CLASS 12
Business Studies NCERT
Business Studies NCERT
Short Answer Type Questions
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.
Short Answer Type Questions
If an organisation does not provide the right place for physical and human resources in it, which principle is violated? What are the consequences of it?
A production manager at top level in a reputed 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?
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?
Long answer type question
Explain the following principles of management given by Fayol with examples.
Unity of direction
Equity
Esprit de corps
Order
Centralisation and decentralisation
Initiative
Unity of direction
Equity
Esprit de corps
Order
Centralisation and decentralisation
Initiative
Explain the technique of ‘Functional Foreman ship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.
Discuss the following techiques of Scientific Work Study:
Time Study
Motion Study
Fatigue Study
Method Study
Simplification and standardisation of work
Time Study
Motion Study
Fatigue Study
Method Study
Simplification and standardisation of work
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 and reasonable prices. Also with more people working the market for processed food was increasing. New players were
also coming to cash in on the new trend. 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 were becoming indisciplined. The spirit of teamwork, which
had characterized the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the 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.
Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
Explain these principles in brief.
What steps should the company management take in relation to the above principles to restore the company
also coming to cash in on the new trend. 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 were becoming indisciplined. The spirit of teamwork, which
had characterized the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the 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.
Identify the Principles of Management (out of 14 given by Henry Fayol) that were being violated by the company.
Explain these principles in brief.
What steps should the company management take in relation to the above principles to restore the company
(Further information related to the above question 6) The management of company Bhasin Limited now realised 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 of the company Bhasin Limited and recommended 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 optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.)
a. Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?
• 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 optimise the use of resources.
• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.
• To motivate the workers ‘Differential Piece Rate System’ should be implemented.
(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.)
a. Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome?
b. What precautions should the company undertake to implement the changes?
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.
c. Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.
Multiple Choice Questions
How are principle of management formed?
In a laboratory
By experience of managers
By experience of customers
By propagation of social scientists
In a laboratory
By experience of managers
By experience of customers
By propagation of social scientists
The principles of management are significant because of
Increase in efficiency
Initiative
Optimum utilisation of resources
Adaptation to changing technology
Increase in efficiency
Initiative
Optimum utilisation of resources
Adaptation to changing technology
Which of the following statement best describe the principle of 'Division of work'?
Work should be divided into small tasks
Labour should be divided
Resources should be divided among jobs
It leads to specialisation
Work should be divided into small tasks
Labour should be divided
Resources should be divided among jobs
It leads to specialisation
He/She keeps machines,materials,tools etc. ready for operations by concern workers'. Whose work is described by this sentence under functional foreman ship.
Repair Boss
Gang Boss
Instruction Card Clerk
Route Clerk
Repair Boss
Gang Boss
Instruction Card Clerk
Route Clerk
Which one of the following is not principle of management given by Taylor?
Science,not rule of thumb
Functional foremen ship
Maximum,not restricted output
Harmony,not discord
Science,not rule of thumb
Functional foremen ship
Maximum,not restricted output
Harmony,not discord
Management should find 'one best way' to perform a task. Which technique of scientific management is defined in this sentence?
Time study
Motion study
Fatigue study
Method study
Time study
Motion study
Fatigue study
Method study
Which of the following statement best describes "Mental revolution"?
It implies change of attitude
The management and the workers should not play the game of one c
Both management and workers require each other
Workers should be paid more wages
It implies change of attitude
The management and the workers should not play the game of one c
Both management and workers require each other
Workers should be paid more wages
Which of the following statement of 'false' about Taylor and Fayol?
Fayol was a mining engineer whiereas Taylor was mechanical engineer
Fayol's principles are applicable in specialised situation whereas Taylor's principles have universal application
Fayol's principles were formed through personal experience whereas Taylor's principles were formed through experimentation
Fayol's principles are applicable at the top level of management whereas Taylor's principles are applicable at the shop floor.
Fayol was a mining engineer whiereas Taylor was mechanical engineer
Fayol's principles are applicable in specialised situation whereas Taylor's principles have universal application
Fayol's principles were formed through personal experience whereas Taylor's principles were formed through experimentation
Fayol's principles are applicable at the top level of management whereas Taylor's principles are applicable at the shop floor.