Chapter-2

Principles of Management
Q.1 A firm has taken the decision to employ more male employees than female employees
because they can work overtime in case of excess work. Which values are being affected
here?
Q.2 An organization proposes the use of CFL’s and LED’s which consumes less electricity
than normal bulbs for its lighting arrangements. Which value is attained by the organization?
Q.3 An organization has done plantation around its factory premises and only after purifying
the wastes, it throws it into the drains. Which values are being followed by the organization?
Q.4 An entrepreneur wants to start his business in backward area because govt. gives many
incentives & rebates in taxes. Which results in low cost and he will be able to see the product
at low prices. There he will be able to get large area by deforestation. Which values are being
affected here?
Q5 In each of the following cases which principle of management as given by Henry Fayol
is being violated?
(a) When no division/department of the company has a separate plan of action
(b) When a sales manager is not given the right to allowed discount to the buyers
necessary to conclude a large sales contract which will be profitable for the
company
(c) When a subordinate receives orders from two superiors
(d) When a manager awards contract for supply of raw material to a particular
party which happens to be owned by his relative and ignoring other parties, who
can supply the same at cheaper rate
Q6Shiva Ltd. was not performing well. After detailed analysis it was discovered that
workers of the Production Department were not satisfied with the behavior of Mr. Ajay,
the production manager, as workers were forced to work for long hours without any rest.
Keeping this in view this the management decided to replace Mr. Ajay with
Mr. Vijay who had recently completed his M.B.A. from IIM Ahmedabad. Mr. Vijay did
a detailed analysis of work which involved heavy manual labour. He allowed small
pauses to the workers so that they could recharge their energy for optimum contribution.
a) Name and explain the technique of Scientific Management adopted by Mr.
Vijay.
b) He further desires to find out the best ways of doing a job. Suggest to him the
technique of scientific management.
c) State the `Values’ emphasized by allowing small pauses to workers.
Q7Kumaran is working in a Shoe manufacturing Co. The management asked him to work
overtime so as to produce more in order to meet increase in demand in the market. But the
was not paid adequate wages for extra time and so he never contributed to his
maximum.
a) Which principle of Fayol is violated in the above case?
b) Give two positive effects of following the above principle.
c) Which values can be emphasized by following the above principle?
d) Which values are ignored in the above situation?
Q8 Vaibhav, an employee in Yamuna Ltd., was instructed by Mr. Vinayak (Production
manager) to increase production of steel due to excess stock of steel. On the other hand Mr.
Madhav (Sales manager) directed him not to increase the steel production as there was low
demand for steel in the market.Vaibhav got confused regarding whose order to follow and
hence was unable to work in a proper manner. Because of overlapping orders and

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instructions, Vaibhav was unable to satisfy both the bosses which led to conflict in the
organization.
i) Name and explain the principle not being followed.
ii) Give any two advantages of following this principle.
iii) Name the values that can be gained by following the above principle.

