principles of management case study with solution

Case Studies - Principles of Management | Business Studies (BST) Class 12 - Commerce PDF Download

Q. 1. In your school, you observe that books are kept in office, chalks in the library and office records in the staff room.

• Which principle of management is violated here and why?
• How will that affect the achievement of school objectives?
• As a manager, what steps will you take to rectify the shortcomings?           (3 marks)
• Disparate storage of resources violates "Unity of Direction" principle.
• Breeds inefficiency: Staff waste time searching for materials, reducing productivity.
• Increases mismanagement risk: Resources may be misplaced or lost, disrupting school operations.
• Creates coordination challenges: Departments struggle to implement cohesive strategies.
• Solutions: Centralize resource management; designate storage areas; implement inventory control.
• Train staff on proper resource handling.
• Foster collaboration among departments.
• Benefits: Enhances efficiency, minimizes mismanagement risks, promotes unified direction towards achieving school objectives.

Q. 2. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day.  But he did not give him the authority of requisition tools and materials from the stores department.  Can the production manger blame the foreman if he is not able to achieve the desired target?  Explain briefly the principle relating to the situation.               (3 marks)

Ans.  No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and materials form the stores department.  Since he has no authority, he could not fulfill his responsibility.

In this case the principle of ‘Authority and Responsibility’ is violated.  Fayol suggested tht there must be a balance between authority and responsibility.  Authority and responsibility must go hand in hand.  Responsibility without adequate authority will make the subordinate ineffective, I.e., he will not be able to perform his duties properly.  At the same time giving authority without fixing responsibility may lead to misuse of of authority.

Q. 3. S oniya Ltd. was engaged in the business of manufacturing auto components.  Lately, its business was expanding due to increased demand for cars.  The competition was also increasing.  In order to keep its market share intact, the company directed its workforce to work overtime.  But this resulted in many problems.

Due to increased pressure of work the efficiency of workers declined.  Sometimes, the subordinates had to work for more than one superiors.  The workers were becoming indisciplined.  The spirit of teamwork, which had characterized the company previously, had begun to wane.

Identify any three principles of management (as given by Henry Fayol) which were begin violated, quoting the lines from the above case.             (3 marks)

Ans.  Three principles of management by Henry Fayol that were being violated in the case of Soniya Ltd.:

Unity of Command : "Sometimes, the subordinates had to work for more than one superiors."

• This violates the principle of unity of command, which states that an employee should receive orders from only one superior to avoid confusion and conflicting instructions.

Division of Work : "Due to increased pressure of work the efficiency of workers declined."

• The increased workload and pressure on workers suggest a lack of effective division of work, leading to decreased efficiency and productivity.

Esprit de Corps (Spirit of Teamwork) : "The spirit of teamwork, which had characterized the company previously, had begun to wane."

• This indicates a decline in the spirit of teamwork among employees, which violates the principle of esprit de corps. This principle emphasizes the importance of fostering harmony and unity among workers to achieve common objectives.

Q. 4. The production manager of Harsh Ltd. instructs a salesman to go slow in selling the product, where the marketing manager is insisting on fast selling to achieve the target.  Which principle of management is being violated in this case?                           (1 mark)

Ans.  Unity of command

Q. 5. Kanika and Priyanka are typists in a company having same educational qualifications.  Kanika is getting Rs. 16000 per month and Priyanka Rs. 10000 per month as salary for the same working hours.  Which principle of management is violated in this case.  (1 mark)

Ans.  Principle of equity

Q. 6. Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other departments.  Which principle of management is being overlooked?                    (1 mark)

Ans.  Principle of Scalar Chain.

Q. 7. The management and workers have entered into an agreement that workers will do overtime to cover up looses of the company.  In return, the manager will increase the wages.  But management later refused to increase the wages.  Name the principle violated in this situation.             (1 mark)

Ans.  Principle of discipline

Q. 8. In Simran Ltd., an employee has the objective of maximizing his salary, but the organizational objective is to maximize output at competitive cost.  There was some dispute on this for a while.  Eventually, the organization’s interest was given priority over employees’ interest.  Name the principle related to this situation.                                       (1 marks)

Ans.  Principle of subordination of individual interest to general interest.

Q. 9. Radhika opens a jewelry showroom in Jaipur after completing a course in jewelry designing.  She has employed eleven persons in her showroom.  For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.  The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to given any further discount rests with Radhika as the final authority.  In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work.  In return she had promised to give them a special incentive within a year.  Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment.  However, when it comes to setting the conflicts among her employees, she tends to b e more biased towards her female employees.

In context of the above case:

• Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
• Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
• State any one effect of the violation of the principle of management by Radhika as identified in part (b) of the question.
• The various principles of management that are being applied by Radhika are listed below:
• Principle of Division of work:

“For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialized job.”

• Principle of Centralization and Decentralization:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.”

• Principle of Discipline:

“Therefore, after six months when the business was doing well, she awarded a each bonus to each of these employees to honour her commitment.”

• The principle of management which is being violated by Radhika is Equity.

“However, when it comes to setting the conflicts among her employees, she tends to be more biased towards her female employees.”

• One effect of the violation of the Principle of Equity is that it may lead to job dissatisfaction among the male workers.

Q. 10. Neeraj is selected for the post of software developer in an IT Company.  On the first day of his joining Mehul, his project manager tells Neeraj that during the course of his work he will come across many such opportunities which may temp him to misuse his powers for individual or family’s benefit at the cost of larger general interest of the company.  In such situations, he should rather exhibit exemplary behavior as it will raise his stature in the eyes of the company.  Also, for interacting with anyone in the company on official matters, he should adopt the formal chain of authority and communication.

• Identify and explain the various principles of management that Mehul is advising Neeraj to follow while doing his job.
• List any two values that Mehul wants to communicate to Neraj.
• Subordination of Individual Interest to General Interest:
• Scalar Chain:
• Self restraint

Q. 11. Davinder is a class twelfth commerce student in a reputed school in Punjab.  Satinder is his elder brother who is doing his Masters in Hospital administration from Delhi after completing his B. Sc course.  During vacations when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic ‘Principles of Management’.  Satinder tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice.  But he finds these principle different from those of pure science.

• Outline the concept of principles of management.
• Why does Satinder find the principle of management different from those of pure science?
• Why do the principles of management form the core of management in practice?

Explain by giving any two points highlighting the importance of principles of management.

• The principles of management serve as a broad and general guideline for the managerial decision making and action.
• Satinder finds the principles of management different from those of pure science because the management principles are not as rigit as principles of pure science.  This is due to the fact that they deal with the human behavior and thus, need to be applied creatively in the light of given situation.
• The importance of principles of management is described below:
• Providing managers with useful insights into reality:
• Optimum utilization of resources and effective administration:

Q. 12. Nutan Tiffin Box service was started in Mumbai by Mumbai dabbawalas.  The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at right time and place.  The service is uninterrupted even on the days of bad weather, political unrest and social disturbances.  Recently they have started online booking system through their website’ mydabbawals.com’.  owing to their tremendous popularity amongst the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business schools.  The Dabbawals operate in a group of 25-30 people along with a group pleader.  Each group teams up with other groups in order to deliver the tiffin on time.  They are not transferred on frequent basis as they have to remember the addresses of their customers.  They follow certain rules while doing trade-No alcohol during working hours; No leave without permission; Wearing of white cap & carrying ID cards during business hours.

