CLASS 12 BUSINESS STUDIES
UNIT - 2
Principles of Management
Short Type Questions and Answers (Marks - 3)
1. Discuss three fundamental features of Management Principles.
Ans. The three features of management principles are :
(i) Flexibility: Management principles are not rigid. They can be applied differently under different conditions. These can be modified by the managers who are using them.
(ii) Universal application: The principles of management are universal in nature that means they can be applied to all types of organisations irrespective of their size and nature These are suitable for all kinds of organisations.
(iii) Contingent Management principles are contingent or dependent upon the situations prevailing in organisation. The application of principle has to be changed according to the nature, size and type of organisation.
2.What do you mean by management principle?
Ans. A principle refers to a statement which reflects the fundamental truth about some phenomenon based on cause and effect relationship. Management principles are the statements of fundamental truth which act as guidelines for taking managerial actions and decisions. Management principles are very flexible and are applied with creativity as these principles influence the behaviour of human beings,
3.What is Scientific Management?
Ans. In simple words, scientific management implies the art of knowing exactly what is to be done and how it is to be done. Under this approach, scientific techniques are applied in the recruitment, selection and training of workers and are also used in tackling various industrial problems
A'Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and the cheapest way-FW Taylor. Thus, scientific management is the process in which scientifically developed standards, principles and techniques are applied.
4.Explain in brief the concept of Gang Plank.
Ans. According to the concept of Gang Plank, two executives of the organization of different department at the same level can communicate directly in case of emergency, so that speedy decisions and actions could be taken For example, in an organization there are employees A, B, C, D, E, F, GH, I at various posts If empolyees 'C' has to communicate with employee 'G' using the scalar chain,the route should be like CB.
5.Distinguish between time study and motion study.
Ans:-
6.Write three features of scientific Management.
Ans. Three features of scientific management are as follows:
(i) Systematic Approach: Scientific Management is a systematic approach to management and its use ensures that all activities are completed in a systematic and scientific manner
(ii) Useful for large organisations : Since the scientific management system is quite expensive to implement, it is useful only for larger organisations. Time is not far when this expensive nature of scientific management is made less costly.
(iii) Attempts to minimise wastes : Scientific management aims at minimising the waste of time, materials, machine etc. This is indeed very essential to achieve higher level of performance and easier and quicker way to achieve goals.
AHSEC CLASS 12 BUSINESS STUDIES PRINCIPLES OF MANAGEMENT COMPLETE NOTES
7.Write three importance of management principles.
Ans. Three importances of management principles are as follows:
(i) Optimum utilisation of resources: The management principles insist on planned activities and systematic organisation of men and materials in the organisation Principles are designed to get maximum benifits from the human efforts and other resources.
(ii) Scientific decisions : Managers have to take number of decisions every day So, they need to assess the resources of organisations very carefully, so that the appropriate decision can be taken by using the available resources in best possible manner.
(iii) Effective administration: The management principles act as guidelines and base to form various administrative policies to have systematic working in the organisation These principles insist on objectivity and scientific decisions .
8.Distinguish between unity of command and unity of direction.
Ans. Distinction between unity of command and unity of direction are:
9. Write three benefits of Scientific Management.
Ans. Scientific Management provides the following benefits
(i) Better Quality Products: By restoring to the measures of standardisation and effective supervision better quality products are ensured.
(ii) Benefits of Division of Labour : The principle of specialisation adopted under scientific management ensures the benefits derived from the division of labour.
(iii) Better Utilisation of Resources: Scientific management techniques ensure optimum utilisation of available resources viz, materials, machines, money and workers etc. It removes the wastage and inefficiency of every kind.
10. Explain three disadvantages/limitations of Scientific Management.
Ans. Disadvantages of scientific management are as follows:
(i) Investment of huge capital : Scientific management is a costly system and a huge investment is required in establishment of planning department, work study etc.
(ii) Over speeding : Scientific management lays standard output, time so they have to rush up and finish the work in time. These have adverse effect on health of workers.
(iii) Unemployement: Workers feel that management reduces employment opportunities from them through replacement of men by machines and by increasing human productivity less workers are needed to do the work.
11. Explain the principle of Scalar chain with an example.
Ans. According to the concept of Giang Plank two executives of the organisation of different departments at the same level can communicate directly in case o emergency So that speedy decisions and the actions could be taken For example, in an organisation there are employees A, B, C, D, E, FGHI various posts. If employee has to communicate with employee G using the Scalar chain the route would be like C4B4A4F4G Thus there will be four steps for the information to reach from employees C to the employee 'G' The route would be like 'CG.
