MCQ BST

A.
MULTIPLE CHOICE QUESTIONS (MCQs)

1. Which of the following is not a function of management?
(a) Planning (b) Staffing (c) Cooperating (d) Controlling
2. The process of getting work done through others is known as
(a) effectiveness (b) efficiency (c) management (d) planning
3. “It involves leading, influencing and motivating the employees to perform the assigned task”,
highlighted one of the functions of management. Identify
(a) Staffing (b) Planning (c) Directing (d) Controlling
4. “Deciding in advance what is to be done, how it is to be done, when it is to be done”, highlights which
function of the management?
(a) Organising (b) Planning (c) Directing (d) Controlling
5. Match the functions of management with their respective examples:
Function of management Examples
1. Planning A. Conform actual results with planned results
2. Organizing B. Bridge the gap where we are and where we want to go
3. Staffing C. Establishing authority responsibility relationship
4. Directing D. Right people for the right job
5. Controlling E. Putting resources into action
Identify the correct option:
(a) 1-A, 2-E, 3-D, 4-B, 5-C (b) 1-A, 2-E, 3-C, 4-B,5-D
(c) 1-B, 2C, 3-D 4-E,5-A (d) 1-C, 2-D, 3-A, 4-E,5-B
6. Match the functions of management with their respective examples:
Indicators Functions
1. Developing a way to achieve goals effectively and efficiently A. Controlling
2. Human Resource Function B. Planning
3. Taking out the best in the employee C. Organising
4. Activities and outputs are critical to success D. Staffing
5. Examining what activities and resources are required to implement plans E. Directing
1 Nature and Significance of Management
Find the correct match:
(a) 1 (B) 2 (E) 3 (D) 4 (C) 5 (A) (b) 1 (B) 2 (D) 3 (E) 4 (C) 5 (A)
(c) 1 (B) 2 (D) 3 (E) 4 (A) 5 (C) (d) 1 (B) 2 (D) 3 (A) 4 (C) 5 (E)
7. Which of the following is a cost benefit analysis?
(a) Effectiveness (b) Efficiency (c) Both (d) None of the above
8. Mr. Anil, who was an employee in Zebra Cosmetics Limited was able to produce the goods in time
but at higher cost. Mr. Anil was
(a) effective only (b) efficient only
(c) effective but inefficient (d) neither effective nor efficient
9. “Mr. Gosain, the owner of “Stylish Garments” got a wholesale order of 600 party gowns. He completed
the production without paying extra bonus but could not deliver the gowns timely to the wholesaler
and thus the order was cancelled.
(a) Mr. Gosain is effective but inefficient (b) Mr. Gosain is efficient but not effective
(c) Mr. Gosain is neither effective nor efficient (d) Mr. Gosain is both effective as well as efficient
10. ‘It is generally seen that individuals in an organisation resist change as it often means moving from
a familiar, secure environment into a newer and more challenging one’. Which point of importance
of management has been discussed here?
(a) Management helps in achieving personal objectives
(b) Management helps in achieving group goals
(c) Management helps in the development of society
(d) Management creates dynamic organisation
11. Look at the image and highlight the feature of management depicted by the image given here.
(a) Management is goal oriented (b) Management is pervasive

(c) Management is Dynamic (d) Management is a group activity
12. “The effect of management is noticeable in an organisation where targets are met according to
plans, employees are happy and satisfied”. Which characteristic of management is highlighted in
the above statement?
(a) Group activity (b) Dynamic function
(c) Intangible force (d) Continuous process
Nature and Significance of Management 2
13. McDonald introduced Mc Aloo Tikki to survive in Indian market.’’ Which feature of management is
described here?
(a) Group activity (b) Dynamic function (c) Multidimensional (d) Continuous process
14. “Management has to adapt itself according to the changing environment”. Which characteristic of
management is highlighted in the above statement?
(a) Continuous process (b) Group activity (c) Dynamic function (d) Goal oriented
15. “An organisation is a collection of diverse individuals having different needs who work in team with
coordination in common direction.” Which feature of management has been highlighted here?
(a) Management is goal oriented (b) Management is a group activity
(c) Management is a pervasive function (d) Management is a continuous process
16. The following is not an objective of management:
(a) Earning profits (b) Growth of the organisation
(c) Providing employment (d) Policy making
17. Kotak Mahindra believes in harnessing the potentials of the individuals working in their company by
doing so, the company wants to achieve ______.
(a) Social objective (b) Personnel objective
(c) Organisational objective (d) Economic objective
18. Google and Microsoft make the provision of crèche, laundry, gym, and entertainment facilities for
their employees, which objective of management is achieved by the management?
(a) Social objective (b) Personnel objective
(c) Organisational objective (d) Economic objective
19. Earning profit is essential to cover the costs, survival and growth. Which objective of the management
has been referred here?
(a) Social objective (b) Organizational objective
(c) Personnel objective (d) Individual objective
20. Nestle manufactures its products by using environment friendly methods of production. It is referred
to ______ of the management.
(a) Individual objective (b) Organisational objective
(c) Social objective (d) Economic objective
21. Which of the following point supports the fact that ‘Management is a profession’?
(a) Service motive (b) Personalised application
(c) Principles based on experimentation (d) Based on practice and creativity
22. Which of the following is not a characteristic of a profession?
(a) Service Motive (b) Restricted Entry
(c) Based on Practice and Creativity (d) Well defined body of knowledge
23. Educational qualification is the pre-requisite to enter a profession. Which of the following feature is
revealed in the above statement?
(a) Restricted entry (b) Ethical code of conduct
(c) Professional association (d) Well defined body of knowledge
24. Management is a
(a) science (b) an art (c) both science and art (d) neither
[CBSE Sample Paper 2019-20]
25. Irfan Khan and Naseeruddin Shah, both got training from National School of Drama, New Delhi but
they perform differently. Which feature of art is associated with the above fact?
(a) Based on practice and creativity (b) Universal validity
(c) Existence of theoretical knowledge (d) Personalised application
26. A doctor has to obtain certificate from the Medical Council of India to practice his medical profession.
Which feature of the profession is revealed here?
(a) Ethical code of conduct (b) Restricted entry
(c) Service motive (d) Professional association
27. Policy formulation is the function of
(a) top-level managers (b) middle-level managers
(c) operational management (d) all of these
28. This level of management is responsible for all the activities of the business and for its impact on
society. Identify the level of management:
(a) Top Level (b) Middle Level (c) Lower Level (d) Both A and B
29. Saksham is responsible for taking decision on which machinery to be purchased to improve the
productivity of the organisation. At which level Saksham is working?
(a) Top Level (b) Middle Level (c) Lower Level (d) Supervisory Level
30. Human Resource Department of any organisation has to ensure the adequate number of employees
available throughout the organisation. At which level a human resource manager works?
(a) top-level management (b) middle-level management
(c) operational management (d) all of these
31. Which level of management is concerned with developing cooperation with other departments for
smooth functioning of organisation?
(a) Top level (b) Supervisory level (c) Middle level (d) Operational level
32. Which of the following function is performed by the middle-level management?
(a) Analysis of business environment and its implication for survival of organisation.
(b) Maintenance of quality output and minimisation of wastage.
(c) Formulation of organisational goals and strategies.
(d) Interpretation of the policies framed by the top management.

33. Arun is responsible for making annual appraisal report of line managers. At which level of management
Arun is working?
34. Top-level management does not
(a) control the activities of all the departments of the organisation.
(b) make sub-plans for the lower level.
(c) determine the objectives and policies of the organisation.
(d) establish contacts with the outside world.
35. Match the following:
Indicators Levels of Management
1. Their job is stressful, demands long hours and commitment A. Middle
to the organisation
2. They are responsible for all the activities of first line managers B. Top
3. Through their efforts, quality of output is maintained and C. Lower
wastage of materials is minimised.
(a) 1 (B) 2 (A) 3 (C) (b) 1 (A) 2 (C) 3 (B) (c) 1 (C) 2 (B) 3 (A) (d) 1 (B) 2 (C) 3 (A)
36. Coordination is
(a) a function of management (b) the essence of management
(c) an objective of management (d) none of these
37. Which concept of management requires balancing, timing and integration of activities to ensure
planned objectives are achieved with minimum of conflicts?
(a) Cooperation (b) Coordination (c) Management (d) Planning
38. It is sometimes considered as a separate function of management and it is implicit and inherent in all
functions of an organisation. Which term of the management is referred here?
(a) Effectiveness (b) Efficiency (c) Cooperation (d) Coordination
39. The sales department accuses production department for the poor sales due to late delivery of
goods, production department accuses purchase department for not delivering the raw material in
time and purchase department accuses finance department for not releasing funds on time. Which
quality of management is missing in the above situation?
(a) Planning (b) Cooperation (c) Coordination (d) Poor hierarchy
40. “Coordination unifies unrelated or diverse interests into purposeful activity.’’Identify the feature of
management.
(a) Coordination is a continuous process. (b) Coordination is the responsibility of all managers.
(c) Coordination ensures unity of action. (d) Coordination integrates group efforts.
41. A Manager has to perform five interrelated functions in the process of managing an organisation
which is a system made up of different interlinked and interdependent subsystems. Which concept
of the management is highlighted here?
(a) Organisational structure (b) Efficiency and effectiveness
(c) Hierarchy of management (d) Coordination
42. Identify the missing figure in the following diagram; it binds all functions of management.
43. “It provides the requisite amount, quality, timing and sequence of efforts which ensures that planned
objectives are achieved with a minimum of conflicts”. Identify the concept.
(a) Controlling (b) Coordination (c) Planning (d) Organising
MCQs based on Case Problem
Read the following text and answer question numbers 44-49 on the basis of the same:
"Shoolini Enterprises" is enjoying a good reputation in the market. Kavita Mendiratta, the General
Manager, has acquired her MBA degree from Oxford University and as a result of her knowledge of
management principles and excellent managerial competence, the enterprise is success is because
of the good management. The effect of management is noticeable because targets are being met
in time, employees are happy and satisfied; and there is orderliness instead of chaos.
She motivated her team so well that individual members were able to achieve personal goals
while contributing to the overall organizational objectives. She is a visionary and understands the
value of good personnel in an organization. Hence she proposed to keep budget for opening crèche
for the kids of female employees.
44. At what level Kavita Mendiratta is working?
45. Which feature of management is discussed in above case study?
(a) Management is all Pervasive (b) Management is Intangible
(c) Management is a Continuous Process (d) Management is Multidimensional
46. Which nature of management is highlighted in the case study?
(a) Management is an Art (b) Management is a Science
(c) Management is a Profession (d) Both Science and Art
47. Which objective of management Kavita focused at?
(a) Organisational Objectives (b) Personnel Objectives
(c) Social Objectives (d) Growth Objectives
48. Which element of one of the functions of management Kavita used in order to achieve organizational
objectives?
(a) Supervision (b) Motivation (c) Leadership (d) Communication
49. Identify the reason that has made management so important from the above case study.
(a) Helps in achieving personnel objectives (b) Creates dynamic organization
(c) Helps in development of society (d) All of above
B. FILL IN THE BLANKS

