THE CHANAKAYA GURU ACADEMY

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ASSIGNMENT CHAPTER 2
Class 12 - Business Studies
Time Allowed: 1 hour Maximum Marks: 60

General Instructions:

1. Read all the questions carefully

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2. All questions are compulsory.

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1. The application of principles of management is dependent upon the prevailing situation at a particular point of [3]

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time'. State and explain the feature of management principle mentioned here.
2. Explain the technique of 'simplification and standardisation of work' given by Taylor. [6]
3.

a
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a [4]
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boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well

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trained to perform his/her task efficiently. The salespersons 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.
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In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she
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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
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biased towards her female employees, when it comes to solve the conflicts among employees.
Based on the information given above, answer the following questions:
i. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task
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efficiently. Which principle of management is being followed here?

a. Centralization and Decentralization
b. Division of work
c. Discipline
d. Order
ii. "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
iii. “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?

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 a. Discipline
b. Order
c. Remuneration to Employees
d. Unity of Direction
iv. 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?
a. Discipline
b. Order
c. Equity
d. None of these
4. Read the following text and answer the questions: [4]

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Radha opens a jewellry showroom in Jaipur after completing a course in jewellry designing. She has employed

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eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each

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employee is trained to perform his/her specialised job. The salespersons 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 Radha as the
final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra

a
hours of work. In return, she had promised to give them a special incentive within a year. Therefore, after six
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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.
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In the context of the above case, answer the following questions:

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i. “For greater productivity, she divides the work into small tasks and each employee is trained to perform
his/her specialised job.” Identify the principle of management that are being applied by Radha here?
a. Division of work
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b. Espite de Copse
c. Remuneration
d. Order
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ii. “The salespersons 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 Radha as the final authority.” Identify the principle of
management that is being applied by Radha here?
a. Division of work
b. Centralization and decentralization
c. Remuneration
d. Order
iii. “Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these
employees to honour her commitment.” Identify the principle of management that is being applied by Radha
here?
a. Division of work
b. Discipline
c. Remuneration
d. Order

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 iv. “However, when it comes to settling the conflicts among her employees, she tends to be more biased towards
her female employees.” Identify the principle of management that are being violated by Radha here?
a. Division of work
b. Discipline
c. Remuneration
d. Equity
5. Raja runs his own company. He wants to become an expert so he buys a few books on management. He comes [3]
to know that with a slight change, all the teachings of management can be applied to every situation of business.
After six months he becomes a better manager. His main concern moves towards his employees: selecting the
best employees, giving them training, preparing them for jobs according to their mindsets and giving them
financial/non financial incentives to bring the best in them. The company makes good growth. After six more

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months he decides to create a suggestion box system to introduce a system where good suggestions will be

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implemented and asks the employees to make efforts from their side.

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a. Which feature of principle of management is highlighted in the above case?
b. Which principle of Taylor has been highlighted in the above case?
c. Which principle of Fayol has been highlighted in the above case?
6.
a
'Great Light' is a bulb manufacturing company. Everything works well for a company which has good human [3]
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resource. Whenever due to some reason less number of employees are present the employees at work divide the
whole work according to their numbers and don't let the company face any shortage of work produced. The
organisation sets an example for all. The organisation however has one drawback in the marketing department.
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The employees many a time don't take any decision from their side with self confidence. However the output of
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the department is good. This is mainly due to proper use of management knowledge of applying proper
delegation that the work efforts are not wasted and all this is because of utilising acquired experience.
a. Which principle of Fayol is maintained here?
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b. Which principle of Fayol is violated above?

c. Which significance of principle of management is highlighted here?
7. Assertion (A): Time study is conducted to find out the average time for doing a task. [1]
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Reason (R): If the worker is able to achieve targets in the standard time, that is an efficient worker.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

8. Assertion (A): The principles of management establish accurate cause and effect relationships. [1]
Reason (R): The principles of management tell us if a particular principle was applied in a particular situation,
what would be its likely effect.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

9. Assertion (A): Unity of Command means One unit on one Plan. [1]
Reason (R): The Principle of Unity of Command reduces the chances of ego clashes among superiors and leads
to more effective working.

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 a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

10. The principle of ________ maintains coordination between various departments. [1]

a) Division of work b) Esprit de Corps

c) Unity of command d) Authority and Responsibility

11. Derivation of principles of management may be said to be a matter of ________ and its creative application may [1]
be regarded as an ________.

a) Art, Science b) Art, Profession

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c) Science, Art d) Profession, Science
12. Statement I: Values are general rules for behaviour of individuals in society formed on the basis of common [1]

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practice and principles after research in work situations.

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Statement II: While practising principles of management, values cannot be neglected as businesses have to
fulfil social and ethical responsibilities towards society.

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Choose the correct option from the options given below:
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a) Both the statements are false. b) Statement I is true and II is false.

