PRINCIPLES OF MANAGEMENT

Q. 1. In your school, you observe that books are kept in office, chalks in
the library and office records in the staff room.

1. Which principle of management is violated here and why?

2. How will that affect the achievement of school objectives?
3. As a manager, what steps will you take to rectify the
shortcomings? (3 marks)

Ans.

1. The principle of „Order‟

2. In the absence of orderliness, school objectives will not be achieved
efficiently and effectively.
3. Things should be placed at appropriate places to achieve maximum
efficiency with given time framework.

Q. 2. The production manager of an automobile company asked the

foreman to achieve a target production of 200 scooters per day. But he did
not give him the authority of requisition tools and materials from the stores
department. Can the production manger blame the foreman if he is not
able to achieve the desired target? Explain briefly the principle relating to
the situation. (3 marks)
Ans. No, the production manager cannot blame the foreman because he did not
give him the authority to requisition tools and materials form the stores
department. Since he has no authority, he could not fulfill his re sponsibility.
In this case the principle of „Authority and Responsibility‟ is violated. Fayol
suggested tht there must be a balance between authority and
responsibility. Authority and responsibility must go hand in hand. Responsibility
without adequate authority will make the subordinate ineffective, I.e., he will not
be able to perform his duties properly. At the same time giving authority without
fixing responsibility may lead to misuse of of authority.
Q. 3. Soniya Ltd. was engaged in the business of manufacturing auto
components. Lately, its business was expanding due to increased demand
for cars. The competition was also increasing. In order to keep its market
share intact, the company directed its workforce to work overtime. But
this resulted in many problems.
Due to increased pressure of work the efficiency of workers
declined. Sometimes, the subordinates had to work for more than one
superiors. The workers were becoming indisciplined. The spirit of
teamwork, which had characterized the company previously, had begun to
wane.
Identify any three principles of management (as given by Henry Fayol)
which were begin violated, quoting the lines from the above
case. (3 marks)
Ans.

1. Unity of command

“Sometimes, the subordinates had to work for more than one superiors.‟

1. Discipline

„The workers were becoming indisciplined.‟

1. Spirit de corps

„The spirit of teamwork, which had characterized the company previously, had
begun to wane.‟
Q.4 A subordinate receives order from more than one loss’ . Which principle in
violated?
Ans: Unity of command.

Q5. The production manager of a company is trying to produce good with minimum cost. Name
the concept which is being focused by management.
Ans: efficiency

Q. 6. Radhika opens a jewelry showroom in Jaipur after completing a course in

jewelry designing. She has employed eleven persons in her showroom. For
greater productivity, she divides the work into small tasks and each employee is
trained to perform his/her specialized job. The sales persons are allowed to
close a deal with a buyer by giving a maximum of 10% discount, whereas the
decision to given any further discount rests with Radhika as the final
authority. In the earlier days of starting of the business, five of her employees
were asked to put in extra hours of work. In return she had promised to give
them a special incentive within a year. Therefore, after six months when the
business was doing well, she awarded a cash bonus to each of these employees
to honour her commitment. However, when it comes to setting the conflicts
among her employees, she tends to b e more biased towards her female
employees.

In context of the above case:

1. Identify and explain the various principles of management that are

being applied by Radhika by quoting lines from the paragraph.
2. Identify and explain the principle of management which is being
violated by Radhika by quoting lines from the paragraph.
 3. State any one effect of the violation of the principle of management
by Radhika as identified in part (b) of the question.

Ans.

1. The various principles of management that are being applied by Radhika

are listed below:

1. Principle of Division of work:

“For greater productivity, she divides the work into small tasks and each
employee is trained to perform his/her specialized job.”

1. Principle of Centralization and Decentralization:

“The sales persons are allowed to close a deal with a buyer by giving a
maximum of 10% discount, whereas the decision to give any further discount
rests with Radhika as the final authority.”

1. Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a
each bonus to each of these employees to honour her commitment.”

1. The principle of management which is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she
tends to be more biased towards her female employees.”

1. One effect of the violation of the Principle of Equity is that it may lead to
job dissatisfaction among the male workers.

