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Chapters
1: Business Environment
UNIT 2 : Financing
2: Capital - Fixed and Working
3: Sources of Financial for a Join stock Company
4: Banking - Latest Trends
UNIT 3 : Management
5: Management - Meaning, Nature and Importance
▶ 6: Principles of Management
7: Functions of Management and Coordination
8: Planning
9: Organising
10: Staffing
11: Directing
12: Controlling
UNIT 4 : Marketing
13: Marketing - Concept and functions
14: Marketing Mix
15: Consumer Protection
![C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC chapter 6 - Principles of Management - Shaalaa.com](/images/commerce-volume-2-english-class-12-isc_6:2f5674d0d22e4bb38cf38d3d80047526.jpg "C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC chapter 6 - Principles of Management")
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Solutions for Chapter 6: Principles of Management
Below listed, you can find solutions for Chapter 6 of CISCE C. B. Gupta for Commerce Volume 2 [English] Class 12 ISC.
C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC 6 Principles of Management EXERCISES [Pages 155 - 165]
I. OBJECTIVE QUESTIONS MULTIPLE CHOICE QUESTIONS
Which of the following statements best describes ‘Mental Revolution’?
It implies change of attitude
The management and workers should not play the game of one upmanship.
Both management and workers require each other.
Workers should be paid more wages.
On the basis of given paragraph, answer the following:
| Beena, a student of management, likes to relate what she learnt in class to real life situations. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast explaining the significance of adhering to established benchmarks during production to improve efficiency and quality. |
Identify the principle of Scientific Management that should be adhered to, while manufacturing parts for such products:
Division of work and responsibility
Standardisation
Science, not rule of thumb
Maximum not restricted output
On the basis of given paragraph, answer the following:
| Beena, a student of management, likes to relate what she learnt in class to real life situations. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast explaining the significance of adhering to established benchmarks during production to improve efficiency and quality. |
Which of the following benefits of applying management principles is discussed in the above para?
To increase efficiency
To train managers
To improve research
To attain social goals
The directors of XYZ limited, an organisation manufacturing computer, want to double the sales and have given the responsibility to the sales manager. The sales manager has no authority either to increase sales expense or appoint new salesmen. Hence, he could not achieve this target. Identify the principle violated in this situation.
Principle of Authority and Responsibility
Principle of Division of Work
Principle of Scaler Chain
Principle of Centralisation
A company manufacturing motorcycles and cars should have separate divisions for both, headed by separate divisional managers, separate plans and resources. Identify the principle with the help of this example.
Authority and Responsibility
Order
Unity of Command
Unity of Direction
Which of the following statement best describes the principle of ‘Division of Work’?
Work should be divided into small tasks
Labour should be divided
Resources should be divided among jobs
It leads to specialisation
Henry Fayol was a ______.
Social Scientist
Mining Engineer
Accountant
Production engineer
Which of the following is not a Principle of management given by Taylor?
Harmony, not discord
Cooperation, Not Individualism
Functional foremanship
Science, not rule of the thumb
A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate.
Which principle of management has been violated in this situation?
Unity of command
Unity of direction
Subordinating personal interest to general interest
Equity
| 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 any 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, Mohammad Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of higher post. |
Identify the principle of management that was not followed by this multinational company.
Discipline
Order
Equity
Scaler Chain
Name the principle of Scientific Management which suggests the introduction of scientific investigation and analysis.
Science, not rule of thumb
Harmony not discord
Cooperation not individualism
Development of each and every person to her/his greatest efficiency and prosperity
Name the principle of management according to which a manager should replace ‘I’ with ‘we’ in all his conversations with workers?
Discipline
Centralisation
Esprit de corps
Unity of direction
In organization employees are transferred frequently, which principle of management is being overlooked.
Remuneration of employees
Centralisation
Stability of tenure of employees
Authority and responsibility
The production manager of Bharat Ltd., instructs a salesman to go slow in selling the products whereas the marketing manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case.
Order
Scaler chain
Discipline
Unity of command
In India, Panchayats have been given power to decide and spend funds granted to them by Govt. for the welfare of villages. Identify the principle applicable in this situation.
Discipline
Centralisation
Remuneration of employees
Unity of direction
According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed through work study. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the related principle of scientific management.
Harmony, not discord
Science, not rule of thumb
Development of each and every person to get his/her greatest efficiency and prosperity
None of the above
Cooperation, not individualism
Read the following text and answer the following questions (Q.17-Q.20) on the basis of the same.
|
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, 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, when the business was doing well, she honours her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. |
Aditi has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. Which principle of management is being followed here?
