Principles of Management

Q: A manager at Company A promotes employees based on seniority, while a manager at Company B promotes based on merit. Both decisions are justified under management principles because: Assertion (A): Management principles are flexible guidelines that adapt to situational demands. Reason (R): Human behaviour and organisational contexts are never static and require creative application of principles.

Both A and R are true, and R correctly explains A. Both statements are true and correctly linked — management principles are flexible (A) because human behaviour and contexts are dynamic (R), justifying different applications by different managers.

Q: The evolution of management thought includes 6 phases. Arranging them chronologically, which of the following is the INCORRECT sequence?

Management Science → Modern Management → Early Perspectives. Option C incorrectly places Modern Management before Early Perspectives and Management Science before Neo-Classical Theory; the correct order is Early Perspectives → Classical → Neo-Classical → Behavioural Science → Management Science → Modern.

NCERT Class 12 · Business Studies Based on NCERT Class 12 Business Studies textbook · Free CBSE study kit

Everything you need to ace this chapter, in one place.
Notes · Mind Map · Quiz · Assertion-Reason · Case Studies · Question Bank · Past Papers

Get Full Study Kit →

Chapter Notes

Overview

This chapter introduces the concept, nature, and significance of management principles, which are broad guidelines for decision-making and behaviour in organisations. It traces the evolution of management thought and delves deeply into the classical school, focusing on the contributions of F.W. Taylor (Scientific Management) and Henri Fayol (Administrative Principles). The one big idea a student must walk away with is that management principles are flexible, behavioural guidelines derived from practice and experimentation, and their application leads to efficiency, harmony, and scientific decision-making in any organisation.

Key Concepts (18)

Principles of Management

Broad and general guidelines for decision-making and behaviour in an organisation.

e.g. A manager deciding between seniority and merit for promotion is applying a principle of management.

Scientific Management

Conducting business activities according to standardised tools, methods, and trained personnel to increase output, improve quality, and reduce costs and wastes.

e.g. Taylor's study at Bethlehem Steel Company increased pig iron loading from 12.5 tons to 47 tons per man per day.

Rule of Thumb

Managing factories by personal judgment and trial-and-error approach, without a scientific basis.

e.g. A factory owner deciding worker output based on his own experience rather than time study.

Functional Foremanship

A technique of scientific management where planning and execution are separated, and eight specialists (four in planning, four in production) supervise workers.

e.g. In a factory, an Instruction Card Clerk drafts instructions while a Speed Boss ensures timely completion.

Standardisation

The process of setting standards for every business activity, such as process, raw material, time, product, machinery, methods, or working conditions.

e.g. Toyota setting a standard time for assembling a car door to ensure consistency.

Simplification

Eliminating superfluous varieties, sizes, and dimensions of products to reduce costs and increase turnover.

e.g. A company reducing its product range from 20 types of soap to 5 best-selling ones.

Method Study

Finding the one best way of doing a job to minimise cost and maximise quality and customer satisfaction.

e.g. Ford Motor Company using assembly line production to decide the sequence of operations for a car.

Motion Study

Study of movements like lifting, putting objects, sitting, and changing positions to eliminate unnecessary motions and reduce time.

e.g. Taylor and Frank Gilbreth reduced motions in brick layering from 18 to just 5.

Time Study

Determining the standard time taken to perform a well-defined job using time-measuring devices.

e.g. Observing that a worker takes 20 minutes to make one cardboard box, so standard output is 3 boxes per hour.

Fatigue Study

Determining the amount and frequency of rest intervals needed for a worker to regain stamina and maintain productivity.

e.g. In a heavy manual labour plant, workers are given short pauses every hour to recharge energy.

Differential Piece Wage System

A wage system where efficient workers (performing above standard) are paid at a higher rate per unit than inefficient workers (performing below standard).

e.g. Standard output is 10 units; workers making 11 units get Rs. 50 per unit, while those making 9 units get Rs. 40 per unit.

Mental Revolution

A complete change in the attitude of workers and management towards one another, from competition to cooperation, aiming to increase the size of surplus.

e.g. Management sharing gains with workers, and workers working hard and embracing change for the good of the company.