Recently on the suggestion of a few self motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children.  They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later.

• State any one principle of management given by Fayol & one characteristic of management mentioned in the above case.
• Given any two values which the Dabbawalas want to communicate to the society.

Ans.   One principle of management given by Fayol that can be observed in the case of Mumbai dabbawalas is "Unity of Command." This principle states that an employee should receive orders from only one superior to avoid confusion and conflict. In the case of dabbawalas, each group operates under the leadership of a group leader (group pleader), ensuring clear direction and accountability within the group.

One characteristic of management mentioned in the above case is "Adaptability." Despite facing various challenges such as bad weather, political unrest, and social disturbances, the dabbawalas continue to provide uninterrupted service by adapting their strategies and operations to overcome these obstacles.

Two values that the Dabbawalas want to communicate to society are:

1. Social Responsibility : By implementing a plan to feed slum children with leftover food from customers' tiffins, the dabbawalas demonstrate their commitment to addressing social issues and contributing to the welfare of the less fortunate in society.

2. Reliability : The dabbawalas' consistent and efficient delivery service, even in adverse conditions, reflects their value of reliability. They strive to provide prompt and dependable service to their customers, earning their trust and satisfaction.

Q. 13. ‘Aapka vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities.  On its founders day a stage performance had to be put up.  A committee of ten prefects was constituted to plan different aspect of the function.  They all decided to use recycled paper for decoration.  There was a spirit of unit and harmony and all members supported each other.  With mutual trust and belongingness the programme was systematically planned and executed.  Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning and executing the programme.  He was so inspired by the success of the function that he asked his father to apply to same principle in his business.  His father replied that he was already using this principle.

• Identify the principle of management applied for the success of the programme.
• State any two features of management highlighted in the above para.
• Identify any two values which ‘Aapka Vidyalaya’ communicated to the society.

Ans.  The principle of management applied for the success of the program is "Unity of Purpose" or "Unity of Objective." This principle emphasizes the importance of aligning individual and group efforts towards the achievement of common goals.

Two features of management highlighted in the paragraph are:

Teamwork : The committee of prefects demonstrates effective teamwork by collaborating to plan and execute the function. There is a spirit of unity and harmony among the members, and they support each other to achieve their goals.

Systematic Planning and Execution : The program is systematically planned and executed by the committee of prefects. They use recycled paper for decoration, indicating a thoughtful and environmentally conscious approach to organizing the event.

Two values communicated to society by 'Aapka Vidyalaya' are:

Environmental Responsibility : By choosing to use recycled paper for decoration, 'Aapka Vidyalaya' demonstrates its commitment to environmental sustainability and responsibility. This value promotes awareness and action towards protecting the environment.

Holistic Development : 'Aapka Vidyalaya' emphasizes holistic development by encouraging a mix of curricular, co-curricular, and sports activities. This value reflects a commitment to nurturing students' overall growth and well-being, beyond academic achievements alone.

Q. 14. Nikita and Salman completed the MBA and started working in a multinational company at the same level. Both are working hard and are happy with their employer.  Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss.  All the employees in the organization knew about it.  At the time of performance appraisal the performance of Nikita was judged better than Salman.  Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of a higher post.

• Identify and explain the principle of management which was not followed by this multinational company.
• Identify the values which are being ignored quoting the liens the above para.               (5 marks)

Ans.  The principle of management that was not followed by this multinational company is "Impartiality" or "Fairness." This principle emphasizes that decisions and actions should be fair and unbiased, without favoritism or discrimination.

In this scenario, the boss, Mohammed Sharif, decided to promote Salman over Nikita despite Nikita's better performance. The reason cited for promoting Salman, based on gender stereotypes, indicates a lack of impartiality and fairness in the decision-making process. By allowing Salman's negative behavior to influence the promotion decision and discriminating against Nikita based on her gender, the company fails to uphold the principle of impartiality.

The values being ignored in this scenario are:

Fairness and Equality : The company's decision to promote Salman over Nikita based on gender stereotypes disregards the principles of fairness and equality. Nikita's better performance should have been the sole criterion for promotion, irrespective of her gender.

Integrity and Ethical Conduct : Salman's habit of backbiting and wrong reporting about his colleagues indicates a lack of integrity and ethical conduct. By promoting him despite his negative behavior, the company sends a message that unethical conduct is tolerated and even rewarded, undermining the values of integrity and ethical behavior in the workplace.

Q. 15.  Sigma Ltd. is a large company manufacturing electric motors.  The company has several departments – Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company set the target sale of 10 crore in a month.  To increase the sales, the marketing manager, Mr. Ishaan insists on offering 10% discount to customers.  But the finance manager, Mr. Mohak does not approve such discount as it would mean loss of revenue.  Because of dual subordination, the sales manager, Mr. Anshik could not achieve the sales target.

• Which concept of management Sigman Ltd. is lacking?  State it.
• Which principle of management has been overlooked by this company?   State it.
• Which principle of management has been overlooked by this company?  State it.           (6 marks)
• The company is lacking ‘ Coordination ’.

It is the process by which the activities of different departments are synchronized to ensure unity of action.

    2. Concept: Unity of Command

In Sigma Ltd., the absence of "Unity of Command" leads to dual subordination for the sales manager, Mr. Anshik.

Mr. Anshik faces conflicting directives from the marketing manager, Mr. Ishaan, who advocates for offering discounts to boost sales, and the finance manager, Mr. Mohak, who opposes the idea due to potential revenue loss.

This dual subordination hampers Mr. Anshik's ability to effectively achieve the sales target set by the CEO, Mr. Shashank, as he receives contradictory instructions from multiple superiors.

   3. Principle: Unity of Direction

In addition to lacking "Unity of Command," Sigma Ltd. also overlooks the principle of "Unity of Direction."

This principle emphasizes the importance of aligning all activities within the organization towards a common goal or objective.

While the CEO has set a sales target of 10 crore in a month, the conflicting opinions between the marketing manager and the finance manager regarding offering discounts create disunity in direction.

The marketing manager's proposal to offer discounts to increase sales conflicts with the finance manager's concern about potential revenue loss, resulting in a lack of alignment in efforts towards achieving the sales target.

This lack of unity in direction hampers the company's ability to effectively coordinate its actions and resources towards the common goal of achieving the sales target.

Q. 16. ABC Ltd. is engaged in producing electricity from domestic garbage.  There is almost equal division of work and responsibility between workers and management.  The management even takes workers into confidence before taking important decisions.