Q7. Neeraj is selected for the post of software developer in an IT

Company. On the first day of his joining Mehul, his project manager tells
Neeraj that during the course of his work he will come across many such
opportunities which may temp him to misuse his powers for individual or
family’s benefit at the cost of larger general interest of the company. In
such situations, he should rather exhibit exemplary behavior as it will raise
his stature in the eyes of the company. Also, for interacting with anyone in
the company on official matters, he should adopt the formal chain of
authority and communication.
In context of the above case:

1. Identify and explain the various principles of management that Mehul

is advising Neeraj to follow while doing his job.
2. List any two values that Mehul wants to communicate to Neraj.
Ans.

1. The various principles of management that Mehul is advising Neeraj to

follow while doing his job are as follows:

1. Subordination of Individual Interest to General Interest:

2. Scalar Chain:

1. The two values that Mehul wants to communicate to Neeraj are:

1. Honesty
2. Self restraint

Q8. Davinder is a class twelfth commerce student in a reputed school in

Punjab. Satinder is his elder brother who is doing his Masters in Hospital
administration from Delhi after completing his B. Sc course. During
vacations when Satinder comes home, Davinder shows him the business
studies project that he is preparing on the topic ‘Principle s of
Management’. Satinder tells him that these principles are also a part of
MBA course curriculum at the beginner’s level as they form the core of
management in practice. But he finds these principle different from those
of pure science.
In context of the above case:

1. Outline the concept of principles of management.

2. Why does Satinder find the principle of management different from
those of pure science?
3. Why do the principles of management form the core of management
in practice?

Explain by giving any two points highlighting the importance of principles

of management.
Ans.

1. The principles of management serve as a broad and general guideline for

the managerial decision making and action.
2. Satinder finds the principles of management different from those of pur e
science because the management principles are not as rigit as principles
of pure science. This is due to the fact that they deal with the human
behavior and thus, need to be applied creatively in the light of given
situation.
3. The importance of principles of management is described below:

1. Providing managers with useful insights into reality:

2. Optimum utilization of resources and effective administration:
Q.9 Nutan Tiffin Box service was started in Mumbai by Mumbai
dabbawalas. The Dabbawalas who are the soul of entire Mumbai aim to
provide prompt and efficient services by providing tasty homemade tiffin
to all office goers at right time and place. The service is uninterrupted
even on the days of bad weather, political unrest and social
disturbances. Recently they have started online booking system through
their website’ mydabbawals.com’. Owing to their tremendous popularity
amongst the happy and satisfied customers and members, the dabbawalas
were invited as guest lecturers by top business schools. The Dabbawalas
operate in a group of 25-30 people along with a group pleader. Each group
teams up with other groups in order to deliver the tiffin on time. They are
not transferred on frequent basis as they have to remember the addresses
of their customers. They follow certain rules while doing trade-No alcohol
during working hours; No leave without permission; Wearing of white cap
& carrying ID cards during business hours.
Recently on the suggestion of a few self-motivated fellow men, the
dabbawalas thought out and executed a plan of providing food left in tiff
ins by customers to slum children. They have instructed their customers
to place red sticker if food is left in the tiffin, to be fed to poor children
later.

1. State any one principle of management given by Fayol & one

characteristic of management mentioned in the above case.
2. Given any two values which the Dabbawalas want to communicate to
the society.

(4 marks)
Ans.

1. Principles of management (any one)

1. Stability of Personnel
2. Initiative
3. Discipline
4. Esprit de corps

Characteristic of management (any one)

1. Goal oriented
2. Group activity

2. Values that have been communicated by the Dabbawalas: (any two)

1. Fulfilling social responsibility;

 2. Empathy towards disadvantaged children;
3. Team work (or any other suitable value)

Q10. ‘Aapka vidyalaya’ believes in holistic development of students and

encourages team building through a mix of curricular, co -curricular and
sports activities. On its founders day a stage performance had to be put
up. A committee of ten prefects was constituted to plan di fferent aspect of
the function. They all decided to use recycled paper for decoration. There
was a spirit of unit and harmony and all members supported each
other. With mutual trust and belongingness the programme was
systematically planned and executed. Kartik, one of the prefects realized
that unknowingly the group had applied one of the principles of
management while planning and executing the programme. He was so
inspired by the success of the function that he asked his father to apply to
same principle in his business. His father replied that he was already
using this principle.