Harmony, Not Discord

A principle of scientific management stating that management and workers should realise that each is important and their interests are one and the same.

e.g. Japanese companies where workers wear a black badge during strikes but work extra hours to gain management sympathy.

Cooperation, Not Individualism

A principle of scientific management emphasising complete cooperation between labour and management, with open communication and reward for constructive suggestions.

e.g. Management taking workers into confidence before important decisions, and workers refraining from strikes.

Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

A principle of scientific management that each person should be scientifically selected, trained, and assigned work suited to their capabilities to ensure efficiency and prosperity.

e.g. A company selecting workers based on physical and mental tests and then training them for specific tasks.

Science, Not Rule of Thumb

A principle of scientific management that there is one best method to maximise efficiency, developed through study and analysis, which should replace rule of thumb.

e.g. Using time and motion studies to determine the most efficient way to load pig iron into boxcars.

Nature of Principles of Management

The inherent qualities and characteristics of management principles: universal applicability, general guidelines, formed by practice and experimentation, flexible, mainly behavioural, cause and effect relationships, and contingent.

e.g. The principle of division of work applies to both a government office and a limited company, but the extent of division varies.

Significance of Principles of Management

The utility of management principles in providing useful insights, optimum resource utilisation, scientific decisions, meeting changing environment, fulfilling social responsibility, and aiding management training, education, and research.

e.g. A manager using the principle of delegation to leave routine decisions to subordinates and focus on exceptional situations.

How It Works

Application of Scientific Management Principles

Step 1: Develop a true science for each element of work to replace the old rule-of-thumb method (Science, Not Rule of Thumb).
Step 2: Scientifically select the workman and then train, teach, and develop them (Development of Each Person).
Step 3: Ensure complete harmony and cooperation between management and workers so that both work together (Harmony, Not Discord and Cooperation, Not Individualism).
Step 4: Divide work and responsibility almost equally between management and workers, with management working side by side with workers.

💡 Students often forget that 'Mental Revolution' is the overarching mindset change that underpins all four principles — it is not a separate step but the foundation.

Functional Foremanship Structure

Step 1: Separate planning and execution functions at the shop floor level.
Step 2: Under the Factory Manager, appoint a Planning Incharge and a Production Incharge.
Step 3: Under Planning Incharge, assign four specialists: Instruction Card Clerk (drafts instructions), Route Clerk (specifies production route), Time and Cost Clerk (prepares time and cost sheets), and Disciplinarian (ensures discipline).
Step 4: Under Production Incharge, assign four specialists: Speed Boss (ensures timely completion), Gang Boss (keeps machines and tools ready), Repair Boss (ensures proper working condition of machines), and Inspector (checks quality).
Step 5: Each worker takes orders from all eight foremen in their respective functions.

💡 Students often confuse the roles of the eight foremen. Remember: Planning side is about 'thinking' (drafting, routing, costing, discipline), Production side is about 'doing' (speed, setup, repair, inspection).

Work-Study Techniques for Standardisation

Step 1: Conduct Method Study to find the one best way of doing the job by analysing all activities from procurement to delivery.
Step 2: Conduct Motion Study to identify and eliminate unnecessary movements (productive, incidental, unproductive motions).
Step 3: Conduct Time Study using time-measuring devices to determine the standard time for each task element.
Step 4: Conduct Fatigue Study to determine the amount and frequency of rest intervals needed to maintain worker stamina.
Step 5: Use the findings to set standards for tools, methods, time, and working conditions, and then implement standardisation across the organisation.

💡 Students often mix up the four studies. A simple mnemonic: 'M' for Method (best way), 'M' for Motion (movements), 'T' for Time (duration), 'F' for Fatigue (rest).

