CHAPTER2.

PRINCIPLES OF MANAGEMENT
CONCEPT

• A managerial principle is a broad and general guideline for decision making

and behaviour.
• Management principles are not as rigid as principles of pure science.
• They deal with human behaviour and, thus, are to be applied creatively
given the demands of the situation.
• Principles are guidelines to take decisions or actions while practicing
techniques.
• Values are general rules for behaviour of individual.

NATURE OF PRINCIPLES OF MANAGEMENT

(i) Universal applicability: Apply to all types of organisations, business as well

as non-business, small as well large, public sector as well as private
sector, manufacturing as well as the services sectors.
(ii) General guidelines: Principles are guidelines to action but do not provide
readymade, straitjacket solutions to all managerial problems.
(iii) Formed by practice and experimentation: Formed by experience and
collective wisdom of managers as well as experimentation.
(iv) Flexibile: They are flexible and can be modified by the manager when the
situation so demands.
(v) Mainly behavioural: Can influence the behaviour of human beings &
enable a better understanding of the relationship between human and
material resources.
(vi) Cause and effect relationships: They tell us if a particular principle was
applied in a particular situation, what would be its likely effect. Accurate
cause and effect relationships may be difficult to establish.
(vii) Contingent: The application dependent upon the prevailing situation at a
particular point of time.

SIGNIFICANCE OF PRINCIPLES OF MANAGEMENT

(i) Providing managers with useful insights into reality: Adherence to these principles
will add to their knowledge, ability and understanding of managerial situations and
circumstances.
(iii) Scientific decisions: Decisions are logical rather than blind faith, free from bias
and prejudice, based on the objective assessment of the situation etc.
(iv) Meeting changing environment requirements: Help managers to meet changing
requirements of the environment. Companies are specialising in their core
competency and divesting non-core businesses.

(v) Fulfilling social responsibility: The increased awareness of the public, forces
businesses especially limited companies to fulfill their social responsibilities.
(vi) Management training, education and research: Principles are used as a basis for
management training, education and research.

TAYLOR’S SCIENTIFIC MANAGEMENT

 • The other two streams belonging to the classical school are Fayol’s
Administrative Theory and Max Weber’s Bureaucracy.
• Fredrick Winslow Taylor (March 20,1856 – March 21, 1915)
• Was an American mechanical engineer.
• ‘one best way’ to do the work.
• most remembered for his time and motion studies.
• wanted that workers should cooperate with the management and thus there
would be no need of trade unions.
• ‘The Principles of Scientific Management’ published in 1911
• selected as the president of the American Society of Mechanical Engineers
(ASME) from 1906 to 1907.
• 1884 he became an executive at Midvale Steel Company by demonstrating
his leadership abilities.
• He died in 1915 due to pneumonia.

PRINCIPLES OF SCIENTIFIC MANAGEMENT

• Taylor emerged as the ‘Father of Scientific Management’. He proposed

scientific management as opposed to rule of thumb.
• Scientific management means knowing exactly what you want men to do and
seeing that they do it in the best and cheapest way.

(i) Science not Rule of Thumb: Taylor believed that there was only one best method to
maximise efficiency. This method can be developed through study and analysis. The
method so developed should substitute ‘Rule of Thumb’.

(ii) Harmony, Not Discord:

• Managers served as a link between the owners and the workers.
• Complete mental revolution on the part of both management and workers.
• Trade unions will not think of going on strike etc.
• Management should share the gains with the workers.
• Workers should work hard and difficult.
• Conflict helped none, the workers, the managers or the factory owners.
• Prosperity for the employer cannot exist for a long time unless it is
accompanied by prosperity for the employees.

(iii) Cooperation, Not Individualism:

• It is an extension of principle of ‘Harmony not discord’.
• Competition should be replaced by cooperation. Both should realise that
they need each other.
• Suggestions made by the employees should be welcome & rewarded.
• Open communication system
• Paternalistic style of management,
• equal division of work and responsibility between workers and management.

(iv) Development of Each and Every

Person to His or Her Greatest
Efficiency and Prosperity:
• Industrial efficiency depends to a large extent on personnel competencies. .
• Worker training was essential to learn the ‘best method’.
• Person should be scientifically selected, work assigned should suit his
physical, mental and intellectual capabilities.
• Efficient employees would produce more & earn more.
TECHIQUES OF SCIENTIFIC MANAGEMENT

1. Functional Foremanship
• He concentrated on improving the performance of foreman.
• Separation of planning and execution functions.
• Extended to the lowest level of the shop floor.
• Planning incharge : instruction card clerk, route clerk, time and cost clerk
and a disciplinarian.
• Production incharge : speed boss, gang boss, repair boss, and inspector.
• Functional foremanship is an extension of the principle of division of work
and specialisation.

Standardisation & Simplification of Work

• Standardisation 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.
• Objectives are to reduce line of product, to establish interchange ability,
quality in materials & performance.
• Simplification aims at eliminating superfluous varieties, sizes and
dimensions.
• Aims at eliminating unnecessary diversity of products. It results in savings
of cost of

Method Study
• Objective is to find out one best way of doing the job.
• Right from procurement of raw materials till the final product is delivered to
the customer every activity is part of method study.

Motion Study
• Refers to the study of movements like lifting, putting objects, sitting and
changing positions, etc.,
• Unnecessary movements are sought to be eliminated so that it takes less
time to complete the job efficiently.

Time Study
• Determines the standard time taken to perform a well-defined job.
• Depend upon volume and frequency of the task, the cycle time of the
operation and time measurement costs.
• Objective is to determine the number of workers to be employed; frame
suitable incentive schemes and determine labour costs.

Fatigue Study
• To determine the amount and frequency of rest intervals in completing a
task.
• Help to regain stamina & work again with the same capacity.

Differential Piece Wage System

• Wanted to differentiate between efficient and inefficient work.
• Wage rate should be different for those who performed above standard and
for those who performed below standard.
Mental revolution
• Involves a change in the attitude of workers and management towards one
another from competition to cooperation.
• Management should share a part of surplus with workers.
• Workers should also contribute their might so that the company makes
profits.
• In the long run only worker’s well-being will ensure prosperity of the
business.

FAYOL’S PRINCIPLES OF MANAGEMENT

• 1841-1925
• He was a mining engineer.
• He was the first to identify four functions of management – Planning,
Organising, Directing and Controlling although his version was a bit
different – Plan, Organise, Command, Coordinate and Control.
• All activities of an industry could be divided: Technical; Commercial;
Financial; Security; Accounting and Managerial.
• Book published in 1917, ‘Administration industrielle et generale’. It was
published in English as ‘General and Industrial Management’ in 1949.
• Father of General Management.
(i) Division of Work:
• Work is divided into small tasks.
• Division of work leads to specialisation.
• Work can be performed more efficiently if it is divided into specialised tasks;
each performed by a specialist or trained employee.
(ii) Authority and Responsibility:
• Authority is the right to give orders and obtain obedience, and responsibility
is the corollary of authority.
• There should be a balance between authority and responsibility. An

(iii) Discipline:
• Discipline is the obedience to organisational rules and employment
agreement which are necessary for the working of the organisation.
• It requires good superiors at all levels, clear and fair agreements and
judicious application of penalties.
• The workers and management both honour their commitments without any
prejudice towards one another.