1. __________ is an activity which is necessary wherever there is a group of people working in an
organisation.
2. Management has been defined as a process of getting things done with the aim of achieving goals
__________ and __________.
3. __________ and __________ are two sides of the same coin.
4. The __________ of management is a series of continuous, composite, but separate functions.
5. The effect of management is noticeable in an organisation when the employees are happy and
there is __________ instead of ________.
6. The task of a manager is to give a common __________ to the individual effort in achieving the
overall goal of the organisation.
7. The aim of a manager is to reduce __________ and increase ______ through better planning,
organising, directing, staffing and controlling.
8. Management has to see that tasks are completed and goals are achieved _____ with the least
amount of resources at a minimum cost ______.
9. Management increases ________by reducing ______ to increase productivity.
10. Functions of management are performed one after another as well as _______ by all managers all
the time.
11. An organisation is a collection of diverse _____ with different _____.
12. The effect of management is ______in an organization where targets are met according to plans.
13. In order to be successful, an organisation must __________ itself and its goals according to the
needs of the environment.
14. Management is a dynamic function as it ______ itself according to the changing environment.
15. Management helps its people __________ to the changes in the environment.
16. Management is a ____________ process as different functions of management are simultaneously
performed by all the managers all the time.
17. Management is a _____ function as it adapts itself according to the changing environment.
18. An organisation has a set of basic______ which are the basic reason for its existence.
19. Management is a complex activity that has _______ main dimensions.
20. The Multidimensional characteristics of management links _____. ______ and ______.
21. Management requires team work and _________of individual efforts in common direction.
22. Management is a/an __________ force that cannot be seen but its presence can be felt.
23. Management is a ___________ function to have adapt itself to the changing environment.
24. Management fulfills three basic objectives; organisational, __________ and personnel.
25. Management tries to achieve _____________ objectives by satisfying human needs.
26. Organizational objectives carry survival, _____ and ________ as three sub-objectives of
management.
27. In order to survive, an organisation must earn enough __________ to cover __________.
28. As a part of society, every organisation whether it is business or non-business has a __________ to
fulfill.
29. Top level of management is responsible for ______ and _____ of the organization.
30. Sharman uses methods of production which do not affect the environment. He is trying to achieve
_______objective of management.
31. Provision of entertainment facility is an example of _______ objective.
32. Tata Group tries to achieve _______objectives by using environmental friendly methods of production.
33. __________ is the skillful and personal application of existing knowledge to achieve desired results.
34. __________ is a systematised body of knowledge that explains certain general truths or the operation
of general laws.
35. ______presupposes the existence of certain theoretical knowledge.
36. Management as _______ creates cause and effect relationship.
37. A saying ‘Managers are_____’ has been replaced by ‘Managers are_____’.
38. All _______ are based on well-defined body of knowledge.
39. The chain of command consisting of a series of managerial position is called the ________ of
management.
40. Planning & organizing and Staffing & Directing are the respective jobs of ____ level and ____ level
of management respectively.
41. Supervisory/operational level is also known as _______ managers.
42. Divisional heads belong to _____ level and department heads belongs to ______ level of management.
43. The policies framed by the top management are interpreted by ______level of management.

44. Coordination with various departments for smooth functioning of organization is done by ________
level of management.
45. Quality of output and safety standards are maintained by _________ level of management.
46. __________level of management passes on the instructions of management to the workers.
47. Coordination is a _________function of management.
48. Coordination act as a _______force between various departments to ensure unity of action.
49. _________ is the __________ of management, for achieving harmony among individual efforts
towards the accomplishment of group goals.
50. __________ is the force that binds all the other functions of management.
51. __________ is implicit and inherent in all functions of an organisation.
52. The process by which a manager __________ the activities of different departments is known as
__________.
53. __________ involves __________ of the different actions or efforts of the various units of an
organisation.
54. In the absence of __________ what results is chaos.
C. TRUE AND FALSE

1. Management affects employee morale but not a company’s financial performance.
2. The existence of management can be seen but it cannot be felt.
3. For management it is necessary to be efficient rather than effective.
4. Efficiency means doing the task correctly and with maximum cost.
5. Being efficient or doing work efficiently basically means finishing the given task.
6. Effectiveness refers to the relationship between inputs and outputs.
7. Effectiveness is concerned with the means of getting things done, while the goal of efficiency is to
minimize resource costs.
8. Managers who are effective at meeting organisational goals always act efficiently.
9. To be effective, an organisation must have clearly defined sets of goals and objectives.
10. Organisations that are more efficient are effective.
11. Efficiency means completing the right task correctly to achieve the predetermined goals within
given time frame.
12. Effectiveness refers to completion of the right task correctly using minimum cost.
13. Effectiveness and efficiency are the two sides of the same coin.
14. Functions of management are simultaneously performed by all managers all the time.
15. Personnel resist to adapt the changes in business environment.
16. Goals of an organisation are the basic reason for its existence.
17. Provision of crèche for the children of employees refers to the social objective of a business.
18. Social objectives are set for the welfare of employees.
19. Management is considered a multi-faceted concept.
20. Management is not a full-fledged profession.
21. Art does not involve the creative practice of existing theoretical knowledge.
22. Management is a full-fledged profession like legal, accounting and medical profession.
23. Management is a soft science.
24. The main objective of any profession is to serve the society as a whole.
25. The basic objective of any profession is to earn money.
26. Management has the characteristics of a full-fledged profession.
27. Management as an art and a science are not mutually exclusive, but complement each other.
28. Anyone can be called a manager irrespective of the educational qualifications possessed.
29. It is not mandatory anywhere in the world to possess a specialized degree to become a manager.
30. There is no compulsion for managers to be the members of any management association nor does
it have any statutory backing.
31. Profession refers to the skills to be put into action for the achievement of a given task.
32. Management is not an exact science because it fulfils principles of science fully in some situations
and partly in others.
33. Old saying ‘Managers are born’ has been replaced by ‘Managers are made’.
34. Science is a well-defined body of knowledge which is learned intellectually with the motive to serve
others.
35. A professional manager can possess professional degree or vast experience in a specialised field of
business operations.
36. Every manager must be the member of professional body/association.
37. AIMA (All India Management Association) has a statutory backing.
38. Creation of job positions from the top to bottom is known as hierarchy of the management.
39. The top level of management is not responsible for all its activities of business and its impact on
society.
40. First line managers are also known as top level managers.
41. Supervisors and foremen may both be considered first-line managers.
42. First-line supervisors are responsible for directing the day-to-day activities of operative employees.
43. Middle level managers set goals and objectives and make decisions about the direction of the
organisation that affect everyone in the organisation.
44. Middle level management is responsible for setting and achieving objectives for the organisation.
45. Directing takes place at every level of management.

46. Supervisory level managers are also known as divisional heads.
47. In order to be considered a manager, an individual must coordinate the work of others.
48. Co-operation in absence of co-ordination leads to waste of efforts.
49. Co-ordination without Co-operation may lead to dissatisfaction among employees.
50. Coordination without cooperation has not roots and cooperation without coordination bears no
fruits.
51. Co-ordination is a separate function of management.
52. Coordination is called the essence of management.
53. Integration, balancing and timing are the three elements of coordination.
54. Coordination is the root of cooperation.
55. Coordination is the responsibility of the top-level managers.
56. Coordination is sometimes considered a separate function of management.
57. Cooperation is the root of coordination.
D. ONE WORD ANSWER QUESTIONS

1. Name that intangible force which creates productive relationships among resources of an
organisation.
2. Name the process of designing and maintaining an environment in which individuals working together
in groups, efficiently accomplish selected aims.
3. “Successful organizations do not achieve their goals by chance but by following a deliberate process”.
Identify the process highlighted here. (Sample Paper 2018–19)
4. Name the process of working with and through others to effectively achieve organisational objectives
by efficiently using its limited resources in the changing environment.
5. Planning, Organising, Staffing, Directing and Controlling is the sequence of functions in a process.
Name it.
6. Name the intangible force which creates productive relationships among resources of an organisation.
7. Name the function of management which is undertaken in the development, promotion and
performance appraisal of subordinates.
8. Name the function of management which is undertaken to measure the performance and follow-up
actions.
9. Production manager tries to produce goods at minimum costs. Name the concept which is being
focused by management.
10. “The principles of management can be applied to all types of activities.” Which characteristic of
management is highlighted by this statement?
11. ‘‘In an organisation, employees are happy and satisfied, there is no chaos and the effects of
management are noticeable.’’ Which characteristic of management is highlighted by this statement?
12. ‘Management consists of an on-going series of functions.’ Which characteristic of management is
highlighted by this statement?
13. Rahul is of the opinion that management is needed in all types of organisations whether working for
earning profits or for any social purpose. Which characteristic of management he holds in his view?
14. “McDonald’s had to make changes in its menu when it started its business in India.” Which
characteristic of management is highlighted in this statement?
15. “The functions of management are simultaneously performed by all mangers all the time.” Which
characteristic of management is highlighted by this statement?
16. “A religious place is also needed to be managed like business and non-business organisations.” Which
characteristic of management is referred here.
17. An organisation is a collection of individuals working at different levels in the organisation.” Which
characteristic of management is referred to here?
18. “Management activities are performed in all types of organisations in all departments and at all
levels.” Which characteristic of management is highlighted here?
19. In order to be successful, an organisation must change its goals according to the needs of the
environment. Which characteristic of management is highlighted in the statement?
20. What distinguishes a successful manager from a less successful manager is the ability to put the
principles and methods of management into practice. Which feature of management is being
highlighted here?
21. In an organisation targets are met according to plans, employees are happy and satisfied and there
is orderliness instead of chaos. Which characteristic of management is being highlighted here?
22. Identify the basic characteristic of management involved in the statement, ‘The activities involved
in managing an organisation are common to all organisations, whether economic, social or political’.
(Delhi Compartment 2014)
23. To meet the objectives of the firm, the management of JMD Infrastructures Ltd. offered employment
to a physically challenged person. Identify the managerial objective it is trying to achieve.
24. “With the help of self-motivation and leadership techniques, management helps individuals develop
co-operation, commitment, team spirit, etc.” The above statement refers to which type of objective
of management?
25. Personal growth and development of employees refers to which type of objective?
26. An organisation needs to enhance its profit year after year. Which purpose of organisational objective
is achieved here?
27. ‘A company uses environment friendly methods of production.’ Which objective is the company
trying to achieve?
28. ‘‘An organisation needs to earn sufficient revenue to cover the cost.” Which feature of the
organisational objective is being referred to here.

29. “Use of plastic polythene is abandoned by a company to package its product.” Which objective is
being achieved in this statement?
30. Identify the nature of management when it is practiced as a personal application of existing knowledge
to achieve desired results.
31. Identify the nature of management when it is said to be a systematised body of knowledge that
explains certain general truths.
32. “The truth, managers are born has been replaced with managers are made.” What nature of
management is highlighted here?
33. ‘A manager applies scientific methods and body of knowledge to a given situation, an issue or a
problem in his own unique manner.’ Which aspect of nature of management is being discussed here?
34. Give one designation each of top and middle-level management?
35. Name the level of management which is engaged in overseeing the activities of the workers
36. At which level of management does directing take place?
37. Which level of management has the power to decide about the opening of new branch of a business?
38. Identify the level of management at which the managers are responsible for implementing and
controlling the plans and strategies of the organisation.
39. Name the level of management which is engaged in taking key decisions.
40. At which level of management, the managers are responsible for the welfare and survival of the
organisation?
41. Mohan is working as Manager–Operations. In which managerial level is he working?
42. Which level interprets and explains the policy decisions?
43. Which level of management spends more time on planning as compared to other levels?
44. Name the level of management which is engaged in selection of employees.
45. Name the level of management which is engaged in liaison with outside world.
46. Which level of managers are responsible for coordination? (Outside Delhi Compartment 2015)
47. Mr. Rounak, a director of Sunlight Bulbs Limited, gets involved in activities like procurement of raw
material, production and dispatch of goods, employees discipline, etc. Name the level of management
Mr Rounak belongs to.
48. Ritu is the manager of the northern division of a large corporate house. At what level does she work
in the organization? (NCERT)
49. Which level of manages are responsible for all the activities of first line managers?
50. Which level is known as operative management in an organisation?
51. Which function of management can be said to be as central as the thread in a garland?
52. Which aspect of management helps bring order to endeavours?
53. Name the voluntary action on the part of individuals working together in an enterprise for achieving
common objective.

