NCERT Solutions Class 12 Business Studies Chapter 2

NCERT Solutions Class 12 Business Studies Chapter 2- Principles of Management

To get a hold of Class 12  Business Studies Chapter 2- Principle of Management, students should refer to Extramarks Class 12 BST Chapter 2 NCERT Solutions. Students in Class 12 can now learn and revise important points, definitions, and questions and answers from the study material offered by NCERT Solutions Class 12 Business Studies Chapter 2. Furthermore, because NCERT’s answers are prepared only by subject experts, they are quite dependable. These subject experts have extensive teaching experience. Henceforth, students are advised to use NCERT solutions for last-minute exam preparation and revision.

Principles of Management – NCERT Solutions for Class 12 Business Studies Chapter 2 are written in simple language with point-by-point explanations. Students can access a variety of additional study tools on the Extramarks website in addition to the NCERT solutions. Students get access to all materials, including NCERT books, CBSE revision notes, CBSE sample papers, CBSE previous year question papers, and so on.

Key Topics Covered In NCERT Solutions Class 12 Business Studies Chapter 2

Following are the key topics covered in NCERT Solutions Class 12 Business Studies Chapter 2- Principles of Management:

To get more comprehensive knowledge about Management, students should grasp all the concepts of Chapter 2- Principles of Management. Students should refer to NCERT Solutions Class 12 Business Studies Chapter 2 provided by Extramarks to prepare for their forthcoming examinations. The fundamentals are explored in great detail to help students understand the concepts. With the help of these answers, students will obtain a full comprehension of all of the chapters.

Here’s the detailed information on each subtopic in NCERT Solutions Class 12 Business Studies Chapter 2 Principles of Management.

Principles of Management

A principle is a statement that serves as a framework for thinking and acting. A system of belief or action, or a chain of reasoning, is built on the basis of a principle.

• Management principles are broad and fundamental concepts that determine the relationship between cause and effect.
• These principles serve as a set of criteria for management decision-making and action.
• Management forecasts the outcome of their actions based on principles.
• Because management principles deal with human behaviour, they are less strict than scientific principles and must be implemented imaginatively as per the requirement of the circumstance

Nature of Principles of Management

Under this section of NCERT Solutions Class 12 Business Studies Chapter 2, the following are some examples of management principles:

• Universality: Management principles are universally applicable. These are relevant to all sorts of organisations, including for-profit and non-profit, small and large businesses, and at all power levels. Because these ideas are universal, they may be used in a variety of management scenarios.
• Created by Practise and Experimentation: The concepts were formed by scientists via study, experimentation, knowledge, and expertise. With the use of observation, analysis, and experience, the concepts are applied to address various managerial challenges.
• Human Behaviour: Because management must deal with human behaviour, the concepts are designed to influence human behaviour. Because they are based on complicated human behaviour that cannot be controlled, they are basic instructions for action that can be implemented according to the context.
• Contingent: The rules are relative rather than absolute. The principles are implemented based on the present condition at a certain point in time.
• Cause and Effect of Relationship: They establish a cause-and-effect link so that they may be used in a variety of scenarios.
• Dynamic and Flexible: These concepts are not set in stone, and practising managers may modify them in response to changing circumstances and the corporate environment. They have a lively and adaptable character.

Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 2, which will come in handy during your upcoming examination preparation.

Significance of Principles of Management

The Extramarks NCERT Solutions Class 12 Business Studies Chapter 2 throw light on the significance of principles of management:

• Providing Managers with Useful Insights into Reality: Managers get insight into real-world work circumstances by using management concepts. The use of concepts will improve their comprehension, aptitude, and knowledge of diverse managing scenarios and conditions.
• Scientific Decisions: Decisions must be made on the basis of facts and justified in terms of their intended purpose. They must be realistic, practical, measurable and evaluable. Bias and prejudice are absent from principles.
• Complete Utilisation of Resources and Effective Administration: Maximum benefit at the lowest cost is what optimal resource usage entails. To increase management efficiency, the principles were designed based on the experiences of many specialists. The principles instruct managers on how to operate in an organised manner without wasting time or resources to get the most out of their efforts.
• Management Training, Education and Research: Management principles are important for managers because they assist them to improve their knowledge, which is the foundation for management training and research.
• Meeting the changing Environmental requirements: Management principles are adaptable and dynamic, allowing the firm to fulfill its objectives even in a changing business environment.
• Fulfilling Social Responsibility: Management principles also guide managers in meeting social duties while also assisting them in accomplishing company goals. Managers may utilise principles to make the best use of people and material resources. When resources are used efficiently,the quality of life of labour improves

Students can register at extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 2.

