CHAPTER 2: Principles of Management NCERT SOLUTION CLASS 12TH BUSINESS STUDIES| EDUGROWN NOTES

Short answer Type Question:

Q.1 How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.

ANSWER:
According to the Principle of ‘Unity of Command’ there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. It is very useful for a management as it prevent confusion regardingtasks to be done. For example: a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. On the other side, finance department tells her/him not to offer more than 5% discount. This violates the principle which leads to confusion.

Q.2 Define scientific management. State any three of its principles.

ANSWER:
Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.
Three principles of scientific management are:→ Science not Rule of Thumb
→ Harmony, Not Discord
→ Cooperation, Not Individualism

Q.3 If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?

ANSWER:
The principle of order is violated in the given case. As per the Principle of Order, there should be a place for everything and everything in its place. Thus, when this principle is violated then a lot of time will waste in locating different resources. This will lead to decreased productivity and efficiency.

Q.4 Explain any four points regarding significance of Principles of Management.
ANSWER:
The four points regarding significance of Principles of Management are:
→ Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into real world situations. These principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managersto learn from past mistakes and conserve time by solving recurring problems quickly.
→ Optimum utilisation of resources and  effective administration: Resources both human and
material available with the company are limited. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. Thus, the wastages associated with a trial-and-error approach can be overcome.
→ Scientific decisions: Decisions must be based on facts, thoughtful and justifiable in terms of the intended purposes. Management principles help in thoughtful decision-making. They emphasise logic rather than blind faith.
→ Meeting changing enviornment requirements: Management principles are flexible to adapt to dynamic business environment. For example, management principles emphasise division of work and
specialisation. In modern times this principle has been extended to the entire business whereby companies are specialising in their core competency and divesting non-core businesses.

Q.5 Explain the principle of ‘Scalar Chain’ and gang plank.

ANSWER:
An organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as scalar chain. For example: Let us consider a situation where there is one head ‘A’ who has two lines of authority under her or him. One line consists of B-C- D-E-F. Another line of authority under ‘A’ is L-M-N-O-P. If ‘E’ has to communicate with ‘O’ who is at the same level of authority then she/he has to traverse the route E-D-C-B-A-L-M-N-O. This is due to the principle of scalar chain

However, if there is an emergency then ‘E’ can directly contact ‘O’ through ‘Gang Plank’. This is a shorter route and has been provided so that communication is not delayed.

Long Answer Questions:

Q.1 Explain the principles of scientific management given by Taylor.

ANSWER: Principles of scientific management are given by FW Taylor
(i) Science, Not Rule of Thumb When different managers use their own different methods to get the work done it is rule of thumb. Taylor believed that there was only one best method maximise efficiency. Taylor advised that every organisation should compare the results of different methods, test them again and again and finally select one best method of getting the work done.
(ii) Harmony, Not Discord Managers are an extension of the management and serve as a link between workers and the owners. Workers have to take the instructions from the managers and managers have to get the work done through the workers. Sometime the relation between them is spoilt, which is very harmful for everyone-workers, managers and owners. This class conflict should be replaced by harmony between the two. Both should change their thinking towards each other. This is known as mental revolution.
(iii) Co-operation, Not Individualism There should be complete co-operation between the labour and the management instead of individualism. This principle is an extension of principle of harmony, not discord. The management and the workers should not compete with each other rather co-operate with each other. Management should consider all good suggestions made by the employees which can help in cost reduction. At the same time workers should never think of going on strikes in order to get their unreasonable demands fulfilled.
(iv) Development of Each and Every person to His or her Greatest Efficiency and Prosperity
Scientific management also stood for worker development. Taylor believed that workers should be aware of the ‘best method’. On the other hand, all organisations should select employee carefully in order to get maximum efficiency. When the duties are allotted, perfect match should be made between the requirements of the job and the capabilities of the worker. Training should be provided to improve the skills further. In this way, efficiency will go higher resulting in prosperity for both workers and company.

Q.2 Explain the following principles of management given by Fayol with examples.
(a) Unity of direction
(b) Equity
(c) Espirit de Corps
(d) Order
(e) Centralisation and decentralisation
(f) Initiative