A)
c) Both the statements are true. d) Statement II is true and I is false.
13. Statement I: Unity of Command affects the entire organisation. [1]
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Statement II: Unity of Direction affects an individual employee.

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a) Both the Statements I and II are not correct. b) Statement I is correct and Statement II is not
correct.
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c) Both the Statements I and II are correct. d) Statement II is correct and Statement I is not
correct.
14. Statement I: The objective of method study is to find out one best way of doing the job. [1]
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Statement II: Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.
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a) Both the Statements I and II are not correct. b) Statement II is correct and Statement I is not
correct.

c) Statement I is correct and Statement II is not d) Both the Statements I and II are correct.
correct.
15. Which of the following statements is true? [1]

a) Authority is only formal. b) Authority is only informal.

c) Responsibility is only informal. d) Authority is both formal and informal.

16. Which of the following statements is false? [1]
i. Functional foremanship is an extension of the principle of division of work and specialisation to the shop
floor.
ii. Under planning incharge four personnel namely speed boss, gang boss, repair boss, and inspector would
work.
iii. Time Study determines the standard time taken to perform a well-defined job.

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 iv. Cooperation, not individualism is an extension of the principle of harmony, not discord.

a) Option (iv) b) Option (iii)

c) Option (i) d) Option (ii)

17. Which of the following statements is true with reference to principles of management? [1]
i. The principles of management have evolved.
ii. The principles of management are yet to be evolved.
iii. The principles of management are in the continuous process of evolution.

a) Only iii b) i , ii and iii

c) Only ii d) Only i

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18. Goyal Ltd. manufactures motorcycles and cars. It has two separate divisions for both of them. Each division has [1]
its own incharge, plans and execution resources. On no account the working of two divisions overlap. Which

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principle of management is followed by Goyal Ltd.?

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a) Authority and Responsibility b) Unity of direction

c) Unity of command d) Division of work

19.
a
The application of principles has to be changed as per requirements. For example, employees deserve fair and [1]
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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 highlighted above.
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a) Contingent b) General Guidelines

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c) Flexible d) Mainly Behavioural

20. In today's dynamic business environment, companies are specialising in their core competency and divesting [1]
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non-core businesses. In this context, one may cite the decision of Hindustan Unilever Limited in 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,
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manufacturing and marketing are being outsourced today. Thus, significance of Business Process Outsourcing
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(BPO) and Knowledge Process Outsourcing (KPO) has increased.

Identify the principle of management followed by the companies which are outsourcing their non-core and core
activities.

a) Unity of Direction b) Division of work

c) Order d) Initiative
21. State True or False: [2]
(a) Taylor's principles of scientific management and Fayol's principles of management represent different [1]
schools of management thought but their approaches are mutually complementary.
(b) Principles of management are same as techniques of management. [1]
22. Fill in the blanks: [2]
(a) The objective of ________ study is to determine the amount and frequency of rest intervals in [1]
completing the task.
(b) The objective of ________ study is to find out the best way of doing the job which minimises the cost [1]
of production and makes maximum use of available resources.

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Question No. 23 to 26 are based on the given text. Read the text carefully and answer the questions: [4]
Raja joined as a CEO of Janta 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
minimise 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 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 minimise need for using penalties. He told all
present that the interests of the organisation should take priority over the interests of any one individual employee.
23. ...a good company should have an employee suggestion system...
Identify the principle of management given by Fayol, which Raja highlighted above.

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a) Discipline b) Initiative

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c) Stability of personnel d) Equity

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24. ...ensure that all agreements were clear, fair and there was judicious application of penalties.
Identify the principle of management given by Fayol, which Raja highlighted above.

a) Initiative
a b) Stability of personnel
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c) Equity d) Discipline
25. ...wished to minimise employee turnover to maintain organisational efficiency.
Identify the principle of management given by Fayol, which Raja highlighted above.
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a) Discipline b) Stability of personnel

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c) Equity d) Initiative
26. ... believed that lazy personnel should be dealt sternly to send the message that everyone was equal in the eyes of
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management.
Identify the principle of management given by Fayol, which Raja highlighted above.

a) Discipline b) Initiative
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c) Equity d) Stability of personnel

Question No. 27 to 30 are based on the given text. Read the text carefully and answer the questions: [4]
Kavita is a manager in Elpis Ltd, a company manufacturing plastic glasses and bowls. The government banned plastic
items. As a result, Elpis Ltd. incurred a huge loss as it had to stop production of plastic glasses and bowls, and had to
purchase new machinery for producing paper glasses and bowls. The management of the company entered into an
agreement with labour union whereby workers agreed to put in extra hours without additional payment to revive the
company out of loss. In return the management promised to increase wages of the workers when this mission was
accomplished. Kavita found that workers’ efficiency declined due to long working hours. She conducted an experiment
to see the effect of improvement of physical conditions of work to reduce stress. It worked and workers efficiency and
productivity increased manifold. Within two months, the company revived out of loss. The management in return
increased their wages by 30 percent.
27. The management of the company entered into an agreement with labour union whereby workers agreed to put in extra
hours without additional payment to revive the company out of loss. In return the management promised to increase

