Cambridge International School Dasuya

A Vasal Education School

Grade-12_BUSINESS STUDIES_ _CH-2_ Practice Questions_ 26.04.2024

1. The application of this principle of management leads to higher production and better work
for the same effort. Identify the related principle of general management.
(a) Discipline (b) Equity (c) Division of work (d) Order
2. According to this principle of general management, “an organisation should safeguard
against abuse of managerial power, but at the same time a manager should have the necessary
authority to carry out his responsibility.” Name the principle of management being described in
the given statement.
(a) Discipline (b) Authority and responsibility
(c) Unity of command (d) Unity of direction
3. Name the principle of management suggested by Henri Fayol, which advocates that, “there
should be good superiors at all levels, clear and fair agreement and judicious application of
penalties.”
(a) Authority and responsibility. (b) Esprit De Corps
(c) Order (d) None of the above
4. According to Henri Fayol, if this principle of general management is violated, “authority is
undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the
principle.
(a) Authority and responsibility (b) Discipline
(c) Unity of command (d) Equity
5. Through this principle of management, Henri Fayol guides the managers to exhibit
exemplary behaviour and advises that they should not fall into temptation of misusing their
powers for personal benefit at the cost of general interest of the organisation. Which principle
of management is being described in the above statement?
(a) Remuneration of employees (b) Centralisation and decentralisation
(c) Subordination of individual interest to general interest (d) Equity
6. According to this principle of scientific management, “Scientific management has for its
foundation the firm conviction that true interest of the management
and workers are one and the same; the prosperity for the employer cannot exist
for a long time unless it is accompanied by prosperity for the employees and vice
versa.”

a. Science, not rule of thumb b. Co-operation, not individualism

c. Harmony, not discord d. All of the above

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7.

8. Assertion (A) Workers and management both should honour their commitments towards one
another without prejudice.
Reason (R) Principle of Subordination of individual interest to general interest.
Codes
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
9. Assertion (A): Functional foremanship technique divide the work of factory manager into
two sub departments
Reason (R): Functional foremanship develop specialisation
In the context of the above two statements, which one of the following is correct?
Codes
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
10. Assertion (A): Differential piece wage system is a technique which does not differentiate
between efficient and less efficient workers.
Reason (R): Differential piece wage system acts as an incentive for less efficient workers to be
motivated to perform better.

Codes
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

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Short and Long Questions:

1. Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management.

2. Sanchit, after completing his entrepreneurship course from Sweden returned to India and
started a coffee shop ‘Aroma CoffeeCan’ in a famous mall in New Delhi. The speciality of the
coffee shop was the special aroma of coffee and wide variety of flavours to choose from.
Somehow, the business was neither profitable nor popular, Sanchit was keen to find tout the
reason.

He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the causes for
the same. Sandhya took feedback from the clients and found out that though they loved the
special unique aroma of coffee but were not happy with the long waiting time being taken to
process the order.

She analysed and found out that there were many unnecessary obstructions in between which
could be eliminated. She fixed a standard time for processing the order. She also realised that
there were some flavours whose demand was not enough. So, she also decided to stop the sale
of such flavours. As a result with in a short period Sandhya was able to attract the customers.
Identify and explain any two techniques of scientific management used by Sandhya to solve the
problem.

3. Seema, 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
reminded her the concepts of Scientific Management. In one such programme, factories
manufacturing components for products like automobiles, computers and mobile phones were
shown. Name the concept of Scientific Management that should be adhered to, while
manufacturing components for such products.

4.How do principles of management provide managers with useful insights in real world
situations? State. (1)
Ans. Principles of management provide useful insights into reality by enabling the managers to
learn from past mistakes and conserve time by solving recurring problems quickly.

5.Reema is one of the most successful managers of her company, Globe Ltd. She knows that
the principles of management are intended to apply to all types of organisations, business as
well as non-business, small as well as large, public sector as well as private sector.

a. One of the points related to the nature of management principles is being highlighted in
the above description. Identify the point.
b. Explain any three other points of the nature of principles of management other than the
one identified above. (4)

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6.Sakaar Foundation is an NGO (Non-Governmental Organization) working to improve the
lives of children with medical needs, the homeless and victims of natural disasters. (5)
Apart from donations in cash, they collect dry ration, old clothes, shoes, toys, books medicines
etc. from donors. At Sakaar Foundation’s office in Lucknow 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.
The management of Sakaar Foundation does not close its ears to any constructive suggestions
made by the volunteers. There is an equal division of work and responsibility between
volunteers and management. All the day long the management work side by side with the
volunteers helping, encouraging and smoothing the way for them.

i. Identify and explain one principle each of ‘Scientific Management’ and ‘General
Management’ adopted by Sakaar Foundation.

7. Karan Nath took over ‘D’north Motor Company’ from his ailing father three months ago. In
the past the company was not performing well. Karan was determined to improve the
company’s performance. He observed that the methods of production as well as selection of
employees in the company were not scientific.
He believed that there was only one best method to maximise efficiency. He also felt that once
the method is developed, the workers of the company should be trained to learn that ‘best
method’.
He asked the Production Manager to develop the best method and carry out the necessary
training. The Production Manager developed this method using several parameters right from
deciding the sequence of operations, place for men, machines and raw materials till the delivery
of the product to the customers. This method was implemented throughout the organisation. It
helped in increasing the output, improving the quality and reducing the cost and wastage.
Identify and explain the principles and the technique of scientific management followed by the
Production Manager in the above case.

8. Explain how principles of management help the managers:

i. In taking scientific decisions; and

ii. in providing the managers with useful insights into real world situations.

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