Principles of Management MCQ | Class 12 | Business Studies | Chapter- 2

Principles of Management MCQ Chapter 2

Below are some of the very important NCERT MCQ Questions of Principles of Management Class 12 Business Studies Chapter 2 with Answers. These Principles of Management MCQ have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 1 and term 2. We have given these Principles of Management MCQ Class 12 Business Studies Questions with Answers to help students understand the concept.

MCQ Questions for Class 12 Business Studies Chapter 2 are very important for the latest CBSE term 1 and term 2 pattern. These MCQs are very important for students who want to score high in CBSE Board.

We have put together these NCERT Questions Principles of Management MCQ for Class 12 Business Studies Chapter 2 with Answers for the practice on a regular basis to score high in exams. Refer to these MCQs Questions with Answers here along with a detailed explanation.

Principals of management mcq

MCQ 1-30

1. Management principles are very __________ whereas pure science principle are rigid.

  1. flexible
  2. contingent
  3. dependent
  4. absolute

2. Which of the following does not apply to principles of management?

  1. applicable in large firms
  2. formed by practice and experience of managers
  3. flexible
  4. contingent

3. Principles of management are significant because of

  1. providing managers with useful insights into reality
  2. optimum utilisation of resources and effective administration
  3. meeting changing environment requirements
  4. all of the above

4. Which of the following statements is false with respect to principles of management?

  1. the principles of management are formed by experience and collective wisdom of managers as well as experimentation
  2. principles of management are not rigid prescription which have to be followed absolutely
  3. management principles aim at influencing the behaviour of human beings
  4. the application of principles of management is not possible in contingent situation

5. Principles of management provide managers with useful insights into reality. Which of the following statement explain this proxy appropriately?

  1. adds to managerial knowledge
  2. enables managers to learn from past mistakes
  3. helps managers conserve time by solving recurring problems quickly
  4. all of the above

6. Management principles are contingent or dependent upon the situation prevailing in the organisation. Which is the correct explanation associated with this statement?

  1. Application of principles is suitable in similar situations in a large number of cases
  2. Application of principles has to be changed as per requirements
  3. Principles of management can be modified
  4. none of the above

7. How are the management principles derived?

  1. observation
  2. experimentation
  3. personal experience
  4. all of the above

8. Why accurate cause and effect relationship cannot be established by principles of management?

  1. because they mainly apply to human behaviour
  2. because real life situations are not identical
  3. both 1 and 2
  4. neither 1 nor 2

9. Match the following.

NATURE OF PRINCIPLES OF MANAGEMENTEXPLANATION
(a) universal applicability(i) direct but do not provide readymade, straightjacket solutions
(b) general guidelines(ii) not rigid prescriptions
(c) flexible(iii) aim at influencing behavior of human beings
(d) behavioural(iv) applicable to all kinds of organisation
  1. (i), (ii), (iii), (iv)
  2. (iii), (ii), (iv), (i)
  3. (iii), (iv), (i), (ii)
  4. (iv), (i), (ii), (iii)

10. Which of the following principles of management by Fayol states that there should be one and only one boss for every individual employee?

  1. unity of direction
  2. order
  3. unity of command
  4. division of work

11. Gangplank is a term associated with which principle of Fayol

  1. equity
  2. order
  3. scalar
  4. chain initiative

12. In a cotton textile mill, various tar tasks like spinning, weaving, seizing, bleaching etc. were divided into different groups of people. Identify the principle of management stated here.

  1. unity of command
  2. division of work
  3. stability of personnel
  4. unity of direction

13. Which statement is correct regarding division of work?

  1. intent is to produce more and better work from the same effort
  2. work is divided into small tasks
  3. trained specialists are required to perform each jobs
  4. all of the above

14. Which of the following statements is true?

  1. authority is only formal
  2. authority is only informal
  3. authority is formal and informal
  4. authority is neither formal or informal

15. Which of the following statements are true about ‘authority’?

  1. authority can be official authority or personal authority
  2. authority can be formal or informal
  3. authority should be proportional with responsibility
  4. all of the above

16. According to Fayol, the interest of an _________ should take priority over the interest of an __________.

  1. organisation, individual
  2. individual, organisation
  3. individual, group
  4. group, organisation

17. __________ principle of management is being violated if management is not fulfill its promise to increase wages of the work or update the mission is accomplished.