(iv) Unity of Command:

• One and only one boss for every individual employee.
• Each participant in a formal organisation should receive orders from and be
responsible to only one superior.
• If this principle is violated “authority is undermined, discipline is in
jeopardy, order disturbed and stability threatened”.
• The principle resembles military organisation.

(v) Unity of Direction:

• Each group of activities having the same objective must have one head and
one plan.
• Each division should have its own incharge, plans and execution resources. .
(vi) Subordination of Individual Interest to General Interest:
• The interests of an organisation should take priority over the interests of any
one individual employee.
• This is so because larger interests of the workers and stakeholders are more
important than the interest of any one person.

(vii) Remuneration of Employees:

• The overall pay and compensation should be fair to both employees and the
organisation.
• Fair wages, which should give them at least a reasonable standard of
livening.
• It should be within the paying capacity of the company.
• Remuneration should be just and equitable.

(viii) Centralisation and Decentralisation:

• The concentration of decision-making authority is called centralisation
whereas its dispersal among more than one person is known as
decentralisation.
• There is a need to balance subordinate involvement through decentralisation
with managers’ retention of final authority through centralisation.
• It will depend upon the circumstances in which the company is working.

(ix) Scalar Chain:

• The formal lines of authority from highest to lowest ranks are known as
scalar chain.
• Organisations should have a chain of authority and communication that
runs from top to bottom and should be followed by managers and the
subordinates.”
• If there is an emergency then directly contact through ‘Gang Plank’

(x) Order:
• People and materials must be in suitable places at appropriate time for
maximum efficiency.
• It means orderliness.

(xi) Equity:
• Good sense and experience are needed to ensure fairness to all employees,
who should be treated as fairly as possible.
• kindliness and justice in the behaviour of managers towards workers.
• Does not rule out use of force sometimes.
• Lazy personnel should be dealt with sternly to send the message that
everyone is equal in the eyes of the management.
• No discrimination against anyone on account of sex, religion, language,
caste, belief or nationality etc.

(xii) Stability of Personnel:

• Employee turnover should be minimised to maintain organisational
efficiency.
• Personnel should be selectedafter due and rigorous procedure. But once
selected they should be kept at their position for a minimum fixed tenure.
 (xiii) Initative:
• Workers should be encouraged to develop and carry out their plans.
• Initiative means taking the first step with self-motivation.
• A good company should have an employee suggestion system with reward.

(xiv) Esprit De Corps:

• Should promote a team spirit of unity and harmony among employees.
• Should replace ‘I’ with ‘We’ in all
• Spirit of mutual trust and belongingness among team members.

CONCEPT

Q1. A managerial principle is a broad and general __________ for decision making and
behaviour.
(a) Advice
(b) Guideline
(c) Suggestion
(d) Rule

Q2. Management principles are not as ______________ as principles of pure science.

(a) Rigid
(b) Flexible
(c) Accepted
(d) Ignored
Q3. ________________ are procedures or methods, which involve a series of steps to be
taken to accomplish desired goals.
(a) Principles
(b) Values
(c) Techniques
(d) (a) & (c) both

Q4. _____________________ are guidelines to take decisions or actions while practicing

______________________.
(a) Rules; principles
(b) Principles; techniques
(c) Rules; techniques
(d) Values; techniques
Q5. _____________ are something, which are acceptable or desirable. They have moral
connotations.
(a) Principles
(b) Values
(c) Techniques
(d) Rules
Q6. ______________ are general rules for behaviour of individuals in society formed
through common practice whereas ________________________ are formed after research in
work situations, which are technical in nature.
(a) Rules; principles
(b) Principles; techniques
(c) Rules; techniques
 (d) Values; principles of management

Q7.While practicing principles of management values cannot be neglected

(a) As businesses have to fulfil social and ethical responsibilities towards society.
(b) As values increases efficiency of the management
(c) As they are moral connotations.
(d) As business is the part of society.

Q8. Derivation of the principles may be said to be a matter of ____________ and their
creative application may be regarded as an ________________.
(a) Art; science
(b) Science; art
(c) Science; profession
(d) Art; profession

Q9. Principles are general propositions, which are applicable when

(a) Certain changes take place.
(b) Certain problems arises
(c) Certain conditions are present.
(d) Certain

Q10. Principles have been developed on the basis of observation

and experimentation as well as ________________________ of the managers.
(a) Personal Qualification
(b) Personal aptitude
(c) Personal attitude
(d) Personal experiences

• NATURE OF PRINCIPLES OF MANAGEMENT

Q. Principle of management is NOT:

(a) Universal
(b) Flexible
(c) Absolute
(d) Behavioural

Q11.Principle is applicable to a government office, a public company, a limited company

where there are separate departments like Production, Finance, Marketing and Research and
Development etc. Identify the nature of principles of management.
(a) Flexible
(b) Universal applicability
(c) Contingent
(d) Formed from practice & experimentation

Q12. The extent of the applicability of the principles of management would vary with
______________.
(a) The nature of the organisation, business activity, scale of operations etc .
(b) The nature of the organisation, business activity, financial condition of the business
etc.
(c) The nature of the organisation, business activity, behaviour of the manager etc.
 (d) The nature of the organisation, business activity, market condition etc.

Q13. Why principles of management cannot provide readymade solutions to all managerial
problems?
(a) Real business situation are very simple in nature.
(b) Real business situations are very complex and dynamic and are a result of many
factors.
(c) They are based on practice & experiments.
(d) There is cause & effect relationship.

Q14. In order to remedy the problem of fatigue of workers in the factory, an experiment may
be conducted to see the effect of improvement of physical conditions to reduce stress.
Identify the nature of principles of management.
(a) Flexible
(b) Universal applicability
(c) Contingent
(d) Formed from practice & experimentation

Q15. The principles of management are not rigid prescriptions, which have to be followed
absolutely. Identify the nature of principles of management.
(a) Flexible
(b) Universal applicability
(c) Contingent
(d) Formed from practice & experimentation

Q16.The degree of concentration of authority (centralisation) or its dispersal

(decentralisation) will depend upon the situations and circumstances of each enterprise.
Identify the nature of principles of management.
(a) Formed from practice & experimentation
(b) Contingent
(c) Flexible
(d) Universal applicability

Q17. Principles enable a better understanding of the relationship between human and
material resources in accomplishing organisational purposes. Identify the nature of principles
of management.
(a) Management influence behaviour
(b) Contingent
(c) Flexible
(d) Universal applicability

Q18. While planning the layout of a factory, orderliness would require that workflows are
matched by flow of materials and movement of men.
(a) To reduce the wastage of resources.
(b) For better understanding of the relationship between human and material resources.
(c) Because principles of management are universal in nature.
(d) None of the above

Q19. The principles of management are intended to establish relationship between cause and
effect so that
 (a) They can be experimented first and then implemented.
(b) They can be modified by the manager when the situation so demand.
(c) They can be used in similar situations in a large number of cases.
(d) They can influence the behaviour of human being

Q20. Why the principles of management are less perfect?

(a) They are behavioural in nature
(b) They are flexible.
(c) They are based on practice & experimentation
(d) They mainly apply to human behaviour.

