NCERT Questions for Class 12 Business Studies Chapter 2 – Principles of Management

Important Questions with Solutions of Class 12 Business Studies Chapter 2 – Principles of Management

1) Why are principles of management described as ‘mainly behavioral’ & ‘contingent’ in nature? Additionally, how do these principles offer managers valuable data into reality & assist in sensible decision-making?

Ans – Management concepts are predominantly behavioral & dependent. They also give managers crucial insights into reality, that help in making informed decisions. Here’s the explanation:

Action Focused: Management principles describe the interaction between human & physical resources by focusing on changing human behavior to attain company goals.

Situational Applicability: The implementation of management concepts is determined by the unique conditions and demands of the situation, making them flexible in numerous situations.

Empirical Basis: These principles are formed via testing and actual application, and they provide managers with guidance, ideas, and tips for effectively addressing comparable business difficulties.

Evidence-Based: Management concepts are based on experiments, observations, and logical analysis, allowing managers to make realistic, timely, and objective assessments of events, which lead to informed decisions.

2) What are the principles of scientific management?

Ans – The principles of scientific management can be defined as follows:

Scientific Approach: Instead of using the hit-and-trial technique, every work in an organization should be completed based on scientific research and analysis. This involves creating a scientific strategy and using standardized equipment to improve efficiency and effectiveness. Management can simplify duties and improve performance with new approaches rather than depending on outdated practices.

Mutual Understanding: Management and employees must have a strong understanding and trust. When both sides collaborate peacefully, it greatly benefits achieving organizational goals.

Teamwork: Based on the concept of harmony, this principle highlights the need for people in the company to work together to achieve common goals. Management and employees must work together to attain the definite goals efficiently and effectively.

Employee Development: Organizations should hire people with the abilities and skills required for their positions. Employees should get continuous on-the-job training to increase productivity and motivate growth, ensuring people accomplish their desired potential.

3) Give an overview of ‘discipline’ & ‘scalar chain’ as general management principles.

Ans – The concepts of ‘discipline’ and ‘scalar chain’ in general management are explained as follows:Discipline: Following organizational regulations and the conditions of employment agreements while working for the company. To maintain discipline, a company must provide enough supervision, make clear and fair agreements, and apply appropriate penalties. Effective discipline is required for a smooth and effective operation.

Scalar chain: The scalar chain concept highlights that an organization should have a clear line of power and communication from top to bottom. The hierarchical chain of command enables effective interaction and authority flow. In an emergency, however, persons with the same authority levels in separate departments can skip this chain (using the ‘gangplank’ concept) and increase decision-making.

4) Justify ‘Unity of Direction’ & ‘Order’ as the concept of general management.

Ans – The idea of ‘Unity of Direction’ & ‘Order’ in general management are described as:

Unity of Direction: Every department or set of operations requires the same goal to have its plan guided by a single manager. This principle that applies the concept of “one head, one plan” to each set of activities, ensures coordinated efforts to achieve corporate goals.

Order: The concept of order will highlight the need for systematic organization. It means that each of the resources should have its own designated location. For example, in a plant layout, if production is planned to start with Machine 1 followed by Machine 2, these machines should be close to each other. Distance between machines can create production delays, reduce productivity, and increase expenses.

5) Explain the principle illustrated by the example of a company manufacturing motorcycles and cars, which should have separate divisions for each, headed by separate divisional managers, with distinct plans and resources.

Ans – The Principle of Unity of Direction states that any process with the same goal should be managed by one manager using a single plan. This can ensure that efforts and resources are effectively coordinated and directed towards the common goals.

6) In XYZ Limited, a company manufacturing computers, the directors tasked the sales manager with doubling sales & didn’t grant the manager the authority to increase sales expenses or hire additional sales staff. As a result, the sales target isn’t attained. Mention the violated principle in this scenario.

Ans – The principle violated in this scenario is the Principle of Authority and Responsibility.

7) What are the key features of management principles?

Ans – The primary characteristics of management principles are as follows:

Global Adaptability: Management concepts are generally relevant to a wide range of organizations, including businesses, and non-profits for small & big enterprises. They are useful to multiple organizational levels and may be tailored to management scenarios.

General Rules: These principles offer broad and general feedback to help businesses handle & resolve business challenges. Management ideas come from observation, experimentation, and practical experience. They are a result of managers’ long-term experience and constant practice.

Flexibility: Management ideas are adaptable to meet individual demands. Managers can creatively apply these ideas to address business challenges.

Behavioral Focus: While management principles address the interaction of human and physical resources, they mainly impact human behavior in achieving organizational goals.

Cause and Effect Relationship: These concepts establish clear cause & effect relationships, allowing them to be used in various scenarios by knowing the effects of diverse management actions.

Contingent Nature: Management concepts are not absolute; they depend on the unique context and circumstances at any given time. Their use may vary based on the circumstances.

8) Why are management principles considered ‘mainly behavioral’ & ‘contingent’ in nature? Also, how do these principles offer managers valuable insights into reality & assist in sensible decision-making?

Ans – Management principles are seen as ‘mainly behavioral’ & ‘contingent’ due to their foundational qualities, and they play a vital role in giving managers essential data & helping with decision-making. This is a full explanation:

Behavioral: Management concepts are largely concerned with influencing and understanding human behavior within an organization. While they address the interaction between human and physical resources, their main effect is to guide and shape human behaviors to accomplish corporate goals.

Contingent: The application of management concepts depends on specific circumstances and conditions. These principles are not strict laws being flexible suggestions that must be altered to meet an organization’s desired needs and conditions.

Insights into Reality: Management concepts come from considerable experimentation and practical experience. They provide useful insights and guidance for addressing real-world business challenges, allowing managers to navigate comparable situations with trained strategies.

Informed Decision-making: Management principles, which are based on facts, observations, and logical reasoning, allow managers to make good choices. They give a realistic and objective appraisal of events, resulting in better-informed and successful decision-making processes.