Gujarat Board GSEB Class 12 Organization of Commerce and Management Important Questions Chapter 2 Principles of Management Important Questions and Answers.

GSEB Class 12 Organization of Commerce and Management Important Questions Chapter 2 Principles of Management

Short Answer Type Questions

Question 1.
Management was applied in which fields during the era of Chandragupta Maurya and Chhatrapati Shivaji?
Answer:
Management was applied in the making policies and strategies of war in the era of Chandragupta Maurya and Chhatrapati Shivaji.

Question 2.
Name some of the management gurus who have played an important role in rendering various principles of management.
Answer:
Fredrick Taylor, Henri Fayol, Gilbreath, Max Weber, Chester Barnard, Peter F. Drucker, C.K. Prahalad, etc.

Question 3.
Who has hailed the ideology of management as‘jungle’?
Answer:
Harold Koontz

Question 4.
On. what are management principles built?
Answer:
Management principles are built on assumptions, traditions, and experiences.

Question 5.
What is difference between principles of management and techniques of management?
Answer:
Techniques of management are the sets of steps taken to achieve the target, while the principles are guidelines for the decisions which have been taken during implementation of the techniques.

Question 6.
List down the characteristics of ‘Principles of management’.
Answer:

1. Universal acceptance,
2. Flexible,
3. General Guidelines,
4. Based on human behavior, and
5. Contingency.

Question 7.
On the basis of what does the implementation of principles of management change in the business units?
Answer:
Implementation of principles of management changes on the basis of type, form, activity and size of the business unit.

Question 8.
Why is it necessary to consider human behavior while implementing principles of management?
Answer:
Human is the centre of the management. Principles of management have direct relationship with the human behavior which is a psychological phenomenon. Hence, ….

Question 9.
List down the importance of ‘Principles of management’.
Answer:

• Increase in managerial efficiency,
• Maximum usage and effective administration of resources,
• Helpful for scientific and logical decisions,
• To cope up with the changing business environment,
• To fulfill social responsibility, and
• Useful for research, training and development.

Question 10.
How do principles of management help in increasing managerial efficiency?
Answer:
Principles of management provide guidelines to managers to perform task in different situations. This leads to improved functioning of a business unit and gain in managerial efficiency.

Question 11.
On which factors are the decisions of a business unit based on?
Answer:
Decisions of business are based on facts, thoughtfulness, objectives, and justifiable factors.

Question 12.
How do principles of management help in taking logical decisions?
Answer:
Using management principles decisions can be made appropriately and timely in an unbiased manner. These decisions are reality based and effective.

Question 13.
What is the aim of business apart from profit?
Answer:
Development and progress of society are also aim of the business apart from profit.

Question 14.
What are the different factors that led to management thoughts?
Answer:
Management thoughts are the outcome of researches, studies and results in the field of management.

Question 15.
List down different thoughts and approaches of management.
Answer:

• Thoughts of classical theory,
• Thoughts of neo-classical theory,
• Thoughts of behavior related, and
• Thoughts of modern management.

Question 16.
Who are the main promoters of thoughts of classical theory?
Answer:
Fredrick Taylor, Max Weber, Gilbreath, Henry Gantt and Henri Fayol.

Question 17.
Who presented the principles of scientific management?
Answer:
Fredrick Taylor

Question 18.
Which are the fields in which the main factors of scientific management lie?
Answer:
Main contributions of scientific management lie in specialization in management, progressive wages system, and responsibility and scientific distribution of task.

Question 19.
When did thoughts of neo-classical theory establish?
Answer:
Neo classical theory established at the end of 19th century after the industrial revolution.

Question 20.
Who is known as the promoter of ‘thoughts of neo-classical theory’?
Answer:
Elton Mayo

Question 21.
Who gave birth to behavior oriented thoughts in the 20th century?
Answer:
Australian psychologist Elton Mayo’s theory of Hawthorne gave a new birth to behavior oriented thoughts.

Question 22.
Name some of the main contributors to the thoughts of neo-classical theory.
Answer:
Elton Mayo, Herzberg, Rensis Likert, Chris Argyris, Mcgregor and Maslow.

Question 23.
What is management?
Answer:
Management is the art of getting work from others.

Question 24.
What is the main limitation ot thoughts of behavior related?
Answer:
The main limitation of this approach is that human relation is given more importance which cannot be maintained at the cost of productivity.

Question 25.
What was the reason which led to existence of thoughts of modern management?
Answer:
A change in the format of industry and business units after 1960 was the main reason for thoughts of modern management to arise.

Question 26.
List down the contributors of thoughts of modern management.
Answer:
Koontz O’Donnell, George FT Terry, Peter F. Drucker, William Ouchi and C.K Prahlad are the main contributors of thoughts of modern management.

