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Case i: chemco case.

• ChemCo is a quality leader in the U.K. car batteries market.
• Customer battery purchases in the automobile market are highly seasonal.
• The fork-lift business was added to utilize idle capacity during periods of inactivity.
• This is a low-growth industry (1% annual growth over the last two years)
• Large customers are sophisticated and buy based on price and quality. Smaller customers buy solely on price.
• There is a Spanish competitor in the market who offers low priced batteries of inferior quality.

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• Established player in car batteries
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• High quality product, but low end customers care more about price than quality
• Mismanaged product diversification in a price sensitive market
• Alternative 1: Establish an Off-Brand for the fork-lift business
• Alternative 2: Educate the customer market about product quality
• Alternative 3: Exit the fork-lift battery business
• Establishing the firm's quality image
• Increase in market share
• Increase in sales
• Cost of the product
• Protect firm's quality image in the automobile industry
• Redesigned product to reduce the cost of manufacture
• Low price to enable it to compete with Spanish producer
• Make use of the quality leadership in car batteries market
• Offer reliability testing, extended warranties etc. to promote quality image
• Set higher prices to extract surplus from these advantages
• A passive strategy, not proactive
• Recommendations: Alternative 1 is recommended in this case. Since the firm operates in an industry which has low growth, hence it can expand market share and sales only by taking the customers from other players. Hence, it needs to tackle the Spanish competitor head-on by aggressively pricing its product. At the same time, launching a low-priced product under the same brand name erodes the high quality image in the car batteries market. Hence, the best option is to go for an off-brand to target the fork-lift customers who are increasingly becoming price sensitive. This will enable the company to ward off the threat in short-term and build its position strongly in the long-term.

Case II: NAKAMURA LACQUER COMPANY

• The Nakamura Lacquer Company: The Nakamura Lacquer Company based in Kyoto, Japan was one of the many small handicraft shops making lacquerware for the daily table use of the Japanese people.
• Mr. Nakamura- the personality: In 1948, a young Mr. Nakamura took over his family business. He saw an opportunity to cater to a new market of America, i.e. GI's of the Occupation Army who had begun to buy lacquer ware as souvenirs. However, he realized that the traditional handicraft methods were inadequate. He was an innovator and introduced simple methods of processing and inspection using machines. Four years later, when the Occupation Army left in 1952, Nakamura employed several thousand men, and produced 500,000 pieces of lacquers tableware each year for the Japanese mass consumer market. The profit from operations was $250,000.
• The Brand: Nakamura named his brand “Chrysanthemum” after the national flower of Japan, which showed his patriotic fervor. The brand became Japan's best known and best selling brand, being synonymous with good quality, middle class and dependability.
• The Market: The market for lacquerware in Japan seems to have matured, with the production steady at 500,000 pieces a year. Nakamura did practically no business outside of Japan. However, early in 1960, when the American interest in Japanese products began to grow, Nakamura received two offers
• The Rose and Crown offer: The first offer was from Mr. Phil Rose, V.P Marketing at the National China Company. They were the largest manufacturer of good quality dinnerware in the U.S., with their “Rose and Crown” brand accounting for almost 30% of total sales. They were willing to give a firm order for three eyes for annual purchases of 400,000 sets of lacquer dinnerware, delivered in Japan and at 5% more than what the Japanese jobbers paid. However, Nakamura would have to forego the Chrysanthemum trademark to “Rose and Crown” and also undertaken to sell lacquer ware to anyone else the U.S. The offer promised returns of $720,000 over three years (with net returns of $83,000), but with little potential for the U.S. market on the Chrysanthemum brand beyond that period.
• The Semmelback offer: The second offer was from Mr. Walter Sammelback of Sammelback, Sammelback and Whittacker, Chicago, the largest supplier of hotel and restaurant supplies in the U.S. They perceived a U.S. market of 600,000 sets a year, expecting it to go up to 2 million in around 5 years. Since the Japanese government did not allow overseas investment, Sammelback was willing to budget $1.5 million. Although the offer implied negative returns of $467,000 over the first five years, the offer had the potential to give a $1 million profit if sales picked up as anticipated.
• Meeting the order: To meet the numbers requirement of the orders, Nakamura would either have to expand capacity or cut down on the domestic market. If he chose to expand capacity, the danger was of idle capacity in case the U.S. market did not respond. If he cut down on the domestic market, the danger was of losing out on a well-established market. Nakamura could also source part of the supply from other vendors. However, this option would not find favor with either of the American buyers since they had approached only Nakamura, realizing that he was the best person to meet the order.
• Decision problem: Whether to accept any of the two offers and if yes, which one of the two and under what terms of conditions?
• To expand into the U.S. market.
• To maintain and build upon their reputation of the “Chrysanthemum” brand
• To increase profit volumes by tapping the U.S. market and as a result, increasing scale of operations.
• To increase its share in the U.S. lacquerware market.
• Profit Maximization criterion: The most important criterion in the long run is profit maximization.
• Risk criterion: Since the demand in the U.S. market is not as much as in Japan.
• Brand identity criterion: Nakamura has painstakingly built up a brand name in Japan. It is desirable for him to compete in the U.S. market under the same brand name
• Flexibility criterion: The chosen option should offer Nakamura flexibility in maneuvering the terms and conditions to his advantage. Additionally, Nakamura should have bargaining power at the time of renewal of the contract.
• Short term returns: Nakamura should receive some returns on the investment he makes on the new offers. However, this criterion may be compromised in favor of profit maximization in the long run.?
• Reject both: React both the offers and concentrate on the domestic market
• Accept RC offer: Accept the Rose and Crown offer and supply the offer by cutting down on supplies to the domestic market or through capacity expansion or both
• Accept SSW: offer; accept the SSW offer and meet it through cutting down on supply to the domestic market or through capacity expansion or both. Negotiate term of supply.
• Reject both: This option would not meet the primary criterion of profit maximization. Further, the objective of growth would also not be met. Hence, this option is rejected.
• Accept RC offer: The RC offer would assure net returns of $283,000 over the next three yeas. It also assures regular returns of $240,000 per year. However, Nakamura would have no presence in the U.S. with its Chrysanthemum brand name The RC offer would entail capacity expansion, as it would not be possible to siphon of 275,000 pieces from the domestic market over three years without adversely affecting operations there. At the end of three years, Nakamura would have little bargaining power with RC as it would have an excess capacity of 275,000 pieces and excess labor which it would want to utilize. In this sense the offer is risky. Further, the offer is not flexible. Long-term profit maximization is uncertain in this case a condition that can be controlled in the SSW offer. Hence, this offer is rejected.
• Accept SSW offer: The SSW offer does not assure a firm order or any returns for the period of contract. Although, in its present form the offer is risky if the market in the U.S. does not pick up as expected, the offer is flexible. If Nakamura were to exhibit caution initially by supplying only 300,000 instead of the anticipated 600,000 pieces, it could siphon off the 175,000 required from the domestic market. If demand exists in the U.S., the capacity can be expanded. With this offer, risk is minimized. Further, it would be competing on its own brand name. Distribution would be taken care of and long-term profit maximization criterion would be satisfied as this option has the potential of $1 million in profits per year. At the time of renewal of the contract, Nakamura would have immense bargaining power.
• Negotiate terms of offer with SSW: The terms would be that NLC would supply 300,000 pieces in the first year. If market demand exists, NLC should expand capacity to provide the expected demand.
• Action Plan: In the first phase, NLC would supply SSW with 300,000 pieces. 125,000 of these would be obtained by utilizing excess capacity, while the remaining would be obtained from the domestic market. If the expected demand for lacquer ware exists in the U.S., NLC would expand capacity to meet the expected demand. The debt incurred would be paid off by the fifth year.
• Contingency Plan:  In case the demand is not as expected in the first year, NLC should not service the U.S. market and instead concentrate on increasing penetration in the domestic market.

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Case Studies - Principles of Management | Business Studies (BST) Class 12 - Commerce PDF Download

Q. 1. In your school, you observe that books are kept in office, chalks in the library and office records in the staff room.

• Which principle of management is violated here and why?
• How will that affect the achievement of school objectives?
• As a manager, what steps will you take to rectify the shortcomings?           (3 marks)
• Disparate storage of resources violates "Unity of Direction" principle.
• Breeds inefficiency: Staff waste time searching for materials, reducing productivity.
• Increases mismanagement risk: Resources may be misplaced or lost, disrupting school operations.
• Creates coordination challenges: Departments struggle to implement cohesive strategies.
• Solutions: Centralize resource management; designate storage areas; implement inventory control.
• Train staff on proper resource handling.
• Foster collaboration among departments.
• Benefits: Enhances efficiency, minimizes mismanagement risks, promotes unified direction towards achieving school objectives.

Q. 2. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day.  But he did not give him the authority of requisition tools and materials from the stores department.  Can the production manger blame the foreman if he is not able to achieve the desired target?  Explain briefly the principle relating to the situation.               (3 marks)

Ans.  No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and materials form the stores department.  Since he has no authority, he could not fulfill his responsibility.

In this case the principle of ‘Authority and Responsibility’ is violated.  Fayol suggested tht there must be a balance between authority and responsibility.  Authority and responsibility must go hand in hand.  Responsibility without adequate authority will make the subordinate ineffective, I.e., he will not be able to perform his duties properly.  At the same time giving authority without fixing responsibility may lead to misuse of of authority.

Q. 3. S oniya Ltd. was engaged in the business of manufacturing auto components.  Lately, its business was expanding due to increased demand for cars.  The competition was also increasing.  In order to keep its market share intact, the company directed its workforce to work overtime.  But this resulted in many problems.

Due to increased pressure of work the efficiency of workers declined.  Sometimes, the subordinates had to work for more than one superiors.  The workers were becoming indisciplined.  The spirit of teamwork, which had characterized the company previously, had begun to wane.

Identify any three principles of management (as given by Henry Fayol) which were begin violated, quoting the lines from the above case.             (3 marks)

Ans.  Three principles of management by Henry Fayol that were being violated in the case of Soniya Ltd.:

Unity of Command : "Sometimes, the subordinates had to work for more than one superiors."

• This violates the principle of unity of command, which states that an employee should receive orders from only one superior to avoid confusion and conflicting instructions.

Division of Work : "Due to increased pressure of work the efficiency of workers declined."

• The increased workload and pressure on workers suggest a lack of effective division of work, leading to decreased efficiency and productivity.

Esprit de Corps (Spirit of Teamwork) : "The spirit of teamwork, which had characterized the company previously, had begun to wane."

• This indicates a decline in the spirit of teamwork among employees, which violates the principle of esprit de corps. This principle emphasizes the importance of fostering harmony and unity among workers to achieve common objectives.

Q. 4. The production manager of Harsh Ltd. instructs a salesman to go slow in selling the product, where the marketing manager is insisting on fast selling to achieve the target.  Which principle of management is being violated in this case?                           (1 mark)

Ans.  Unity of command

Q. 5. Kanika and Priyanka are typists in a company having same educational qualifications.  Kanika is getting Rs. 16000 per month and Priyanka Rs. 10000 per month as salary for the same working hours.  Which principle of management is violated in this case.  (1 mark)

Ans.  Principle of equity

Q. 6. Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other departments.  Which principle of management is being overlooked?                    (1 mark)

Ans.  Principle of Scalar Chain.

Q. 7. The management and workers have entered into an agreement that workers will do overtime to cover up looses of the company.  In return, the manager will increase the wages.  But management later refused to increase the wages.  Name the principle violated in this situation.             (1 mark)

Ans.  Principle of discipline

Q. 8. In Simran Ltd., an employee has the objective of maximizing his salary, but the organizational objective is to maximize output at competitive cost.  There was some dispute on this for a while.  Eventually, the organization’s interest was given priority over employees’ interest.  Name the principle related to this situation.                                       (1 marks)

Ans.  Principle of subordination of individual interest to general interest.

Q. 9. Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing.  She has employed eleven persons in her showroom.  For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.  The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to given any further discount rests with Radhika as the final authority.  In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work.  In return she had promised to give them a special incentive within a year.  Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.  However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees.

In context of the above case:

• Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
• Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
• State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question.
• The various principles of management that are being applied by Radhika are listed below:
• Principle of Division of work:

“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”

• Principle of Centralization and Decentralization:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”

• Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a each bonus to each of these employees to honour her commitment.”

• The principle of management which is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”

• One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

Q. 10. Neeraj is selected for the post of software developer in an IT Company.  On the first day of his joining Mehul, his project manager tells Neeraj that during the course of his work he will come across many such opportunities which may temp him to misuse his powers for individual or family’s benefit at the cost of larger general interest of the company.  In such situations, he should rather exhibit exemplary behavior as it will raise his stature in the eyes of the company.  Also, for interacting with anyone in the company on official matters, he should adopt the formal chain of authority and communication.

• Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
• List any two values that Mehul wants to communicate to Neraj.
• Subordination of Individual Interest to General Interest:
• Scalar Chain:
• Self restraint

Q. 11. Davinder is a class twelfth commerce student in a reputed school in Punjab.  Satinder is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B. Sc course.  During vacations when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic ‘Principles of Management’.  Satinder tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice.  But he finds these principle different from those of pure science.

• Outline the concept of principles of management.
• Why does Satinder find the principle of management different from those of pure science?
• Why do the principles of management form the core of management in practice?

Explain by giving any two points highlighting the importance of principles of management.

• The principles of management serve as a broad and general guideline for the managerial decision making and action.
• Satinder finds the principles of management different from those of pure science because the management principles are not as rigit as principles of pure science.  This is due to the fact that they deal with the human behavior and thus, need to be applied creatively in the light of given situation.
• The importance of principles of management is described below:
• Providing managers with useful insights into reality:
• Optimum utilization of resources and effective administration:

Q. 12. Nutan Tiffin Box service was started in Mumbai by Mumbai dabbawalas.  The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at right time and place.  The service is uninterrupted even on the days of bad weather, political unrest and social disturbances.  Recently they have started online booking system through their website’ mydabbawals.com’.  owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business schools.  The Dabbawals operate in a group of 25-30 people along with a group pleader.  Each group teams up with other groups in order to deliver the tiffin on time.  They are not transferred on frequent basis as they have to remember the addresses of their customers.  They follow certain rules while doing trade-No alcohol during working hours; No leave without permission; Wearing of white cap & carrying ID cards during business hours.

Recently on the suggestion of a few self motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children.  They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later.

• State any one principle of management given by Fayol & one characteristic of management mentioned in the above case.
• Given any two values which the Dabbawalas want to communicate to the society.

