Sure Shot Questions: Principles of Management | Business Studies (BST) Class 12 - Commerce PDF Download

Based on a careful analysis of the previous years' questions and trends, we've put together a list of questions that are most likely to appear in the Class 12 Business Studies Board exams. These predictions aren’t just guesses—they’re based on how often these questions show up and how CBSE usually frames its papers.

Q1: What is meant by 'Management Principles'?
Ans: Management Principles are broad and general guidelines for decision-making and managerial behaviour. They provide managers with a framework to plan, organise, staff, direct and control effectively. These principles are not as rigid as laws of pure science because they deal with human behaviour, which is flexible and ever-changing.

The principles are:

• Developed from observation, experimentation, and experience of managers.
• General guidelines – they do not offer straitjacket solutions but help managers handle complex situations.
• Mainly behavioural in nature – as they focus on human interactions in organisations.
• Flexible and contingent – applicable depending on the nature of the organisation, scale of operations, and the situation.

Thus, principles of management act as signposts to guide managers in achieving organisational goals effectively and efficiently.

Q2: What is the role of a 'Gang Boss' in functional foremanship?
Ans: In Taylor’s functional foremanship, the Gang Boss works under the Production In-Charge. His main role is to keep machines, tools, and materials ready for operation so that workers face no delays. He coordinates tasks, ensures smooth workflow on the shop floor, and thus contributes to the timely and efficient completion of production.

Q3: Which technique of scientific management motivates workers to achieve standard performance?
Ans: The Differential Piece Wage System motivates workers to achieve or exceed standard performance. Under this system, workers who meet or surpass the set standards receive higher wages per unit, while those who fall short are paid at a lower rate. This creates healthy competition, rewards efficiency, and encourages workers to be more productive.

Q4: What is the role of a 'Route Clerk' in functional foremanship?
Ans: The Route Clerk works under the Planning In-Charge in Taylor’s functional foremanship. His job is to specify the sequence of operations and production routes that workers must follow. By clearly defining the best possible route for production, he ensures efficiency, reduces confusion, and helps in the smooth flow of work across departments.

Q5: Which principle of Taylor replaces reliance on personal judgment in managing work?
Ans: Taylor’s principle of Science, Not Rule of Thumb, replaces traditional practices based on personal judgment. According to him, there is always “one best way” of doing a job, which can be found through scientific study, such as time and motion studies. This principle ensures efficiency, reduces wastage, and standardises work methods across the organisation.

Q6: What is meant by 'Mental Revolution' in the context of scientific management?
Ans: 

The term Mental Revolution was given by F.W. Taylor under his Scientific Management principles. It refers to a complete change in the attitude of both management and workers towards each other.

• Earlier Situation: There used to be constant conflict between management (owners) and workers. Management wanted maximum output at minimum wages, whereas workers wanted maximum wages for minimum work. This created distrust and inefficiency.
• Taylor’s Idea: Both should realise that their interests are interdependent. Management cannot prosper without workers, and workers cannot earn without management.
  

What it Requires:

• Management must share the gains of the company with workers.
• Workers must work hard and embrace changes introduced for efficiency.
• Cooperation should replace competition, leading to harmony and higher productivity.

Taylor believed that if this revolution in thinking happened, even trade unions would not need to resort to strikes. It ensures long-term prosperity for both employers and employees.

Q7: Which organisational structure enhances managerial and operational efficiency?
Ans: The Functional Structure enhances managerial and operational efficiency. In this structure, activities are grouped according to specialised functions such as production, marketing, finance, and HR. This leads to specialisation, expert supervision, clarity in roles, and increased efficiency in decision-making and execution.

Q8: A company has separate divisions for different products, each with its own manager and plans. Which principle is highlighted?
Ans: This situation highlights the Principle of Unity of Direction given by Henri Fayol. It states that each group of activities having the same objective must be directed by one manager under one plan. For example, separate divisions for motorcycles and cars should have their own managers and plans, ensuring coordination and avoiding overlapping of activities.

Q9: A sales manager is tasked with doubling sales but lacks the authority to increase expenses or hire staff. Which principle is violated?
Ans: The Principle of Authority and Responsibility is violated. Fayol emphasised that authority and responsibility should go hand in hand. Giving responsibility without adequate authority creates frustration and inefficiency. In this case, the sales manager cannot achieve the target because he lacks the necessary authority to make decisions like hiring or increasing expenses.

Q10: Who introduced the concept of functional foremanship?
Ans: The concept of Functional Foremanship was introduced by Frederick Winslow Taylor, the Father of Scientific Management. It involved eight foremen, divided between planning and production incharges, to ensure division of work and specialisation at the shop floor level.

Q11: Which principle is violated when a subordinate receives orders from multiple bosses?
Ans: The Principle of Unity of Command is violated. Fayol stated that every employee should receive orders from only one superior. Multiple bosses create confusion, dilute responsibility, and disturb discipline. It also reduces efficiency and leads to conflict within the organisation.

Q12: Two employees with the same qualifications are paid differently for the same work. Which principle is violated?
Ans: The Principle of Equity is violated. According to Fayol, managers should treat employees with fairness, justice, and equality. Paying differently for the same work lowers morale, reduces motivation, and can create dissatisfaction among employees, which ultimately affects productivity.

Q13: Explain why management principles are considered 'mainly behavioural' and 'contingent' in nature.
Ans: 

Mainly Behavioural:

Management principles aim at influencing the behaviour of people in organisations. They explain the relationship between human and material resources in achieving objectives. For example, the principle of equity stresses fair treatment to maintain loyalty and motivation. Thus, their application primarily deals with managing people effectively.

Contingent in Nature:

The application of management principles depends on the prevailing situation. For instance, the principle of fair remuneration varies according to factors like the contribution of employees, the financial capacity of the organisation, and market wage levels. Similarly, the degree of centralisation or decentralisation differs across organisations and circumstances.

Therefore, management principles cannot be applied rigidly; they need to be adapted according to specific contexts.

Q14: Explain the principles of 'Discipline' and 'Scalar Chain' in general management.
Ans: 

Discipline:
Discipline means obedience, respect for rules, and adherence to agreements essential for the smooth working of the organisation. According to Fayol, it requires:

• Good supervision at all levels.
• Clear and fair agreements.
• Judicious application of penalties when required.
  Example: If workers agree to work extra hours without additional pay to revive the company, and management agrees to increase wages later, both must honour their commitments.

Scalar Chain:
The Scalar Chain is the formal line of authority from the highest to the lowest ranks in an organisation. Communication should usually follow this chain to maintain order.
However, Fayol suggested a shortcut called Gang Plank, which allows two employees at the same level to communicate directly in case of emergency, avoiding delays.
Example: In a factory, if an employee ‘E’ needs to contact another at the same level ‘O’, normally the message must travel up and down the chain. But through gang plank, E and O can directly communicate during urgent situations

Q15: Discuss how management principles are derived and why they are considered evolutionary.
Ans: 

Derivation of Principles:
Management principles are not arbitrary; they are derived through:

• Observation of real-life business situations.
• Experiments and work-studies (e.g., Taylor’s time and motion studies).
• Experience of successful managers over time.

Why Evolutionary:
Unlike laws of pure science, management principles evolve with changes in technology, environment, and human behaviour. They are continuously refined as managers gain new insights.
Example: The principle of equity earlier focused only on wages, but today it includes fairness in customer dealings, environmental care, and social responsibility.

Thus, management principles evolve and adapt to the needs of dynamic business environments, making them both practical and relevant across time