54. Name the concept which binds the employees from top level to the bottom level of the organisation.
55. Name the process which provides the requisite amount, quality, timing and sequence of efforts and
ensures that planned objectives are achieved with a minimum of conflict.
(CBSE Sample Paper 2017–18)
56. “The production department is not producing the goods as referred by the marketing department
of an organisation.” What is lacking in the organisation?
57. The success of ‘Dabbawallas’ (who deliver tiffin boxes to offices) in Mumbai is an example of which
aspect of management?
58. In order to achieve target production of 12,000 units per month, the production manager of a
company has to operate on double shifts due to power failure. This leads to achievement of the
target of purifiers at a higher production cost. In your opinion, what is lacking in management?
59. Ashutosh Goenka was working in ‘Axe Limited’, a company manufacturing air purifie. He found that
the profits had started declining from last six months. Profit has an implication for the survival of the
firm, so he analysed the business environment to find out the reasons for this decline. Identify the
level of management at which Ashutosh Goenka was working. (CBSE Delhi 2017, Modified)
60. A company manufacturing chemicals emits air pollutants, which affect the health of the employees
adversely. For this purpose, the company decided to provide medical facilities for regular health
check-ups which benefitted the employees a lot. Identify the objectives being attained by the
company.
61. Indian Railways has launched a new broad-gauge solar power train which is going to be a path
breaking leap towards making trains greener and more environment friendly. Name the objective
of management achieved by Indian Railways in the above case. (NCERT, Modified)
62. Rishitosh Mukerjee has recently joined AMV Limited, a company manufacturing refrigerator. He
found that his department was under-staffed and other departments were not cooperating with his
department for smooth functioning of the organisation. Therefore, he ensured that his department
has the required number of employees and its cooperation with other departments is improved.
Identify the level at which Rishitosh Mukerjee was working. (Outside Delhi 2017, Modified)
63. The marketing manager of ‘Informatics Limited’ always keeps a check on the changes happening in
the surroundings and instructs the research and development department to improve the products
accordingly. This habit of the marketing manager helps the company to keep an edge over the
competitors. Which feature of management is depicted in the above case?
64. The purchase, production and sales managers at Sharda Ltd. a firm manufacturing readymade
garments are generally at a conflict, as they have their own objectives. Usually each thinks that only
they are qualified to evaluate, judge and decide on any matter, according to their professional
criteria. Name the concept, which will be required by the CEO Mr. Raman, to reconcile the differences
in approach, interest or opinion in the organisation. (CBSE Sample Paper 2019-20)

E. CORRECT THE INCORRECT STATEMENT
1. Activities involved in managing the enterprises are different to different to all organisations.
2. Management has to reconcile personal goals with the social objectives for harmony in the
organisation.
3. The main motive of a profession is to earn sufficient money to society.
4. Cooperation in the absence of coordination may lead to dissatisfaction among employees.
5. Through motivation and leadership, the management helps individuals to develop team spirit,
cooperation and commitment to group success, thus achieving social objectives.
6. It is through process of controlling that a manager ensures the orderly arrangement of individuals
and group efforts to ensure unity of action in the realization of common objectives.
7. Management provides good quality products and services, creates employment opportunities and
adopts new technology for the greater good of the people. In this way it helps in achieving personnel
objectives.
8. Every member of the group has a different purpose for joining the organisation but as a member of
the organisation, they work towards fulfilling the common organizational goals.’ This statement
says that management is a goal oriented process.
9. Effectiveness is cost-benefit analysis; and efficiency is input-output relationship.
10. Poor management is due to inefficiency.
11. Management is multidimensional and it deals with management of work, goals and people.
12. Management fulfills personnel objectives through satisfying financial needs such as competitive
salaries and perks, social needs like personal growth and higher-level needs such as peer recognition.
13. The managers apply the scientific methods and body of knowledge to a given situation in a prescribed
manner.
14. Scientific principles are first tested through repeated experimentation under controlled conditions
and then observed and developed.
15. The process of management is a series of exclusive functions, performed by all the managers back to
back.
16. All management practices are based on same set of principles. What distinguishes a successful
manager from a less successful one is the ability to learn these principles.
17. Staffing function decides who will do a particular task, where it will be done, and when it will be
done.
18. Plant Superintendent and Superintendent are middle level managers

F. QUESTIONS BASED ON REASON AND ASSERTION
1. Assertion (A): The effect of management is noticeable in an organisation where targets are met
according to plans, employees are happy and satisfied and there is orderliness instead of chaos.
Reason (R): Every member of the organisation has a different purpose for joining the organisation
and each member works towards his personal goal.
Find the correct option:
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true
2. Assertion (A): Manager is involved in the activities of the organisation, studies critical situations and
formulates his own theories for use in a given situation.
Reason (R): The principles of management have evolved over a period of time based on repeated
experimentation and observation in different types of organisations.
3. Assertion (A): In any organisation coordination is required so that production and sales department
can work hand in hand.
Reason (R): Coordination integrates group efforts.
4. Assertion (A): The activities of each department need to be linked through coordination.
Reason (R): Specialists usually think that they only are qualified to evaluate, judge and decide
according to their professional criteria.

5. Assertion (A): The outcomes of scientific experiments are not capable of being accurately predicted
or replicated.
Reason (R): Management deals with human beings and human behaviour.
6. Assertion (A): Management entails the flow of input material and technology for transforming this
input into the desired output for consumption.
Reason (R): Management as a multidimensional activity requires a production process and is not
interlinked with management of work and people.
7. Assertion (A): There is need of coordination because of functional differentiations.
Reason (R): All individuals differ in their habits of work, background, approaches to situations and
relationships and they have their individual goals.
8. Assertion (A): Coordination is a voluntary binding force between individuals and departments.
Reason (R): Coordination gives a direction to the willing spirit.
9. Assertion (A): Coordination ensures unity of action.
Reason (R): It gives a common focus to the effort of people with diverse interest.
10. Assertion (A): Management does not meet the exact criteria of a profession. However, it does have
some of the features of profession.
Reason (R): The entry in the management profession is restricted through acquiring a degree of
MBA from any institute but there is no professional association to regulate the managers.
11. Assertion (A): Management as an art and science are not mutually exclusive, but complement each
other.
Reason (R): Managers work better if their practices are based on principles of management.
12. Assertion (A): Through management the personnel objectives can be achieved.
Reason (R): Management helps to provide good quality products, create employment opportunities
and adapt new technologies.
13. Assertion (A): Management is multidimensional.
Reason (R): The effect of management is noticeable in an organisation when targets are met
according to plans, employees are happy and satisfied, and there is orderliness instead of chaos.

14. Assertion (A): The job of the lower level is complex and stressful, demanding long hours and
commitment to the organisation.
Reason (R): Lower level managers interact with the actual work force, pass on the instructions,
supervise their work, maintains quality of products, maintains safety standards and so on.
15. Assertion (A): Manager is involved in the activities of the organisation. Studies critical situations and
formulates his own theories for use in a given situation.
Reason (R): The principles of management have evolved over a period of time based on repeated
experimentation and observation in different types of organisations.


ANSWER KEY
A. MULTIPLE CHOICE QUESTIONS (MCQs)
1. (c) Cooperating Explanation: Use of knowledge gained differs
2. (c) management from person to person. Practice and creativity,
3. (c) Directing is not the appropriate answer as training, not
4. (b) Planning the practice has been indicated in the situation
and creativity depends upon natural talent.
5. (c) 1-B, 2C, 3-D 4-E,5-A
26. (d) Professional association
6. (c) 1(B) 2(D) 3(E) 4(A) 5 (C)
27. (a) top-level managers
7. (b) Efficiency
8. (c) effective but inefficient 28. (a) Top Level
9. (b) Mr. Gosain is efficient but not effective 29. (b) Middle Level
Explanation: As he was able to get the 30. (b) middle-level management
production without paying extra bonus, thus 31. (c) Middle level
not increasing the cost, he is efficient but he 32. (d) Interpretation of the policies framed by
could not deliver goods on time; hence the the top management.
order was cancelled so he is ineffective. 33. (b) Middle Level
10. (d) Management creates dynamic 34. (b) make sub-plans for the lower level.
organisation.
35. (a) 1(B) 2(A) 3(C)
11. (d) Management is a group activity
36. (b) the essence of management
12. (c) Intangible force
37. (b) Coordination
13. (b) Dynamic function
38. (d) Coordination
14. (c) Dynamic function
39. (c) Coordination
15. (b) Management is a group activity
40. (d) Coordination integrates group efforts.
16. (d) Policy making
17. (b) Personnel objective 41. (d) Coordination
18. (b) Personnel objective 42. Coordination
19. (b) Organizational objective 43. (b) Coordination
20. (c) Social objective 44. (a) Top Level
21. (a) Service motive 45. (b) Management is Intangible
22. (c) Based on Practice and Creativity 46. (c) Management is a Profession
23. (a) Restricted entry 47. (b) Personnel Objectives
24. (c) both science and art 48. (b) Motivation
25. (d) Personalised application 49. (a) Helps in achieving personnel objectives

1. Management 28. social obligation
2. effectively/efficiently 29. survival/welfare
3. Effectiveness/efficiency 30. social
4. process 31. personnel
5. orderliness/chaos 32. social
6. direction 33. Art
7. costs/productivity 34. Science
8. effectively/ efficiently 35. Art
9. efficiency/costs 36. science
10. simultaneously 37. born/made
11. Individuals/needs 38. professions
12. noticeable 39. hierarchy
13. change 40. top/middle
14. adapts 41. first line
15. adapt 42. top/middle
16. continuous 43. middle
17. dynamic 44. middle
18. goals 45. lower
19. three 46. Supervisory / operative
20. work, people, operations. 47. deliberate
21. coordination 48. binding
22. Intangible 49. Coordination / essence
23. dynamic 50. Coordination
24. Social 51. Coordination
25. personnel 52. synchronises/coordination
26. Profit/growth 53. Coordination/synchronization
27. revenues/costs 54. coordination
C. TRUE AND FALSE

1. F 2. F 3. F 4. F 5. F 6. F 7. T 8. F
9. F 10. F 11. F 12. F 13. T 14. T 15. T 16. T
17. F 18. F 19. T 20. T 21. F 22. F 23. T 24. T
25. F 26. F 27. T 28. T 29. T 30. T 31. F 32. T

33. T 34. F 35. T 36. F 37. F 38. T 39. F 40. F
41. T 42. T 43. F 44. F 45. T 46. F 47. T 48. T
49. T 50. T 51. F 52. T 53. T 54. F 55. F 56. T
57. T

1. Management. 30. Management is an art.
2. Management. 31. Management is a science.
3. Management. 32. Management is a profession.
4. Management 33. Management as an art
5. Management 34. Top Level-CEO, Middle Level-Divisional Manager
6. Management. 35. Supervisory/Lower level
7. Staffing 36. Every level of management.
8. Controlling 37. Top level
9. Efficiency 38. Middle-Level Management.
10. Management is all pervasive. 39. Top level
11. Management is intangible. 40. Top-Level Management.
12. Management is a continuous process. 41. Middle level
13. Management is universal/all pervasive. 42. Middle level
14. Management is dynamic. 43. Top level
15. Management is a continuous process. 44. Middle level
16. Management is all pervasive. 45. Top level
17. Management is a group activity. 46. All Levels
18. Management is all pervasive 47. Top level of management.
19. Management is a dynamic function. 48. Middle
20. Management is dynamic. 49. Middle level.
21. Management is an intangible force. 50. Lower level/Supervisory level
22. Management is all pervasive. 51. Coordination
23. Social Objective. 52. Coordination
24. Personnel Objective. 53. Cooperation.
25. Personnel objectives. 54. Coordination.
26. Growth. 55. Coordination
27. Social 56. Coordination.
28. Survival. 57. Coordination.
29. Social Objective. 58. Efficiency
59. Top Level 62. Middle Level
60. Personnel objectives. 63. Management is dynamic.
61. Social Objective 64. Coordination.

