NCERT MOST IMPORTANT QUESTIONS CLASS – 12 | BUSINESS STUDIES IMPORTANT QUESTIONS | CHAPTER – 2 | PRINCIPLES OF MANAGEMENT | EDUGROWN |

In This Post we are  providing Chapter- 2 PRINCIPLES OF MANAGEMENT NCERT MOST IMPORTANT QUESTIONS for Class 12BUSSINESS STUDIES which will be beneficial for students. These solutions are updated according to 2021-22 syllabus. These MCQS  can be really helpful in the preparation of Board exams and will provide you with a brief knowledge of the chapter

NCERT MOST IMPORTANT QUESTIONS ON PRINCIPLES OF MANAGEMENT

 1. ‘Principles of Management are different from those used in pure science’. Write any one difference.
Ans.The principle of management are not universal in their Application while those in pure science are universal.
2. Which principle does functional foreman ship violate?
Ans. Unity of command
3. Give any one effect of principle of division of work?
Ans. Specialization, speed, accuracy.
4. A sales person is asked to finalize a deal with customer. The marketing manager allows him to give a discount of up to 10% but the Finance Manager allows him to give discount of upto 25%. Which principle is violated here?
Ans. Unity of Command.
6. State any three reasons as to why proper understanding of management principles is necessary.
Ans. Proper understanding of management principles is necessary because of the  following reasons (any three):
(a) They provide managers with useful insight into reality.
(b) They help in optimal utilization of resources and effective administration.
(c) They help in meeting environment requirements.
(d) They are used as basis for management training, education and research.
6. How do management principles ensure optimum utilization of resources and effective administration?
Ans. In every organization, resources such as men, machine, material and money play a vital role. Management principles are designed in such a way that maximum benefits from these resources can be achieved minimum resources wastage. Along with this, the principles of management also help in establishing effective administration by limiting the boundary of managerial discretion that their decisions may be free from personal biases. For example, while deciding the annual budget for different departments, a manager is required to follow the principle of contribution to organizational objectives and not personal preferences
7. Explain briefly the technique of fatigue study?(3or4)
Ans. Fatigue study determines the amount and frequency of rest intervals in completing a task. Workers cannot work at a stretch. After putting in work for a certain periods of time, they reel tired which affects their performance. If they are allowed rest intervals, they will regain their stamina and will resume their work with greater efficiency.
8. Give positive effects of the principle of ‘discipline’.
Ans. Positive effects of the principle of ‘discipline’ are as under:
i) Improves efficiency of the employees.
ii) Systematic work in the organization.
iii) Ensuring that penalties are imposed judicially.
7. Explain the Principle of centralization and decentralization. –
Ans. Centralization means concentration of authority in the hands of few people at the top, whereas decentralization means appropriate distribution of power at every level of   management. According to Fayol,  company must be properly balanced i.e. it should neither be completely centralized nor d e c e n t r a li z e d . There must be some element of both depending upon the profile of the organization. The panchayat system in our country is a very good example of decentralization at the national level.
8. Ms. Ritu and Mr. Mohit are Data Entry Operators in a company having same educational qualifications. Ritu is getting Rs. 5,000 per month and Mohit Rs. 6,000 per month as salary for the same working hours. Which principle of management is violated in the case? Name and explain the principle.
Ans. The principle of ‘equity’ is violated in this case. According to this principle, employees should be given kind, fair and just treatment and there should not be any discrimination based on caste, creed, color, sex etc. Apparently, Ritu is getting less in view of bring a female which is against this principle.
9. Explain the technique ‘Functional Foremanship’.
Ans. Functional foremanship is the extension of the principle of specialization. This technique emphasizes on the separation of planning from execution. To facilitate it, Taylor suggested setting up of “planning in charge” and “production in charge”.
FUNCTIONAL FOREMANSHIP
Planning Incharge: The main function of “planning in charge” is to plan all aspects of a job to be performed. It consists of four positions:
(i) Route clerk: He determines the sequence to perform various mechanical  and manual operations.
(ii) Instruction card clerk: He issues instructions to the workers to be followed by them.
(iii) Time and cost clerk: He is concerned with the framing of time schedule on the basis of determined route. Also, he keeps the record of the cost of operations.
(iv) Disciplinarian: He is concerned with the coordination in each job from planning to successful execution. He enforces rules and regulations and maintains discipline.
Production Incharge: It consists of following four specialists who are concerned with the execution of plans.
(i) Speed Boss: He checks whether work is progressing as per schedule. He ensures timely and accurate completion of jobs.
(ii) Gang Boss: He arranges machines, materials, tools, and equipments properly so that workers can proceed with their work.
(iii) Repair Boss: He ensures that all machines, tools, equipments are in perfect working order.
Inspector: He ensures that the work is done as per the standards of quality set by planning department.
10. Name and explain that principle of Fayol which suggests that communication from top to bottom should follow the official lines of command.
OR
Explain the ‘Principle of Scalar Chain’ with an example.
Ans. In an organization, the formal lines of authority, from highest to lowest level of all superiors and subordinates, are known as scalar chain. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom, linking superiors and subordinates at all levels. The scalar chain serves as a chain of command as well as communication. In normal circumstances, the formal communication is required to be made by following this chain.
Scalar Chain and Gang Plank
Example: The above figure shows the scalar chain linking managers at lower levels with the top management. If D has to communicate with G, The message should ordinarily move up through C and B to A, and then down from A to E, F and G.
Above mentioned chain has follo
wing disadvantages:
(i) It causes delay in reaching communication to the required level.
(iii) Creates the possibility of distortion of information flow as various levels are involved.
To avoid delays and to remove hurdles in the exchange of information, concept of Gang Plank has been suggested by Fayol, shown by the dotted line joining D and G