All the workers are satisfied as the behavior of the management is very good.

• State the principle of management described in the above para.
• Identify any two values which the company wants to communicate to the society.             (3 marks)
• The principle of Taylor described in the above para is Cooperation, Not Individualism.

Values communicated to society by ABC Ltd.:

Employee Empowerment : ABC Ltd. values and promotes employee empowerment by involving workers in decision-making processes and sharing responsibilities equally between workers and management. This communicates a commitment to fostering a sense of ownership and involvement among employees, empowering them to contribute meaningfully to the company's success.

Good Governance and Transparency : The company emphasizes good governance and transparency by taking workers into confidence before making important decisions. This demonstrates a commitment to open communication, trust, and fairness in organizational practices, thereby promoting transparency and accountability in its operations.

Q. 17. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running under heavy losses.

To revive from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost.  The management also asked the workers to work overtime without any additional payment and promised to increased to wages of the workers after achieving its mission.  Within a short period the company started earning profits because both the management and the workers honoured their commitments.

• Identify any two values that the company wants to communicate to the society.           (3 marks)
• The principle of management described in the above para is Discipline.

Discipline is the obedience to organizational rules and employment agreement which are necessary for the working of the organization.

    2. Values communicated to society by Voltech India Ltd.:

Fairness and Social Responsibility : The company demonstrates a commitment to fairness and social responsibility by promising to increase wages for workers after achieving its mission. Despite asking workers to work overtime without additional payment initially, the company fulfills its commitment to reward their efforts once profitability is restored. This communicates a sense of fairness and social responsibility towards its employees, ensuring they are fairly compensated for their contributions.

Ethical Conduct and Integrity : Voltech India Ltd. upholds ethical conduct and integrity by honoring its commitments to both management and workers. The decision to shift the unit to a backward area where labor is available at a low cost may raise questions about ethical labor practices. However, by promising to increase wages after achieving profitability and delivering on that promise, the company demonstrates integrity and ethical conduct, ensuring transparency and trust in its dealings with both management and workers.

Q. 18. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without paying any interest to the organizational objectives.

• Which aspect of management the company is lacking?  What will be its impact on the organization?
• Identify the principle of management which has been overlooked by this organization.
• State any two values neglected by the people of this organization.   (5 marks)

Ans.   Aspect of Management Lacking: Coordination

Impact on the Organization: The lack of coordination among departments in setting their own objectives without aligning them with organizational objectives can lead to inefficiency, duplication of efforts, conflicts, and ultimately hinder the achievement of overall organizational goals. Departments may pursue their own agendas, resulting in disjointed efforts, wasted resources, and decreased overall performance of the organization.

Principle of Management Overlooked: Unity of Direction

Values Neglected by the People of the Organization:

Teamwork and Collaboration : The departments' focus on setting their own objectives without considering organizational goals neglects the value of teamwork and collaboration. Instead of working together towards common objectives, departments may operate in silos, hindering synergy and cooperation within the organization.

Organizational Vision and Mission : By disregarding organizational objectives in favor of departmental goals, the people of Kushal Ltd. neglect the value of aligning individual and departmental efforts with the organization's vision and mission. This lack of alignment can lead to a loss of focus on the overarching purpose and direction of the organization, resulting in fragmented efforts and diminished organizational effectiveness.

Q. 19. Telco Ltd. is manufacturing files and folders from old clothes to discourage use of plastic fields and folders.  For this, they employ people from nearby villages where very less job opportunities are available.  An employee, Harish, designed a plan for cost reduction but it was not welcomed by the production manager.  Another employee gave some suggestion for improvement in design, but it was also not appreciated by the production manager.

• Identify any two values that the company wants to communicate to the society. (3 marks)
• Initiative.  It means eagerness to initiate action without being asked to do so.
• Values which the company wants to communicate to the society are:
• Sensitivity towards the environment
• Creation of job opportunities
• Development of backward regions.

Q. 20. Khandelwal Ltd., a tyre manufacturing concern has been established for more than ten years.  Having made good profits in the past, company wanted to expand further and hence did not declare bonus for the previous year.  The workers got agitated and trade union declared strike and demanded bonus and other facilities.  The management decided not to give into their demands.

• Which principle of scientific management is overlooked in the given case?
• State any two values overlooked/ignored by the management in the above case.
• Harmony, not Discord
• Values overlooked are:
• Mutual understanding
• Peace and stability
• Law and Order
• Sense of belongingness  (any two)

Q. 21. Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging materials.  He proposes to adopt 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 plans to adopt paternalistic style of management in practice in order to avoid any kind of class-conflict that may emerge between him and the workers.  Moreover, he plans to seek the opinion of his workers before taking any important decisions and also offers incentives to them for providing valuable suggestions for the business.

• Identify and explain the various principle of scientific management that Hritik plans to apply in his business.
• List any two values that he wants to communicate to the society by offering eco-friendly packaging material.
• The various principle of scientific management that Hritik plans to apply in his business are described below:
• Science, not Rule of Thumb:
• Harmony, Not Discord:
• Cooperation, Not Individualism:
• The two values that Harit wants to communicate to the society by offering eco-friendly packaging material are:
• Concern for environment
• Sense of responsibility

Q. 22. Gaurika has been appointed as the chief organizer of a weeklong cultural event.  Being a staunch follower of scientific management, she decides to execute her work by putting into practice the various techniques of scientific management.  On the basis of several observations, she is able to determine that the standard time taken by the security officer at the gat to check the credentials of each visitor is 30 seconds.  So she decides to employ two persons on this job for every function along with the other necessary support staff.  She considers the fact that every day, the functions will take place in three shifts of four hours each, therefore it is important to give breaks to the support staff even in a single shift to take her/his lunch etc.  moreover, on introspection, she determines that the best way to distribute refreshment boxes to the visitors will be to hand it over to them at the exit gate as it would help to save time and eliminate any kind of confusion.

In the context of the above case:

• Identify and explain the various techniques of work study which have been put into practice by Gaurika.
• List any two values that Gaurika wants to communicate to the society.
• The various techniques of work study which have been put into practice by Gaurika are outlined below:
• Time Study:
• Fatigue Study:
• Method Study:
• The two values that Gaurika wants to communicate to the society are:
• Optimum utilization of resources
• Concern for employees

Q. 23. ‘Study Buddy Pvt.’ Is company dealing in stationery items. In order to establish standards of excellence and quality in materials and in the performance of men and machines, the company adheres to benchmarks during production.  Moreover, its products are available in limited varieties, sizes and dimensions thereby eliminating superfluous diversity of products.

Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’

Ans.   Technique of scientific management: Standardization

• Establishing benchmarks during production.
• Limiting varieties, sizes, and dimensions of products.
• Consistency in materials and performance.
• Quality control and excellence in production.
• Efficiency in operations.
• Enhanced quality and customer satisfaction.

