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Published on: 03/08/2018
From this chapter principle of Management, the important three mark question is prepared. It covers the question from the book back and creative questions.
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Take MCQ Business Studies Test

1.
Name and explain the principle of management according to which a manager should replace 'I' with 'We' in all his conversation with workers?
2.
Taylor's principles of scientific management and Fayol's principles of management are mutually complementary. Do you agree? Give Reasons in support of your answer.
3.
State few values that are taken care of by applying Fayol's principles in management.
4.
What is meant by principle of centralisation?
5.
Arnav, a manager of Micro Ltd, does not distribute the work amongst his subordinates, according to the capabilities. He has given the work on the basis of favouritism. Which principle is overlooked? Give some of its violating effects.
6.
Illustrate the principle of 'stability of tenure' through a suitable example.
7.
The production Head of Maruti Udyog Ltd instructs his foreman to go slow in producing the product but the Sales Manager wants more production in order to increase the sales of the company. Thus, he forced the production foreman to go fast. Which principle of management is being violated in this case? State the consequences which can occur.
8.
If an organisation does not provide the right place for physical and human resources, then which principle is violated? What are its consequences?
9.
Explain the meaning of the 'principle of unity direction '. State its two positive and negative effects.
10.
Which principle of management envisages that each group of activities having the same objective, must have one head and one plan? Explain the principle with suitable example.
11.
Develop on imaginary plan of differential piece rates to be introduced for the workers, engaged in making furniture.
12.
How does the technique of motion study help in improving the efficiency level?
13.
How does the technique of time study help in improving the efficiency level?
14.
Discuss the following features of management principle.
(i) Contingent
(ii) Mainly Behavioural
15.
How are principles of management principles are derived in the following two ways:
16.
State some of the significance of management principles.
17.
State three reasons as to why study of management principles is necessary.
18.
Name and explain the technique of scientific management, which helps in establishing interchangeability of manufactured parts and products.
1.
Esprit de corps. It is the principle of management, according to which a manager should replace 'I' with 'We' in all his conversation with workers. Literally speaking, the phrase 'esprit de corps' means the spirit of loyalty and devotion which unites the members of the group.
According to Fayol, management should promote a team spirit of unity and harmony among employees. A manager should replace 'I' with 'We' in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members.
| S.No. | Positive Effects | Negative Effects |
| (i) | Helps in developing feeling of trust and belongingness among employees | Failure in achievement of goals |
| (ii) | Easy achievement of goals | Lack of coordination in the organisation. |
2.
Yes, I agree that the work of Taylor and Fayol are essentially complementary. They both focussed on maintaining good industrial relations. They gave solutions of managerial problems. They presented a systematic study on management. Both of them developed their ideas, thoughts and principles after a following are the reasons:
(i) The aim of both and Fayol, is to maximise the efficiency and achieve the aims.
(ii) Taylor and Fayol both advocated on division of work and responsibility.
(iii) Both of them have contributed immensely to the knowledge of management.
3.
Following are few values that are taken care of by applying Fayol's principles:
(i) Equality of equity
(ii) Value of customer
(iii) Care of environment
(iv) Dealing with business associates
4.
Centralisation means concentration of authority at the top level of management. Fayol suggests that an appropriate balance should be maintained between centralisation and decentralisation.
The degree of centralisation and decentralisation will depend upon several factors such as size of the organisation, competence of top managers, ability of subordinates, etc.
5.
The principle of 'equity' is overlooked as the manager is doing partiality in distributing the work.
(i) It leads to dissatisfaction among employees.
(ii) Labour turnover will increase in the organisation.
(iii) It will result in poor relations between workers and managers.
6.
Rekha, a Manager of solutions Ltd recruited twenty new employees. She kept these employees in an organisation for a period of one year, so that the employees become familiar with their jobs and can contribute their best for the realisation of goals.
The above stated example clearly defines the principle of 'stability of tenure', Which states that an employee should be placed at the position for a minimum fixed tenure so that he/she can contribute his best towards the attainment of goals.
