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Class 12 - Business Studies

Term 1 - Principles of Management - 01

1. Principles of management cannot be:

a. Defined
b. Part of business
c. Tested in Laboratories
d. Applied Everywhere
2. On what basis the principles of management were derived?
a. In the field of business
b. Both in a business non-business field
c. None of these
d. In the non-business field
3. The principle which states that there should be good supervisors at all levels for the smooth and
systematic working of an organization is:
a. Order
b. Equity
c. Discipline
d. Initiative
4. Professional courses such as BBA also teach principles of management as a part of their curriculum at
the beginner’s level. Identify the significance of the principles of management highlighted in this
statement.
a. Providing managers with useful insight into reality
b. Meeting changing environment requirements
c. Effective administration
d. Management training, education and research
5. The principles of management can be changed according to the prevailing situation in the
organization. This shows that management principles are:
a. Scientific
b. Universal
c. Flexible
d. Behavioral
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6. Taylor's philosophy of scientific management includes ________.
a. Planning the task
b. Standardisation of tools
c. Scientific task setting
d. All of these
7. She/he keeps machines, materials, tools, etc., ready for operations by concerned workers. Whose work
is described by this sentence under functional foremanship?
a. Instruction Card Clerk
b. Gang Boss
c. Repair Boss
d. Route Clerk
8. Henri Fayol was a:

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a. Social Scientist
b. Accountant
c. Mining Engineer
d. Production engineer
9. Which company did Taylor join in America in 1878 as a labourer?
a. Midvale Steel Company
b. American Steel Company
c. Bethlehem Steel Works
d. None of these
10. What was the title of the research paper written by Taylor in 1903?
a. Production management
b. Shop management
c. Office management
d. Factory management
11. What study did Taylor make to set a standard time for work?
a. Time study
b. Motion study
c. Method study
d. Fatigue study

For question numbers 12-16, two statements are given- one labeled Assertion (A) and the other labeled
Reason (R). Select the correct answer to these questions from the codes (a), (b), (c) and (d) as given
below:
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a. Both A and R are true and R is the correct explanation of A.

b. Both A and R are true but R is not the correct explanation of A.
c. A is true but R is false.
d. A is false but R is true.

12. Assertion (A): Violation of the Principle of Equity leads to an increase in Employees' turnover.
Reason (R): Promoting male employees without considering female employees doesn't lead to violation of
the Principle of Equity.
13. Assertion (A): The interest of the organisation must supersede the interest of its employees.
Reason (R): If the objectives of both the group are in different directions then managers must try to
reconcile organisational goal with individual interest.
14. Assertion (A): Taylor suggested the division of the factory into two departments: Planning and Production.
Reason (R): It will reduce the chances of conflicts between them.
15. Assertion (A): Time period and frequency of rest intervals should be decided by the manager according to
the experience gained by him.
Reason (R): ​​The level of efficiency of workers will increase if they get a break between two shifts.
16. Assertion (A): Unity of Command means One unit on one Plan.
Reason (R): The Principle of Unity of Command reduces the chances of ego clashes among superiors and
leads to more effective working.

Answer questions 17-20 based on the following case study:

Read the following text and answer the questions:

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Mukesh is working as Head Relationship Manager in the wealth management division of a private sector bank.
He has created an internal environment that is conducive to an effective and efficient performance of his team
of ten relationship management executive” A typical day at work in Mukesh’s life consists of a series of
interrelated and continuous functions. He decides the targets for his department which are in line with the
objectives of the organization as a whole. The future course of action for his team members is laid out well in
advance. The various resources required by the relationship managers like an iPad with GPS system, account
opening forms, brochures, details of account holders etc. are made readily available to them. The executives are
given sufficient authority to carry out the work assigned to them. Mukesh works in close coordination with the
Human Resource Manager in order to ensure that he is able to create and maintain a satisfactory and satisfied
workforce in his department. Through constant guidance and motivation, Mukesh inspires them to realize their
full potential. He offers them various types of incentives from time to time keeping in view their diverse
individual needs. Moreover, he keeps a close watch on their individual performances in order to ensure that
they are in accordance with the standards set and takes corrective actions whenever needed. In the context of
the above case:

17. At what level is Mukesh working in the organization:

a. Top Level
b. Middle Level
c. Lower Level
d. None of the above
18. Identify the concept being referred to in the following line, “He has created an internal environment which
is conducive to an effective and efficient performance of his team of ten relationship management
executives.”
a. Coordination
b. Management
c. Controlling
d. None of the above
19. Identify the concept being referred to in the following line, ”Moreover, he keeps a close watch on their
individual performances in order to ensure that they are in accordance with the standards set and takes
corrective actions whenever needed.”
a. Planning
b. Organizing
c. Staffing
d. Controlling
20. Identify the concept being referred to in the following line, “Mukesh works in close coordination with the
human resource manager in order to ensure that he is able to create and maintain a satisfactory and
satisfied workforce in his department.”
a. Planning
b. Organizing
c. Staffing
d. Controlling

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Term 1 - Principles of Management - 01

Class 12 - Business Studies

Solution

1. (c) Tested in Laboratories

Explanation:
Principles of management cannot be tested in laboratories as these principles are applied on
human behaviour.
Principles of management are formed by experience and collective wisdom of managers as
well as experimentation.
These can be applied and tested in real life situation rather than in laboratories.
2. (b) Both in a business non-business field
Explanation: Principles of management were derived both in the field of business and non-business
field.
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3. (c) Discipline
Explanation: Discipline principle of management.
4. (d) Management training, education and research
Explanation: Management training, education and research applies here.
5. (c) Flexible
Explanation: Management principles are Flexible.
6. (d) All of these
Explanation: All of these
7. (b) Gang Boss
Explanation: Gang Boss keeps machines, materials, tools, etc., ready for operations by concerned
workers. Whereas
Repair Boss ensures the proper working condition of machines and tools.
Instruction Card Clerk draft instructions for the workers.
Route Clerk specify the route of production.
8. (c) Mining Engineer
Explanation:
Henry Fayol was a mining engineer.
He graduated from the mining academy of St. Etienne in 1860 in mining engineering.
The 19 year old engineer started the mining company ‘Compagnie de commentary-
Fourchambean Decazeville, ultimately acting as its managing director from 1888 to 1918.
9. (a) Midvale Steel Company
Explanation: Midvale Steel Works Company
10. (b) Shop management
Explanation: Shop Management was the title of the research paper written by Taylor in 1903.
11. (a) Time study
Explanation: Time study by Taylor.
12. (c) A is true but R is false.
Explanation: Considering only male employees for promotion is a violation of the principle of equity.
Women are as much competent as men and promotion should be based on their performance and past
records not on their gender.

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13. (c) A is true but R is false.

Explanation: Organisational Goal is the most important in any organisation. If the goals of the
organisation and its employees are in a different direction then individual goals must be sacrificed for
achieving organisational goals.
14. (c) A is true but R is false.
Explanation: Taylor suggested division of factory into planning and production departments because
it will keep the workers free from the burden of planning and they can concentrate on work and
production.
15. (d) A is false but R is true.
Explanation: The time period and frequency of rest intervals should be decided by conducting a
proper fatigue study that is more scientific.
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16. (d) A is false but R is true.
Explanation: Unity of Command means 'One boss on one Subordinate'. 'One unit on one plan' is the
emphasis of the Principle of Unity of Direction.
17. (b) Middle Level
18. (b) Management
19. (d) Controlling
20. (c) Staffing

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