Q. 24. Tina and Anshu completed their MBA and started working in a multinational company at the same level.  Both are working hard.  Anshu has the habit of backbiting and wrong reporting about his colleagues to impress the boss.  All the employees in the organization know about it.  At the time of performance appraisal also Tina’s performance was rated better than Anshu.  Even then their boss decided to promote Anshu stating that being a female, Tina will not be able to handle the complications of higher post.

• Identify and explain the principle of management that was not followed by this company.
• Identify the values being ignore.
• Company is violating the “Principle of Equity.”
• The values ignored are

                  1.   Gender equality

                  2. eward for performance

                  3. Good human behavior.

Q. 25. In one of his principles, Taylor suggested that job performance should be based on scientific enquiry and not on will/wish or personal intuition of manager?

• Name that principle.
• What values can be followed by using this principle?
• Principle of “Science not rule of thumb.”
• If manager is using this technique he can follow the value of objectivity it as when decisions are taken scientifically he cannot be biased.

Q. 26. The production department of Alpha Ltd. was not performing well on detailed analysis, it was observed that the workers of that department were overburdened.  They were forced to work for longer hours without any break.  So the management planned to replace the production manager.  They appointed Mr. Hari as the new Production Manager.  He observed the average worker and note down their times.  He noted down the time they worked and the time they required to be fresh to join back the work.  Based on this observation, he set the break intervals for workers. He gave small breaks to workers to recharge their energy.

• Name and explain the technique of scientific management used by Mr. Hari.
• State the value which Mr. Hari wants to communicate to the society by allowing rest intervals to workers.
• Fatigue study.
• Value of humanity/sympathy/respect towards employees.

Q. 27. In the staff meeting the principal of the school raised objection that teachers start the teacher after 5 to 10 minutes in third floor classes.  He warned them as students are complaining about this.  The teachers explained the principal that when we climb steps from ground to third floor.  We get some tiredness and need 5 to 10 minutes rest before starting the lecture.  The principal planned to install a lift in school so that teachers do not waste their energy on wasteful activity of climbing steps.

• State the techniques of scientific management used by principal.
• State any other technique of scientific management.
• “Technique of motion study.”
• Other two techniques:
• Functional foremanship
• Time study.

Q. 28. In a factory the toolbox was kept under the table of every worker, whenever worker needs tools he had to bend tape out tool from tool box and keep it back after use.  The newly appointed supervisor observed it and suggested to keep a stool near every worker’s chain where toolbox can he placed so that workers do not waste their energy in bending again and again.

• Which technique of scientific management is used by New Supervisor.
• State the objective of motion study.
• Motion study.
• The objective of motion study is to eliminate unproductive movements of workers.

Q. 29. Mr. Mukesh used to manufacture shoes by employing labour who were easily available.  When his son after completing his MBA joined the business, he analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.

• Which technique of Scientific management is used by his son.
• What is the objective of that technique.
• Method Study
• Finding the best way of doing thing.

Q. 30. Mr. Kapoor, Finance manager of ABC Ltd. applied for leave to attend a family function in Amritsar.  The director of the company  requested him to cancel his leave as there is an important meeting schedule on that date.  Mr. Kapoor immediately agreed and cancelled his trip as he thought attending meeting is more important for company’s benefit.

• Which principle of Fayol is applied by Mr. Kapoor?
• Explain that principle.
• Principle of subordination of individual interest to general interest.
• According to this principle, the interest of organization must supersede the interest of individuals or employees.  In the organization all the employees are working with some objective and there is always an objective of organization.

Q. 31. The manager of ABC Ltd. asked his workers to work overtime to increase the production and earn more but he did not paid extra wages to workers for extra time worked.  The workers started feeling dissatisfied and stop contributing maximum.

• Which principle of Fayol is violated in the above case.
• Explain that principles.
• Principle of Remuneration.
• According to this principle, the interest of organization must supersede the interest of individuals or employees.

Q. 32. Mr. Rajiv is the owner of ‘Laxmi Dairy.’  He is producing various milk products.  He always tests various ways of producing different products and chooses the best and most economical way of production.  He is also very particular about fixing a place for everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production.

• Which technique of scientific management is applied by Mr. Rajiv?
• Which principle of Henry Fayol is followed by him?
• Principle of order

Q. 33. Mr. Rajiv the senior manager of Unique enterprise considered himself very wise and used to take all the decisions himself without consulting the employees, he never used to help any one nor he used to take help of anyone.  The employees of unique enterprise were not working efficiently and company’s profit margin started declining to tackle the problem, the company appointed a new manager from IIM Bangalore.  The new manager after joining made a policy that all the decisions will be taken after consulting employees in the meeting.  All employees must give some suggestions and best suggestions will be rewarded with financial and nonfinancial incentives.  This policy had a very positive effects on company.

• State the principle of Hencry Fayol used by new manager.
• State the technique of scientific management related to above case.
• Principle of initiative.
• “Cooperation not individualism.”

Q. 34. In a school principal makes sure that every instruction, order or information given by him must be passed to vice-principal then Head of the department and then to teachers and students must be informed by respective teachers only.  He never allows teachers to directly communicate with him.

• Stat the Principle of Henry Fayol followed by the school principal.
• In case of emergency which concept of Scalar Chain can be used by teacher to pass urgent message directly to principal.
• Scalar Chain.
• Gang-plank.

Q. 35. Pawan is working as a Production Manager in CFL Ltd. which manufactures CFL bulbs.  There is no class-conflict between the management and workers.  The working conditions are very good.  The company is earning huge profits.  As a policy, the management shares the profits earned with the workers because they believe in the prosperity of the employees.

• State the principle of management described in the above paragraph.
• Identify any two values which the company wants to communicate to society.
• The principle of management described in the above paragraph is ‘Harmony, not discord’.
• The two values that the company wants to communicate to the society are:

Q. 36. The principles of Taylor and Fayol are mutually complementary.  On believed that management should share the gains with the workers while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living.

Identify and explain the principles of Fayol and Taylor referred to in the above paragraph.

The principles of Fayol and Taylor referred to in the above paragraph are ‘Remuneration of employees’ and ‘Harmony, Not Discord’.

• Remuneration of Employees:
• Harmony, not Discord:

Q. 37. The principles of Taylor and Fayol are mutually complementary.  One believed that management should not close its ears to constructive suggestions made by the employees while the other suggested that a good company should have an employee suggestion system whereby suggestions which result in substantial time or cost reduction should be rewarded.

Identify and explain the principles of Taylor and Fayol referred to in the above paragraph.

Ans.  The principles of Fayol and Taylor referred to in the above paragraph respectively are ‘Initiative’ and ‘Cooperation and Not Individualism’.

• Initiative:
• Cooperation and Not Individualism:

Q. 38. Hina and Harish are typists in a company having the same educational qualifications.  Hina gets Rs. 3,000 per month and Harish gets Rs. 4,000 per month as salaries for the same working hours.  Which principle of management is being violated in this case?  Name and explain the principle.

