SUBJECT: BUSINESS STUDIES (055)

Class : 12 C MAXIMUM MARKS: 20

Instruction: This question paper contains five pages. All questions are compulsory.

Case Study: Read the following text and answer question no. 1-4 on the basis of the same:
Damini D'souza took over the reins of 'Kinsa Retail' as its Managing Director in India. Kinsa
Retail with its headquarters at Japan has been in retail business for the last 40 years. It has
regional offices in many countries with each regional office taking care of the shops in that
particular region. As it is a large organisation, the regional officers have been given the powers
to decide and spend funds sanctioned to them by the headquarter for the welfare of the
customers of their region. Kinsa Retail wants the highest possible standards of ethical conduct
being followed for which a code of conduct is in place for putting values into practice. All
employees as well as Board members are required to act in accordance with the highest
standards of personal and professional integrity when acting on behalf of the company. Non-
compliance involves a heavy penalty including termination of employment.
The management of 'Kinsa Retail' firmly believes that the principles of management are not
rigid prescriptions which have to be followed absolutely. Rather, the application of principles
of management is dependent upon the prevailing situation at a particular point of time. Their
application has to be changed as per requirements.
'Kinsa Retail' selects and appoints personnel after due and rigorous procedure. But once
selected, they are given reasonable time to show results. All the employees are happy and
satisfied working in the organisation.
"As it is a large organisation, the regional officers have been given the powers to decide and
spend funds sanctioned to them by the headquarter for the welfare of the customers of their
region."
1 Identify the principle of management followed by the company. 1
a) Authority and Responsibility
b) Division of work
c) Centralisation and Decentralisation
d) Order
2 "All employees as well as Board members are required to act in accordance with the highest 1
standards of personal and professional integrity when acting on behalf of the company. Non-
compliance involves a heavy penalty including termination of employment."
Identify the principle of management/technique of scientific management highlighted above.
a) Discipline
b) Standardisation and Simplification of work
c) Esprit De Corps
d) Initiative
3 "The management of 'Kinsa Retail' firmly believes that the principles of management are not 1
rigid prescriptions which have to be followed absolutely. Rather, the application of principles
of management is dependent upon the prevailing situation at a particular point of time. Their
application has to be changed as per requirements." What nature of management principles
has been highlighted above?
a) Universal applicability
b) Flexible
c) Contingent
d) Mainly behavioural

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4 'Kinsa Retail' selects and appoints personnel after due and rigorous procedure. But once 1
selected, they are given reasonable time to show results. All the employees are happy and
satisfied working in the organisation."
Which principle of management is highlighted here?
a) Equity
b) Subordination of individual interest to general interest
c) Stability of personnel
d) Esprit De Corps

Case Study : Read the following text and answer question no. 5-8 on the basis of the same:
Vishesh completed his MBA at a reputed business school in Lucknow. He was impressed by
the Principles and Techniques of Scientific Management developed by F.W. Taylor. On
completing his MBA, he wanted to apply scientific Management in his family's business of fast
food chain of restaurants named 'Burger Mania'.
His main goal was to reduce costs with increased output. To begin with, he wanted to develop
a standard method which would be followed throughout the organisation. So, 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 developed taking into account all parameters right
from the procurement of raw materials till the delivery of the final product to the customer.
Vishesh 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. For this, he set up a workers were given the required training to learn the
best method. At the factory, the ingredients making up a burger were 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 Vishesh rewarded the workers for meeting the
standard output.
Now, 'Burger Mania' has standardised processes, raw material, time, machinery, product and
working conditions that ensure the food they send out to their customers has the same high
standards of excellence and level of quality in every chain or franchise. The application of
Scientific Management to every aspect of restaurant operations led to Burger Mania's
widespread success.
5 "The standard method, i.e. the best way of doing the job was then developed taking into
account all parameters right from the procurement of raw materials till the delivery of the
final product to the customer."
Identify the principle/technique of scientific management highlighted above. 1
(a) Science, not rule of thumb
(b) Development of each and every person to his/her greatest efficiency
(c) Method Study
(d) Standardisation of work
6 "Vishesh also believed that each person should not only be scientifically selected but should 1
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."
Identify the principle/technique of scientific management highlighted above.
(a) Science, not rule of thumb
(b) Development of each and every person to his/her greatest efficiency
(c) Method Study
(d) Standardisation of work
7 "Now, 'Burger Mania' has standardised processes, raw material, time, machinery, product and 1
working conditions that ensure the food they send out to their customers has the same high
standards of excellence and level of quality in every chain or franchise."
Identify the principle/technique of scientific management highlighted above.
(a) Science, not rule of thumb
 (b) Development of each and every person to his/her greatest efficiency
(c) Method Study
(d) Standardisation of work
8 "At the factory, the ingredients making up a burger were strategically placed to reduce the 1
time taken for excess movements."
Identify the work study technique of scientific management highlighted above.
(a) Time Study
(b) Method Study
(c) Motion Study
(d) Fatigue Study
9 In an organisation, each person should be scientifically selected. Then work assigned should suit 1
his physical, mental and intellectual capabilities. To increase efficiency, they should be given the
required training. Efficient employees would produce more and earn more.
Which of the following principle of management is highlighted above?
a) Science, not rule of thumb
b) Division of work
c) Development of each and every person to his/her greatest efficiency and prosperity
d) Remuneration of employees.
10 Sanak and Gagan started their career in Wales Limited (a printing press) after going through a 1
rigorous recruitment process. Since they had no prior work experience, the firm decided to give
them one year to prove themselves.
The principle of management followed by Wales Limited is
a) Authority and Responsibility
b) Discipline
c) Equity
d) Stability of Personnel
11 According to Taylor, even a small production activity like loading pigs of iron into boxcars can 1
be scientifically planned and managed. This can result in tremendous saving of human energy
as well as wastage of time and materials. The more sophisticated the processes, greater would
be the savings. In the present context, the use of internet has brought about dramatic
improvements in internal emciencies and customer satisfaction.
Identify the principle of management highlighted above.
a) Science, not rule of thumb
b) Harmony, not discord
c) Cooperation, not individualism
d) Development of each and every person to his/her greatest efficiency