Differential Piece Wage System Implementation

Step 1: Determine standard output per worker per day using work-study techniques (e.g., 10 units per day).
Step 2: Set two wage rates: a higher rate for workers who meet or exceed the standard (e.g., Rs. 50 per unit), and a lower rate for those who fall below (e.g., Rs. 40 per unit).
Step 3: Calculate daily wages: Efficient worker (11 units) gets 11 × 50 = Rs. 550; Inefficient worker (9 units) gets 9 × 40 = Rs. 360.
Step 4: The significant wage difference (Rs. 190) motivates inefficient workers to improve performance.

💡 Students often think the differential rate applies only to those above standard. It applies to both — a lower rate for below standard and a higher rate for at/above standard.

Exam Traps — Don't Make These Mistakes

⚠ Confusing Principles of Management with Techniques of Management

✗ Principles of management are procedures or methods involving a series of steps to accomplish goals.

→ This is the definition of techniques, not principles. Principles are broad guidelines for decision-making, while techniques are specific methods or procedures.

✓ Principles of management are broad and general guidelines for decision-making and behaviour, whereas techniques are procedures or methods involving a series of steps to accomplish desired goals.

⚠ Mixing Up Taylor's Principles with Fayol's Principles

✗ Taylor gave the principle of division of work and Henri Fayol gave the principle of science not rule of thumb.

→ Division of work is a principle given by Henri Fayol, not Taylor. Taylor's principles are science not rule of thumb, harmony not discord, cooperation not individualism, and development of each person.

✓ Taylor's principles of scientific management are: Science, Not Rule of Thumb; Harmony, Not Discord; Cooperation, Not Individualism; and Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

⚠ Thinking Management Principles are Rigid Like Pure Science Principles

✗ Management principles are rigid and must be followed absolutely in all situations.

→ Management principles are flexible and can be modified by the manager when the situation demands. They are not as rigid as principles of pure science because they deal with human behaviour.

✓ Management principles are flexible guidelines that give the manager enough discretion to modify them according to the demands of the situation.

⚠ Confusing Standardisation with Simplification

✗ Standardisation means eliminating unnecessary varieties of products.

→ Eliminating unnecessary varieties is simplification. Standardisation means setting standards for every business activity, while simplification means reducing superfluous varieties.

✓ Standardisation refers to setting standards for process, raw material, time, product, etc., whereas simplification aims at eliminating unnecessary diversity of products to reduce costs.

⚠ Misunderstanding 'Harmony, Not Discord' as Just Avoiding Strikes

✗ Harmony, Not Discord means workers should not go on strike.

→ While avoiding strikes is part of it, the principle is deeper: it calls for a complete mental revolution where both management and workers realise their interests are one and the same, and they should share gains and work together.

✓ Harmony, Not Discord means that management and workers should realise that each is important, and there should be complete harmony between them. Taylor called for a mental revolution where both sides transform their thinking from conflict to cooperation.

Compare & Contrast

Nature and Purpose

Principles of Management

Techniques of Management

Principles are broad and general guidelines for decision-making and behaviour, while techniques are specific procedures or methods involving a series of steps to accomplish desired goals.

Basis of Formation

Principles of Management

Values

Principles of management are formed after research in work situations and are technical in nature, whereas values are general rules for behaviour of individuals in society formed through common practice and have moral connotations.

Focus Area

F.W. Taylor's Scientific Management

Henri Fayol's Administrative Principles

Taylor focused on improving efficiency at the shop floor level through scientific analysis of work (time and motion studies), while Fayol focused on the overall administrative functions of management and principles applicable to the entire organisation.

Objective

Standardisation

Simplification

Standardisation aims to set fixed types, sizes, and characteristics for products and processes, while simplification aims to eliminate superfluous varieties and sizes to reduce costs and increase turnover.

Exam Focus

Marks pattern: 2 MCQs (1 mark each), 1 Short Answer (3 marks), 1 Long Answer (5 or 6 marks), and often a case study-based question (4-6 marks) applying principles to a given situation.

