Principles Of Management: NCERT Solutions Class 12

Get your hands on the solved NCERT Solution for Class 12 Business Studies Chapter 2 Principles of Management prepared by the subject experts at SimplyAcad. The solution set contains all the exercises present in your textbook including very short, short and long answer questions.

Chapter 2 Principles Of Management is a crucial chapter for students for the upcoming 12th board examinations. Students can use the solutions to learn how to approach different questions and write effectively to score maximum marks.

Access NCERT Solution for Class 12 Business Studies Chapter 2 Principles of Management

Very Short Answer Questions: Principles Of Management

1. What makes principles of management flexible?

Management principles are varied, and one rule cannot be applied to all cases. Thus, a manager has to assess the situation and then determine the best solution to the issue at hand. For this reason, management principles are flexible.

2. State the main objective of time study.

Time study was undertaken to determine a standard time that is required to complete a designated job. This time would then be set as the standard time for the job completion. The benefit of this process is that it will help employers to determine the number of resources required to complete a particular job and also determine their wages.

3. Name the principle that is an extension of the ‘harmony, not discord’.

It is cooperation, not individualism which is the extension of the ‘principle harmony, not discord’

4. State any two causes of fatigue that may create hindrance in the employee’s performance.

Causes of fatigue that creates hindrances in the performance of employees are:

1. Not having a cordial relationship with the people in superior positions

2. Long working hours at the organisation

5. Sanaklal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.

Wales Limited followed the principle of ‘Stability of Personnel’.

6. Which technique is used by Taylor for distinguishing efficient and inefficient workers?

Taylor used the system of Differential Piece Wage System under which wages for workers were determined using a set standard. The workers who performed better were given higher wages than workers who performed below the standard.

Short Answer Questions: NCERT Solution for Class 12 Business Studies Chapter 2 Principles of Management

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

Unity of command is a principle of management that a person should be answerable to only one of his superiors. It states that if a person receives commands from two or more people, then this principle is violated. If such a principle is violated, it creates confusion for the employee, which can lead to instability and disturbance in the workflow. Therefore, to maintain a steady workflow and uninterrupted operations in the organisation, unity of command is essential for management.

2. Define Scientific Management. State any three of its principles.

Scientific management is a theory of management that was developed by Frederick Taylor in 1911. It is a classical theory of management which focuses on ways of getting work done in the best way possible to increase efficiency and effectiveness in work. Scientific management is the use of tools and techniques and personnel specialised to carry out the task for achieving quality and cost reduction.

Here are three principles of scientific management

1. Science, not rule of thumb: In this principle, Taylor laid emphasis on focusing on following management practices that are scientific in nature, and not deciding by the rule of thumb. As per the rule of thumb practice, managers will assess a situation and use trial and error to find a solution. Taylor suggested that instead of using such old methods, the approach to a situation should be scientific. Following such practice will result in a balanced result and improves efficiency and cost.

2. Harmony, not Discord: This principle states that there should be a harmonious work environment between managers and workers. The more they are on good terms with each other, the more will be the performance of the organisation. The workers should feel that they are a part of the organisation and their contributions are very much essential for the organisation to grow. Management shall respond to the needs of the workers, and in a similar way, the workers should respond back by giving their best for the organisation. Taylor termed this as a mental revolution and suggested that it would improve harmony and propel the resources to work towards the common goals of the organisation.

3. Cooperation, not individualism: As per this principle, the managers and workers should cooperate with each other in completing the activities. The work standards should be jointly determined by them, it will increase the level of involvement, and more productive results can be achieved.

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?

In such a situation, the principle that is violated is the principle of order. It states that there should be a right arrangement of resources. In other words, the right people at the right place and at the right time. Following this approach helps in carrying out the tasks effortlessly. Whenever that principle is violated, it results in unnecessary delay at work and ensures chaos. Delays in completing work will result in a loss for the company.