Taylor’s Scientific Management

“Scientific management is the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way.”    -F.W Taylor

FW Taylor, labelled as the “Father of Scientific Management,” was the first to establish management as a science based on fundamental principles and scientific methodologies to address managing issues.

Principles of Scientific Management

Extramarks NCERT Solutions Class 12 Business Studies Chapter 2 teaches the following basic principles of scientific management:

• Science, not Rule of Thumb: Instead of using the hit-or-miss strategy, every work performed in an organisation should be based on scientific research and analysis. To work efficiently and successfully, there should be a scientific strategy in place and uniform equipment. As a result, new techniques and methods must be developed to simplify activities and enhance ease of performance, and management should not rely on outdated ways and techniques.
• Harmony, not Discord: In order to fulfil organisational goals, there must be total harmony between management and labour. It suggests that a healthy working atmosphere is essential. Taylor brought about a total revolution in management rules in order to respect each other’s roles and avoid any form of conflict (Mental Revolution).
• Cooperation, not Individualism: Instead of individualism, there should be comprehensive collaboration and coordination between labour and management to achieve organisational goals. Employees’ constructive comments should be supported since this will prevent them from going on strike and making unrealistic demands.
• Development of Each and Every Person to Their Greatest Efficiency and Prosperity: Taylor advised management to focus on scientific planning of operational work and workers to focus on producing high-quality output. The idea encourages taking steps to improve the capabilities of everyone who works for the company.

They should be chosen through a scientific procedure, given rigorous training, and then allocated tasks based on their abilities. This will boost overall production by fully leveraging the workers’ abilities.

Techniques of Scientific Management

Under this topic of NCERT Solutions Class 12 Business Studies Chapter 2, students learn about scientific management.

• Functional Foremanship: Functional foremanship is a management method in which planning and execution are separated. The task of supervision is separated into various specialised responsibilities, each of which is assigned to a foreman. This idea builds on Fayol’s division of labour and specialisation theory. It is carried out by eight people, who are divided into two groups: Planning and Production Incharge:

Planning Incharge: Clerk for Instruction Cards, Clerk of the Route, Clerk of Time and Cost, and Disciplinarian.

Production Incharge: Boss of Speed, Gang Leader, Boss’s Repair and Inspector.

• Standardisation and Simplification of Work: The practice of setting standards for every company operating in order to optimise productivity is known as standardisation. Simplification is the process of removing non-essential product or service variants or sizes. Simplification and standardisation can reduce the cost of labour, machinery, and tools. It leads to better resource use and increased turnover.
• Method Study: The goal of a method study is to identify the best feasible technique to complete a task in order to maximise efficiency and resource usage while also improving customer quality and happiness.
• Fatigue Study: In order to complete a given work, a fatigue study specifies the length and frequency of rest intervals. During rest time, workers will be able to replace their depleted energy, preventing accidents, rejections, and industrial sickness.
• Time Study: It establishes the average time required to complete a specific task. A time study aims to figure out how many workers will be needed, create appropriate incentive systems, and calculate labour expenses.
• Motion Study: It is the science of detecting and reducing wasted movements in the workplace caused by workers’ unintentional, accidental, and inefficient motions. This will assist in completing the work in a shorter amount of time.
• Differential Piece Wage System: This distinguishes between efficient and unproductive employees and establishes a relationship between salaries and productivity. The standard daily output is determined. Two-piece rates are applied: higher rates for those who reach the standard output or more significant, i.e. efficient employees, and lower rates for inefficient and slow-paced workers. As a result, productive employees will be rewarded, while inefficient employees will be encouraged to improve their performance.

Get on board with Extramarks and get access to NCERT Solutions Class 12 Business Studies Chapter 2, which will come in handy during your upcoming examination preparation.

Fayol’s Principles of Management

Henry Fayol, a French industrialist, created a broad theory of management based on his experience and research. He proposed fourteen management concepts. Extramarks explains Fayol’s Principles of Management in detail.