Ans.   One principle of management given by Fayol that can be observed in the case of Mumbai dabbawalas is "Unity of Command." This principle states that an employee should receive orders from only one superior to avoid confusion and conflict. In the case of dabbawalas, each group operates under the leadership of a group leader (group pleader), ensuring clear direction and accountability within the group.

One characteristic of management mentioned in the above case is "Adaptability." Despite facing various challenges such as bad weather, political unrest, and social disturbances, the dabbawalas continue to provide uninterrupted service by adapting their strategies and operations to overcome these obstacles.

Two values that the Dabbawalas want to communicate to society are:

1. Social Responsibility : By implementing a plan to feed slum children with leftover food from customers' tiffins, the dabbawalas demonstrate their commitment to addressing social issues and contributing to the welfare of the less fortunate in society.

2. Reliability : The dabbawalas' consistent and efficient delivery service, even in adverse conditions, reflects their value of reliability. They strive to provide prompt and dependable service to their customers, earning their trust and satisfaction.

Q. 13. ‘Aapka vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities.  On its founders day a stage performance had to be put up.  A committee of ten prefects was constituted to plan different aspect of the function.  They all decided to use recycled paper for decoration.  There was a spirit of unit and harmony and all members supported each other.  With mutual trust and belongingness the programme was systematically planned and executed.  Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning and executing the programme.  He was so inspired by the success of the function that he asked his father to apply to same principle in his business.  His father replied that he was already using this principle.

• Identify the principle of management applied for the success of the programme.
• State any two features of management highlighted in the above para.
• Identify any two values which ‘Aapka Vidyalaya’ communicated to the society.

Ans.  The principle of management applied for the success of the program is "Unity of Purpose" or "Unity of Objective." This principle emphasizes the importance of aligning individual and group efforts towards the achievement of common goals.

Two features of management highlighted in the paragraph are:

Teamwork : The committee of prefects demonstrates effective teamwork by collaborating to plan and execute the function. There is a spirit of unity and harmony among the members, and they support each other to achieve their goals.

Systematic Planning and Execution : The program is systematically planned and executed by the committee of prefects. They use recycled paper for decoration, indicating a thoughtful and environmentally conscious approach to organizing the event.

Two values communicated to society by 'Aapka Vidyalaya' are:

Environmental Responsibility : By choosing to use recycled paper for decoration, 'Aapka Vidyalaya' demonstrates its commitment to environmental sustainability and responsibility. This value promotes awareness and action towards protecting the environment.

Holistic Development : 'Aapka Vidyalaya' emphasizes holistic development by encouraging a mix of curricular, co-curricular, and sports activities. This value reflects a commitment to nurturing students' overall growth and well-being, beyond academic achievements alone.

Q. 14. Nikita and Salman completed the MBA and started working in a multinational company at the same level. Both are working hard and are happy with their employer.  Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss.  All the employees in the organization knew about it.  At the time of performance appraisal the performance of Nikita was judged better than Salman.  Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of a higher post.

• Identify and explain the principle of management which was not followed by this multinational company.
• Identify the values which are being ignored quoting the liens the above para.               (5 marks)

Ans.  The principle of management that was not followed by this multinational company is "Impartiality" or "Fairness." This principle emphasizes that decisions and actions should be fair and unbiased, without favoritism or discrimination.

In this scenario, the boss, Mohammed Sharif, decided to promote Salman over Nikita despite Nikita's better performance. The reason cited for promoting Salman, based on gender stereotypes, indicates a lack of impartiality and fairness in the decision-making process. By allowing Salman's negative behavior to influence the promotion decision and discriminating against Nikita based on her gender, the company fails to uphold the principle of impartiality.

The values being ignored in this scenario are:

Fairness and Equality : The company's decision to promote Salman over Nikita based on gender stereotypes disregards the principles of fairness and equality. Nikita's better performance should have been the sole criterion for promotion, irrespective of her gender.

Integrity and Ethical Conduct : Salman's habit of backbiting and wrong reporting about his colleagues indicates a lack of integrity and ethical conduct. By promoting him despite his negative behavior, the company sends a message that unethical conduct is tolerated and even rewarded, undermining the values of integrity and ethical behavior in the workplace.

Q. 15.  Sigma Ltd. is a large company manufacturing electric motors.  The company has several departments – Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company set the target sale of 10 crore in a month.  To increase the sales, the marketing manager, Mr. Ishaan insists on offering 10% discount to customers.  But the finance manager, Mr. Mohak does not approve such discount as it would mean loss of revenue.  Because of dual subordination, the sales manager, Mr. Anshik could not achieve the sales target.

• Which concept of management Sigman Ltd. is lacking?  State it.
• Which principle of management has been overlooked by this company?   State it.
• Which principle of management has been overlooked by this company?  State it.           (6 marks)
• The company is lacking ‘ Coordination ’.

It is the process by which the activities of different departments are synchronized to ensure unity of action.

    2. Concept: Unity of Command

In Sigma Ltd., the absence of "Unity of Command" leads to dual subordination for the sales manager, Mr. Anshik.

Mr. Anshik faces conflicting directives from the marketing manager, Mr. Ishaan, who advocates for offering discounts to boost sales, and the finance manager, Mr. Mohak, who opposes the idea due to potential revenue loss.

This dual subordination hampers Mr. Anshik's ability to effectively achieve the sales target set by the CEO, Mr. Shashank, as he receives contradictory instructions from multiple superiors.

   3. Principle: Unity of Direction

In addition to lacking "Unity of Command," Sigma Ltd. also overlooks the principle of "Unity of Direction."

This principle emphasizes the importance of aligning all activities within the organization towards a common goal or objective.

While the CEO has set a sales target of 10 crore in a month, the conflicting opinions between the marketing manager and the finance manager regarding offering discounts create disunity in direction.

The marketing manager's proposal to offer discounts to increase sales conflicts with the finance manager's concern about potential revenue loss, resulting in a lack of alignment in efforts towards achieving the sales target.

This lack of unity in direction hampers the company's ability to effectively coordinate its actions and resources towards the common goal of achieving the sales target.

Q. 16. ABC Ltd. is engaged in producing electricity from domestic garbage.  There is almost equal division of work and responsibility between workers and management.  The management even takes workers into confidence before taking important decisions.

All the workers are satisfied as the behavior of the management is very good.

• State the principle of management described in the above para.
• Identify any two values which the company wants to communicate to the society.             (3 marks)
• The principle of Taylor described in the above para is Cooperation, Not Individualism.

Values communicated to society by ABC Ltd.:

Employee Empowerment : ABC Ltd. values and promotes employee empowerment by involving workers in decision-making processes and sharing responsibilities equally between workers and management. This communicates a commitment to fostering a sense of ownership and involvement among employees, empowering them to contribute meaningfully to the company's success.

Good Governance and Transparency : The company emphasizes good governance and transparency by taking workers into confidence before making important decisions. This demonstrates a commitment to open communication, trust, and fairness in organizational practices, thereby promoting transparency and accountability in its operations.

Q. 17. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running under heavy losses.

To revive from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost.  The management also asked the workers to work overtime without any additional payment and promised to increased to wages of the workers after achieving its mission.  Within a short period the company started earning profits because both the management and the workers honoured their commitments.

• Identify any two values that the company wants to communicate to the society.           (3 marks)
• The principle of management described in the above para is Discipline.

Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of the organization.

    2. Values communicated to society by Voltech India Ltd.:

Fairness and Social Responsibility : The company demonstrates a commitment to fairness and social responsibility by promising to increase wages for workers after achieving its mission. Despite asking workers to work overtime without additional payment initially, the company fulfills its commitment to reward their efforts once profitability is restored. This communicates a sense of fairness and social responsibility towards its employees, ensuring they are fairly compensated for their contributions.

Ethical Conduct and Integrity : Voltech India Ltd. upholds ethical conduct and integrity by honoring its commitments to both management and workers. The decision to shift the unit to a backward area where labor is available at a low cost may raise questions about ethical labor practices. However, by promising to increase wages after achieving profitability and delivering on that promise, the company demonstrates integrity and ethical conduct, ensuring transparency and trust in its dealings with both management and workers.

Q. 18. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without paying any interest to the organizational objectives.

• Which aspect of management the company is lacking?  What will be its impact on the organization?
• Identify the principle of management which has been overlooked by this organization.
• State any two values neglected by the people of this organization.   (5 marks)

Ans.   Aspect of Management Lacking: Coordination

Impact on the Organization: The lack of coordination among departments in setting their own objectives without aligning them with organizational objectives can lead to inefficiency, duplication of efforts, conflicts, and ultimately hinder the achievement of overall organizational goals. Departments may pursue their own agendas, resulting in disjointed efforts, wasted resources, and decreased overall performance of the organization.

Principle of Management Overlooked: Unity of Direction

Values Neglected by the People of the Organization:

Teamwork and Collaboration : The departments' focus on setting their own objectives without considering organizational goals neglects the value of teamwork and collaboration. Instead of working together towards common objectives, departments may operate in silos, hindering synergy and cooperation within the organization.

Organizational Vision and Mission : By disregarding organizational objectives in favor of departmental goals, the people of Kushal Ltd. neglect the value of aligning individual and departmental efforts with the organization's vision and mission. This lack of alignment can lead to a loss of focus on the overarching purpose and direction of the organization, resulting in fragmented efforts and diminished organizational effectiveness.

Q. 19. Telco Ltd. is manufacturing files and folders from old clothes to discourage use of plastic fields and folders.  For this, they employ people from nearby villages where very less job opportunities are available.  An employee, Harish, designed a plan for cost reduction but it was not welcomed by the production manager.  Another employee gave some suggestion for improvement in design, but it was also not appreciated by the production manager.

• Identify any two values that the company wants to communicate to the society. (3 marks)
• Initiative.  It means eagerness to initiate action without being asked to do so.
• Values which the company wants to communicate to the society are:
• Sensitivity towards the environment
• Creation of job opportunities
• Development of backward regions.

Q. 20. Khandelwal Ltd., a tyre manufacturing concern has been established for more than ten years.  Having made good profits in the past, company wanted to expand further and hence did not declare bonus for the previous year.  The workers got agitated and trade union declared strike and demanded bonus and other facilities.  The management decided not to give into their demands.

• Which principle of scientific management is overlooked in the given case?
• State any two values overlooked/ignored by the management in the above case.
• Harmony, not Discord
• Values overlooked are:
• Mutual understanding
• Peace and stability
• Law and Order
• Sense of belongingness  (any two)

Q. 21. Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials.  He proposes to adopt to logical approach to his business rather than hit and trial method as he knows that this can result in tremendous saving of human energy as well as wastage of time and materials.  He plans to adopt paternalistic style of management in practice in order to avoid any kind of class-conflict that may emerge between him and the workers.  Moreover, he plans to seek the opinion of his workers before taking any important decisions and also offers incentives to them for providing valuable suggestions for the business.

• Identify and explain the various principle of scientific management that Hritik plans to apply in his business.
• List any two values that he wants to communicate to the society by offering eco-friendly packaging material.
• The various principle of scientific management that Hritik plans to apply in his business are described below:
• Science, not Rule of Thumb:
• Harmony, Not Discord:
• Cooperation, Not Individualism:
• The two values that Harit wants to communicate to the society by offering eco-friendly packaging material are:
• Concern for environment
• Sense of responsibility

Q. 22. Gaurika has been appointed as the chief organizer of a weeklong cultural event.  Being a staunch follower of scientific management, she decides to execute her work by putting into practice the various techniques of scientific management.  On the basis of several observations, she is able to determine that the standard time taken by the security officer at the gat to check the credentials of each visitor is 30 seconds.  So she decides to employ two persons on this job for every function along with the other necessary support staff.  She considers the fact that every day, the functions will take place in three shifts of four hours each, therefore it is important to give breaks to the support staff even in a single shift to take her/his lunch etc.  moreover, on introspection, she determines that the best way to distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would help to save time and eliminate any kind of confusion.

In the context of the above case:

• Identify and explain the various techniques of work study which have been put into practice by Gaurika.
• List any two values that Gaurika wants to communicate to the society.
• The various techniques of work study which have been put into practice by Gaurika are outlined below:
• Time Study:
• Fatigue Study:
• Method Study:
• The two values that Gaurika wants to communicate to the society are:
• Optimum utilization of resources
• Concern for employees

Q. 23. ‘Study Buddy Pvt.’ Is company dealing in stationery items. In order to establish standards of excellence and quality in materials and in the performance of men and machines, the company adheres to benchmarks during production.  Moreover, its products are available in limited varieties, sizes and dimensions thereby eliminating superfluous diversity of products.

Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’

Ans.   Technique of scientific management: Standardization

• Establishing benchmarks during production.
• Limiting varieties, sizes, and dimensions of products.
• Consistency in materials and performance.
• Quality control and excellence in production.
• Efficiency in operations.
• Enhanced quality and customer satisfaction.

Q. 24. Tina and Anshu completed their MBA and started working in a multinational company at the same level.  Both are working hard.  Anshu has the habit of backbiting and wrong reporting about his colleagues to impress the boss.  All the employees in the organization know about it.  At the time of performance appraisal also Tina’s performance was rated better than Anshu.  Even then their boss decided to promote Anshu stating that being a female, Tina will not be able to handle the complications of higher post.

• Identify and explain the principle of management that was not followed by this company.
• Identify the values being ignore.
• Company is violating the “Principle of Equity.”
• The values ignored are

                  1.   Gender equality

                  2. eward for performance

                  3. Good human behavior.

Q. 25. In one of his principles, Taylor suggested that job performance should be based on scientific enquiry and not on will/wish or personal intuition of manager?

• Name that principle.
• What values can be followed by using this principle?
• Principle of “Science not rule of thumb.”
• If manager is using this technique he can follow the value of objectivity it as when decisions are taken scientifically he cannot be biased.

Q. 26. 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 note 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.
• State the value which Mr. Hari wants to communicate to the society by allowing rest intervals to workers.
• Fatigue study.
• Value of humanity/sympathy/respect towards employees.

Q. 27. In the staff meeting the principal of the school raised objection that teachers start the teacher after 5 to 10 minutes in third floor classes.  He warned them as students are complaining about this.  The teachers explained the principal that when we climb steps from ground to third floor.  We get some tiredness and need 5 to 10 minutes rest before starting the lecture.  The principal planned to install a lift in school so that teachers do not waste their energy on wasteful activity of climbing steps.