4. Explain any four points regarding significance of Principles of Management.

Principles of management have the following significance

1. Management principles are based on years of observation and implementation into real-life issues. Hence, these principles guide managers in tackling real-world problems easily.

2. Management principles are based on logic rather than on beliefs. These principles are derived from real-life situations and therefore are based on logic and reasoning. It helps managers in making decisions which are devoid of personal bias.

3. Principles are the foundation of management education. They helped it to grow as a discipline, and such principles also offer a basis on which further research programs can be carried out to develop new methods and techniques.

4. Management principles help organisations to perform at the best of their capacity or, in other words, ensure optimum utilisation of the available resources.

5. Explain the principle of ‘Scalar Chain’ and gangplank.

Scalar chains can be defined as the formal chain of authority that follows a straight line from highest to lowest rank. It specifies the route through which information needs to be communicated to the designated authority.

Gangplank is an alternative route which is used in case of emergencies. Its main aim is to shorten the communication route. It facilitates communication with higher authorities directly, surpassing the defined chains of hierarchy.

Diagrammatically it can be represented as:

6. A production manager at top level in a resulted corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?

In this case, Mr. Rathore has violated the principle of Subordination of individual interest to the general interest. As per this principle, an individual should put organisational goals on priority over any personal interest.

The positive impacts of this principle are:

1. Harmony in the working environment and a good office culture

2. Increase in employee productivity

3. Employees feel they are a part of the organisation

4. Helps in achieving organisations goals

Long Answer Questions: NCERT Solution for Class 12 Business Studies Chapter 2 Principles of Management

1. Explain the Principles of Scientific management given by Taylor.

Scientific management is a theory of management that was developed by Frederick Taylor in 1911. It is a classical theory of management which focuses on ways of getting work done in the best way possible to increase efficiency and effectiveness in work. Scientific management is the use of tools and techniques and personnel specialised to carry out the task for achieving quality and cost reduction.

Here are three principles of scientific management

1. Science, not rule of thumb: In this principle, Taylor laid emphasis on focusing on following management practices that are scientific in nature and not deciding by the rule of thumb. As per the rule of thumb practice, managers will assess a situation and use trial and error to find a solution. Taylor suggested that instead of using such old methods, the approach to a situation should be scientific. Following such practice will give a balanced result and improves efficiency and cost.

2. Harmony, not Discord: This principle states that there should be a harmonious work environment between managers and workers. The more they are on good terms with each other, the more will be the performance of the organisation. The workers should feel that they are a part of the organisation and their contributions are very much essential for the organisation to grow. Management shall respond to the needs of the workers, and in a similar way, the workers should respond back by giving their best for the organisation. Taylor termed this as a mental revolution and suggested that it would improve harmony and propel the resources to work towards the common goals of the organisation.

3. Cooperation, not individualism: As per this principle, the managers and workers should cooperate with each other in completing the activities. The work standards should be jointly determined by them, it will increase the level of involvement, and more productive results can be achieved.

4. Personnel Development: An organisation has to focus on developing its workers as well as the organisation itself. Developed or skilled workers will be in a better position to help an organisation grow. To increase competitiveness, an organisation can announce incentives in order to build competitiveness among workers. Employees should be hired in a scientific manner which will put the best employee suited for a role as per their capability. Efficiency can be achieved with proper training for workers. In other words, a properly trained resource will develop himself as well as the organisation.

