NCERT Solutions Class 12 Business Studies Chapter 2 Principles of Management

NCERT Solutions Class 12 Business Studies Chapter 2 Principles of Management

NCERT Solutions Class 12 Business Studies Chapter 2 Principles of Management: National Council of Educational Research and Training (NCERT) Class 12 Business Studies Chapter 2 Solutions – Principles of Management.





Business Studies


Chapter Name

Principles of Management

Exercise Solutions

Very Short Answer Type:

(1) What makes principles of management flexible?

Ans: Principles of management are flexible because business environment is dynamic and managers have to take decision according to the situations.

(2) State the main objective of time study.

Ans: The main objective of time study determine the standard time for production by the employees and climate unnecessary wastage of time by them.

(3) Name the principle that is an extension of the “harmony, not discord”.

Ans: The principle that is an extension of the “harmony, not discord is the “cooperation, not individual”.

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

Ans: The causes of fatigue for employees are as follow:

(a) Long working hours

(b) Bad working condition

(5) Sanaklal and Gagan started their career in wales limited after going through rigorous recruitment process. Since they had no —– experience, the firm decided to give them one year to prove themselves. Flame principle of management followed by wales limited.

Ans: The principle of management followed by wales limited is “Stability of personnel” or stability of Tennure of personnel”.

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

Ans: The technique used by Taylor to distinguish efficient and —– workers is – “Differential piece wage system”.

cbse board business studies chapter 2 class 12

cbse board business studies class 12 chapter 2 Principles of Management

Short Answer Type:

(1) How is the principle of “Unity of command” useful to —– explain briefly.

Ans: According to the principle of “Unity of command”, an employee should receive orders form one boss and should be accountable to one superior only at a time. The employee should receive instruction from one person in order to avoid confusion in his mind. This principle helps the employees to avoid confusion and improves effectiveness in working.

(2) Define scientific management. State any three of its principles.

Ans: “Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.” – F.W. Taylor

The three scientific principles are as follows:

(i) Science, not rule of thumb: According to this principle. Taylor insist that each job performed in the organisation should be based on scientific inquiry not on intuition.

(ii) Development of workers to their greatest efficiency: According to this principle worker’s efficiency depends upon proper training and their selection. Employees must be given job according to their qualification.

(iii) Harmony, not discord: According to this principle those who work together in an organisation must work in harmony and mutual understanding.

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

Ans: The principle violated in the above case is “Principle of order”. The consequences of violating this principle is as follows:

(a) Wastage of time in search of men and material.

(b) Not being able to communicate the people at the right time.

(4) Explain any four points regarding significance of principles of management.

Ans: Four points regarding significance of principles of management are as follows:

(i) Providing managers with useful insights into reality: adherence to management principles adds to the knowledge ability and understanding of managerial skills by the manager.

(ii) Optimum utilisation of resources and effective administration: Resources both human and material available with the company are limited. Optimum use means resources should be put to use in such a manner that they should give maximum benefit with minimum cost.

(iii) Meeting changing environment requirements: Principles are modified and so they help the managers to meet changing requirements of the business environment.

(iv) Fulfilling social responsibility: The increased awareness of the public forces business to fulfill their social responsibility and management theories & principles have evolved in response to these demands.

(5) Explain the principle of “Scalar chain” and “Gang Plank”.

Ans: The Principle of “Scalar chain” is explained below:

According to Fayol, “Organisation should have a chain of authority and communication that runs from top to bottom and should be followed by managers and subordinates”. An organisation consists of superiors and subordinates. The chain should not be violated in the normal course of formal communication.

Gang Plank: If there is an emergency situation then an employee placed at any level of the organisation can directly contact with his/her superior or subordinate. This is a shorter route and has been provided so that communication is not delayed.

(6) 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?

Ans: The principle of management violated by Mr. Rathore is not individualism. He is changing the supplier without —- with other managers or officials of various levels and departments of the organisation.

The positive impact of following the above principle are as follows:

(a) Competition is replaced by Co-operation.

(b) Workers and other officials are encouraged and motivated the organisations when they are involved in decision making process by the management.

Long Answer Type/Essay Type Questions:

(1) Explain the principle of scientific management given by Taylor.

Ans: The Principles of scientific management given by Taylor are as follows:

(i) Co-operation, not individualism: According to this principle, there should be complete co-operation between the labour and the management instead of individualism. This principle is an extension of —— many not discord”.

For (ii), (iii), & (iv) refer to the answer of Q2 of short answer type.

(2) Explain the following principles of scientific management given by —– with examples.

(a) Unity of direction

(b) Equity

(c) Espirits De corps

(d) Order

(e) Centralisation and decentralization

(f) Initiative


(a) Unity of direction: According to this principle, all the units of —- organisation should be moving towards the same objectives there coordinated and focuses efforts.

For e.g. –> The goal of production department and sales department should be to increase the sales and profit of the organisation.

(b) Equity: According to this principle, all the employees should be treated equally and fairly as much as possible by the organisation. For eg à there should not be any partiality done to a employee on the basis of his religion, caste, creed etc.

(c) Espirits De corps: According to this, management should promote a team spirit of unity and harmony among employees.