Q21. Principles of management assist managers in establishing these relationships to some

extent and are therefore useful. In situations of emergencies, it is desirable that someone takes
charge and others just follow. Identify the nature of principles of management.
(a) Cause & effect relationship
(b) Contingent
(c) Flexible
(d) Universal applicability

Q22. The application of principles of management is _________________ or dependent upon

the prevailing situation at a particular point of time. The application of principles has to be
changed as per requirements.
(a) Flexible
(b) Universal
(c) Contingent
(d) General guideline

Q23.Employees deserves fair and just remuneration. But what is just and fair is determined
by multiple factors. They include contribution of the employee, paying capacity of the
employer and also prevailing wage rate for the occupation under consideration. Identify the
nature of principles of management.
(a) Cause & effect relationship
(b) Contingent
(c) Flexible
(d) Universal applicability

Q24. What is ‘Contingent’ as a feature of principle of management?

(a) The principles of management are scientific.
(b) The principles of management are flexible.
(c) Their application & effect depend upon the nature of organisation.
(d) (a) & (c) both

• SIGNIFICANCE OF PRINCIPLES OF MANAGEMENT

Q25. The principles of management provide the managers with

(a) Logic to apply
(b) Useful insights into real world situations.
(c) Scientific methods to apply
 (d) Enough resources to achieve the objective.

Q26. Which qualities can be developed in a manger due to the practice of principles of
management?
(a) Increase knowledge.
(b) Ability to understand the situation
(c) Increase managerial efficiency
(d) Increase knowledge, ability and understanding of managerial situations and
circumstances, learn from past mistakes and conserve time by solving recurring
problems quickly.

Q27.A manager can leave routine decision-making to his subordinates and deal with
exceptional situations which require her/his expertise by following the principles of
delegation. Identify the significance of Principles of Management.
(a) Optimum utilisation of resources
(b) Meeting changing environment
(c) Providing manager with useful insights into reality.
(d) Scientific decisions

Q28. Resources both human and material available with the company are ______________.
(a) Unlimited
(b) Limited
(c) Sufficient
(d) As per requirement

Q29. Optimum utilisation of resources means ____________________.

(a) Resources should be put to use in such a manner that they should give less benefit
with minimum cost.
(b) Resources should be put to use in such a manner that they should give maximum
benefit with maximum cost.
(c) Resources should be put to use in such a manner that they should give maximum
benefit with minimum cost.
(d) Resources should be put to use in such a manner that they should give minimum
benefit with maximum cost.

Q30. Effective administration necessitates impersonalisation of managerial conduct so that

managerial power is used with due _________________.
(a) Discretion
(b) Requirement
(c) Changes
(d) responsibility

Q31. Principles of management limit the boundary of managerial discretion so that their
decisions may be free from personal prejudices and biases. For example, in deciding the
annual budgets for different departments, rather than personal preferences, managerial
discretion is bounded by the principle of contribution to organisational objectives. Identify
the significance of Principles of Management.
(a) Scientific decisions
(b) Optimum utilisation of resources & effective administration
(c) Meeting changing environment
 (d) Providing manager with useful insights into reality.

Q32. Decisions must be based on facts, thoughtful and justifiable in terms of the intended
purposes. They must be timely, realistic and subject to measurement and evaluation.
Management principles help in thoughtful decision-making. They emphasise logic rather than
blind faith. Identify the significance of Principles of Management.
(a) Scientific decisions
(b) Optimum utilisation of resources & effective administration
(c) Meeting changing environment
(d) Providing manager with useful insights into reality.

Q33. Hindustan Lever Limited is divesting non-core businesses of chemicals and seeds.
Some companies are outsourcing their non-core activities like share-transfer management and
advertising to outside agencies. So much so, that even core processes such as R&D,
manufacturing and marketing are being outsourced today.
Identify the significance of Principles of Management.
(a) Scientific decisions
(b) Optimum utilisation of resources & effective administration
(c) Meeting changing environment
(d) Providing manager with useful insights into reality.

Q34. Principles of management enable refinement of management practices as well by

facilitating the development of new management techniques. Thus, we see that techniques
like Operations Research (OR), cost accounting, ‘Just in Time’, ‘Kanban’ and ‘Kaizen’ have
developed due to further research on these principles.
Identify the significance of Principles of Management.
(a) Scientific decisions
(b) Optimum utilisation of resources & effective administration
(c) Meeting changing environment
(d) Management training, education & research

• ABOUT FREDRICK TAYLOR

Q35. Birthdate of Taylor was _________.

(a) March 20,1856
(b) March 20, 1841
(c) March 21, 1856
(d) March 21, 1841

Q36. Death date of Taylor was ________.

(a) March 20,1915
(b) March 20, 1925
(c) March 21, 1915
(d) March 21, 1925

Q37. Fredrick Taylor was __________.

(a) A mining engineer
(b) A mechanical engineer
(c) A metal engineer
(d) A marine engineer
Q38. Taylor thought that by scientifically analysing work, it would be possible to find
__________________________ to do it.
(a) Many ways
(b) Two better ways
(c) One best way
(d) None of the above

Q39. According to Taylor ‘Each side needed the other’ means

(a) The best results of an organisation would come from the partnership between a
trained and qualified management and a cooperative and innovative workforce.
(b) The result of an organisation depends upon the efficiency and effectiveness of
management group.
(c) The result of an organisation depends upon the hard work, discipline & loyalty of the
workers.
(d) The result of an organisation depends upon the capital invested by the owners.

Q40. Taylor wanted that workers should cooperate with the management thus

(a) Conflicts would be less.

(b) There would be no need of trade unions.
(c) Wastage of resources would be less.
(d) Cost of production would be less.

Q41. Taylor was known for coinage of the term _____________in his Article ‘The Principles
of Scientific Management’ published in __________.
(a) Morden Management; 1910
(b) General Management; 1911
(c) Scientific Management; 1910
(d) Scientific Management; 1911

Q42.Taylor was selected to be the ________________ of the American Society of

Mechanical Engineers (ASME) from 1906 to 1907.
(a) Professor
(b) Chairmen
(c) President
(d) Director

Q43. Taylor was a professor at ______________________ at Dartmouth College founded in

1900.
(a) Tuck School of Business
(b) Taxila Business School
(c) TASMAC Business School
(d) Stanford Business School

• PRINCIPLES OF SCIENTIFIC MANAGEMENT

Q44. Taylor emerged as the ‘Father of Scientific Management’ because____________.

(a) He introduced ‘piece rate wage system’.
(b) He proposed scientific management as opposed to rule of thumb.
 (c) He believed ‘One best way’ to do work.
(d) He wanted that workers should cooperate with the management.

Q45. Scientific management means ____________________.

(a) Best method & cheapest way of production.
(b) Method which is effective as well as efficient.
(c) Scientific method without considering the cost.
(d) Knowing exactly what you want men to do and seeing that they do it in the best and
cheapest way.

Q46. 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.