7.
In this case, 'Principle of Unity of Command' is violated as the production foreman is getting conflicting instructions and orders from two bosses, one is Production Manager and the other is Sales Manager.
Following are the consequences:
(i) It leads to generate confusion in the mind of subordinates.
(ii) It also results in ego clashes and conflict between the managers.
(iii) There would be no discipline and order in the organisation.
(iv) Production will be delayed as subordinates will get the chance of making excuses.
8.
'Principle of order' is violated.
Its consequences are:
(i) Wastage of time and energy in search of men and material.
(ii) Productivity will suffer
(iii) Obstacle in smooth working in the organisation.
9.
It implies that there should be one head and one plan for a group of activities having the same objectives.
Two positive effects are:
(i) It ensures unity of action among various groups
(ii) It helps in coordination.
Two negative effects is violated are:
(i) Lack of coordination.
(ii) Failure in achievement of goals.
10.
'Unity of direction' is the principle of management which states that each group of activities having same objective must have one head and one plan.
For example, if an organisation is producing different types of toys-plastic toys, soft toys, then each type of toys should have separate division and under each division, there should be a boss who looks after the work of that division and employees should work under him towards the attainment of plan of their division under the direction of one head only.
11.
Suppose standard output is fixed at 20 units and two workers A and B produces 24 and 16 units respectively.
Two piece rates are \(RS.100\quad and\quad RS.75.\)
A will receive\(=100\times 24=RS.2400\)
(as he is producing more than standard units)
B will receive\(=75\times 16=RS.1200\)
(as he is producing less than standard units)
Thus, the inefficient worker i.e. B will be motivated to produce more units of furniture to reach the standard output.
12.
The technique of motion study helps in improving the efficiency level in the following ways:
(i) It helps in determining the movements of workers while performing a task.
(ii) It helps to differentiate between productive and unproductive motions.
(iii) It helps to eliminate the unnecessary movements and results in saving the time to complete the job.
13.
Technique of time study helps in improving the efficiency level in the following ways:
(i) Setting up the standard target for workers.
(ii) Determining the number of workers required to perform a job.
(iii) Categorising the workers into efficient and inefficient categories.
14.
(i) Contingent
The application of principles of management is contingent or dependent upon the prevailing situation. Therefore, principles have to be applied as per the requirements of a given situation, leading to professionalisation of management.
(ii) Mainly behavioural
Management principles aim at influencing human behaviour, for better utilisation of resources in the organisation. The management principles do not pertain to material things and are therefore, called behavioural.
15.
(i) On the basis of observation
Fayol developed management principles on the basis of observation. e.g 'division of work ' tells us that in order to achieve efficiency, divide the work into small tasks. How can this analysis be made? It is only made by those managers who observed that division of work leads to specialisation.
(ii) On the basis of observation experimentation
All the principles of management establish a cause-and-effect relationship between variables, which means that they are developed on the basis of experimental studies.
16.
Study of management principles is necessary due to the following reasons:
(i) They provide useful insights to managers.
(ii) Principles help managers to secure optimum utilisation of resources.
(iii) It helps in taking scientific decisions.
(iv) Management principle help in fulfilling social responsibilities.
17.
Study of management principles is necessary due to the following reasons:
(i) They provide useful insights to managers.
(ii) Principles help managers to secure optimum utilisation of resources.
(iii) It helps in taking scientific decisions.
(iv) Management principle help in fulfilling social responsibilities.
18.
Standardisation of work is the technique of scientific management, which helps in establishing interchangeability of manufactured parts and products.
It is the process of setting standards for every business activity, process, raw materials, time, machinery and methods to achieve efficiency.
Standardisation of product implies that the size, design, quality, shape, etc of the product should meet the requirements and tastes of consumers.
The objective of standardisation are:
(i) To maintain quality standards.
(ii) To set up performance standards for men and machines.
(iii) To provide interchangeability of manufactured parts and products.
(iv) To achieve target production in pre-determined time.
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