Centralization and Decentralization
Division of work
Discipline
Order
Unity of command
Scaler chain
|
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, 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, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. |
“The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.” Identify the principle of Management being followed here:
Centralization and Decentralisation
Authority and Responsibility
Unity of Command
Unity of Direction
|
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, 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, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. |
“Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?
Discipline
Order
Remuneration to Employees
Unity of Direction
Scaler chain
Unity of command
Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?
Order
Scaler chain
Discipline
Equity
Aashray has learnt the principles of management in Business Studies, yet his belongings such as books, clothes, stationery, notebooks etc. are never kept at proper place in spite of having study table & almirah in his room. Which of the following principle is not being followed by Aashray?
Scalar chain
Harmony, not discord
Order
Discipline
Principle of equity means ______.
Equal pay to all
No discrimination among employees
Equal working hours for all
Equal perks to all
A manager punishes his subordinates for wilfully disobeying a legitimate order but only after giving opportunity to the subordinate to put up explanation. Which principle is highlighted above?
Discipline
Equity
Stability of tenure
Scalar chain
Gang plank advocated by Fayol, highlight which feature of management principles?
Flexible
Behavioural
Contingent
General guidelines
One head & one plan is the crux of which of the following principle?
Unity of command
Unity of direction
Discipline
Equity
ASSERTION-REASON QUESTIONS In the questions given below, there are two statements marked Assertion (A) and Reason (R). Read the statements and choose the correct option:
Assertion (A): The principles of Harmony, not discord & concept of Mental Revolution though appear to be different yet they do convey similar meaning.
Reason (R): The essence of both is the underlying spirit of mutual co-operation.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True but Reason (R) is False.
Assertion (A) is False but Reason (R) is True.
Assertion (A): Though Taylor’s focus was from the viewpoint of improving workers’ efficiency & that of Fayol’s from improving managers’ efficiency yet both are complementary to each other contributing to overall improvement of the organization.
Reason (B): Both aim at improving managerial efficiency at shop floor level of management.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True but Reason (R) is False.
Assertion (A) is False but Reason (R) is True.
Assertion (A): The principle of science, not rule of thumb says that we should not get stuck in a set routine rather the method of doing work should be based on trial-and-error method.
Reason (R): The principle of science, not rule of thumb, makes the work much simpler, easier and quicker.
Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is True but Reason (R) is False.
Assertion (A) is False but Reason (R) is True.
FIll IN THE BLANKS
The law of demand in ______ states that when prices fall demand is likely to increase.
______ principles provide guidelines for managerial decision-making and action.
Henri Fayol classified all business activities into ______ categories and suggested the ______ principles of management.
______ is known as the father of scientific management.
______ of management principles means the basic principles are applicable in all types of organisations.
TRUE OR FALSE:
Management principles are universal in the sense that these principles can be applied in different managerial situations.
TRUE OR FALSE:
The principles of management are absolute and not relative.
TRUE OR FALSE:
Management principles provide new ideas, vision and imagination for conducting research studies in management.
TRUE OR FALSE:
All organisations require effective coordination of internal and external resources.
TRUE OR FALSE:
Managerial skills are non-transferable.
II. SUBJECTIVE QUESTIONS Short Answer Type Questions
What is meant by a principle of management?
Explain the following principle of management:
Unity of direction
Explain the following principle of management:
Equity
Who is known as the father of scientific management?
Explain the following principle of management:
Unity of command
Name the principle which suggests that a subordinate should receive order from one superior only.
Distinguish between Unity of Direction and Unity of command.
How is the principle of ‘Stability of Tenure’ important to an organisation?
Explain the following principle of management.
Authority and Responsibility
Who is known as the father of scientific management?
Explain the following principle of management:
Scalar chain
Explain the following principle of management.
Authority and Responsibility
Explain the following principle of management:
Unity of command
Distinguish between Unity of Direction and Unity of command.
Explain the following principle of management:
Order
Discuss the need for the principles of management.
Long Answer Type Questions
Define management principles.
Explain any four characteristics of ‘principles of management’.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
Distinguish between Unity of Direction and Unity of command.
Discuss the need for the principles of management.
Discuss the relevance of principles of management in today’s business scenario.
Discuss the need for the principles of management.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
Discuss the need for the principles of management.
Why has management in modern business become very important?