• State the techniques of scientific management used by principal.
• State any other technique of scientific management.
• “Technique of motion study.”
• Other two techniques:
• Functional foremanship
• Time study.

Q. 28. In a factory the toolbox was kept under the table of every worker, whenever worker needs tools he had to bend tape out tool from tool box and keep it back after use.  The newly appointed supervisor observed it and suggested to keep a stool near every worker’s chain where toolbox can he placed so that workers do not waste their energy in bending again and again.

• Which technique of scientific management is used by New Supervisor.
• State the objective of motion study.
• Motion study.
• The objective of motion study is to eliminate unproductive movements of workers.

Q. 29. Mr. Mukesh used to manufacture shoes by employing labour who were easily available.  When his son after completing his MBA joined the business, he analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.

• Which technique of Scientific management is used by his son.
• What is the objective of that technique.
• Method Study
• Finding the best way of doing thing.

Q. 30. Mr. Kapoor, Finance manager of ABC Ltd. applied for leave to attend a family function in Amritsar.  The director of the company  requested him to cancel his leave as there is an important meeting schedule on that date.  Mr. Kapoor immediately agreed and cancelled his trip as he thought attending meeting is more important for company’s benefit.

• Which principle of Fayol is applied by Mr. Kapoor?
• Explain that principle.
• Principle of subordination of individual interest to general interest.
• According to this principle, the interest of organization must supersede the interest of individuals or employees.  In the organization all the employees are working with some objective and there is always an objective of organization.

Q. 31. The manager of ABC Ltd. asked his workers to work overtime to increase the production and earn more but he did not paid extra wages to workers for extra time worked.  The workers started feeling dissatisfied and stop contributing maximum.

• Which principle of Fayol is violated in the above case.
• Explain that principles.
• Principle of Remuneration.
• According to this principle, the interest of organization must supersede the interest of individuals or employees.

Q. 32. Mr. Rajiv is the owner of ‘Laxmi Dairy.’  He is producing various milk products.  He always tests various ways of producing different products and chooses the best and most economical way of production.  He is also very particular about fixing a place for everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production.

• Which technique of scientific management is applied by Mr. Rajiv?
• Which principle of Henry Fayol is followed by him?
• Principle of order

Q. 33. Mr. Rajiv the senior manager of Unique enterprise considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone.  The employees of unique enterprise were not working efficiently and company’s profit margin started declining to tackle the problem, the company appointed a new manager from IIM Bangalore.  The new manager after joining made a policy that all the decisions will be taken after consulting employees in the meeting.  All employees must give some suggestions and best suggestions will be rewarded with financial and nonfinancial incentives.  This policy had a very positive effects on company.

• State the principle of Hencry Fayol used by new manager.
• State the technique of scientific management related to above case.
• Principle of initiative.
• “Cooperation not individualism.”

Q. 34. 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.

• Stat the Principle of Henry Fayol followed by the school principal.
• In case of emergency which concept of Scalar Chain can be used by teacher to pass urgent message directly to principal.
• Scalar Chain.
• Gang-plank.

Q. 35. Pawan is working as a Production Manager in CFL Ltd. which manufactures CFL bulbs.  There is no class-conflict between the management and workers.  The working conditions are very good.  The company is earning huge profits.  As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.

• State the principle of management described in the above paragraph.
• Identify any two values which the company wants to communicate to society.
• The principle of management described in the above paragraph is ‘Harmony, not discord’.
• The two values that the company wants to communicate to the society are:

Q. 36. The principles of Taylor and Fayol are mutually complementary.  On believed that management should share the gains with the workers while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living.

Identify and explain the principles of Fayol and Taylor referred to in the above paragraph.

The principles of Fayol and Taylor referred to in the above paragraph are ‘Remuneration of employees’ and ‘Harmony, Not Discord’.

• Remuneration of Employees:
• Harmony, not Discord:

Q. 37. The principles of Taylor and Fayol are mutually complementary.  One believed that management should not close its ears to constructive suggestions made by the employees while the other suggested that a good company should have an employee suggestion system whereby suggestions which result in substantial time or cost reduction should be rewarded.

Identify and explain the principles of Taylor and Fayol referred to in the above paragraph.

Ans.  The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’.

• Initiative:
• Cooperation and Not Individualism:

Q. 38. Hina and Harish are typists in a company having the same educational qualifications.  Hina gets Rs. 3,000 per month and Harish gets Rs. 4,000 per month as salaries for the same working hours.  Which principle of management is being violated in this case?  Name and explain the principle.

Ans.  The principle of Equity has been violated in this case.  It emphasizes kindliness and justice in the behavior of managers towards workers.  No discrimination should be made by them on the basis of caste, creed, gender or otherwise.

Q. 39. Rajveer works as a plant superintendent in a carpet making factory.  In order to complete the export orders on time, the production manager asks him to make the workers work over time whereas the finance manager is strictly against this practice because it will increase the cost of production.  Moreover, Rajveer feels that since the company is manufacturing handmade carpets as well as machine made carpets there is a lot of overlapping of activities.  Therefore, there should be two separate divisions for both of them wherein each division should have its own in charge, plans and execution resources.

• Identify and explain the principle of management which is being violated.
• Also identify the principle of management that Rajveer feels should be implemented in the factory.
• Give any two differences between the principle of management as identified in part (a) and part (b) respectively.

The principle of management which is being violated in stated below:

• Unity of command:
• Unity of direction:
• The difference between the principle of Unity of Command and Unity of Direction is given below:

Q. 40. Gurpreet is running a retail mart in Varansi to provide various types of products of daily use under one roof to the buyers.  The employee turnover in his business is very high and he is perpetually on a look out for new staff.  The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis without letting them settle down in a specific work.  This approach of his creates a sense of insecurity among the employees and they tend to leave the job very quickly.  However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.

• Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually ona look out for new staff.
• “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.”  Name and explain the relevant principle of management will have been brought into effect by Gurpreet.
• Stability of Personnel;

Also Check at EduRev:   Chapter Notes - Principles Of Management   Learn Principles of the Scientific Management: Overview  

Q. 41. After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail company through the reference of her cousin Taruna who works in the same company as a Senior Manager.  Taruna decides to guide Tanya through her experience by making her aware of the important facts about management in practice.  She tells her that neither the principles of management provide any readymade, straitjacket solutions to all managerial problems nor they are not rigid prescriptions, which have to be followed absolutely.

• Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
• Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems?
• The two features of principles of management mentioned in the above paragraph are as follows:
• General guidelines:
• As the real business situations are very complex and dynamic and are a result of many factors, the principles of management not provide readymade, straitjacket solutions to all managerial problems.

Q. 42. Raj and Simran are both qualified eye surgeons and good friends.  After obtaining a certificate of practice, they decide to persue a career of their own choice.  Raj starts an eye care centre in the city whereas Simran joins a government hospital in a small village.  They meet after a long time in a party.  Raj invites Simran to visit his eye care centre and she accepts his invitation.  She observes at his clinic that there is a fixed place for everything and everyone and it is present there so that there is no hinderance in the activities of the clinic.  Also, Raj always tends to replace ‘I’ will ‘We’ in all his conversations with the staff members.  Later on Raj shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.

• Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
• List any two values that Simran wants to communicate to the society by taking up a job in a village.
• Spirit de Corps:
• Concern for poor

Q. 43. Anshul owns a small scale factory where utility items are prepared from waste material like paper mache items, paper and cloth bags, decorative material etc.  over the past few weeks, he was observing that the productivity of one of his very efficient worker, Ramdas, is going down.  So he decides to probe into the matter and confronts Ramdas one day.  On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient when everybody is being paid at the same rate.  Taking a lesson from this insight, Anshul decides to implement an incentive bonus plan so as differentiate between efficient and inefficient workers.

• Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
• State any two values that Anshul wants to communicate to the society by setting up a special type of business.

Differential Piece wage System is the incentive bonus plan that Ashul may implement so as differentiate between efficient and inefficient workers.

Q. 44. Swaraj is running an office furniture showroom.  Most of his clients are businessmen and they prefer to buy goods on credit.  Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days, while negotiating a deal with a buyer.  On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalize a highly profitable deal for the business.  So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering a credit period of 30 days in the interest of the business.  But swaraj refuses to extend his authority and as a result, the deal is not finalized.

• Can Mr. Bhardwaj be held responsible for loss of the deal?  Why or why not?  Give a suitable reason in support of your answer.
• Also, explain the related principle.
• No, Mr. Bhardwaj cannot be held responsible for loss of the deal in the above case as he was not given the necessary authority to carry out his responsibility.  There is an imbalance in authority and responsibility.
• The name of the related principle is Authority and Responsibility.

Get an overview of Business Finance through this  video. Find NCERT Solutions of Financial Management  here .  

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Case Study Chapter 2 Principles of Management

Please refer to Chapter 2 Principles of Management Case Study Questions with answers provided below. We have provided Case Study Questions for Class 12 Business Studies for all chapters as per CBSE, NCERT and KVS examination guidelines. These case based questions are expected to come in your exams this year. Please practise these case study based Class 12 Business Studies Questions and answers to get more marks in examinations.

Case Study Questions Chapter 2 Principles of Management

Read the source given below and answer the following questions : Taylor suggested that method of production should not be decided by rule of thumb method but all the methods must be tried in the organisation and the one which brings maximum benefits with minimum cost must be selected. To determine the best way there are certain parameters right from procurement of raw materials till the final product is delivered. Taylor developed the concept of assembly line by using method study. The objective of method study is to minimise the cost of production and maximise the quality and customer satisfaction. Ford motors used this concept very successfully.

Questions :

Question. Taylor developed which concept by using method study? (a) Six sigma (b) Assembly line (c) Just in time manufacturing (d) None of the above

Question. As per above para which company used this concept successfully? (a) Nike (b) Adidas (c) Ford (d) Hyundai

Question. The objective of method study is (a) to differentiate between efficient worker and inefficient worker. (b) to maximise production. (c) to minimise cost, maximise production and maximise quality. (d) none of the above

Question. There is only one best method to do a thing is suggested in which scientific principle? (a) Science not rule of thumb (b) Harmony, not discord (c) Cooperation, not individualism (d) Development of workers to their greatest efficiency and prosperity

Read the source given below and answer the following questions. Ram is a class twelfth commerce student in a reputed school in Punjab. Mohan is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B.Sc course. During vacations when Mohan comes home, Ram shows him the businessstudies project that he is preparing on the topic ‘Principles of Management’. Mohan tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principles different from those of pure science.

Question. Management principles are taught in the MBA colleges also. This indicates which aspect of nature of management? (a) Management as Science (b) Management as Art (c) Management as Profession (d) Management as both science and art

Question. Management principles and scientific principles are : (a) Same (b) Different from each other (c) Both (a) and (b) (d) None of the above

Question. Management principles are derived or formed by (a) will and wish of Manager (b) overnight (c) deep observation and repeated experiments (d) none of the above

Question. Outline the feature of Principles of Management highlighted above. (a) Pervasive (b) Contingent (c) Behavioural (d) None of the above

Read the source given below and answer the following questions. Alpha Ltd. was engaged in business of garment manufacturing and selling its products under a popular brand. The demand for their product was increasing. In order to keep the market share in short run, the company directed its existing workforce to work overtime but this resulted in many problems. Due to increasing pressure of work the efficiency of workers declined. Sometimes workers worked under more than one superior. The departments which were producing one product were asked to produce more than one type of products. This resulted in lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of team was also reducing. Workers were feeling cheated and their morale was declining. The quality of garments started declining and market share decreased.

Question. “Workers were feeling cheated and their morale was declining”. This is related to which principle? (a) Principle of Division of Work (b) Principle of Equity (c) Principle of Unity of Command (d) Principle of Initiative

Question. “Departments which were producing one product were asked to produce more than one type of products”. This is violation of which principle? (a) Principle of Discipline (b) Principle of Unity of Direction (c) Principle of Division of Work (d) None of the above

Question. “The spirit of team was also reducing”. This indicates violation of which principle ? (a) Principle of “Espirit De Corps” (b) Principle of Unity of Command (c) Principle of Unity of Direction (d) Principle of Discipline

Question. “Sometimes workers worked under more than one superior.” This is violation of which principle of management? (a) Principle of Discipline (b) Principle of Unity of Command (c) Principle of Unity of Direction (d) Principle of Equity

Read the source given below and answer the following questions : The principles of management are intended for all types of organisations, business as well as non-business, small as well as large, public as well as private sector, manufacturing as well as service sectors. They are not rigid prescriptions , which have to be followed absolutely. They can be modified by the manager as per the prevailing situation. Adherence to these principles adds to managers ’ knowledge, ability and understanding of managerial situations and circumstances. It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly . These principles of management hold great relevance and managers should try to follow them as far as possible . Often certain principles of management are violated and the entire organization suffers. For example, Raman is working as a production manager in CFL Ltd. which manufactures CFL bulbs. His subordinate Arjun designed a plan for cost reduction but it was not welcomed by Raman. Another employee gave some suggestions for improvement in design but it was also not appreciated by Raman. This resulted in dissatisfaction among the employees which further resulted in poor performance of the employees. On the basis of the above paragraph answer the following questions:

Question. ‘It enables managers to learn from past mistakes and conserve time by solving recurring problems quickly’. According to this statement, the principles of management are important because they help in  ………………… (a) Meeting changing environment requirements (b) Optimum utilization of resources and effective administration (c) Providing managers with useful insights into reality (d) Fulfilling social responsibility

Question. As Raman did not welcome the suggestions of other employees, which principle of management is violated by him? (a) Discipline (b) Order (c) Unity of direction (d) Initiative

Question. Identify the nature of principle of management discussed in the given para. (Choose the correct alternative) (a) General guidelines (b) Universal applicability (c) Formed by practice and experimentation (d) Contingent

Question. Identify the nature of management principles when it is said that principles of management can be modified as per the prevailing situation. (Choose the correct) (a) Flexible (b) Contingent (c) Behaviour (d) Absolute

Read the source given below and answer the following questions : Principles of Taylor and Fayol are mutually complimentary. One believed that management should share the gains with the workers, while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Taylor also developed certain techniques of scientific management which aimed at improving the performance of the employees. One of his techniques aimed at differentiating between efficient and inefficient workers. The purpose behind this technique is to reward efficient workers and motivate inefficient workers to perform better. 