Question 27.
State the approach of Modern Thought.
Answer:
When the format of industries and business unit changed afte- 1960, it demanded the need of special approach of management. Management was not restricted to only business and industrial units but also to professional people and units that provided professional services like that of taxation, law, medicine, etc. These professions gave rise to a new class of managers and hence management.

Question 28.
Who was Fredrick Taylor?
Answer:
Fredrick Taylor was an American mechanical engineer who became a manager in Bethlehem Steel Company. He is known as the father of scientific management.

Question 29.
Which are the two classes important in any business unit?
Answer:
Owners and workers.

Question 30.
What is the thought process of owners and workers in business units?
Answer:
The thought process of owners is optimization of profit and wealth whereas, that of employees is higher wages and job satisfaction.

Question 31.
What is the rule of thumb?
Answer:
Rule of thumb is where the workers were asked to do work as per order. No voice of workers was heard and there existed high dominance of owners.

Question 32.
What is the meaning of scientific management?
Answer:
Scientific management is a mental revolution on the part of particular unit of employees in factory. It is a total mental revolution towards their tasks, duties, colleagues and owners.

Question 33.
Define scientific management as per Taylor.
Answer:
Knowing exactly what-you want your man to do and then see to it that they do it in the best and the cheapest way.

Question 34.
State the principles of scientific management by Fredrick Taylor.
Answer:

1. Scientific method,
2. Planning and Implementation,
3. Job Analysis,
4. Standardization,
5. Scientific selection and training,
6. Financial motivation,
7. Economical and
8. Mental Revolution.

Question 35.
What do you mean by motion study?
Answer:
Motion study means method of removing wastage of resources due to unnecessary and unproductive movement of men and material.

Question 36.
What is the main objective of motion study?
Answer:
Main objective of motion study is to find out a method which results into minimum wastage of movement of man and material.

Question 37.
How has management thoughts emerged?
Answer:
Management thoughts are the outcome of several researches, studies and applications.

Question 38.
According to Fredrick Taylor, who does the planning and implementation in the organization?
Answer:
According to Fredrick Taylor, planning is done by owners or managers and implementation by workers.

Question 39.
What do you mean by job analysis?
Answer:
Job analysis is a process to collect information about the duties, responsibilities, necessary skills, outcomes and work environment of a particular job.

Question 40.
Which different factors are considered for standardization?
Answer:
Equipment, time, situation of work, resources, etc. are the factors considered for standardization.

Question 41.
List down some of the factors to be considered for selection of workers based on scientific standards.
Answer:
Education of employees, skills, guts, physical strength, and training are some of the factors to be considered for selection of workers based on scientific standards.

Question 42.
What do you mean by differential wage rate study?
Answer:
A differential wage-rate system is a method of wage payment in which after tests a standard time for any task is being set. The worker gets a high wage-rate for completing the job within the allotted time and lower wage-rate for completing the job beyond the allotted time.

Question 43.
Who wrote the book – Industrial and General Management in the year 1961?
Answer:
Henri Fayol

Question 44.
List down the administrative principles of industrial unit given by Henri Fayol.
Answer:

1. Technical Activities,
2. Commercial activities,
3. Financial activities,
4. Safety activities,
5. Accounting activities and
6. Management activities.

Question 45.
What do commercial activities of principles of management by Henri Fayol include?
Answer:
It includes activities like purchasing, sales, exchange of units.

Question 46.
List down any four the management principles of Henri Fayol.
Answer:

1. Division of work,
2. Authority and responsibility,
3. Discipline and
4. Unity of command.

Question 47.
Explain remuneration of personnel principle given by Henri Fayol.
Answer:
Remuneration means return against the services provided by employees. All employees do not work with same efficiency in a unit. These employees who are more efficient should be compensated more as compared to other employees. This helps in reducing labour turnover.

Question 48.
Which type of organization benefits with the implementation of centralization in organization structure?
Answer:
Centralization should be adopted in the organization where the size of the organization is small.

Question 49.
Explain scalar chain principle.
Answer:
Scalar chain means emphasizing on creating chains from top level management to bottom level management. Power and responsibility should be vested as per their respective levels.

Question 50.
Which are the two parameters on which order principle emphasizes?
Answer:
Raw material arrangement and social arrangement.

Question 51.
What do you mean by Esprit de corps?
Answer:
Esprit de corps means feeling of oneness, This principle shows that success’of an industrial unit lies in mutual relation of managers and employees. Hence there ‘ should be harmony between the managers and employees.