1. Identify the principle of management applied for the success of the

programme.
2. State any two features of management highlighted in the above para.
3. Identify any two values which ‘Aapka Vidyalaya’ communicated to the
society.

(4 marks)
Ans.

1. Espirit de corps
2.

1. Management is pervasive--„ …he asked his father to apply the same

principle in his business.’

Management is pervasive as it can be applied to all types/levels of

organizations.
2. Management is a group activity –„There was a spirit of unity and harmony
and all members supported each other.’
Management is a group activity because it requires team work and/or
coordination of individual efforts.

3. Values being communicated to the society: (Any two)

1. Concern for the environment.

 2. Holistic development of children.
3. Teamwok

Q11. Nikita and Salman completed the MBA and started working in a
multinational company at the same level. Both are working hard and are
happy with their employer. Salman had the habit of backbiting and wrong
reporting about his colleagues to impress his boss. All the employees in
the organization knew about it. At the time of performance appraisal the
performance of Nikita was judged better than Salman. Even then their
boss, Mohammed Sharif decided to promote Salman stating that being a
female Nikita will not be able to handle the complications of a higher post.

1. Identify and explain the principle of management which was not

followed by this multinational company.
2. Identify the values which are being ignored quoting the liens the
above para.

(5 marks)
Ans.

1. The principle violated is EQUITY.

It advocates that there should be no discrimination against anyone on account of

sex, religion, language, caste, belief, nationality etc.
It emphasizes kindliness and justice in the behavior of managers towards the
workers to ensure loyalty and devotion.

1. The valuation which are being ignored are:

1. Good human behavior because „Salman had the habit of backing and
wrong reporting about his colleagues to impress his boss.‟
2. Gender Equality because „Their boss decided to promote Salman stating
that being a female Nikita will not be able to handle the complications of a
higher post.

Q12. Sigma Ltd. is a large company manufacturing electric motors. The

company has several departments – Production, Marketing, Finance and
HR. Mr. Shashank, CEO of the company set the target sale of 10 crore in a
month. To increase the sales, the marketing manager, Mr. Ishaan insists
on offering 10% discount to customers. But the finance manager, Mr.
Mohak does not approve such discount as it would mean loss of
revenue. Because of dual subordination, the sales manager, Mr. Anshik
could not achieve the sales target.

1. Which concept of management Sigman Ltd. is lacking? State it.

 2. Which principle of management has been overlooked by this
company? State it.
3. Which principle of management has been overlooked by this
company? State it.

(6 marks)
Ans.

1. The company is lacking „Coordination‟.

It is the process by which the activities of different departments are

synchronized to ensure unity of action.

1. Unity of command

There should be one and only one boss for every individual employee.If an
employee gets orders from two superiors at the same time, the principle of unity
of command is violated.Consequences of violation:Authority is undermined,
discipline is in jeopardy, order is disturbed and stability is threatened.

1. Spirit de Corps

Management should promote a team spirit of unity and harmony6 among

employees.It is necessary for coordination.
Q13. ABC Ltd. is engaged in producing electricity from domestic
garbage. There is almost equal division of work and responsibility
between workers and management. The management even takes workers
into confidence before taking important decisions.
All the workers are satisfied as the behavior of the management is very
good.

1. State the principle of management described in the above para.

2. Identify any two values which the company wants to communicate to
the society.

(3 marks)
Ans.

1. The principle of Taylor described in the above para is Cooperation, Not

Individualism.

It states that there should be complete cooperation between the labour and the
management.Competition should be replaced by cooperation.
 1. Values which the company wants to communicate to the society are:

1. Good behavior in human interaction.

2. Concern for the environment

Q14. Voltech India Ltd. is manufacturing LED bulbs to save electricity and
running under heavy losses.
To revive from the losses, the management thought of shifting the unit to a
backward area where labour is available at a low cost. The management
also asked the workers to work overtime without any additional payment
and promised to increased to wages of the workers after achieving its
mission. Within a short period the company started earning profits
because both the management and the workers honoured their
commitments.