ANSWER: Fayol introduced general principles of management. Some of them have been explained below
(a) Unity of Direction
All the units of an organisation should be moving towards the same objective. Each group of activities having the same objective must have one head and one plan. Each group should have its own incharge and on no account the working of two divisions neither be overlaped.
(b) Equity
This principle emphasise kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Lazy personnel should be dealt sternly and strictly. There should be no discrimination against anyone on account of gender, religion, caste, language or nationality etc. All decisions should be merit based.
(c) Espirit de Corps
This principle emphasises on building harmony and team spirit among employees. In a large organisation due to a large work force teamwork is very important. Teamwork leads to better co-ordination while working. The head of each team should give credit of good result to the whole team rather than confining it to his ownself.
(d) Order
A place for everything and everyone in his/her place. Basically it means orderlinss. If there is a fixed place for different things in a factory and they remain in their places then no time is wasted in locating them. Same way if every personnel is allocated an area to operate from then his co-workers, head or subordinates, anyone can contact him easily.
(e) Centralisation and Decentralisation Concentration of authority in a few hands is centralisation and its dispersal among more number of people is decentralisation. Fayol believed that an organisation should not work with anyone of them in isolation. A combination of both is important simple, easy and work of routine type should be decentralised and critical important type of work should be centralised.
(f) Initiative Initiative means taking the first step with self-motivation workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiatives should be encouraged. A good company should invite suggestions from employees which can result in substantial cost/time reduction. Rewards can be given to fruitful suggestions.

Q.3 Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.

ANSWER: Functional Foremanship Taylor advocated separation of planning and execution functions. This concept was extended to the lowest level of the shop floor. It was known as functional foreman ship.

Under the factory manager, there is a planning incharge and a production incharge.
Under the planning incharge, the work goes as follows
(i) Instruction Card Clerk Draft instructions for the workers.
(ii) Route Clerk Specify the route of production.
(iii) Time and Cost Clerk Prepare time and cost sheet.
(iv) Disciplinarian Ensure discipline.
Under the production incharge, the work goes as follows
(i) Speed Boss Timely and accurate completion of work.
(ii) Gang Boss Keeping tools and machines ready for operation by workers.
(iii) Repairs Boss Ensure proper working conditions of machines.
(iv) Inspector Check the quality of work.
Mental Revolution
In a factory, the managers served as a link between the owners and the workers. The managers have to get the work done from the workers which created sometimes problem between the two. Taylor emphasized that there should be harmony between the management and workers. Both should realise that each one is important. For this both had to change their thoughts for each other, This is known as ‘Mental Revolution’. Management should share the gains of the company with the workers and at the same time workers should work hard and be ready to accept any change made for the betterment of the organisation.

Q.4 Discuss the following techniques of scientific work study
(a) Time study
(b) Motion study
(c) Fatigue study
(d) Method study
(e) Simplification and standardisation of work

ANSWER: Some of the techniques of scientific work study are
(a) Time Study It determines the standard time taken to perform a well-defined job. The standard time is fixed for the whole of the task by taking several readings. The method of time study will depend upon volume and frequency of the task, the cycle time of the operation and time measurement costs. There are three objectives achieved through time study.
(i) Determine the number of workers.
(ii) Frame suitable incentive schemes.
(iii) Determines labour costs.
e.g., if standard time taken to do a piece of work in 20 minutes then one work can be done 3 times in an hour and total 21 times (3×7 hours per day) the work can be done on a single day.
(b) Motion Study Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions. On close examination of body motions, e.g., it is possible to find out three types motions
(i) Motions which are productive.
(ii) Motions which are incidental.
(iii) Motions which are unproductive.
Out of the above, three workers were motivated to eliminate the third type completely and reduce the second one to the minimum. This help in increasing productivity.

(c) Fatigue Study Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task. A person is bound to feel tired physically and mentally if he does not take rest while working. The next intervals will heip one to regain stamina and work again with the same efficiency for e.g., in an organisaton working hours are 9 to 5. There is a lunch break of an hour for the workers to take rest similarly in a school there is a break for the students and teachers after 4 periods of continuous learning.
(d) Method Study The objective of method study is to find out one best way of doing the job. Different managers would use their own different methods of getting the work done. But there is always one best method. Right from procurement of raw materials till the final product is delivered to the customer every activity is the part of method study. The objective of whole exercise is to minimise the cost of production and maximise the satisfaction of the customer.
(e) Simplification and Standardisation of Work Standardisation refers to the process of setting standards for every business activity e.g., process, raw material, time, product, machinery, methods or working conditions. The objective of standardisation are
(i) To reduce product to fixed types, sizes, features etc.
(ii) To establish interchangeability of various parts.
(iii) To establish standards of excellence and quality in materials.
(iv) To establish standards of performance of men and machines.
Simplification aims at eliminating unnecessary diversity of products. It results in savings of cost of labour, machines and tools. It implies reduced inventories, fuller utilisation of equipment and increasing turnover.

Q.5 Discuss the differences between the contributions of Taylor and Fayol.

Q.6 Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.
ANSWER:  Relevance of Taylor and Fayol’s contribution in the contemporary business environment.
Both Fayol and Taylor have given principles of management to improve efficiency in an organisation. Taylor gave us scientific principles of management which are being adopted by all organisations to improve its productivity at the shop floor level, the principles help in giving effective results. In the same manner, Henry Fayol gave in general principles of management which when implemented at any of the levels-top, middle or lower and helps in achieving better co-ordination, remove ambiguity and encourage the employees to improve their work performance.