  1. Order
  2. Equity
  3. Discipline
  4. Initiative

18. Match the following.

PRINCIPLES OF MANAGEMENTEXPLANATION
(a) Unity of command(i) prevents hindrance in activities
(b) Unity of direction(ii) prevents overlapping of activities
(c) Stability of personnel(iii) prevents dual sub-ordinate
(d) Order(iv) prevents insecurity among employees
  1. (i), (ii), (iii), (iv)
  2. (iii), (iv), (ii), (i)
  3. (iii), (iv), (i), (ii)
  4. (iv), (i), (ii), (iii)

19. Which study is study of movements?

  1. method
  2. motion
  3. time
  4. none of these

20. Which of the following statements is false?

  1. functional foremanship is an extension of principle of division of work and specialisation to the shop floor
  2. under planning in charge for personal name speed boss, gang boss, repair boss and inspector would work
  3. time study determine standard time taken to perform a well-defined job
  4. cooperation, not individualism is an extension of the principle of harmony, not discord

21. Ananya joined ‘Style Ltd’ as Head of Production Department and realised that company was not performing well. She developed the best method using several parameters write from deciding the sequence of operations place of men, machines and raw materials till the delivery of the product to the customers. Identify the technique of scientific management being followed by Ananya?

  1. motion study
  2. fatigue study
  3. method study
  4. time study

22. Why did E.W. Taylor propose 8 specialist under functional foremanship?

  1. because all quality is like intelligence, education, tact, grit, manual dexterity, energy etc. could not be found in a single person
  2. because the number of four men of supervisor in a factory setup is very large
  3. because the number of worker in a factory setup is very large
  4. all of the above

23. Which of the following is an objective of standardisation?

  1. to reduce a given line or product to fixed type size and characteristics
  2. to establish interchangeability of manufactured parts and products
  3. to establish standards of excellence and quality and material and of performance of men and machines
  4. all of the above

24. Motion refers to the study of movements like lifting, sitting, putting things, changing positions etc. which are undertaken while doing a job. This helps to classify motion as

  1. productive
  2. incidental
  3. unproductive
  4. all of these

25. Which of the following activities are associated with ‘Mental Revolution’ on the part of management and workers?

  1. Trade unions not going on strike
  2. Management sharing the gains of the company with the workers
  3. workers working hard and be willing to embrace charge for the good of the company
  4. all the above

26. Name the principle of Scientific Management which suggests the introduction of scientific investigation and analysis.

  1. science, not rule of thumb
  2. harmony not discord
  3. cooperation not individualism
  4. development of each person to her/his greatest efficiency and prosperity

27. Which technique of Taylor differentiate between an efficient worker and an inefficient worker?

  1. standardisation and simplification of work
  2. differential piece wage system
  3. time study
  4. fatigue study

28. Akanksha keep machines, materials tools etc. ready for operations by concerned workers. Whose work is described by this statement under functional foremanship?

  1. Gang Boss
  2. Repair bus
  3. Route clock
  4. Speed Boss

29. Match the following.

UNDER PRODUCTION INCHARGERESPONSIBILITIES
(a) Speed boss(i) keeping machines and tools, etc. ready for operation by workers
(b) Gang boss(ii) Ensuring propeer working condition of machines and tools
(c) Repair boss(iii) Checking the quality or work
(d) Inspector(iv) Timely and accurate completion of job
  1. (i), (ii), (iii), (iv)
  2. (iv), (i), (ii), (iii)
  3. (iii), (iv) (i), (ii)
  4. (iv), (i), (iii), (ii)

30. Match the following.

UNDER PLANNING INCHARGERESPONSIBILITIES
(a) instruction card clerk(i) specify the route of production
(b) route clerk(ii) ensure discipline
(c) time and cost clerk(iii) draft instructions for the workers
(d) disciplinarian(iv) prepare time and cost sheet

MCQ Answers

1. (1)

The principles of management and not rigid prescriptions, which has to be followed absolutely the same manner. They are flexible and can be modified by the manager when the situations demands at time.