Q9 One of the principles of scientific management emphasizes that to make the employees
learn the `best method’ of production, training to workers is essential. It further emphasizes
that each person should be scientifically selected and the work assigned to the employees
should suit physical, mental and intellectual capabilities.
i) Name and explain the principle of scientific management involved.
ii) Name the principle of scientific management which is concerned with selecting the best
way of performing a job through application of scientific analysis and not by intuition or hit
and trial methods.
iii) Name the value emphasized by following the principle in part (a) above
Q.l Rajeev is a middle lever manager. He keeps all his subordinates under a lot of discipline. His
employees however complain of wastage of time and efforts as they say nothing is being assigned a
proper place and no proper schedule is made for working. Which principle of management is
violated here? (1M)
Q.2. Rajesh wants to become an ideal manager. For this he reads many management books. After
reading various broad and general guidelines he prepares himself to apply them and make his work
more meaningful. The necessary outcome will be his improved output. Which concept of
management has been highlighted here? (1M)
Q.3. Pakka employment is a company which takes care of the fact that the confidence of the
employees should always be at its peak. For this reason they give surety to their employees for
employment for a minimum fixed tenure of time. Which principle of management is followed here?
Q.4.The workers of a company who are 50 in number were completing a target of 2000 units of
goods to be manufactured. Due to dengue fever 7 workers turned absent. Now the manager called a
meeting and asked for a solution. The workers decided to divide the target among the remaining 43
people who
were present. Which function of management is followed here? (1M)
Q.5.The plant superintendent of a company is very sad. When he was on leave he was expecting his
subordinates to take the remaining work to the finish. However he finds a new way of dealing with
this problem. He develops a system of suggestion building from the side of workers. For this a
suggestion/complain box is to be kept where the workers can drop their advice and hence take steps
from their side. Which principle of management has been implemented here off late by the plant
superintendent? (1M)
Q. 6. Suresh works in a bulb manufacturing company. Each bulb which is manufactured is of
standard size and quality. Further if there is any unrequired type of bulb manufactured then its
production is stopped. Like last month when the company came to know that 10 watt bulbs are no
more liked by customers. Their production was stopped. He works in the purchase department. His
job is to purchase the filaments required to make bulbs. This time when he purchases the filament
he gets the instruction
from the seller that some special care needs to be taken in the first hour of fixing the filaments
inside the bulb. Suresh knows this information should be given immediately to the production
department before the assembling process starts. However he finds that his company’s policies only

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allow him to give the message to his immediate boss who will further pass this message to his boss.
The passing of this message will continue till it reaches the desired person in the production
department. Which technique of management is followed here? Also name the principle of
management followed here by the company? Which option is now available to Suresh since the
company is not allowing him to interact with the concerned worker in the production department?
(4M)
Q. 7. Every year a meeting is organized in the lawns of the owner of the company. In this meeting
the owner of the company grants some funds for the benefit of the families of the employees. The
employees on the other hand never resist any change or put excessive demands. The general
environment in the company is very supportive for the employees. The employee turnover ratio is
very low.
Which concept of management is discussed here? Which principle of management will be easily
followed here? (1M +2M)
Q. 8. Bhatkaav Enterprises is facing huge losses. The owner of the company is an MBA pass out. Even
then many things in the organisation are happening which are indicative of lack of proper
management in the company. First of ail there is no specific sharing of work and any time any
employee is asked to do anything. This has lead to wastage of efforts. Further due to negligence in
proper work sharing there has been no specialisation development in the nature of the jobs done by
the employees.
There are no clear and fair agreements between the workers and the management. This has led to a
lot of frustration in the workers. Management has quite often been found to be ignorant of not
fulfilling promises done by it. There are also no strict rules and regulations binding on the conduct of
the workers.
The departmental heads who are middle level managers in the company and hold key positions
always favour their relatives. They quite often don't turn up for job on time. They are always looking
for special relaxations from the top management. This has led to feeling of resentment among the
employees who are also demanding special favours and threatening strike in the coming days.
Identify the three principles of Fayol violated in the above case. (3M)
Q.9. Ramesh in an owner of a printing press. The size of his organisation has increased during the
recent past. There are many employees who work in his organisation. The organisation is considered
good and has earned a lot of reputation in the market. However when it comes to making key
decisions in the organisation related to many things he never considers the opinions of his
subordinates. Even though
the size of the organisation has increased yet he tries to take all the key decisions on his own. Which
principle of Fayol has been violated by him? (1M)
Q. 10. Mohan works on the floor of a mall as a manager. He is very hard working but is unable to
produce results for his organisation. His target for last month was a sale of 10 lakh rupees from
his floor. However by the end of the month the sale was only 8 lakh rupees. He is very regular
and takes all the necessary steps to complete the target. However his staff is not as competent
as he himself is. When he tries to take action against disobedient employees the top
management doesn't allow him to do so. They haven't given him the power to fire employees or
take any strict action against them.
Which principle of Fayol is violated here by the Organisation? (1M)
Q. 11. Enlightened Souls Pvt. Ltd. is a tube light manufacturing company. Before the start of the year
they had promised their employees bonus for extra production. It was also decided that those