Question. Which principle of scientific management advocates complete agreement between the managers and workers? (a) Harmony not discord (b) Cooperation not individualism (c) Science not rule of thumb (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Which principle of Henri Fayol is being referred to in the above paragraph? (Choose the correct alternative) (a) Discipline (b) Order (c) Equality (d) Remuneration of employees

Question. ‘One of his techniques aimed at differentiating between efficient and inefficient workers’. Name the technique of scientific management reflected in the given statement. (Choose the correct alternative) (a) Functional foremanship (b) Method study (c) Differential piece wage system (d) Standardisation and simplification of work

Question. Which principle of scientific management is the extension of the principle ? (Choose the correct alternative) (a) Harmony not discord (b) Cooperation not individualism (c) Science not rule of thumb (d) Development of each and every person to his/her greatest efficiency and prosperity

Read the source given below and answer the following questions : The application of principles of management is dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per the requirements .These principles are logical rather than blind faith. They are based on objective assessment of the situation. Management decision taken on the basis of principles are free from bias and prejudice. Managers often try to apply these principles in various day to day situations. violation of these principles can result in negative consequences in the organization. For example, Sushma and Suresh are working  in a Multinational company at the same level. Both are working hard and are happy with their employer. Suresh had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees knew about it. At the time of performance appraisal, the performance of Sushma was judged better than Suresh. Even then their boss Nikhil decided to promote Suresh stating that being a female Sushma will not be able to handle the complications of a higher post. This resulted in a great deal of dissatisfaction for Sushma. Nikhil gave priority to his own interest over the interest of the organization. Since he personally liked Suresh more than Sushma, hence he promoted Suresh instead of Sushma, ignoring the overall interest of the organization. On the basis of the above paragraph answer the following questions:

Question. “The application of principles of management is dependent upon the prevailing situation at particular point of time”. What is the nature of principles of management that is depicted by the above statement? (Choose the correct alternative)  (a) Universal applicability (b) Flexible (c) Contingent (d) Mainly behavioural

Question. ‘Decisions based on management principles are free from bias and prejudice’. This statement shows which importance of principles of management. (Choose the correct alternative) (a) Scientific decisions (b) Fulfilling social responsibility (c) Providing managers with useful insights into reality (d) Meeting changing environment requirements

Question. ‘Nikhil gave priority to his own interest over the interest of the organisation’. Which one of the following principles have been violated in the given case.  (a) Order (b) Equity (c) Discipline (d) Initiative

Question. Violation of which principle of management prompted Nikhil to further violate the managerial principle identified (a) Division of work. (b) Unity of direction (c) Subordination of individual interest to general interest (d) Centralization and decentralization

Read the source given below and answer the following questions : Sakaar Foundation is an NGO (Non-Government organization) working to improve thelives of children with medical needs, the homeless and victims of natural disasters. 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 numbered 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 a 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 suggestion made by the volunteers. There is an equal division of work and responsibility between volunteers and management. All day long the management works side by side with the volunteers helping ,  encouraging and smoothing the way for them.

Question. _____________ is considered as the father of scientific management. (Fill up the blank with the correct alternative) (a) Peter Drucker (b) F.W.Taylor (c) Henri Fayol (d) Abraham Maslow

Question. Identify the principle of scientific management adopted by Sakaar Foundation in the above case. (Choose the correct alternative)  (a) Science not rule of thumb (b) Cooperation not individualism (c) Harmony not discord (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Which principle of management means “a specific place for everything and everyone” as adopted by Sakaar Foundation? . (Choose the correct alternative) (a) Discipline (b) Order (c) Initiative (d) Scalar chain

Question. Identify the importance of principles of management that can be linked with the given case. (Choose the correct alternative) (a) Fulfilling social responsibility (b) Optimum utilization of resources and effective administration (c) Meeting changing environment requirements (d) Providing managers with useful insights into reality

Read the source given below and answer the following questions : Vishesh completed his MBA at a reputed business school in Lucknow. He was impressed by the principles and techniques of scientific management developed by F.W.Taylor. On completing his MBA, he wanted to apply Scientific Management in his family’s business of fast food chain of restaurants named ‘Burger Mania’. His main goal was to reduce costs with increased output. To begin with, he wanted to develop a standard method which would be followed throughout the organization. So, he investigated traditional methods through work study and unified the best practices. The standard method,i.e., the best way of doing the job was then developed taking into account all parameters right from the procurement of raw materials till the delivery of the final product to the customer. Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency. For this, he set up a special training unit called ‘Hamburger’ in Bengaluru where the workers were given the required training to learn the best method. At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements. The standard time and other parameters were determined on the basis of work study and Vishesh rewarded the workers for meeting the standard output . Now, ‘Burger Mania’ has standardized processes, raw material, time, machinery, trained staff and working conditions that ensure that the food they send out to their customers has the same high standards of excellence and level of quality in every chain or franchise. The application of Scientific Management to every aspect of restaurant operations led to ‘Burger Mania’s’ widespread success.

Question. Identify the principle of Scientific Management that helped Vishesh in investigating the traditional methods through work study and unifying the best practices. (Choose the correct alternative) (a) Science not rule of thumb (b) Method study (c) Harmony not discord (d) Cooperation not individualism

Question. ‘Vishesh also believed that each person should not only be scientifically selected but should also be given the required training to increase efficiency . ’ Identify the principle of Scientific Management mentioned in the given statement. (a) Cooperation not individualism (b) Stability of personnel (c) Harmony not discord (d) Development of each and every person to his/her greatest efficiency and prosperity.

Question. Identify the technique of Scientific Management used by Vishesh to reward the workers for meeting the standard output. (a) Time study (b) Motion study (c) Differential piece system (d) Functional foremanship

Question. ‘At the factory, the ingredients making up a burger were strategically placed to reduce the time taken for excess movements.’ Identify the technique of Scientific Management mentioned in the given statement. (a) Method study (b) Motion Study (c) Standardization and simplification of work (d) Time study

Read the source given below and answer the following questions : Amar is the Managing director in a garment manufacturing company. He is an experienced manager and firmly believes in application of principles of management in day to day managerial situations. He believes that management principles are flexible to adapt to dynamic business environment. He believes in producing more and better work for the same effort. He always hires specialists for various job positions. This results in efficient and effective output. Hence the organization has separate departments for finance, marketing, production and human resource. Being a management expert, Amar believes in the concept of having one and only one boss for every individual employee. He always aims at avoiding dual subordination within the organization. Under his direction and supervision, his company has achieved new heights within a short span of time. As the Managing director, he formulates policies that aims at minimizing employee turnover and maintaining organizational efficiency. Hence his organization selects personnel after due and rigorous procedure, and once a person is selected, he is kept at his post for a minimum fixed tenure. This helps in improving the overall efficiency of the organization.

Question. Identify which importance of principles of management is mentioned here? (a) Providing managers with useful insights into reality (b) Meeting changing environment requirements (c) Fulfilling social responsibility (d) Scientific decisions

Question. ‘He always aims at avoiding dual subordination within the organization’. Name the principle of management that aims at avoiding dual subordination. (a) Order (b) Equity (c) Unity of direction (d) Unity of command

Question. Identify the principle of management that suggests setting up of separate departments for finance, marketing, production etc. within an organization. (a) Discipline (b) Centralization and Decentralisation (c) Division of work (d) Authority and responsibility

Question. “As a Managing Director, he formulates policies that aim at minimizing employee turnover and maintaining organizational efficiency”. Which principle of management Amar is following? (a) Order (b) discipline (c) Equity (d) Stability of personnel

Read the source given below and answer the following questions : After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his /her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount , whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive with in a year. Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. 

Question. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here? (a) Discipline (b) Order (c) Remuneration to Employees (d) Unity of Direction

Question. Aditi tends to be more biased towards her female employees, when it comes to solving the conflicts among employees. Which principle is being violated here? (a) Discipline (b) Order (c) Equity (d) None of these

Question. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here? (a) Centralization and Decentralization (b) Division of work (c) Discipline (d) Order

Question. “The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority”. Identify the principle of Management being followed here: (a) Centralization and Decentralisation (b) Authority and Responsibility (c) Unity of Command (d) Unity of Direction

Read the source given below and answer the following questions : Ramesh is day and night involved in the organizing of his business. He has given job to every employee based upon his capability and experience. As there has been proper division of work and systematic allocation of tasks the productivity is increasing. The size of the company has increased in the recent past. The related activities which are similar in nature are grouped together. Everything was going well in the organisation until recently. The company has recently seen a deficit of exchange of information across functionally different departments. 

Question. Now the related activities which are similar in nature are grouped together. Which step of organising is highlighted in the above case: (a) Identification and division of work (b) Departmentalisation (c) Assignment of duties (d) Establishing authority relationship

Question. The company has recently seen a deficit of exchange of information across functionally different departments. Which one disadvantage of functional structure is highlighted above: (a) Function allocative (b) Conflict of interests (c) Inflexibility (d) Problems in coordination

Question. Which importance of organizing is highlighted in be above case: (a) Optimum utilisation of resources (b) Effective administration (c) Benefits of specialisation (d) Expansion and growth

Question. Identify the type of organisational structure which facilitates occupational specialisation. (a) Functional structure (b) Horizontal structure (c) Network structure (d) Divisional structure

Read the source given below and answer the following questions : Ganesh Leathers is a shoe manufacturing company. The firm has decided to increase the productivity of its workers. For this the firm has chalked out a plan. It will be hiring operational managers to work at the lower levels of management. It has decided to keep eight managers over a group of workers. Thus every worker has to report to all these eight managers. The managing director of the company Mr. Ganesh Tiwari is of the view that the principles of management are guidelines to action but do not provide readymade straitjacket solutions to all managerial problems. This is so because real business situations are very complex and dynamic and are a result of many factors. According to him it is necessary to differentiate between efficient and inefficient workers. Hence, he introduced specific rate of wage payment for those who performed above standard and for those who performed below standard. The basic idea behind is to improve the productivity of all the workers.

Questions : Question. Which technique of scientific management is employed by Ganesh leathers by keeping eight managers. (a) Time study (b) Motion study (c) Functional foremanship (d) Standardisation of work

Question. Which principle of Henri Fayol is followed by the company in the above case. (a) Unity of direction (b) Unity of command (c) Initiative (d) Discipline

Question. Which nature of principles of management is mentioned in the given para. (a) Universal applicability (b) Flexibility (c) General guidelines (d) Contingent

Question. Which technique of scientific management is used by the firm to differentiate between efficient and inefficient workers. (a) Time study (b) Motion study (c) Differential piece rate system (d) method study

Read the source given below and answer the following questions : Care Ltd. is a well known cement company in India. It is able to earn adequate revenues to cover costs. Its capital base, number of employees and production turnover has increased manifolds over the years. The rate of profitability of the business is also creditable. The employees of the company are happy and satisfied. The overall pay and compensation paid by the company is fair to both- employees and the organisation. There is complete cooperation between the workers and management. The spirit of competition has been replaced by the spirit of cooperation within the organisation. As a part of its moral obligation, the company has taken many initiatives for providing employment to specially abled persons and promoting literacy in the rural areas. 

Questions : Question. ‘It is able to earn adequate revenue to cover costs’.the company in the given statement. (a) Growth (b) Survival (c) Profit (d) Diversification

Question. Which importance of management is discussed in the given case. (a) Management increases efficiency (b) Management helps in the development of society (c) Management creates a dynamic organisation (d) Management is an intangible force

Question. Name the principle of Fayol followed by the company in the given case. (a) Discipline (b) Order (c) Remuneration of employees (d) Unity of direction

Question. Which principle of scientific management is followed by the company in the given case: (a) Scientific not rule of thumb (b) Harmony not discord (c) Cooperation not individualism (d) Development of each and every person to his or her greatest efficiency and prosperity.

Read the source given below and answer the following questions : Rajat Joined as a CEO of Bharat Ltd. a firm manufacturing computer hardware. On the first day he addressed the employees. He said that he believed that a good company should have an employee suggestion system and he wished to minimize employee turnover to maintain organisational efficiency. He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with sternly to send the message that everyone was equal in the eyes of management . Also that he would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimize need for using penalties. He told all present that the interests of the organization should take priority over the interests of any one individual employee.

Questions : Question. Identify the principal of management in the following line. “ He said that he believed that a good company should have an employee suggestion system” (a) Unity of command (b) Unity of direction (c) discipline (d) initiative 

Question. Identify the principal of management in the following lines “Which would give rise to a spirit of mutual trust and belongingness among team members. (a) Discipline (b) Unity of command (c) Initiative (d) Esprit de corps. 

Question. Identify the principal of management in following line. “He wished to minimize employee turnover to maintain organizational efficiency.” (a) Stability of personnel (b) Discipline (c) Centralization and Decentralization (d) Remuneration of employees 

Question. Identify the principal of management in the following lines. “He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties.” (a) Initiative (b) Equity (c) Discipline (d) Esprit de corps.

Read the source given below and answer the following questions : Radhika opens a jewellery showroom in Jaipur after completing a course in jewellery designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/ her specialised job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discounts rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked the put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.

Question. Identify the principal of management in the following lines. “Therefore after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. (a) Discipline (b) Initiative (c) Scalar chain (d) Remuneration 

Question. Which principle is violated in the following lines. “However when it comes to setting the conflicts among her employees, She tends to be more biased towards her female employees.” (a) Discipline (b) Equity (c) Division of work (d) Justice 

Question. Identify the principal of management in “She divided the work into small tasks and each employee is trained to perform his/her specialised job” (a) Unity of command (b) Unity of direction (c) Division of work (d) Discipline 

Question. Identify the principal “The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority” (a) Division of work (b) Discipline (c) Initiative (d) Centralisation and decentralisation 

Read the source given below and answer the following questions : As students of a management course Karan and Kunal were asked to prepare a project report on applicability of principles of management in real business situations. In order to conduct the survey Kunal had selected an outlet of a popular chain of fast food restaurant whereas Karan visited a nearby department store. When Kunal presented his report to class, Karan realised that their observations were matching on various grounds. In both the business units, work is divided into small tasks and each is performed by a trained employee. A set of rules are predetermined and communicated to employees for compliance and these is a fixed place for every thing and all employees have been allotted individual space. Moreover, the manager encourage a spirit of mutual trust and belongingness among the employees so that need for imposing penalties is reduced.