1. State the principle of management described in the above para.

2. Identify any two values that the company wants to communicate to
the society.

(3 marks)
Ans.

1. The principle of management described in the above para is Discipline.

Discipline is the obedience to organizational rules and employment agreement

which are necessary for the working of the organization.

1. Values that the company wants to communicate to the society are:

1. Concern for the environment

2. Development of backward regions

Q15. Kushal Ltd. is a leading automobile company in which the various

departments are setting up their own objectives without paying any
interest to the organizational objectives.

1. Which aspect of management the company is lacking? What will be

its impact on the organization?
2. Identify the principle of management which has been overlooked by
this organization.
3. State any two values neglected by the people of this organization. (5
marks)

Ans.
 1. The company is lacking „Coordination‟.

Its different departments like production, marketing, etc. do not coordinate their
work.In the absence of coordination, there will be overlapping and chaos instead
of harmony and integration of activities. The company will fail to achieve its
objectives.

1. Subordination of individual interest to general interest.

2. Values:

1. Mutual cooperation
2. Unity of action
3. Optimum utilization of resources

Q16.Telco Ltd. is manufacturing files and folders from old clothes to

discourage use of plastic fields and folders. For this, they employ people
from nearby villages where very less job opportunities are available. An
employee, Harish, designed a plan for cost reduction but it was not
welcomed by the production manager. Another employee gave some
suggestion for improvement in design, but it was also not appr eciated by
the production manager.

1. State the principle of management described in the above para.

2. Identify any two values that the company wants to communicate to
the society.

(3 marks)
Ans.

1. Initiative. It means eagerness to initiate action without being asked to do

so.
2. Values which the company wants to communicate to the society are:

1. Sensitivity towards the environment

2. Creation of job opportunities
3. Development of backward regions.

Q17. Khandelwal Ltd., a tyre manufacturing concern has been established

for more than ten years. Having made good profits in the past, company
wanted to expand further and hence did not declare bonus for the previous
year. The workers got agitated and trade union declared strike and
demanded bonus and other facilities. The management decided not to give
into their demands.

1. Which principle of scientific management is overlooked in the given

case?
 2. State any two values overlooked/ignored by the management in the
above case.

(3 marks)
Ans.

1. Harmony, not Discord

2. Values overlooked are:

1. Mutual understanding
2. Empathy
3. Peace and stability
4. Law and Order
5. Sense of belongingness (any two)

Q18. Hritik is desirous of setting up a small factory to manufacture

different kinds of eco-friendly packaging materials. He proposes to adopt
to logical approach to his business rather than hit and trial method as he
knows that this can result in tremendous saving of human energy as well
as wastage of time and materials. He plans to adopt paternalistic style of
management in practice in order to avoid any kind of class-conflict that
may emerge between him and the workers. Moreover, he plans to seek the
opinion of his workers before taking any important decisions and also
offers incentives to them for providing valuable suggestions for the
business.
In context of the above case:

1. Identify and explain the various principle of scientific management

that Hritik plans to apply in his business.
2. List any two values that he wants to communicate to the society by
offering eco-friendly packaging material.

Ans.

1. The various principle of scientific management that Hritik plans to apply in

his business are described below:

1. Science, not Rule of Thumb:

2. Harmony, Not Discord:
3. Cooperation, Not Individualism:

1. The two values that Harit wants to communicate to the society by offering
eco-friendly packaging material are:

1. Concern for environment

 2. Sense of responsibility

Q19. Gaurika has been appointed as the chief organizer of a weeklong

cultural event. Being a staunch follower of scientific management, she
decides to execute her work by putting into practice the various
techniques of scientific management. On the basis of several
observations, she is able to determine that the standard time taken by the
security officer at the gat to check the credentials of each visitor is 30
seconds. So she decides to employ two persons on this job for every
function along with the other necessary support staff. She considers the
fact that every day, the functions will take place in three shifts of f our
hours each, therefore it is important to give breaks to the support staff
even in a single shift to take her/his lunch etc. moreover, on introspection,
she determines that the best way to distribute refreshment boxes to the
visitors will be to hand it over to them at the exit gate as it would help to
save time and eliminate any kind of confusion.
In the context of the above case:

1. Identify and explain the various techniques of work study which have
been put into practice by Gaurika.
2. List any two values that Gaurika wants to communicate to the
society.

