CBSE Important Questions Class 12 Business Studies Chapter 2

Important Questions Class 12 Business Studies Chapter 2

Important Questions for CBSE Class 12 Business Studies Chapter 2 – Principles of Management

Class 12 Business studies Class 2 Important Questions outline that management concepts give managers insight into actual workplace circumstances. Their knowledge, skill, and comprehension of diverse managing scenarios and conditions will increase with the use of management-related principles.

With these Business studies Class 12 Chapter 2 Important Questions, students will come to know that maximum benefit at the lowest cost is what is meant by optimal resource utilisation. To increase managerial effectiveness, these principles have been created based on the experiences of numerous specialists. In order to maximise benefits, the principles direct managers to work in a methodical manner without wasting time or resources.

Moreover, with these Class 12 Business Studies Chapter 2 important questions, Extramarks will provide students with detailed and authentic solutions to Chapter 2 Class 12 Business Studies important questions.

CBSE Class 12 Business Studies Chapter-2 Important Questions

Study Important Questions for Class 12 Business Studies Chapter 2 – Principles of Management: 

1. What is a mental revolution? 

Mental revolution entails a shift in both management and labour mentality from competition to cooperation.

1. What is the simplification of work? 

It entails simplifying work by eliminating unnecessary product variations, sizes, dimensions, and so on in order to maximize resource utilization and save labour and administrative expenses.

1. What do we mean by the universal applicability of management principles? 

Management principles are universally applicable. These are applicable to all types of organisations, both commercial and noncommercial, small and large, and at various levels of power. Because these ideas are universal, they can be utilised in a variety of managerial contexts.

1. What is meant by Flexibility? 

Managers that are flexible can adjust the principles to meet their needs and use them imaginatively to solve business difficulties.

Very Short Answer Questions (1 mark): 

1. Describe the ‘Gang Boss’ role in functional foremanship. 

The gang boss makes sure that the equipment and employees are suitable for the job. Hence, is in charge of keeping equipment and tools in a usable state.

1. Define management principles. 

The broad and fundamental facts known as management principles define the causal relationship between causes and their effects. These principles work as a set of guides for managerial choice and conduct.

1. Give an example of a scientific management method that effectively encourages employees to perform to standards.

Differential piece wage system

1. Name the organisational structure that helps to improve operational and management effectiveness.

Enhancing managerial and operational efficiency is made easier by the functional organisation.

1. What does “universal applicability of management principles” mean?

The phrase “universal applicability of management concepts” refers to the idea that management principles should be applicable in all situations and to all sorts of organisations.

1. Give one explanation of why management principles do not automatically offer ready-made solutions to all managerial issues.

Because management principles only give managers basic recommendations, they cannot be used to solve all managerial issues. This is because real-world business circumstances are extremely complex and not dependent on theoretical knowledge.

1. Describe the ‘route clerk’ position in functional foremanship.

The task should be completed or accomplished in the order or path specified by the route clerk. Therefore, he is in charge of defining the production route. 

1. Factory owners or managers used their own discretion to handle the issues they encountered while managing their employees’ work. Which Taylor principle is being discussed here?

Science and not Rule of Thumb. 

1. The directors of XYZ Limited, a company that makes computers, have tasked the sales manager with increasing sales twofold. The sales manager lacks the power to hire more salespeople or raise sales expenses. As a result, he was unable to reach his goal. Determine the principle that was broken in this case. 

Principle of Authority and Responsibility.

1. A corporation that produces both cars and motorbikes ought to have independent divisions, each with its own divisional management, strategies, and resources. With the aid of this example, identify the underlying principle. 

Principle of Unity of Direction. 

1. Name two things that best describe the essence of management principles. 

The following details emphasise the characteristics of management principles: 

• They apply to everyone. 
• They are adaptable

1. In a company, Hina and Hitesh both work as typists and share the same educational background. For the same number of hours worked, Hina receives a salary of Rs. 3000 per month, while Hitesh receives a salary of Rs. Which management concept is broken in this situation? Name the idea and describe it. 

In this instance, the equity principle has been broken. According to this idea, management must treat its employees with fairness, kindness, and justice and ensure that employees in similar positions receive the same treatment.

1. What does “flexibility of management principles” mean?

The ability of management concepts to be modified in accordance with organisational needs and creatively applied by managers is referred to as flexibility.

1. Who made the suggestion that foremanship is functional?

Fredrick Winslow Taylor introduced the concept of functional foremanship. 

1. Why is it said that management principles may be applied anywhere?

Because the management concepts are relevant to all types of organisations, regardless of size or nature, they are referred to as having a universal application.

Short Answer Questions ( 3 or 4 marks): 

1. Why is it claimed that management principles are “primarily behavioural” and “contingent” in nature? Also, describe how management principles “helps in intelligent decision-making” and “provides managers with important insights into reality.”

