Short Answer Questions | Business Studies (BST) Class 12 - Commerce PDF Download

Very Short Answer Type Questions

Q1: How are management principles derived?
Ans: Management principles are derived through observation and analysis of events.

Q2: Give anyone difference between Principle and Technique.
Ans: Principles are guidelines to take decision whereas techniques are methods to take action.

Q3: What is meant by ‘Universality of management principles’?
OR
Why is it said that management principles are universal?
Ans: This it means that they are applicable to all kinds of organizations.

Q4: The principles of management aren’t rigid and can be modified when the situation demands. Which nature of principles is being discussed here?
Ans: Flexibility.

Q5: Define scientific management.
Ans: Application of a scientific approach to managerial decision making.

Q6: List any two principle of ‘Scientific Management’ formulated by Taylor for managing an organization scientifically.
Ans: (i) Science, not Rule of Thumb.
(ii) Harmony, not Discord.

Q7: 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 ?
Ans: ‘Rule of thumb’

Q8: What do you mean by Mental Revolution?
Ans: Mental Revolution means revolutionary change in the attitude of both workers and managers from competition to cooperation.

Q9: Principle of cooperation, not individualism, is an extension of which principle given by Fayol?
Ans: Principle of Harmony, not discord.

Q10: What is the aim of Method study?
Ans: Aim is to find one best method of doing the job.

Q11: What is the aim of doing motion study?
Ans: The aim of this study is to eliminate unnecessary movements so as to ensure timely completion of work.

Q12: What is the purpose of time study?
Ans: To estimate/ determine a fair day’s work.

Q13: Name the techniques of Taylor which is the strongest motivator for a worker to reach standard performance.
Ans: Differential Piece Wage system.

Q14: 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.
Ans: Principle of Authority and Responsibility.

Q15: 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.
Ans: Unity of Direction.

Short Answer Type Questions 

Q1: What do you mean by management principles?
Ans: Principles are statements of fundamental truths about some phenomena and serve as a guide for thoughts and actions. They establish cause and effect relationship. Management Principles are the fundamental statements of truth that provide guidelines to the managers for decision making and actions. These enable the managers to manage the enterprises in “3E way” viz ‘economically’, ‘effectively’ and ‘efficiently’. These act as guide for managers and sharpen their skills and competence. For example, principle of division of labor increases the efficiency of workers which ultimately leads to economy and effectiveness in the organization.

Q2: 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.
Ans: Management principles are not made in heavens; they have emerged gradually, through an evolutionary process of combining deep observations and experimental studies.
(i) Observation method: Under this method, practical events are observed and analyzed by managerial researchers to derive management principles. 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.

Q3: Give three points reflecting the nature of management principles.
Ans: Management principles are (any three):
(i) Universal in application.
(ii) General guidelines.
(iii) Flexible and can be applied differently under different conditions.
(iv) Formed by practice and experimentation.
(v) Establish cause and effect relationships.

Q4: “Principles of management achieve results economically.” Explain?
Ans: Management principles help in setting realistic objectives for the business because the objectives are set with the participation of employees. Hence, the employees work to their full potential and their commitment level increases because objectives of organization become their own objectives. For example, the principle of maximum output rather than restricted one ensures more output. More output lowers cost per unit and hence profit per unit increases.

Q5: Define scientific management and name any three of its principles.
Ans: According to Taylor, “Scientific management means knowing exactly what you want your men to do and seeing that they do it in the best and cheapest way”. Three principles of scientific management are as follows:
(i) Science, not rule of thumb
(ii) Harmony, not discord.
(iii) Cooperation, not individualism.

Q6: Explain the objectives of standardization.
Ans: Standardization is done for the following reasons:
(i) To ensure that a given product range has fixed types, sizes, characteristics etc.
(ii) To bring about interchangeability, for manufactured parts, output, developments etc. among various branches.
(iii) To set uniform standards of performance for men, machines etc.

Q7: Which technique of Taylor suggests that each worker should be supervised by specialists? Give the designations of any four specialists suggested by him.
Ans: The technique of functional foremanship suggests that each worker should be supervised by specialists. These specialists’ designations are follow.
(i) Instruction Card Clerk
(ii) Route Clerk
(iii) Time and Cost Clerk
(iv) Disciplinarian

Q8: ‘Discipline is double-edged tool’ Comment.
Ans: 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. To achieve proper discipline, skilled superiors at all levels, clear and fair agreements and judicious application of penalties etc. are required.

Q9: Explain the principle of unity of direction.
Ans: This principle suggests that in an organization there should be one head and one plan for a group of activities having the same objective. This helps in bringing unity of action and coordination in an organization. If a company is manufacturing two different products then it should have two separate divisions or departments for both the products. Each division or department should have their separate in-charge, plans and execution resources etc.

Q10: An organization follows the principles of management. What are the adverse effects of each of the following principles of management on the organization?
(i) Unity of Command
(ii) Order
(iii) Stability of tenure of personnel
Ans: Adverse effects of said principles are:
(i) Unity of Command: If this principle is followed, work gets delayed which results in wastage of time and cost.
(ii) Order: It creates boredom among the employees due to rigidity provided by this principle.
(iii) Stability of personnel: If employees are not rotated on different jobs frequently, they can specialize only in a small part of the whole process of production and thus can never become versatile.

Q11: Explain how principles of management
(i) Help the managers in taking scientific decisions
(ii) Provide the managers with useful insights into real world situations
Ans: Explanation of relevant sub-headings from significance of principles of management.