Question. Identify the principles of management in the following lines: “There is a fixed place for everything and all employees have been allotted individual space” (a) Unity of direction (b) Order (d) Scalar chain (d) Equity 

Question. Identify the principal of management in the following lines “work is divided into small tasks and each is performed by a trained employee.” (a) Unity of direction (b) Unity of command (c) Division of work (d) Initiativ

Question. Identify the principal of management in following lines “A set of rules are predetermined and communicated to the employees for compliance.” (a) Discipline (b) Scalar chain (c) Unity of command (d) Unity of direction 

Question. Identify the principle of management in the following lines: “Managers encourage a spirit of mutual trust and belongingness among the employees” (a) Unity of command (b) order (c) Equity (d) Esprit de corps 

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PRINCIPLES OF MANAGEMENT Principles of Management: Definition The principles of management serve as broad and general guidelines for the managerial decision making and action.

Types of Principles of Management

• Fayol’s Principles of General Management
• Taylor’s Principles of Scientific Management.

Significance of Principles of Management

• They help to provide managers with useful insights into reality and increase their efficiency in dealing with recurring problems.
• They ensure optimum utilisation of resources as due to the presence of cause and effect relationship the outcome of the decisions and actions can be predicted. Moreover, it leads to effective administration as the principles tend to restrict the personal prejudices and biases.
• They facilitate scientific decision making as they emphasise on logical thinking rather than blind faith.
• They help to meet the changing requirements of the environment to the best advantage ofa organisation.
• They help in fulfilling social responsibility of an organisation.
• They facilitate the process of management training, education and research as they are at the core of management theory.

Features of Principles of Management

• Universal Applicability: The principles of management are deemed to apply to all types and sizes of organizations.
• General Guidelines: The principles are guidelines to action but do not provide readymade, straitjacket solutions to all managerial problems as the real business situations are very complex and dynamic and are a result of many factors.
• Formed by practice and experimentation: The principles of management are formulated by the management experts through observation and tested through repeated experimentation.
• Flexible: The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager in the light of given situation so as to achieve the desired goals.
• Mainly Behavioural: The principles of management aim at influencing behaviour of human beings in a desired manner.
• Cause and effect relationships: The principles of management seek to establish relationship between cause and effect so that they can be used in similar situations in a large number of cases.
• Contingent: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time.

FAYOL’S PRINCIPLES OF MANAGEMENT

• Division of work: The whole organisation work, both managerial and technical, should be divided into smaller jobs and the task involved in doing each such job should be determined. It leads to specialization, speed, efficiency and accuracy of work.
• Discipline: It refers to the obedience to organizational rules and the employment agreement. It is necessary for the systematic working of the organisation. It requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
• Authority and Responsibility: There should always be a balance between the authority given and responsibility entrusted to an employee. This is because if authority is more than responsibility, the employees are likely to misuse it whereas if authority is less than responsibility, he/she will be unable to do the desired work.
• Unity of command: There should be one and only one boss for every individual employee from whom he should receive orders and be responsible to. Dual subordination should be avoided.
• Unity of Direction: All the units of an organisation should be moving towards the same objectives through coordinated and focused efforts. Each group of activities having the same objective must have one head and one plan.
• Subordination of Individual Interest to General Interest: In all the situations, the interests of an organisation should take priority over the interests of any one individual employee .
• Remuneration of employees: The overall pay and compensation should be fair to both employees and the organization. The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time it should be within the paying capacity of the company i.e. remuneration should be just and equitable.
• Centralisation and Decentralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralization. Large organizations have more decentralization than small organizations.
• Scalar Chain: The formal lines of authority along which the communication flows from highest to lowest ranks are known as scalar chain. Gang Plank is a shorter route that has been provided so that communication is not delayed during emergencies. However, the superior has to be informed later on.
• Order: The people and materials must be in suitable places at appropriate time for maximum efficiency i.e. ‘a place for everything (everyone) and everything in its place/
• Equity: It emphasizes kindliness and justice in the behaviour of managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender or otherwise caste, creed.
• Stability of Personnel: The employee turnover should be minimized to maintain organizational efficiency. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation.
• Initiative: Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
• Espirit De Corps: The management should promote a team spirit of unity and harmony among employees. A manager should replace T with ‘We’ in all his conversations with workers.

Difference between Unity of Comman and Unity fo Direction

SCIENTIFIC MANAGEMENT Scientific Management: Definition Scientific Management means knowing exactly what you want your employees to do and seeing that they do it in the best and cheapest way. Fredrick Winslow Taylor is known as the ‘Father of Scientific Management’.

Techniques of Scientific Management

• Time Study is the technique to determine the standard time taken bya worker of average skill and knowledge to complete a standard task.
• Fatigue study seeks to determine the amount and frequency of rest intervals required in completing a task.
• Method study seeks to find out one best way of doing the job.
• Motion study refers to the study of movements of limbs which are undertaken while doing a typical job.This helps to eliminate unnecessary movements so that it takes less time to complete the job efficiently.
• Standardisation refers to the process of setting standards for every business activity Simplification aims at eliminating superfluous varieties, sizes and dimensions of products.
• Instruction Card Clerk: He assigns work to all the employees.
• Route Clerk: He decides how work will progress regarding total productions. So that production is on time.
• Time and Cost Clerk: He determines what will be the total cost and how much time each job take.
• Disciplinarian: He sees that there is discipline at work place.
• Speed boss: He ensures that the work is moving at a suitable pace.
• Gang Boss: He ensures sufficient availability of raw material, tools etc.
• Repair Boss: He sees that whenever some repair is involved in any work, the work is done properly.
• Inspector: He sees that whether the quality of output is good or not.
• Differential piece wage system was introduced to reward efficient workers by paying them at a higher rate than those who performed below standard.

PRINCIPLES OF SCIENTIFIC MANAGEMENT

• Taylor believed that there was only one best method to maximise efficiency which can be developed through study and analysis and should substitute ‘Rule of Thumb’ or hit and trial method throughout the organisation.
• The scientific method involved investigation of traditional methods through work-study unifying the best practices and developing a standard method, which would be followed throughout the organisation.
• In the present context, the use of internet has brought about tremendous improvements in internal efficiencies and customer satisfaction.
• Taylor emphasised that there should be complete harmony between the management and workers instead ofa kind of class-conflict, the managers versus workers.
• To achieve this state, Taylor called for complete mental revolution on the part of both management and workers.
• The prosperity for the employer cannot exist fora long time unless it is accompanied by prosperity for the employees and vice versa.
• He advocated paternalistic style of management should be in practice.
• This principle is an extension of principle of ‘Harmony Not Discord’
• There should be complete cooperation between the labour and the management instead of individualism.
• Competition should be replaced by cooperation and there should be an almost equal division of work and responsibility between workers and management.
• Also, management should reward workers for their suggestions which results in substantial reduction in costs.
• At the same time workers should desist from going on strike and making unreasonable demands on the management
• Taylor was of the view that the concern for efficiency could be built in right from the process of employee selection.
• Each person should be scientifically selected and the work assigned should suit her/his physical, mental and intellectual capabilities.
• To increase efficiency, they should be given the required training.
• Efficient employees would produce more and earn more. This will ensure their greatest efficiency and prosperity for both company and workers.

Difference between Fayol’s and Taylor’s Approach to Management

Latest CBSE Questions

Question 1. Explain ‘unity of command’ and ‘equity’ as principles of general management. (CBSE, Delhi 2017) Answer:

• Unity of command: According to Fayol, there should be one and only one boss for every individual employee. Dual subordination should be avoided. Fayol felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”.
• Equity: According to Fayol, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible.” This principle emphasizes on kindliness and justice in the behaviour of managers towards workers. The managers should not discriminate against anyone on account of gender, religion, language, caste, belief or nationality etc.

Question 2. Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop ‘AromaCoffeeCan’ in a famous mall in New Delhi. The speciality of the coffee ship was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanchit was keen to find out 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. (CBSE, Delhi 2017) Answer: The two techniques of scientific management used by Sandhya to solve the problem are: (any two)

• Time study: It seeks to determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed , frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of task the standard time is fixed for the whole of the task by taking several readings.
• Simplification (Standardisation and Simplification): Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring optimum utilisation of resources.
• Motions which are required
• Motions which are unnecessary
• Motions which are incidental. Thus, motion study helps to eliminate unnecessary movements of a work and enables him to complete the given task efficiently.

Question 3. Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management. (CBSE, Delhi 2017) Answer:

• Discipline: Discipline refers to the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. .

Question 4. Explain ‘order’ and ‘initiative’ as principles of general management. (CBSE, Delhi 2017) Answer:

• Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. A sense of orderliness will lead to increased productivity and efficiency in the organization.

Question 5. Explain briefly ‘Unity of Direction’ and ‘Order’ as principles of general mangement. (CBSE, OD 2017) Answer:

• Unity of direction: According to Fayol, each group of activities having same objective must have one head and one plan. It prevents overlapping of activities. For example if a company is manufacturing handmade carpets as well as machine made carpets there is likely to be a lot of overlapping of activities. Therefore, there should be two separate divisions for both of them wherein each division should have its own in charge, plans and execution resources.

Question 6. Explain briefly ‘Initiative’ and ‘Esprit de Corps’ as principles of general mangement. (CBSE, OD 2017) Answer:

• Initiative: Initiative means taking the first step with self-motivation. The workers should’ be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
• Espirit de corps: According to Fayol, ‘Management should promote a team spirit of unity and harmony among employees.” A manager should replace T with ‘We’ in all his conversations with workers to promote teamwork. This approach is will give rise to a spirit of mutual trust and belongingness among team members. It will also reduce the need for using penalties.

Question 7. Explain briefly ‘Remuneration of Employees’ and ‘Scalar Chain’ as principles of general mangement. (CBSE, OD 2017) Answer:

• Remuneration of employees: According to Fayol, the overall pay and compensation should be fair and equitable to both employees and the organisation. The employees should be paid fair wages so that they are able to maintain at least a reasonable standard of living. At the same time it should be within the paying capacity of the company. This will ensure pleasant working atmosphere and good relations between workers and management.

Question 8. What did Taylor want to communicate through mental revolution? (CBSE, Sample Paper, 2017) Answer: Through the concept of mental revolution Taylor emphasized that there should be complete transformation in the outlook of the management and workers towards each other. Managers should share surplus with workers and the workers should work with full devotion instead of indulging in any form of class conflicts.

Question 9. Briefly explain work study techniques that help in developing standards to be followed throughout the organization. Answer: The various work study techniques that help in developing standards to be followed throughout the organization are described below:

• Time study: It seeks to determine the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of task, the standard time is fixed for the whole of the task by taking several readings.
• Method study: The objective of method study is to find out one best way of doing the job among the various methods available of doing the job. This can be done by taking into consideration several related parameters.
• Fatigue study: It seeks to determine the amount and frequency of rest intervals that should be provided to the workers for completing a task. This technique helps in increasing productivity as the rest intervals will help a person to regain stamina and work again with the same capacity.

Question 10. Nutan Tiffin Box service was started in Mumbai by the Mumbai Dabbawalas. The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at the right time and place. The service is uninterrupted even on the days of bad weather, political unrest and social disturbances. Recently, they have started online booking system through their website ‘mydabbawala.com’. Owing to their tremendous popularity amongst the happy and satisfied customers and members, the Dabbawalas were invited as guest lecturer by top business schools. The Dabbawalas operate in a group of 25-30 people alongwith a group leader. Each group teams up with other groups in order to deliver the tiffins on time. They are not transferred on frequent basis as they have to remember the addresses of their customers. They follow certain rules while doing trade—no alcohol during working hours; no leaves without permission; wearing white caps and carrying ID cards during business hours. Recently, on the suggestion of a few self-motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children. They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later.

• State any one principle of management given by Fayol and one characteristic of management mentioned in the above case.
• Give any two values which the Dabbawalas want to communicated to society. (CBSE, Sample Paper 2016)
• The relevant principle of management given by Fayol is: Stability of Personnel: The employee turnover should be minimized to maintain organizational efficiency. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. (The other correct answers are principle of Discipline / Initiative / Espirit de corps) The characteristic of management mentioned in the above case is: Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals. (The other correct answers are management is intangible/ group activity/dynamic)
• Concern for poor/ Humanity
• Responsibility

Question 11. ‘Aapka Vidyalaya’ believes in the holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities. On its Founder’s Day, a stage performance had to be put up. A committee of ten prefects was constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. There was a spirit of unity and harmony and all the members supported each other. With mutual trust and a sense of belonging, the programme was systematically planned and executed. Kartik, one of the prefects, realised that the group had unknowingly applied one of the principles of management while planning and executing the programme. He was so inspired by the success of this function that he asked his father to apply the same principle in his business. His father replied that he was already using this principle.

• Identify the principle of management applied for the success of the programme.
• State any two features of management highlighted in the above paragraph.
• Identify any two values which ‘Aapka Vidyalaya’ communicated to society. (CBSE, Delhi 2015)
• The principle of management applied for the success of the programme is Espirit De Corps.
• Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
• Management is pervasive as it is applicable to all types of organizations, (economic, social, political) all sizes of organizations (small, medium, large) and at all levels of management (top, middle and lower).
• Sustainable development.

Question 12. Telco Ltd. manufactures files and folders from old clothes to discourage the use of plastic files and folders. For this, they employ people from nearby villages where very less job opportunities are available. An employee, Harish, designed a plan for cost reduction but it was not welcomed by the production manager. Another employee gave some suggestions for improvements in design, but it also was not appreciated by the production manager.

• State the principle of management that is violated in the above paragraph.
• Identify any two values that the company wants to communicate to the society. (CBSE, OD 2014)
• The principle of management that has been violated in the above case is Initiative. Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization.
• Concern for environment
• Providing job opportunities

Question 13. Pawan is working as a Production Manager in CFL Ltd. which manufactures CFL bulbs. There is no class-conflict between the management and workers. The working conditions are very good. The company is earning huge profits. As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.

• State the principle of management described in the above paragraph.
• Identify any two values which the company wants to communicate to society. (CBSE, OD 2014)
• The principle of management described in the above paragraph is ‘Harmony, not Discord’. Taylor emphasised that there should be complete harmony between the management and workers instead of a kind of class-conflict, the manager versus workers. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. The prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa. He advocated paternalistic style of management should be in practice.

Question 14. Voltech India Ltd. is manufacturing LED bulbs to save electricity. However, it is running under heavy losses. To revive from the losses, the management shifts the unit to a backward area where labour is available at a low cost. The management also asks the workers to work overtime without any additional payments and promises to increase the wages of the workers after achieving its mission. Within a short period, the company starts earning profits because both the management and workers honour their commitments.

