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NCERT Solutions for Class 12 Business Studies Chapter 2 Principles of Management
Class 12 Business Studies Chapter 2 Princples of Management
NCERT Solutions for Class 12 Business Studies Chapter 2 on Principles of Management has been updated for the new academic session 2023-24. These solutions provide simplified answers to all the questions in Class 12 Business Studies Chapter 2. You can access these solutions for free without any login.
The Memorysclub provided comprehensive explanations and step-by-step solutions to all the questions of answers for this chapter. These solutions are provided by subject experts in a well-structured manner, making it easier for students to learn and understand.
Very Short Answer Questions NCERT Business Studies Solutions Class 12 Chapter 2
1. What makes principles of management flexible?
The principles of management are not rigid prescriptions that have to be universally applied in a specific manner. They are flexible and can be modified by the manager when the situation demands. They provide general guidelines and frameworks that can be adapted to different situations, organizational structures, and contexts.
2. State the main objective of time study.
It determines the standard time taken to perform a well-defined job. Time-measuring devices are used for each element of the task. The standard time is fixed for the whole of the task by taking several readings. The objective of the time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labor costs.
3. Name the principle that is an extension of the ‘harmony, not discord’.
The principle that is an extension of “harmony, not discord” is often referred to as the “Esprit de Corps” principle. “Esprit de Corps” is a French term that translates to “spirit of the group” or “team spirit.” This principle emphasizes the importance of fostering a sense of unity, camaraderie, and teamwork among the members of an organization.
4. State any two causes of fatigue that may create hindrance in the employee’s performance.
Here are the two causes of fatigue that may create hindrances in the employee’s performance
- Long working hours
- Doing unsuitable work
- Having uncordial relations with the boss or bad working conditions
5. Sanaklal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.
The principle of management followed by Wales Limited, where Sanaklal and Gagan are given one year to prove themselves without prior work experience, aligns with the principle of “Unity of Command” and the concept of a probationary period.
6. Which technique is used by Taylor for distinguishing efficient and inefficient workers?
Taylor was a strong advocate of the Differential Piece Wage System. He wanted to set a reward system for efficient workers. So he introduced different rates of wage payment for those who performed above standard and for those who performed below standard.
Short Answer Questions NCERT Business Studies Solutions Class 12 Chapter 2
1. How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.
Unity of command is a principle of management that each participant in a formal organization should receive orders from and be responsible to only one superior. If an employee gets orders from two superiors at the same time, the principle of unity of command is violated. He said that if this principle is violated, authority is undermined, discipline is in jeopardy, order is disturbed, and stability is threatened. Therefore, to sustain a steady workflow and uninterrupted operations in the organization, unity of command is essential for management.
2. Define scientific management. State any three of its principles
The primary focus of scientific management is to enhance efficiency and productivity in organizations through systematic approaches to work processes and the scientific analysis of tasks.
Here are three principles of scientific management
Science is not a rule of thumb: When multiple managers use their methods to complete work, it is considered a rule of thumb. Frederick Taylor, a management consultant, believed that there was only one best method to increase efficiency. Taylor suggested that every organization should compare the results of different methods, test them repeatedly, and then choose the best method for getting the job done.
Harmony, Not Discord: Managers act as a link between workers and owners, but conflicts can arise. To avoid this, both parties should work towards a mental shift and strive to understand and value each other. This is known as a mental revolution and can promote a positive work environment.
Cooperation, not individualism: There should be complete cooperation between the workers and the management instead of individualism. This principle is an extension of the principle of ‘Harmony, not discord’. Competition should be replaced by cooperation. Both should realize that they need each other.
3. If an organization does not provide the right place for physical and human resources in an organization, which principle is violated? What are the consequences of it?
The principle of order is breached when an organization fails to allocate the appropriate place for its physical and human resources. If this principle is not adhered to, various negative consequences may arise, such as wasting a lot of time trying to locate different resources, which in turn can lead to delayed decisions. Additionally, it may result in the wastage of energy, causing inefficiency and production delays. Furthermore, it can cause hindrances to business activities.
4. Explain any four points regarding the significance of Principles of Management.
The principles of management hold significant importance and can be discussed in terms of the following points:
Providing managers with useful insights into reality: The principles of management provide managers with useful insights into real-world situations. Adherence to these principles will add to their knowledge, ability, and understanding of managerial situations and circumstances. It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly.
Optimum utilization of resources and effective administration: Optimum utilization of resources is vital for the company as human and material resources are limited. They have to be put to optimum use. By optimum use, we mean that the resources should be put to use in such a manner that they should give maximum benefit with minimum cost.
Scientific decisions: Decisions must be based on facts, thoughtful, and justifiable in terms of their intended purposes. They must be timely, realistic, and subject to measurement and evaluation. Management principles help in thoughtful decision-making. They emphasize logic rather than blind faith. Management decisions taken on the basis of principles are free from bias and prejudice. They are based on an objective assessment of the situation.
5. Explain the principle of ‘Scalar Chain’ and gang plank.
Scalar Chain:
The principle of Scalar Chain is a concept in management that emphasizes the importance of maintaining a clear and unbroken chain of command within an organization. According to this principle, authority and communication should flow in a continuous line from the highest level of management to the lowest. Each employee should be aware of their position in the hierarchy and the individuals they report to and receive instructions from.
