Case Studies - Principles of Management | Business Studies (BST) Class 12 - Commerce PDF Download

As a student of business studies, you are expected to learn about the various aspects of management, such as planning, organizing, staffing, directing, and controlling. Case studies are an essential part of the Class 12 Business Studies curriculum as they provide students with an opportunity to apply theoretical knowledge to practical situations. Let's see some Case Study Questions on the Principles of Management of Business Studies.

Q1. In your school, you observe that books are kept in the office, chalk in the library and office records in the staff room.

1. Which principle of management is violated here and why?
2. How will that affect the achievement of school objectives?
3. As a manager, what steps will you take to rectify the shortcomings?           (3 marks)

Ans.

1. The disparate storage of resources violates the Unity of Direction principle. 

2. This mismanagement negatively impacts the achievement of school objectives in several ways:

• Breeds inefficiency: Staff waste time searching for materials, which reduces productivity.
• Increases mismanagement risk: Resources may be misplaced or lost, disrupting school operations.
• Creates coordination challenges: Departments struggle to implement cohesive strategies.

3. To rectify these shortcomings, I would implement the following solutions:

• Centralise resource management: Designate specific storage areas for all materials.
• Implement inventory control: Keep track of resources to prevent loss.
• Train staff: Educate them on proper resource handling and management.
• Foster collaboration: Encourage teamwork among departments to improve coordination.

These steps will enhance efficiency, minimise the risk of mismanagement, and promote a unified direction towards achieving the school’s objectives.

Q2. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day.  But he did not give him the authority of requisitioning tools and materials from the stores department.  Can the production manager blame the foreman if he is not able to achieve the desired target?  Explain briefly the principle relating to the situation.           (3 marks)

Ans. No, the production manager cannot blame the foreman for failing to achieve the target of 200 scooters per day, as he did not grant him the authority to requisition tools and materials from the stores department. Without this authority, the foreman could not fulfil his responsibilities. In this situation, the principle of ‘Authority and Responsibility’ is violated. Henri Fayol suggested that a balance must exist between authority and responsibility. Both should go hand in hand; if a subordinate is held responsible without adequate authority, they will be ineffective in performing their duties. Conversely, granting authority without assigning responsibility can lead to its misuse.

Q3. Soniya Ltd. was engaged in the business of manufacturing auto components.  Lately, its business has been expanding due to increased demand for cars.  The competition was also increasing.  In order to keep its market share intact, the company directed its workforce to work overtime.  But this resulted in many problems.

Due to increased pressure of work, the efficiency of workers declined.  Sometimes, the subordinates had to work for more than one superiors.  The workers were becoming indisciplined.  The spirit of teamwork, which had characterized the company previously, had begun to wane.

Identify any three principles of management (as given by Henry Fayol) that were begin violated, quoting the lines from the above case.           (3 marks)

Ans.Three principles of management by Henry Fayol that were being violated in the case of Soniya Ltd.:

1. Unity of Command: "Sometimes, the subordinates had to work for more than one superior."

   • This violates the principle of unity of command, which states that an employee should receive orders from only one superior to avoid confusion and conflicting instructions.

2. Division of Work: "Due to increased pressure of work, the efficiency of workers declined."

   • The increased workload and pressure on workers suggest a lack of effective division of work, leading to decreased efficiency and productivity.

3. Esprit de Corps (Spirit of Teamwork): "The spirit of teamwork, which had characterized the company previously, had begun to wane."

   • This indicates a decline in the spirit of teamwork among employees, which violates the principle of esprit de corps. This principle emphasizes the importance of fostering harmony and unity among workers to achieve common objectives.

Q4. The production manager of Harsh Ltd. instructs a salesman to go slow in selling the product, where the marketing manager is insisting on fast selling to achieve the target.  Which principle of management is being violated in this case?                           (1 mark)

Ans. The principle of management being violated in this case is the unity of command. This principle states that an employee should receive orders from only one superior to avoid confusion and conflicting instructions.

Q5. Kanika and Priyanka are typists in a company having same educational qualifications.  Kanika is getting Rs. 16000 per month and Priyanka Rs. 10000 per month as salary for the same working hours.  Which principle of management is violated in this case?  (1 mark)

Ans. The situation described illustrates a violation of the principle of equity in management. This principle states that employees with similar qualifications and responsibilities should receive fair and equitable treatment in terms of salary. In this case, Kanika and Priyanka, who have the same educational qualifications and work the same hours, are being compensated differently, with Kanika earning Rs. 16,000 per month and Priyanka only Rs. 10,000 per month. This disparity in pay, despite their similar roles, highlights an inconsistency that contradicts the principle of equity, which aims to ensure that all employees are treated justly.