12. Briefly explain stability in tenure principle.
Ans. Stability tenure principle refers to no frequent termination and transfer According to this principle, the management must provide the feeling of job security among the employees because with the feeling of insecurity for the job, the employees cannot contribute their maximum. It implies that employees should not be moved from their position frequently. Frequent turnover of employees is bad for organisation and such decision must be taken when they are almost unavoidable. The morale of this principle is that there should be reasonable stability of tenure of personnel in the organisation. This principle help in reducing employee turnover, feeling of insecurity and cost of training. This, in turn will show higher productivity.
AHSEC CLASS 12 BUSINESS STUDIES CHAPTER 2 BPRINCIPLES OF MANAGEMENT
Short Answer Type Questions (Marks-4)
1.Explain, 'Method Study' and 'Motion Study' as techniques of Scientific Management.
Ans. Method Study: This technique of scientific management is conducted to find out the one best method or way of performing the job which keeps production cost minimum and makes maximum use of resources of the organisation. To determine the best way there are certain parameters right from procurement of raw materials till the final product is delivered. The objective of method study is to minimise the cost of production and maximise the quality and customer satisfaction.
Motion Study Motion snily is a technique which involves the study of movements of operators (and employees) and machines to perform a job so as to eliminate useless motions and find out the best method of doing a particular work. To conduct motion study Taylor suggested to observe an average worker when he is performing the job and note down all the movements he is doing.
2.Discuss Fayol's principles of authority and responsibility and discipline.
Ans. Authority refers to the right of a superior to give orders to the subordinates. On the other hand, responsibility means obligation to complete the job assigned on time. According to this principle there must be balance or parity between the authority and responsibility Excess of authority without matching responsibility may bring negative results and excess of responsibility. Without matching authority will not allow the worker to complete his job on time. There is a need to bring parity between both for best results.
Discipline : Discipline refers to general rules, regulations for systematic working in an organisation. Discipline is necessary for the smooth running of the organisation Without it no organisation can prosper. Fayol insists that discipline is required at superior as well as subordinate level.
AHSEC CLASS 12 BUSINESS STUDIES PRINCIPLES OF MANAGEMENT QUESTIONS ANSWERS.
3.Briefly explain four principles of Taylor's Scientific Management.
Ans. Four Principles of Taylor's Scientific management are Science, Not Rule of Thumb: This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much simplier, easier and quicker.
(ii) Harmony, Not Disrecord: As per this principle, such an atmosphere should be created in the organisation that labour and management consider each other indispensable
(iii) Cooperation, Not individualism : According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation. Taylor has suggested that the manager and the workers should jointly determine standards.
(iv) Development of each and every person to His/Her Greatest Efficiency and Prosperity: This principle says that the efficiency of each and every person should be taken care of right from his selection A proper arrangement of everybody's training should be made. It should also be taken care that each individual should be alloted work according to his ability and interest.
LONG ANSWER TYPE QUESTIONS TYPE 1 MARK 5
1.Distinguish between Taylor's scientific management and Fayol's principles of management.
Ans. Distinction between Taylor's scientific management and Fayol's principles of management are:
2.Discuss five principles of management evolved by Henry Fayol.
Ans. The five principles of management evolved by Henry Fayol are as follows:
(i) Principle of unity of command: According to this principle an employee should receive orders from one boss only because if he is receiving orders from more than one boss then he will get confused and will not be able to understand that whose orders must be executed first. To avoid such confusion the orders must come from one boss only.
(ii) Unity of direction: According to this principle "One unit meants one plan". that is the efforts of all the members and employees of organisation must be directed towards one direction that is the achievement of common goal. This principle leads to coordination.
(iii) Principle of unity: Unity refers to kind, fair and just treatment to employees. Employees will put their maximum efforts only when they are treated with kindness
and justice.
(iv) Principle of remuneration of persons: This principle refers that the employees
in the organisation must be paid fairly or adequately to give them maximum satisfaction. If the employees are underpaid they will not be satisfied anddissatisfaction will lead to increase in employees turn over
(V) Principle of discipline : Discipline refers to general rules, regulations for systematic working in an organisation. Discipline does not mean only rules and regulations but it also mean developing commitment in the employees towards organisation as well as towards each other.
3.Explain five significance of principles of management.
Ans. The significance of principles of management are as follows
(i) Optimum utilisation of resources : The management principles insist on planned
activities and systematic organisation to men and materials in the organisation. Principles are designed to get maximum benefits from the human efforts and other resources.
(ii) Fulfilling social responsibilities: A business is creation of society and makes use of resources of society so it must do something for society also by performing some social responsibilities.