2. (1)

The principles of management and intended to apply to all types of organisation business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as the service sector.

3. (4)

The application of principles of management helps the manager to take right decision at the right time. By applying the management principles, the manager can focus on optimum use of available resources so as to achieve productive results at minimum cost and maximum profits. They also help managers to meet the changing requirements of the environment.

4. (4)

The application of principles of management is contingent or dependent upon the prevailing situation at the particular point of time. The application of principles has to be changed as per requirements. The principles of management are not fixed or permanent they are affected by situations or circumstances.

5. (4)

The principles of management provide the managers with useful insights into real world situation. Adherence to these principles well at to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly.

6. (2)

The principles of management are not fixed or permanent. They are affected by situations or circumstances. Therefore, the decision to implement them or not taken according to the situations or circumstances.

7. (4)

Management principles are developed only after dip and through research work. They are not develop overnight and they are not the personal feelings of any person. Proper observation and experiments are conducted before developing them. These are the expressions of the experience of the leaders of Management thoughts.

8. (3)

The principles of management are less than perfect since they mainly apply to human behaviour. In real life, situations are not identical. So, accurate cause and effect relationships may be difficult to establish. However, principles of management assist managers in establishing these relationships to some extent and therefore useful.

9. (4)

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

10. (3)

Principle of unity of command states that each employee in an organisation should receive orders from one superior only and he should be responsible to only one superior. It prevents confusion regarding tasks to be done.

11. (3)

Fayol define scalar chain as ‘The chain of superior ranging from the ultimate authority to the lowest’. Every orders, instructions, managers, messages, request, explanation etc. has to pass through scalar chain. But, for the sake of convenience and urgency, this path can be cut short and this shortcut is known as gangplank.

12. (2)

Dividing work among the workforce helps improving the quality of the overall product. Henry Fayol said that specialisation in work increases the productivity and improve efficiency. Division of labour also leads to the specialisation, accuracy and speed of the workers.

13. (4)

14. (3)

15. (4)

Managers require authority proportionate with their responsibility. There should be a balance between authority and responsibility. An organisation should build safeguard against abuse of managerial power. At the same time a manager should have necessary authority to carry out his responsibility.

16. (1)

The interest of the organisation must prevail upon the personal interest of individual. The standard rule for any organisation is the work on the collective interest of the organisation as a whole rather than personal interest of an individual.

17. (3)

Discipline is the ability is the obedience to the rules and Employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all level, clear and fair agreements and judicious application of penalties.

18. (2)

19. (2)

Motion study refers to the study of movements like lifting, putting weight, sitting and changing positions etc. which are undertaken while doing a typical job.

20. (2)

Under planning and charge for personal namely instruction card clerk, root clerk, time and cost clerk and disciplinarian worked. These 4 personnel would draft instruction for the workers, specify the route of production, prepared time and cost sheet and insured discipline respectively.

21. (3)

The objective of method study is to find out one best way of doing the job. To conduct this study, process chart and operation research techniques are used. The main objective of this study is to minimise the cost of production and maximize the quality and level of consumer satisfaction.

22. (1)

Taylor concentrated on improving the performance of this role in the factory setup. In fact, he identify a list of qualities of a good foreman/supervisor and found that no single person could fit them all. This prompted him to suggest functional foremanship through 8 people.

23. (4)

In order to ensure uniformity and work operations, work should be standardized it ensure that everyone was according to some standard framed in respect of time, cost, amount of work etc.

24. (4)

Motion study helps to find out the best way of doing the work. It studies the motion that a worker carries out while performing a job, eliminate unnecessary or waste for motions that result in fatigue and extra time to perform the work, arrives at the best combination of motion or the minimum time required to perform the work to improve efficiency and determine the standard motion for performing the given task.