Q6. Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other departments.  Which principle of management is being overlooked?                    (1 mark)

Ans. The principle of management that is being overlooked is the Principle of the Scalar Chain. This principle emphasises the importance of a clear line of authority within an organisation, ensuring that communication flows in a structured manner from the top management down to the lower levels.

Q7. The management and workers have entered into an agreement that workers will do overtime to cover up losses of the company.  In return, the manager will increase the wages.  But management later refused to increase the wages.  Name the principle violated in this situation.             (1 mark)

Ans. The principle violated in this situation is the Principle of Discipline. The management and workers had an agreement where workers would perform overtime to help cover the company's losses in exchange for a wage increase from the management. However, when the management later refused to honour this agreement, it undermined the trust and expectations set within the workplace.

Q8. In Simran Ltd., an employee has the objective of maximizing his salary, but the organizational objective is to maximize output at a competitive cost.  There was some dispute on this for a while.  Eventually, the organization’s interest was given priority over the employees’ interests.  Name the principle related to this situation.                                       (1 mark)

Ans. The principle related to the situation described is the principle of subordination of individual interest to general interest.

Q9. Radhika opened a jewelry showroom in Jaipur after completing a course in jewelry design.  She has employed eleven people in her showroom.  For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.  The salespersons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.  In the earlier days of starting of the business, five of her 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, after six months, when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.  However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees.

In the context of the above case:

1. Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
2. Identify and explain the principle of management that is being violated by Radhika by quoting lines from the paragraph.
3. State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question.

Ans.

1. The various principles of management that are being applied by Radhika are listed below:

• Principle of Division of Work:

“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”

• Principle of Centralization and Decentralisation:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”

• Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a bonus to each of these employees to honour her commitment.”

2. The principle of management that is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”

3. One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among male workers.

Q10. Neeraj is selected for the post of software developer in an IT Company.  On the first day of his joining Mehul, his project manager tells Neeraj that during the course of his work, he will come across many such opportunities which may tempt him to misuse his powers for individual or family’s benefit at the cost of the larger general interest of the company.  In such situations, he should rather exhibit exemplary behavior as it will raise his stature in the eyes of the company.  Also, for interacting with anyone in the company on official matters, he should adopt the formal chain of authority and communication.

In the context of the above case:

1. Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
2. List any two values that Mehul wants to communicate to Neraj.

Ans.

1. The various principles of management that Mehul is advising Neeraj to follow while doing his job are as follows:
   • Subordination of Individual Interest to General Interest
   • Scalar Chain
2. The two values that Mehul wants to communicate to Neeraj are:
   • Honesty
   • Self-restraint

Q11. Davinder is a twelfth-class commerce student at a reputed school in Punjab.  Satinder is his elder brother who is doing his master's in Hospital administration from Delhi after completing his B. Sc course.  During vacations, when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic of ‘Principles of Management’.  Satinder tells him that these principles are also a part of the MBA course curriculum at the beginner’s level as they form the core of management in practice.  But he finds these principles different from those of pure science.

In the context of the above case:

1. Outline the concept of principles of management.
2. Why does Satinder find the principles of management different from those of pure science?
3. Why do the principles of management form the core of management in practice?

Explain by giving any two points highlighting the importance of principles of management.

Ans.

1. The principles of management provide broad guidelines for effective managerial decision-making and actions. These principles help in:
   • Organising resources efficiently.
   • Enhancing communication within the team.
   • Improving productivity through systematic processes.
   • Facilitating strategic planning and execution.
   • By following these principles, managers can create a more cohesive work environment that fosters growth and efficiency.
   
   
2. Satinder finds the principles of management to be different from those of pure science because management principles are not as definitive as those in pure science. This is primarily due to the fact that they involve human behaviour, which requires a creative application based on the specific context.
3. The importance of the principles of management can be summarised as follows:
   • Providing managers with valuable insights into reality.
   • Ensuring optimum utilisation of resources and effective administration.

Q12. Nutan Tiffin Box service was started in Mumbai by Mumbai dabbawalas.  The Dabbawalas, who are the soul of the entire Mumbai city, aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at the right time and place.  The service is uninterrupted even on the days of bad weather, political unrest and social disturbances.  Recently, they have started an online booking system through their website’ mydabbawals.com’.  Owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business schools.  The Dabbawals operate in a groups of 25-30 people along with a group leader.  Each group teams up with other groups in order to deliver the tiffin on time.  They are not transferred on a frequent basis as they have to remember the addresses of their customers.  They follow certain rules while trading - no alcohol during working hours, no leave without permission, wearing of white caps & carrying ID cards during business hours.

