Principles of Management – important questions for Boards 2027
CBSE Class 12 Business Studies
Management principles are best described as: (A) Fixed rules that apply identically in every situation (B) General propositions applicable when certain conditions are present (C) Step-by-step procedures for completing a task (D) Personal values held by individual managers
Answer
(B) General propositions applicable when certain conditions are present — management principles are general propositions applicable when certain conditions are present.
How do principles of management help managers while performing management functions?
Answer
Management principles guide managers in taking decisions while performing Planning, Organising, Staffing, Directing and Controlling. The principles indicate likely cause-and-effect relationships, helping managers choose actions and anticipate their effects.
Explain how Taylor’s differential compensation system rewarded workers, and describe the reciprocal contribution expected from managers and workers in sharing the surplus. (3 marks)
Answer
1. Taylor’s differential piece-rate system paid a higher rate to workers who met or exceeded standard output and a lower rate to workers who fell short, rewarding efficiency and encouraging maximum production. 2. Managers developed scientific methods and provided suitable conditions; workers followed those methods and cooperated, sharing responsibility for increased output and prosperity from the surplus.
Explain how principles of management help managers make scientific decisions.
Answer
Scientific decisions are objective, reasoned decisions based on facts and intended purposes. 1. Management principles guide managers towards thoughtful decision-making by providing a sound basis for assessing a situation rather than relying on guesswork. 2. These principles emphasise logic rather than blind faith. Managers can examine relevant facts and choose a course of action after considering the purpose it is intended to achieve. 3. Decisions based on management principles are free from bias and prejudice because they rest on an objective assessment of the situation. 4. Principles also encourage managers to make decisions that are timely and realistic, and that can be measured and evaluated after implementation. Thus, management principles make managerial decisions more logical, objective and justifiable.
Explain the following features of management principles: (i) Mainly behavioural, (ii) Cause-and-effect relationships, and (iii) Contingent.
Answer
Management principles guide managerial action and help managers respond appropriately to human and situational factors. 1. Management principles are mainly behavioural because they aim at influencing human behaviour. Since people and situations differ, principles are less than perfect and exact results cannot always be predicted. 2. Management principles establish cause-and-effect relationships by indicating the likely effect of applying a principle in a particular situation. These relationships help managers use principles in similar situations, although real-life situations are not identical. 3. Management principles are contingent because their application depends on the prevailing situation at a particular point of time. Managers must change their application according to requirements; emergencies may require one person to take charge, while cross-functional decisions may call for participation. Therefore, managers apply principles with judgement to suit each situation.
Explain how management principles help organisations adapt to a changing business environment. In your answer, discuss the role of specialisation and outsourcing.
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Select the option that correctly matches each development with its description. (7 marks) (A) Operations research—developed during the Second World War to optimise the deployment of war material; assembly line—used successfully by Ford to manufacture the Model T for the mass market; lean manufacturing—reduces waste to improve quality and reduce production time and cost. (B) Operations research—introduced to reduce inventory through Kanban; assembly line—developed by Fayol; lean manufacturing—focuses only on increasing output. (C) Operations research—developed to standardise managerial functions; assembly line—used by Ford to manufacture luxury cars; lean manufacturing—increases production time to improve quality. (D) Operations research—developed after the Second World War to eliminate motion; assembly line—designed by Ford without Taylor’s method study; lean manufacturing—reduces only scrap.
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Which statement about the applicability of management principles is correct? (A) They apply only to large business organisations. (B) They apply only to manufacturing organisations. (C) They are intended for all kinds of organisations, though their extent of application may vary. (D) They apply only to public-sector organisations.
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Why do management principles provide general guidelines rather than ready-made solutions?
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Briefly describe Kaizen as an approach to improvement and state how Six Sigma uses data to improve processes and reduce defects. (3 marks)
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80 more probable questions in this chapter, every one with a full answer.
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