Business Studies class XII

Practice assignment 2nd

Principles of Management

1. Briefly explain ‘discipline’ and ‘scalar chain’ as the principles of general management.

2. Rakshit is a salesman in Anmol Industries. He did an aggressive research on a new cost saving
advertisement technique and suggests the same to his sales manager. However, the sales manager
did not pay attention to his suggestion. Moreover, he has warned him not to come with any
suggestions in future.

Which principle of management is being violated by the manager?

What should have been the appropriate way of response by the manager?

3. Satyam Ltd manufactures curtain clothes. Noticing it’s popularity in the market , the company
decided to manufacture bed sheets also. The decision was executed with immediate effect. But the
company did not increase the workforce to the desired extent. The company wanted the existing staff
to manage the work for some time, by working overtime. The result was that on the one hand the new
product of the company failed to keep its hold on the market and on the other hand due to overwork
the efficiency of the employees declined. On several occasions it was discovered that a subordinate
was getting instructions from two or more managers. Managers had started giving simple and easy
work to their known employees and complex and difficult work to other employees. The company was
now ignoring the rules completely.

Identify and state those three principles of management that have been ignored in the case by quoting
the lines.

4. Anuj Gupta and Mangala Sharma are both qualified dentist and good friends. After obtaining a
certificate of practice, they decided to pursue a career of their own choice. Anuj Gupta starts a dental
care centre in the city whereas Mangala Sharma joins a government hospital. They meet after a long
time in a party. Anuj Gupta invites Mangala Sharma to visit his dental care centre and she accepts his
invitation. She observes at his clinic that there is fixed place for everything and everyone and tools and
equipments are lying in an organised manner. Also, Anuj Gupta always tend to replace I with We while
having a conversation with the staff members. Later on Anuj Gupta also 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 two principles of management which Anuj Gupta is applying for successful
management of his dental care center.

5. Telco Ltd is manufacturing files and folders from the old clothes to discourage use of plastic files
and folders. For this, they employ people from nearby villages where very less job opportunities are
available. An employee, Harish, designed a plan for the 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.

State the principle of management described in the above para.

Identify any two values that the company wants to communicate to the society.

6. Explain why is it said that the principles of management are ‘primarily behavioural’ and ‘contingent’
in nature. Also, explain how principles of management ‘furnishes the managers with useful insights
into reality’ and ‘helps is thoughtful decision making’.

7. Mrs. Rachna, Senior Manager of Saregama Ltd. 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 gate to check the credentials of each visitor is 30 seconds. So she decides to employ two persons
on this job. She considers the fact that every day, the programme 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 Mrs.
Rachna.

8. Rishabh managing director of an electronic goods manufacturing company has been experiencing
year to year increase in revenues and net profit. The reason was that he ensured competition is
replaced by cooperation and Rishabh has always been receptive towards constructive employees
suggestions. He emphasized on worker training as he felt that efficient employees shall produce more.
Thus , he decided to reward workers by paying them higher pay as compared to inefficient ones.
Identify and explain the principles of management and technique of scientific management referred in
above para.

9. New Delhi Ltd is a famous service providing company .Mr Lakshay Wadhwa is its managing director.
He continuously motivates the research and development department that a new and latest method of
doing work must be explored. The provision has been made to give reward to those employees who
will participate in a particular exploration. He also believes that the two groups working in managerial
and non managerial posts are similar to two wheels of an organisational vehicle. If this vehicle is to be
driven in a right way then both the wheel should be properly aligned. Mr. Lakshay is a successful
leader. Among his employees he has instilled the feeling that no decision will be taken without
consulting the subordinates. To excel, the other companies in this field is the main motive of Mr
Lakshay. Paying attention to training is the secret of the company. Identify the four principles of
scientific management highlighted in above paras by quoting the lines .

10. Rajvir 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 lot of overlapping of activities. Therefore, ther should be two separate
divisions for both of them wherein each division should have its own in charge, plans and execution
resources.

In context of the above case:

(a) Identify and explain the principle of management which is bein violated.

(b) Also identify the principle of management that Rajveer feels should be implemented in the
factory

(c) Give any two differences between the principle of management as identified in part (a) and part
(b) respectively