Most asked: Taylor's principles of scientific management (all four) and their explanation · Fayol's principles of management (especially division of work, authority and responsibility, discipline, unity of command, unity of direction, remuneration, centralisation and decentralisation, scalar chain, and order) · Techniques of scientific management (functional foremanship, work-study techniques, differential piece wage system) · Nature of principles of management (universal applicability, flexible, behavioural, etc.) · Significance of principles of management

Don't skip: Explain any four principles of scientific management given by F.W. Taylor.; Distinguish between Taylor's principles and Fayol's principles.; Explain the techniques of scientific management with examples.; Case study: Identify and explain the management principles violated or applied in a given scenario.

One-Line Revision (read aloud before the exam)

Principles of management are broad and general guidelines for decision-making and behaviour in organisations.
Management principles are flexible, not rigid, and can be modified according to the situation.
F.W. Taylor is known as the 'Father of Scientific Management' and proposed four principles: Science not Rule of Thumb, Harmony not Discord, Cooperation not Individualism, and Development of Each Person.
Taylor's techniques include functional foremanship, standardisation and simplification, method study, motion study, time study, fatigue study, and differential piece wage system.
Functional foremanship involves eight specialists: four in planning (Instruction Card Clerk, Route Clerk, Time and Cost Clerk, Disciplinarian) and four in production (Speed Boss, Gang Boss, Repair Boss, Inspector).
Differential piece wage system pays higher rate per unit to efficient workers and lower rate to inefficient workers to motivate performance.
Mental revolution is a complete change in attitude from competition to cooperation between management and workers.
Henri Fayol gave 14 principles of management including division of work, authority and responsibility, discipline, unity of command, and unity of direction.
Principles of management are formed by practice and experimentation, not by rigid scientific laws.
Management principles help in scientific decision-making, optimum utilisation of resources, and meeting changing environment requirements.
Standardisation sets fixed standards for products and processes, while simplification eliminates unnecessary varieties.
Motion study eliminates unnecessary movements, time study sets standard time, fatigue study determines rest intervals, and method study finds the one best way to do a job.

MCQs — 10 Questions with Answers

Q1. Which of the following best describes a managerial principle?

A. A broad and general guideline for decision-making that adapts creatively to situational demands ✓
B. A rigid rule that must be followed exactly like laws of physics
C. A temporary instruction issued by top management to solve immediate problems
D. A legal requirement enforced by the government on all organisations

Answer: A — Managerial principles are flexible guidelines dealing with human behaviour, not rigid like pure science; they must be applied creatively based on context.

Q2. The construction of the Great Pyramid of Cheops (2900 B.C.) by 100,000 workers for 20 years demonstrates which concept?

A. Scientific management techniques of Frederick Taylor
B. Early application of management principles for coordination and control at large scale ✓
C. The importance of using advanced technology in construction
D. The failure of ancient civilisations to manage people efficiently

Answer: B — The pyramid's construction shows early management of complex large-scale work through coordination and control principles, predating modern management theories.

Q3. How did the advent of Information and Communications Technology (ICT) change management principles?

A. It made management principles obsolete and replaced them entirely
B. It expanded managers' span of control from small workforces in narrow areas to large global business empires ✓
C. It reduced the need for managers in organisations
D. It simplified principles so they no longer needed adaptation

Answer: B — ICT enabled managers to preside over larger, geographically dispersed workforces (e.g., Infosys managing globally from Bangalore), expanding their operational capabilities.

Q4. Which of the following is NOT a characteristic that distinguishes management principles from pure science principles?

A. Management principles deal with human behaviour which is dynamic and changing
B. Management principles must be applied with rigidity and no flexibility ✓
C. Management principles require creative application based on situational demands
D. Management principles must adapt to technological changes

Answer: B — Management principles are flexible, not rigid; they require creative adaptation, which is the opposite of the characteristic listed in option B.

Q5. Frederick Winslow Taylor was an American engineer who pioneered the concept of Scientific Management. Which of the following best describes his scope of focus?

A. Organisational structure and how to combine jobs with people efficiently
B. How human behaviour and social needs influence work and motivation
C. Finding the one best way to perform production tasks and work methods ✓
D. Developing legal frameworks for managing large multinational corporations

Answer: C — Taylor, a mechanical engineer, focused on identifying the most efficient production methods and work processes — this is the essence of Scientific Management.