Question 52.
Who gave the concept of MBO i.e. management by objectives and self-regulations?
Answer:
Peter F. Drucker

Question 53.
In which areas of management have Peter F. Drucker contributed?
Answer:
[Peter F. Drucker has contributed to human resource management, marketing management and stress management.

Long Answer Type Questions

Question 1.
Management is not a modern day discovery. Explain.
Answer:

• Activities of management have been carried out since centuries. The Kings and rulers have been using several elements of management in managing their reigns.
• Even during those times strategies were made for wars, building forts, training soldiers, managing the kingdom, water management, agriculture, etc.
• One can see systematic use of management policies and war strategies during the rule of Chandragupta Maurya and Chhatrapati Shivaji.
• As, the world evolved, various management gurus came into picture. These management gurus, thinkers, ideologists and authors have time and again given new principles through evaluation and reconsideration of the concept of management.
• Thus, the history of concept of management is very ancient and has been- changed periodically.
• These people have contributed to the modern day management. Frederik Taylor to Henri Fayol, Gilbreath, Max Weber, Chester Barnard, Peter F. Drucker and C. K. Prahalad played an important role in rendering various management principles to make it as per the era.
• Thus, management is not a modern day term. It existed even during the most ancient periods however, it has ever-evolved with time.

Question 2.
Explain the meaning and concept of principle of management?
Answer:
Meaning of principle of management:

• Rules and principles formed in business unit with respect to human behaviour for achieving of goal easily are called principles of management.
• The principles of management work as a guide for the managers.
• It should be well noted that the principles of the management are not the rules. They are only the sum and substance of the assumptions, traditions and experiences.
• These principles lay a strong foundation for the success of a business unit.

Concept:

• Management is the combination of art and science.
• Every science is based on some underlying principles, so is management. However, the principles of management are not as rigid as the pure science, but are quite flexible.
• The principles of management have direct relationship with the human behaviour. Since they are related to human behaviour there is a scope of improvement as and when human behaviour evolves.
• Human behaviour and the technology keep on changing. As a result, the principles of management must also be changed to adapt with the new changes.
• Principles of management are the detailed and perfect guideline for making decisions and their implementation.
• For example, through these principles the unit can increase the enthusiasm of the employees by giving them transfers, promotions etc.

Question 3.
How are management principles different from, management techniques?
Answer:
Management principles are different techniques in the following ways:

• Management principles and management techniques are two different things.
• Methods or techniques are the set of steps taken to achieve the target whereas principles are the guidelines for the decisions which have been taken during implementation of. the techniques.
• Similarly, principles are not values. Values are acceptable or preferable since they are related with the morality whereas the principles are the universal truth and guidelines for the human behaviour.

Question 4.
State and explain the -natureTSTprinciples of management.
Answer:

• Principles of management are not rigid and are quite practical.
• These principles are the. guidelines to perform a task.
• For example, the principles guide the managers to take various decisions at the time of implementation of different tasks of management such as planning, organization and direction.
• Experts believe that although the management principles are mostly true they are not absolute truth because there are also exceptions to these principles.

Question 5.
Discuss the conclusions that can be derived from the concept of principles of management.
Answer:
We can derive the following conclusions from the principles of management:
1. Universal acceptance:

• Principles of management can be applied to most of the business units i.e. they are universally applicable.
• These principles are needed wherever there is a need of collective efforts of humans. However, their application and form of implementation may change as per the type, form, activity and size of the business unit.

2. Flexibility:
The principles of management are not rigid. The manager may change them as per the need of the business. For example, in large units the principle of division of work may be applied uniformly, but in small units the principle of division of work may not be applied in the same proportion and hence the manager of the small unit may have to change the principle as per the firm’s requirements,

3. General guidelines:
Principles of management are developed on the basis of experiences gained by different experts in different situations.

• While managing the unit there arise several different types of simple and complex problems. These issues may differ from unit to unit. So, in these regards, the principles of management may work fine for one unit but might not work for the other.
• Hence, it should be noted that the principles of management are general guidelines. They cannot be observed strictly that too in the same manner by every business unit.

4. Based on human behaviour:

• Human is at the center of the management. So, the principles of management largely affect human behaviour.
• Human behaviour is a psychological phenomenon and so implementing management principles on humans will affect their behaviour in the industry.
• Hence, it is important to keep this in mind while implementing the principles.

5. Contingency:
Contingency is ono of the elements applicable to the principles of management. Units can make use of these principles and achieve the business goals easily.
For example, decisions related to questions like appropriate and reasonable wages to the employees, etc. depends on the concern regarding necessity and contingency of the affecting factors.