Ans.  The principle of Equity has been violated in this case.  It emphasizes kindliness and justice in the behavior of managers towards workers.  No discrimination should be made by them on the basis of caste, creed, gender or otherwise.

Q. 39. Rajveer works as a plant superintendent in a carpet making factory.  In order to complete the export orders on time, the production manager asks him to make the workers work over time whereas the finance manager is strictly against this practice because it will increase the cost of production.  Moreover, Rajveer feels that since the company is manufacturing handmade carpets as well as machine made carpets there is a lot of overlapping of activities.  Therefore, there should be two separate divisions for both of them wherein each division should have its own in charge, plans and execution resources.

• Identify and explain the principle of management which is being violated.
• Also identify the principle of management that Rajveer feels should be implemented in the factory.
• Give any two differences between the principle of management as identified in part (a) and part (b) respectively.

The principle of management which is being violated in stated below:

• Unity of command:
• Unity of direction:
• The difference between the principle of Unity of Command and Unity of Direction is given below:

Q. 40. Gurpreet is running a retail mart in Varansi to provide various types of products of daily use under one roof to the buyers.  The employee turnover in his business is very high and he is perpetually on a look out for new staff.  The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis without letting them settle down in a specific work.  This approach of his creates a sense of insecurity among the employees and they tend to leave the job very quickly.  However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.

• Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually ona look out for new staff.
• “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.”  Name and explain the relevant principle of management will have been brought into effect by Gurpreet.
• Stability of Personnel;

Also Check at EduRev:   Chapter Notes - Principles Of Management   Learn Principles of the Scientific Management: Overview  

Q. 41. After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail company through the reference of her cousin Taruna who works in the same company as a Senior Manager.  Taruna decides to guide Tanya through her experience by making her aware of the important facts about management in practice.  She tells her that neither the principles of management provide any readymade, straitjacket solutions to all managerial problems nor they are not rigid prescriptions, which have to be followed absolutely.

• Identify the two features of principles of management mentioned in the above paragraph by quoting lines from the paragraph.
• Why do the principles of management not provide readymade, straitjacket solutions to all managerial problems?
• The two features of principles of management mentioned in the above paragraph are as follows:
• General guidelines:
• As the real business situations are very complex and dynamic and are a result of many factors, the principles of management not provide readymade, straitjacket solutions to all managerial problems.

Q. 42. Raj and Simran are both qualified eye surgeons and good friends.  After obtaining a certificate of practice, they decide to persue a career of their own choice.  Raj starts an eye care centre in the city whereas Simran joins a government hospital in a small village.  They meet after a long time in a party.  Raj invites Simran to visit his eye care centre and she accepts his invitation.  She observes at his clinic that there is a fixed place for everything and everyone and it is present there so that there is no hinderance in the activities of the clinic.  Also, Raj always tends to replace ‘I’ will ‘We’ in all his conversations with the staff members.  Later on Raj shares with her that he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.

• Identify and explain the various principles of management that Raj is applying for the successful management of his eye care centre.
• List any two values that Simran wants to communicate to the society by taking up a job in a village.
• Spirit de Corps:
• Concern for poor

Q. 43. Anshul owns a small scale factory where utility items are prepared from waste material like paper mache items, paper and cloth bags, decorative material etc.  over the past few weeks, he was observing that the productivity of one of his very efficient worker, Ramdas, is going down.  So he decides to probe into the matter and confronts Ramdas one day.  On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient when everybody is being paid at the same rate.  Taking a lesson from this insight, Anshul decides to implement an incentive bonus plan so as differentiate between efficient and inefficient workers.

• Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers.
• State any two values that Anshul wants to communicate to the society by setting up a special type of business.

Differential Piece wage System is the incentive bonus plan that Ashul may implement so as differentiate between efficient and inefficient workers.

Q. 44. Swaraj is running an office furniture showroom.  Most of his clients are businessmen and they prefer to buy goods on credit.  Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days, while negotiating a deal with a buyer.  On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalize a highly profitable deal for the business.  So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering a credit period of 30 days in the interest of the business.  But swaraj refuses to extend his authority and as a result, the deal is not finalized.

• Can Mr. Bhardwaj be held responsible for loss of the deal?  Why or why not?  Give a suitable reason in support of your answer.
• Also, explain the related principle.
• No, Mr. Bhardwaj cannot be held responsible for loss of the deal in the above case as he was not given the necessary authority to carry out his responsibility.  There is an imbalance in authority and responsibility.
• The name of the related principle is Authority and Responsibility.

Get an overview of Business Finance through this  video. Find NCERT Solutions of Financial Management  here .  

Top Courses for Commerce

Faqs on case studies - principles of management - business studies (bst) class 12 - commerce.

past year papers

Study material, video lectures, objective type questions, mock tests for examination, practice quizzes, case studies - principles of management | business studies (bst) class 12 - commerce, sample paper, semester notes, viva questions, shortcuts and tricks, previous year questions with solutions, important questions, extra questions.

Case Studies - Principles of Management Free PDF Download

Importance of case studies - principles of management, case studies - principles of management notes, case studies - principles of management commerce questions, study case studies - principles of management on the app.

Welcome Back

Create your account for free.

Forgot Password

Change country.

• All Headlines

Top 40 Most Popular Case Studies of 2021

Two cases about Hertz claimed top spots in 2021's Top 40 Most Popular Case Studies

Two cases on the uses of debt and equity at Hertz claimed top spots in the CRDT’s (Case Research and Development Team) 2021 top 40 review of cases.

Hertz (A) took the top spot. The case details the financial structure of the rental car company through the end of 2019. Hertz (B), which ranked third in CRDT’s list, describes the company’s struggles during the early part of the COVID pandemic and its eventual need to enter Chapter 11 bankruptcy. 

The success of the Hertz cases was unprecedented for the top 40 list. Usually, cases take a number of years to gain popularity, but the Hertz cases claimed top spots in their first year of release. Hertz (A) also became the first ‘cooked’ case to top the annual review, as all of the other winners had been web-based ‘raw’ cases.

Besides introducing students to the complicated financing required to maintain an enormous fleet of cars, the Hertz cases also expanded the diversity of case protagonists. Kathyrn Marinello was the CEO of Hertz during this period and the CFO, Jamere Jackson is black.

Sandwiched between the two Hertz cases, Coffee 2016, a perennial best seller, finished second. “Glory, Glory, Man United!” a case about an English football team’s IPO made a surprise move to number four.  Cases on search fund boards, the future of malls,  Norway’s Sovereign Wealth fund, Prodigy Finance, the Mayo Clinic, and Cadbury rounded out the top ten.