Q6. The case of Toyota Motor Corporation demonstrates that management principles serve which of the following primary purposes?

A. To provide strict rules that employees must follow without question
B. To serve as broad guidelines for stating organisational vision and the ways to achieve it ✓
C. To replace the need for individual manager decision-making
D. To ensure that all organisations worldwide follow identical practices

Answer: B — Toyota's 7 guiding principles show how management principles act as broad guidelines that shape both the vision and the methods to achieve global objectives.

Q7. The Neo-Classical School of management thought (1920s-1950s) developed as a response to which limitation of Classical Management Theory?

A. Classical theory ignored the role of technology in production
B. Classical theory assumed people respond only to economic incentives and ignored social needs, drives, and attitudes ✓
C. Classical theory paid too much attention to human factors and not enough to production
D. Classical theory did not provide any principles for decision-making

Answer: B — Neo-Classical theorists (studying Hawthorne effects) recognised that employees respond not just to economic incentives but also to social needs and human factors, which Classical theory overlooked.

Q8. A manager at Company A promotes employees based on seniority, while a manager at Company B promotes based on merit. Both decisions are justified under management principles because: Assertion (A): Management principles are flexible guidelines that adapt to situational demands. Reason (R): Human behaviour and organisational contexts are never static and require creative application of principles.

A. Both A and R are true, and R correctly explains A ✓
B. Both A and R are true, but R does not correctly explain A
C. A is true, but R is false
D. A is false, but R is true

Answer: A — Both statements are true and correctly linked — management principles are flexible (A) because human behaviour and contexts are dynamic (R), justifying different applications by different managers.

Q9. The evolution of management thought includes 6 phases. Arranging them chronologically, which of the following is the INCORRECT sequence?

A. Early Perspectives → Classical Management Theory → Neo-Classical Theory
B. Neo-Classical Theory → Behavioural Science Approach → Management Science
C. Management Science → Modern Management → Early Perspectives ✓
D. Classical Management Theory → Neo-Classical Theory → Behavioural Science Approach

Answer: C — Option C incorrectly places Modern Management before Early Perspectives and Management Science before Neo-Classical Theory; the correct order is Early Perspectives → Classical → Neo-Classical → Behavioural Science → Management Science → Modern.

Q10. Henri Fayol (French mining engineer) and F.W. Taylor (American mechanical engineer) both contributed to Classical Management Theory but with different scopes. Which statement most accurately distinguishes their approaches? Statement 1: Taylor focused on finding the one best way to perform individual work tasks, while Fayol focused on how to structure the entire organisation. Statement 2: Both theorists emphasised the importance of adapting principles flexibly to every unique situation.

A. Statement 1 is correct; Statement 2 is correct for both theorists equally
B. Statement 1 is correct; Statement 2 is primarily true for modern management, not for Taylor and Fayol ✓
C. Both statements are incorrect — Taylor and Fayol had identical scopes of focus
D. Statement 1 is incorrect; both focused exclusively on organisational structure

Answer: B — Statement 1 correctly distinguishes their scopes (Taylor = work methods, Fayol = organisation structure); Statement 2 is partially misleading — Classical theorists were more rigid; flexible adaptation is emphasised more in modern management.

Flashcards

What is a managerial principle?

A broad and general guideline for decision-making and behaviour that adapts to the demands of the situation.

Why are management principles NOT like pure science principles?

Because management principles deal with human behaviour which is never static, and technology changes, so they must adapt creatively to each situation.

Who gave the concept of 'Scientific Management'?

Frederick Winslow Taylor, an American mechanical engineer, pioneered the concept of Scientific Management.

Who developed 'Administrative Principles' of management?

Henri Fayol, a French mining engineer, developed Administrative Principles as the foundation of modern management.

What major historical event demonstrates early management principles in action?

The construction of the Great Pyramid of Cheops (2900 B.C.) by Egyptian ruler, which required 100,000 men for 20 years and shows principles of coordination and control at scale.

Name the 6 distinctive phases in the evolution of management thought.