GangPlank:
The concept of the Gang Plank is related to the Scalar Chain but addresses situations where the traditional chain of command may be temporarily bypassed to facilitate quick and effective communication during emergencies or specific circumstances. The Gang Plank creates a direct lateral connection between two individuals or departments to address an urgent issue without following the usual hierarchy.
Long Answer Questions NCERT Business Studies Solutions Class 12 Chapter 2
1. Explain the Principles of Scientific management given by Taylor.
The primary focus of scientific management is to enhance efficiency and productivity in organizations through systematic approaches to work processes and the scientific analysis of tasks.
Here are three principles of scientific management
Science is not a rule of thumb: When multiple managers use their methods to complete work, it is considered a rule of thumb. Frederick Taylor, a management consultant, believed that there was only one best method to increase efficiency. Taylor suggested that every organization should compare the results of different methods, test them repeatedly, and then choose the best method for getting the job done.
Harmony, Not Discord: Managers act as a link between workers and owners, but conflicts can arise. To avoid this, both parties should work towards a mental shift and strive to understand and value each other. This is known as a mental revolution and can promote a positive work environment.
Cooperation, not individualism: There should be complete cooperation between the workers and the management instead of individualism. This principle is an extension of the principle of ‘Harmony, not discord’. Competition should be replaced by cooperation. Both should realize that they need each other.
2. Explain the following Principles of management given by Fayol with examples: (a) Unity of direction (b) Equity (c) Esprit de corps (d) Order (e) Centralisation and decentralization (f) Initiative
Let’s explore each of the principles of management given by Henri Fayol with examples:
Unity of Direction: This principle states that every unit in the organization should work towards achieving a common business objective. It helps to prevent duplication of work and increases profitability. For example, a company producing two different products should have separate management for each.
Equity: This principle focuses on treating all employees equally, regardless of their religion, caste, creed, etc. It promotes harmony among workers. For instance, workers from different religions should receive equal treatment in a company.
Esprit de corps: Esprit de corps: This principle states that employees in an organization should work with each other and maintain unity. Managers need to promote teamwork and collaboration among all resources to improve team spirit.
Centralization and Decentralization: Centralization is the concentration of power or authority in the hands of selected people in an organization. Decentralization is the shifting of authority to middle and lower levels of management. For instance, if the CEO has all decision-making powers, it is centralization. If the decision-making power is distributed to managers of middle and lower levels, then it is decentralization.
Initiative: According to this principle, workers should be motivated and provided incentives. They should be encouraged to suggest points for improvement, which will make them take more initiative for the development of the organization.
3. Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.
Functional Foremanship is a concept that was advocated by Taylor. It involves the separation of planning and execution functions, which is extended to the lowest level of the shop floor. Under the factory manager, there are two key roles, the planning in charge and the production in charge.
The planning in charge oversees the following functions:
(i) The Instruction Card Clerk who drafts instructions for the workers.
(ii) The Route Clerk who specifies the route of production.
(iii) The Time and Cost Clerk who prepares the time and cost sheet.
(iv) The Disciplinarian who ensures discipline.
The production in-charge oversees the following functions:
(i) The Speed Boss who ensures timely and accurate completion of work.
(ii) The Gang Boss who keeps tools and machines ready for operation by workers.
(iii) The Repairs Boss who ensures proper working conditions of machines.
(iv) The Inspector who checks the quality of work.
Mental Revolutions
Taylor also emphasized the need for a ‘Mental Revolution’ in factories, where managers serve as a link between the owners and workers, and sometimes face problems in getting work done. He believed that there should be harmony between management and workers, and both should realize the importance of each other. To achieve this, both parties needed to change their thoughts about each other. Management should share the gains of the company with the workers, and workers should work hard and be ready to accept any change made for the betterment of the organization.
4. Discuss the following techniques of Scientific Work Study:a. Time Study b. Motion Study c. Fatigue Study d. Method Study e. Simplification and standardization of work
Time Study – It determines the standard time taken to perform a well-defined job. Time-measuring devices are used for each element of the task. The standard time is fixed for the whole of the task by taking several readings. The objective of the time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labor costs.
Motion Study – Motion study refers to the study of actions like lifting, putting objects, sitting and changing positions, etc., which are undertaken while doing a typical job. Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.
Fatigue Study – If a person does not take breaks while working, they are likely to feel physically and mentally tired. Taking regular rest intervals can help regain stamina and work with the same capacity, ultimately resulting in increased productivity. The study of fatigue aims to determine the appropriate amount and frequency of rest intervals required to complete a task.
Method Study – The objective of method study is to find out one best way of doing the job. There are various methods of doing the job.
Procurement of raw materials
Cost of production
Maximize the satisfaction of the customer
Simplification and standardization of work – Standardization is the process of establishing standards for all business activities, including processes, raw materials, time, products, machinery, methods, and working conditions.
The objectives of standardization are
(i) To reduce the product to fixed types, sizes, features, etc.
(ii) To establish interchangeability of various parts.
6. Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.
The principles developed by Fayol and Taylor continue to play a significant role in today’s business environment. These principles offer valuable guidance to managers when making decisions and taking appropriate actions. Although these principles are not meant to be used exactly as described, they provide managers with a framework to approach different situations. By applying these principles, managers can make decisions that are backed by facts and logic, making them more applicable in various scenarios. These principles are based on human behavior and have broad applicability across industries, offering insights into both human and material resources. They help businesses improve their effectiveness and efficiency while minimizing resource use and costs, leading to the overall growth and development of the organization.