Here we are providing Class 12 Business Studies Important Extra Questions and Answers Chapter 2 Principles of Management. Business Studies Class 12 Important Questions are the best resource for students which helps in class 12 board exams.

Class 12 Business Studies Chapter 2 Important Extra Questions Principles of Management

Principles of Management Important Extra Questions Short Answer Type

Question 1.
Explain the term Principles of Management?
Principles of Management:
A Principle is a fundamental statement of truth that provides a guideline to thought and action. It is a universal truth that establishes a cause and effect relationship between two or more variables. These fundamental truths are applicable in specific circumstances and are capable of predicting the result of any Managerial action. Principles are both ‘descriptive’ and Prescriptive’ in nature.

A principle is descriptive if it simply describes the relationship between the variables. It is prescriptive if it indicates what should be done in a given situation. The principle of management lays down guidelines for improving management practice. These principles are the result of the long experience of managers in different fields of organized effort. Most of these principles are applicable in all kinds of managerial situations, be it a government organization, a business enterprise, a religious foundation, or an educational institution.

Question 2.
Why the principles of Management needed?
According to Terry, “Principles of management are to a manager as a table of the strength of materials is to a civil engineer,” The utility of principles lies in the foundation they provide for its efficient conduct, by making out the basic features that must characterize the practice of management, irrespective of where it is occurring. By means of the principle of Management, a manager can avoid the fundamental mistakes in his job and foretell the results of his action with confidence.

Question 3.
Explain in brief the major criticisms of scientific management.
Demerits or Criticisms of Scientific Management:- Although there are many advantages of Taylor’s scientific management yet it has also been severely criticized. Following are the main points of criticism.

Criticisms by Employers:

  1. Costly/Expensive System: In this scientific management system, much cost is required. More capital has to be invested to implement scientific management. It is a very expensive system.
  2. Time-Consuming: This system is very time-consuming. It takes too much time to implement scientific management.
  3. The fault of Specialisation: The excess specialization creates faults. The problem of certification also arises. It is not suitable for small industrial units.
  4. Lack of Freedom: With the appointment of specialists, the producers cannot take decisions freely as most of the responsibilities fall on specialists. So, they feel hesitant in adopting the scientific technique.
  5. Unsuitable for Small Scale Business: As the technique of scientific management is much expensive, only large scale enterprises can implement it. It is impossible for small-scale businesses to adopt these techniques.

Criticisms by Employees:

  1. Fear of Unemployment
  2. Indifference of Work
  3. Exploitation
  4. End of Initiative
  5. Criticism by Labour Unions
  6. Bad effect on health
  7. Excessive work land

Question 4.
What is the differential piece wage system advocated by F.W. Taylor and also gives an illustration?
Differential piece wage system Taylor was a strong advocate of the piece wage system. He wanted to differentiate between efficient and inefficient workers. The standard time and other parameters should be determined on the basis of the work-study discussed above. The workers can then be classified a$ efficient or inefficient on the basis of these standards. He wanted to reward efficient workers.

So he introduced the different rates of wage payment for those who performed above standard and for those who performed below standard. For example, it is determined that standard output per worker per day is unit, and those who made standard or more than standard or more than standard will get Rs 60 per unit and those below will get Rs 30 per unit. Now an efficient worker making 10 units will get 10×60 = Rs 600/- per day whereas a worker who makes 6 units will get 6 × 30 = Rs 180 per day.

According to Taylor, the difference of Rs 420 should be enough for the inefficient worker to be motivated to perform better. It is important to have a re-look at the techniques of scientific management as comprising a unified whole of Taylorian prescription of efficiency. Therefore, the sum and substance of Taylorism lie not in the disjointed description of principles and techniques of scientific management, but in the change in the mindest, which he referred to as mental revolution.

Principles of Management Important Extra Questions Long Answer Type

Question 1.
Name the main principles of Management propounded by Henri Fayol and explain any two?
Development of Management Principles: It was Henri Fayol a French mining engineer and chief executive who for the first time stated a set of 14 principles of management. Fayol wrote these principles on the basis of his practical experience as a manager. According to him, these principles can be applied in all types, functions, levels, and sizes of organizations. This had earned him the title universalist’. For a long time, Fayol’s list was accepted as ‘Complete and Comprehensive. A description of these principles follows.

  1. Division of Work
  2. Authority and Responsibility
  3. Discipline
  4. Unity of command
  5. Unity of direction
  6. Subordination of individual interests to the general interests
  7. Remuneration
  8. Centralization
  9. Scalar chain hierarchy
  10. Order
  11. Equity
  12. Stability of personnel
  13. Initiative
  14. Esprit de corps

1. Division of Work – This is the principle of specialization which applies to all kinds of work. The more people specialize, the more efficiently they can perform their work. Specialization increases output by making employees more efficient.

2. Authority and Responsibility – Authority is the right to give orders and the power to exact obedience. Managers need authority to get things done. According to Fayol, responsibility is a corollary and a natural consequence of authority. Responsibilities an obligation to perform the tasks in a satisfactory manner.

Question 2.
Give reasons for or against the Universality of the principle of Management?
University of Management principles Universality of management suggests that the manager uses the same managerial skills and principles in each managerial position held in various organizations. Accordingly, an industrial manager could manage a philanthropic organization, a retired army general could manage a university, a civil servant could manage an industrial organization, and so on.

Universality implies transferability of Managerial skills across industries, countries, countries. It means that management is generic in content and applicable to all types of organizations. Lawrence A. Appley declared that ‘He who can manage, can manage anything.’ Let us examine the factors that have contributed to the universal application of management in every level of organization and at every level of organizations.

Arguments for Universality:
1. Managers perform the same functions irrespective of their level in the organization, industry, or country. The functions performed by the company president and the office supervisors .are the same Regardless of the label-all managers plan, organize, lead and control. The difference lies in such things as the breadth of the objectives, the magnitude of the decision taken, the organization’s relationships affected, and so on.

2. Classical writers like Fayol, Urwick, and others believed that there are certain principles in management that are universally applicable.

3. The fundamentals governing the management of a business, a Church, or a university are the same, the differences lie in the techniques employed and practices followed. All managers accountable for the performance of other people, they plan, make decisions, organize work, motivate people and implements control, and so forth. In order to achieve the results the techniques employed might differ depending on situational factors like culture, tradition, attitudes, etc.

4. The very fact that managers regularly move from public to private sector organizations bears ample testimony to the fact that management concepts are universal across organizational types.

Arguments against the Universality This is –
1. The universal thesis implies complete substitutability of managerial skills which is rarely found in actual practice. It seems improbable that the captain of a hockey team would excel equally as the president of the charitable agency or as the vice-chancellor of a university. It is true that the manager’s job becomes almost universal in content at the upper levels of organizations. At a lower level of organization, however, transferability of managerial skills may not be possible.

2. Universality thesis presupposes the existence of predictability regarding the outcomes of management actions. A manager working in firm A must be able to predict the likely consequences of his actions in firm B where he is likely to join. And he may have to face serious problems in case the underlying philosophies of these organizations were to differ.