Early Perspectives, Classical Management Theory, Neo-Classical Theory (Human Relations), Behavioural Science Approach (Organisational Humanism), Management Science/Operational Research, and Modern Management.

What is the core focus of the Classical Management Theory era?

Rational economic view, scientific management, administrative principles, and bureaucratic organisation during the industrial revolution and factory system.

How did Information and Communications Technology (ICT) change management principles?

ICT expanded managers' span of control from small workforces in narrow geographical areas to managing large global business empires.

What example shows the application of flexibility in management principles?

Different managers apply different principles for promotion — one follows seniority while another follows merit, both valid depending on organisational context.

According to the Toyota case, what do their 7 guiding principles demonstrate?

That management principles serve as broad guidelines for stating organisational vision and the ways to achieve it globally.

Important Board Questions

Define 'principle of management' and state one reason why management principles are not as rigid as principles of pure science. [2 marks]

Definition must include 'broad guideline for decision-making and behaviour'; reason must address human behaviour being dynamic and requiring creative application to different situations.

Explain with relevant examples how the advent of Information and Communications Technology (ICT) has changed the application of management principles. Why is flexibility in applying principles essential in modern organisations? [5 marks]

Use the Infosys example (managers interact globally from Bangalore using flat screen) to show expanded span of control; explain that ICT expanded capability but principles still adapt to context — flexibility is essential because technology and human behaviour continue to evolve.

Analyse the evolution of management thought through its 6 phases. For each phase, state the key focus or limitation it addressed. Why did management thinking move from Classical Management Theory (purely production and structure-focused) to Modern Management (complex systems approach)? Support your answer with relevant historical and conceptual reasoning. [6 marks]

Chronology: Early Perspectives (coordination at scale) → Classical (efficiency/structure) → Neo-Classical (human relations oversight) → Behavioural Science (human potential) → Management Science (quantitative tools) → Modern (contingency/complexity); explain that each phase addressed limitations of the previous one; Classical ignored human psychology, so Neo-Classical added it; conclude that modern approach integrates all dimensions.

Assertion-Reason Questions for Principles of Management

Q1. Assertion (A):

Management principles are less rigid than principles of pure science.

Reason (R):

Management principles deal with human behaviour which is dynamic, and must be applied creatively based on situational demands.

Answer: A — Both A and R are true, and R is the correct explanation of A — Both assertion and reason are true, and the reason correctly explains why management principles are less rigid. The chapter explicitly states this relationship—principles must be flexible because they involve dynamic human behaviour. This is the correct understanding of the fundamental nature of management principles.

Q2. Assertion (A):

Frederick Taylor was a French mining engineer who developed the concept of Administrative Principles.

Reason (R):

Taylor's work was focused on finding the most efficient ways to perform tasks in organisations.

Answer: D — A is false but R is true — The assertion is false. Taylor was an American mechanical engineer (not French mining engineer—that was Fayol), and he developed Scientific Management (not Administrative Principles). While the reason about finding efficient ways is partially descriptive of management work generally, the assertion is fundamentally incorrect. Both components are problematic, making D the answer.

Q3. Assertion (A):

The Classical Management Theory emphasised the rational economic view and division of labour as key to managing large-scale production.

Reason (R):

The Industrial Revolution required large-scale factory production which could not be managed without principles governing the organisation of work based on specialisation.

Answer: A — Both A and R are true, and R is the correct explanation of A — Both assertion and reason are true, and the reason adequately explains the assertion. The chapter clearly states that Classical Management Theory was characterised by rational economic view and that large-scale production during the Industrial Revolution required adherence to principles of division of labour and specialisation. The reason directly explains why this was necessary.

Unlock more Assertion-Reason questions in Premium — unlock →

Case-Based Questions (CBQ) for Principles of Management

Case Study:

Maruti Suzuki India Limited is implementing a new production system where each worker is trained to understand the complete process from raw material to finished product, rather than specialising in one task. Supervisors now use real-time dashboards to monitor production metrics, and workers are encouraged to suggest improvements. Decision-making authority has been distributed across different levels, with floor supervisors empowered to make certain decisions without waiting for higher management approval. The company has also established a reward system that includes both salary and recognition for innovative ideas.