Q47. According to Taylor, even a small production activity like loading pigs of iron into
boxcars can be scientifically planned and managed. Identify the Principle of management.
(a) Harmony, Not Discord
(b) Science not Rule of Thumb
(c) Cooperation, Not Individualism
(d) Motion Study

Q48. This can result in tremendous saving of human energy as well as wastage of time and
materials. The more sophisticated the processes, greater would be the savings. These are the
advantages due to ________________.
(a) Harmony, Not Discord
(b) Cooperation, Not Individualism
(c) Authority & responsibility
(d) Science not Rule of Thumb

Q49.Taylor emphasised that there should be ________________ between the management

and workers.
(a) Difference of opinion
(b) understanding
(c) Complete harmony
(d)
Q50. Both should realise that each one is important. To achieve this state, Taylor called for
complete mental revolution on the part of both management and workers.
It means that management and workers should transform their thinking. In such a situation
even trade unions will not think of going on strike etc. Identify the Principle of management.
(a) Harmony, Not Discord
(b) Science not Rule of Thumb
(c) Cooperation, Not Individualism
(d) Mental Revolution

Q51. Management should share the gains of the company, if any, with the workers. At the
same time workers should work hard and be willing to embrace change for the good of the
company. Both should be part of the family. Identify the Principle of management by Taylor.
(a) Science not Rule of Thumb
(b) Cooperation, Not Individualism
(c) Espirit De Corps
 (d) Harmony, Not Discord

Q52. Prosperity for the employer cannot exist for a long time unless it is accompanied by
______________________________.
(a) prosperity for the owner
(b) prosperity for the society
(c) prosperity for the employees
(d) prosperity for the customers

Q53. In Japanese companies, paternalistic style of management is in practice. What is

paternalistic style of management?
(a) The management style where employees are treated as drones, to be monitored
closely as they perform within clearly defined perimeters.
(b) The management seeks the thought, ideas & opinions of staff, works together with
staff to make decisions & then the company acts on them.
(c) In this style manager see themselves as the coach & their employees as the valued
members of their team.
(d) The management style where employees & partners work as they are the
members of a large, extended family. Employees are listened to, but they leader
always makes the final decision.

Q54. There is complete openness between the management and workers. If at all workers go
to strike they wear a black badge but work more than normal working hours to gain the
sympathy of the management. Identify the style of management.
(a) Coaching management style
(b) Collaborative management style
(c) Paternalistic management style
(d) Participative management style

Q55. 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. Then work
assigned should suit her/his physical, mental and intellectual capabilities. Identify the
Principle of management by Taylor.
(a) Science not Rule of Thumb
(b) Cooperation, Not Individualism
(c) Espirit De Corps
(d) Development of each and every person to his her greatest efficiency & prosperity
Q56. There should be complete _________ between the labour and the management instead
of _______________.
(a) Competition; cooperation
(b) Cooperation; individualism
(c) Cooperation; competition
(d) Competition; individualism

Q57. The principle ‘Cooperation, Not Individualism’ is an extension of principle of

_______________________.
(a) Harmony not discord.
(b) Mental Revolution
(c) Differential Piece Wage System
(d) Science not rule of Thumb
Q58. Management should not close its ears to any constructive suggestions made by the
employees. They should be rewarded for their suggestions which results in substantial
reduction in costs. Identify the Principle of management by Taylor.
(a) Mental revolution
(b) Cooperation, Not Individualism
(c) Espirit De Corps
(d) Harmony, Not Discord

• TECHNIQUES OF SCIENTIFIC MANAGEMENT

Q59.The ____________ is the lowest ranking manager and the highest ranking worker.
(a) Foreman
(b) Section leads
(c) Superintendent
(d) Workers

Q60. According to Functional Foremanship there should be separate two departments i.e
___________ & ___________.
(a) Planning ; Organising
(b) Planning; Production
(c) Planning; Staffing
(d) Planning; Controlling

Q61. Functional foremanship is an extension of the principle of ___________________ and

_____________________.
(a) Authority & responsibility; specialisation to the shop floor
(b) Division of work; specialisation to the factory
(c) Division of work; specialisation to the shop floor
(d) Unity of Command; specialisation to the shop floor

Q62. According to him scientific method should be used to analyse methods of production
prevalent under the rule of thumb. The best practices can be kept and further refined to
develop a standard which should be followed throughout the organisation. This can be done
through ______________ techniques.
(a) Differential Piece Wage System
(b) Functional Foremanship
(c) Science Not Rule of Thumb
(d) Work Study

Q63. Which is not the objective of ‘Standardisation’?

(a) To reduce a given line or product to fixed types, sizes and characteristics.
(b) To establish interchange ability of manufactured parts and products.
(c) To eliminate superfluous varieties, sizes and dimensions
(d) To establish standards of performance of men and machines.

Q64. Which is the objective of ‘Simplification’?

(a) To reduce a given line or product to fixed types, sizes and characteristics.
(b) To establish interchange ability of manufactured parts and products.
(c) To eliminate superfluous varieties, sizes and dimensions
 (d) To establish standards of performance of men and machines.

Q65. The objective of _________ is to find out one best way of doing the job.
(a) Time study
(b) Method study
(c) Process Study
(d) Motion Study

Q66. For designing a car, the assembly line production would entail deciding the sequence of
operations, place for men, machines and raw materials etc. All this is part of _____________.
(a) Time study
(b) Method study
(c) Process Study
(d) Motion Study

Q67. ________________ refers to the study of movements like lifting, putting objects, sitting
and changing positions, etc., which are undertaken while doing a typical job.
(a) Time study
(b) Method study
(c) Process Study
(d) Motion Study

Q68. According to Taylor, What is not possible to find out on examination of the movement
of body?

(a) Motions which are productive

(b) Motions which are incidental
(c) Motions which are costly
(d) Motions which are unproductive.

Q69. The objective of time study is to determine

(a) The number of workers to be employed; frame suitable incentive schemes and
determine labour costs.
(b) The standard time taken to perform a well-defined job.
(c) The cost of production.
(d) The time of rest intervals.

Q70. Normally in a plant, work takes place in three shifts of eight hours each. Even in a
single shift a worker has to be given some rest interval to take her/his lunch etc. If the work
involves heavy manual labour then small pauses have to be frequently given to the worker so
that she/he can recharge her/his energy level for optimum contribution. This is because of
______________.
(a) Time study
(b) Method study
(c) Process Study
(d) Fatigue Study

Q71. Fatigue study seeks to determine the _____________.

(a) Time & frequency of rest intervals in completing a task.
(b) Amount and frequency of rest intervals in completing a task.
 (c) Standard time & frequency of rest intervals in completing a task.
(d) None of the above.

Q72. There must be a compensation system that differentiates those who are able
to accomplish/exceed the fair day’s work. Identify the technique of scientific management.
(a) Functional Foremanship
(b) Method Study
(c) Differential Piece Wage System
(d) Mental Revolution

Q73. This differential system must be based on the premise that efficiency is the result of the
joint efforts of the managers and the workers. Thus, rather than quarrelling over the share in
the resultant surplus, the workers and managers should work in harmony for maximising the
output rather than restricting it.
Identify the technique of scientific management.
(a) Functional Foremanship
(b) Method Study
(c) Differential Piece Wage System
(d) Mental Revolution

Q74. Both management & workers should aim to increase the size of surplus. This would
eliminate the need for any agitation. Management should share a part of surplus with
workers. Workers should also contribute their might so that the company makes profits.
Identify the technique of scientific management.
(a) Cooperation, Not Individualism
(b) Differential Piece Wage System
(c) Mental Revolution
(d) Harmony Not Discord

Q75. What can be eliminated because of introduction of Mental Revolution?

(a) Cooperation
(b) Individualism
(c) Harmony
(d) Agitation

Q76. The latest development in scientific management is

(a) Lean Manufacturing
(b) Job Production
(c) Batch Production
(d) Flow Manufacturing

• ABOUT HENRI FAYOL

Q77. Henri Fayol suggested _________________. While Taylor succeeded in revolutionising
the working of ________________.
(a) Administrative theory; research work
(b) Administrative theory; factory shop floor
(c) Management theory; research work
 (d) Management theory; factory shop floor

Q78. Fayol’s contribution must be interpreted in terms of the impact that his writings had and
continue to have
(a) Improvement in workers efficiency
(b) Improvement in owners efficiency
(c) Improvement in managerial efficiencies.
(d) Improvement in societies efficiency

Q79. What was the birth & death year of Faylo?