Recently, on the suggestion of a few self-motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children.  They have instructed their customers to place a red sticker if food is left in the tiffin, to be fed to poor children later.

1. State any one principle of management given by Fayol & one characteristic of management mentioned in the above case.
2. Given any two values which the Dabbawalas want to communicate to the society.

(4 marks)

Ans. 
1. One principle of management given by Fayol that can be observed in the case of Mumbai dabbawalas is 'Unity of Command.' This principle states that an employee should receive orders from only one superior to avoid confusion and conflict. In the case of dabbawalas, each group operates under the leadership of a group leader (group pleader), ensuring clear direction and accountability within the group.

One characteristic of management mentioned in the above case is "Adaptability." Despite facing various challenges, such as bad weather, political unrest, and social disturbances, the dabbawalas continue to provide uninterrupted service by adapting their strategies and operations to overcome these obstacles.

2. Two values that the Dabbawalas want to communicate to society are:

1. Social Responsibility: By implementing a plan to feed slum children with leftover food from customers' tiffins, the dabbawalas demonstrate their commitment to addressing social issues and contributing to the welfare of the less fortunate in society.
2.  Reliability: The dabbawalas' consistent and efficient delivery service, even in adverse conditions, reflects their value of reliability. They strive to provide prompt and dependable service to their customers, earning their trust and satisfaction.

Q13. ‘Aapka vidyalaya’ believes in the holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities.  On its founders' day, a stage performance had to be put up.  A committee of ten prefects was constituted to plan different aspects of the function.  They all decided to use recycled paper for decoration.  There was a spirit of unity and harmony, and all members supported each other.  With mutual trust and belongingness, the programme was systematically planned and executed.  Kartik, one of the prefects, realized that unknowingly, the group had applied one of the principles of management while planning and executing the programme.  He was so inspired by the success of the function that he asked his father to apply to same principle in his business.  His father replied that he was already using this principle.

1. Identify the principle of management applied for the success of the programme.
2. State any two features of management highlighted in the above para.
3. Identify any two values that ‘Aapka Vidyalaya’ communicated to the society.

(4 marks)

Ans. 

1. The principle of management applied for the success of the program is "Unity of Purpose" or "Unity of Objective." This principle emphasizes the importance of aligning individual and group efforts towards the achievement of common goals.

2. Two features of management highlighted in the paragraph are:

• Teamwork: The committee of prefects demonstrates effective teamwork by collaborating to plan and execute the function. There is a spirit of unity and harmony among the members, and they support each other to achieve their goals.

• Systematic Planning and Execution: The program is systematically planned and executed by the committee of prefects. They use recycled paper for decoration, indicating a thoughtful and environmentally conscious approach to organizing the event.

3. Two values communicated to society by 'Aapka Vidyalaya' are:

• Environmental Responsibility: By choosing to use recycled paper for decoration, 'Aapka Vidyalaya' demonstrates its commitment to environmental sustainability and responsibility. This value promotes awareness and action towards protecting the environment.

• Holistic Development: 'Aapka Vidyalaya' emphasizes holistic development by encouraging a mix of curricular, co-curricular, and sports activities. This value reflects a commitment to nurturing students' overall growth and well-being beyond academic achievements alone.

Q14. Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both are working hard and are happy with their employer.  Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss.  All the employees in the organization knew about it.  At the time of performance appraisal, the performance of Nikita was judged better than Salman.  Even then, their boss, Mohammed Sharif, decided to promote Salman, stating that being a female, Nikita would not be able to handle the complications of a higher post.

1. Identify and explain the principle of management which was not followed by this multinational company.
2. Identify the values that are being ignored, quoting the liens in the above para.              (5 marks)

Ans. The principle of management that was not followed by this multinational company is "Impartiality" or "Fairness." This principle emphasizes that decisions and actions should be fair and unbiased, without favouritism or discrimination.

In this scenario, the boss, Mohammed Sharif, decided to promote Salman over Nikita despite Nikita's better performance. The reason cited for promoting Salman, based on gender stereotypes, indicates a lack of impartiality and fairness in the decision-making process. By allowing Salman's negative behaviour to influence the promotion decision and discriminating against Nikita based on her gender, the company fails to uphold the principle of impartiality.

The values being ignored in this scenario are:

1. Fairness and Equality: The company's decision to promote Salman over Nikita based on gender stereotypes disregards the principles of fairness and equality. Nikita's better performance should have been the sole criterion for promotion, irrespective of her gender.

2. Integrity and Ethical Conduct: Salman's habit of backbiting and wrong reporting about his colleagues indicates a lack of integrity and ethical conduct. By promoting him despite his negative behaviour, the company sends a message that unethical conduct is tolerated and even rewarded, undermining the values of integrity and ethical behaviour in the workplace.