Question 6.
Although principles of management are very crucial for a business unit they are still guidelines and not rules. Explain.
Answer:
General guidelines:

• Principles of management are developed on the basis of experiences gained by different experts in different situations.
• While managing the unit there arise several different types of simple and complex problems. These issues may differ from unit to unit. So, in these regards, the principles of management may work fine for one unit but might not work for the other.
• Hence, it should be noted that the principles of management are general guidelines. They cannot be observed strictly that too in the same manner by every business unit.

Question 7.
How do principles of management help in research, training and development?
Answer:
Useful for research, training and development:

• Management principles are the main elements of management thoughts.
• Training, education and development are possible only through proper implementation of management principles.
• For example, in modern time, aptitude tests are conducted for appointing employees in various business units. These aptitude tests are prepared through research and by implementing and using management principles.

Question 8.
What do you mean by management thoughts? Enlist the major forms of thoughts that emerged under management.
Answer:

• The principles, opinions and thoughts given by several management gurus are together known as management thoughts.
• These thoughts are the outcome of several researches, studies and applications. These thoughts have led to the development of so many branches and sub-branches.

The major thoughts of management are:

• Thoughts of Classical Theory
• Thoughts of Neo-Classical Theory
• Thoughts related to Human Behaviour
• Thoughts of Modern Management

Question 9.
State the contribution of Henri Fayol in thoughts of classical theory.
Answer:

• Contribution of Henri Fayol in thoughts of classical theory is also quite significant.
• He gave certain general principles of management.
• He decided levels of different tasks in business unit and tried to set limits for each task.
• He also provided universal principles of management as guidelines for performing managerial duty at different levels.

Question 10.
Need arose to change the thoughts of classical theory. Explain.
Answer:

• By the end of 19th century, formats and size of industries started growing due to industrial revolution.
• The classical theory proved to be less effective on these large industries and so there rose a need for changes in these principles.
  There rose a need of paying importance to financial motivation, less important . to human approach and informal relations, etc.
• Hence, there arose a need to change the thoughts of classical theory.

Question 11.
Explain the thoughts of neo-classical theory.
Answer:
Thoughts of Neo-Classical Theory:

• By the end of 19th century, formats and size of industries started growing due to industrial revolution. The classical theory proved to be less effective , on these large industries and so there rose a need for changes in these principles.
• So, to remove some limitations of classical theory, some management experts made changes to the existing principles and established new approaches. These new approaches or principles were called thoughts of Neo-Classical Theory.
• In the start of 201h century, Australian Industrial psychologist Elton Mayo gave the concept called the ‘Hawthorne Effect’ based on the study that he did in Hawthorne Works, America.
• This theory gave a new birth to behaviour oriented thought. Hence, Elton Mayo is called promoter of Thoughts of Neo-Classical Theory’:
• Thoughts of neo-classical theory emphasizes on behavioural approach and group behaviour.
• Later, certain additions were made to the thoughts of neo-classical theory.
  Keeping in mind the concepts of classical theory, certain additions were made in the neo-classical theory which included informal organization, human behaviour, human relations, inspiration, etc.
• Elton Mayo, Herzberg, Rensis Likert, Chris Argyris, McGregor and Maslow are main contributors to these thoughts.
• The thoughts of neo-classical theory especially focus on human relations or human behaviour thoughts, thoughts of social mechanism and social arrangement.

Question 12.
Who gave the thoughts of neo-classical theory? What were these thoughts focused on? Name the other important contributors to these thoughts.
Answer:

• In the beginning of 20th century, Australian Industrial psychologist Elton Mayo gave the concept called the ‘Hawthorne Effect’ based on the study that he did in Hawthorne Works, America.
• This theory gave a new birth to behaviour oriented thought. Hence, Elton Mayo is called promoter of ‘Thoughts of Neo-Classical Theory’.
• Thoughts of neo-classical theory emphasizes on behavioural approach and group behaviour.
• Herzberg, Rensis Likert, Chris Argyris, McGregor and Maslow are other important contributors to these thoughts.

Question 13.
What is the major limitation of thoughts related to human behaviour?
Answer:
Management is an art of getting work from others i.e. humans. Keeping this in mind the thoughts related to human behaviour are considered as the main part of management.

• These thoughts focuses on psychological aspects only and do not consider ecohomic parameters of the business unit.
• Hence, some believe that the human relations cannot be maintained at the cost of productivity of the unit.

Question 14.
“You manage your men, your men will manage rest of all”. Explain.
Answer:

• Management is an art of getting work from others i.e. humans. Keeping this in mind thoughts related to human behaviour came into being.
• A business unit is managed by people. Hence, it is utmost important to study inter-relationship between humans at work place.
• Since, management of people is done on a constant basis the thoughts related to human behaviour emphasizes on studying aspects that affect behaviour of humans in the work place and their approach towards the work. Owing to these facts, Prof. Urvik said, “You manage your men, your men will manage rest of all”.