The fundamentals of management are mostly behavioural and contingent in character, giving managers important perceptions of reality and aiding in deliberate decision-making. Following is an explanation for this: 

• Principles of management explain the interaction between human and physical resources, but they have the greatest influence on human behaviour when it comes to attaining organisational objectives. 
• Dependent: The applicability of management concepts depends on the specific circumstance and the needs present at that particular time. 
• Gives managers practical perceptions into reality: After much trial and error, management principles are developed. In order to deal with similar business difficulties, they offer ideas, suggestions, or instructions.
• Supports deliberate decision-making: Management principles founded on logic, experimentation, and observations offer timely, realistic assessments of the current situation.

1. Describe the foundational tenets of scientific management. 

The following are the guiding concepts of scientific management: 

• Science Not Rule of Thumb: Rather than using a hit-and-miss approach, every task carried out within an organisation should be based on a scientific investigation and analysis. To do work efficiently and successfully, there should be a scientific plan and standardised equipment. Therefore, new techniques and methods must be established in order to streamline the duties and encourage ease of execution. Management should also stop employing traditional methods and techniques. 
• Harmony, Not Discord: According to this idea, there must be effective communication and trust between management and employees. Management and employees work together to accomplish organisational goals.
• It is a continuation of harmony rather than discord: cooperation rather than individualism. According to this notion, every individual inside an organisation must contribute to attaining its objectives. To successfully and efficiently achieve targeted goals, management and employees must collaborate. 
• Development of Each and Every Person to his or her Greatest Efficiency and Prosperity: In accordance with this idea, businesses must hire people who are qualified to carry out the necessary tasks. To increase production and achieve growth, it must offer employees ongoing on-the-job training.

1. Why is it said that management principles are “essentially behavioural” and “contingent” in nature? Additionally, describe how management concepts “provide the managers with useful insights into reality” and “assist in intelligent decision making.”

Management principles are “mainly behavioural,” “contingent,” and “provide the managers with useful insights into reality” in addition to “helping in intelligent decision making.” The following points provide support for these assertions: 

• Largely behavioural The management concepts are “essentially behavioural” in nature because they seek to influence individuals and their application varies according to human nature. 
• Contingent: Their application is dependent on the situation as it exists at a particular time. The application needs to be adjusted to the circumstances. 
• Practice and experimentation form the basis of management concepts, which are founded on years of experience. As a result, these concepts help managers deal with challenges that arise in the present.
• Relationship between cause and effect: Management decisions must be carefully considered. They must unquestionably be founded in reality. Real-world problems served as the basis for the development of management principles, which have withstood the test of reason and logic.

1. Give a brief explanation of “discipline” and “scalar chain” as broad management principles.

The justifications are as follows: 

• Discipline: Maintaining discipline while working for an organisation entails abiding by its policies and the requirements of your job contract. An organisation needs a good supervisor, fair and transparent agreements, and careful application of sanctions to preserve discipline.

• Scalar Chain: According to this organisational theory, communication and authority must flow down an organization’s hierarchy from the top to the bottom. Only in grave circumstances may two individuals who share the same degree of power but are employed by different departments adhere to the gangplank principle and speak openly.

1. Give a brief explanation of the general management principles of “Order” and “Unity of Direction.”

 They are as follows: 

• Unity of Direction: According to this idea, every department or group of activities with the same goal should have its own plans and be led by an independent in charge. The ‘one head, one plan’ principle must be observed. 
• Order: According to this notion, the organization should be well-organized. It implies that each resource should have a designated location and that each resource should be in that location. For instance, production in a plant layout should occur on Machines 1 and 2 in turn, then both machines should be positioned next to one another. If the two machines are too far apart, the production process may be delayed, resulting in lower productivity and higher expenses.

1. It might be claimed that the “derivation of management principles is a subject of science.” Explain? 

Following observation, experimentation, and experience by various managers, management concepts are developed. These concepts have been developed over a considerable amount of time as a result of the constant application and the managers’ own past experiences in actual circumstances. Management principles are founded on human behaviour, and managers can utilise them in novel ways depending on the circumstances.

1. “Discipline is a two-edged sword” Comment? 

Discipline is a two-pronged technique because it pertains to both creating rules and regulations for the organization’s personnel as well as encouraging or motivating them to adhere to these rules and regulations. An organisation needs a good supervisor, fair and transparent agreements, and careful application of sanctions to preserve discipline.

1. Explain how management principles work can help managers meet the demands of a changing environment, aid in efficient resource management, and aid in successful administration. 

By enabling managers to anticipate the cause-and-effect relationship of their decisions and actions, management principles aid in the most effective use of resources. As a result, waste associated with a trial-and-error approach can be avoided. In order to ensure that management judgments are free from bias and personal prejudice, management principles set limits on their discretion. This aids in effective administration. 