Q15.  Sigma Ltd. is a large company manufacturing electric motors.  The company has several departments – Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company, set the target sale of 10 crore in a month.  To increase the sales, the marketing manager, Mr. Ishaan, insists on offering 10% discount to customers.  However, the finance manager, Mr. Mohak, does not approve of such a discount as it would mean a loss of revenue.  Because of dual subordination, the sales manager, Mr. Anshik, could not achieve the sales target.

1. Which concept of management is Sigman Ltd. lacking?  State it.
2. Which principle of management has been overlooked by this company?   State it.
3. Which principle of management has been overlooked by this company?  State it.          (6 marks)

Ans.

1. The company is lacking coordination. This is the process by which the activities of different departments are synchronized to ensure unity of action.

  2. Concept: Unity of Command

• In Sigma Ltd., the absence of "Unity of Command" leads to dual subordination for the sales manager, Mr. Anshik.

• Mr Anshik faces conflicting directives from the marketing manager, Mr Ishaan, who advocates offering discounts to boost sales, and the finance manager, Mr Mohak, who opposes the idea due to potential revenue loss.

• This dual subordination hampers Mr Anshik's ability to effectively achieve the sales target set by the CEO, Mr Shashank, as he receives contradictory instructions from multiple superiors.

 3. Principle: Unity of Direction

• In addition to lacking "Unity of Command," Sigma Ltd. also overlooks the principle of "Unity of Direction."

• This principle emphasizes the importance of aligning all activities within the organisation towards a common goal or objective.

• While the CEO has set a sales target of 10 crore in a month, the conflicting opinions between the marketing manager and the finance manager regarding offering discounts create disunity in direction.

• The marketing manager's proposal to offer discounts to increase sales conflicts with the finance manager's concern about potential revenue loss, resulting in a lack of alignment in efforts towards achieving the sales target.

• This lack of unity in direction hampers the company's ability to effectively coordinate its actions and resources towards the common goal of achieving the sales target.

Q16. ABC Ltd. is engaged in producing electricity from domestic garbage.  There is almost equal division of work and responsibility between workers and management.  The management even takes workers into confidence before making important decisions.

All the workers are satisfied as the behaviour of the management is very good.

1. State the principle of management described in the above para.
2. Identify any two values which the company wants to communicate to the society.           (3 marks)

Ans.

1. The principle of Taylor described in the above para is Cooperation, Not Individualism.

Values communicated to society by ABC Ltd.:

1. Employee Empowerment: ABC Ltd. values and promotes employee empowerment by involving workers in decision-making processes and sharing responsibilities equally between workers and management. This communicates a commitment to fostering a sense of ownership and involvement among employees, empowering them to contribute meaningfully to the company's success.

2. Good Governance and Transparency: The company emphasizes good governance and transparency by taking workers into confidence before making important decisions. This demonstrates a commitment to open communication, trust, and fairness in organizational practices, thereby promoting transparency and accountability in its operations.

Q17. Voltech India Ltd. manufactures LED bulbs to save electricity and running under heavy losses.

To recover from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost.  The management also asked the workers to work overtime without any additional payment and promised to increase to wages of the workers after achieving its mission.  Within a short period, the company started earning profits because both the management and the workers honoured their commitments.

1. State the principle of management described in the above para.
2. Identify any two values that the company wants to communicate to society.          (3 marks)

Ans.

1. The principle of management described in the above para is Discipline.

Discipline is obedience to organizational rules and employment agreements, which are necessary for the working of the organization.

  2. Values communicated to society by Voltech India Ltd.:

• Fairness and Social Responsibility: The company shows a commitment to fairness and social responsibility by promising to increase wages for workers after achieving its goals. Although they initially requested overtime work without extra payment, the company ensures that workers will be compensated fairly once profitability is restored.
• Ethical Conduct and Integrity: Voltech India Ltd. upholds ethical conduct and integrity by fulfilling its commitments to both management and workers. While relocating to a low-cost labour area may raise ethical concerns, the promise to increase wages demonstrates the company's integrity, ensuring trust and transparency in its dealings.

Q18. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without paying any interest to the organisational objectives.

1. Which aspect of management is the company lacking?  What will be its impact on the organization?
2. Identify the principle of management which has been overlooked by this organization.
3. State any two values neglected by the people of this organization.   (5 marks)

Ans. Lacking Aspect of Management: Coordination

Impact on the Organization: The lack of coordination among departments in setting their own objectives without aligning them with organizational objectives can lead to inefficiency, duplication of efforts, and conflicts, and ultimately hinder the achievement of overall organizational goals. Departments may pursue their own agendas, resulting in disjointed efforts, wasted resources, and decreased overall performance of the organization.