Question 15.
Which new thoughts were put into practice under the thoughts of modern management? Which management gurus contributed in these thoughts?
Answer:

• Over and above management thoughts, the thoughts of modern management included thoughts for psychology, social studies, statistics, mathematics and computer, information technology also emerged.
• Management Gurus like Koontz O’Donnell, George R. Terry, Peter F. Drucker,
  William Ouchi and C.K. Prahlad have contributed in the thoughts of modern management.

Question 16.
Who was Frederick Winslow Taylor? Why did he present the scientific method of management?
Answer:

• Frederick Winslow Taylor was an American mechanical engineer and an important contributor to classical thoughts.
• He started his career as an apprentice in a factory. After contributing in various companies, he became a manager in Bethlehem Steel Company.
• It was F. W. Taylor who first gave the principle of scientific management.
• Hence he is known as a father of scientific management.

The need of scientific method of management:

• Mostly a business unit is divided in two parts, i.e. the owners and the workers.
• Owner means managers. Their main objective is optimization of profit and wealth at minimal costs. On the other hand, the main aim of workers or say employees is to earn higher wages and job satisfaction.
• These two contrasting aims create a bi-polar conflicting situation between the owners and the workers. In such situation it is difficult to maintain harmony between these two groups of people.
• As per the traditional methods, the workers were asked to work maximum without any major benefits. Workers had no voice of their own. They had to simply follow what was told to do in whatever manner.
• So, under the traditional management, the owners dominated the workers. Dominance of the owners was the rule of thumb to be followed by the workers without any arguments.
• Frederick Taylor challenged this traditional method. He presented a new concept with scientific approach instead of rule of thumb. The concept of management that Taylor gave was known as the scientific management.

Question 17.
Define scientific management. Why and how as per Taylor should these principles be put, in practice?
Answer:
Definition:

• F. W. Taylor defined scientific management as “Knowing exactly what you want your man to do, and then see to it that they do it in the best and the cheapest „way.”
• Scientific Management is a mental revolution favouring employees of a factory. It focuses on tasks and duties of the employees, their colleagues and owners.
• Frederick Taylor himself was an engineer and so he knew the problems faced by the workers.
• He found that until the workers are given wage rate that keeps them motivated, they will not work efficiently.
• He believed that principles of scientific management will have to be put in practice in order to increase the productivity of workers with lower production costs.

He suggested to adopt scientific approach of management so that the managers do not decrease the wages and the workers remain loyal and productive towards the work.

He challenged the traditional approach and presented scientific management as a revolutionary thought. For this he stated that the following matters should be considered.

• Each worker should be assigned work as per his mental and physical ability.
• Each worker should be instructed to perform maximum work as per category.
• A worker working efficiently and rapidly should be paid 30% to 100% more wages.

Question 18.
State the main points suggested by Taylor for adopting scientific management.
Answer:

• F. W. Taylor defined scientific management as “Knowing exactly what you want your man to do, and then see to it that they do it in the best and the cheapest way.”
• Scientific Management is a mental revolution favoring employees of a factory. It focuses on tasks and duties of the employees, their colleagues and owners.

Taylor suggested the following things to be adopted for scientific management:

1. Each worker should be assigned work as per his mental and physical ability.
2. Each worker should be instructed to perform maximum work as per category.
3. A worker working efficiently and rapidly should be paid 30% to 100% more wages.

Question 19.
What is job analysis?
Answer:
Job analysis:

• Analysis of the job to be done should be done before starting it. This is the best way to get work done speedily that too with lower cost.
• Under job analysis, time and motion study as well as fatigue study should be done. This will decrease the cost of production and increase productivity.

Question 20.
How does scientific selection of employees help the organization?
Answer:

• As per the scientific management, the workers should be selected through appropriate and scientific methods.
• Under scientific selection, the business unit sets standards or benchmarks / for education of employees, skill, guts, physical strength, training, etc. before selecting them.
• The unit also conducts a variety of scientific tests to know the work interest of employees. .
• Adopting a scientific method of selection assures the unit that the selected candidates are well-suited for the organization.
• Managers have scientific evidence about the qualification, test-scores, data regarding interviews, etc. They analyse the data and then they select the best candidate for the organization. This assures consistent performance and higher productivity to the organization.