25. (1)

Mental Revolution involves a change in the attitude of workers and management towards one another from competition to cooperation. Both should realise that they require one another. Both should aim to increase the size of surplus. This would eliminate the need for any agitation.

Management should share a part of surplus with workers. Worker should also contribute their mite so that the company makes profits.

26. (1)

This rule focuses on increasing the efficiency of an organisation through scientific analysis of work and not with the ‘Rule of Thumb’ method.

27. (2)

Taylor has advised the adoption of differential with system in order to motivate the employees. According to the system, the efficient workers should be paid more wages and inefficient one. This system is a source of incentive to workers who improve the efficiency in order to get more wages. It also encourages inefficient workers to improve the performance and achieve the standards.

28. (1)

Gang boss perform the preliminary operations regarding how workers should work on the machine. He also decides about which physical resources such as tools and equipments, etc. are required at the workplace and arranges for them.

29. (2)

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

30. (2)

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


Assertion-Reasoning Based MCQ

Code

  1. Both assertion and reason are true and reason is the correct explanation of assertion.
  2. Both assertion and reason are true but reason is not the correct explanation of assertion.  
  3. Assertion is true but reason is false.
  4. Assertion is false but reason is true. 

1. Assertion Principles of management are universally applicable.

Reason The principles of management can be applied to all types of organisation.

2. Assertion The application of principles of management is contingent.

Reason The principles of management are not rigid prescriptions which have to be followed absolutely.

3. Assertion Managerial principles help the management to come out with the methods that help in reducing wastage.

Reason Principles of management cannot be modified.

4. Assertion Principles of management help the managers in taking decisions based on the objective assessment of the situation.

Reason Managerial decisions must be timely and realistic.

5. Assertion Segregating work in the workforce amongst the worker will enhance the quality of the product.

Reason Division of work leads to specialisation.

6. Assertion In an organisation, there should be a chain of periods ranging from the ultimate authority to the lowest.

 Reason Managers required authority proportional to the responsibility.

7. Assertion There should be one and only one boss for every individual employee.

Reason If an employee has to follow more than one was there begins a conflict of interest and can create confusion.

8. Assertion Managerial activities should be divided into two parts which are planning and production.

Reason In a functional organisation work is divided into many small parts and each part is assigned to an expert.

9. Assertion Method study make the use of many techniques like process charts and operations research to achieve its main objective.

Reason The main objective of the method study is to minimise the cost of production and maximize the quality and level of consumer satisfaction.

10. Assertion Time study has in deciding the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

Reason It is a technique to determine the standard time taken by a worker of reasonable skill and efficiency to perform a well-defined job.

11. Assertion There should be complete cooperation between the labour and the management instead of individualism.

Reason The employees in an organisation must work together, keeping aside their objectives and ego to achieve the common goals set by the management.

Assertion-Reasoning Based MCQ Answer

1. (1)

Principles of management are universal in nature that means they can be applied to all types of organisation irrespective of their size and nature. Their results may vary and application may be modified but these are suitable for all kinds of organisation.

2. (2)

Application of principles of management is dependent upon the prevailing situation at a particular point of time. It has to be changed as per the requirements.

Principles of management a flexible and can be modified by the manager when the situation so demands.

3. (3)

As the principles of management can be modified, they help he manages to meet the changing environment requirements.

4. (1)

An effective decision must be e based on facts thoughtful and justifiable in terms of required purpose. Decisions must be timely and realistic. Principles of management help the managers in taking decisions based on the objective assessment of the situation, free of any bias and prejudice.

5. (1)

Division of work leads to specialisation and specialisation, help to increase efficiency, which results and improve ment in the productivity and profitable of the organisation.

6. (2)

There should be a balance between authority and responsibility. Authority facilitates the management to work efficiently. Responsibility makes them responsible for the work done under their guidance for leadership.

7. (1)

According to Fayol, there should be one and only one was for every individual employee. If an employee get orders from two superiors at the same time, the principle of unity of command is not obeyed. He felt that if this principle is violated “authorities undermined discipline is in your party order disturbed and stability threatened”.