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 who will put extra time will be paid extra according to the number of hours. However people in
the HR department who worked very hard later complained that they were not compensated for
the extra number of hours they used to stay in the office.
Which principle of Fayol is violated here? (1M)
Q. 12. Mr. Adesh is a top level manager. He daily comes to his office on time. One day due to some
urgent requirement at home he couldn't make it to the office on time. There is a list in the office
which is displayed in the main lobby which shows the name of late comers of the day. Next day
when he reached the office he told his secretary to put his name in the list.
Which principle of management has been followed here? (1M)
Q. 13. Aditi who is heading the campus recruitment program of the firm she is working in gets an
immediate order from the marketing head of the organisation. Mr. Rupesh asks her to hire only
those candidates who have two years experience in the field of marketing and offer them a
higher package. Moments later when she is about to enter the campus she gets another call
from the HR head who asks her to hire candidates with zero experience. He gives her the logic
that such candidates would be expecting lower packages in comparison to the candidates having
experience in the industry.
Which principle of Fayol stands violated here? What is the immediate outcome of the violation of
this principle? State the principle. (3M)
Q. 14. Aapka Apna Vehicles is a vehicle manufacturing company. The company has the same unit
producing both scooters and cars. This leads to confusion among the employees regarding the
reporting as well as differentiation of work. Which principle of Fayol is violated here? Why?
State the principle. Also give an immediate outcome of the violation of this principle. (4M)
Q. 15. Rajiv is the brother in law of the owner of the company. He is very lazy and comes to office
very late. Many people talk about his lack of responsibility in the office but no one dares to
complain it to the boss, the owner of the company. One day Mr. Sujeet Sharma, the owner of
the company, comes to know about this. He takes a stern action against Rajiv and asks him to be
on time or his absence for the day will be marked.
Which principle of Fayol is followed here? Also give an example where this principle is followed?
Q. 16. Twenty new employees have started their career in XYZ Ltd. The employees are new to the
environment of the organisation and have no idea about the demanding jobs. The management
has decided to give them three months of time to show their results. Which principle of Fayol is
followed here? How does this principle help the organisation?
Q. 17. Enigma Coolers are the leading manufacturers in their area. They have decided to increase the
productivity of their workers. For this they have chalked out a plan. They will be hiring
operational managers which will work at the lower level of management. They have decided to
keep eight managers over a single worker. Thus every worker will have to report to all these
eight managers. Which technique of scientific management is followed here?
What will be the benefit? Also tell which principle of Fayol will be violated here? (3M)
Q. 18. ABCDEF Ltd. has decided to become the market leader in selling water bottles. The company
decides to take care of all the departments. The top management decides to set standards for all
the business activities right from the purchase of raw material to manufacturing and packaging
of the water bottles. Which scientific technique of management is used here? Name three
advantages of this technique. (4M)
Q. 19. 'Work is Worship' is a leading construction company. The organisation has grown from
strength to strength because of its innovative ideas and scientific approach of working. Ten years