Question 21.
Write a short note on techniques of principles of scientific management.
Answer:
Three major techniques of principles of scientific management are discussed below:
1. Time study:

• The scientific study of time required for completion of a task is called time study.
• The time decided on the basis of the study to finish this work under normal circumstances is called standard time for that time i.e. whenever a task will be done in that unit, it will be done within this standard time.
• As per Taylor, a task should be finished within the standardized time.
• Time study is very important for making optimum use of production equipment and achieving objectives on stipulated time.

2. Motion study:

• The study done to understand the motion of man and material during the given task is called motion study.
• Motion study is done to remove wastage of resources that occurs due to unnecessary and unproductive movement of men and material.
• For example, due to flaws in the method or design of the unit or. flaw in the assembly line the worker or material might be moving more than necessary. This causes fatigue among workers and wastage of resources such as electricity, fuel, etc.
• By performing motion study systematically, the fatigue of workers can be removed by removing wrong process of movement and productivity can be increased.

3. Differential wage-rate study:

• A referential wage-rate system is a method of wage payment in which after tests a standard time for any task is being set. The worker gets a high wage- rate for completing the job within the allotted time and lower wage-rate for / completing the job beyond the allotted time.
• Frederick Taylor favored this motivational wage method.
• Each worker working in factory has different work efficiency. Considering this fact, efficient worker should get more wages whereas workers having less efficiency should get lower wages.

Question 22.
What is time study?
Answer:
Time study:

• The scientific study of time required for completion of a task is called time study.
• The time decided on the basis of the study to finish this work under normal circumstances is called standard time for that time i.e. whenever a task will be done in that unit, it will be done within this standard time.
• As per Taylor, a task should be finished within the standardized time.
• Time study is very important for making optimum use of production equipment and achieving objectives on stipulated time.

Question 23.
Who was Henri Fayol? How did he divide industrial activities so that principles of management can be properly implemented?
Answer:

• Henri Fayol was a French engineer and an industrialist. He contributed much in the management thoughts and principles.
• In 1961, he gave 14 principles of management. He presented these principles in his book ‘Industrial and General Management’.
• For better management, ease and clarification of these 14 principles he divided activities of industrial units in 6 parts.

The six parts are:

Industrial activity	Inclusions
(1) Technical activities	These activities include factory machineries and activities related production.
(2) Commercial activities	Activities like purchasing, sales, exchange of units
(3) Financial activities	Activities like procurement of capital, use of capital, fund maintenance, re investment
(4) Safety activities	These include safety of employees, safety of assets, safety of goods (raw materials)
(5) Accounting activities	These include financial statements and performing necessary statistical analysis
(6) Management activities	These include planning, organization, direction, co ordination control activities

Question 24.
Briefly introduce Henri’s views about his management principles and enlist them.
Answer:
Henri Fayol’s Principles of management:

• The principles developed by Henri Fayol were totally new tor that era.
• Henri believed that to become a successful manager in any industrial unit, knowledge alone is not enough. One should also be aware about how the various activities of the entire industry function.
• While giving these principles Henri Fayol said that “These are only directive principles. Success of these principles depends upon the sharp sense of management. It is a task of wisdom.”

With his rich experience and knowledge he presented 14 important principles of Management. They are:

1. Division of work
2. Authority and responsibility
3. Discipline
4. Unity of command
5. Unity of direction
6. Sub-ordination of individual interest to the general interest
7. Remuneration of personnel
8. Centralization
9. Scalar chain
10. Order
11. Equality
12. Stability of personnel tenure
13. Initiative
14. Esprit de corps (Feeling of oneness)

Question 25.
A disciplined unit grows faster and in a consistent manner. Explain.
Answer:
Discipline:

• A proper discipline should be maintained for successfully attaining business objectives.
• Discipline creates harmonious environment at work place.
• In order to maintain discipline in the industry it is very important to make optimum use of equipment and to see that activities are done consistently.
• Industrial discipline can be established by setting specific rules and code of conduct. This then leads to proper administration of the unit.
• It becomes easy to manage and control the unit having more employees if proper code of conduct is established.
• It also increases work interest of employee and makes the work easy for the managers.
• Supervision, clear and appropriate contracts between workers and owners and appropriate implementation of punishments at every level are important aspects of discipline.

Question 26.
What is unity of direction?
Answer:
Unity of direction:

• Planning shapes the future of business. However, if activities do not go as planned, then they are re-directed and brought on the planned track.
• The directions fo’r these things should be given by superior authority. By doing so activities can be well co-ordinated and all the tasks can be done easily.
• According to this principle there should be only one superior employee leading a particular group of employees. This group should be focused on one specific objective at a time.

Question 27.
Explain subordination of individual interest to the general interest.
Answer:
Subordination of individual interest to the general interest:

• This principle states that ‘general interest’ is superior to ‘individual interest’.
• This principle tells that interest of whole unit should be kept in focus rather than interest of individual or group of employees.
• The manager must try to integrate the individual goal with the organizational goal in such a manner that both the objectives are accomplished with efficiency and effectiveness.