Q1. Which management theory's principles is Maruti Suzuki BEST applying by moving away from narrow specialisation to holistic process understanding?

A. Classical Management Theory emphasising only division of labour
B. Behavioural Science Approach recognising human need for meaningful work and using all capacities ✓
C. Early Perspectives from ancient Egyptian times
D. Management Science emphasising quantitative techniques exclusively

Answer: B

Q2. The company's use of real-time dashboards and metrics for monitoring represents which principle evolution?

A. A rejection of all modern management techniques
B. Application of management principles adapted through technological advancement (ICT) ✓
C. Proof that classical principles are superior to modern approaches
D. Unnecessary complication of simple management tasks

Answer: B

Q3. By empowering floor supervisors to make decisions independently, Maruti is demonstrating:

A. Evolution of management principles to adapt to modern organisational needs and human behaviour ✓
B. Classical Theory's rigid chain of command with no delegation
C. That all workers should make decisions without any supervision
D. That management principles are no longer necessary

Answer: A

Q4. The reward system combining salary and recognition for ideas reflects which aspect of management thinking?

A. Classical Theory's exclusive focus on economic incentives alone
B. That financial compensation is irrelevant in modern organisations
C. Recognition that employees are motivated by multiple factors including non-economic rewards and opportunities to contribute creatively ✓
D. Management Science's quantitative approach to compensation

Answer: C

Unlock more case studies in Premium — unlock →

Previous Year Questions (PYQ) for Principles of Management

Real CBSE board exam questions from past papers — free to attempt.

CBSE 2026 · Set 66/2/1 · 1 mark

Identify the incorrect statement with respect to 'Motion Study', as a technique of scientific management:

Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.
It refers to the study of movements like lifting, putting objects, sitting and changing positions etc., which are undertaken while doing a typical job.
Through this technique, Taylor was able to design suitable equipment and tools to educate workers on their use.
This technique helps to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

CBSE 2026 · Set 66/2/1 · 1 mark

'Taylor believed that industrial efficiency depends to a large extent on personnel competencies. He was of the view that the concern for efficiency could be built in right from the process of employee selection. Each person should be scientifically selected. The work assigned should suit her/his capabilities. To increase efficiency, they should be given the required training.' The principle of scientific management discussed above is:

Science, not Rule of Thumb
Harmony, Not Discord
Cooperation, Not Individualism
Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

CBSE 2026 · Set 66/2/1 · 6 marks

(a) Explain 'Science, not Rule of Thumb' as a principle of Scientific Management and 'Functional Foremanship' and 'Time study' as techniques of Scientific Management.

CBSE 2026 · Set 66/2/2 · 6 marks

Explain 'Harmony, Not Discord' as a principle of Scientific Management and 'Method Study' and 'Standardization and Simplification of Work' as techniques of Scientific Management.

CBSE 2026 · Set 66/2/3 · 1 mark

Identify the incorrect statement with respect to 'Motion Study', as a technique of scientific management :

Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.
It refers to the study of movements like lifting, putting objects, sitting and changing positions etc., which are undertaken while doing a typical job.
Through this technique, Taylor was able to design suitable equipment and tools to educate workers on their use.
This technique helps to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

CBSE 2026 · Set 66/2/3 · 1 mark

Science, not Rule of Thumb
Harmony, Not Discord
Cooperation, Not Individualism
Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity.

CBSE 2026 · Set 66/2/3 · 6 marks

(a) Explain 'Co-operation, Not Individualism' as a principle of Scientific Management and 'Fatigue Study' and 'Differential Piece Wage System' as techniques of Scientific Management.

