Business studies

CHAPTER 2
Principles of management
Multiple choice questions
Q1. Name the principle of management given by Fayol which when
applied would mean that the workers and management both honour
their commitments without any prejudice towards one another.
(a) Discipline (c) Remuneration of employees
(b) Mental Revolution (d) Scalar chain
Q2. The principle of management given by Fayol which aims at
preventing overlapping of activities is:
(a) Division of work (c) Unity of Direction
(b) Unity of Command (d) Order
Q3. Taylor believed that there was only one best method to
maximise efficiency. This method can be developed through study
and analysis. Identify the principle of Scientific management being
discussed above:
(a) Harmony not discord
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest
efficiency and prosperity
(d) Cooperation not individualism
Q4. The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get
maximum output from the employees at a competitive cost. On the
other hand Ramakaant, an employee of the company wants to get
the maximum salary while working the least. The Principle of
management given by Fayol being by Ramakaant is_________.
(a) Remuneration (b) Equity
(c) Discipline (d) Subordination of individual interest to general
interest
Q5. The technique of Scientific Management given by Taylor, which
aims to establish interchangeability of manufactured parts and
products is
(a) Method Study
(b) Motion study
(c) Standardization
(d) Differential Piece wage system
Q6. Taylor proposed eight specialists from whom each worker will
have to take orders from as part of the technique of Functional
Foremanship specified by him. Those with technical,
mastery,intelligence and grit may be given_________work.
Those with energy and good health may be assigned ______work.
(a) Planning, Execution
(b) Execution Planning
(c) Production, Planning
(d) Implementation, Production
Q7. Gang Plank permits direct communication between
(a) Employees working at same level
(b) Any employees irrespective of their level
(c) Employees of same department only
(d) None of the above
Q8. The Foreman responsible for quality of work is
(a) Repair Boss
(b) Disciplinarian
(c) Inspector
(d) Gang Boss
Q9. Rest intervals in job are decided by
(a) Method Study
(b) Fatigue Study
(c) Motion Study
(d) Time Study
Q10. Functional Foremanship is the extension o
(a) Division of Work
(b) Discipline
(c) Unity of Direction
(d) Unity of Command
Q11. The principle which minimises employee's turnover is called
(a) Principle of Equity
(b) Principle of Fair Remuneration
(c) Subordination of individual interest to general interest
(d) Stability of Tenure of Personnel.
Q12. Which of the following principles of management prevents
overlapping of activities?
(a) Fair Remuneration (c) Unity of Direction
(b) Unity of command (d) Equity
Q13. Right place for resources is indicated in-
(a) Principle of order
(b) Principle of discipline
(c) Principle of division of work
(d) None of the above
Q14. Kindness and justice in behaviour of managers is related to-
(a) Principle of Discipline
(b) Principle of Equity
(c) Principle of fair Remuneration
(d) Principle of order
Q15. Violation of this principle will create Insecurity among the
employees. This statement is related to
(a) Esprit De Corps
(b) Remuneration
(c) Stability of Personnel
(d) Authority and Responsibility
Short answer type questions
Q16. In a school, books are kept in office, chalks in the library, office
records and files in staff room. Which principle of management is
violated here? Explain.
Q17. Manager of ABC Ltd. does not allocate work as per the
capability of workers, which principle is violated by them? Explain.
Q18. A manager should have the right to punish a subordinate for
wilfully not obeying a legitimate order but only after sufficient
opportunity has been given to his/her case. Identify and explain the
principle of management highlighted here.
Q19. Mr. Ram started a small business with limited investment, he
hired labour at very less wages. Over the time with broad vision of
Ram and hard work of his employees, the business started earning
very good revenue. But, with increase in earning capacity of
company also Ram did not increase the wages and salary of his
employees, they were not able to maintain a reasonable standard of
living.
Identify and explain the principle of management, overlooked by Mr.
Ram.
Q20. Bring out differences between centralisation and
Decentralisation.
Long answer type questions
Q21. In a school, principal makes sure that every instruction, order or
information given by him must be passed to vice-principal then Head
of the department and then to teachers and students must be
informed by respective teachers only. He never allows teachers to
directly communicate with him.
(i) Explain the Principle of Henry Fayol followed by the school
principal.
(ii) In case of emergency which concept of Scalar Chain can be
used by teacher to pass urgent message directly to principal?
Q22. What did Taylor want to communicate through mental
revolution?
Q23. Purchase manager of ABC Ltd. gave order to supply raw
material@1000 per quintal to his relative whereas same quality raw
material is available @ 900 per quintal by another supplier. This is
violation of which principle of management? Explain that principle.
Q24. The production department of Alpha Ltd. was not performing
well on detailed analysis, it was observed that the workers of that
department were overburdened. They were forced to work for
longer hours without any break. So, the management planned to
replace the production manager. They appointed Mr. Hari as the new
Production Manager. He observed the average worker and noted
down their times. He noted down the time they worked and the time
they required to be fresh to join back the work. Based on this
observation, he set the break intervals for workers. He gave small
breaks to workers to recharge their energy. Name and explain the
technique of scientific management used by Mr. Hari.
Q25. Explain any four characteristics of ‘principle of management ‘.