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back the organisation went through a revolution. All the operations and activities were properly
noticed and the standard time taken to perform them was noted. This took a few months and now
the company could find out the amount of workers required and the number of days to be involved
in the various manufacturing processes. A year later they moved to another level by considering the
stress involved in the lives of the workers. The amount and frequency of rest intervals in finishing a
particular task were noted. This helped the company in optimizing the rest intervals for the workers
so that their outputs could be increased. After six more months the company decided to reward the
efficient workers. A different rate of wage payment was decided for those workers who performed
above the standard. The standard was decided. This led to a revolutionary change in the perspective
of the workers who now started giving their full efforts in order to increase their wages.
Which concept of management has been discussed in the above case? Name the three types of
this management concept highlighted above. Also identify the lines where these types have been
indicated. (4M)
Q. 20. A scientist working in a factory for the betterment of the operational aspect studied all the
steps involved in the manufacture of the product. He very attentively noticed all sorts of movements
to arrive at a simpler way of doing all the activities possible. With his hard work he was able to bring
down the number of activities for the manufacture of the final product from 34 to 22. This work was
able to bring down the labour charges and decrease the total time of production. Thus he gave the
organisation an added advantage. *
Which type of scientific technique is discussed here? (1M)
Q.21. ABCDEF is a world renowned retail chain store. The customers here are very much pleased
with the products and services provided in the stores. The customer satisfaction and internal
efficiency indicator of the organisation is rated best in the industry. However there have been a
few steps taken by the organisation which provide the organisation this edge. The organization
has used a special type of software which integrates all the stores and brings uniformity in its
billing and working pattern.
Which principle of management is mentioned here? (1M)
Q.22.The Best Cup is a known tea point house. It maintains the same quality in the taste of the tea
and snacks provided regardless of the place. Every branch serves the same machine made tea
and snacks are also made according to standardised methods. Thus it brings the same taste to
the product.
Which principle of management is followed here? (1M)
Q. 23. 'We are the Best' Public School is a disciplined organisation. When it was found it lacked rules
and regulations. With passage of time the management of the school found out that if there are
proper rules and regulations for the students and teachers the result of the school improves.
Which nature of principles of management is highlighted here? (1M)
Q. 24. In a huge manufacturing company there was constant training programme running for the
workers throughout the year. The workers were trained about the machines as the management
realised that management is all about the relationship among workers and their proper handling
of the machines. As the size of the organisation increased the management decided to release
their hold on day to day activities of the organisation. A more decentralized approach was
adopted where the workers could decide about the machines and the amount of raw material
required instead of the traditional centralized approach as per the needs. The management
knew that-the external environment is dynamic. In order to meet stiff competition
they clarified to the workers that their instructions should not be taken strictly and should be

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 moulded as per the requirements of the organisation at the level where actual action takes
place.
Which natures of principles of management have been highlighted in the above case? (3M)
Q. 25. VLPS Hotels is a disciplined organisation. It has many branches. The organisation tries to apply
discipline in all its branches with equal effectiveness. However it knows that the nature and location
of different branches are different. They work under the impact of different cultures and work
environments. Even then discipline as an important management principle is applied to all its
branches - big or small, within the country or at foreign locations. Recently it formed a special body
of five
members to do research on cross functional expertise. The organisation has learnt through the
experience of the competitors that understanding among various functional departments is
important for increasing the productivity of the organisation. So broadly it can be understood how
such body is going to likely effect the organisation through others' experience. When it comes to
remuneration of employees the organisation adopts payment of different salaries for the same post.
The logic given the organisation is that remuneration is based on situations and depends upon the
employee's capacity
and the expenses involved in a particular city.
Which natures of principles of management have been highlighted in the above case? (3M)
Q. 26. Example Pvt. Ltd. is an organisation which is governed by people who are egoistic and
consider themselves as the most intelligent. All the suggestions made by the workers are not even
attended which has resulted in many strikes during last couple of months. The result is lack of
productivity. However recent reports from the organisation say that there is a training module going
on for the employees so that their individual development can take place to the maximum. Some
training modules are thought of being implemented. This may take the organisation out of its
current bad performance.
This training module which is now to be followed at the main branch will be later given a uniform
format and will be applied to all branches of the organisation.
Identify the principle of management which is violated initially and the principle of management
which is followed later on. Which concept of management is discussed in the last part of the above
case? (3M)
Q. 27. Enigma Footwear is a very innovative organisation. The company has the policy of paying
proper attention to the training of the managers. The organisation teaches various management
principles to the managers whenever required so that they can apply them and understand the
practical aspects of business through them. Year by year the organisation is able to increase its
revenue. This is because the managers are able to economically use the funds of the organisation
and increase the output of the workers through various principles like discipline and science not rule
of thumb. This year the company will be opening its 14th branch in India. The firm has decided to
start the campaign of adopting poor children. This year the target is 500 poor children to be
adopted. This will help the organisation put noticeable example in front of others who can learn a lot
from this initiative of the company.
What points of importance of principles of management are highlighted in the above case?
Identifythe lines. (3M)
Q. 28. Kona Kona construction is a well known firm. It has many employees. Its core competence is
in construction work but it has many other operations to tackle also. These operations are
connected to public relations, advertising, finance, etc. With changing times the company has