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

a. Unity of Direction: This principle states that each unit of the organisation should be working towards attaining a common business objective. It helps in avoiding work overlapping and also increases profitability. For example, a company producing two different products should have separate management for each.

b. Equity: This principle focuses on treating all employees equally. Equality should be based on religion, caste, creed etc. It will promote harmony among the workers. For e.g., workers from different religions should be treated equally in a company.

c. Espirit de corps: This principle states that employees in an organisation should work with each other and maintain unity. The team spirit is improved when all resources are working unitedly, and this feeling should be promoted by the manager.

d. Order: There should be order in work being done. The management should hire the right people at right place and right time. Doing such things helps in carrying out the activities in a smooth manner. For e.g., if the user manual pages are arranged in a sequence, shuffling them will result in delay in production.

e. Centralisation and Decentralisation: Centralisation is the concentration of power or authority in the hands of selected people in an organisation. Whereas decentralisation is shifting the authority to middle and lower levels of management. For e.g., if CEO has all decision-making powers, it is centralisation, whereas if the decision-making power is distributed to managers of middle and lower levels, then it is decentralisation.

f. Initiative: As per this principle, workers should be motivated and provided incentives. They should be encouraged to suggest points for improvement, it will make them take more initiative for the development of the organisation.

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

Functional foremanship is an extension of the principle of division of labour. It was suggested by Taylor. According to his observation, it is not possible for a single worker to be an expert in every aspect of production. Therefore, he suggested that eight persons should be performing the duties of a foreman, and therefore this came to be known as functional foremanship. Under this, the following roles were present.

1. Instruction Card Clerk: Whose role is to give instructions to workers

2. Route Clerk: His role was to specify the route of production

3. Time and Cost Clerk: His role was to prepare the time and costs sheet

4. Disciplinarian: His role was to maintain discipline in the production facility

The above four roles were working under the planning supervisor.

Now the other four persons who work under the production supervisor are:

1. Speed Boss: Responsible for the timely completion of the designated job

2. Gang Boss: Responsible for keeping machines in a ready state for work

3. Repair boss: Was responsible for keeping machines and tools in proper working condition.

4. Inspector: This person was responsible for maintaining the quality of the work.

Mental revolution: Mental revolution is the concept which revolves around bringing a change in the attitude of the workers and managers. It aims to improve the thinking of both in order to create a working environment that is conducive to both manager and worker. The basic premise of this concept is that both the worker and the manager should understand their importance in an organisation, and both of them should work towards achieving a common goal for the organisation. Management should be taking care of the needs of its workers and periodically share the benefits in the form of incentives or bonuses to keep them motivated. Workers, in return, should do their best in order to develop the organisation. Thus, we can say the mental revolution is based on mutual trust and cooperation among managers and workers, which can bring about great changes in an organisation.

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.

(a) Time Study: This study determines the standard time which is required in order to perform a job. Multiple readings are taken to arrive at a standard time for a particular task. Based on that it following things can be determined

1. Number of workers required to perform the task

2. Determine the costs associated with hiring such workers (i.e. wages)

(b) Motion Study: This study was based on movements that needed to be taken while performing a task. The purpose of this study is to eliminate unwanted movements in order to complete a task in a shorter time. For this study Taylor along with his assistant Frank Gilbreth studied the movements of a worker and then categorised the same into three classes productive, incidental and unproductive. The purpose was to eliminate unproductive employees and reduce instances of incidental workers.

(c) Fatigue Study: Fatigue study was for determining the amount and frequency of rest taken during the completion of a designated task. A worker without rest will be unable to perform to his full capacity. Fatigue is detrimental to productivity hence this study is conducted to understand the standard intervals of break that help a worker regain the energy to carry on working with the same efficiency.

(d) Method Study: The objective of this study is to find the best method of completing a particular work. It takes into consideration all the activities involved in the completion of a task. By determining the best method, lower costs can be incurred along with more productivity.

(e) Standardisation and Simplification of Work: Standardisation is based on scientific management techniques. It is the setting of standards or benchmarks for any activity. The purpose of standardisation is to improve the quality of work and attain excellence. It also determines standards of performance for both man and machines.

Simplification is all about eliminating the diversity in the products that are unnecessary and utilizing the best of the resources, reducing the inventories and increasing the turnover of the organisation. In addition to reducing labour and machine cost. Simplification helps in the optimum uses of the resources and removes unnecessary costs for the organisation.

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