1. Activities involved in managing the enterprises 9. Efficiency is cost-benefit analysis or in other
are common to all organisations. words input-output relationship.
2. Management has to reconcile personal goals 10. Poor management is due to both
with the organisational objectives for ineffectiveness and inefficiency.
harmony in the organisation 11. Management is multidimensional and it deals
with management of work, process and
3. The main motive of a profession is to render
people.
services to the society.
12. Management fulfills personal objectives
4. Cooperation in the absence of coordination
through satisfying financial needs such as
may lead to wasted effort.
competitive salaries and perks, social needs
5. Through motivation and leadership, the like peer recognition and higher-level needs
management helps individuals to develop such as personal growth.
team spirit, cooperation and commitment to 13. The managers apply the scientific methods and
group success, thus achieving personnel body of knowledge to a given situation in their
objectives. own unique manner.
6. It is through process of coordination that a 14. Scientific principles are first developed
manager ensures the orderly arrangement of through observation and then tested
individuals and group efforts to ensure unity through repeated experimentation under
of action in the realization of common controlled conditions.
objectives. 15. The process of management is a series of
7. Management provides good quality products composite functions, performed by all the
and services, creates employment managers simultaneously.
opportunities and adopts new technology for 16. All management practices are based on same
the greater good of the people. In this way it set of principles. What distinguishes a
helps in development of society. successful manager from a less successful one
is the ability to apply these principles.
8. ‘Every member of the group has a different
17. Organising function decides who will do a
purpose for joining the organisation but as
particular task, where it will be done, and
members of the organization, they work
when it will be done.
towards fulfilling the common organizational
18. Plant Superintendent is a middle level manager
goals.’ This statement says that management
but Superintendent is a lower level manager.
is a group activity.

1. (c) A is true but R is false behaviour can’t be predicted, the outcomes

Explanation: A is correct and the reason of experiments done on these humans
behind is that Management is an intangible definitely cannot be accurately predicted.
force. R is not a correct statement as the 6. (c) A is true but R is false
members of the organisation work towards Explanation: The assertion is true but second
fulfilling their common organisational goals. statement is not true. Management as a
2. (b) Both A and R are true but R is not the multidimensional activity requires a production
correct explanation of A process and is interlinked with management
Explanation: Both the statements i.e. of work and people.
Assertion and Reason are correct but R is not 7. (b) Both A and R are true but R is not the
the correct explanation of A. The reason correct explanation of A
behind this assertion is that as management Explanation: The correct explanation to A is
in an art so a manager applies his acquired that in an organisation there are different
knowledge in a personalised and skillful manner. departments based on the functions for
3. (b) Both A and R are true but R is not the example, department of finance, marketing,
correct explanation of A human resource department etc. All these
Explanation: Both the statements i.e. departments are performing their activities
Assertion and Reason are correct but R is not in isolation with their own objectives, hence
the correct explanation of A. The reason coordination is required.
behind this assertion is that Coordination 8. (d) A is false but R is true
ensures unity of action. It acts as a binding Explanation: Coordination is a deliberate
force between departments. binding force between individuals and
4. (b) Both A and R are true but R is not the departments.
correct explanation of A 9. (b) Both A and R are true but R is not the
Explanation: Both the statements i.e. correct explanation of A
Assertion and Reason are correct but R is not Explanation: The correct explanation to A is
the correct explanation of A. The reason that coordination acts as a binding force
behind this assertion is the organisations have between departments in the realization of a
separate departments based on functions and common purpose.
all these departments have their own objectives. 10. (c) A is true but R is false
5. (a) Both A and R are true and R is the correct Explanation: Anyone can be called as manager
explanation of A irrespective of the educational qualifications
Explanation: Both the statements i.e. possessed. There are several associations for
Assertion and Reason are correct and R is the practicing managers like the All India
correct explanation of A. As management is Management Association however these
dealing with human beings and the human associations can not enforce code of conduct.
11. (a) Both A and R are true and R is the correct translates the work in terms of goals and
explanation of A convert inputs into desired outputs through
12. (b) Both A and R are true but R is not the people.
correct explanation of A 14. (d) A is false but R is true
Explanation: The correct explanation to A is Explanation: The job of the top level is complex
that a manager motivates and leads his team and stressful, demanding long hours and
in such a way that individual members are able commitment to the organisation.
to achieve personal goals while contributing 15. (b) Both A and R are true but R is not the
to the overall organisational objective. correct explanation of A
13. (b) Both A and R are true but R is not the Explanation: The correct explanation to A is
correct explanation of A that management in an art so a manager
Explanation: The correct explanation to A is applies his acquired knowledge in a
that Management has three dimensions. It personalised ad skillful manner.