Question 28.
According to Fayol, how should the unit decide the remuneration of the employees?
Answer:
Remuneration of personnel:

• The return or reward given to the employees against the service they render is called remuneration.
• Fayol says that employees of company should be paid suitable and ideal wages. This makes owner-employee relation stronger.
• In a unit, all employees do not work with the same efficiency. Some employees show higher efficiency,than other. Such employees should be given more wages or rewards compared to other. This will keep the employees loyal towards the unit and stop them from leaving the job.
• The unit should also put into practice promotional schemes like bonus, profit sharing, representation in management committee, etc.

Question 29.
Explain: Scalar chain.
Answer:
Scalar chain:

• Scalar chain is the formal line of authority which moves from highest to lowest rank in a straight line. This chain specifies the route through which the information is to be communicated to the desired location/person.
• Fayol emphasized that each information in the organization must flow according to this chain to facilitate clear communication of orders of the superiors and feelings of the subordinates.
• This chain must be strictly followed in the organization.
• This principle emphasizes on creating chain from top level management to bottom level employees.
• Chain of power from higher administrative officers to bottom level employees should not be broken. .
• There should be proper delegation of powers and responsibility at respective level. Moreover, the employees of the unit should be aware of , who is responsible to whom.

Question 30.
What is material order and social order?
Answer:
(A) Material order:
The order that specifies to have all the material of the business unit in proper order or say in proper place is called material order.

(B) Social order:
Social order refers to having a proper place for all human resources in accordance with their designations.

Multiple Choice Questions

Question 1.
Who has hailed the ideology of management as ‘jungle’?
(A) Henri Fayol
(B) Harold Koontz
(C) Peter Drucker
(D) Gillbreath
Answer:
(B) Harold Koontz

Question 2.
_______ is the combination of art and science.
(A) Organization
(B) Planning
(C) Management
(D) Human resource management
Answer:
(C) Management

Question 3.
What relationship does principles of management hold with human behaviour?
(A) Direct relationship
(B) Indirect relationship
(C) Inverse relationship
(D) Both (a) and (c)
Answer:
(A) Direct relationship

Question 4.
Steps taken to achieve the target in the organization are known as
(A) Methods
(B) Techniques
(C) Principles
(D) Both (d) and (b)
Answer:
(D) Both (d) and (b)

Question 5.
Which of the following characteristics of principles of management suggest that in large units the principle of division of work may not be applied in the same proportion?
(A) Universal acceptance
(B) Flexible
(C) Contingency
(D) Based on human behavior
Answer:
(B) Flexible

Question 6.
Mostly, what is the first step of appointments in various business units?
(A) Personal interviews
(B) Aptitude tests
(C) Selection
(D) Group interviews
Answer:
(B) Aptitude tests

Question 7.
The thoughts of management presented till the end of 19th century are known as _______
(A) Thoughts of neo classical theory
(B) Thoughts of modern management
(C) Thoughts of behavior related
(D) Thoughts of classical theory
Answer:
(D) Thoughts of classical theory

Question 8.
Who among the following is not a promoter of thoughts of classical theory?
(A) Henri Fayol
(B) Henri Gantt
(C) Elton Mayo
(D) Max Weber
Answer:
(C) Elton Mayo

Question 9.
In which of the following lies the contribution of scientific principles?
(A) Specialization in management .
(B) Progressive wages system .
(C) Responsibility and scientific distribution of task
(D) All of these
Answer:
(D) All of these

Question 10.
Why did the size and formats of organization change in the end of 19th century?
(A) Due to. privatization
(B) Due to industrial revolution
(C) Due to increase in skilled labour
(D) Due to global depression
Answer:
(B) Due to industrial revolution

Question 11.
Which of the following is the main importance of classical thoughts?
(A) Financial motivation
(B) Human approach
(C) Informal relations
(D) Authority in the hands of managers
Answer:
(A) Financial motivation

Question 12.
What was the main element of thoughts of Neo-classical theory ?
(A) Authority
(B) Behaviour approach
(C) Financial motivation
(D) Informal relations
Answer:
(B) Behaviour approach

Question 13.
Maslow is the main contributor for which of the following thoughts’
(A) Thoughts of classical theory
(B) Thoughts of modern management.
(C) Thoughts of neo classical theory
(D) Thoughts of behavior related
Answer:
(C) Thoughts of neo classical theory

Question 14.
Whmh of the following concepts is not a part of behavior related thoughts?
(A) Information communication process
(B) Motivation
(C) Disposal of industrial disputes
(D) Computer and Technology
Answer:
(D) Computer and Technology

