BST 12th

Q1. Ram, a manager, very often speaks with people at all levels, passing on
instructions regarding his department and also the other departments.
Which principle of management is being overlooked?
(a) Scalar chain (b) Order
(c) Equity. (d) Unit of command

Q2.A purchase manager of a company has to purchase 500 tonnes of raw

material. Apart from the other suppliers in the market, his son also supplies that
raw material. The manager purchases the raw material from the firm of his son
at a rate higher than the market rate. Which principle of management has been
violated in this situation?
● Unity of command
● Unity of direction
● Subordinating personal interest to general interest
● Equity

Q3.Sanaklal and Gagan started their career in Wales Limited (a 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.
(a) Stability of personnel
(b) Scalar chain
(c) Equity
(d) Espirit de corps

Q4.The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output
from the employees at a competitive cost. On the other hand Ramakaant, an
employee of the company wants to get the maximum salary while working the
least. The Principle of management given by Fayol being violated by Ramakaant
is
● Remuneration
● Equity
● Discipline
● Subordination of individual interest to general interest

Q5.In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of
authority under her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris.
Another line of authority under Shalleen is Lata-Rupa-Geet-Hussain-Preeti.
According to a Principle of Management given by Fayol, If Ismail has to
communicate with Hussain who is at the same level of authority then illustrate
the route he will have to traverse.
● Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
● Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail
● Ismail-Chris-Shalleen-Preeti-Hussain
 ● Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain

Q6.According to the technique of Scientific management "Differential Piece

Wage system" How much more will a worker making 60 units earn as compared
to a worker making 49 units? If the standard output per day is 50 units and
those who make standard output or more than standard get & 75 per unit and
those below get & 65 per unit.
（a） ¥4,500
（b）き3,185
（c） 1,315
（d） 3,250

Q7.'M/s J.K. Computers' is a small organisation engaged in assembling of

computers. In this organisation, decision making rests with top management
while the middle level is involved in only the implementation of plans. On the
other hand, 'Progressive Computers Ltd. is a large company where a number of
people from each level are involved in the decision-making process.
The application of the principle of 'Centralisation and Decentralisation' is
different in the two organisations as the situation in each enterprise is not
same.
From the following identify the nature of principles of management:
(a) Mainly Behavioural
(b) Contingent
(c) Flexible
(d) Universal

Q8.Taylor called for complete mental revolution on the part of both

management and workers. It meant that management and workers should
transform their thinking. Management should share the gains of the company, if
any, with the workers. At the same time, workers should work hard and be
willing to embrace change for the good of the company.
The principle of management highlighted above is:
● Science, not the Rule of Thumb
● Cooperation, not Individualism
● Harmony, not Discord
● Development of Each and Every Person to His or Her Greatest
Efficiency and Prosperity
'

Q9. M/s J.K. Computers' is a small organisation engaged in assembling of

computers. In this organisation, decision making rests with top management
while the middle level is involved in only the implementation of plans. On the
other hand, 'Progressive Computers Ltd.? is a large company where a number
of people from each level are involved in the decision-making
process.
The application of the principle of Centralisation and Decentralisation is
different in the two organisations as the situation in each enterprise is not
same.
From the following identify the nature of principles of management:
(a) Mainly Behavioural
(b) Contingent
(c) Flexible
(d) Universal

Q10.Taylor called for complete mental revolution on the part of both

management and workers. It meant that management and workers should
transform their thinking. Management should share the gains of the company, if
any, with the workers. At the same time, workers should work hard and be
willing to embrace change for the good of the company. [CBSE 2023 (66/3/3)]
The principle of management highlighted above is:
● Science, not the Rule of Thumb
● Cooperation, not Individualism
● Harmony, not Discord
● Development of Each and Every Person to His or Her Greatest
Efficiency and Prosperity

Q11.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
2017-18, 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? What are the
positive impacts of following the above identified principle?

Q12. The students of Class XII of 'NK Senior Secondary School' visited the
factory of Jaipur Exports Private Limited', a company manufacturing readymade
garments. They observed that different workers were allocated different tasks
like cutting the fabric as per specification, stitching dresses, putting buttons,
ironing the finished dresses, packing them and putting labels. The Chief
Executive Officer told the students that this results in efficient and effective
output. They also observed orderliness in the factory as there was a fixed place
for everything and it was present there.
The students later discussed with their Business Studies teacher and
understood that principles of management given by Fayol were being followed
in the factory.
Identify and explain the two principles of management that have been
discussed in the above case.

Q13’.Yellow Pumpkin' is an Italian restaurant in Delhi, well known for its fresh
and authentic dishes including pasta, pizza, etc. It has been serving its
customers for the last 20 years. It had been winning various awards and
recognition for its services.
During Covid-19, it suffered huge losses. As the effect of Covid reduced and
the business started picking up, the management of 'Yellow Pumpkin' also
decided to go in for home delivery service to increase its revenue and profit.
For this they needed support of their workers to work overtime. 'Yellow
Pumpkin' entered into an agreement with its workers to put in extra hours
without additional payment to revive it out of losses. In return, they promised to
increase the wages of the workers when the mission is accomplished. The
workers put in extra hours as committed and in just three months, the
restaurant's business turned around and it became profitable again. 'Yellow
Pumpkin' honoured its commitment and not only increased the wages of the
workers but also gave them bonus as an additional incentive.
Identify and explain the principle of management followed by Yellow Pumpkin.