Discuss the universality of Henry Fayol’s principles of management.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
CASE-BASED QUESTIONS
|
Deewan Ltd. is a multinational consulting company with its headquarters at Washington D.C. It hires young people from different countries of the world. It is a company in which people dream to work because of its work-environment, pay and growth prospectus. The company has a culture of open communication and people of various nationalities work together in a discrimination free environment. The behaviour of managers of Deewan Ltd. emphasises kindliness and justice which ensures loyalty and devotion of workers. It also promotes mutual trust and belongingness among team members. In this way management of Deewan Ltd. is able to achieve its objectives by promoting teamwork. By doing so, managers of Deewan Ltd. are following some principles of management. |
- Identify two such principles. (1)
- Briefly explain the principles identified in part (i). (2)
- Enumerate any two positive effects of applying the above two identified principles at workplace. (2)
- Discuss any three points of significance of applying management principles. (3)
|
Humsab Foundation is a Non-Governmental Organization (NGO) working to improve the lives of children with medical needs, the homeless and victims of natural disasters. Apart from donations in cash, they collect dry ration, old clothes, shoes, toys, books and medicines from donors. At Humsab Foundation’s office in Bhopal the material collected is segregated, classified and put in shelves and boxes that are labelled systematically. There is a specific place for each of these items and volunteers put everything at their respective places. The volunteer work is divided into specific jobs like fund raising, field visits, social media updates and so on. Each volunteer is part of a particular team, depending on their competency and training. Each volunteer becomes specialized in their respective field, leading to efficient utilization of human effort. |
- Identify the two principles of management adopted by Humsab Foundation. (1)
- Briefly explain the principles identified in part (i). (2)
- Enumerate any two effects of violating the above two identified principles at workplace. (2)
- With reference to Scientific Management, distinguish between Taylor’s and Fayol’s principles. (3)
III. ADDITIONAL SOLVED QUESTIONS
What is meant by a principle of management?
Define management principles.
Explain any four characteristics of ‘principles of management’.
Discuss the need for the principles of management.
Who is known as the father of scientific management?
What is Scientific Management?
Explain the following principle of management:
Unity of command
Explain the following principle of management:
Equity
Explain the following principle of management:
Unity of command
Explain the following principle of management.
Authority and Responsibility
Distinguish between Unity of Direction and Unity of command.
How is the principle of ‘Stability of Tenure’ important to an organisation?
Explain the following principle of management:
Scalar chain
What is Esprit de corps?
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
Point out the principle being violated in the following case:
Mohit is reporting to a work supervisor and a team supervisor.
Point out the principle being violated in the following case:
Sohan and Sumit are working as clerks in the same company. They perform similar jobs and have similar qualifications and job experience. But they are paid different salaries.
Point out the principle being violated in the following case:
Sarita, a manager in ABC Ltd. is reporting to Mohan who reports to Deepak. Mr. Deepak asks Sarita to prepare a report without informing Mohan.
Point out the principle being violated in the following case:
Workers in a factory are not provided with right places for work and for keeping their tools.
Point out the principle being violated in the following case:
Santa Singh, a manager expects his subordinates to work for the happiness and pleasure of being in the company.
Point out the principle being violated in the following case:
The Production Manager of XYZ Ltd. instructs a salesman to go slow in selling the product, whereas the Marketing Manager insists on fast selling to achieve the sales target.
IV. PRACTICE PREVIOUS YEAR QUESTIONS
What is meant by gang plank?
Explain the following principle of management:
Equity
Explain any four characteristics of ‘principles of management’.
Explain the principle of Esprit de corps as advocated by Henry Fayol.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
Discuss the need for the principles of management.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
Explain the following principle of management:
Scalar chain
Explain the importance of scalar chain.
Give three points of difference between Taylor’s and Fayol’s Principles of management.
What are the principles of scientific management? Explain in detail.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
What are the principles of scientific management? Explain in detail.
Explain the following principles of management given by Fayol:
- Discipline
- Remuneration to employees
- Unity of command
Principles of Management are not as accurate as principles of Science because ______.
they are absolute.
they deal with human behaviour which is unpredictable.
they are rigid.
they are not universally accepted.
Deepti and Sudha are managers at ABC Ltd. and are working together on a project. They report to Mrs. Verma, a Senior Manager. Sudha asks Deepti to submit a report on the project to her without informing Mrs. Verma. Which Principle of Management is not followed in this case?
Explain the principle of Authority and Responsibility, as laid down by Henry Fayol.
Distinguish between Unity of Direction and Unity of command.
Explain any four characteristics of ‘principles of management’.
What is meant by gang plank?
From the statements given below, identify and briefly explain each principle of management by Henri Fayol.
- A place for everything and everything in its place
- Absence of nepotism and favouritism.
Explain the meaning of Fayol’s principle of centralisation.
Explain any five features of organising as a function of management.
Solutions for 6: Principles of Management
C. B. Gupta solutions for Commerce Volume 2 [English] Class 12 ISC chapter 6 - Principles of Management
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