8. (2)

Functional foremanship is an extension of the principle of division of work and specialisation to the shop floor. In order to improve the quality of the supervision of workers are the supervisory level, he developed the concept of functional foremanship. Taylor advocated the separation of planning and execution function.

9. (1)

The managers come across numerous ways of performing a particular task for carrying out the production of goods or service. Out of all the possible methods selection of the most appropriate way, which is cost-effective and also increases the production is considered a method study.

10. (1)

11. (1)

Corporation, mutual confidence, sense of goodwill should prevail among both managers as well as workers. The intention is to replace internal competition with cooperation.


Case-Study Based MCQ


1. Read the following passage and answer accordingly.

After completing her bachelors in fashion designing from well-known college in Germany, Aishwarya have opened a boutique in posh market in Delhi. She has divided the work in smaller units and each employee is well trained to perform His or her tasks efficiently.

The salesperson are allowed to close a deal with a buyer by giving a maximum of 5% discount whereas the decision to give any further discount rests with Aishwarya as the final authority. In the earlier period of a business venture, employees were asked to put an extra hours of work. In return she had promised to give him give them a special incentive within a year.

Therefore, when the business was doing well, she on her commitment by giving bonus to her employs. She also constructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards a female employees, when it comes to solve the conflicts among employees.

(i)  Aishwarya has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. Which principle of management is being followed here?

(a) centralisation and decentralization
(b) division of work
(c) discipline
(d) order

(ii) “The salesperson are allowed to close a deal with buyer with by giving a maximum of 5% discount, whereas the decision to give any for the discount rests with Aishwarya as the final authority”. Identify the principle of management being followed here

(a) centralisation and decentralization
(b) authority and responsibility
(c) unity of command
(d) unity of direction

(iii) “Therefore, when the business was doing well, she honoured her commitment by giving bonus to employees.” Which principle of management is being highlighted here?

(a) discipline
(b) order
(c) remuneration to employees
(d) unity of direction

(iv) Aishwarya tends to be more biased towards are female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?

(a) disciplined
(b) order
(c) equity
(d) none of these 

2. Read the following passage and answer accordingly.

Vishal, a student of Management at MDI Gurgaon likes to relate what he has learnt in his classes during study to real life situations around him. He observed many situations while watching educational programs on television star remind him of concepts of scientific management in one such programme, factories manufacturing parts for products like automobile, computer and mobile phones working telecast.

These factories had define benchmark during protections and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at eliminating superfluous varieties, sizes and dimensions and devising new varieties in state existing ones.

While watching the program, Vishal realised that these companies could adopt one best way of doing the job in order to be more productive. He also felt that the employees of these companies working for long hours continuously and needed to adopt certain strategies to order in order to improve their efficiency. The program also showed a few interviews where some workers were found to be highly efficient as compared with a few others.

(i) Name the technique of scientific management that the factories are saying to while manufacturing part for such product.

(a) method study
(b) motion study
(c) standardisation and simplification of work
(d) time study

(ii) Which scientific management technique would Vishal recommend for these factories if they have to find out one best way of doing the job?

(a) motion study
(b) time study
(c) method study
(d) fatigue study

(iii) Which scientific techniques should Vishal suggest for these factories if they have to help the workers regain their stamina and enable them to work again with the same capacity?

(a) motion study
(b) time study
(c) method study
(d) fatigue study

(iv) Which scientific management technique would Vishal advised the factors to implement in order to motivate the inefficient workers to perform better?

(a) functional foremanship
(b) method study
(c) time study
(d) differential piece rate system

Case-Study Based MCQ Answers

1. (i)(b) (ii)(a) (iii)(a) (iv)(c)

2. (i)(c) (ii)(c) (iii)(d) (iv)(d)


Final Words

From the above article, you have practiced Principles of Management MCQ of class 12 Business Studies Chapter 2. We hope that the above-mentioned MCQs for term 1 of chapter 2 Principles of Management MCQ World will surely help you in your exam. 

If you have any doubts or queries regarding Principles of Management MCQ (Multiple Choice Questions) with Answers, feel free to reach us and we will get back to you as early as possible.

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