For eg à manager should replace “I” with “we” in all his conversation with workers

(d) Order: According to fayol, “people and material must be in suitable places at appropriate time for maximum efficiency”.

For eg à employees should know the exact place for their tools.

(e) Centralisation & Decentralisation: According to Fayol, “there is a need to balance subordinate involvement through centralization.”

For eg à Panchayats are given more powers to decide and spend funds granted to them by the government.

(f) Initiative: According to this principle, workers should be encouraged to develop and carry out their plans for improvement.

For eg à workers must always be encouraged to give suggestion regarding production techniques.

(3) Explain the technique of “functional foremanship” and concept of “Mental Revolution” as enunciated by Taylor.


Functional Foremanship: In this technique, Taylor suggested that the division of factory should be done in two departments i.e. planning department and production department. The workers must be free from the burden of planning and must concentrate on production. Under each department there must be some functional experts to supervise and guide the workers. In the factory system, the foreman represents the managerial figure with whom the workers interact daily directly taylor suggested a minimum eight specialists or functional experts to supervise and give orders to the workers.

“Mental Revolution”: This principle emphasis in the change in mental attitude of workers and management towards each other. Both the group should realize that they require one another. Management should share a part of surplus with workers and workers should also contribute their efforts for achieving more profit by the organisation.

(4) Discuss the differences between the contribution of Taylor Fayol.

Basis Hevri Fayol F.W Taylor
(i) Perspective He is concerned with top level of management He is concerned with floor level of factory.
(ii) Applicability His principles are applicable universally His principles can be apply only in some special situation
(iii) Basis of formation These principles are based on personal experience These principles are based on observation and experimentation.
(iv) Focus These principles focuses on improving overall administration These principles focuses on increasing productivity.
(v) Expression General theory of administration Scientific management.

 (5) Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.

Ans: The principles and techniques suggested by Fayol and Taylor is quite relevant and pertinent to contemporary business environment as it makes the manager a “Global manager”. A global manager today is one who possesses what can be termed as “hard” types of skills as well as “softer” types skills. Managers who understand analysis, strategy, technology and are extremely critical to global success are the people who understand how team work and overall an organisation work.

(6) “Bhasin” limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality & reasonable prices. Also with more people working in the market for processed food was increasing. In order to keep its market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products this resulted in a lot of overlapping and wastage. The workers —- becoming indisciplined. The quality of products was beginning to decline and market share was on the verge of decrease. Actually the company had implemented. Changes without creating the required infrastructure

(a) Identify the principles of management (out of 14 given by —- fayol) that were being violated by the company.

(b) Explain these principles in brief.

(c) What steps should the company management take in relation to the above principles to restore the company to its past glory?

Ans: (a) The principles of management violated by the company are – Division of work, scalar chain, Discipline, unity of command.

(b) Division of work: According to this principle, work is divided into small tasks or jobs according to the skills and specialty.

Discipline: According to fayol, discipline requires good superior at all levels, clear and fair agreements and judicious application of penalties. Discipline is the obedience to organisational rules and employment agreement necessary for the working of an organisation.

Scalar Chain: Refer to answer 5 of short answer type question.

(c) The company should take the following steps to restore the company to its past glory –

(i) Company should not overburden the worker with unnecessary work pressure.

(ii) Company must encourage the employees to take initiative to perform better through proper motivation.

(iii) Company must follow the principle of unity of command so as to avoid confusion among the employees regarding execution orders and instructions by them.

(7) The management of company Bhasin limited now realized its folly. In order to rectify the situation it appointed a management consultant Mukti consultants-to recommend a restructure plan to bring the company back on the rails. Mukti consultants undertook a study of the production process at the plant & recommend the following changes –

* The company should introduce scientific management with regard to production.

* Production planning including routing, scheduling dispatching and feedback should be implemented.

* In order to separate planning from operational management “Functional foremanship” should be introduced.

* “Work study” should be undertaken to optimize the use of resources.

* “Standardisation” of all activities should be implemented to increase the efficiency and accountability.

* To motivate the workers “Differential piece rate system” should implemented.

It was expected that the changes will bring about a radical transformation in the working of the company and it will —– glory.

(a) Do you think that introduction of scientific management as —– by M consultants will result in intended outcome?

(b) What precautions should the company undertake to implement changes?

(c) Give your answer with regard to each technique separately as enunciated in paints 1 through 6 in the case problem.

Ans: (a) Yes, I think that introduction of scientific management will   in the intended outcome for the organisation.

(b) The precautions to be undertaken to implement the changes areas follows:

(i) The managers must ensure that the principles must be follow correctly by the employees.

(ii) The managers must motivate the employees to follow the principles.

(c) Scientific management with regard to production, the precaution takes the manager should be to ensure that no dictatorship or rule of thumb should be followed.

Incas of functional foremanship, the production incharge persons like – speed boss, gang boss, repair boss etc should responsible for timely and accurate completion of job.

For “Work study” all the three techniques i.e. time study, motion study and method study should be applied properly and the best and effective alternative should be chosen.

Standard performance and method of production should be chosen “Differential piece rate system” should be implemented properly — proper guidance and motivation by the managers.

Read: This Book Chapter 1 Question Answer

Updated: August 2, 2023 — 2:32 pm

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