1. Principles of management are not
(a) universal (b) flexible (c) absolute (d) behavioural
2. Principles of management cannot be
(a) defined (b) applied anywhere
(c) tested in Laboratories (d) part of Business
3. How are principles of management formed?
(a) By experiments in a laboratory (b) By experiences of managers
(c) By experiences of customers (d) By propagation of social scientists
4. ‘Hindustan Lever Limited’ decided to divest in non-core business of chemicals and seeds.’ Which
point of importance of principles of management is highlighted here?
(a) Fulfilling social responsibility (b) Optimum utilization of resources
(c) Meeting changing environment requirements (d) Scientific decisions
5. Principles enable a better understanding of the relationship between human and material resources
in accomplishing organisational purposes. Which of the following characteristic of principles of
management is reflected in the above statement?
(a) Principles are flexible in nature (b) Principles are contingent
(c) Principles are behaviourial (d) General guidelines
6. The principles of science are ______ whereas the principles of management are _______ .
(a) flexible/rigid (b) rigid/flexible
(c) based on research/based on development (d) permanent/temporary
7. The principles of management can be changed according to the prevailing situation in organisation.
This shows that management principles are
(a) flexible (b) universal (c) behavioral (d) scientific
8. ’The principles of management are dependent on the prevailing situation at particular point of
time.’ Identify the nature of principles of management
(a) Contingent (b) Flexible
(c) Mainly behavioral (d) Cause and effect relationship
Principles of Management 26
9. Which of the following option is false? Principles of management are
(a) Applicable only in large firms (b) Formed by practice and experience of managers
(c) Flexible (d) Contingent
(CBSE Sample Paper 2019-20)
10. _____ are guidelines to take decisions or actions while practicing ______.
(a) Values, principles (b) Values, techniques
(c) Principles, techniques (d) Principles, value
11. Match the concepts with their interpretation:
Techniques Statements
1. Principles of management A. Flexible
2. Principles of science B. Moral connotation
3. Values C. A way to carry a particular task
4. Techniques D. Rigid
(a) 1-A, 2-D, 3-C, 4-B (b) 1-A, 2-D, 3-B, 4-C (c) 1-B, 2-D, 3-A, 4-C (d) 1-B, 2-D, 3-B, 4-A
12. Which of the following is not a principle of management given by Taylor?
(a) Science, not rule of thumb (b) Functional foremanship
(c) Maximum, not restricted output (d) Harmony, not discord
13. Taylor focused his attention on
(a) administrative level (b) Top level (c) Middle level (d) Shop level
14. Who is considered as father of scientific Management?
(a) F.W Taylor (b) Henry Fayol (c) Gilberth (d) Koontz
15. ‘Keshav keeps machines, materials, tools, etc., ready for operations by concerned workers’. Whose
work is described by this sentence under functional foremanship?
(a) Instruction Card Clerk (b) Repair Boss
(c) Gang Boss (d) Route Clerk
16. Taylor devised the concept of assembly line by using _____________
(a) Fatigue Study (b) Motion Study (c) Time Study (d) Method Study
17. ‘If this principle is violated, authority is undermined, discipline in jeopardy, order disturbed and
stability threatened.’ Identify the principle of management
(a) Discipline (b) Unity of Direction (c) Order (d) Unity of Command
18. ‘The Differential Piece Wage System technique is based on the principle of ________.
(a) Equity (b) Remuneration
(c) Subordination of individual interest to general interest (d) Division of work
19. Which contemporary techniques of management focuses on reduction of seven wastes of production?
(a) Six Sigma (b) Operation Research (c) Lean Manufacturing (d) Reengineering
27 Principles of Management
20. Which scientific technique/ work study establishes interchangeability of manufactured parts or
products?
(a) Motion Study (b) Method Study
(c) Standardisation and Simplification (d) Functional Foremanship
21. The technique in which task of supervision is divided into several specialized functions with the help
of eight specialists is
(a) Standardization (b) differential piece wage system
(c) simplification (d) functional Foremanship
22. Same charger of mobiles can be used for different models of a particular brand. This is an example
of which of the following techniques of scientific management?
(a) Standardization (b) Simplification
(c) Method Study (d) Functional Foremanship
23. One of the techniques of scientific management states that efficient workers should be paid higher
wages than inefficient workers. Identify the technique from the following options:
(a) Time study (b) Simplification of work
(c) Differential piece wage system (d) Mental revolution
24. Which of the following option best describes the meaning of ‘mental revolution’?
(a) Change of attitude (b) Change of values and principles
(c) Change of pay scales (d) Change of working atmosphere
25. Match techniques of scientific management with the suitable statements:
1. Standardization A. One best way of doing of job
2. Method Study B. To establish interchangeability of manufactured parts and products.
3. Fatigue Study C. Separation of planning and execution
4. Functional Foremanship D. To determine the amount and frequency of rest intervals
(a) 1-B, 2-D, 3-C, 4-A (b) 1-B, 2-A, 3-D, 4-C (c) 1-B, 2-D, 3-A, 4-C (d) 1-B, 2-A, 3-D, 4-C
26. Match the column I with column II
Indicators Scientific Principle
1. Extension of the principle of ‘Harmony not Discord A. Science Not rule of thumb
2. Management should share gains of the company B. Development of each and every person
with workers to his or her greatest efficiency and
prosperity
3. Each person should be scientifically selected C. Harmony Not Discord
4. The more sophisticated the processes, greater D. Cooperation not individualism
would be the savings
(a) 1(B) 2(C) 3(D) 4(A) (b) 1(D) 2(C) 3(B) 4(A)
(c) 1(C) 2(D) 3(B) 4(A) (d) 1(D) 2(C) 3(A) 4(B)
27. Which technique of scientific management proposed by F.W. Taylor violates the principle of ‘Unity of
Command’?
(a) Differential Piece Wage System (b) Functional Foremanship
(c) Work Study (d) Standardisation and Simplification
28. Which scientific principle of management encourages employees to render their suggestions while
taking important decisions?
(a) Harmony, not Discord (b) Science, not Rule of Thumb
(c) Cooperation not individualism (d) Maximum, not Restricted Output
29. Management should find ‘One best way’ to perform a task. Which technique of scientific management
is defined in this sentence?
(a) Time Study (b) Motion Study (c) Fatigue Study (d) Method Study
30. Which foreman ensures proper working condition of machineries ready for operation by workers?
(a) Repair Boss (b) Gang Boss (c) Speed boss (d) Inspector
31. Which study of Taylor aims at eliminating unnecessary movements to ensure timely completion of
work.
(a) Method study (b) Motion study (c) Time study (d) Fatigue study
32. Which scientific principle of management advocates complete openness between workers and
management?
(a) Development of each and every individual to his or her greatest efficiency and prosperity
(b) Harmony not Discord
(c) Cooperation not individualism (d) Science not rule of thumb
33. Match functions with the nature of specialists:
Functions done Name of Boss
1. Keep Machines and tools ready A. Speed Boss
2. Keep check on quality of work B. Inspector
3. Timely and accurate completion of work C. Repair Boss
4. Ensure proper working condition of machines D. Gang Boss
(a) 1(D) 2(B) 3(A) 4(C) (b) 1(C) 2(B) 3(A) 4(D) (c) 1(B) 2(C) 3(A) 4(D) (d) 1(D) 2(B) 3(C) 4(A)
34. Paridhi has been made in charge of the Chemistry Laboratory. She conducted a scientific study to
arrange the material to be kept in the laboratory. Identify the work study mentioned in above case.
(a) Method Study (b) Motion Study (c) Time Study (d) Fatigue Study.
35. Taylor believed that there was only one best method to maximise efficiency. Which principle of
scientific management has highlighted the above statement?
(a) Harmony, not discord (b) Science, not rule of thumb
(c) Cooperation, not individualism (d) Development of each and every person
36. A company made a research the wastages and eliminated superfluous varieties during the process
of production. Which technique of scientific management is applied here?
(a) Standardization (b) Simplification
(c) Method Study (d) Functional Foremanship
37. Henry Fayol was a
(a) social scientist (b) mining engineer
(c) accountant (d) production engineer
38. Administrative principles were given by
(a) F. W. Taylor (b) Henry Fayol (c) Abraham Maslow (d) Henry Fayol
39. Panchayats in our country have been given more powers to decide and spend funds granted to them
by the government. The principle of management highlighted in the above statement is
(a) Equity (b) Centralisation and decentralisation
(c) Authority and Responsibility (d) Espirit De corps
40. Which of the following statement best describes the principle of ‘Division of Work’?
(a) Work should be divided into small tasks (b) Labour should be divided
(c) Resources should be divided among jobs (d) It leads to specialisation
41. The principle which emphasises kindliness and justice in the behaviour of managers towards workers
is
(a) equity (b) Order (c) Espirit de Corps (d) Initiative
42. CEOs of Uber and Zomato decided to look after the financial needs of the employees during the ill
effects of COVID 19 as they believed they are the people who helped them create their business.
The decision of retention of employees relates to which of the following principle of management?
(a) Esprit de corps (b) Stability of tenure of personnel
(c) Discipline (d) Remuneration of employees
43. The employees should be given reasonable time to show results. Any insecurity of job will result in
high recruitment, selection and training cost. This principle relates to which of the following principles?
(a) Esprit de Corps (b) Remuneration
(c) Stability of personnel (d) Authority and responsibility
44. The principle which states that there should be good supervisors at all levels for smooth and systematic
working of an organisation is:
(a) equity (b) initiative (c) discipline (d) order
45. Ms. Surbhi, the manager of ATS Ltd. found Vasu, an employee usually coming late to the office.
Being new, she could not take strict action against him. Consecutively, other employees also started
coming late which led to the fall in the overall discipline. Which principle of management Surbhi
could not apply in the organization.
(a) Subordination of individual interest to general interest (b) Remuneration
(c) Discipline (d) Equity
46. Mr. Gurarpan, the General Manager of Pinewood Industries, is very enthusiastic about his work. He
makes the plans for all the departments on his own and instructs the department heads to follow
those plans. Which principle of management is violated by Mr. Gurarpan?
(a) Espirit De corps (b) Unity of Direction
(c) Initiative (d) Unity of Command
47. Gang Plank is related with which principle of management?
(a) Unity of Direction (b) Unity of Command (c) Scalar Chain (d) Order
48. The concept of Gang Plank is applicable when
(a) Two superiors at different levels take decision in case of urgency
(b) Two superiors at same levels take decision in case of urgency
(c) Two subordinates at any level take decisions in case of urgency
(d) One superior and subordinate take decisions in case of urgency
49. ‘An employee contacts the CEO directly to complaint about the problems employees are facing at
the work station’. Which principle of management is violated here?
(a) Unity of command (b) Unity of direction (c) Scalar chain (d) Discipline
50. “One head One plan” is concerned with the following principle of Fayol
(a) Unity of command (b) Unity of Direction (c) Fair remuneration (d) Division of work
51. Which of the principle of Fayol’s is in the contrast to scientific technique, Functional foremanship?
(a) Unity of direction (b) Unity of command
(c) Discipline (d) Subordination of individual interest to general interest
52. Judicious application of penalties by the management is principle of
(a) Initiative (b) Discipline
(c) Remuneration of workers (d) Tenure of personnel
53. Riyadh, a manager in ‘King Cobra Limited’, has not set the parameters to assess the performance of
work and accuses his subordinates for under performance. This led to dissatisfaction among the
workers. Which principle of management has been overlooked by Riyadh?
(a) Unity of command (b) Discipline
(c) Authority and responsibility (d) Equity
54. Saksham was appointed as Northern Regional Manager by Bedi Pharmaceuticals and Annidhya was
appointed as Western Regional Manager. Both have similar responsibilities but Saksham enjoys
more perks and salaries that Annidhya.Identify the principle violated.
(a) Principle of Espirit De Corps (b) Principle of Equity
(c) Principle of Remuneration
(d) Principle of subordination of individual interest to general interest
55. The production manager of Jimmy Davis, a jeans manufacturing company, sets the target to
manufacture 1,000 jeans per month to be completed by 10 workers. One of the worker fell sick and
the work was divided by the remaining workers among themselves. Which principle of management
has been set as an example by the employees?
(a) Esprit de corps (b) Unity of direction (c) Initiative (d) order
56. Violation of principle of ‘Esprit de Corps’ leads to
(a) minimize labour turnover (b) minimize sales turnover
(c) loss of coordination (d) disorder
57. Which principle of management emphasizes on study and analysis of methods rather than estimation?
(a) Method study (b) Science, not rule of thumb
(c) Standardization of work (d) Maximum, not restricted output
58. A manager should replace ‘I’ with ‘We’ in all his conversations with workers. This statement relates
to which of the following principle of management?
(a) Initiative (b) Esprit De Corps
(c) Equity (d) Subordination of individual interest to general interest
59. Which of the following statement is not true about Taylor and Fayol?
(a) Taylor worked at shop floor area whereas Fayol worked top level of management
(b) Taylor’s contribution was applicable to specialized situations whereas Fayol’s contribution was
universally applicable.
(c) Taylor’s contribution was based on personal experiences whereas Fayol’s contribution was
based on observations and experimentations.
(d) Taylor’s contribution was towards increasing productivity whereas Fayol’s contribution was on
improving overall administration
60. Which technique of scientific management is the extension of Fayol’s principle of division of work?
(a) Mental revolution (b) Simplification of work
(c) Functional foremanship (d) Standardization of work
61. Which of the following statement correctly describe the meaning of principle of order?
1. Command by a superior to his subordinates
2. Materials, tools and apparatus should be kept at their respective place after use
3. Employees should be available at their respective workstations
Correct answer would be:
(a) Only 1 (b) 2 & 3 (c) 1 & 3 (d) 1,2 & 3
62. Match the statements with their respective principles:
1. Initiative A. To ensure fairness to all employees through kindness and justice
2. Remuneration B. To implement good suggestion system
3. Equity C. Clear and fair agreements
4. Discipline D. Fair wages for reasonable standard of living
(a) 1-B, 2-D, 3-C, 4-A (b) 1-B, 2-A, 3-D, 4-C (c) 1-B, 2-D, 3-A, 4-C (d) 1-B, 2-A, 3-D, 4-C
MCQs based on Case Problem
Read the following text and answer question numbers 1-4 on the basis of the same:
Kashish Kapoor, a young entrepreneur has set up a private limited company to manufacture different
kinds of eco-friendly packaging materials. He has done his MBA from Japan and served in a Japanese
company for three years. He proposed to adapt to logical approach to his business rather than hit
and trial method as he knows that this can result in tremendous saving of human energy as well as
wastage of time and materials. He got highly influenced with the Japanese work culture, so he
planned to adopt paternalistic style of management in his factory as well. His father appreciated
the Japanese culture but advised him to modify the principles as per the demand of the situation.
For greater productivity, he believed in separation of planning and execution functions and
decided to extend this concept to the shop floor.
He believed that an organization cannot succeed without winning the confidence of his
employees and for that it is very important that management and workers both honour their
commitments. He shared his vision with his managers. His team was very excited to have new ideas
and an enthusiastic entrepreneur.
63. "He proposed to adapt to logical approach to his business rather than hit and trial method as he
knows that this can result in tremendous saving of human energy as well as wastage of time and
materials." Which importance of principle of management is highlighted in this sentence?
(a) Scientific decision
(b) Optimum utilization of resources and effective administration
(c) Providing managers with useful insight into reality
(d) Fulfilling social responsibility
64. "He got highly influenced with the Japanese work culture, so he planned to adopt paternalistic style
of management in his factory as well." Which scientific principle of management is Kashish Kapoor
talking about?
(a) Science, not rule of thumb
(b) Harmony, not discord
(c) Cooperation not individualism
(d) Development off each and every person to his or her greatest efficiency.
65. "His father appreciated the Japanese culture but advised him to modify the principles as per the
demand of the situation." Identify the nature of principles of management.
(a) General guidelines (b) Mainly behavioural (c) Flexible (d) Contingent
66. "For greater productivity, he believed in separation of planning and execution functions and decided
to extend this concept to the shop floor." Which technique of scientific management has been
referred to in above lines?
(a) Simplification (b) Differential Piece Wage system
(c) Functional Foremanship (d) Standardisation
67. "He believed that on organization cannot succeed without winning the confidence of his employees
and for that it is very important that management and workers both honour their commitments."
Identify Fayol's principle of management highlighted in above lines.
(a) Discipline (b) Equity (c) Espirit de Corps (d) Initiative
Note: In paternalistic style of management, a manager treats employees as a family member and
expects loyalty, trust and obedience from them.

1. Principles of management are derived in _____ ways.
2. The principles of management are derived on the basis of ________ and _______.
3. The principles of management are ________ as their applicability is _________ upon the prevailing
situation at a particular point of time.
4. A managerial principle is a broad and __________ guideline for decision making and behaviour.
5. Management principles are not as __________ as principles of pure science.
6. Principles of management enable a better understanding of the relationship between _____________
and ____________ resources in accomplishing organizational purposes.
7. Derivation of principles of management may be said to be a matter of __________ and their
creative application may be regarded as an __________.
8. Principles of science are based on _________relationship.
9. The principles are guidelines to action but do not provide readymade, __________ to all managerial
problems.
10. The principles of management are __________ prescriptions.
11. Principles are ______to take decision whereas __________ are methods to take action.
12. The principles of management provide basic groundwork for the development of management as a
______________.
13. Principles of management are _____ whereas principles of science are _____ in nature.
14. ______ wanted to differentiate between efficient workers and inefficient workers.
15. ___________ is the lowest ranking manager and the highest ranking worker.
16. The objective of ____ study is to determine the one best way to perform the job.
17. Taylor believed that there was only ____ best method to maximise efficiency.
18. Sharing of _____between management and workers leading to complete _____.
19. The concept of functional foremanship was extended to the _______level of the shop floor.
20. To establish interchange ability of manufactured parts and products is the objective of _______.
21. Through _______ study, Taylor was able to design suitable equipment and tools to educate workers
on their use.
22. __________ means knowing exactly what you want men to do and seeing that they do it in the best
and cheapest way.
23. As per one of the principles of scientific management, one best method to do a work is developed
through study and analysis and it substitutes _______________.
24. The principle, __________ is an extension of principle of ‘Harmony not discord’.
25. Industrial efficiency depends to a large extent on __________ competencies.
26. Taylor advocated separation of __________ and __________ functions.
27. Functional foremanship is an extension of the principle of __________.
28. __________ refers to the process of setting standards for every business activity.
29. __________ aims at eliminating superfluous varieties, sizes and dimensions.
30. The objective of __________ is to find out one best way of doing the job.
31. __________ refers to the study of movements like lifting, putting objects.
32. __________ system helps differentiate between efficient and inefficient workers.
33. __________ involves a change in the attitude of workers and management towards one another
from competition to cooperation.
34. The latest development in scientific management is __________.
35. Taylor gave the concept of ‘_______Management’ whereas Fayol emphasized ‘_____ Principles’.
36. Ford Motor company successfully use the concept of ______________ devised by Taylor.
37. __________ is the right to give orders and obtain obedience, and _________ is the corollary of
authority.
38. There should be _______between authority and responsibility according to Fayol.
39. Gang plank permits ___________ communication.
40. Scope of decentralisation is more in _________ organisations.
41. If workers’ efficiency matters in the factory system, so does the managerial efficiency. This statement
was quoted by _______.
42. Principle of ______ requires good superiors at all levels, clear and fair agreements and judicious
application of penalties.
43. __________ ensures units of an organisation should be moving towards the same objectives.
44. The principle, __________ ensures interests of an organisation should take priority over the interests
of any one individual employee.
45. The principle, __________ ensures one subordinate should receive orders from and should be
responsible to only one superior.
46. The principle __________ ensures congenial atmosphere and good relations between workers and
management.
47. Principle of order talks about __________ order and __________ order.
48. Principle of __________ emphasises kindliness and justice in the behaviour of managers towards
workers.
49. The formal lines of authority from highest to lowest ranks are known as________.
50. Employee __________ should be minimised to maintain organisational efficiency.
C. TRUE AND FALSE