Read the following statements- Assertion (A) and Reason (R), and select the correct
alternative in question no 12 and 13 :
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason (R) is false.
(d) Assertion (A) is false and Reason (R) is true.
12 Assertion (A): Employee turnover should be maximised to maintain organisational efficiency. 1
Reason (R): Employees should have stability of tenure. They should be given reasonable time
to show results.
13 Assertion (A): There should be an almost equal division of work and responsibility between 1
workers and management.
Reason (R): The principle of scientific management highlighted here is ‘Cooperation, not
individualism’. Management should work almost side by side with workers helping,
encouraging and smoothing the way for them. Management should not close its ears to any
constructive suggestions made by the employees. They should be rewarded for their
suggestions which results in substantial reduction in costs.
14 In one of the principles of scientific management, Taylor emphasises that there should be equal 1
division of work and responsibility between workers and management and management should
 work almost side by side with workers helping and smoothing the way for them. Identify the
principle.
a) Science, not rule of thumb
b) Cooperation, not individualism
c) Harmony, not discord
d) Development of each and every person to his/her greatest efficiency
15 Loyd Co. Ltd. manufactures motorcycles and cars. It has two separate divisions for both of them. 1
Each division has its own incharge, plans and execution resources. On no account the working
of two divisions overlap. Which principle of management is followed by Loyd Co. Ltd.?
a) Unity of command
b) Authority and Responsibility
c) Unity of direction
d) Division of work
16 Match the principle of management in Column I with their respective explanation in Column II: 1

a Scalar Chain i When no division of the company has a separate plan of

action.
b Subordination of ii When a manager awards contract for supply of raw material
individual interest to a particular party, which happens to be owned by his
to general interest relative ignoring other parties, who can supply the same at a
cheaper rate.
C Unity of direction iii When a subordinate habitually contacts higher authorities in
the company by passing his/her immediate superior.
D Equity iv When the manager grants one month medical leave to a
supervisor with pay and only one week medical leave to
accountant.

Choose the correct alternative:

(a) (i), (ii), (iii), (iv) (b) (ii), (i), (iii), (iv)
(c) (iii), (ii), (i), (iv) (d) (iii), (i), (ii), (iv)
17 Sitaram, the production manager of X Ltd., wants to increase the speed of packaging. In order 1
to identify and eliminate unnecessary and unproductive movements of workers in packaging,
he installed a CCTV camera in the factory. Which technique of scientific management is adopted
by Sitaram?
(a) Time Study (b) Method Study (c) Motion Study (d) Fatigue Study

18 Match the principle of management in Column I with their respective explanation in Column II: 1
A Time Study i Each specialist is to be assigned work according to her/his
qualities. For example, those with technical mastery,
intelligence and grit may given planning work. Those with
energy and good health may be assigned execution work..
B Method Study ii Devising new varieties instead of the existing ones and
eliminating unnecessary diversity of products.
C Functional iii Fixing the standard time taken to perform a well-defined job
Foremanship so as to determine the number of workers to be employed;
frame suitable incentive schemes and determine labour
costs.
D Standardisation iv Finding out one best way of doing the job to minimise the
and simplification cost of production and maximise the quality and satisfaction
of work of the
customer.

Choose the correct alternative:

(a) (i), (ii), (iii), (iv) (b) (ii), (i), (iii), (iv)
(c) (iii), (ii), (i), (iv) (d) (iii), (vi), (i), (ii)
19 Pawan is working as a 'production manager' in CFL Ltd. engaged in manufacturing of CFL bulbs. 1
There is no class conflict between the management and workers. The working conditions are
very good. The company is earning huge profits. As a policy matter, management is sharing
the gains with the workers because they believe that prosperity of the company cannot exist
for a long time without the prosperity of the employees.
Identify the principle of scientific management described in the above para.
a) Science, not rule of thumb
b) Cooperation, not individualism
c) Harmony, not discord
d) Development of each and every person to his/her greatest efficiency
20 Match the principle of management in Column I with their respective explanation in Column II: 1
A Standardisation of i To establish interchange ability of the manufactured parts
work and products.
B Menta revolution ii Classification of workers as efficient and inefficient on the
basis of certain standards
C Cooperation, not iii Change in the attitude of workers and management towards
individualism one another from competition to cooperation.
D Differential piece iv Equal division of work and responsibility between workers
rate system and management

Choose the correct alternative:

(b) (i), (iv), (iii), (ii) (b) (i), (iii), (iv), (ii)
(c) (ii), (iv), (i), (iii) (d) (iii), (i), (ii), (iv)