Other year-end data for 2021 showed:

• Online “raw” case usage remained steady as compared to 2020 with over 35K users from 170 countries and all 50 U.S. states interacting with 196 cases.
• Fifty four percent of raw case users came from outside the U.S..
• The Yale School of Management (SOM) case study directory pages received over 160K page views from 177 countries with approximately a third originating in India followed by the U.S. and the Philippines.
• Twenty-six of the cases in the list are raw cases.
• A third of the cases feature a woman protagonist.
• Orders for Yale SOM case studies increased by almost 50% compared to 2020.
• The top 40 cases were supervised by 19 different Yale SOM faculty members, several supervising multiple cases.

CRDT compiled the Top 40 list by combining data from its case store, Google Analytics, and other measures of interest and adoption.

All of this year’s Top 40 cases are available for purchase from the Yale Management Media store .

And the Top 40 cases studies of 2021 are:

1.   Hertz Global Holdings (A): Uses of Debt and Equity

2.   Coffee 2016

3.   Hertz Global Holdings (B): Uses of Debt and Equity 2020

4.   Glory, Glory Man United!

5.   Search Fund Company Boards: How CEOs Can Build Boards to Help Them Thrive

6.   The Future of Malls: Was Decline Inevitable?

7.   Strategy for Norway's Pension Fund Global

8.   Prodigy Finance

9.   Design at Mayo

10. Cadbury

11. City Hospital Emergency Room

13. Volkswagen

14. Marina Bay Sands

15. Shake Shack IPO

16. Mastercard

17. Netflix

18. Ant Financial

19. AXA: Creating the New CR Metrics

20. IBM Corporate Service Corps

21. Business Leadership in South Africa's 1994 Reforms

22. Alternative Meat Industry

23. Children's Premier

24. Khalil Tawil and Umi (A)

25. Palm Oil 2016

26. Teach For All: Designing a Global Network

27. What's Next? Search Fund Entrepreneurs Reflect on Life After Exit

28. Searching for a Search Fund Structure: A Student Takes a Tour of Various Options

30. Project Sammaan

31. Commonfund ESG

32. Polaroid

33. Connecticut Green Bank 2018: After the Raid

34. FieldFresh Foods

35. The Alibaba Group

36. 360 State Street: Real Options

37. Herman Miller

38. AgBiome

39. Nathan Cummings Foundation

40. Toyota 2010

• For educators
• English (US)
• English (India)
• English (UK)
• Greek Alphabet

This problem has been solved!

You'll get a detailed solution from a subject matter expert that helps you learn core concepts.

Question: PMBA2: PRINCIPLES OF MANAGEMENT 002: CASE STUDY The president of Simplex Mills sat at his desk in the hushed atmosphere, so typical of business offices, after the close of working hours. He was thinking about Rehman, the manager in-charge of purchasing, and his ability to work with Taylor, the production manager, and Christopher, the marketing and sales

Not the question you’re looking for?

Post any question and get expert help quickly.

Case Studies- Principles of Management

CASE STUDIES- PRINCIPLES OF MANAGEMENT

This case study is hand picked original case study. It is created keeping in mind CBSE 10+2 CBSE Students. Many students get benifit out of it. You will find these in form of simple questions and answers.

Q1: Anshul a commerce student visited a hospital . He observed that in hospital to treat different type of disease there is a separate department and each department is lead by dean of that respective department who is expert in that particular field having knowledge , training and experience of that particular area only. He could relate it to one of the principle of management. Identify and explain.

Q2; Harshita , a sales manager has to negotiate a deal with a buyer. She finds that if she can offer credit period of 60 days she is likely to clinch the deal which is supposed to fetch the company a net margin of Rs. !,00,000 . Now the company gives power to the manager to offer a credit period of 40 days due to which she could not get the deal. Identify the principle of management violated above.

Q3; In Ashu limited Management and labour union entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished But afterwards management refused to fulfill its commitment. Identify the principle of management violated by the management of Ashu Ltd. .

Q4; Akshit a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by marketing manager. But finance department tells him not to offer more than 5% discount. Due to which Akshit is confused. Which principle of management is violated?  Identify.

Q5; Stuti Industries is engaged in manufacturing Cars and Motorbikes. It has two separate departments for both the products. Each department has its own Incharge , plans and execution resources which leads to focused efforts of all the employees. Identify the principle of management followed by Stuti Industries.

Q6;  Udhay is working as Plant superintendent in Tanish Industries. But he is given a salary of a clerk as his compensation.  Which act as a demotivator for udhay and he does not feel like working whole heartedly for the company. Identify the principle of management violated in Tanish Limited.

Q7; Amita and Shamita are working as  typist in Ashiana Ltd. . But Amita is paid salary of Rs. 4,000 pm and Shamita is apid salary of Rs. 5,000 pm. After knowing this Amita got discouraged and started thinking of shifting the job. Which principle of Fayol is violated in above case?

Q8; Rajeev joined Anamika Ltd. As training manager . After joining he observed that employees are lacking the feeling of belongingness with the organization. To encourage the feeling of beloningingness and self motivation he decided to apply one of the principle of fayol and started employee suggestion system whereby employees are encouraged to give suggestion and whereby suggestions which result in substantial cost/ time reductions will be rewarded. Identify the principle.

Q9; In Tanya Ltd, there is discord among all the employees due which objectives are not realized and there  is no coordination among employees . there is no mutual trust and belongingness among employees . So managers have to apply penalities on employees which further increases the inefficiency. What do you is wrong with above organization . Give your answer in respect to Principle of Fayol.

Q10; In Ayesha Ltd. Losses are pouring in. So for their rescue Vishal CEO of the company decided to  hire  Aryan the cost control expert at higher salary . Maximum of the directors opposed the decision of hiring  Aryan in company’s crisis period when company is already going into losses. After taking charge of the Job Aryan advised the company to eliminate superfluous varities , sizes and dimensions . because these are the reason for undue high cost Expenditures . Which concept of principle of management is applied above.

Q11; In Model Motor Company For designing a car the assembly line production is entailed which decided the sequence od operations, place for men, machines and raw material etc. This exercise helped in minimizing the cost of production and maximize the quality of products. Identify the concept in relation to scientific management in the above case which is the reason for minimizing cost.

Q12;  On the basis of several observations it is determined that one worker can make one cardboard in 2o minutes. So in one hour he will make 3 boxes. Assuming that a worker has to put in 8 hours of work in a shift and deducting    one hour for rest and lunch, it is determined that in 7 hours a worker makes 21 boxes @ 3 boxes per hour. Now this is the standard  task workers have to do . Wages are decided accordingly. The base of above technique is one of the technique of F.W. Taylor. Identify that technique.

Q13; It si determined that standard output per worker per day is 10 units and those who made standard or mopre than standard will get Rs. 50 per unit and those below will get Rs. 40 per unit. Now an efficient worker making 11 units will get Rs. 11x 50= Rs. 550 per day whereas a worker who produces 9 units will get 9×40= Rs. 360 per day. This example is concerned with one of the technique of scientific management whose objective  is to encourage the inefficient workers to work harder. KIdentify the gtechnique.