• Identify any two values that the company wants to communicate to the society. (CBSE, Delhi 2014)
• The principle of management described in the above paragraph is ‘Discipline’. Discipline- It refers to the obedience to organizational rules and the employment agreement. It is necessary for the systematic working of the organization. It requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
• Sustainable development

Question 15. ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work and responsibilities between workers and the management. The management even takes workers into confidence before taking important decisions. All the workers are satisfied as the behaviour of the management is very good.

• Identify any two values which the company wants to communicate to society. (CBSE, Delhi 2014)
• The principle of management described in the above paragraph is ‘Cooperation, Not Individualism’. This principle is an extension of principle of ‘Harmony, Not Discord’. There should be complete cooperation between the labour and the management instead of individualism. Competition should be replaced by cooperation and there should be an almost equal division of work and responsibility between workers and management. Also, management should reward workers for their suggestions which results in substantial reduction in costs. At the same time, workers should desist from going on strike and making unreasonable demands on the management
• Participation

Question 16. The principles of Taylor and Fayol are mutually complementary. One believed that management should share the gains with the workers while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living. Identify and explain the principles of Favol and Taylor referred to in the above paragraph. (CBSE, Delhi 2014) Answer: The principles of Fayol and Toylor referred to in the above paragraph are ‘Remuneration of employees’ and ‘Harmony, Not Discord’. Remuneration of Employes: According to Fayol, the overall pay and compensation should be fair and equitable to both employees and the organisation. The employees should be paid fair wages so that they are able to maintain at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company. This will ensure pleasant working atmosphere and good relations between workers and management. Harmony, Not Discord: Taylor emphasised that there should be complete harmony between the management and workers instead of a kind of class-conflict, the managers versus workers. To achieve this state, Taylor called for complete mental revolution on the part of both management and workers. The prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa. He advocated paternalistic style of management should be in practice

Question 17. The principles of Taylor and Fayol are mutually complementary. One believed that management should not close its ears to constructive suggestions made by the employees while the other suggested that a good company should have an employee suggestion system whereby suggestions which result in substantial time or cost reduction should be rewarded. Identify and explain the principles of Taylor and Fayol referred to in the above paragraph. (CBSE, Delhi 2014) Answer: The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’. Initiative: Initiative means taking the first step with self-motivation. The workers should be encouraged to develop and carry out their plans for improvement. Suggestion system should be adopted in the organization. Cooperation and Not Individualism: This principle is an extension of principle of ‘Harmony, Not Discord’.There should be complete cooperation between the labour and the management instead of individualism. Competition should be replaced by cooperation and there should be an almost equal division of work and responsibility between workers and management. Also, management should reward workers for their suggestions which result in substantial reduction in costs. At the same time, workers should desist from going on strike and making unreasonable demands on the management.

Question 18. Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both of them worked hard and were happy with their employer. Salman had the habit of back-biting and wrong reporting about his colleagues to impress his boss. All the employees in the organisation knew about it. At the time of performance appraisal, the performance of Nikita was judged to be better than Salman. Even then their boss, Mohammed Sharif, decided to promote Salman stating that being a female, Nikita would not be able to handle the complications of a higher post.

• Identify and explain the principle of management which was not followed by this, multinational company.
• Identify the values which are being ignored quoting the lines from the above paragraph. (CBSE, OD 2013)
• The multinational company didn’t follow the Principle of Equity. It emphasizes kindliness and justice in the behaviour of managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender or otherwise.
• Honesty: “Wrong reporting about his colleagues to impress his boss.”
• Justice: “At the time of performance appraisal, the performance of Nikita was judged better than Salman. Even then their boss, Mohammad Sharif, decided to promote Salman.”

Question 19. Hina and Harish are typists in a company having the same educational qualifications. Hina gets Rs.3,000 per month and Harish gets Rs.4,000 per month as salaries for the same working hours. Which principle of management is being violated in this case? Name and explain the principle. (CBSE, Delhi 2006) Answer: The principle of Equity has been violated in this case. It emphasises kindliness and justice in the behaviour of managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender or otherwise.

Additional Questions

Question 1. Radhika opens a jewellry showroom in Jaipur after completing a course in jewellry designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialised job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees. In context of the above case:

• Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
• Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
• State any one effect of the violation of the principle of management by Radhika as identified in part(b) of the question.
• Principle of Division of Work: According to Fayol, “The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use human effort.” He advocates that the principle of division of work is applicable to all kinds of work both technical as well as managerial. “For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialised job.”
• Principle of Centralisation and Decentralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.” “The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”
• Principle of Discipline: Discipline refers to the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. “Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.”
• The principle of management which is being violated by Radhika is Equity. According to Fayol, “Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible.” This principle emphasizes on kindliness and justice in the behaviour of managers towards workers. The managers should not discriminate against anyone on account of gender, religion, language, caste, belief or nationality etc. “However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.”
• One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

Question 2. Rajveer works as a plant superintendent in a carpet making factory. In order to complete the export orders on time, the production manager asks him to make the workers work over time whereas the finance manager is strictly against this practice because it will increase the cost of production. Moreover, Rajveer feels that since the company is manufacturing handmade carpets as well as machine made carpets there is a lot of overlapping of activities. Therefore, there should be two separate divisions for both of them wherein each division should have its own in charge, plans and execution resources. In context of the above case:

• Identify and explain the principle of management which is being violated.
• Also identify the principle of management that Rajveer feels should be implemented in the factory.
• Give any two differences between the principle of management as identified in part (a) and part (b) respectively.

Answer: The principle of management which is being violated is stated below:

• Unity of command: There should be one and only one boss for every individual employee. Dual subordination should be avoided. Fayol felt that if this principle is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”.
• Unity of direction: All the units of an organization should be moving towards the same objectives through coordinated and focused efforts. Each group of activities having the same objective must have one head and one plan. This will lead to unity of action and coordination.

Question 3. Neeraj is selected for the post of software developer in an IT Company. On the first day of his joining Mehul, his project manager tells Neeraj that during the course of his work he will come across many such opportunities which may tempt him to misuse his powers for individual or family’s benefit at the cost of larger general interest of the company. In such situations, he should rather exhibit exemplary behaviour as it will raise his stature in the eyes of the company. Also, for interacting with anyone in the company on official matters, he should adopt the formal chain of authority and communication. In context of the above case:

• Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
• List any two values that Mehul wants to communicate to Neeraj.
• Subordination of Individual Interest to General Interest: Through this principle, Fayol advocates that in all circumstances, the interests of an organisation should take priority over the interests of any one individual employee. This is essential because larger interests of the other employees and the stakeholders i.e., owners, shareholders, creditors, debtors, financers, tax authorities, customers and the society at large cannot be sacrificed for the interest of any one person. For example, Mehul tells Neeraj that he might get tempted to misuse his powers for his or his family’s benefit and so he must display exemplary behaviour to raise his stature in the eyes of the company.
• Self restraint

Question 4. Davinder is a class twelfth commerce student in a reputed school in Punjab. Satinder is his elder brother who is doing his Masters in Hospital Administration from Delhi after completing his B.Sc course. During vacations when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic ‘Principles of Management’. Satinder tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principles different from those of pure science. In context of the above case:

• Outline the concept of principles of management.
• Why does Satinder find the principles of management different from those of pure science?
• Why do the principles of management form the core of management in practice? Explain by giving any two points highlighting the importance of principles of management.
• The principles of management serve as a broad and general guideline for the managerial decision making and action.
• Satinder finds the principles of management different from those of pure science because the management principles are not as rigid as principles of pure science. This is due to the fact that they deal with the human behaviour and thus, need to be applied creatively in the light of given situation.
• Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into real world situations and help them to enrich their knowledge, ability and understanding of the diverse managerial situations and circumstances. It also enables the managers to learn from past mistakes and conserve time by solving recurring problems quickly.
• Optimum utilisation of resources and effective administration: The knowledge of management principles enables the managers to foresee the cause and effect relationships of their decisions and actions. As a result, it leads to optimum utilisation of scarce resources by avoiding wastage associated with a trial-and-error approach. Principles of management limit the boundary of managerial discretion so that their decisions may be free from personal prejudices and biases. This facilitates effective administration within the organisation.

Question 5. Gurpreet is running a retail mart in Varanasi to provide various types of products of daily use under one roof to the buyers. The employee turnover in his business is very high and he is perpetually on a look out for new staff. The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis without letting them settle down in a specific work. This approach of his creates a sense of insecurity among the employees and they tend to leave the job very quickly. However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living. In context of the above case:

• Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually on a look out for new staff.
• “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.” Name and explain the relevant principle of management will has been brought into effect by Gurpreet.
• Stability of Personnel: Stability of personnel is principle of management which Gurpreet is unable to apply and is perpetually on a look out for new staff. According to Fayol, “Employee turnover should be minimised to maintain organisational efficiency”. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation.
• Remuneration of Employees: According to Fayol, the overall pay and compensation should be fair and equitable to both employees and the organisation. The employees should be paid fair wages so that they are able to maintain at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company. This will ensure pleasant working atmosphere and good relations between workers and management.

Question 6. After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail company through the reference of her cousin Taruna who works in the same company as a Senior Manager. Taruna decides to guide Tanya through her experience by making her aware of the important facts about management in practice. She tells her that neither the principles of management provide any readymade, straitjacket solutions to all managerial problems nor they are not rigid prescriptions, which have to be followed absolutely. In context of the above case :

• Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
• Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems?
• General guidelines: The principles of management are guidelines to action. Since the real business situations are very complex and dynamic and are a result of many factors, these principles do not provide readymade, straitjacket solutions to all managerial problems. But the importance of principles cannot be underestimated because even a small guideline may help to solve a given problem.
• Flexibile: The principles of management are not rigid prescriptions which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to decide which principle should be used under what circumstances as individual principles are like different tools serving different purposes.
• As the real business situations are very complex and dynamic and are a result of many factors, the principles of management not provide readymade, straitjacket solutions to all managerial problems.

Question 7. Raj and Simran are both qualified eye surgeons and good friends. After obtaining a certificate of practice, they decide to persue a career of their own choice. Raj starts an eye care centre in the city whereas Simran joins a government hospital in a small village. They meet after a long time in a party. Raj invites Simran to visit his eye care centre and she accepts his invitation. She observes at his clinic that there is a fixed place for everything and everyone and it is present there so that there is no hinderance in the activities pf the clinic. Also, Raj always tends to replace T with ‘We’ in all his conversations with the staff members. Later on Raj shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes. In context of the above case:

• Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
• List any two values that Simran wants to communicate to the society by taking up a job in a village.
• Espirit De Corps: According to Fayol, “Management should promote a team spirit of unity and harmony among employees.” A manager should replace T with ‘We’ in all his conversations with workers to promote teamwork. This approach will give rise to a spirit of mutual trust and belongingness among team members. It will also reduce the need for using penalties.
• Concern for poor

Question 8. Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials. He proposes to adopt a logical approach to his business rather than hit and trial method as he knows that this can result in tremendous saving of human energy as well as wastage of time and materials. He plans to adopt paternalistic style of management in practice in order to avoid any kind of class-conflict that may emerge between him and the workers. Moreover, he plans to seek the opinion of his workers before taking any important decisions and also offers incentives to them for providing valuable suggestions for the business. In context of the above case:

• Identify and explain the various principle of scientific management that Hritik plans to apply in his business.
• List any two values that he wants to communicate to the society by offering eco¬friendly packaging material.
• Science, not Rule of Thumb: Taylor believed that there was only one best method to maximise efficiency and it could be developed through scientific study and analysis. This is because if the managers rely on personal judgment in attending to the work related problems, it may suffer from the limitation of a trial and error approach. Therefore, it is important for them to know what works and why does it work. For this, they should adopt scientific method to substitute the ‘Rule of Thumb or hit and trial method’ throughout the organisation.
• Harmony, Not Discord: In the paternalistic style of management, the employer takes care of the needs of employees like a father. Taylor said that any kind of class conflicts between the workers and the managers were not good; rather they must realise that each one is important. Therefore, he emphasised that there should be complete harmony between the management and workers. To achieve this, Taylor called for complete mental revolution on the part of both management and workers by transforming their thinking. The management should share the gains of the company, if any, with the workers and at the same time, workers should work hard.
• Cooperation, Not Individualism: Through this principle, Taylor suggests that there should be complete cooperation between the workers and the management instead of individualism. This principle is an extension of principle of ‘Harmony, Not Discord’. Both should realise the importance of each other. In order to replace the feeling of competition with cooperation, the management should not close its ears to any constructive suggestions made by the employees. Rather, the workers should be rewarded for any of their valuable suggestions which results in substantial saving in costs. Also, the workers should be taken into confidence by the management whenever any important decisions are to be taken.
• Sense of responsibility

Question 9. ‘Study Buddy Pvt. Ltd.’ is company dealing in stationery items. In order to establish standards of excellence and quality in materials and in the performance of men and machines, the company adheres to benchmarks during production. Moreover, its products are available in limited varieties, sizes and dimensions thereby eliminating superfluous diversity of products. Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’ Answer: Standardisation and Simplification of Work is the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’ Standardisation implies devising new varieties instead of the existing ones. It refers to the process of setting standards for every business activity; it can be standardisation of process, raw material, time, product, machinery, methods or working conditions. These standards are the benchmarks which must be adhered to during production. It helps to reduce a given line or product to fixed types, sizes and characteristics, establish interchange ability of manufactured parts and products, determine standards of excellence and quality in materials and of performance of men and machines. Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also to save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring ‘optimum utilisation of resources. Most large companies like Samsung, Toyota and Microsoft etc. have successfully implemented standardisation and simplification.

Question 10. Anshul owns a small scale factory where utility items are prepared from waste material like paper mache items, paper and cloth bags, decorative material etc. Over the past few weeks, he was observing that the productivity of one of his very efficient worker, Ramdas, is going down. So he decides to probe into the matter and confronts Ramdas one day. On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient when everybody is being paid at the same rate. Taking a lesson from this insight, Anshul decides to implement an incentive bonus plan so as differentiate between efficient and inefficient workers. In context of the above case:

• Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
• State any two values that Anshul wants to communicate to the society by setting up a special type of business.

Answer: Differential Piece Wage System is the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers. Differential Piece Wage System is a performance based wage system which was introduced by Taylor so as to distinguish between the workers who were able to achieve the standard or performed above standard from those who performed below standard. For example, it is determined that standard output per worker per day is 10 units and those who made standard or more than standard will get Rs. 40 per unit and those below will get Rs. 30 per unit. Now an efficient worker making 11 units will get 11 x 40 = Rs. 440 per day whereas a worker who makes 9 units will get 9 x 30 = Rs. 270 per day. According to Taylor, the difference of Rs. 170 should be enough for the inefficient worker to be motivated to perform better.