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decided to outsource these services from the experts of these fields. Thus it has decided to save time
and concentrate on its main business. There is team of civil engineers who form the main body of
the decision group. This
group takes decision related to future construction projects after making thoughtful and justifiable
conclusions. The newspapers of the country have also appreciated the efforts made by Kona Kona
construction in giving better housing facilities to the people in general. Company wants to walk
shoulder to shoulder with other international firms in the industry. For this it time and again
prepares its employees through proper training modules which educate them about the changing
situations at the global level. The net worth of the company is expected to touch Rs. 20,000 crores
this year which is going to be a landmark achievement in the history of this firm. The company is also
ranked high in
fulfilling Corporate Social Responsibility initiatives.
Which points of importance of principles of management have been highlighted in the above
case? Also identify the lines. (4M)
Q.29. Wellness Water Purifier has seen a lot of ups and downs during last five years as a company.
The most important learning the company has got is through its experiences. First three years of its
existence were full of high employee turnover. The blames quite often put by the leaving employees
was that of partial behavior whether it was concerned with salary, management, duty assignment,
leaves, and the list can go on. Later the management after a brainstorming session realised that it
was wrong in committing partial behavior towards its employees. Next two years it adopted the
Fayol principle of 'Equity' in letter and spirit.
Which nature of principle of management has been highlighted in the above case? (1M)
1. How re principles of management formed?
2. Why is it said that the principles of management are universal?
3. Why is it said that principles of management are flexible?
4. Which principles of management promotes team spirit.?
5. Who was the first to identity functions of management?
6. Which principle of management suggests that a subordinate should receive orders from and
be accountable to one superior?
7. Who gave the concept of scientific management? What was his profession?
8. Which principle of scientific management suggest the introduction of scientific investigation
and analysis of management practice?
9. What is the basis of formation of scientific management?
10. Which principle of management is violated if an employee is asked to receive orders from
two superiors?
11. “Workers should be encouraged to develop and carry out their plans for improvements”.
Identify the principle of management formulated by Fayol.
12. It has been observed that the prevailing situation in an organization is due to the violations
of the principle of ‘order’. What might have been your observation?
13. Which principle of management is violated when a manager grants one month medical leave
to a superior with pay and only one week medical leave to an accountant?
14. Mohan a manager, expects his colleagues to get work out of subordinates without giving
them any powers. Which principle of management is being overlooked and why?

15. Which principle of management aims at securing the loyalty and devotion of the employees
by giving them fair and just treatment?

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16. 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.

17. If an organization does not provide the right place for physical and human recourses in the
organization, which principle is violated? What are its consequences?

18. The production manager of an automobile company asked the foreman to achieve a target
production of 200 units (Scooters) per day. But he did not give him the authority to
requisition tools and materials from the store department. Can the production managers
blame the foreman if he is not able to achieve the desire target? Explain briefly the principle
relating to the situation.
19. Name and explain that principle of Fayol which suggest that communication from top to
bottom should follow the official lines of command?

20. Identify the technique of scientific management which are described by the statement given
below:-
i. When specialists supervise each worker.

ii. Change in the attitude of workers and management towards one another. From
competition to
Co-operation.
iii. When uniformity is introduced in materials. Machine, tools, method of works and
working
conditions after, due research.

21. Hina & Harish are typist in a company having same educational qualification. Hina is getting
Rs.3000 per month and harish Rs. 4000 per month as salary far the same working hour.
Which principle of management is violated in this case? Name and explain the principle?