• ← Numerical of Mid Point Circle Algorithm
• Case Study-Directing →

We have disabled - Right- Click - How about stay to read :)

NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12

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

September 30, 2019 by Sastry CBSE

1. How is the Principle of ‘Unity of Command’ useful to management? Explain briefly. Ans:  Principle of Unity of Command implies that each and every subordinate should have one and only one boss. Orders and instructions should come from only one head. This helps the working of any organisation in the following manner (i) Authority responsibility relationship is clearly defined. (ii) Subordinates are known for whom they are accountable. (iii) Discipline and order is maintained.

2. Define scientific management. State any three of its principles. Ans: Scientific management can be defined as knowing exactly what you want from men to do and seeing that they do it in the best and cheapest way. Scientific management aims at choosing the best. Method to get the maximum output from the workers the principles of scientific management are mainly applicable to the shop-floor level. Three principles of scientific management are as follows (i) Science, Not Rule of Thumb When different managers use their own different methods to get the work done it is rule of thumb. Taylor believed that there was only one best method to maximise efficiency. Taylor advised that every organisation should compare the results of different methods, test them again and again and finally select one best method of getting the work done. (ii) Harmony, Not Discord Managers are an extension of the management and serve as a link between workers and the owners. Workers have to take instructions from the managers and managers have to get the work done through the workers. Oftentimes the relation between them is spoilt which is very harmful for everyone-workers, managers and owners. This class conflict should be replaced by harmony between the two. Both should change their thinking towards each other. Both should give importance to each other. This is known as mental revolution. (iii) Co-operation, Not Individualism There should be complete co-operation between the labour and the management instead of individualism. This principle is an extension of the principle of ‘Harmony not discord.’ The management and the workers should not compete with each other rather co-operate with each other. Management should consider all good suggestions made by the employees which can help in cost reduction. At the same time, workers should never think of going or stickes in order to get their unreasonable demands fulfilled.

3. If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it? Ans: The principle of order is violated if an organisation does not provide the right place for physical and human resources. If this principle is violated then (i) Lots of time will be wasted in locating the different resources. (ii) This will lead to delayed decisions. (iii) Wastage of energy which will lead to in efficiency and delay in production. (iv) Causes hindrance in the activities of business.

4. Explain any four points regarding significance of Principles of management. Ans: Significance of principles of management (i) Providing Managers with Useful Insights into Reality  When managers follow principles it adds to their knowledge, ability and understanding of managerial situations and circumstances. This improves managerial efficiency e.g., when managers use principle of delegation then they get more time to concentrate on critical areas of working. (ii) Scientific Decision Making  management principles help in thoughtful decision making. They emphasise on logic rather than blind faith. Here, decisions are based on the objective assessment of the situation. (iii) Optimum Utilisation of Resources and Effective Administration  Principles help the managers to conceptualise the net effect of their decision rather than going for trial and error method resulting in saved time, efforts and energy thereby increased productivity. (iv) Management Training, Education and Research  Principles of management are the base for management theory. As such they are used as a basis for management training, education and research. These principles provide basic groundwork for the development of management as a subject. Professional courses like BBA, MBA also teaches these principles as part of their curriculum.

Long Answer Questions

1. Explain the principles of scientific management given by Taylor. Ans:  Principles of scientific management are given by FW Taylor (i) Science, Not Rule of Thumb  When different managers use their own different methods to get the work done it is rule of thumb. Taylor believed that there was only one best method maximise efficiency. Taylor advised that every organisation should compare the results of different methods, test them again and again and finally select one best method of getting the work done. (ii) Harmony, Not Discord  Managers are an extension of the management and serve as a link between workers and the owners. Workers have to take the instructions from the managers and managers have to get the work done through the workers. Sometime the relation between them is spoilt, which is very harmful for everyone-workers, managers and owners. This class conflict should be replaced by harmony between the two. Both should change their thinking towards each other. This is known as mental revolution. (iii) Co-operation, Not Individualism  There should be complete co-operation between the labour and the management instead of individualism. This principle is an extension of principle of harmony, not discord. The management and the workers should not compete with each other rather co-operate with each other. Management should consider all good suggestions made by the employees which can help in cost reduction. At the same time workers should never think of going on strikes in order to get their unreasonable demands fulfilled. (iv) Development of Each and Every person to His or her Greatest Efficiency and Prosperity Scientific management also stood for worker development. Taylor believed that workers should be aware of the ‘best method’. On the other hand, all organisations should select employee carefully in order to get maximum efficiency. When the duties are allotted, perfect match should be made between the requirements of the job and the capabilities of the worker. Training should be provided to improve the skills further. In this way, efficiency will go higher resulting in prosperity for both workers and company.

2. Explain the following principles of management given by Fayol with examples. (a) Unity of direction (b) Equity (c) Espirit de Corps (d) Order (e) Centralisation and decentralisation (f) Initiative

Ans: Fayol introduced general principles of management. Some of them have been explained below (a) Unity of Direction All the units of an organisation should be moving towards the same objective. Each group of activities having the same objective must have one head and one plan. Each group should have its own incharge and on no account the working of two divisions neither be overlaped. (b) Equity This principle emphasise kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Lazy personnel should be dealt sternly and strictly. There should be no discrimination against anyone on account of gender, religion, caste, language or nationality etc. All decisions should be merit based. (c) Espirit de Corps This principle emphasises on building harmony and team spirit among employees. In a large organisation due to a large work force teamwork is very important. Teamwork leads to better co-ordination while working. The head of each team should give credit of good result to the whole team rather than confining it to his ownself. (d) Order A place for everything and everyone in his/her place. Basically it means orderlinss. If there is a fixed place for different things in a factory and they remain in their places then no time is wasted in locating them. Same way if every personnel is allocated an area to operate from then his co-workers, head or subordinates, anyone can contact him easily. (e) Centralisation and Decentralisation  Concentration of authority in a few hands is centralisation and its dispersal among more number of people is decentralisation. Fayol believed that an organisation should not work with anyone of them in isolation. A combination of both is important simple, easy and work of routine type should be decentralised and critical important type of work should be centralised. (f) Initiative  Initiative means taking the first step with self-motivation workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiatives should be encouraged. A good company should invite suggestions from employees which can result in substantial cost/time reduction. Rewards can be given to fruitful suggestions.

3. Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.

4 . Discuss the following techniques of scientific work study (a) Time study (b) Motion study (c) Fatigue study (d) Method study (e) Simplification and standardisation of work

Ans: Some of the techniques of scientific work study are (a) Time Study It determines the standard time taken to perform a well-defined job. The standard time is fixed for the whole of the task by taking several readings. The method of time study will depend upon volume and frequency of the task, the cycle time of the operation and time measurement costs. There are three objectives achieved through time study. (i) Determine the number of workers. (ii) Frame suitable incentive schemes. (iii) Determines labour costs. e.g., if standard time taken to do a piece of work in 20 minutes then one work can be done 3 times in an hour and total 21 times (3×7 hours per day) the work can be done on a single day. (b) Motion Study Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions. On close examination of body motions, e.g., it is possible to find out three types motions (i) Motions which are productive. (ii) Motions which are incidental. (iii) Motions which are unproductive. Out of the above, three workers were motivated to eliminate the third type completely and reduce the second one to the minimum. This help in increasing productivity.