CBSE 2026 · Set 66/1/1 · 1 mark

The workers in Alpha manufacturing company were using traditional methods for production of metal parts. Since no standard procedure existed, workers relied on personal experience and guess work. As a result, productivity in the assembly line began to decline. To improve productivity, the company hired a consultant specializing in scientific management. The consultant explained that there was only one best method to maximize efficiency and this method could be developed through proper study and analysis. He emphasized that the scientific method should replace the old method, that the workers were using. So, to develop the scientific method, the consultant carefully investigated the traditional methods through work-study and by unifying the best practices, he developed a standard method that would be followed by everyone in the organization. After applying scientific method, there was a three fold increase in productivity within six months. The principle of scientific management which helped the company in increasing the productivity was:

Science, not Rule of Thumb
Harmony, Not Discord
Cooperation, Not Individualism
Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity

CBSE 2026 · Set 66/1/1 · 1 mark

Match the principle of management given in Column – I with its explanation given in Column – II: (a) Discipline – (i) There should be one and only one boss for every individual employee in the organisation. (b) Unity of direction – (ii) There should be a place for everything (everyone) and everything (everyone) should be in its (his/her) place. (c) Order – (iii) There should be obedience to organisational rules and employment agreement which is necessary for the working of the organisation. (d) Unity of command – (iv) Each group of activities having the same objective must have one head and one plan. Choose the correct option from the following:

(a)-(iii) (b)-(iv) (c)-(i) (d)-(ii)
(a)-(iv) (b)-(iii) (c)-(ii) (d)-(i)
(a)-(iv) (b)-(iii) (c)-(i) (d)-(ii)
(a)-(iii) (b)-(iv) (c)-(ii) (d)-(i)

CBSE 2026 · Set 66/1/1 · 4 marks

Rajiv was on the board of directors of 'Tako Solutions', a software development company and 'Sabka Mart Retail', a large supermarket chain. He wanted to apply management principles in both the companies to improve efficiency and profitability. He knew that management principles can be applied as much to 'Tako Solutions' as to 'Sabka Mart Retail' though the extent to which the principles can be applied will differ, because the nature of work, scale of operations and business activities in a software firm and a supermarket chain are not the same. Rajiv also knew that the management principles would not provide readymade solutions because real world situations faced by the two companies were very complex and dynamic. Still, he believed that even small guidelines could help in solving many problems and will improve the way both companies worked. Identify and explain the two points that highlight the nature of principles of management, in the above case.

CBSE 2026 · Set 66/1/2 · 1 mark

Match the principle of management given in Column – I with its explanation given in Column – II: Column – I: (a) Discipline (b) Unity of direction (c) Order (d) Unity of command; Column – II: (i) There should be one and only one boss for every individual employee in the organisation. (ii) There should be a place for everything (everyone) and everything (everyone) should be in its (his/her) place. (iii) There should be obedience to organisational rules and employment agreement which is necessary for the working of the organisation. (iv) Each group of activities having the same objective must have one head and one plan. Choose the correct option from the following:

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

CBSE 2026 · Set 66/1/3 · 1 mark

Match the principle of management given in Column – I with its explanation given in Column – II: Column – I: (a) Discipline (b) Unity of direction (c) Order (d) Unity of command Column – II: (i) There should be one and only one boss for every individual employee in the organisation. (ii) There should be a place for everything (everyone) and everything (everyone) should be in its (his/her) place. (iii) There should be obedience to organisational rules and employment agreement which is necessary for the working of the organisation. (iv) Each group of activities having the same objective must have one head and one plan. Choose the correct option from the following:

(iii) (iv) (i) (ii)
(iv) (iii) (ii) (i)
(iv) (iii) (i) (ii)
(iii) (iv) (ii) (i)

See all 67 board PYQs for this chapter — open PYQ tab →

Class 12 Business Studies Previous Year Questions, Chapter-wise

All 924 CBSE board questions from 2022–2026, sorted by chapter and question type. Free PDF download.

See all past board questions →

Next chapterBusiness Environment →

You've seen the free preview. Open the full interactive study kit — mind map, instant-graded quiz, progress tracking — free, no sign-in required.

Open Full Study Kit — Free →

Premium unlocks the full Question Bank, Daily Practice Papers, Chapter Quiz and Full Mock Papers for every chapter.