My Cart
Your Cart 0

    Your cart is empty.

  • Total (Amount) ₹0.00
NCERT · Class 12 · Business Studies

Chapter 2: Principles of Management

Practice each question, then open the answer or worked solution.

Textbook exercises

20 questions
Q1Written answer

What makes principles of management flexible?

Show solutionHide solution
Worked solution

Ans: The principles of management can be modified according to the demand of the situation, hence they are not rigid, and enjoy flexibility.

Q2Written answer

State the main objective of time study.

Show solutionHide solution
Worked solution

Ans: To determine the standard time taken to perform a well: defined job.

Q3Written answer

Name the principle that is an extension of the 'harmony, not discord'.

Show solutionHide solution
Worked solution

Ans: Cooperation, not individualism.

Q4Written answer

State any two causes of fatigue that may create hindrance in the employee's performance.

Show solutionHide solution
Worked solution

Ans: The two causes of fatigue are:

  • Long working hours without breaks, 

  • Dissatisfactory working conditions.

Q5Written answer

Sanaklal and Gagan started their career in Wales Limited after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.

Show solutionHide solution
Worked solution

Ans: Wales Limited followed the principle of 'Stability of Personnel'.

Q6Written answer

Which technique is used by Taylor for distinguishing efficient and inefficient workers?

Show solutionHide solution
Worked solution

Ans: Differential Piece Wage System was used by Taylor under which workers are paid according to their efficiency. An efficient worker will get higher wages as compared to an inefficient worker.

Q7Written answer

How is the principle of 'Unity of Command' useful to management? Explain briefly.

Show solutionHide solution
Worked solution

Ans: Unity of command states that a person should get orders from, and be answerable to only one superior. If a person gets orders from two or more superiors at the same time, unity of command is violated and it leads to confusion for the employee regarding what tasks to be done and whom to report. 

Therefore, to maintain a smooth workflow and stability in the organization, unity of command is essential for management. If there is no unity of command, all the employees will be confused regarding what is to be done, and who to listen, which will consequently disrupt the flow of work, causing delays and efficiency.

Q8Written answer

Define Scientific Management. State any three of its principles.

Show solutionHide solution
Worked solution

Ans: Scientific management means the use of tools and techniques and specialized personnel to carry out the task for achieving better quality and cost reduction. It is a theory of management developed by Frederick Taylor in 1911 which focuses on the ways of getting the work done in the best and most cost-effective way. 

Three principles of scientific management

  1. Science, not rule of thumb: In this principle Taylor states that the management should follow scientific methods and not the 'Rule of Thumb’ approach. Rule of thumb insists on finding solutions through trial and error approach. Taylor says that following scientific methods will result in tremendous savings of time and materials.

  2. Cooperation not individualism: A spirit of cooperation should exist between the workers and management, and not the spirit of individualism. Both management and the workers should cooperate with each other. Management should consider all the good suggestions made by the employees and workers should never think of doing unreasonable things to get their demands fulfilled.

  3. Development of each and every person to his /her greatest efficiency and prosperity: In this principle, Taylor said that adequate opportunities and training must be available for employees, so that with increased skills, and better knowledge about how to do a task, they can work for the improvement of their performance, and enhancement of efficiency and achieve greater heights in their careers.

Q9Written answer

If an organization does not provide the right place for physical and human resources in an organization, which principle is violated? What are the consequences for it?

Show solutionHide solution
Worked solution

Ans: The principle of 'order' is violated  if an organization does not provide the right place for physical and human resources in an organization.

According to this principle there should be a place for everything and everyone and every person or thing should be found in its/his allocated place. If this principle is violated then the objectives will not be achieved efficiently and effectively. Since a lot of time will be wasted in finding out the resources, a lot of wastage of energy and delay in taking decisions or performing the work will take place.

Q10Written answer

Explain any four points regarding the significance of Principles of management.

Show solutionHide solution
Worked solution

Ans: Significance of principles of management are as follows:

  1. Optimum utilisation of resources and effective administration: Principles of management are designed in a way that they guide the managers whenever need arises, hence they can take decisions on time without wasting their time attempting trial and error methods. This results in enhancement of productivity, time and cost saving as well as optimum utilisation of resources.

  2. Scientific decisions: Principles of management help in scientific decision making because the decisions based on principles are free from bias and prejudice. Here emphasis is on logic rather than blind faith.

  3. Meeting changing environment requirements: Principles of management help the managers in meeting the changing environmental needs because they are flexible in nature and can be modified according to the changes taking place in the environment.

  4. Provide managers with useful insights into real world situations: Principles of management provide useful insights into reality, as they are made after considering the past mistakes. This helps in saving time by solving recurring problems quickly. Principles also increase managers knowledge, skills, ability and understanding of managerial situations and circumstances.