Principle of Management Overlooked: Unity of Direction

Values Neglected by the People of the Organisation:

• Teamwork and Collaboration: The departments' focus on setting their own objectives without considering organizational goals neglects the value of teamwork and collaboration. Instead of working together towards common objectives, departments may operate in silos, hindering synergy and cooperation within the organization.

• Organizational Vision and Mission: By disregarding organizational objectives in favour of departmental goals, the people of Kushal Ltd. neglect the value of aligning individual and departmental efforts with the organization's vision and mission. This lack of alignment can lead to a loss of focus on the overarching purpose and direction of the organization, resulting in fragmented efforts and diminished organizational effectiveness.

Q19. Telco Ltd. manufactures files and folders from old clothes to discourage the use of plastic files and folders.  For this, they employ people from nearby villages where very less job opportunities are available.  An employee, Harish, designed a plan for cost reduction, but it was not welcomed by the production manager.  Another employee gave some suggestions for improvement in design, but it was also not appreciated by the production manager.

1. State the principle of management described in the above para.
2. Identify any two values that the company wants to communicate to society. (3 marks)

Ans.

1. The principle of management described above is initiative. This principle emphasises the eagerness to take action without needing to be prompted.
2. The values that the company wants to communicate to society are:
   • Sensitivity towards the environment.
   • Creation of job opportunities.
   • Development of backward regions.

Q20. Khandelwal Ltd., a tyre manufacturing concern, has been established for more than ten years.  Having made good profits in the past, the company wanted to expand further and hence did not declare a bonus for the previous year.  The workers got agitated and trade union declared strike and demanded bonus and other facilities.  The management decided not to give in to their demands.

1. Which principle of scientific management is overlooked in the given case?
2. State any two values overlooked/ignored by the management in the above case.

(3 marks)

Ans.

1. Principle of Scientific Management Overlooked: The principle that has been overlooked in this case is harmony, not discord. This principle emphasises the importance of cooperation between management and workers for the overall success of the organisation.
2. Values overlooked are:
   1. Mutual understanding
   2. Empathy
   3. Peace and stability
   4. Law and Order
   5. Sense of belongingness  (any two)

Q21. Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials.  He proposes to adopt to logical approach to his business rather than a hit-and-trial method as he knows that this can result in tremendous saving of human energy as well as wastage of time and materials.  He plans to adopt a paternalistic style of management in practice to avoid any kind of class conflict that may emerge between him and the workers.  Moreover, he plans to seek the opinion of his workers before making any important decisions and also offers incentives to them for providing valuable suggestions for the business.

In the context of the above case:

1. Identify and explain the various principles of scientific management that Hritik plans to apply in his business.
2. List any two values that he wants to communicate to the society by offering eco-friendly packaging material.

Ans.

1. The various principles of scientific management that Hritik plans to apply in his business are described below:
   • Science, not Rule of Thumb: Hritik aims to use systematic approaches based on scientific principles rather than relying on assumptions.
   • Harmony, Not Discord: He intends to foster a cooperative atmosphere to minimise conflicts between management and workers.
   • Cooperation, Not Individualism: Hritik plans to promote teamwork and collective effort rather than individual competition.
2. The two values that Hritik wants to communicate to society by offering eco-friendly packaging materials are:
   • Concern for the Environment: He aims to highlight the importance of sustainability and protecting natural resources.
   • Sense of Responsibility: Hritik seeks to encourage societal accountability towards ecological challenges.

Q22. Gaurika has been appointed as the chief organizer of a weeklong cultural event.  Being a staunch follower of scientific management, she decides to execute her work by putting into practice the various techniques of scientific management.  Based on several observations, she can determine that the standard time taken by the security officer at the gate to check the credentials of each visitor is 30 seconds.  So she decides to employ two persons on this job for every function along with the other necessary support staff.  She considers the fact that every day, the functions will take place in three shifts of four hours each, therefore it is important to give breaks to the support staff even in a single shift to take her/his lunch etc. moreover, on introspection, she determines that the best way to distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would help to save time and eliminate any kind of confusion.

In the context of the above case:

1. Identify and explain the various techniques of work study which have been put into practice by Gaurika.
2. List any two values that Gaurika wants to communicate to society.

Ans.