Question 11. Swaraj is running an office furniture showroom. Most of his clients are businessmen and they prefer to buy goods on credit. Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days, while negotiating a deal with a buyer. On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalise a highly profitable deal for the business. So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering a credit period of 30 days in the interest of the business. But Swaraj refuses to extend his authority and as a result, the deal is not finalized. In context of the above case:

• Can Mr. Bhardwaj be held responsible for loss of the deal? Why or why not ? Give a suitable reason in support of your answer.
• Also, explain the related principle.
• No, Mr. Bhardwaj cannot be held responsible for loss of the deal in the above case as he was not given the necessary authority to carry out his responsibility. There is an imbalance in authority and responsibility.
• The name of the related principle is Authority and Responsibility. Authority is the right to give orders and obtain obedience by the virtue of one’s position in the organization. Responsibility is the obligation of a person to carry out the assigned task to the best of one’s abilities and skills. There are two types of authorities, namely the official authority, which is the authority to command, and personal authority, which is the authority of the individual manager. Authority is both formal and informal. According to Fayol, there should be balance between the authority given and responsibility entrusted to an employee so that he is able to carry out the assigned task. Any kind of imbalance in authority and responsibility is not good for the organisation. If the authority granted to an employee is less than what is required, he will ineffective in doing his work. On the other hand, if the authority delegated to an employee is more than what is required, he may tend to misuse it.

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Class 12th Business Studies - Principles of Management Case Study Questions and Answers 2022 - 2023

By QB365 on 08 Sep, 2022

QB365 provides a detailed and simple solution for every Possible Case Study Questions in Class 12 Business Studies Subject - Principles of Management, CBSE. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.

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Principles of management case study questions with answer key.

12th Standard CBSE

Final Semester - June 2015

Business Studies

After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. 1. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?

2. "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority." Identify the principle of Management being followed here:

3. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?

4. Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?

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Principles of management case study questions with answer key answer keys.

1. (b) Division of work 2. (a) Centralization and Decentralisation  3. (a) Discipline 4. (c) Equity

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Management Case Study with Questions and Answers

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What Are the Most Frequent Questions in Management?

Common questions on marketing management are as follows:

• How to apply the SWOT analysis ideally for the well-being of company X?
• How to apply PESTEL analysis?
• How to do proper market segmentation?
• How to do the best market survey?
• How can you do the best marker positioning of your newly launched product in the market?
• What are the best ways to fix branding?
• How to build up brand loyalty among the target customers?
• How can you apply the BCG matrix?
• How to do the best market forecasting in an ideal way?
• What can you do to utilize the online marketing mode most efficiently?
• How to do intertribal marketing?
• How to achieve benchmarking?
• How can you do brainstorming?
• How to make an outstanding patent or goodwill in a market?
• How to boost up the sales rate with a well-planned market strategy?
• How to set the questionnaires for an effective national as well in the international market survey?
• How to know each requirement and demands of the target customers?
• How to meet exact needs of the customers?
• How to improve the quality of your offered products and services?

The answers to all the questions mentioned above need to be substantiated with relevant practical examples from the current industry. A reputed Case Study Assignment Help online service provider can provide you with the best examples from the current industry.

Typical Questions in Financial Management Are As Follows:

• How to plan for the best budget in favors of company X?
• How to do annual financial forecasting for any company?
• How can you maximize the chances of financial gain and minimize the possibility of financial losses in the future with the help of various useful financial models?
• How to do a financial leveraging?
• How to do a very useful financial auditing?
• What are the best financial models and plans for the benefits of any organization?
• How to withstand financially even amidst an economic slowdown?
• What are the best financial management strategies to strengthen the private as well as public sector banks or financial institutions?

Case study analysis assignment writing can guide you the very best in this respect. He will provide you with the best examples from the current financial industry.

Common Case Study Questions on Human Resource (HR) Management

• How to do the best HR auditing?
• What are the best recruitment tactics by any company?
• How to boost the workforce of any company?
• How to handle attrition rates and headhunting of the top company staff?
• What is the main difference in HR department handling of both government and private sector companies?
• How can you pan the best performance appraisal scheme to motivate the employees?
• How to purpose the most appropriate salary scales for the staffs at various positions?
• How to plan proper incentives and overtime money for the employees?

A trustworthy online case study assignment essays writing service provider can give you an obvious idea on answering all the questions as mentioned above with the top examples. I your case study assignment paper a particular company issue am presented and you are asked to solve it with your own managerial as well as analytical skills. You also need to answer the case study questions in the best way to impress your college faculties.

Common Case Study Questions on Systems Management

Today, the Information Technology (IT) or the solar systems management firms a significant part of the MBA or any other business management course. The application of software is now compulsory in any professional field. A few common questions on systems management are listed below:

• How to apply software for a company’s managerial activities?
• How to make the IT backbone of your company healthy?
• What type of computer operators and software engineers are required for your company?
• How to apply computer software to various departments of your company?
• What types of software tools and technologies are the most applicable to your organization?
• How to handle multiple software technologies for managerial applications?
• How to manage and protect the software from different viruses?

In answering these questions also, you need to give the best examples from the ongoing software industry.

Today, operations management is one of the significant managerial specializations. Some

Common Questions on Operations Management Are As Follows:

• How Operations Management Help in research and development (R and D) department of a company?
• How to reduce the production of defective articles?
• How to build the best use of the Delphi technique?
• How to utilize the best statistical models for various operations management applications?
• How to improve and benchmark the technical advancement of your company with the help of operations management applications?

Relevant examples are to be given from various production industries and firms while answering the case study questions mentioned above. The standards must be true and proper. The answer must be added with the best illustrations. You need to follow specific format and style while writing the answers as guided by your business school. Any plagiarism or copy-pasted content should not be there in your assignment paper. It should too be free of any spelling, grammatical or punctuation errors. If you follow these rules, you can get the highest grades in your case study assignment questions and answer papers as well as sessions.

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• Case Studies

Case Study Basics

What is a case study *.

A case study is a snapshot of an organization or an industry wrestling with a dilemma, written to serve a set of pedagogical objectives. Whether raw or cooked , what distinguishes a pedagogical case study from other writing is that it centers on one or more dilemmas. Rather than take in information passively, a case study invites readers to engage the material in the case to solve the problems presented. Whatever the case structure, the best classroom cases all have these attributes: (1)The case discusses issues that allow for a number of different courses of action – the issues discussed are not “no-brainers,” (2) the case makes the management issues as compelling as possible by providing rich background and detail, and (3) the case invites the creative use of analytical management tools.

Case studies are immensely useful as teaching tools and sources of research ideas. They build a reservoir of subject knowledge and help students develop analytical skills. For the faculty, cases provide unparalleled insights into the continually evolving world of management and may inspire further theoretical inquiry.

There are many case formats. A traditional case study presents a management issue or issues calling for resolution and action. It generally breaks off at a decision point with the manager weighing a number of different options. It puts the student in the decision-maker’s shoes and allows the student to understand the stakes involved. In other instances, a case study is more of a forensic exercise. The operations and history of a company or an industry will be presented without reference to a specific dilemma. The instructor will then ask students to comment on how the organization operates, to look for the key success factors, critical relationships, and underlying sources of value. A written case will pre-package appropriate material for students, while an online case may provide a wider variety of topics in a less linear manner.

Choosing Participants for a Case Study

Many organizations cooperate in case studies out of a desire to contribute to management education. They understand the need for management school professors and students to keep current with practice.

Organizations also cooperate in order to gain exposure in management school classrooms. The increased visibility and knowledge about an organization’s operations and culture can lead to subsidiary benefits such as improved recruiting.

Finally, organizations participate because reading a case about their operations and decision making written by a neutral observer can generate useful insights. A case study preserves a moment in time and chronicles an otherwise hidden history. Managers who visit the classroom to view the case discussion generally find the experience invigorating.

The Final Product

Cases are usually written as narratives that take the reader through the events leading to the decision point, including relevant information on the historical, competitive, legal, technical, and political environment facing the organization. A written case study generally runs from 5,000 to 10,000 words of text supplemented with numerous pages of data exhibits. An online raw case may have less original text, but will require students to extract information from multiple original documents, videos of company leaders discussing the challenges, photographs, and links to articles and websites.

The first time a case is taught represents something of a test run. As students react to the material, plan to revise the case to include additional information or to delete data that does not appear useful. If the organization’s managers attend the class, their responses to student comments and questions may suggest some case revisions as well.

The sponsoring professor will generally write a “teaching note” to give other instructors advice on how to structure classroom discussion and useful bits of analysis that can be included to explicate the issues highlighted in the case study.

Finally, one case may inspire another. Either during the case writing process or after a case is done, a second “B” case might be useful to write that outlines what the organization did or that outlines new challenges faced by the organization after the timeframe of the initial case study.

* Portions of this note are adapted from E. Raymond Corey, “Writing Cases and Teaching Notes,” Harvard Business School case 399-077, with updates to reflect Yale School of Management practices for traditional and raw cases.

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Home » Management Case Studies

Management Case Studies

Management case studies are real-life examples of issues and problems found in particular workplaces or business organisations. Case study assignments give the opportunity to relate theoretical concepts to practical situations. Most case studies are written in such a way that the reader takes the place of the manager whose responsibility is to make decisions to help solve the problem. In almost all case studies, a decision must be made, although that decision might be to leave the situation as it is and do nothing.

Case Study: Starbucks Survival From the Financial Crisis of 2008

The beginning of the economic crisis of 2008 significantly affected all businesses throughout the country, and this event influenced the companies involved in international operations in the first place. For example, Starbucks faced challenges stemming from the emerging hardships expressed by financial losses and wrong strategic choices, deteriorating its overall position in the market. However, the managers’ external circumstances were not the most critical considerations since the existing problems in Starbucks’ activity were added to the new issues. The failure to adhere to the company’s original vision related to providing not simply a product but valuable experiences led to difficulties in overcoming the crisis. From this perspective, the analysis of all conditions as of 2008 is required to demonstrate Starbucks’ capability to survive in the future. The Company During the Economic Crisis of 2008 During the economic crisis of 2008, Starbucks’ managers were reported to struggle with maintaining operations while Continue reading

Case Study: Starbucks Resilient Turnaround Under Howard Schultz in 2008

Founded in 1971 in Seattle, Starbucks had grown to become a respected global brand, present in 50 states in the US and 43 countries. However, its premium pricing was a considerable disadvantage during the economic slowdown. By March 2008, Starbucks had to close 600 underperforming stores, and its profit had plummeted by 28% compared to the same period in 2007. The following year saw another 300 store closures and 6,700 employees laid off. On January 8, 2008, Howard D. Schultz returned as CEO, taking over from Jim Donald. Schultz, who had been with Starbucks since 1982 and previously served as CEO from 1987 to 2000, found that rapid expansion had diverted the company’s focus from creating inviting cafes and developing new products. In 2007, several factors stood behind Starbucks’ decline, among which one might note a loss of human connection. Howard Schultz observed that the company steadily lost its connection Continue reading

Case Study of Coca-Cola: Performance Management System (PMS) and Training

The growth of businesses depends on the strategic plans, goals, values, cultures, and norms implemented within a given institution. Multi-national companies like Coca-Cola have dominated the global markets for the past five decades based on adopting performance management and training principles in running activities since its inception in the beverage industry. The organization has an ongoing process of job clarification and open communications within the workspace, a decision that promotes the productivity of workers and the profitability of the firm at large. Performance management promotes coordination between managers and workers through an open-aided communication approach to achieve organizational objectives. Training employees to align with organizational strategic goals starts with clarifying job responsibilities, workplace expectations, developmental planning, and priority setting. Analyzing the strategies of planning, monitoring, developmental, rating, and rewarding employees at Coca-Cola exposes the impact of performance management systems in improving workers’ performance. The Current System in Coca-Cola Coca-Cola’s management values Continue reading

Case Study of Amazon: Management Information Systems for Business Growth

Globalization can be credited for causing significant alterations in the way business is conducted and the increasingly competitive and constantly changing business environment. In many large corporations, it is not easy to detect strategic issues that confront business operations. It is also difficult to develop sustainable programs that steer organizational success. However, the advent of computers and information technology makes it easy to prepare strategic plans that facilitate the growth and success of companies. An ‘MIS’ is a strategic system that aids in collecting, analyzing, disseminating, and storing organizational data in the mode of information required to implement management functions. Management Information Systems (MIS) are concerned with planning for, development, management, and use of information technology tools to help people perform all tasks related to information processing and management. MIS aids in planning by offering the necessary information that assists in firm decision-making, especially in large organizations where the managers Continue reading

Case Study: Evolution of Advertising Strategies of Procter and Gamble (P&G)

Advertising is an unmistakably unique way of communicating with the target audience that requires a profound understanding of the specific needs of the selected demographic, the specifics of its culture, and a thorough understanding of the issue that the offered service or product seeks to resolve. Though the core purpose, goals, and, ultimately, strategies of advertising a product to a specific demographic have remained the same, consumer culture has changed drastically, which has been reflected in advertising campaigns across decades. Procter & Gamble (P&G) is one of the accurate examples of the specified phenomenon. Specifically, its advertising campaign of P&G demonstrates the shift in consumer culture toward a more frugal lifestyle, while still upholding the status quo in regard to gender roles. The advertisement campaign launched by Procter & Gamble (P&G) in the 1940s reflects the described trends quite accurately. On the one hand, there is an obvious propensity toward Continue reading

Case Study of Starbucks: Influence of Service Quality on Customer Satisfaction

Starbucks Company is a multinational corporation found across the globe, providing high-quality coffee products to its customers worldwide. The organization is an American company whose capital is located in Seattle in Washington DC. The company is very successful and ranks as the best provider of coffee worldwide. This is attributed to how it invented the best experience for customers that transformed their thinking about coffee shops, making them want to use more coffee in their daily lives. The company brags about a very competitive advantage over the rest of the coffee providers across the world. Its brand is regarded as the best, with most coffee drinkers choosing to purchase from Starbucks compared to other providers. The service operations functions for Starbucks are numerous, ranging from the strategic location, quality management, proper management of inventory, and quality designs for services and goods. Service quality management is verifying that the core operations Continue reading

47 case interview examples (from McKinsey, BCG, Bain, etc.)

One of the best ways to prepare for   case interviews  at firms like McKinsey, BCG, or Bain, is by studying case interview examples. 

