Principles of Management, HSC Commerce, 12th Standard,

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Principles of Management

HSC 12th Standard Commerce - Solved Paper

Q.1. A) Select the correct option and rewrite the sentences.
1. ______ is considered as the Father of Modern Management.

(a) Henry Fayol    (b) F.W. Taylor    (c) Philip Kotler

Answer: (a) Henry Fayol
2. ______ is the first function of management.

(a) Controlling    (b) Planning    (c) Organizing

Answer: (b) Planning
3. Principle of ______ says that each member of organization should receive orders from only one superior.

(a) Unity of Direction    (b) Unity of Command    (c) Scalar Chain

Answer: (b) Unity of Command
4. Determining the way the work is to be done is called ______.

(a) Method Study    (b) Motion Study    (c) Time Study

Answer: (a) Method Study
5. Startups India Initiative was launched in the year ______.

(a) 2014    (b) 2016    (c) 2018

Answer: (b) 2016
Q.1. B) Match the pairs.
Group A Group B
A) Henry Fayol 1) Scientific Management Theory
B) Principle of Unity of Direction 2) One Head One Plan
C) Controlling 3) Modern Management Theory
D) F.W. Taylor 4) Last function of management
E) Staffing 5) Recruitment and Selection
Answer:
A) Henry Fayol — 3) Modern Management Theory
B) Principle of Unity of Direction — 2) One Head One Plan
C) Controlling — 4) Last function of management
D) F.W. Taylor — 1) Scientific Management Theory
E) Staffing — 5) Recruitment and Selection
Q.2. Explain the following terms/concepts. (Any 2)
1. Motion Study

Answer: Motion study refers to the study of the movement of an employee as well as the machine while completing a particular task. It is a technique of scientific management introduced by F.W. Taylor. The primary objective is to identify and eliminate unnecessary and wasteful movements to increase efficiency and speed of work.

2. Scalar Chain

Answer: Scalar chain implies the hierarchy of authority from the top level to the lower level for the purpose of communication. It ensures the orderly flow of information and commands. Henry Fayol suggested that for efficiency, this chain should be followed strictly, except in emergencies where a "Gang Plank" (direct communication) can be used to avoid delay.

3. Organizing

Answer: Organizing is the process of identifying, bringing together the required resources (Men, Money, Material, Machines, and Method), and grouping them for the achievement of organizational goals. It establishes the relationship between authority and responsibility among the personnel.

Q.3. Study the following case/situation and express your opinion.

Case: Mr. Ram, an emerging entrepreneur, has designed a structure of his business organization. He has appointed Mr. Shyam as a Production Manager. Mr. Shyam has the right to command his subordinates and is responsible for the production targets.

1. Which principle of management is highlighted regarding Mr. Shyam?
Answer: The principle of Authority and Responsibility is highlighted here. Mr. Shyam has been given the authority (right to command) and the corresponding responsibility (accountability for production targets).
2. Who is responsible for the overall design of the organization structure?
Answer: Mr. Ram, as the entrepreneur/owner, is responsible for the overall design of the organizational structure (Top Level Management function).
3. If Mr. Shyam cannot discipline his subordinates, what is lacking?
Answer: If Mr. Shyam cannot discipline his subordinates, he may lack adequate Authority or personal leadership skills, or there is a violation of the principle of Discipline within the organization.
Q.4. Distinguish Between.
Planning vs. Controlling
Points Planning Controlling
Meaning Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. Controlling is the process of taking steps to bring actual results and desired results closer together.
Order It is the first and basic function of management. It is the last function of management; it follows all other functions.
Objective The objective is to set goals and choose the means to achieve them. The objective is to ensure that objectives are achieved according to the plan.
Nature It is forward-looking (looking into the future). It is backward-looking (analyzing past performance) as well as forward-looking (corrective action).
Q.5. Answer in brief.
Explain any four techniques of Scientific Management.

Answer: F.W. Taylor introduced several techniques to apply scientific principles to management:

  • 1. Work Study: It consists of an organized, systematic, and critical assessment of the various activities. It includes Time Study, Motion Study, Method Study, and Fatigue Study.
  • 2. Standardization of Tools and Equipment: Standardized working environment and methods of production help to reduce spoilage and wastage of material, cost of production, and fatigue among the workers.
  • 3. Scientific Task Setting: Taylor emphasized fixing a fair day's work. Scientific work setting prevents employees from working below their capacity.
  • 4. Scientific Selection and Training: Management should select the right person for the right job based on scientific standards and provide them with necessary training to increase efficiency.
Q.6. Justify the following statements.
1. "Principles of management are flexible in nature."

Justification:

  • Management principles are not rigid laws like pure sciences (physics or chemistry).
  • They are applied to human behavior, which is complex and unpredictable.
  • Managers can modify these principles according to the situation, size, and nature of the organization.
  • For example, the degree of centralization may vary from company to company. Hence, principles are flexible guidelines.
2. "Planning is the first function of management."

Justification:

  • Every function of management is based on planning.
  • Organizing, staffing, directing, and controlling cannot be performed unless the goals and the path to achieve them are decided.
  • Planning lays the foundation by setting objectives and determining the course of action.
  • Without planning, other functions become directionless. Therefore, it is the primary or first function.
Q.8. Answer in detail.
Define 'Coordination' and explain its importance in management.

Definition: Coordination is the integration and synchronization of the efforts of a group so as to provide unity of action in the pursuit of common goals. It is often called the "essence of management."

Importance of Coordination:

  • 1. Encourages Team Spirit: Coordination arranges the work in such a way that conflicts are minimized. It fosters a sense of unity among employees, leading to higher team spirit.
  • 2. Gives Proper Direction: Coordination ensures that all departments work towards the common organizational goal rather than their individual departmental goals. It acts as a binding force.
  • 3. Facilitates Motivation: When there is proper coordination, employees know their roles clearly. This reduces confusion and increases job satisfaction, which motivates them to perform better.
  • 4. Optimum Utilization of Resources: Coordination helps in bringing together human and physical resources. It minimizes wastage of materials and idle time of labor, ensuring efficiency.
  • 5. Improves Relations: Good coordination builds better relations between the management and the staff, and among the staff members themselves. It reduces disputes and creates a healthy work environment.
  • 6. Higher Efficiency: By avoiding duplication of work and delays, coordination ensures that the organization operates smoothly. This leads to higher productivity and profitability.
  • 7. Good Corporate Image: An organization with well-coordinated departments delivers quality goods and services on time. This builds goodwill in the market and enhances the corporate image.

Conclusion: Thus, coordination is not just a separate function but the underlying force that binds all other functions of management together.