(a) 1841-1911
(b) 1841-1920
(c) 1841-1925
(d) 1841-1930

Q80. Fayol was a __________ engineer.

(a) Mining
(b) Metal
(c) Mechanical
(d) Marine

Q82. What was the version of Fayol about the functions of management?
(a) Plan, Organise, Command, Coordinate and Control.
(b) Plan, Organise, Staffing, Control
(c) Plan, Organise, Command, Control
(d) Plan, Organise, Coordinate, Control
Q83. According to Fayo all activities of an industry can be divided into _________.
(a) Technical; Commercial; Economic; Security; Accounting and Managerial.
(b) Technical; Commercial; Financial; Safety; Accounting and Managerial.
(c) Technical; Commercial; Financial; Accounting ; Auditing and Managerial.
(d) Technical; Commercial; Financial; Security; Accounting and Manager

Q84. According to Fayol, ____________________ is the most efficient way to use human
effort.
(a) Honesty
(b) Education
(c) Experience
(d) Specialisation

Q85. In business work can be performed more efficiently if it is divided into specialised
tasks; each performed by a specialist or trained employee. This results in efficient and
effective output. Identify the principle of Fayol.
(a) Authority & Responsibility
(b) Division of Work
(c) Discipline
(d) Centralisation & Decentralisation

Q86. The intent of division of work is ______________________

(a) To reduce cost
(b) To produce more and better work for the same effort.
 (c) To use less resources
(d) To maintain discipline

Q87. ________________ is the right to give orders and obtain obedience, and
________________ is the corollary of authority.
(a) Accountability, Authority
(b) Accountability, Responsibility
(c) Authority, Responsibility
(d) None of the above

Q88. Managers require authority _____________ with their responsibility.

(a) Commensurate
(b) Higher
(c) Lower
(d) Disproportionate

Q89. There should be a balance between authority and responsibility. An organisation should
build safeguards against abuse of managerial power. At the same time a manager should have
necessary authority to carry out his responsibility. Identify the principle of Fayol.
(a) Authority & Responsibility
(b) Division of Work
(c) Discipline
(d) Centralisation & Decentralisation

Q90. 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 net margin of say ` 50 crores. Now the company gives power to the manager to
offer a credit period of only 40 days. Manager himself cannot increase the credit period from
40 days to 60 days. This power is not with the manager. Identify the principle of Fayol has
been overlooked here.
(a) Centralisation & Decentralisation
(b) Authority & Responsibility
(c) Initiative
(d) Discipline

Q91. According to Fayol, ____________ requires good superiors at all levels, clear and fair
agreements and judicious application of penalties.
(a) Discipline
(b) Management
(c) Business
(d) Profit making organisation

Q92. Discipline according to Fayol is __________________.

(a) The workers should honour their commitments without any prejudice towards
management another
(b) The management should honour their commitments without any prejudice towards
workers
(c) The workers and management both honour their commitments without any
prejudice towards one another
(d) None of the above
Q93. According to Fayol ‘Unity of Command’ states ____________________.
(a) One and only one boss for every individual employee.
(b) One best way to do one work
(c) One objective must have one head & one plan
(d) (a) & (c) both

Q94. Each group of activities having the same objective must have one head and one plan.
Identify the principle of Fayol.
(a) Centralisation & Decentralisation
(b) Unity of Direction
(c) Unity of Command
(d) Discipline

Q95. The interests of an organisation should take priority over the interests of any one
individual employee. Identify the principle of Fayol.
(a) Remuneration of Employees
(b) Centralisation & Decentralisation
(c) Subordination of Individual Interest to General Interest
(d) Discipline

Q96. 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.
Identify the principle of Fayol.
(a) Remuneration of Employees
(b) Centralisation & Decentralisation
(c) Discipline
(d) Equity

Q97. The concentration of decision-making authority is called ____________ whereas its

dispersal among more than one person is known as____________.
(a) Decentralisation; centralisation
(b) Centralisation; decentralisation
(c) Centralisation; authority
(d) Centralisation; accountability

Q98. What is principle of ‘Centralisation & decentralisation’ according to Fayol?

(a) There should be proper distribution of Centralisation & decentralisation.
(b) There should be more of centralisation than decentralisation.
(c) There should be more of centralisation than decentralisation.
(d) There should be more of decentralisation than centralisation.
(e) There is need to balance subordinate involvement through decentralisation with
managers’ retention of final authority through centralisation.
Q99. In general large organisations have more __________________ than small
organisations.
(a) less decentralisation
(b) more decentralisation
(c) less centralisation
(d) more centralisation
Q100. Organisations should have a chain of authority and communication that runs from top
to bottom and should be followed by managers
and the subordinates. Identify the principle of Fayol.
(a) Centralisation & Decentralisation
(b) Scalar Chain
(c) Unity of Command
(d) Discipline

Q101. “People and materials must be in suitable places at appropriate time for maximum
efficiency.” Identify the principle of Fayol.
(a) Discipline
(b) Material Study
(c) Division of Work
(d) Order

Q102. The principle of _____________ states that ‘A place for everything (everyone) and
everything (everyone) in its (her/his) place’.
(a) Material Study
(b) Division of Work
(c) Order
(d) Work Study

Q103. The principle of ______________ emphasises kindliness and justice in the behaviour
of managers towards workers. This will ensure loyalty and devotion.
(a) Initiative
(b) Espirit De Corps
(c) Remuneration of Employees
(d) Equity

Q104. There should be no discrimination against anyone on account of sex, religion,

language, caste, belief or nationality etc. Identify the principle of Fayol.
(a) Equity
(b) Subordination of Individual Interest to General Interest
(c) Espirit De Corps
(d) Harmony not Discord

Q105. Personnel should be selected and appointed after due and rigorous procedure. But once
selected they should be kept at their post/ position for a minimum fixed tenure. Identify the
principle of General Management.
(a) Discipline
(b) Order
(c) Equity
(d) Stability of Personnel

Q106. _____________ means taking the first step with self-motivation.

(a) Suggestion
(b) Initiative
(c) Reward
(d) Idea
Q107. A good company should have an employee suggestion system whereby in suggestions
which result in substantial cost/time reduction should be rewarded.
Identify the principle of General Management.
(a) Discipline
(b) Remuneration of Employees
(c) Harmony not Discord
(d) Stability of Personnel

Q108. A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster
team spirit. This will give rise to a spirit of mutual trust and belongingness among team
members. Identify the principle of General Management.
(a) Discipline
(b) Espirit De Corps
(c) Harmony not Discord
(d) Cooperation, Not Individualism

Q109. Henri Fayol was a ______________ but, F. W. Taylor was a _____________.

(a) Engineer; Doctor
(b) Practitioner; Doctor
(c) Practitioner; Scientist
(d) None of the above

Q110. The principles of Henri Fayol are based on ______________ but, the principles of F.
W. Taylor are based on _____________.
(a) Personal experiences; Observations & experimentation
(b) Observations & experimentation ;Personal experiences
(c) Knowledge; Training
(d) Training; knowledge

ASSERTION AND REASONING

Read the following statement- Assertion (A) & Reason (R). Choose one of the correct
alternatives given below:

(a) Both Assertion (A) & Reason (R) are true & Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) & Reason (R) are true & Reason (R) is not the correct explanation
of Assertion (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

Q1. (A) Management principles are not as rigid as principles of pure science.
(R) They deal with human behaviour and, thus, are to be applied creatively given the
demands of the situation.