Q14.Vibhu joined as a Chief Executive Officer. (CEO) of 'Mega Marut Ltd.', a firm
manufacturing cars. On the first day he addressed his subordinates saying that
organisations should have a chain of authority and communication that runs
from top to bottom and should be followed by managers and the subordinates.
He also added that for routine matters a worker cannot directly contact the
CEO but in an emergency he/she may contact directly.
● Vibhu discussed an important principle of management.
● Identify and explain the principle with the help of an example.

Q15.Mr Abhisar Saini is working as the Personnel Manager in a company. The

company's recruitment policy is that as and when the company needs some
employees, it will give preference to the old employees available within it. Once
the company needed ten employees against different posts. Mr Saini put up a
notice on the company's notice board. Besides the desired eligibility and
experience, the following information was given in it (the notice).
() The willing person should submit their application by the end of March.
(i) The written test will be held on the 15th of April.
(in) On the 20th of April, interview will be held for the successful applicants.
(iv) On the 22nd of April, the selection letter will be issued to the selected
applicants.
To which type of plan' is related to the above event?
(a) Procedure. (b) Method
(c) Policy. (d) Rule

Q16.Hitkari Products Pvt. Ltd.' is a well-known company of its own type of

industry. Today, the company's position is this that if by the name of 'Hitkari' it
launches any product in the market, the possibility of its success is 100%.
Keeping in mind the fame of its brand, the company decided for the increase in
its sales by 20%. The company has full belief that its decision will turn out to be
100% correct. The information of this decision was communicated to all the
concerned officials, so that they should plan their activities on the basis of this
decision.
Identify the 'type of planning' conveyed by the above event.
(a) Objective. (b) Strategy
(c) Policy. (d) Budget
Q17.A company wants to increase its market share from the present 10% to
25% to have a dominant position in the market by the end of the next financial
year. Ms Rajni, the sales manager has been asked to prepare a proposal that
will outline the options available for achieving this objective. Her report
included the following options - entering new markets, expanding the product
range offered to customers, using sales promotion techniques such as giving
rebates, discounts or increasing the budget for advertising activities. Which
step of the planning process has been performed by Ms Rajni?
(a) Setting Objectives
(b) Identifying alternative courses of action
(c) Evaluating alternative courses
(d) Selecting an alternative

Q18.A sanitizer manufacturing company wants to become a market leader. For

this purpose the manager follows an activity with certain logical steps. The first
step suggested by him is to increase profits by at least 30% in the next quarter.
What will be the last step of the activity being followed by the manager.
(a) Follow-up action. (b) Identifying alternative course of action
(c) Setting objectives. (d) Evaluating alternative courses of action

Q19."Uttam Ayurvedic Ltd. is an established Indian company manufacturing

organic consumer goods like toothpastes and shampoos. It has planned to
increase its market share from 30% to 40% in the current financial year.
With the expanding market of organic products, other companies in the
consumer goods industry have also launched these products with organic
components. The competition in the market has increased and it was found that
the sales of Uttam Ayurvedic Ltd. came down and its market share was reduced
to 23%.
Identify the limitation of planning highlighted in the above case.
● Planning may not work in dynamic environment
● Planning is time consuming
●

Q20.Mrs Neeraj Dhariwal, the Managing Director of Parshu Foods Limited' held
a meeting with the Sales Manager in order to fix the target of sales for the
following year. For this purpose she studied the sales trend of the previous five
years. She came to know that the company's sales were increasing at the rate
of 30% every year. For this she did the market survey also. From this she learnt
that the biggest competing company which was running in loss, was planning to
leave this business and enter some other business. Taking it for granted that
the company would definitely enter some other business, Mrs Dhariwal doubled
the target from the previous year.
All the Departmental Managers were directed to make their respective
preparations to achieve this target. The sales manager kept a close watch over
the sales rate of his company and the activities of the competing company.
After some time, he felt that the competing company was not leaving its current
business, but was planning for improvement in it. The Managing Director called
an urgent meeting of all the Departmental Managers so as to make changes in
his plans.
Identify the different stages of planning process described in the paragraph
given above.
Quote the relevant lines to do so.

Q21.An auto company C Ltd. is facing a problem of declining market share due
to increased competition from other new and existing players in the market. Its
competitors are introducing lower priced models for mass consumers who are
price sensitive. C Ltd. realized that it needs to take steps immediately to
improve its market standing in the future. For quality conscious consumers, C
Limited plans to introduce new models with added features and new
technological advancements. The company has formed a team with
representatives from all the levels of management. This team will brainstorm
and will determine the steps that will be adopted by the organisation for
implementing the above strategy.
Explain the features of Planning hishlichted in the situation given ABOVE