1. Employees’ turnover refers to the turnover achieved by employees.
2. Management principles are derived after observations and experimentations when certain conditions
are present.
3. Principle of management are behaviourial in nature and these can be applied to human beings only.
4. Fayol’s principle of “subordination of individual interest to general interest relates to Taylor’s
technique of Mental Revolution”.
5. Principles of scientific management are universally applicable.
6. Management principles are as rigid as principles of pure science.
7. Principles of management contribute towards the development of management both as a science
and as an art.
8. The extent of the applicability of principles of management vary with the nature of the organisation.
9. The principles of management are formed by experience and collective wisdom of managers.
10. The principles of management are rigid prescriptions, which have to be followed absolutely.
11. Remuneration principle states that overall pay and compensation to both males and females should
be same.
12. Principles enable a better understanding of the relationship between human and material resources.
13. The principles of management are intended to establish relationship between cause and effect.
14. Contingency is dependent upon the prevailing situation at a particular point of time.
15. Standardisation aims at eliminating unnecessary diversity of products.
16. Simplification aims at eliminating unnecessary movements while performing the jobs.
17. The objective of time study is to determine the number of workers to be employed and determine
labour costs.
18. Fatigue study aims at to increase productivity.
19. Motion study focuses on elimination of unnecessary movements while lifting objects, sitting and
changing positions.
20. Motion study is the extension of simplification of work.
21. The principle, harmony not discord aims at elimination of competition with the cooperation.
22. The technique mental revolution is the extension of principle, ‘harmony not discord’.
23. Functional Foremanship violates the principle of unity of command.
24. Management principles are flexible to adapt to dynamic business environment.
25. Adherence to the management principles ensures control over managerial situations and
circumstances.
26. The principles of management have not been evolved by chance but they have been derived by the
management experts.
27. Sharing of gains with the workers is the objective of the principle, ‘Harmony, not Discord’.
28. When a principle is applied to a particular situation, it is known as ‘cause’ and the result of application
of the principle is known as ‘effect’.
29. Application of principles has to be changed depending upon specific requirements.
30. Taylor suggested mental revolution as a scientific technique to change the mindset of the employees.
31. According to Taylor, Competition should be replaced by cooperation.
32. Scientific management means using rule of thumb to perform task in best and cheapest way.
33. Taylor had the view that one group should have one head and one plan.
34. Scientific principles have universal validity and application.
35. Taylor worked at top level whereas Fayol worked at operative level.
36. Rule of thumb means doing something just because others have been doing it.
37. Competition is replaced with cooperation when the people work in team.
38. The technique of ‘Mental Revolution’ is derived from the scientific principle of Cooperation not
individualism’ given by Taylor.
39. Principle of order relates to orders and instructions given by superior to his subordinates.
40. Principles of Fayol are developed on the basis of scientific experiments.
41. Fayol suggested that there is a need to balance subordinate involvement through decentralization.
42. Fayol is also known as father of functional management.
43. Gang plank permits horizontal communication.
44. In case of emergency, any worker can approach the CEO of a company.
45. In case of emergency, any worker can approach the CEO of a company under gang plank.
46. If unity of command is violated, it affects individual but if unity of direction is violated, it affects the
entire organization.
47. Discipline refers to compliance of rules and regulations by subordinates working at different levels in
an organisation.
48. One group of workers should receive orders and instructions from and be answerable to only one
boss.
49. Esprit de corps means all the employees should be treated fairly without any discrimination.
1. Name the practitioner, who was the first to identify the functions of management like planning,
organising, staffing, directing and controlling.
2. ‘‘The principles of management are the guidelines to action but do not provide ready-made straight
jacket solutions to all managerial problems.’’ Which characteristic of principles of management is
referred to here?
3. Name the principle which suggests that authority and communication should follow the official
chain of command.
4. Which expert of management worked at the operative level in the organisation?
5. Which technique of scientific management recommends for higher remuneration for the efficient
workers and helps in the improvement of inefficient workers?
6. Name the technique in which the factory manager is assisted by two incharges.
7. Which technique of Taylor violates the applicability of Fayol’s principle of ‘Unity of Command’?
8. Who is known as the father of Scientific Management?
9. Which principle of management suggests ‘a place for everyone/everything and everything/ everyone
in proper place?
10. The principles of management are not rigid and can be modified when the situation demands.’’
Which nature of management principles is being discussed here?
11. Which principle of management suggests that communication from top to bottom should follow the
official lines of command?
12. Name the principle of management which requires good supervisors at all levels, clear and fair
agreements and judicious application of penalties?
13. Factory owners or managers rely on personal judgment in attending to the problems they confront
in the course of managing their work. Which principle of Taylor is it referring to?
14. Which technique of Taylor acts as the strongest motivator for a worker to reach standard
performance?
15. Which technique of Taylor separates ‘Planning’ and ‘Execution’ functions?
16. Principle of cooperation, not individualism, is an extension of which principle given by Fayol?
17. Name the principle of Fayol which is similar to the Taylor’s principle, ‘harmony, not discord’.
18. Which scientific principle of management talks about rewarding the employees for their constructive
suggestions.
19. ‘The more sophisticated the process, greater would be savings.’ Which scientific principle of
management is referred to here?
20. A company manufacturing motorcycles and cars should have separate divisions for both, headed by
separate divisional managers, separate plans and resources. Identify the principle with the help of
this example.
21. In one of the principles, Fayol said that the personnel should be selected after appointed after due
and rigorous procedure. Identify the principle.
22. If an organization does not provide the right place for physical and human resources in an organization,
which principle is violated?
23. Which principle is violated if a subordinate is asked to receive orders from two or more superiors?
24. Which technique of Taylor is the extension of Fayol’s principle, ‘Division of Labour’?
25. Name the principle which speaks about the concentration of power with the top-level or in the
hands of one person in an organisation.
26. Name the principle of management which states that there should be one and only one superior for
every individual employee.
27. Name the technique of scientific management that lays down that there should be two types of
rates of wage payment.
28. Which technique of scientific management relates to multiple accountability?
29. Name the principle of management which when applied would mean that workers and management
both honour their commitments without any prejudice towards each other.
30. Name the principle which speaks about the dispersal of power from the top level to the bottom level
in an organisation.
31. “They have to be applied very carefully depending upon the organisational requirements and
situational demands.” Which characteristic of principles of management is referred here?
32. Which concept of ‘Chain of Command’ permits two managers of the same rank or level to
communicate directly by violating the ‘hierarchy’?
33. “Subordinates report to their immediate superiors and the superiors report directly to their superiors
as subordinates”. Which principle of management is referred here?
34. Which principle of Taylor recommends scientific enquiry instead of hit and trial method?
35. Which technique of scientific management aims at elimination of superfluous varieties, sizes and
dimensions of products?
36. Which principle prescribes that work should be divided into small tasks to attain specialisation in the
work performance of each worker?
37. “In order to be successful, an organisation must change itself and its goals according to the needs of
the environment.” Which point of importance of principles of management is referred to here?
38. Sanaker and Gagan started their career in Wales Limited (printing press) after going through a
rigorous recruitment process. Since they had no prior work experience, the firm decided to give
them one year to prove themselves. Name the principle of management followed by Wales Limited.
(NCERT)
39. Instead of relying upon their personal judgement, the owners of Max India trust on the best method
developed through study and analysis while sorting out their routine problems. Which principle of
Taylor is followed by the management?
40. One of the techniques given by F.W. Taylor violates a principle given by Henry Fayol. Identify the
technique.
41. Name the technique of Taylor which is based on his scientific principles of management, ‘science not
rule of thumb’.
42. One of the techniques given by F.W. Taylor is the extension of a principle given by Henry Fayol.
Identify such technique and principle.
43. Name the principle of scientific management which emphasises on the study and analysis of methods
rather than estimation.
44. Techniques, “Functional Foremanship” suggested by F.W. Taylor violates a principle given by Henry
Fayol. Identify the principle.
45. Identify the techniques of scientific management when standard tools, equipments, methods and
techniques are set after rigorous research.
46. Principles of management enable managers to learn from the past and conserve time by solving
recurring problems quickly. Identify the importance of principle of management highlighted above.
47. Name the technique of Scientific Management given by Taylor whose objective is to determine the
number of workers to be employed for a task.
48. Techniques like Operation Research (OR), cost accounting, ‘just in time’, ‘Kanban’ and ‘Kaizen’ have
been developed. Which importance of the principles of management has been highlighted here?
49. Rahul, a manager expects his subordinates to get the work done as per his instructions, yet has a
differential treatment for each person. Which principle of management is being overlooked?
50. ‘Multiplying the authority by “two” and multiplying the authority by “many” ’. Identify the concepts.
51. Which principle of management is violated when employees are given the responsibility to achieve
target production of 500 units with no authority to access raw materials?
52. Which principle of management is violated when a worker wastes time in search of tool box in the
organisation?
53. Name the technique of Scientific Management given by Taylor which helps differentiate between
the efficient and the inefficient workers.
54. One of the Fayol’s principle points out the “Danger and Costs of Unnecessary Labour Turnover.”
Name the relevant principle.
55. “Workers should be encouraged to develop and carry out their plans for improvements.” Identify the
principle of management formulated by Fayol.
56. Identify the techniques of scientific management when there is change in the outlook between
workers and management towards each other for mutual gains.
57. Which principle of management is violated when a manager allows one month leave to a supervisor
with pay and only one-week medical leave to an accountant.
58. Which principle of management is violated when Aman, a worker in Malik Crafts Limited, through
his personal experience, was able to identify the time-saving techniques of production but when he
approached management with his suggestion he was not appreciated.
59. Name the technique of Taylor which is the strongest motivator for a worker to reach standard
performance.
60. Which principle of management envisages that each group of activities having the same objectives
must have one head and one plan? Identify the principle.
61. Which principle of management aims at securing the loyalty and devotion of the employees by
giving them kind, fair and just treatment? Name the principle.
62. Which principle of management is violated when sales manager is not given the right to discount to
the buyer necessary to conclude a large sales contract which will be profitable for the company.
63. ‘Principles of management are different from that of pure science and are to be applied creatively
given the demands of the situation.’ Identify the nature of principle of management.
64. Which principle of management is violated when a manager expects his subordinates to adopt to
new working conditions without giving them time to settle down.
65. Neelender, a manager expects his subordinates to work with happiness and pleasure of being in the
organisation. Which principle is followed in this situation?
66. Akshaya, the manager does not distribute the work according to capabilities and the qualifications
of employees’. Which principles is overlooked by him?
67. ‘Taylor believed that the management should share the gain with workers’. Identify the principle of
management as referred to in the above paragraph.
68. ‘Fayol suggested that employees’ compensation should depend upon the earning capacity of the
company and should give them a reasonable standard of living’. Identify the principle of management
by Fayol referred to in the above paragraph.
69. Which principle of management is violated when a subordinate habitually contacts higher authorities
in the company without informing his immediate superior.
70. Identify the technique of scientific management when each employee is supervised by various
supervisors.
71. A sales person is asked to finalise a deal with customer. The marketing manager allows him to give
a discount of up to 10% but the Finance Manager allows him to give discount of up to 25%. Which
principle is violated here?
72. The general manager of a company asks the sales manager to offer a discount of not more than 5%
on the selling price but the customer demanded discount @10% and sales manager allowed so.
Which principle of management is violated here?
73. Which principle of management is violated when a manager directly passes the information to his
supervisor and also to the supervisors of other department.
74. Indian Oil Limited believes finding the best way of performing a job through application of scientific
analysis and not by intuition or hit and trial methods. This is related to one of the principles of
management. Name the principle.
75. You are the head of your school. It comes to your notice that books are kept in office, chalks in the
library and office records in the staff room. Which principle of management is ignored here?
76. ‘Éach person should be scientifically selected and the work assigned to him should suit his/ her
physical. mental and intellectual capabilities.’ Name the principle of scientific management involved
in the above situation.
77. Which principle of management is violated when a manager is not himself punctual and is very
casual when his employees are late for work.
78. A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for
ordering raw material for the firm. While deciding on the supplier for the financial year 2020-21, he
gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was
willing to lower the rates for the order.Which principle of management was violated by Mr. Rathore?
(NCERT)
79. Aishini Agro (OPC) Private Limited, run by Mr Nishant Ali, deals in manufacturing soft toys. As the
Friendship Day approaches, Mr Nishant decided to double the production and halved the rest
intervals of the employees. This strategy led to a decline in efficiency instead of the increase in
production.Identify the technique of scientific management ignored by Mr Nishant.
80. The manager in the ‘Saraswati Solutions Limited’ is very lax with his subordinates and does not
explain to them the parameters, rules and regulations for reporting and completion of work. Identify
the principle of management misused here.
81. Veronika and Laxmi completed their Masters in Business Economics from Delhi School of Economics.
Laxmi belongs to a rural area in Sikkim whereas Veronika belongs to Delhi. They got the campus
recruitment in ‘India Infoline Limited’ on the post of ‘Online Development Manager’. Ignoring the
differences between the two, company decided to give same salary package of Rs 6,00,000 per
annum. Name the principle of management being followed in the above case.
82. ‘Campus Shoes Limited’, recruited Mr. Nilesh from Shri Ram College of Commerce for the post of
Business Analyst and Mr Silesh for the post of Business Development Head. Both of them were sent
on training and development programs organized by the company to equip them at par with industry
norms. Name the principle of scientific management highlighted in the above case.
83. The production manager of ‘Bharat Cosmetics Limited’ instructs the sales team to go slow in selling
the product, whereas the marketing manager insisted on fast selling to achieve the target. Which
principle of management is being violated in this case?
84. The Directors of ‘Bhupendra Computers Limited’, an organisation manufacturing computers, want
to double the sales and have given this responsibility to their sales manager. The sales manager has
no authority either to increase the sales expense or to appoint new salesman. Hence, he could not
achieve his target. Identify the relevant principle associated in the above case.
85. A company is manufacturing cosmetics, medicines, health products and skin care products. It has
separate divisions headed by divisional heads. Each division consists of separate departments with
respective departmental heads. Each department has different groups and units with their own
goals and objectives. Which principle of management is being followed in the said organisation?
86. The management of ‘Zebra Cosmetics Limited’ received an order which was to be executed within
a short period of time. The management discussed the issue with workers and it was mutually
agreed that the workers would do the job on the double shifts and their efforts would be rewarded
by paying double rate of units for the extra time. Later, the management paid their wages at the
normal rate. Which principle in this situation has been violated?
87. Beena, a student of management, likes to relate what she learnt in class to real life situations. While
watching educational programmes on television, she observed many situations that reminded her
of concepts of Scientific Management. In one such programme, factories manufacturing parts for
products like automobiles, computers and mobile phones were being telecast. Name the technique
of Scientific management that should be adhered to, while manufacturing parts for such products.
(Compartment Delhi/Outside 2017)
88. Manager of ‘Pinnacle Ltd.’ used his discretion while deciding on the degree of concentration of
authority (cenralisation) or its dispersal (decentralisation) keeping in view the situations and
circumstances of the enterprise. Which feature of principles of management is highlighted here?
89. Sterlite Industries (India) Limited provides training based on one of the scientific principles of
management to make the workers learn the best method of production which emphasises that
each employee in the organisation should be scientifically selected and the work assigned to the
employees should suit their physical, mental and intellectual capabilities. Which scientific principle
of management is followed in the organisation?
90. Principles of management equip the managers to foresee the cause and effect relationships of their
decisions and actions so that the wastages associated with a trial and error approach can be
overcome. Identify the point of significance of principle of management highlighted here.
(CBSE Outside Delhi 2019)
91. Appliances India Ltd. is engaged in manufacturing and distribution of home appliances since 1987. It
has a good name in the market as the company is producing good quality appliances. It has separate
departments for manufacturing, finance, sales, maintenance services and technical services to
achieve specialization. Since the areas of operations of the company have increased and customers
have become more demanding, the company decided to modify the existing principle of management
to meet the changing requirements of the environment. Identify the general principle of management
which the company wants to modify to meet the changing requirement. (CBSE 2019 Delhi Region)
92. Public sector undertakings have developed entire townships as, for example, BHEL has developed
Ranipur in Hardwar (Uttaranchal). Identify the significance of the principles of management in
above lines.
93. Reema is one of the most successful managers of her company, Globe Ltd. She knows that the
principles of management are intended to apply to all types of organisations, business as well as
non-business, small as well as large, public sector as well as private sector. One of the points related
to the nature of management principles is being highlighted in the above description. Identify the
point. (Compartment Outside Delhi 2017)
1. The objective of method study is to determine the number of workers to be employed; frame
suitable incentive schemes and determine labour costs
2. Even the contemporary techniques of business process including reengineering, kaizen (continuous
improvement) and benchmarking are aimed at simplification(eliminating unnecessary diversity of
products.
3. In Japanese companies, paternalistic style of management is in practice. If the workers go on strike,
they wear a black badge and work less than normal working hours to gain attention of the
management.
4. For designing a car, the assembly line production would entail deciding the sequence of operations,
place for men, machines and raw materials etc. All this is a part of time study.
5. Principles are procedures or methods, which involve a series of steps to be taken to accomplish
desired results.
6. In situations requiring cross- functional expertise, such as setting up of a new factory, more autocratic
approach to decision-making is advisable.
7. Taylor believed that through work studies like time study, method study and fatigue study, good
methods can be developed.
8. Foreman is the lowest raking manager and worker.
9. Standardisation aims at eliminating superfluous varieties, sizes, and dimensions of the product and
implies reduced inventories and fuller utilisation of resources while simplification implies devising
new varieties instead of existing ones.
10. Managing factories by rule of thumb allowed managers to rely strictly upon the principles of
management for handling the situations they confront in the course of managing their work.
11. If principle of equity is violated, authority in undermined, discipline is in jeopardy, order disturbed
and stability threatened.
12. According to the principle of remuneration, the employees should be given just and equal wages. At
the same time the wages should be within the paying capacity of the organization and enable
workers a reasonable standard of living.
13. Panchayats in our country have been given more powers to decide and spend funds granted to them
by the government for the welfare of villages. This is perfect example of centralisation at the
national level.
14. If a manufacturing concern is manufacturing motorcycles as well as cars, then it should have two
separate divisions for both of them. This is an example of functional foremanship.
15. According to Fayol, discipline requires good superiors at lower level; clear and fair agreements, and
judicious application of penalties.
F. QUESTIONS BASED ON REASONS AND ASSERTION
1. Assertion (A): According to Taylor, there should be an almost equal division of work and responsibility
between workers and management.
Reason (R): The principle of ‘harmony not discord’ says that there should be complete harmony
between management and workers.
2. Assertion (A): Even a small production activity like loading pigs of iron into boxes can be scientifically
planned and managed.
Reason (R): Taylor believed that there was only one best method to maximise efficiency.
3. Assertion (A): Personnel should be selected and appointed after due and rigorous procedure.
Reason (R): The principle of ‘Stability of Personnel’ says that employee turnover should be minimized
to maintain organizational efficiency.
4. Assertion (A): Employees deserve just and fair remuneration but what is just and fair is determined
by multiple factors. They include contribution of employees, paying capacity of employer and also
prevailing wage rate for the occupation under consideration.
Reason (R): The principles of management are flexible and can be modified by the manager when
the situation so demands.
5. Assertion (A): A manager should have right to punish a subordinate for willfully not obeying a
legitimate order but only after sufficient opportunity has been given to subordinates for presenting
his/ her case.
Reason (R): The principles of ‘Discipline’ says good superiors at all levels, clear and fair agreements
and judicious application of penalties.
6. Assertion (A): Both the workers and management both honour their commitments without any
prejudice towards one another.
Reason (R): The principles of ‘Espirit De Corps’ says that management should promote a team spirit
of unity and harmony among employees.
7. Assertion (A): The principles of management are intended to establish relationship between cause
and effect so that they can be used in similar situation.
Reason (R): Real business situations are predictable and perfect principles give solutions to the
problems.
8. Assertion (A): Functional foremanship is an extension of the principle of division of work and
specialization to the shop floor.
Reason (R): Foreman should have intelligence, education, tact. grit, judgment, energy etc. It is
difficult to find these qualities in a single person.
9. Assertion (A): If there is open communication system and goodwill, the workers desist from going
on strikes; instead make trade unions to keep their demands.
Reason (R): The principle of ‘cooperation not individualism’ talks about complete cooperation
between the labour and the management instead of individualism.
10. Assertion (A): Each person should be scientifically selected and the work assigned should suit his/her
physical, mental, and intellectual capabilities so that there is no need of training.
Reason (R): According to Taylor, the industrial efficiency depends to a large extent on personnel
competencies so concern for efficiency could be built in right from the process of selection.
11. Assertion (A): Fayol has given the principle of authority and responsibilities.
Reason (R): There is a need to balance subordinates’ involvement and managers’ retention of final
authority.
12. Assertion (A): Unity of command with the objective of one head and one plan ensures unity of action
and coordination.
Reason (R): As dual subordination is avoided through unity of command, there are no confusions
regarding the task to be done.
13. Assertion (A): Lazy personnel should be dealt with sternly to send the message that everyone is
equal in the eyes of management.
Reason (R): The principle behind this assertion is equity which emphasizes on harshness and justice
in the bahaviour of management with workers.
14. Assertion (A): Differential piece wage technique is based on the principle of harmony not discord.
Reason (R): Harmony not discord emphasis on sharing the gains of the company, if any, with the
workers.
15. Assertion (A): Functional foremanship is the extension of principle of unity of direction.
Reason (R): Taylor advocated separation of planning and execution function. There are eight
specialists and each specialist is to be assigned work according to his/her qualities.