1. The various techniques of work study that have been put into practice by Gaurika are outlined below:
   1. Time Study: Gaurika has determined that the standard time taken by the security officer to check each visitor's credentials is 30 seconds. This technique allows her to optimise the scheduling of staff.
   2. Fatigue Study: She recognises the need to provide breaks for the support staff during shifts to maintain their efficiency and well-being.
   3. Method Study: Gaurika has evaluated the best method for distributing refreshment boxes, deciding to hand them out at the exit gate to save time and reduce confusion.
2. The two values that Gaurika wants to communicate to society are:
   Optimum utilisation of resources: This highlights the importance of making the best use of available resources.
   Customer satisfaction: Ensuring that visitors have a pleasant experience at the event is a key priority.

Q23. ‘Study Buddy Pvt.’ Is company dealing in stationery items. To establish standards of excellence and quality in materials and the performance of men and machines, the company adheres to benchmarks during production.  Moreover, its products are available in limited varieties, sizes and dimensions, thereby eliminating superfluous diversity of products.

Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’

Ans. Technique of scientific management: Standardisation.

1. Study Buddy Pvt. Ltd. adopts standardisation by:
   • Establishing benchmarks during production.
   • Limiting the varieties, sizes, and dimensions of products.
2. Standardization ensures:
   • Consistency in materials and performance.
   • Quality control and excellence in production.
3. By adhering to standardized processes, Study Buddy Pvt. Ltd. achieves:
   • Efficiency in operations.
   • Enhanced quality and customer satisfaction.

Q24. Tina and Anshu completed their MBAs and started working in a multinational company at the same level.  Both are working hard.  Anshu has the habit of backbiting and wrongly reporting on his colleagues to impress the boss.  All the employees in the organization know about it.  At the time of the performance appraisal also Tina’s performance was rated better than Anshu's.  Even then, their boss decided to promote Anshu, stating that, being a female, Tina would not be able to handle the complications of a higher post.

1. Identify and explain the principle of management that was not followed by this company.
2. Identify the values being ignored.

Ans.

1. The company is violating the “Principle of Equity.”
2. The values ignored are:
   1.  Gender equality
   2. Reward for performance
   3. Good human behaviour.

Q25. In one of his principles, Taylor suggested that job performance should be based on scientific enquiry and not on the will/wish or personal intuition of the manager.

1. Name that principle.
2. What values can be followed by using this principle?

Ans.

1. Principle of “science not rule of thumb.”
2. If the manager is using this technique, he can follow the value of objectivity as when decisions are taken scientifically he cannot be biased.

Q26. The production department of Alpha Ltd. was not performing well on detailed analysis, it was observed that the workers of that department were overburdened.  They were forced to work for longer hours without any breaks.  So the management planned to replace the production manager.  They appointed Mr. Hari as the new Production Manager.  He observed the average worker and noted down their times.  He noted down the time they worked and the time they required to be fresh to join back the work.  Based on this observation, he set the break intervals for workers. He gave small breaks to workers to recharge their energy.

1. Name and explain the technique of scientific management used by Mr. Hari.
2. State the value which Mr. Hari wants to communicate to the society by allowing rest intervals to workers.

Ans.

1. Fatigue study.
2. Value of humanity/sympathy/respect towards employees.

Q27. In the staff meeting, the principal of the school objected that teachers start the teacher after 5 to 10 minutes in third-floor classes.  He warned them as students are complaining about this.  The teachers explained to the principal that when we climb steps from ground to third floor.  We get tired and need 5 to 10 minutes of rest before starting the lecture.  The principal planned to install a lift in school so that teachers do not waste their energy on the wasteful activity of climbing steps.

1. State the techniques of scientific management used by the principal.
2. State any other technique of scientific management.

Ans.

1. “Technique of motion study.”
2. The other two techniques are:
   1. Functional foremanship
   2. Time study.

Q28. In a factory, the toolbox was kept under the table of every worker; whenever a worker needed tools, he had to bend tape out tool from tool box and keep it back after use.  The newly appointed supervisor observed it and suggested keeping a stool near every worker’s chain where toolbox can he placed so that workers do not waste their energy in bending again and again.

1. Which technique of scientific management is used by the New Supervisor?
2. State the objective of the motion study.

Ans.

1. Motion study.
2. The objective of the motion study is to eliminate unproductive worker movements of workers.

Q29. Mr. Mukesh used to manufacture shoes by employing labourers who were easily available.  When his son, after completing his MBA, joined the business, he analysed that if we use a capital intensive method by using a machine, it will reduce the cost, and the quality of shoes will also improve.

1. Which technique of Scientific management is used by his son.
2. What is the objective of that technique?

Ans.

1. Method Study
2. Finding the best way of doing a thing.

Q30. Mr. Kapoor, the Finance manager of ABC Ltd., applied for leave to attend a family function in Amritsar.  The director of the company requested him to cancel his leave as there is an important meeting scheduled on that date.  Mr. Kapoor immediately agreed and cancelled his trip as he thought attending the meeting was more important for the company’s benefit.

