of division of work and specialization at the shop floor.
(ii) Motion Study: It refers to the study of movements like lifting, putting objects, sitting & changing positions etc. Which are undertaken while doing a typical job. Unnecessary movements are eliminated so that it takes less time to complete the job efficiently.
(iii) Standardisation and Simplification of Work: It is the process of setting standards for every business activity. These standards are benchmarks which must be adhered during production process. The standards should be set for every business activity i.e., standardisation of process, raw material, time, product etc. Simplification aims at eliminating superfluous varieties, sizes and dimension.
(iv) Method Study: The objective of method study is to find one best way of doing the work
(v) Time Study: It 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
(vi) Fatigue Study: This study seeks to determine the amount and frequency of rest intervals in completion of a task
(vii) Differential Piece Wage System: According to this, there are different rate of wage payment, higher rate for the efficient members who performed above standard and lower rate for those who perform below standards.

Q. 12. Explain the technique of scientific management that is the extension of ‘Principle of Division of Work and Specialisation’.
OR
Explain the technique of scientific management which separates the planning and execution work.
Ans. 
The technique of Functional Foremanship.
(i) Functional Foremanship is a technique which aims to improve the quality of supervision at the shop floor by putting a worker under eight specialist foremen.
(ii) In this technique, planning is separated from execution.
Under Planning Department:
(a) Route Clerk: This foreman lays down the sequence of operations, in which the work is to be carried out by each class of machines and men.
(b) Instruction Card Clerk: This foreman has to lay down the instructions and guidelines which workers need to follow in order to do their job.
(c) Time and Cost Clerk: This foreman records the time taken by a worker in completing a job. He also keeps a record of cost of the work done.
(d) Disciplinarian: He is responsible for discipline and systematic performance of the job. Under Production Department :
(a) Gang Boss: He is responsible to keep machines, materials, tools, etc. ready for operation by the concerned workers.
(b) Speed Boss: He has to ensure that the work is accomplished at the right time and according to the specified speed.
(c) Repair Boss: He is responsible for keeping up of machines and equipment in an efficient and working order.
(d) Inspector: He is responsible for the quality of work and brings a spirit of quality consciousness in the minds of the workers.

Q. 13. ‘Chennai Leather Ltd.’ is the manufacturer of leather products. It is producing on large scale and its organisational structure is functional. In the production department various foremen have been employed. Each foreman has been made responsible for production planning, implementation and control. This has led to a situation of confusion ad uncertainty. Suggest a technique of scientific management to Chennai Leather Ltd. which may help it to effectively organise planning and its execution.
Ans.
Technique of scientific management which may help Chennai Leather Ltd. to effectively organise planning and its execution is Functional Foremanship.
(i) Functional foremanship is a technique which aims to improve the quality of supervision at shop floor.
(ii) Taylor identified a list of qualities of a good foreman or a supervisor. Since all the qualities could not be found in a single person, Taylor proposed eight specialists.
(iii) In this technique, planning is separated from execution. Taylor suggested four foremen for planning and four foremen for execution.
(iv) It is an extension of the principle of division of work and specialisation.
(v) The four foremen for planning were route clerk,instruction card clerk, time and cost clerk and disciplinarian. The four foremen for planning would draft instructions for the workers, specify the route of production, prepare time a and cost sheet and ensure discipline respectively.
(vi) The four foremen for execution were gang boss,speed boss, repair boss and inspector. The four foremen for execution were responsible for timely and accurate completion of the job, keeping machines and tools ready for operation by the workers, ensuring proper working conditions of machines and tools and checking the quality of work.

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