CHAPTER -2

MCQs
1.The principles of management aren’t rigid and can be modified when the situation demands. Which nature
of principles is being discussed here?

2. State any three reasons as to why proper understanding of management principles is necessary?

3.Principles of management are NOT:

(a) Applicable only in large firms (c) Flexible
(b) Formed by practice and experience of managers (d) Contingent

4.Vidhya Public School is a renowned school in Nagpur. The management recently appointed a new
Business Studies teacher, Shweta, to teach classes XI and Xil and gave her a monthly salary of 50,000.
Shweta is not satisfied with it and said The salary is not just and equitable as per the amount of work
required to be done by a Business Studies teacher. Other schools in the city are paying 70,000 to their
teachers teaching classes XI and XII: Name the principle of management that has been violated by Vidhya
Public School in the above case:
a) Discipline (b) Equity (c) Remuneration of Employees (d) Esprit de corps

5. Name the principle of management given by Fayol which when applied would mean that the workers and
management both honour their commitments without any prejudice towards one another.
(a) Discipline (b) Remuneration of employees (c) Mental Revolution (d) Scalar chain

6. In Shalleen Pvt Ltd., there is one head Shalleen who has two lines of authority under her. One line
consists of Sara-Rajat Abhishek-Ismail-Chris. Another line of authority under Shalleen is Lata-Rupa-Geet-
Hussain-Preeti. According to a Principle of Management given by Fayol, if Ismail has to communicate with
Hussain who is at the same level of authority then illustrate the route he will have to traverse.
(a) Ismail- Abhishek-Rajat-Sara-Shalleen-Lata-Rupa- Geet -Hussain
(b) Hussain-Geet Rupa Lata Shalleen-Sara-Rajat-Abhishek-ismail
(c) Ismail-Chris Shalleen Preeti Hussain
(d) Idi Ismail-Abhishek Rajat-Sara-Lata-Rupa-Geet-Hussain

7. Identify the principle of management given by Fayol according to which "The intent of this principle is to
produce more and better work with the same effort.
(a) Division of work (b)Scalar chain (c) Unity of direction (d) Equity

8. This principle will give rise to a spirit of mutual trust and belongingness among team members.
Which principle of management stated by Fayol is highlighted by this statement?
(a) Initiative (b) Equity (c) Esprit de Corps (d) Remuneration of Employees

9.Taylor believed that there was only one best method to maximise efficiency. This method can be
developed through study and analysis. Identify the principle of scientific management being discussed
above:
(a) Harmony not discord
(b) Science not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) Cooperation not individualism

10. The objective of which of the following techniques of scientific management is to determine the number
of workers to be employed in an organisation?
a. Method study b.Time c. Motion d. differential piece wage system
b.
11.The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from the employees at a
competitive cost. On the other hand, Ramakaant, an employee of the company wants to get the maximum
salary while working the least. The Principle of management given by Fayol being violated by Ramakaant
is.
(a) Remuneration (b) Equity (c) Discipline (d) Subordination of individual interest to general interest

12. The principle of management given by Fayol which aims at preventing overlapping of activities is
(A) Order (B) Division of work (C) Unity of Command (D) Unity of Direction

13. Taylor proposed eight specialists from whom each worker will have to take orders from as part of the
technique of Functional Foremanship specified by him. Those with technical, mastery, intelligence and grit
may be given work. Those with energy and good health may be assigned work.

(a) Planning, Execution (B) Production, Planning

(C) Execution, Planning (D) Implementation, Production

14.Scalar Chain refers to

(a) Chain of authority and communication that runs from top to bottom
(b) Formal lines of authority from highest rank to the lowest rank
(c) Both (a) and (b)
(d) None of the above

15.The technique of Scientific Management given by Taylor, which aims to establish interchangeability of
manufactured parts and products is
(a) Method Study (b) Standardisation (C) Motion study (d) Differential Piece wage system.

16.The concept of 'Mental Revolution, as prescribed by Taylor, involves a change in the mindset of:
(a) Workers towards the management
b) Management towards the workers
c) Workers and management towards one another from competition to cooperation
d) Customers towards the management of the organization

17. Flavours of South' is a famous chain of South Indian restaurants. It believes in complete co-operation
between the labour and management. It's management encourages the employees for their constructive
suggestions. They take their employees into confidence for all important decisions. Which principle of
scientific management has been followed by 'Flavours of South?
(a) Science, not rule of Thumb
(b) Harmony, not Discord
(c) Co-operation, not Individualism
(d) Development of each and every person to his or her greatest efficiency and prosperity

18. Pioneer Ltd. is dealing in fruit juices and hair oils. To ensure unity of action and coordination, it has
made two separate divisions for each product. Each division has its own incharge, plans and execution
resources. Thus, both the divisions are moving towards the same objectives through focused efforts. Identify
the Principle of management followed by Pioneer Ltd. in the above case.
(a) Esprit de corps (b) Unity of Direction (c) Equity (d) Authority and Responsibility