1. Which principle of Fayol is applied by Mr. Kapoor?
2. Explain that principle.

Ans.

1. Principle of subordination of individual interest to general interest.
2. According to this principle, the interest of an organisation must supersede the interest of individuals or employees.  In the organisation, all the employees are working with some objective, and there is always an objective of the organisation.

Q31. The manager of ABC Ltd. asked his workers to work overtime to increase the production and earn more, but he did not pay extra wages to workers for extra time worked.  The workers started feeling dissatisfied and stopped contributing their maximum.

1. Which principle of Fayol is violated in the above case?
2. Explain that principle.

Ans.

1. Principle of Remuneration.
2. According to this principle, the interest of an organisation must supersede the interest of individuals or employees.

Q. 32. Mr. Rajiv is the owner of Laxmi Dairy.’  It produces various milk products.  He always tests various ways of producing different products and chooses the best and most economical way of production.  He is also very particular about fixing a place for everything, and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production.

1. Which technique of scientific management is applied by Mr. Rajiv?
2. Which principle of Henry Fayol is followed by him?

Ans.

1. Method Study
2. Principle of order

Q. 33. Mr. Rajiv, the senior manager of Unique Enterprise, considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone.  The employees of the unique enterprise were not working efficiently, and the company’s profit margin started declining. To tackle the problem, the company appointed a new manager from IIM Bangalore.  The new manager, after joining, made a policy that all the decisions will be taken after consulting employees in the meeting.  All employees must give some suggestions, and the best suggestions will be rewarded with financial and nonfinancial incentives.  This policy had positive effects on the company.

1. State the principle of Henry Fayol used by new managers.
2. State the technique of scientific management related to the above case.

Ans.

1. Principle of initiative.
2. “Cooperation, not individualism.”

Q. 34. In a school principal makes sure that every instruction, order or information given by him must be passed to vice-principal then Head of the department and then to teachers and students must be informed by respective teachers only.  He never allows teachers to directly communicate with him.

1. The Principle of Henry Fayol was followed by the school principal.
2. In case of emergency which concept of Scalar Chain can be used by teacher to pass urgent message directly to principal.

Ans.

1. Scalar Chain.
2. Gang-plank.

Q. 35. Pawan is working as a Production Manager in CFL Ltd., which manufactures CFL bulbs.  There is no class conflict between the management and workers.  The working conditions are very good.  The company is earning huge profits.  As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.

1. State the principle of management described in the above paragraph.
2. Identify any two values which the company wants to communicate to society.

Ans.

1. The principle of management described in the above paragraph is ‘Harmony, not discord’.
2. The two values that the company wants to communicate to society are:
   1. Prosperity
   2. Sharing

Q. 36. The principles of Taylor and Fayol are mutually complementary.  One believed that management should share the gains with the workers while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living.

Identify and explain the principles of Fayol and Taylor referred to in the above paragraph.

Ans.

The principles of Fayol and Taylor referred to in the above paragraph are ‘Remuneration of Employees’ and ‘Harmony, Not Discord’.

1. Remuneration of Employees
2. Harmony, not Discord

Q. 37. The principles of Taylor and Fayol are mutually complementary.  One believed that management should not close its ears to constructive suggestions made by the employees, while the other suggested that a good company should have an employee suggestion system whereby suggestions that result in substantial time or cost reduction should be rewarded.

Identify and explain the principles of Taylor and Fayol referred to in the above paragraph.

Ans. The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’.

1. Initiative
2. Cooperation and Not Individualism

Q. 38. Hina and Harish are typists in a company having the same educational qualifications.  Hina gets Rs. 3,000 per month and Harish gets Rs. 4,000 per month as salaries for the same working hours.  Which principle of management is being violated in this case?  Name and explain the principle.

Ans. The principle of Equity has been violated in this case.  It emphasizes kindliness and justice in the behaviour of managers towards workers.  No discrimination should be made by them based on caste, creed, gender or otherwise.

Q39. Rajveer works as a plant superintendent in a carpet-making factory.  To complete the export orders on time, the production manager asks him to make the workers work overtime, whereas the finance manager is strictly against this practice because it will increase the cost of production.  Moreover, Rajveer feels that since the company is manufacturing handmade carpets as well as machine-made carpets, there is a lot of overlapping of activities.  Therefore, there should be two separate divisions for both of them, wherein each division should have its own in charge, plans and execution resources.

In context of the above case:

1. Identify and explain the principle of management which is being violated.
2. Also, identify the principle of management that Rajveer feels should be implemented in the factory.
3. Give any two differences between the principle of management as identified in part (a) and part (b), respectively.