Q2. (A) The principles of management but do not provide readymade straitjacket solutions to
all managerial problems.
(R) Real business situations are very complex and dynamic and are a result of many factors.
Q3. (A) Principles of management are mainly behavioural in nature.
(R) The principles of management are formed by experience and collective wisdom of
managers as well as experimentation.

Q4. (A) Management principles are based on the objective assessment of the situation
(R) Management decisions are taken on the basis of very few selected managers opinion.

Q5. (A) Taylor is known as the ‘Father of General Management’.

(R) He proposed scientific management as opposed to rule of thumb.

Q6. (A) Trade unions will not think of going on strike.

(R) It means that management and workers should transform their thinking.

Q7. (A) A person is bound to feel tired physically and mentally if she/he does not rest while
working.
(R) The method of time study will depend upon volume and frequency of the task, the cycle
time of the operation and time measurement costs

Q8(A) .It is determined that standard output per worker per day is 10 units and those who
made standard will get Rs. 50; more than standard will get Rs. 60 per unit and those below
will get Rs. 40 per unit. Now an efficient worker making 11 units will get 11*60= Rs. 660 per
day whereas a worker who makes 9 units will get 9×40 = Rs. 360 per day.
(R) According to Taylor, the difference of Rs. 190 should be enough to reduce the cost of
production.

Q9. (A) Taylor’s ideas lies in the disjointed description of principles and techniques of
scientific management.
(R) Mental revolution involves a change in the attitude of workers and management towards
one another from competition to

Q10. (A) Henri Fayol is known as the ‘Father of General Management’.

(R) The 14 principles of management propounded by him were discussed in detail in his book
published in 1917, ‘Administration industrielle et generale’. It was published in English as
‘General and Industrial Management’ in 1949 and is widely considered a foundational work
in classical management theory.

Q11.(A) Suppose management and labour union have 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. After 6 months there is an extraordinary rise in
the profit percentage. But the management refused to pay additional payment to the workers.
(R) Management is correct because by this management will be able to introduced
Differential piece Wage System.

Q12. (A) According to Fayol Dual subordination should be appreciated.

(R) The principle of unity of command states that each participant in a formal organisation
should receive orders from and be responsible to only one superior.

Q13. (A) The company want to get maximum output from its employees at a competitive cost
(salary).But an employee may want to get maximum salary while working the least. In
another situation an individual employee may demand some concession, which is not
admissible to any other employee like working for less time. In all the situations the interests
of the group/company will supersede the interest of any one individual.
(R) The overall pay and compensation should be fair to both employees and the organisation.

Q14. (A) Panchayats in our country have been given more powers to decide and spend funds
granted to them by the government for the welfare of villages.

(R) This is centralisation at the national level.

Q15. (A) A worker cannot directly contact the CEO of the company. If at all she/he has to,
then all the formal levels i.e., foreman, superintendent, manager, director etc have to know
about the matter.
(R) The concentration of decision-making authority is called centralisation whereas
its dispersal among more than one person is known as decentralisation.

Q16. (A) Principle of ‘Order’ will lead to increased productivity and efficiency.

(R) If there is a fixed place for everything and it is present there, then there will be no
hindrance in the activities of business.

Q17. (A) Stability in tenure of personnel can increase the internal problems of the business.
(R) Employees should be given reasonable time to show results. Any adhocism in this regard
will create instability/insecurity among employees. They would tend to leave the
organisation.

Q18. (A) Management should promote teamwork especially in large organisations.

(R) The degree of centralisation will depend upon the circumstances in which the company is
working. In general large organisations have more decentralisation than small organisations.

MATCH THE COLUMNS

Q1.

COLUMN I COLUMN II
1. Ensue discipline a. Instruction Card Clerk
 2. Prepare time & cost sheet b. Route Clerk
3. Specify the route of production c. Time & Cost Clerk
4. Draft instructions for the workers d. Disciplinarian
A. 1-d; 2-c; 3-b; 4-a

Q2.

COLUMN I COLUN II
1. Keeping machines & tools ready a. Inspector
2. Accurate completion of job b. Repairs Boss
3. Check the quality of work c. Gang Boss
4. Ensure proper working conditions of machines d. Speed Boss
& tools
A. 1-b; 2-d; 3-c;4-a

Q3.

COLUMN I COLUMN II
1. Time Study a. Unnecessary movements are sought
to be eliminated
2. Fatigue Study b. One best way of doing job
3. Method Study c. Determine the amount & frequency of
rest interval.
4. Motion Study d. Standard time taken to perform a job
A. 1-d; 2-c; 3-b;4-a

Q4.

COLUMN I COLUMN II
1. Science, not Rule of Thumb a. Management should not close its ears
to any constructive suggestions made
by the employees. They should be
rewarded for their suggestions which
results in substantial reduction in
costs.
2. Harmony. Not Discord b. Each person should be
scientifically selected. Then work
assigned should suit her/his
physical, mental and intellectual
capabilities. To increase
efficiency, they should be given
the required training.
3. Cooperation, Not Individualism c. Taylor called for complete
mental revolution on the part of
both management and workers.
It means that management and
workers should transform their
thinking.
4. Development of each and every d. There is only one best method
person to his her greatest to maximise efficiency. This
efficiency & prosperity. method can be developed through
study and analysis.
 A. 1-d; 2-c; 3-a; 4-b.

Q5.

COLUMN I COLUMN II
1. Division of Work a. One boss for every individual
2. Discipline b. One objective have one head & one
plan
3. Unity of Command c. The workers & management both
honour their commitments
4. Unity of Direction d. To produce more & better work for
the same effort.
A. 1-d; 2-c; 3-a; 4-b

Q6.

COLUMN I COLUMN II
A. Equity 1. People & material must be in suitable
place.
B. Centralisation & Decentralisation 2. Formal lines of authority
C. Scalar Chain 3. Good sense and experience are needed to
ensure fairness to all employees, who should
be treated as fairly as possible.
D. Order 4. Panchayats in our country have been given
more powers to decide and spend funds
granted to them by the government for the
welfare of villages.
E. Authority & Responsibility
A. A-3; B-4; C-2; D-1

Q7.

COLUMN I COLUMN II
A. It should be balanced. 1. Stability of Personnel
B. Taking the first step with sel-motivation. 2. Initiative
C. Employees should be given reasonable 3. Espirit De Corps
time to show results.
D. The formal lines of authority. 4.Authority & Responsibility
E. Team spirit with unity & harmony. 5. Scalar Chain
A. A-4; B-2; C-1; D-; E-3

Q8.

COLUMN I COLUMN II
A. Both should realise that each one is 1. Espirit De Corps
important.
B. Replace ‘I’ with ‘We’. 2. Equity
C. Kindliness and justice in the behaviour of 3.Cooperation Not Individualism
managers towards workers.
D. Workers should be encouraged to develop 4. Harmony Not Discord
and carry out their plans for improvements
E. Management should not close its ears to
any constructive suggestions made by the
employees.
A. A-4; B-1; C-2; D-*; E-3.

Q9.