(iii) Scientific decisions : Managers have to take number of decisions everyday. So,
they need to assess the resources of organisations very carefully so that the appropriate decisions can be taken by using the available resources in best possible manner.
(iv) Effective administration : Administration is the function of top level management. In this function major plans and policies are formed. The management principles act as a guide to form various administrative policies to have systematic working inthe organisation.
(v) Meeting changing environment requirement: In business changes take place frequently. Management principles train the managers in implementing the changes in right direction and at right level in the organisation.
AHSEC CLASS 12 BUSINESS STUDIES CHAPTER 2 PRINCIPLES OF MANAGEMENT
Long Answer Type Questions: Type-II (Marks-6)
1.Explain in brief the principles of Scientific Management.
Ans. The scientific management approach propounded by F. W. Taylor is based upon the following four principles :
(i)Science, not Rule of Thumb: This principle says that we should not get stuck in a set routine with the old techniques of doing work, rather we should be constantly experimenting to develop new techniques which make the work much easier, simplier and quicker.
(ii) Harmony, not Disrecord: As per this principle, such an atmosphere should be created in the organisation that labour and management consider each other indispensable. Cooperation, not individualism: According to this principle, all the activities done by different people must be carried on with a spirit of mutual cooperation There should be close cooperation between workers and management. This can be achieved only when there is no conflict between the management and workers.
(iv) Development of each and every person to his/her greatest efficiency and prosperity: According to this principle, the efficiency of each and every person should be taken care of right from his selection. A proper arrangement of everybody's training should be made.It should also be taken care that each individual should be alloted work according to his ability and interest. Such a caring attitude would create a sense of enthusiasm among the employees and a feeling of belongingness too.
2. Explain any six reasons as to why proper understanding of management principles is necessary?
Ans. The principles of management are in the form of predetermined solutions for repeatedly occuring problems. They guide the manager. It is very importent for every manager to know them throughly The reasons as to why proper understanding of management principles is necessary are as follows:
(i) Provide useful insight to managers: The principles of management were developed on the basis of experience of various professional people. The principles make the manager aware about the manner in which he should act in various situations so that he does not repeat the mistakes of the previous managers. In this way, timely guidance reduces the wastage of resources and the objectives can be achieved in a less expensive manner.
(ii) Optimum utilisation of resource and effective administration: In every organisation physical and human resources are used. The function of management is nothing but to put them to optimum use or avoid wastage of resources. And it is possible only when a manager makes use of the principles of management.
(iii) Scientific decisions: A scientific decision means a balanced decision. The principle of management provide the necessary training to the managers so that they can take scientific/balanced decisions. In the absence of these principles the managers have to adopt the method of trial and error.
(iv) Meeting changing Environmental Requirement: In modern times, only such a business unit can remain alive and develop which can keep pace with the rapidly changing environment. In every field of business activity new techniques merging everyday Managers who can understand the changing situations well in tone can alime face competition soccefully. The principle of management able the managers to face this challenge.
(v) Fulfilling Social Responsibility: The principle of management increase the efficiency of the managers and enable them to fulfill their social responsibility More efficient managers can make good quality products at reasonable prices available all the times.
(Vi) Management Training, Education and Research: The advantages of the principles of management encourage the researchers to bring in more improvement in them. The attitude of the managers has molded itself in such a fashion that they are doing: consciously or unconsciously, something new The principles of management are actually providing education and training to the managers by enriching their theoritical and practical knowledge.
3.What is meant by scientific management? Discuss briefly the main elements of scientific management.
Ans. Scientific management implies the art of knowing exactly what is to be done and how it is to be done. Under this approach, scientific techniques are applied in the recruitment selection and training workers and are also used in tackling various industrial problems.
The main elements of scientific management are as follows -
(i) Work study: Work study is related to analysing the work to be performed by eliminating unnecessary operations and finding out the quicker way of doing it. Work study eliminates wasteful and unnecessary operations, reduces effort and increases productivity.
(ii) Standardisation of Tools and Equipment: Standardisation of tools and equipitment was an important element of scientific management. Proper tools and equipments are essential for increasing the efficiency and speed of work.
(iii) Introducing cost system: Another important element of scientific management is the introduction of efficient system of cost accounting. It is a technique used to calculate cost per unit and total cost of production.
(iv) Scientific selection, placement and training: The efficiency and quality of work is linked to the kind of persons selected for taking up different jobs. Workers should be selected by considering their education, experience and attitude towards work. The placement of workers should be such that only the most suitable persons are assigned to work.
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