There are a lot of free sample cases out there, but it's really hard to know where to start. So in this article, we have listed all the best free case examples available, in one place.

The below list of resources includes interactive case interview samples provided by consulting firms, video case interview demonstrations, case books, and materials developed by the team here at IGotAnOffer. Let's continue to the list.

• McKinsey examples
• BCG examples
• Bain examples
• Deloitte examples
• Other firms' examples
• Case books from consulting clubs
• Case interview preparation

Click here to practise 1-on-1 with MBB ex-interviewers

1. mckinsey case interview examples.

• Beautify case interview (McKinsey website)
• Diconsa case interview (McKinsey website)
• Electro-light case interview (McKinsey website)
• GlobaPharm case interview (McKinsey website)
• National Education case interview (McKinsey website)
• Talbot Trucks case interview (McKinsey website)
• Shops Corporation case interview (McKinsey website)
• Conservation Forever case interview (McKinsey website)
• McKinsey case interview guide (by IGotAnOffer)
• Profitability case with ex-McKinsey manager (by IGotAnOffer)
• McKinsey live case interview extract (by IGotAnOffer) - See below

2. BCG case interview examples

• Foods Inc and GenCo case samples  (BCG website)
• Chateau Boomerang written case interview  (BCG website)
• BCG case interview guide (by IGotAnOffer)
• Written cases guide (by IGotAnOffer)
• BCG live case interview with notes (by IGotAnOffer)
• BCG mock case interview with ex-BCG associate director - Public sector case (by IGotAnOffer)
• BCG mock case interview: Revenue problem case (by IGotAnOffer) - See below

3. Bain case interview examples

• CoffeeCo practice case (Bain website)
• FashionCo practice case (Bain website)
• Associate Consultant mock interview video (Bain website)
• Consultant mock interview video (Bain website)
• Written case interview tips (Bain website)
• Bain case interview guide   (by IGotAnOffer)
• Digital transformation case with ex-Bain consultant
• Bain case mock interview with ex-Bain manager (below)

4. Deloitte case interview examples

• Engagement Strategy practice case (Deloitte website)
• Recreation Unlimited practice case (Deloitte website)
• Strategic Vision practice case (Deloitte website)
• Retail Strategy practice case  (Deloitte website)
• Finance Strategy practice case  (Deloitte website)
• Talent Management practice case (Deloitte website)
• Enterprise Resource Management practice case (Deloitte website)
• Footloose written case  (by Deloitte)
• Deloitte case interview guide (by IGotAnOffer)

5. Accenture case interview examples

• Case interview workbook (by Accenture)
• Accenture case interview guide (by IGotAnOffer)

6. OC&C case interview examples

• Leisure Club case example (by OC&C)
• Imported Spirits case example (by OC&C)

7. Oliver Wyman case interview examples

• Wumbleworld case sample (Oliver Wyman website)
• Aqualine case sample (Oliver Wyman website)
• Oliver Wyman case interview guide (by IGotAnOffer)

8. A.T. Kearney case interview examples

• Promotion planning case question (A.T. Kearney website)
• Consulting case book and examples (by A.T. Kearney)
• AT Kearney case interview guide (by IGotAnOffer)

9. Strategy& / PWC case interview examples

• Presentation overview with sample questions (by Strategy& / PWC)
• Strategy& / PWC case interview guide (by IGotAnOffer)

10. L.E.K. Consulting case interview examples

• Case interview example video walkthrough   (L.E.K. website)
• Market sizing case example video walkthrough  (L.E.K. website)

11. Roland Berger case interview examples

• Transit oriented development case webinar part 1  (Roland Berger website)
• Transit oriented development case webinar part 2   (Roland Berger website)
• 3D printed hip implants case webinar part 1   (Roland Berger website)
• 3D printed hip implants case webinar part 2   (Roland Berger website)
• Roland Berger case interview guide   (by IGotAnOffer)

12. Capital One case interview examples

• Case interview example video walkthrough  (Capital One website)
• Capital One case interview guide (by IGotAnOffer)

12. EY Parthenon case interview examples

• Candidate-led case example with feedback (by IGotAnOffer)

14. Consulting clubs case interview examples

• Berkeley case book (2006)
• Columbia case book (2006)
• Darden case book (2012)
• Darden case book (2018)
• Duke case book (2010)
• Duke case book (2014)
• ESADE case book (2011)
• Goizueta case book (2006)
• Illinois case book (2015)
• LBS case book (2006)
• MIT case book (2001)
• Notre Dame case book (2017)
• Ross case book (2010)
• Wharton case book (2010)

Practice with experts

Using case interview examples is a key part of your interview preparation, but it isn’t enough.

At some point you’ll want to practise with friends or family who can give some useful feedback. However, if you really want the best possible preparation for your case interview, you'll also want to work with ex-consultants who have experience running interviews at McKinsey, Bain, BCG, etc.

If you know anyone who fits that description, fantastic! But for most of us, it's tough to find the right connections to make this happen. And it might also be difficult to practice multiple hours with that person unless you know them really well.

Here's the good news. We've already made the connections for you. We’ve created a coaching service where you can do mock case interviews 1-on-1 with ex-interviewers from MBB firms . Start scheduling sessions today!

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• MCQs – Chapter- Marketing Management – Part-3

Case Studies- Principles of Management

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CASE STUDIES- PRINCIPLES OF MANAGEMENT

This case study is hand picked original case study. It is created keeping in mind CBSE 10+2 CBSE Students. Many students get benifit out of it. You will find these in form of simple questions and answers.

Q1: Anshul a commerce student visited a hospital . He observed that in hospital to treat different type of disease there is a separate department and each department is lead by dean of that respective department who is expert in that particular field having knowledge , training and experience of that particular area only. He could relate it to one of the principle of management. Identify and explain.

Q2; Harshita , a sales manager has to negotiate a deal with a buyer. She finds that if she can offer credit period of 60 days she is likely to clinch the deal which is supposed to fetch the company a net margin of Rs. !,00,000 . Now the company gives power to the manager to offer a credit period of 40 days due to which she could not get the deal. Identify the principle of management violated above.

Q3; In Ashu limited Management and labour union entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished But afterwards management refused to fulfill its commitment. Identify the principle of management violated by the management of Ashu Ltd. .

Q4; Akshit a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by marketing manager. But finance department tells him not to offer more than 5% discount. Due to which Akshit is confused. Which principle of management is violated?  Identify.

Q5; Stuti Industries is engaged in manufacturing Cars and Motorbikes. It has two separate departments for both the products. Each department has its own Incharge , plans and execution resources which leads to focused efforts of all the employees. Identify the principle of management followed by Stuti Industries.

Q6;  Udhay is working as Plant superintendent in Tanish Industries. But he is given a salary of a clerk as his compensation.  Which act as a demotivator for udhay and he does not feel like working whole heartedly for the company. Identify the principle of management violated in Tanish Limited.

Q7; Amita and Shamita are working as  typist in Ashiana Ltd. . But Amita is paid salary of Rs. 4,000 pm and Shamita is apid salary of Rs. 5,000 pm. After knowing this Amita got discouraged and started thinking of shifting the job. Which principle of Fayol is violated in above case?

Q8; Rajeev joined Anamika Ltd. As training manager . After joining he observed that employees are lacking the feeling of belongingness with the organization. To encourage the feeling of beloningingness and self motivation he decided to apply one of the principle of fayol and started employee suggestion system whereby employees are encouraged to give suggestion and whereby suggestions which result in substantial cost/ time reductions will be rewarded. Identify the principle.

Q9; In Tanya Ltd, there is discord among all the employees due which objectives are not realized and there  is no coordination among employees . there is no mutual trust and belongingness among employees . So managers have to apply penalities on employees which further increases the inefficiency. What do you is wrong with above organization . Give your answer in respect to Principle of Fayol.

Q10; In Ayesha Ltd. Losses are pouring in. So for their rescue Vishal CEO of the company decided to  hire  Aryan the cost control expert at higher salary . Maximum of the directors opposed the decision of hiring  Aryan in company’s crisis period when company is already going into losses. After taking charge of the Job Aryan advised the company to eliminate superfluous varities , sizes and dimensions . because these are the reason for undue high cost Expenditures . Which concept of principle of management is applied above.

Q11; In Model Motor Company For designing a car the assembly line production is entailed which decided the sequence od operations, place for men, machines and raw material etc. This exercise helped in minimizing the cost of production and maximize the quality of products. Identify the concept in relation to scientific management in the above case which is the reason for minimizing cost.

Q12;  On the basis of several observations it is determined that one worker can make one cardboard in 2o minutes. So in one hour he will make 3 boxes. Assuming that a worker has to put in 8 hours of work in a shift and deducting    one hour for rest and lunch, it is determined that in 7 hours a worker makes 21 boxes @ 3 boxes per hour. Now this is the standard  task workers have to do . Wages are decided accordingly. The base of above technique is one of the technique of F.W. Taylor. Identify that technique.

Q13; It si determined that standard output per worker per day is 10 units and those who made standard or mopre than standard will get Rs. 50 per unit and those below will get Rs. 40 per unit. Now an efficient worker making 11 units will get Rs. 11x 50= Rs. 550 per day whereas a worker who produces 9 units will get 9×40= Rs. 360 per day. This example is concerned with one of the technique of scientific management whose objective  is to encourage the inefficient workers to work harder. KIdentify the gtechnique.

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principles of management case study questions and answers for mba

inciples of management highlighted above are:1. Pro. iding managers with useful insight into reality. The organisation teaches various management principles to the managers whenever required so that they can apply them and understan. t. e practical aspects of business through them.2. Optimum utili.

Principles of Management case study questions and answers nature and significance of management mark questions mega ltd manufactured water heaters. in the first ... Mr. Singhania should send his son to USA for his MBA because management is being recognized as a profession to a great extent because of the following reasons: a) Well defined body ...

Prepare for B-school admission rounds, with these MBA case study examples. It is common for B-schools to incorporate a case-based discussion in the group exercise round or give a case study in a personal interview. So, here we have presented two popular MBA case study examples, with analysis and solution.

B. False, Functions of management are not related with Principles of Management. C. Partly True, Principles denotes cause and effect relationship which may help functions. D. False, Functions of management are just actions. Answer» A. True, Principles are guidelines to take actions. discuss. 6.

As a student of business studies, you are expected to learn about the various aspects of management, such as planning, organizing, staffing, directing, and controlling. Case studies are an essential part of the Class 12 Business Studies curriculum as they provide students with an opportunity to apply theoretical knowledge to practical situations.

Abstract. This working paper reports on a major Harvard Business School project designed to enhance MBA and practicing executives in case learning. The work is built on the foundation of HBS field cases employing the monomyth "hero's journey" classic story structure along with the creation of associated fictional case characters designed ...

All of the following are associated with quality management. The basic steps in ________ are: (1. establishing performance objectives and standards, (2. measuring actual performance, (3. comparing actual performance to objectives and standards, and (4. taking any necessary action.

assignment ombc 101 principles practices of management assignment instructions number of questions 20 maximum marks 20 each question carries mark. all questions. ... Read the following case study and answer questions. ... MBA hospital management 1 semester noters and mcqs; 6960-Article Text-13671-1-10-20210306;

Identify the principle of management in the following lines: "Managers encourage a spirit of mutual trust and belongingness among the employees". (a) Unity of command. (b) order. (c) Equity. (d) Esprit de corps. Answer. Please refer to Chapter 2 Principles of Management Case Study Questions with answers provided below.

Attempt the Case study questions. Consider attempting the case study as a group exercise; you could form a study group with fellow students. 3. Check the suggested answers - remember these are suggestions only and there are often many possible answers. Discuss questions and answers with other students.

Two cases about Hertz claimed top spots in 2021's Top 40 Most Popular Case Studies. Two cases on the uses of debt and equity at Hertz claimed top spots in the CRDT's (Case Research and Development Team) 2021 top 40 review of cases. Hertz (A) took the top spot. The case details the financial structure of the rental car company through the end ...

of management of those periods. However, the study of management in a systematic way as a distinct body of knowledge is only of recent origin. That is why, management is often described as "oldest of the arts and youngest of the sciences". Thus, the practice of management is not new. It has been practiced for thousands of years.

Master of Science in Management Studies. Combine an international MBA with a deep dive into management science. A special opportunity for partner and affiliate schools only. ... Teaching Resources Library Management Principles and the Washington, DC Public Schools (A): Choosing a Chancellor. Teaching Resources Library Mud Bay's Good Jobs Journey.

Writing case studies is an essential part of management. Various graduations, as well as post graduation degree courses, is offered on multiple managerial stream and specializations. The questions and answers are an essential part of the case study. There can be different sets of questions and answers for different management specializations. You need to prepare

Welcome to the Case Library, Management Consulted's repository of over 600 cases, organized by firm, difficulty, and subject matter. Right now, you're looking at the Limited Case Library, a free version that lets users see one whole case and preview another. If you should have access to the whole course, but are seeing this page, please log ...

A traditional case study presents a management issue or issues calling for resolution and action. It generally breaks off at a decision point with the manager weighing a number of different options. It puts the student in the decision-maker's shoes and allows the student to understand the stakes involved. In other instances, a case study is ...

The principle of order states that 'A place for everything (everyone) and everything (everyone) in its (her/his) place'. A sense of orderliness will lead to increased productivity and efficiency in the organization. Question 6. Explain briefly 'Initiative' and 'Esprit de Corps' as principles of general mangement.

These case studies offer a practical application of management concepts, requiring students to analyze complex scenarios and devise solutions. In this comprehensive guide, we will outline a step-by-step approach to solving management case studies and provide a real-world example with a solution. Step 1: Comprehensive Case Study Analysis.

Identify the principle of Management being followed here: (a) Centralization and Decentralisation. (b) Authority and Responsibility. (c) Unity of Command. (d) Unity of Direction. 3. "Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.".

C ase Study Accountancy Class 12 Principles of Management Case Study. Read the following text and answer the following questions on the basis of the same: After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata.

Management principles are the guidelines for decision-making and behaviour (in present as well as future) for the whole organisation. They are general, broad and flexible in nature. Techniques are sequential in nature, rigid and are like procedures. Scientific principles are rigid, have universal validity and are unchangeable in nature.

Management case studies are real-life examples of issues and problems found in particular workplaces or business organisations. Case study assignments give the opportunity to relate theoretical concepts to practical situations. Most case studies are written in such a way that the reader takes the place of the manager whose responsibility is to make decisions to help solve the problem. In ...