Question 15.
What was the profession of Fredrick Winslow Taylor?
(A) Computer engineer
(B) Mechanical engineer
(C) Psychologist
(D) Economist
Answer:
(B) Mechanical engineer

Question 16.
Who is known as the father of scientific management?
(A) Fredrick Taylor
(B) Max Weber
(C) Henri FayoJ
(D) Henry Gentt
Answer:
(A) Fredrick Taylor

Question 17.
According to Fredrick Taylor, what is the main objective of managers?
(A) Expansion of business
(B) Hire good employees
(C) Optimization of profit arid wealth
(D) Maximization of profit
Answer:
(C) Optimization of profit arid wealth

Question 18.
What is the meaning of rule of thumb according to traditional management?
(A) Dominance of owners
(B) Dominance of workers
(C) Not to challenge the traditional methods of production
(D) Work harmony between owners and workers
Answer:
(A) Dominance of owners

Question 19.
Who gave the definition of management as ‘knowing exactly what you want tour man to do, and then see to it that they do it in the best and cheapest way 5?
(A) Henri Fayol
(B) Koontz
(C) Max Weber
(D) Fredrick Taylor
Answer:
(D) Fredrick Taylor

Question 20.
Which of ItHe following is not a principle of scientific management given by Fredrick Taylor?
(A) Job Analysis
(B) Mental Revolution
(C) Equality
(D) Economical evolution
Answer:
(C) Equality

Question 21.
Which is the best way to get work done speedily at lower cost?
(A) Give higher wages to employees
(B) Gjve more leaves to employees
(C) Managers plan, workers implement
(D) Job analysis
Answer:
(D) Job analysis

Question 22.
Which of the following should be considered for standardization?
(A) Equipment
(B) Time
(C) Resources
(D) All of these
Answer:
(D) All of these

Question 23.
What is the main change expected out of mental revolution principle by Fredrick Taylor?
(A) Reduction in stress between owners and workers
(B) Time reduction in achievement of objectives
(C) It reduces cost of production
(D) It increases job satisfaction in employees
Answer:
(A) Reduction in stress between owners and workers

Question 24.
What is the main objective of motion study?
(A) Making optimum use of production equipment
(B) Find out a method resulting in minimum wastage of workers and its implementation
(C) Efficient workers should get more wages
(D) Both (a) and (b)
Answer:
(B) Find out a method resulting in minimum wastage of workers and its implementation

Question 25.
In which year did Henri Fayol presented principles of management in his book ‘Industrial and General Management’?
(A) 1960
(B) 1961
(C) 1962
(D) 1964
Answer:
(B) 1961

Question 26.
In how many parts did Henri Fayol divide administrative principles of industrial unit?
(A) 4
(B) 10
(C) 6
(D) 8
Answer:
(C) 6

Question 27.
Which of the following is not an administrative principles given by Henri Fayol?
(A) Financial activities
(B) Safety activities
(C) Discipline activities
(D) Management activities
Answer:
(C) Discipline activities

Question 28.
Which of the following should be considered while assigning power in the organization?
(A) Experience
(B) Tenure of service
(C) Discipline
(D) Leadership
Answer:
(A) Experience

Question 29.
Which of the following principle show that interest of individual or employee group should be considered as subsidiary against interest of whole unit?
(A) Equality
(B) Initiative
(C) Sub-ordination of individual interest to general interest
(D) Unity of command
Answer:
(C) Sub-ordination of individual interest to general interest

Question 30.
Which of the following is not a promotional scheme that is suggested to be implemented for skilled workers?
(A) Bonus .
(B) Profit sharing
(C) Promotion to higher post
(D) Representation in managerial committee
Answer:
(C) Promotion to higher post

Question 31.
What does centralization and decentralization in the organization depend upon?
(A) Number of business units
(B) Size of business unit
(C) Number of skilled and unskilled employees
(D) None of these
Answer:
(B) Size of business unit

Question 32.
What is the meaning of Espirit de Corps principle?
(A) Harmony between managers and employees
(B) Authority from top to bottom level management
(C) Feeling of equality
(D) Centralization and decentralization
Answer:
(A) Harmony between managers and employees

Question 33.
Who favored the importance of human asset in business unit?
(A) Peter Drucker
(B) Henri Fayol
(C) Henry Gantt
(D) Max Weber
Answer:
(A) Peter Drucker

Question 34.
Who is known as the ‘father of modern management’?
(A) Henri Fayol
(B) Max Weber
(C) Peter F. Drucker
(D) Chester Barnard
Answer:
(C) Peter F. Drucker