ANSWER KEY
1. (c) absolute 32. (b) Harmony not Discord
2. (c) tested in Laboratories 33. (a) 1(D), 2(B), 3(A), 4(C)
3. (b) By exsperiences of managers 34. (b) Motion Study
4. (c) Meeting changing environment 35. (b) Science, not rule of thumb
requirements 36. (b) Simplification
5. (c) Principles are behaviourial 37. (b) mining engineer
6. (b) rigid/flexible 38. (b) Henry Fayol
7. (a) flexible 39. (b) Centralisation and decentralisation
8. (a) Contingent 40. (d) It leads to specialisation
9. (a) Applicable only in large firms 41. (a) equity
10. (c) Principles, techniques 42. (d) Remuneration of employees
11. (b) 1-A, 2-D, 3-B, 4-C 43. (c) Stability of personnel
12. (b) Functional foremanship 44. (c) discipline
13. (d) Shop level 45. (d) Equity
14. (a) F.W Taylor Reason: Equity emphasises on kindliness and
15. (c) Gang Boss justice in the behaviour of management
towards workers. The lazy personnel should
16. (d) Method Study
be dealt with sternly to send the message that
17. (d) Unity of Command
everybody is equal in the eyes of the management.
18. (b) Remuneration
46. (c) Initiative
19. (c) Lean Manufacturing Reason: As per principle of initiative the
20. (c) Standardisation and Simplification workers should be encouraged to carry out
21. (d) functional Foremanship their plans for improvement.
22. (a) Standardization 47. (c) Scalar Chain
23. (c) Differential piece wage system 48. (b) Two superiors at same levels take
24. (a) Change of attitude decision in case of urgency
25. (b) 1-B, 2-A, 3-D, 4-C 49. (c) Scalar chain
26. (b) 1(D) 2(C) 3(B) 4(A) 50. (b) Unity of Direction
27. (b) Functional Foremanship 51. (b) Unity of command
28. (c) Cooperation not individualism 52. (b) Discipline
29. (d) Method Study 53. (c) Authority and responsibility
30. (a) Repair Boss 54. (c) Principle of Remuneration
31. (b) Motion study 55. (a) Esprit de corps
56. (c) loss of coordination 61. (b) 2&3
57. (b) Science, not rule of thumb 62. (c) 1-B, 2-D, 3-A, 4-C
58. (b) Esprit De Corps 63. (b) Optimum utilization of resources and
59. (c) Taylor’s contribution was based on effective administration
personal experiences whereas Fayol’s 64. (b) Harmony, not discord
contribution was based on observations 65. (c) Flexible
and experimentations. 66. (c) Functional Foremanship
60. (c) Functional foremanship 67. (a) Discipline
1. Two 26. Planning/execution

