COMPETENCY – BASED TEST ITEMS

CLASS: 12th
SUBJECT: BUSINESS STUDIES
NAME OF CHAPTER: PRINCIPLES OF MANAGEMENT

Q. LEARNING QUESTION MARK

NO OUTCOME
/ASSESSMENT
OBJECTIVE
1 LO: able to Understand Which is not the objective of scientific management? 1
the concept of a. Mental change
principles of b. Proper selection
management. c. Best method of doing work
d. Reduce labor turnover
AO: to assess the
understanding the
concept principles of
management
2 LO: able to Understand Science not rule of thumb means: 1
the Scientific principles a. To replace old methods of doing work
of management. b. Mutual corporation
c. Discipline
AO: to assess the d. None of the above
understanding the
Scientific principles of
management
3 LO: able to Understand From the set of statements given in column one and column two 1
the Principles of choose the correct pair of statements:
management. Column I Column II
A. Order i. Employee turnover should be minimized to
AO: to assess the B. Stability of maintain organizational efficiency.
understanding the Personnel ii. Management should promote a team spirit
Principles of of unity and harmony among employees.
management C. Harmony iii. There should be a place for everything
not discord and everyone.
a. A-iii, B-i, C-ii
b. A-i, B-ii, C-iii
c. A-ii, B-iii, C-i
d. A-i, B-iiii, C-ii
4 LO: able to Understand One _______ and one _______ for a group of activities having 1
the Principles of the objective is principle of unity of direction.
management. a. Men, Money
b. Boss, Subordinate
AO: to assess the c. Money, Material
understanding the d. Head, Plan
Principles of
management
5 LO: able to Understand ‘The principle of order’ is concerned with: 1
the Principles of a. Justice and kindness
management. b. Gang plank
c. A place for everything and everything at its place
AO: to assess the d. One boss and one subordinate
understanding the
Principles of
management
6 LO: able to Understand Scientific management: 1
the Scientific principles a. Adopting hit and trial method
of management. b. Eliminates rule of thumb approach
c. Both (a) and (b)
AO: to assess the d. None (a) and (b)
understanding the
Scientific principles of
management
7 LO: able to Understand After finishing her BBA degree course, Tanya gets a job of 1
the concept of Assistant Manager in a retail company through the reference of
principles of her cousin Taruna who works in the same company as a senior
management. manager. Taruna decided to guide Tanya through the experience
by making her aware of the important facts about management in
AO: to assess the practice. She tells her that the principles of management does not
understanding the provide any ready-made solution to all management problems
concept principles of rather it only guides them in taking decision.
management Identify the features of principles of management mentioned in
the above paragraph.
a. General guidelines
b. Universal applicability
c. Flexible
d. All of these
8 LO: able to Understand Mental revolution means: 1
the concept of a. Cooperation
principles of b. Harmony
management. c. Integration
d. All of the above
AO: to assess the
understanding the
concept principles of
management
9 LO: able to Understand Which principle is being highlighted? 1
the Principles of
management.

AO: to assess the

understanding the
Principles of
management

a. Esprit de crops
b. Discipline
 c. Order
d. Unity of command
10 LO: able to Understand Assertion (A): Management principles have to be modified as 1
the Principles of per the changes in the business environment.
management. Reason (R): Principles of management are rigid like pure
sciences principles.
AO: to assess the a. Both Assertion (A) and Reason (R) are true and Reason (R) is
understanding the the correct explanation of Assertion (A)
Principles of b. Both Assertion (A) and Reason (R) are true and Reason (R) is
management not the correct explanation of Assertion (A)
c. Assertion (A) is True but Reason (R) is False
d. Assertion (A) is False but Reason (R) is True

11 LO: able to Understand Vaibhav Sharma was working as the Production Manager in 3
the Principles of Crescent Pharmaceuticals Pvt. Ltd. To get his son admitted in
management. school, he wanted to take leave from the office, but on the same
day, an important meeting with the Chief Executive Officer
AO: to assess the (CEO) of the company was scheduled to discuss about some new
understanding the medicines to be manufactured. Considering the significance of
Principles of the meeting, he did not take leave. The CEO appreciated his
management exemplary behavior as he gave priority to the organizational
interest over his personal interest.
Name the principle of management being followed by Vaibhav
Sharma.
Explain the principle in detail.
12 LO: able to Understand “There should be an almost equal division of work and 3
the Principles of responsibility between workers and management.” Do you
management. agree? Give reasons in support of your answer.

AO: to assess the

understanding the
Principles of
management
13 LO: able to Understand Explain, giving reasons, whether the following statements are 3
the Principles of true/false:
management. A. To motivate the workers ‘Differential Piece Wage System’
should be implemented.
AO: to assess the B. Management principles are rigid as principles of pure
understanding the science.
Principles of
management
14 LO: able to Understand “Principles of management are mainly behavioral in nature.” Do 3
the Principles of you agree? Give reasons.
management.