Ans.

The principle of management which is being violated in stated below:

1. Unity of command
2. Unity of direction
3. The difference between the principle of Unity of Command and Unity of Direction is given below
   (i) Focus:
   - Unity of Command: Ensures that each employee receives instructions from only one superior, avoiding confusion and conflicts in authority.
   - Unity of Direction: Ensures all activities in an organization are aligned towards achieving a common goal under one plan of action.
   (ii) Application:
   - Unity of Command: This applies to individual employees and their reporting structure.
   - Unity of Direction: This applies to the organization as a whole, emphasizing coordinated efforts towards objectives.

Q40. Gurpreet is running a retail mart in Varansi to provide various types of products for daily use under one roof to the buyers.  The employee turnover in his business is very high, and he is perpetually on the lookout for new staff.  The fact of the matter is that he lacks managerial skills and assigns work to his employees on an ad hoc basis without letting them settle down in a specific work.  This approach of his creates a sense of insecurity among the employees, and they tend to leave the job very quickly.  However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.

In the context of the above case:

1. Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually on the lookout for new staff.
2. “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.”  Name and explain the relevant principle of management that will have been brought into effect by Gurpreet.

Ans.

1. Stability of Personnel
2. Remuneration of Employees

Also Check at EduRev: 

• Chapter Notes - Principles Of Management 
• Learn Principles of the Scientific Management: Overview 

Q41. After finishing her BBA degree course, Tanya got a job as an Assistant Manager in a retail company through the reference of her cousin Taruna, who works in the same company as a Senior Manager.  Taruna decides to guide Tanya through her experience by making her aware of the important facts about management in practice.  She tells her that the principles of management provide ready-made, straitjacket solutions to all managerial problems, nor are they rigid prescriptions, which have to be followed absolutely.

In the context of the above case:

1. Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
2. Why do the principles of management not provide ready-made, straitjacket solutions to all managerial problems?

Ans.

1. The two features of principles of management mentioned in the above paragraph are as follows:
   1. General guidelines
   2. Flexibile
2. As real business situations are very complex and dynamic and are a result of many factors, the principles of management do not provide ready-made, straitjacket solutions to all managerial problems.

Q42. Raj and Simran are both qualified eye surgeons and good friends.  After obtaining a certificate of practice, they decide to pursue a career of their own choice.  Raj starts an eye care centre in the city, whereas Simran joins a government hospital in a small village.  They meet after a long time at a party.  Raj invites Simran to visit his eye care centre, and she accepts his invitation.  She observes at his clinic that there is a fixed place for everything and everyone, and it is present there so that there is no hinderance in the activities of the clinic.  Also, Raj always tends to replace ‘I’ with ‘We’ in all his conversations with the staff members.  Later on, Raj shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.

In the context of the above case:

1. Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
2. List any two values that Simran wants to communicate to the society by taking up a job in a village.

Ans.

1. The various principles of management that Raj is applying for the successful management of his eye care centre are described below:
   • Order: This principle ensures that everything has a designated place, promoting an efficient workflow.
   • Spirit de Corps: Raj fosters teamwork by using "We" instead of "I," encouraging collaboration among staff.
   • Equity: He treats all staff members equally, addressing underperformance firmly to uphold fairness.
2. The two values that Simran wants to communicate to society by taking up a job in a village are:
   • Humanity: Demonstrating compassion and care for those in need.
   • Concern for the poor: Addressing the healthcare needs of underprivileged communities.

Q43. Swaraj is running an office furniture showroom.  Most of his clients are businessmen and they prefer to buy goods on credit.  Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days while negotiating a deal with a buyer.  On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalize a highly profitable deal for the business.  So Mr. Bhardwaj requests Swaraj to grant him additional authority to offer a credit period of 30 days in the interest of the business.  But Swaraj refuses to extend his authority, and as a result, the deal is not finalized.

In the context of the above case:

1. Can Mr. Bhardwaj be held responsible for the loss of the deal?  Why or why not?  Give a suitable reason in support of your answer.
2. Also, explain the related principle.

Ans.

1. No, Mr. Bhardwaj cannot be held responsible for the loss of the deal in this case, as he was not given the necessary authority to fulfil his responsibility. There is an imbalance between authority and responsibility; without the power to offer a longer credit period, he could not effectively negotiate the deal. 
2. The related principle is known as Authority and Responsibility. This principle states that individuals should have the appropriate level of authority to match their responsibilities. In this scenario, Mr. Bhardwaj's inability to offer a credit period of 30 days due to Swaraj's refusal to extend his authority directly contributed to the failure to finalise the deal.

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