(c) Fatigue Study Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task. A person is bound to feel tired physically and mentally if he does not take rest while working. The next intervals will heip one to regain stamina and work again with the same efficiency for e.g., in an organisaton working hours are 9 to 5. There is a lunch break of an hour for the workers to take rest similarly in a school there is a break for the students and teachers after 4 periods of continuous learning. (d) Method Study The objective of method study is to find out one best way of doing the job. Different managers would use their own different methods of getting the work done. But there is always one best method. Right from procurement of raw materials till the final product is delivered to the customer every activity is the part of method study. The objective of whole exercise is to minimise the cost of production and maximise the satisfaction of the customer. (e) Simplification and Standardisation of Work Standardisation refers to the process of setting standards for every business activity e.g., process, raw material, time, product, machinery, methods or working conditions. The objective of standardisation are (i) To reduce product to fixed types, sizes, features etc. (ii) To establish interchangeability of various parts. (iii) To establish standards of excellence and quality in materials. (iv) To establish standards of performance of men and machines. Simplification aims at eliminating unnecessary diversity of products. It results in savings of cost of labour, machines and tools. It implies reduced inventories, fuller utilisation of equipment and increasing turnover.

6. Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment. Ans: Relevance of Taylor and Fayol’s contribution in the contemporary business environment. Both Fayol and Taylor have given principles of management to improve efficiency in an organisation. Taylor gave us scientific principles of management which are being adopted by all organisations to improve its productivity at the shop floor level, the principles help in giving effective results. In the same manner, Henry Fayol gave in general principles of management which when implemented at any of the levels-top, middle or lower and helps in achieving better co-ordination, remove ambiguity and encourage the employees to improve their work performance.

Case Problems

1 . T limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keep its market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work, the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage. The workers were becoming undisciplined. The spirit of teamwork, which had characterised the company, previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure.

1. Identify the principle of management (out of 14 given by Henry Fayol) that were being violated by the company. Ans: Company violated following principles (i) Division of work (ii) Unity of command (iii) Unity of direction (iv) Discipline (v) Subordination of individual interest to general interest (vi) Order (vii)Initiative (viii) Remuneration

2. Explain these principles in brief. Ans: (i) Division of Work As per the case work is not divided among the workers as per their specialisation. As specialisation is the most efficient way to use human efforts and produces more and better work. (ii) Unity of Command In the case subordinates had to work for more than one superior. This results in declining efficiency. As per Fayol’s principle of unity of command there should be one boss and if it is violated it results in authority is undetermined, discipline is in jeopardy, order distributed and stability threatened. Same we are observing in the above case. (iii) Unity of Direction The units of an organisation should be moving towards the same objective. Each group must be having same objective must have one head one plan. But in case first the producers are working on one product then moved to two or more group. Thus, this principle is also violated. (iv) Discipline In the case, there is a lack of formalised control as the workers are working beyond there abilities. There is no rules and regulations as well as lack of employment agreement. (v) Subordination of Individual Interest to General Interest Every individual is working better only when the organisation is giving priority to their general interest. In the case, company in only focusing over its objective not on employees. (vi) Order People and materials must be in suitable places at appropriate time for maximum efficiency. But in case they are not following the order of anything, (vii) Initiative It implies that workers should be self motivated, suggestions should be taken from the employees. It results in substantial cost and time reduction but here they are taking no feedbacks, no suggestions. (viii) Remuneration The workers should get the fair wages but in case workers are performing day and night but they are not getting a fair amount for the same. This results that they are feeling cheated.

3. What steps should the company management take in relation to the above principles to restore the company to its past glory? Ans:  Following steps should be taken by the company to retain its past glory (i) Work is divided into small tasks and distributed among the employees as per their specialisation. (ii) There should be one boss. (iii) Functions should be performed under one head or one plan. (iv) Formalised control should be maintained. (v) Proper remuneration and impressive incentives should be given. (vi) hierarchical communication pattern is to be followed. (vi) Suggestions and feedback should be taken from the employees. (viii) Maintain high morale among employees. 2 . The management of company ‘F’ Limited now realised its folly. In order to rectify the situation, it appointed a management consultant ‘M consultants’ to recommend a restructure plan to bring the company back on the rails. ‘M consultants’ undertook a study of the production process at the plant of the company ‘F limited and recommended the following changes 1. The company should introduce scientific management with regard to production. 2. Production Planning including routing, scheduling, dispatching and feedback should be implemented. 3. In order to separated planning from operational management ‘Functional foremanship’ should be introduced. 4. Work study should be undertaken to optimise the use of resources. 5. ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability. 6. To motivate the workers ‘Differential Piece Rate System’ should be implemented. 7. The above changes should be introduced apart from the steps recommended in case problem-1 (as an answer to question number 3 of that case problem). It was expected that the changes will bring about a radical transformation in the working of the company and it will regain its pristine glory.

1 . Do you think that introduction of scientific management as recommended by M consultants will result in intended outcome. Ans:  Though scientific management is the best solution but still it will not be able to give very effective results as it has its own limitations. (i) As competition has increased market research now will not help much. (ii) Appointing professionals which increase the cost. (iii) Principle of initiative will not help if functional foremanship will also be adopted. (iv) In differential piece wage system only efficient workers may gain, the others will be in pain as they might lose their wages if target not met. This will lead instability which is harmful. (v) Lot of stress will be generated from top to lower level.

2 . What precautions should the company undertake to implement the changes? Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem. Ans:  A large number of changes will not accepted by anyone. So the company should play safe while making any changes. (i) Trained staff can be appointed for few areas and workers can be trained to improve efficiency levels. (ii) Production planning to be done with care. (iii) Functional foremanship can be introduced but it not lead to clear killing of initiative. Workers should be eonsulted for suggestions. (iv) Optimum use of method, time, motion and fatigue study should be done. (v) Standardisation can be implemented for material, machinery and features of product. (vi) Financial incentives should be provided to workers to get more work rather than adopting differential piece wage system.

More Resources for CBSE Class 12 RD Sharma class 12 Solutions NCERT Solutions for Class 12th English Flamingo NCERT Solutions for Class 12th English Vistas CBSE Class 12 Accountancy NCERT Solutions for Class 12th Maths CBSE Class 12 Biology CBSE Class 12 Physics CBSE Class 12 Chemistry CBSE Sample Papers For Class 12

NCERT Solutions Accountancy Business Studies Macro Economics Commerce

Free Resources

NCERT Solutions

Quick Resources