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NCERT Solutions for Class 12 Business Studies Chapter 2: This article brings to you accurate NCERT Solutions for Class 12 Business Studies Chapter 2, Principles of Management. Find attached a PDF download link for all NCERT Solutions of the chapter. These solutions are important for students appearing in CBSE Board Examination 2024. You can find detailed answers of each NCERT question, refined and prepared for you by our subject experts.
Principles of Management covers in-depth discussion on principles laid down by Fayol and Taylor. Understanding of these principles can make you a management enthusiast. Some important topics from the chapter, for upcoming CBSE Board Examinations 2024 are:
- Nature of principles of management
- Taylor’s Scientific Management
- Principles of Scientific Management
- Techniques of Scientific Management
- Fayol’s principles of management
- Comparison between Fayol and Taylor
Thorough study of these chapters can help you solve NCERT Solutions and also score well in the upcoming Board Examinations of 2024.
Related:
CBSE Class 12 Business Studies Revised Syllabus 2023-2024 (PDF)
CBSE Class 12 Business Studies Sample Paper 2023-2024(PDF)
Find below NCERT Solutions for Class 12 Business Studies Chapter 2
Very Short Answer Type:
1.What makes principles of management flexible?
Answer. Principles of management are not static, they can be changed, revised and updated as and when required by the manager. Principles of Management deals with human behaviour which is never constant and has to be applied creatively. It also has to deal with technology which again keeps updating itself. Thus, principles of management have to be altered as per the changing environment of business and employees.
2.State the main objective of time study.
Answer. The main objective of time study is to determine the standard time taken to perform a job well. It is then used determine the number of workers to be employed, determine labour costs and frame incentive schemes.
3.Name the principle that is an extension of the ‘harmony, not discord’.
Answer. Cooperation, Not individualism is the principle that is an extension of the ‘harmony, not discord’.
4.State any two causes of fatigue that may create hindrance in the employee’s performance.
Answer. Two causes of fatigue that may create hindrance in the employee’s performance are:
a. Long working hours or doing unsuitable work
b. 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.
Answer. The principle of management followed by Wales Limited is ‘Stability of Personnel’. According to Fayol, an employee should be hired after rigorous recruitment process, but after selection should be given enough time to prove himself/herself. They should be given stability of a sufficient amount of time. It is also stated as minimizing employee’s turnover to maintain organizational efficiency. Fayol also states that any adhocism in this regard can create instability in the minds of employees and they tend to leave the organization.
6.Which technique is used by Taylor for distinguishing efficient and inefficient workers?
Answer. Differential Piece Wage System, technique used by Taylor distinguishes between efficient and inefficient workers.
Short Answer Type:
1.How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.
Answer. According to Fayol, the principle of ‘Unity of Command’ states that an organization must have only one boss and employees should receive orders from only one boss or one person who commands. If an individual gets orders from two bosses at the same time, then unity of command principle is violated. Fayol found this principle important and said that if this principle is violated then the organization’s authority is undermined, discipline is in jeopardy, order is disturbed and stability is threatened. The main aim of this principle is to avoid the confusion of tasks. For example: if a person has to receive command from two bosses, he/she would be in a dilemma of which task to do first, what amount of time should be allocated to each task and more. This disturbs smooth functioning of an organization and individual’s creativity as a whole. Unity In command ensures co-ordination between departments as well. Thus, because of all the above stated reasons, principle of ‘Unity of Command’ is useful to management.
2.Define scientific management. State any three of its principles.
Answer. Scientific Management refers to scientific analysis of work to find one best way to do it. Taylor, defined scientific management as ‘knowing exactly what you want men to do and seeing that they do it in the best and cheapest way. He would break a job into its component parts and measure each to the second. Three principles of scientific management are:
a. Science not Rule of Thumb– In earlier days of Industrial Revolution, when no established theory about factories existed, factory owners and managers through personal judgement tried to solve the problem in the course of management. They referred to this as ‘Rule of Thumb’. This helped them to manage their companies but posed certain limitations on the approach. Then, they decided that there was a need to follow an approach that was based on science. According to rule of thumb, different managers would use their own rule of thumb among which ofcourse not all can be effective. Taylor believed that there was only one method to effectiveness, since rule of thumb changed in accordance to person applying it, he believed that a theory of science must be approached for scientific management. Scientific method involved investigation of traditional methods through work-study, unifying the best practices and developing a standard method, which would be followed throughout the organisation.
b. Harmony, not Discord– Since the early days, there was a possibility of rift between managers and workers since managers job was to get the work done from workers. There was a possibility of class-conflict. Taylor said there should be harmony between management and workers. To achieve this, Taylor called for Complete mental revolution which meant that management and workers should transform their thinking. Management should share the gains of the company, if any, with the workers. At the same time workers should work hard and be willing to embrace change for the good of the company.
c. Co-operation, not Individualism– It is an extension of harmony, not discord. Taylor says that there should be complete co-operation between management and workers, not individualism. Competition should be replaced by co-operation. For this to happen, managers must always listen to constructive criticism by employees. There suggestions must be heard and if important but be credited. Similarly, employees should also not make unnecessary demands from the management and not go on strike. There should be an equal division of work and responsibility among workers and management.
3.If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?
Answer. If an organization does not provide the right place for physical and human resources in an organization, then ‘order’ is violated. The principle of order states that a place for everything and everyone in its place. Meaning, people and materials must be in suitable places at appropriate time for maximum efficiency. It main aim is to talk about orderliness. It means that if a thing is placed where it is supposed to be then there will be no hindrance in the activities of the business. This leads to increased productivity and efficiency. Consequences of violation of ‘order’ are:
a. Less productivity and efficiency.
b. Increase in chances of activities or more hindrance in the business.
c. Misuse of time and material. Wastage of both of them.
d. Delay in achievement of ultimate goal.
e. Unable to contact people at right time.
4.Explain any four points regarding significance of principles of management.
Answer. Four significance of principles of management are:
a. Providing managers with useful insight into reality– Principles of management gives real world insights based on real situations to managers. It adds to their knowledge, ability and understanding of managerial situations and circumstances. It helps manager to save their time and solve upcoming problems fast and efficiently. So, it increases managerial efficiency.
b. Optimum utilization of resources and effective of administration– Any organization has limited resources, be it human or materials. Principles of management help managers analyze cause and effect relationships of their decisions which then helps managers to make maximum utilization of their resources in minimum cost. It also limits the boundaries of managerial discretion so that their decisions are free from personal biases.
c. Scientific decisions-Decisions should be made based on facts and truth. They must be thoughtful, realistic, practical and must be evaluated. Principles of management helps managers to take thoughtful and realistic decisions based on facts. Such decisions are formed by keeping away all the biases and prejudices.
d. Meeting changing environment requirements– Management is dynamic in nature. Some laid guidelines can never be static in management. It is flexible and changes according to technology, resources, upgradation in the business and much more. Principles of management helps to adhere to such changing business environments . For example: 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, manufacturing and marketing are being outsourced today.
To find further complete NCERT Solutions, click on the link below.
Also find:
CBSE Class 12 Syllabus 2023-24 (All Subjects)
CBSE Class 12 Sample Papers 2023-24 (All Subjects)
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