Principles of Management developed by Fayol:

• Division of Work: Division of work refers to the process of breaking down a large assignment into smaller tasks and assigning them to personnel. The entire process is broken down into little parts, and each task is completed by a skilled specialist who is qualified to handle the job. As a result, it leads to enhanced efficiency, specialisation, and production.
• Authority and Responsibility: The capacity or right to make choices and finish tasks is called authority, while the commitment to accomplish the job assigned on time is referred to as responsibility.

These two are closely linked. An executive who has just a duty but no power is less motivated to carry out their responsibilities. Giving authority without assigning responsibilities may also lead to power abuse.

• Discipline: Obedience, respect for authority, and adherence to rules and regulations are all examples of discipline. Discipline is critical to maintain a productive working atmosphere in the company. Good monitoring at all levels and a well-established system of sanctions will aid in the organisation’s discipline.
• Unity of Command: According to Fayol, each employee should have just one superior who may give him duties and who is responsible. This will reduce confusion, disagreement, and task duplication.
• Unity of Discretion: All of an organisation’s components should work towardsthe same goals through coordinated and targeted efforts. A collection of people with the same goal should have one leader and one strategy As a result, this concept ensures that all actions are coordinated.
• Subordination of Individual Interest to General Interest: The organisation’s interests should take precedence above the interests of any individual employee. Simply said, the organisation’s interests must take precedence over individual interests.
• Remuneration of Employees: Fair pay and remuneration should be provided to all employees in the business. Employees should be paid justly in order to maintain a respectable level of life. The salary should be based on the organisation’s ability to pay.
• Centralisation and Decentralisation: Decentralisation refers to the dissemination of decision-making power among several people, whereas centralisation refers to the concentration of decision-making authority within a single person. Because no organisation can be totally centralised or decentralised, a balance of the two is required. Students may refer to various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 2.
• Scalar Chain: Scalar chain refers to the formal lines of authority and flow of communication between superiors and subordinates from the highest to the lowest positions. This chain should not be broken, although, in the event of an emergency, employees at the same level can communicate through Gang Plank by telling their immediate supervisors.
• Order: Material and social order are required in any organisation. “People and stuff should be in the right places at appropriate times for optimal efficiency,” says Fayol. Material order entails having a place for everything and having everything in its proper position. Still, social order entails having a place for everyone and having everyone in their proper place.
• Equity: Employees should be treated fairly and equally by management. Fairness to all employees, who should be treated as equitably as possible without prejudice, requires common sense and expertise. As a result, unjustified favouritism or sanctions should be avoided.
• Stability of Personnel: Employee turnover should be kept to a minimum to maintain organisational efficiency. Personnel should be picked and hired through a comprehensive selection process, and the chosen individual should be maintained for a set period to allow the employee to produce results, as learning and acclimating to a new position takes time.
• Initiative: Employees should be encouraged to make and carry out improvement strategies. With self-motivation, the initiative involves taking the first step. It requires devising and implementing a plan.
• Esprit De Corps: Employees should have a sense of belonging, unity, and harmony, according to management, and efforts should be made to ensure organisational coherence.

Students can register at extramarks to access various other study materials in addition to NCERT Solutions Class 12 Business Studies Chapter 2.

Taylor Vs Fayol

Students may refer to various sources in addition to NCERT Solutions Class 12 Business Studies Chapter 2 while preparing for their examination. 

NCERT Solutions Class 12 Business Studies Chapter 2 

Students may refer to various study materials that help them understand the topics in the chapter. To source these materials, they may register on Extramarks. Click on the below links to view NCERT Solutions Class 12 Business Studies Chapter 2: 

Business Studies Class 12 Chapter 2: Very Short Answer Type Questions

Business Studies Class 12 Chapter 2: Short Answer Type Questions

Business Studies Class 12 Chapter 2: Long Answer Type Questions

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By referring to Extramarks NCERT Solutions Class 12 Business Studies Chapter 2, students can easily understand the Nature and Significance of Management.

Key Features of NCERT Solutions Class 12 Business Studies Chapter 2

Students must concentrate on all topics in the chapter in order to do well in the exam. Hence, NCERT Solutions Class 12 Business Studies Chapter 2 provides a detailed answer to all questions. Some of the major reasons you must choose Extramarks include:

• Students can score well through these explanatory NCERT Solutions Class 12 Business Studies Chapter 2 provided by Extramarks. 
• All solutions are formed keeping in mind the guidelines laid by NCERT.
• All solutions are mentioned in a detailed and easy to understand manner.