Ans.

1. The various techniques of work study which have been put into practice
by Gaurika are outlined below:

1. Time Study:
2. Fatigue Study:
3. Method Study:

1. The two values that Gaurika wants to communicate to the society are:

1. Optimum utilization of resources

2. Concern for employees

Q20. Study Buddy Pvt.’ Is company dealing in stationery items. In order to

establish standards of excellence and quality in materials and in the
performance of men and machines, the company adheres to benchmarks
during production. Moreover, its products are available in limited
varieties, sizes and dimensions thereby eliminating superfluous diversity
of products.
 3. Identify the technique of scientific management which has been
adopted by ‘Study Buddy Pvt. Ltd.’
4. Ans. Standardization and Simplification of Work is the technique of
scientific management which has been adopted by „Study Buddy Pvt. Ltd.‟
Q21 Tina and Anshu completed their MBA and started working in a
multinational company at the same level. Both are working hard. Anshu
has the habit of backbiting and wrong reporting about his colleagues to
impress the boss. All the employees in the organization know about it. At
the time of performance appraisal also Tina’s performance was rated better
than Anshu. Even then their boss decided to promote Anshu stating that
being a female, Tina will not be able to handle the complications of higher
post.

1. Identify and explain the principle of management that was not

followed by this company.
2. Identify the values being ignore.

Ans.

1. Company is violating the “Principle of Equity.”

2. The values ignored are

1. Gender equality
2. eward for performance
3. Good human behavior.
Q22 The production department of Alpha Ltd. was not performing well on
detailed analysis, it was observed that the workers of that department were
overburdened. They were forced to work for longer hours without any
break. So the management planned to replace the production
manager. They appointed Mr. Hari as the new Production Manager. He
observed the average worker and note down their times. He noted down
the time they worked and the time they required to be fresh to join back the
work. Based on this observation, he set the break intervals for workers. He
gave small breaks to workers to recharge their energy.

1. Name and explain the technique of scientific management used by

Mr. Hari.
2. State the value which Mr. Hari wants to communicate to the society
by allowing rest intervals to workers.

Ans.

1. Fatigue study.
2. Value of humanity/sympathy/respect towards employees.
Q23. In the staff meeting the principal of the school raised objection that
teachers start the teacher after 5 to 10 minutes in third floor classes. He
warned them as students are complaining about this. The teachers
explained the principal that when we climb steps from ground to third
floor. We get some tiredness and need 5 to 10 minutes rest before starting
the lecture. The principal planned to install a lift in school so that teachers
do not waste their energy on wasteful activity of climbing steps.

1. State the techniques of scientific management used by principal.

2. State any other technique of scientific management.

Ans.

1. “Technique of motion study.”

2. Other two techniques:

1. Functional foremanship
2. Time study.

Q24. In a factory the toolbox was kept under the table of every worker,
whenever worker needs tools he had to bend tape out tool from tool box
and keep it back after use. The newly appointed supervisor observed it
and suggested to keep a stool near every worker’s chain where toolbox can
he placed so that workers do not waste their energy in bending again and
again.

1. Which technique of scientific management is used by New

Supervisor.
2. State the objective of motion study.

Ans.

1. Motion study.
2. The objective of motion study is to eliminate unproductive movements of
workers.

Q25. Mr. Rajiv the senior manager of Unique enterprise considered himself
very wise and used to take all the decisions himself without consulting the
employees, he never used to help any one nor he used to take help of
anyone. The employees of unique enterprise were not working efficiently
and company’s profit margin started declining to tackle the problem, the
company appointed a new manager from IIM Bangalore. The new manager
after joining made a policy that all the decisions will be taken afte r
consulting employees in the meeting. All employees must give some
suggestions and best suggestions will be rewarded with financial and
nonfinancial incentives. This policy had a very positive effects on
company.

1. State the principle of Hencry Fayol used by new manager.

2. State the technique of scientific management related to above case.

Ans.

1. Principle of initiative.
2. “Cooperation not individualism.”