AO: to assess the

understanding the
Principles of
management
15 LO: able to Understand Ritika Kapoor, the CEO of Mobilo limited firmly believes in 4
the Principles of providing fair wages to the employees, superior value to the
management. customer, care for the environment and honest dealings with
business associates. She also believes that for greater
AO: to assess the productivity, work should be divided into small tasks and each
understanding the
 Principles of employee should be trained to perform his/her specialised job.
management This principle is applicable to a government office where there is
a dairy/dispatch clerk whose job is to receive and send mail or
documents, a data entry operator whose task is to input data on
the computer, a peon and officer etc. This principle is also
applicable to a limited company where there are separate
departments like production, finance, marketing and research and
development(R&D) etc.
A. “…believes in providing fair wages to the employees,
superior value to the customer, care for the environment and
honest dealings with business associates.” Identify the
general principle of management followed here.
a. Discipline
b. Initiative
c. Order
d. Equity
B. Identify the point of importance of management principles
highlighted above.
a. Principles of management provide the manager with
useful insights into real world situations.
b. Principles of management help in optimum utilization
of resources.
c. Principles of management help managers in
scientific/thoughtful decision making.
d. Principles of management help in fulfilling social
responsibility.
C. “… For greater productivity, work should be divided into
small tasks and each employee should be trained to perform
his/her specialized job.” Identify the principle of management
highlighted here.
a. Unity of command.
b. Unity of direction.
c. Division of work.
d. Esprit de corps.
D. Identify the characteristics of principles of management
highlighted in the above para.
a. General guidelines
b. Universal applicability
c. Flexible
d. Contingent
16 LO: able to Understand Define principles of management. Explain any three points 4
the Principles of highlighted the significance of principles of management.
management.

AO: to assess the

understanding the
Principles of
management
17 LO: able to Understand What contradiction do you find in the principle of ‘Unity of 4
the Principles of Command and the technique of ‘Functional Foremanship’ and
management. why?

AO: to assess the

understanding the
 Principles of
management
18 LO: able to Compare Fayol and Taylor both have contributed immensely to the 6
the contributions of knowledge of management, which has become a basis for further
Fayol practice by managers. Taylor thought that by scientifically
and Taylor. analyzing work it would be possible to find ‘one best way’ to do
it. He is most remembered for his time and motion studies and
AO: to assess the functional foremanship. He said that the best result would come
understanding the from the partnership between a trained and qualified
contributions of Fayol management and a cooperative and innovative workforce. Fuel
and Taylor. explained what amounts to a manager's work and what principles
should be followed in doing this work. In the light of the above
discussion, differentiate between the contribution of Taylor and
Fayol on the following basis:
perspective
a) Unity of command
b) Focus
c) Expression
d) Applicability
e) Basis of formation
19 LO: able to Compare Explain the technique of “Functional Foremanship and the 6
the contributions of concept of “Mental Revolution” as enunciated by Taylor.
Fayol
and Taylor.

AO: to assess the

understanding the
contributions of Fayol
and Taylor.
20 LO: able to Compare Vignesh completed his MBA at a reputed Business School in 6
the contributions of Lucknow. He was impressed by the principles and techniques of
Fayol scientific management developed by FW Taylor. On completing
and Taylor. his MBA, he wanted to apply scientific management in his
family's business of fast food chain of restaurants named ‘Burger
AO: to assess the Mania’.
understanding the His main goal was to reduce costs which increased output. To
contributions of Fayol begin with, he wanted to develop a standard method which
and Taylor. would be followed throughout the organisation. 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 develop taking into account all parameters right from
the procurement of raw materials till the delivery of the final
product to the customer. Vignesh 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 increase efficiency.
At ‘Hamburger’ workers were given the required training to
learn the best method. At the factory, the ingredients making up a
burger word in strategically placed to reduce the time taken for
excess movements. The Standard Time and other parameters
were determined on the basis of work study and Vignesh
rewarded the workers for meeting the standard output.
Now, ‘Burger Mania’ has standardized process, raw material,
time, machinery, product and working conditions that ensured
 the food they send out to their customers as the same high
standards of excellence and level of quality in every chain of
franchisee.
A. The application of scientific management to every aspect of
restaurant operations led to Burger Mania’s widespread
success.
B. Quoting the lines from the above, explain the principles and
techniques of scientific management used by ‘Burger Menia’.

ANSWERS:
Q. ANSWERS
NO
1 Reduce labor turnover
2 To replace old methods of doing work
3 A-iii, B-i, C-ii
4 Head, Plan
5 A place for everything and everything at its place
6 Eliminates rule of thumb approach
7 General guidelines
8 All of the above
9 Esprit de crops
10 Assertion (A) is True but Reason (R) is False
11 Subordination of personal interest over organizational interest
Discuss above identified principle in details.
12 Explain “equity”
13 A. True
B. False
14 The principles of management are mainly behavioral in nature as they aim to influence complex
human behavior. They also establish cause and effect relationships, intending to be used in similar
situations.
15 A. Equity
B. Principles of management help in fulfilling social responsibility.
C. Division of work
D. Universal applicability
16 Explain the significance/importance of principles of management.
17 Fayol's principle: unity of command is contradictory to Taylor ' technique:functional. foremanship
as Fayol insisted that there should be one and only one boss for every individual. employee.
whereas in functional foremanship Taylor suggested four foreman for planning and four foremen
for execution.
18 Compare the contribution of FW Taylor and Fayol on the given basis.
19 Explain concept of ‘Functional Foremanship’ and the concept of Menal Revolution.
20 • Science, not rule of thumb “to begin with ………. best pracices”
• Development of each and every person to his/her greatest efficiency and prosperity “Vignesh
also believed …… increase efficiency.”
• Method study “The standard …… to the customer.”
• Motion study “at the factory …… movements.”
• Time study “The standard time …… work study.”
• Standardization of Work “Now, ‘Burger Mania’ …… franchise.”