COLUMN I COLUMN II
A. General Guidelines 1. The degree of concentration of authority or
its dispersal will depend upon the situations.
B. Behavioural 2. Principles are applicable to all types of
organisations.
C. Cause & effect relationship 3. Principles enable a better understanding of
the relationship between human & material.
D. Flexible 4. Division of work increases efficiency
E. Universal applicability 5.Principles do not provide readymade
straitjacket solutions.
A. A-5; B-3; C-4; D-1; E-2.

Q10.

COLUMN I COLUMN II
A. Managers with useful insights into reality 1. In deciding the annual budgets for
different departments, rather than personal
preferences, a part of management principles
directly or indirectly.
B. Effective administration 2. Now companies are specialising in their
core competency & divesting non -core
businesses.
C. Scientific decisions 3. BHEL has developed Ranipur in Hardwar.
D. Changing environment requirements 4. It will also enable managers to learn from
past mistakes and conserve time by solving
recurring problems quickly.
E. Fulfilling social responsibility 5. Management principles help in thoughtful
decision-making. They emphasise logic
rather than blind faith.
A. A-4; B-1; C-5; D-2; E-3.

QUESTIONS AND ANSWERS

Q. Why principles of management are known as Contingent?

A. The application of principles of management is contingent or dependent upon the
prevailing situation at a particular point of time.

Q. Name the principles of management which can regulate the behaviour of employees.
A. Division of work, Unity of command, Discipline, Unity of direction etc.

Q. During the period of recession, the general manager may allow marketing departments to
give a heavy discount to the customers without giving due attention to financial losses being
raised by the financing department because the primacy of overall goals of the organisation is
important. Identify the feature of Principles of Management.
A. General guidelines
Q. Identify the feature of Principles of Management. Remuneration of employees should be
just and equitable yet it may vary from person to person depending upon various situations.
Remuneration can be dependent on: Industrial standard, Employer’s paying capacity,
Contribution of employee etc.
A. Contingent

Q. Identify the Significance of Principles of Management in these two Principles: Principles

of fair remuneration & Equity.
A. Fulfilling social responsibilities

Q. With the rapid rise of online market sellers, offline vendors have also started selling their
goods on online platforms. Identify the Significance of Principles of Management.
A. Meeting changing environment requirements.

Q. The whole work of an organisation is divided into smaller tasks and such tasks are
assigned to different departments, groups and individuals. Such a system of division of work
is applicable in all types of organisations. Identify the feature of Principles of Management.

Q. It is the result of such training, education & research that Sunil Mittal could run Airtel in a
successful way. Identify the Significance of Principles of Management.
A. Management, training, education & research

Q. Why Fredrick Taylor is known as the ‘Father of Scientific Management’?

A. Because he proposed scientific management as opposed to rule of thumb. He broke up
human activity into small parts and found out how it could be done effectively, in less time
and with increased productivity. It implies conducting business activities according to
standardised tools, methods and trained personnel in order to increase the output, improve its
quality and reduce costs and wastes.

Q. What are the 3 advantages of ‘Scientific Management’?

A. Reduced cost of production, requirement of less production time & increase in efficiency.

Q. According to Taylor how the efficiency & prosperity for both company & workers can
improve?
A. According to Taylor each person should be selected scientifically, Then work should be
assigned should as per her/his physical, mental and intellectual capabilities & they should be
given the required training.

Q. Why Taylor suggested functional foremanship through eight persons?

A. Taylor realised that the role of foreman is very important in the set-up of the factory. He
identified a list of qualities of a good foreman/supervisor and found that no single person
could fit them all.

Q. What are qualities essential for a Foreman?

A. Foremen should have intelligence, education, tact, grit, judgment, special knowledge,
manual dexterity, and energy, honesty and good health.

Q. What is ‘Standardisation’?
A. Standardisation 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.

Q. What are the advantages of ‘Simplification?

A. It results in savings of cost of labour, machines and tools. It implies reduced inventories,
fuller utilisation of equipment and increasing turnover.

Q. What is the purpose of ‘Motion Study’?

A. Unnecessary movements are sought to be eliminated so that it takes less time to complete
the job efficiently.

Q. What are the parameters on which the method of time study depends?
A. The method of time study will depend upon volume and frequency of the task, the cycle
time of the operation and time measurement costs.

Q. Name the method which was introduced by Taylor to reward efficient workers.
A. Differential Piece Wage System

Q. What is mental revolution?

A. Mental revolution involves a change in the attitude of workers and management towards
one another from competition to cooperation.

Q. Workers should be part of management and, if any important decisions are taken, they
should be taken into confidence. At the same time workers should desist from going on strike
and making unreasonable demands on the management. In fact when there will be open
communication system and goodwill there will be no need for even a trade union. Identify the
principles of management.
A. Cooperation Not Individualism

Q. In which year Fayol was working as a managing director in the mining company
‘Compagnie de commentary-Fourchambean- Decazeville ?
A. 1888 to 1918.

Q. Who was the first to identify four functions of management – Planning, Organising,
Directing and Controlling?
A. Henri Fayol

Q. According to Fayol, what are the qualities a manager?

A. Physical, Moral, Education, Knowledge and experience.

Q. Why Taylor is known as ‘Father of Scientific Management’ & Fayol is known as ‘Father
of General Management’?
A. Taylor proposed scientific management as opposed to rule of thumb therefore he is
known as ‘Father of Scientific Management.
The 14 principles of management propounded by him were discussed in detail in the book of
Fayol which was published in 1917, ‘Administration industrielle et generale’. It was
published in English as ‘General and Industrial Management’ in 1949 and is widely
considered a foundational work in classical management theory. Therefore Fayol is known as
‘Father of General Management’.

Q. In a company we have separate departments for finance, marketing, production and human
resource development etc. All of them have specialised persons. Collectively they achieve
production and sales targets of the company. Identify the principle of Fayol.
A. Division of Work

Q. What are the two types of authority?

A. The two types of authority are official authority, which is the authority to command, and
personal authority which is the authority of the individual manager.

Q. What is ‘Discipline’?
A. Discipline is the obedience to organisational rules and employment agreement which are
necessary for the working of the organisation.

Q. A sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount
by the marketing manager. But finance department tells her/ him not to offer more than 5%
discount. Name the principle of Fayol was violated here.
A. Unity of command.

Q. If a company is manufacturing motorcycles as well as cars then it should have two

separate divisions for both of them. Each division should have its own incharge, plans and
execution resources. On no account should the working of two divisions overlap. Name the
principle of Fayol which is applicable here.
A. Unity of Direction

Q. She should not fall into temptation of misusing her powers for individual/ family benefit at
the cost of larger general interest of the workers/ company. This will raise her/his stature in
the eyes of the workers and at the same time ensure same behaviour by them. Identify the
principle of Fayol.
A. Subordination of Individual Interest to General Interest

Q. What is the principle of ‘Centralisation & Decentralisation’ according to Fayol?

A. There is a need to balance subordinate involvement through decentralisation with
managers’ retention of final authority through centralisation.