Because management principles can be amended in response to environmental changes, such as the expansion of the principle of work division across the entire enterprise, they assist managers in adapting to the demands of a changing environment. As a result, businesses are concentrating on their core competencies and selling off non-essential businesses.

1. Why is it important to have a thorough understanding of management principles? Give five reasons.

For a commercial organisation to operate successfully, management principles are crucial. These values serve as management guidelines. They draw attention to the issues that require immediate managerial attention. These guidelines streamline the management procedure, boost general management effectiveness, and aid in the accomplishment of goals. 

The following can be used to summarise the importance of management principles: 

• Offer the management helpful perceptions of reality The managers follow the guiding principles of management. These principles enhance managers’ knowledge, skills, and comprehension in a variety of managerial settings. These principles’ results enable managers to learn from their errors.
• Optimal resource utilisation Several management principles, such as those of work division, discipline, unity of direction, order, etc., make it easier to use both human and material resources. They all work toward maximising the use of all types of resources for the achievement of organisational goals. 
• Scientific judgments Managers can learn the cause-and-effect relationships between factors operating in the organisation by using their knowledge of management concepts. They can provide a methodical, unbiased approach to issue-solving and decision-making.
• Meeting the demands of a changing environment Every businessman must adapt to the changes that are occurring in the commercial world. Management practices teach managers how to implement changes inside an organisation at the proper level and in the proper direction. 
• Being socially responsible Applying management concepts enables a manager to maximise efficiency and economy in the operations of his business. These guidelines are intended to maximise earnings without sacrificing social value. In other words, management principles work to ensure that society’s resources are utilised fully and that high-quality goods are made available to the public at reasonable costs.

1. Describe how management principles to aid in addressing the demands of a changing environment and reaching scientific conclusions. 

For a commercial organisation to operate successfully, management principles are crucial. These values serve as management guidelines. They draw attention to the issues that require immediate managerial attention. These guidelines streamline the management procedure, boost general management effectiveness, and aid in the accomplishment of goals. 

For a commercial organisation to operate successfully, management principles are crucial. These values serve as management guidelines. They draw attention to the issues that require immediate managerial attention. These guidelines streamline the management procedure, boost general management effectiveness, and aid in the accomplishment of goals. 

• Meeting the demands of a changing environment Every businessman must adapt to the changes that are occurring in the commercial world. Management practices teach managers how to implement changes inside an organisation at the proper level and in the proper direction. 
• Scientific judgments Managers can learn the cause-and-effect relationships between factors operating in the organisation by using their knowledge of management concepts. They can provide a methodical, unbiased approach to issue-solving and decision-making.

Long Answer Questions (5 or 6 marks)

1. Describe the characteristics of the management principles. 

The following are management’s characteristics: 

• Universal Applicability: Management principles are applicable anywhere. These are applicable to all different kinds of organisations, including for-profit and nonprofit, small and large businesses, and at various levels of power. These universally applicable ideas can be used in a variety of managerial contexts. 
• General guidelines are provided by management principles to help the organisation address issues that may arise in the course of doing business. 
• Formed through experience and experimentation: Principles are developed through extensive periods of time spent practising, experimenting, and observing by various managers. These have been developed as a result of managers’ ongoing practice and personal encounters with real-world events in the past.
• Flexibility: This refers to the managers’ ability to adapt the concepts to their needs and use them in novel ways to address business issues. 
• Principles of management explain the interaction between human and physical resources, although human behaviour is mostly influenced by behaviour while attaining organizational goals. 
• Relationship between Cause and Effect: They provide a connection between cause and effect so that they can be applied in various contexts. 
• Contingent: The principles are not absolute but rather relative. The principles are used depending on the circumstances at a particular time.

1. Why is it claimed that management principles are “primarily behavioural” and “contingent” in nature? Also, describe how management principles “helps in intelligent decision-making” and “provides managers with important insights into reality.”

The fundamentals of management are mostly behavioural and contingent in character, and they “provide managers meaningful insights into reality” and “assist in deliberate decision-making.” The following will clarify this: 

• The interaction between human and physical resources is explained by management principles, although human behaviour is primarily influenced by these factors while attaining organizational objectives. 
• Dependent: The applicability of management concepts depends on the specific circumstance, the demands of the moment, and the circumstances under which it occurs. 
• Gives managers practical perceptions of the world around them: The following testing and practise, management principles are developed. Therefore, they offer suggestions, advice, or guidance on how to handle difficulties unique to businesses.
• Supports deliberate decision-making: Management principles founded on logic, experimentation, and observations offer timely, accurate, and realistic assessments of the current situation.

Extramarks have provided important questions as per the CBSE syllabus keeping in consideration CBSE past years’ question papers for the preparation of students.