19. Heyday Productions' is a big factory having 3,000 workers. Management of this factory wants that
workers should not go on strikes for their unreasonable demands. There should be almost equal division of
work and responsibility between workers and management and both of them have to realise that they need
each other. To replace the competition by cooperation, management must give importance to those
constructive suggestions made by employees which should result in reduction of cost. Identify the Taylor's
principle of management applied by 'Heyday Productions':
(a) Initiative
( b) Cooperation, not individualism
(c) Development of each and every person to his/her greatest efficiency and prosperity
(d) Subordination of individual interest to general interest

20.Flavours of South' is a famous chain of South Indian restaurants. It believes in complete co-operation
between the labour and management. It's management encourages the employees for their constructive
suggestions. They take their employees into confidence for all important decisions. Which principle of
scientific management has been followed by 'Flavours of South'?
(a) Science, not rule of Thumb
(b) Harmony, not Discord
(c) Co-operation, not individualism
(d) Development of each and every person to his or her greatest efficiency and prosperity

21. In the technique of Functional Foremanship advocated by Taylor, the four personnel who work under
Planning Incharge are:
(a) Disciplinarian, Instruction Card Clerk, Time and Cost Clerk, Route Clerk
(b) Speed Boss, Gang Boss, Repair Boss, Inspector
(c) Route Clerk, Time and Cost Clerk, inspector, instruction Card Clerk
(d) Speed Boss, Gang Boss, Repair Boss, Disciplinarian

22. This statement describes the following point of significance of Principles of Management:

A. Fulfilling social responsibility

B. Meeting changing environment requirements
C. Scientific decisions
D. Optimum utilisation of resources and effective administration

23. In 'Delight Ice Creams Ltd, decision-making authority is concentrated at the top level and no authority
has been delegated among the subordinates. On the other hand, in 'Tasty Ice Creams Ltd, a big organisation
as compared to Delight Ice Creams Ltd; decision-making authority is always delegated among more than
one person, identify the principle of management discussed above.
(a) Stability of Personnel (b) Authority and Responsibility (c) Centralisation and Decentralisation
(d) Scalar Chain
CASE STUDIES

1.Which principle is being overlooked by Mohan, a manager, in the following cases:

(1) He expects his subordinates to adapt to new environments and working conditions without giving them
time to settle down.
(2) He expects his subordinates to work for the happiness and pleasure of being in the organisation.
(3) He does not distribute the work amongst his subordinates, either according to capability or
proportionately.
(4) He is very lax (careless) with his fellow employees and subordinates. He does not give them parameters
of rules for reporting to work and completion of assignments.
(5) He often speaks to people at all levels, passing on instructions regarding his department and also other
departments.
(6) He neither has a systemn of keeping his equipment nor people at a prescribed place.
(7) He expects his colleagues to get work out of subordinates without giving them any powers
(8) He expects his colleagues to get work out of subordinates and yet has a differential treatment for each
person.

2.Name and explain the principle of management:

(I) In which workers should be encouraged to develop and carry out their plans for improvements in the
organisation?
(II) Which requires judicious application of penalties by the management?
(III) Which points out the danger and costs of unnecessary labour turnover?
(IV) Which aims at securing the loyalty and devotion of the employees by giving them kind, fair and just
treatment?
(v) Which says: "We should not have multiple bosses, as it will lead to divided responsibility?

3. Name and explain the technique of scientific management which:

(i) Helps in establishing interchangeability of manufactured parts and products.
(ii) Helps in eliminating unnecessary diversity of products and thus results in saving cost.
(iii) is an extension of the principle of division of work and specialisation.
(iv) Overlooks the principle of equity.
(v) is in direct contrast to unity of command.
(vi) Stresses on paying higher wages to efficient employees.
(vii) Aims to find most optimum way of doing a job.
(viii) Determines the time needed to perform a well defined job.
(ix) Determines movements involved in performing a job.

4.Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee
shop'Aroma Coffee Can'in a famous mall in New Delhi. 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. 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, within 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.

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

A. Identify and briefly explain any four principles of management given by Fayol, which Rajat highlighted
in his address to the employees.
B. Also state two values that Rajat wanted to spread in the organisation.

6.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 specialisation.
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.
7.Flavours Ltd. was engaged in the business of making handmade chocolates. Lately, the business was
expanding due to good quality and reasonable prices. As the demand was increasing, Flavours Ltd. decided
to explore bakery products as well. In order to make bakery products the company directed its workforce to
work overtime but this resulted in multiple problems. Due to increased pressure the efficiency declined and
the workers had to take orders from more than one superior. Workers were overburdened and their health
was also affected. Gradually the quality of the products begins to decline and market share also went down.
The company realised that they had implemented changes without waiting for the required infrastructure.

Identify and explain the principles/technique of Taylor/Fayol referred to in the above para.

8. 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 customen 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.

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