Q. On what the degree of centralisation will depend?

A. The degree of centralisation will depend upon the circumstances in which the company is
working.

Q. What is ‘Scalar Chain’?

A. The formal lines of authority from highest to lowest ranks are known as scalar chain.

Q. When ‘Gang Plank’ can be used? Why?

A. In case of emergency, it can be used. Because this is one of the short route and has been
provided so that communication is not delayed.
Q. Now a days in multinational corporations’ people of various nationalities work together in
a discrimination free environment. Identify the principle of Fayol.
A. Equity

Q. According to Fayol, why the turnover of employee should be minimised?

A. Employee turnover should be minimised to maintain organisational efficiency.

Q. What is the difference between principles of Fayol & Taylor on the basis of ‘Focus’?
A. The principles of Fayol focus on improving overall administration but Taylor focuses on
increasing productivity.

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.

QUESTIONS ASKED IN LAST 5 YEARS OF BOARD EXAMINATION

Q1. Principles of management are NOT: (SP 2020)
a. Applicable only in large firms
b. Formed by practice and experience of managers
c. Flexible
d. Contingent

Q2. Name and explain with a suitable example the technique of Scientific Management
given by Taylor, with the objective of determining the number of workers to be
employed for a task. (SP2020)
OR
Q2. Name and explain with a suitable example the technique of Scientific Management
given by Taylor to differentiate between the efficient and the inefficient workers.

Q3. Explain any five points of significance of Principles of Management. (CBSE 2019)
OR
Q3. Explain the following techniques of Scientific Management:
(a) Fatigue Study ; and
(b) Differential Piece Wage System

Q4. Damini D’souza took over the reins of ‘Kinsa Retail’ as its Managing Director in India. Kinsa
Retail with its headquarters at Japan has been in retail business for the last 40 years. It has reginal
offices in many countries with each regional office taking care of the shops in the particular region.
As it is a large organization, the regional offices have been given the powers to decide and spend
funds sanctioned to them by the headquarter for the welfare of the customers of their region.
Kinsa Retail wants the highest possible standards of ethical conduct being followed for which a code
of conduct is in place for putting values into practice. All employees as well as Board members are
required to act in accordance with the highest standards of personal and professional integrity when
acting on behalf of the company. Non-compliance involves a heavy penalty including termination of
employment. Explain two principles of general management being followed by Kinsa Retail.
(CBSE 2019)
Hint: Discipline & Centralisation & Decentralisation

Q5. Karan Nath took over ‘D’north Motor Company’ from his ailing father three months ago. In the
past the company was not performing well. Karan was determined to improve the company’s
performance. He observed that the methods of production as well as selection of employees in the
company were not scientific.
He believed that there was only one best method to maximise efficiency. He also felt that once the
method is developed, the workers of the company should be trained to learn that ‘best method’.
He asked the Production Manager to develop the best method and carry out the necessary training.
The Production Manager developed this method using several parameters right from deciding the
sequence of operations, place for men, machines and raw materials till the delivery of the product to
the customers. This method was implemented throughout the organisation. It helped in increasing the
output, improving the quality and reducing the cost and wastage. Identify and explain the principles
and the technique of scientific management followed by the Production Manager in the above case.
(CBSE 2018)
Hint: Principles are as under:
• Science not thumb rule
• Development of each & every person to his greatest efficiency & prosperity.

Technique: Method Study

Q6. Deewan Ltd. Is a multinational consulting company with its head headquarters at Washington
D.C. It hires young people from different countries of the would. If is a company in which people
dream to work because of its work-environment, pay and growth prospects. The company has a
culture of open communication and people of various nationalities work together in a discrimination
free environment. The behaviour of managers of managers of Deewan Ltd. emphasizes kindliness and
justice which ensures loyalty and devotion of workers. It also promotes mutual trust and
belongingness among team members. In this way managers of Deewan Ltd. are following some
principles of management. Identify and explain any two such principles. (CBSE 2018)
Hint: Equity & Espirit de Corps.

Q7. Explain briefly ‘Unity of Direction’ and ‘Order’ as principles of general management.
(CBSE 2017)

Q8. Sanket, after completing his entrepreneurship course from U.S.A. returned to India and started a
coffee shop ‘Fioma Coffee’ in a famous mall in Mumbai. The speciality of the coffee shop was the
special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was
neither profitable nor popular. Sanket was keen to find out the reason. He appointed Riya, an MBA
from a reputed management institute as a manager to find out the causes of the business not doing
well. Riya, took a 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 which could be eliminated.
She fixed a standard time for processing the order. She also realised that there were many flavours
whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a
result, within a short period Riya was able to attract the customers. Identify and explain any two
techniques of scientific management used by Riya to solve the problem. (CBSE 2017)
Hint: Standardisation &Simplification ,Time Study & Motion Study.

Q9. Apaar Foundation is a Non Governmental Organization (NGO) working to improve the lives 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 and medicines from donors. At Apaar
Foundation’s office in Bhopal the material collected is segregated, classified and put in shelves and
boxes that are labelled 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 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. Identify and explain two principles of
management adopted by Apaar Foundation. (CBSE 2017)
Hint: Order & Division of work

Q10. Explain any four characteristics of ‘principle of management’. (Delhi 2016)

Q11. Explain the following principles of management: (Outside Delhi 2015)

• Science, not rule of thumb
• Discipline

Q12. Appliances India Ltd. is engaged in manufacturing and distribution of home appliances since
1987. It has a good name in the market as the company is producing good quality appliances. It has
separate departments for manufacturing, finance, sales, maintenance services and technical services to
achieve specialization. Since the areas of operations of the company have increased and customers
have become more demanding, the company decided to modify the existing principle of management
to meet the changing requirements of the environment. State the general principle of management
which the company wants to modify to meet the changing requirements. (Delhi 2019)
Hint: Division of work

Q13. Pawan is working as a 'Production Manager' in CFL Ltd. engaged in manufacturing of 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 matter, management is sharing the gains
with the workers because they believe that prosperity of the company cannot exist for a long time
without the prosperity of the employees. State the principle of management described in the above
para. (CBSE 2014)
Hint: Harmony, Not Discord

Q14. ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal
division of work responsibility between worker and management. The management even takes
workers into confidence before taking important decisions. State the principle of management
described in the above para. (CBSE 2014)
Hint: Cooperation, Not Individualism

Q15. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running under heavy
losses. To revive from the losses, the management is thinking to shift 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 increase the 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. State the principle of management described in the above
para. (CBSE 2014)
Hint: Discipline

Q16. Principles of Taylor and Fayol are mutually complementary. One believed that the management should
share the gain with the workers while the other suggested that employees compensation should depend upon the
earning capacity of the company and should give them a reasonable standard of living. Identify and explain the
principles of management by Taylor and Fayol referred to in para. (CBSE 2014)
Hint: Taylor: Harmony, Not Discord
Fayol: Remuneration of Employees

Q17. Nikita and Salman completed their 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 organisation knew about it. At the
time of performance appraisal the performance of Nikita was judged better than Salman. Eyen then their boss,
Mohammed Shari( 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 multi-national company. (CBSE 2013)
Hint: Equity

Q18. 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)
Hint: Time study
Simplification (Standardisation and Simplification)
Motion study

Q19. 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.

Hint: Stability of Personnel

Q20. ‘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.
 1. Identify the principle of management applied for the success of
the programme.
2. State any two features of management highlighted in the above
paragraph.

Answer:

1. The principle of management applied for the success of the

programme is Espirit De Corps.
2. The two features of management:
o Management is goal oriented
o Management is pervasive

Q21. 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. CBSE OD
2014
Hint: Initiative
Q22. 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’.

Q23. 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.

Hint: Principle of Equity.

Q24. 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)

Hint: Principle of Equity

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