2. Observation/experimentation 27. Division of work
3. Contingent/dependent 28. Standardisation
4. General 29. Simplification
5. Rigid 30. Method study
6. Human/material 31. Motion study
7. Science/art 32. Differential piece wage
8. Cause and effect 33. Mental revolution
9. Straitjacket solutions 34. Lean manufacturing
35. Scientific/Administrative
10. Flexible
36. Assembly line
11. Guidelines/technique
37. Authority/responsibility
12. Discipline
38. Parity
13. Flexible/rigid
39. horizontal
14. Taylor
40. Big
15. Foreman
41. Henri Fayol
16. Method
42. Discipline
17. One 43. Unity of direction
18. Gains/ harmony 44. Subordination of individual interest to general
19. Lowest interest
20. Standardization 45. Unity of command
21. Motion 46. Remuneration to employees
22. Scientific management 47. Material order/social order
23. Rule of Thumb 48. Equity
24. Cooperation, not individualism 49. Scalar chain
25. Personnel 50. Turnover
C. TRUE AND FALSE
1. F 2. T 3. T 4. T
5. F Explanation: Principles are scientific management are normally not adopted by adopted by
proprietary business corporate houses.
6. F 7. T 8. T 9. T 10. F
11. F Explanation: The remuneration should be fair as per the competency level of an employee without
discrimination on any ground.
12. T 13. T 14. T 15. F 16. F 17. T 18. T 19. T
20. T 21. F 22. T 23. T 24. T 25. F 26. T 27. T
28. T 29. T 30. T 31. T 32. F 33. F 34. F 35. F
36. T 37. T 38. F Explanation: It is derived from ‘Harmony not Discord’.
39. F 40. F 41. T 42. T 43. T 44. T
45. F Explanation: It is applicable when a decision in case of emergency is taken by two superiors of
equal rank.
46. T 47. T 48. T 49. F

1. Henri Fayol. 19. Science not rule of thumb.
2. General Guidelines 20. Unity of Direction.
3. Scalar Chain. 21. Stability of tenure
4. Frederick Winslow Taylor. 22. Order
5. Taylor’s ‘Differential Piece Wage Plan’. 23. Unity of Command
6. Taylor’s technique of “Functional Foremanship”. 24. Functional Foremanship.
7. Functional Foremanship. 25. Principle of Centralisation of Authority.
8. Frederick Winslow Taylor. 26. Unity of command.
9. Principle of Order. 27. Differential Piece Wage System
10. Flexibility. 28. Functional Foremanship
11. Scalar Chain. 29. Principle of Discipline
12. Principle of discipline. 30. ‘Decentralisation of Authority
13. ‘Rule of Thumb’ 31. Contingent
14. Differential piece wage system. 32. Gang Plank.
15. Functional Foremanship. 33. Scalar Chain.
16. Principle of Harmony, not Discord. 34. The principle, “Science, not the Rule of Thumb”
17. Esprit de Corps 35. Simplification of Work.
18. Cooperation not individualism 36. Fayol’s principle of “Division of Work”.
37. Meeting changing environment requirements. 69. Scalar chain
38. Stability of tenure 70. Functional foremanship
39. Science, not the rule of thumb. 71. Unity of Command.
40. Functional foremanship 72. ‘Parity of Authority with Responsibility’
41. Standardisation and simplification 73. Scalar chain
42. The technique of ‘functional foremanship’ / 74. Science, not Rule of Thumb
division of work 75. Order
43. Science, not rule of thumb 76. Development of each and every person to his
44. Unity of command. or her greatest efficiency and ability
45. Standardisation. 77. Discipline
46. Providing managers with useful insights into 78. Subordination of individual interest to general
reality interest
47. Time Study 79. Fatigue Study
48. Management training, education and research
80. Parity of Authority and Responsibility
49. Equity
Explanation: The manager has given the
50. Unity of command and functional foremanship. authority and has not clarified how they will
51. Parity between Authority and Responsibility be accountable if they fail to fulfill their
52. Order responsibility.
53. Differential Piece Wage System 81. Principle of Equity
54. Stability of Tenure 82. Development of each and every person to the
55 Initiative greatest efficiency.
56. Mental revolution 83. Unity of Command
57. Equity 84. Parity between Authority and Responsibility.
58. Initiative 85. Unity of Direction
59. Differential Piece Rate Plan 86. Principle of Discipline
60. Principle of Direction 87. Standardisation of work
61. Equity 88. Flexible
62. Parity of authority and responsibility 89. Development of each and every person to his
63. Management Principles are Flexible. or her greatest efficiency and prosperity
64. Stability of tenure 90. Optimum utilisation of resources and effective
65. Principle of Esprit de Corps administration
66. Principle of Division of Work 91. Division of work.
67. Harmony, not discord 92. Fulfilling social responsibilities
68. Remuneration 93. Universal Applicability
1. The objective of time study is to determine 9. Simplification aims at eliminating superfluous
the number of workers to be employed; frame varieties,, sizes, and dimensions of the product
suitable incentive schemes and determine and implies reduced inventories and fuller
labour costs. utilisation of resources while standardisation
2. Even the contemporary techniques of business implies devising new varieties instead of
process including reengineering, kaizen existing ones.
(continuous improvement) and benchmarking 10. Managing factories by rule of thumb allowed
are aimed at standardization the work managers to rely upon their personal
(setting standards for every business activity). judgment for handling the situations they
3. In Japanese companies, paternalistic style of confront in the course of managing their work.
management is in practice. If the workers go 11. If principle of unity of command is violated,
on strike, they wear a black badge and work authority in undermined, discipline is in jeopardy,
more than normal working hours to gain order disturbed and stability threatened.
sympathy of the management. 12. According to the principle of remuneration,
4. For designing a car, the assembly line the employees should be given just and
production would entail deciding the sequence equitable wages. At the same time the wages
of operations, place for men, machines and should be within the paying capacity of the
raw materials etc. All this is a part of method organization and enable workers a reasonable
study. standard of living.
5. Techniques are procedures or methods, which 13. Panchayats in our country have been given
involve a series of steps to be taken to more powers to decide and spend funds
accomplish desired results. granted to them by the government for the
6. In situations requiring cross- functional welfare of villages. This is perfect example of
expertise, such as setting up of a new factory, decentralisation at the national level.
more participative approach to decision- 14. If a manufacturing concern is manufacturing
making is advisable. motorcycles as well as cars, then it should have
7. Taylor believed that through work studies like two separate divisions for both of them. This is
time study, method study and fatigue study, an example of unity of direction.
one best method can be developed. 15. According to Fayol, discipline requires good
8. Foreman is the lowest ranking manager and superiors at all levels; clear and fair agreements,
highest ranking worker. and judicious application of penalties.

1. (b) Both A and R are true but R is not the talks about complete cooperation between
correct explanation of A the labour and management. Management
Explanation: Both A and R are correct but R is should work almost side by side with the
not the correct explanation of A as per Taylor, workers helping, encouraging and smoothening
‘Principle of cooperation not individualism’ the way for them.
2. (a) Both A and R are true and R is the correct 9. (d) A is false but R is true
explanation of A Explanation: If there is open communication
Explanation: Both A and R are correct and R system and goodwill, the workers desist from
is the correct explanation of A as per Taylor, going on strikes and making unreasonable
management is Science not rule of thumb. demands; there will be no need for even a
3. (a) Both A and R are true and R is the correct trade union.
explanation of A 10. (d) A is false but R is true
Explanation: Both A and R are correct and R Explanation: Each person should be
is the correct explanation of A as per Fayol, If scientifically selected and the work assigned
employees are selected and appointed after should suit his/her physical, mental, and
due and rigorous procedure, and given intellectual capabilities. To increase efficiency,
reasonable time to show result, they would they should be given required training.
not leave the organization and the cost of 11. (b) Both A and R are true but R is not the
recruitment, selection and training would be correct explanation of A
saved. Explanation: The reason for A is that there is
4. (b) Both A and R are true but R is not the a need to balance the right to obtain obedience
correct explanation of A and obligation to perform the duty.
Explanation: The reason behind A s that 12. (d) A is false but R is true
principles of management are contingent and Explanation: It is unity of direction and not
are dependent on the prevailing situation at the unity of command ensures unity of action
particular point of time. and coordination as its objective is one head
and one plan. Unity of command talks about
5. (b) Both A and R are true but R is not the
one person one boss.
correct explanation of A
13. (c) A is true but R is false
Explanation: The reason behind A is that there
Explanation: The principle of equity
should be balance between authority and
emphasizes on kindliness and justice in the
responsibility.
bahaviour of management with workers.
6. (b) Both A and R are true but R is not the
14. (a) Both A and R are true and R is the correct
correct explanation of A
explanation of A
Explanation: The reason behind A is principle
Explanation: Differential piece wage
of ‘Discipline’ which when applied would mean
technique is the outcome of the search for one
that the workers and management both
best efficient method of doing a work.
honour their commitments without any Efficiency is the result of the joint efforts of
prejudice towards one another. the managers and workers which results in
7. (c) A is true but R is false sharing of the resultant surplus rather than
Explanation: Real business situations are quarrelling over it.
complex and dynamic and imperfect principles 15. (d) A is false but R is true
cannot give solution to each problem. Explanation: Functional foremanship is the
8. (a) Both A and R are true and R is the correct extension of principle of division of work and
explanation of A specialization to the shop floor.

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A.

MULTIPLE CHOICE QUESTIONS (MCQs)

(a) Management is goal oriented (b) Management is pervasive

Nature and Significance of Management 4

B. FILL IN THE BLANKS

Nature and Significance of Management 8

C. TRUE AND FALSE

Nature and Significance of Management 10

D. ONE WORD ANSWER QUESTIONS

Nature and Significance of Management 12

13 Nature and Significance of Management

Nature and Significance of Management 14

15 Nature and Significance of Management

Nature and Significance of Management 16

Nature and Significance of Management 18

19 Nature and Significance of Management

Nature and Significance of Management 20

C. TRUE AND FALSE

21 Nature and Significance of Management

D. ONE WORD ANSWER QUESTIONS

E. CORRECT THE INCORRECT STATEMENT

23 Nature and Significance of Management

1. (c) A is true but R is false behaviour can’t be predicted, the outcomes

25 Nature and Significance of Management

B. FILL IN THE BLANKS

C. TRUE AND FALSE

B. FILL IN THE BLANKS

1. Two 26. Planning/execution

D. ONE WORD ANSWER QUESTIONS

F. QUESTIONS BASED ON REASON AND ASSERTION

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