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 wages of the workers when this mission was accomplished... Within two months, the company revived out of loss. The
management in return increased their wages by 30 percent. Identify the principle of management highlighted above.

a) Discipline b) Authority and Responsibility

c) Unity of command d) Subordination of individual interest to

general interest
28. Kavita found that workers efficiency declined due to long working hours. She conducted an experiment to see the
effect of improvement of physical conditions of work to reduce stress. It worked and workers efficiency and productivity
increased manifold. Identify the principle/technique of management highlighted above.

a) Time Study b) Development of each and every person to

his/her greatest efficiency

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c) Initiative d) Fatigue Study

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29. What nature of principles of management is highlighted in the above case?

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a) Formed by practice and experimentation b) General guidelines

c) Cause and effect relationships d) Mainly behavioural

a
30. Which of the following point of significance of management principles is highlighted in the above case?
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a) Providing managers with useful insights into b) Meeting changing environment
reality requirements
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c) Optimum utilisation of resources d) All of these
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Question No. 31 to 36 are based on the given text. Read the text carefully and answer the questions: [6]
Work is Worship is a leading construction company. The organisation has grown from strength to strength because of its
innovative ideas and scientific approach of working. Ten years back the organisation went through a revolution. All the
:V

operations and activities were properly noticed and the standard time taken to perform them was noted. This took a few
months and now the company could find out the amount of workers required and the number of days to be involved in
the various manufacturing processes. A year later they moved to another level by considering the stress involved in the
lives of the workers. The amount and frequency of rest intervals in finishing a particular task were noted. This helped
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the company in optimizing the rest intervals for the workers so that their outputs could be increased. After six more
months the company decided to reward the efficient workers. A different rate of wage payment was decided for those
workers who performed above the standard. The standard was decided. This led to a revolutionary change in the
perspective of the workers who now started giving their full efforts in order to increase their wages.
31. Who gave the concept discussed in the above para?

a) Stuart Mill b) F.W Taylor

c) Henry Fayol d) Kootz

32. A different rate of wage payment was decided for those workers who performed above the standard.
The Technique identified in above statement violates which principle of management?

a) Order b) Equity

c) Authority and Responsibility d) Scalar Chain

33. Which concept of management has been discussed in the above case?

a) Theories of management b) Principles of Management

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 c) Techniques of Scientific Management d) Principles of scientific management
34. All the operations and activities were properly noticed and the standard time taken to perform them was noted, which
technique of scientific management has been discussed here?

a) Differential piece rate b) Motion study

c) Time study d) Fatigue study

35. The amount and frequency of rest intervals in finishing a particular task were noted, which technique of scientific
management has been discussed here?

a) Time study b) Motion study

c) Differential piece rate d) Fatigue study

36. A different rate of wage payment was decided for those workers who performed above the standard, which technique of

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scientific management has been discussed here?

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a) Motion study b) Fatigue study

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c) Differential piece rate d) Time study

a
Question No. 37 to 40 are based on the given text. Read the text carefully and answer the questions: [5]
Shruti, a student of management at MDI, Gurgaon, likes to relate what she has learnt in her classes during study to real
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life situations around her. She observed many situations while watching educational programmes on television that
remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products
like automobiles, computers and mobile phones were being telecast. These factories had defined benchmarks during
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production and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at
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eliminating superfluous varieties, sizes and dimensions and devising new varieties instead of the existing ones. While
watching the programme, Shruti realized that these companies could adopt one best way of doing the job in order to be
more productive. She also felt that the employees of these companies were working for long hours continuously and
:V

needed to adopt certain strategies in order to improve their efficiency. A study was shown that determines the standard
time taken to perform a well-defined job and at last the programme showed a few interviews where some workers were
found to be highly efficient as compared with a few others.
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37. Name the technique of Scientific Management that these factories are adhering to while manufacturing parts for such
products.

a) Motion Study b) Method Study

c) Standardisation and simplification of work d) Time Study

38. Which Scientific Management technique would Shruti recommend for these factories if they have to find out one best
way of doing the job?

a) Motion Study b) Fatigue Study

c) Method Study d) Time Study

39. Which Scientific Management technique would Shruti suggest for these factories if they have to help the workers regain
their stamina and enable them to work again with the same capacity?

a) Time Study b) Motion Study

c) Method Study d) Fatigue Study

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40. Which Scientific Management technique would Shruti advise these factories to implement in order to motivate the
inefficient workers to perform better?

a) Functional foremanship b) Method Study

c) Differential Piece Wage System d) Time Study

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CG nd a
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