Answers Chapter 2 Principles of Management (Case Study Based Test 2)
A1 The nature of principle of management which is highlighted here is ‘Principles ofmanagement are formed by [1]
practice and experimentation’.
A2 In the above case the company has learned from its experience on the basis ofpractice and experimentation [1]
that the principle of ‘Equity’ should be adopted toavoid problems and increase its output. Thus in the above
case the nature ofprinciple of management highlighted is that Management principles are formedby practice
and experimentation.
A3 Discipline [1]
A4 The principle of Equity has been violated in this case. It emphasizes kindliness and justice in the behavior of [1]
managers towards workers. No discrimination should be made by them on the basis of caste, creed, gender
or otherwise.
A5 The concept of management discussed here is Mental Revolution. The owner ofthe company grants some [1]
funds for the benefit of the families of the employees. The employees on the other hand never resist any
change or put excessive demands.
Since the employee turnover ratio is low the principle of management which must have been followed is
‘stability of personnel’. Whenever there is violation of this principle of Fayol the employee turnover ratio
increases. The increased employee turnover ratio is not good for an organisation and should be minimized.
A6 The principle of Fayol which is violated ‘Discipline’. [1]
A7 The principle of management which is followed here is ‘Science not Rule ofThumb’ as the organisation tries [1]
to bring uniformity in its approach.
A8 The multinational company didn’t follow the Principle of Equity. It emphasizes kindliness and justice in the [3]
behavior of managers towards workers. No discrimination should be made by them on the basis of caste,
creed, gender or otherwise.
The two values which are being ignored in the given case are:
o Honesty: “Wrong reporting about his colleagues to impress his boss.”
o Justice: “At the time of performance appraisal, the performance of Nikita was judged better than Salman.
Even then their boss, Mohammad Sharif, decided to promote Salman.”
A9 The principle of Fayol which is violated here is ‘Unity of command’. [3]
The Unity of command states that an employee should take orders only from oneboss.
The immediate outcome of the violation of this principle is dual subordination.
A10 The technique of Scientific Management which is used here is Functional Foremanship. [3]
The benefit will be that every worker cannot have all the qualities like intelligence, special knowledge,
energy, honesty, etc. Individually each of the functional foremen like gang boss, speed boss, etc. will look
after all these qualities.
The principle of Fayol which will be violated here will be principle of ‘Unity of Command’ as a single worker
will have to report to eight different people.
A11 Sandhya has used the following two techniques of scientific management: [3]
Time Study. Time study aims at determining the standard time taken by a workerof reasonable skill to
perform a well defined job. For this purpose time measuringdevices are used and standard time is fixed for
the task after taking severalreadings. The main idea behind this is to determine the number of workers to
beemployed, frame appropriate incentive schemes and determine labour cost.
Simplification of Work. Simplification of work aims at eliminating superfluousvarieties, sizes and
dimensions. The main idea behind is to eliminate unnecessarydiversity of products. It saves cost of labour,
machines and tools. It leads toreduction in stock and helps in fuller utilisation of equipment. Moreover, it
leadsto an increase in turnover.
A12 No, Mr. Bhardwaj cannot be held responsible for loss of the deal in the abovecase as he was not given the [3]
necessary authority to carry out his [Link] is an imbalance in authority and responsibility.
The name of the related principle is Authority and Responsibility.
Authority is the right to give orders and obtain obedience by the virtue of one’sposition in the organization.
Responsibility is the obligation of a person to carryout the assigned task to the best of one’s abilities and
skills. There are two typesof authorities, namely the official authority, which is the authority to
command,and personal authority, which is the authority of the individual [Link] is both formal
and informal. According to Fayol, there should bebalance between the authority given and responsibility
entrusted to an employeeso that he is able to carry out the assigned task. Any kind of imbalance inauthority
and responsibility is not good for the organisation. If the authoritygranted to an employee is less than what
is required, he will ineffective in doinghis work. On the other hand, if the authority delegated to an
employee is morethan what is required, he may tend to misuse it.
A13 The various principles of management that Raj is applying for the successfulmanagement of his eye care [4]
center are described below:
o Order: According to Fayol, “People and materials must be in suitable places atappropriate time for
maximum efficiency.” The principle of order states that ‘Aplace for everything (everyone) and everything
(everyone) in its (her/his)place’. A sense of orderliness will lead to increased productivity and efficiencyin the
organization.
o Espirit De Corps: According to Fayol, “Management should promote a teamspirit of unity and harmony
among employees.” A manager should replace Twith ‘We’ in all his conversations with workers to promote
teamwork. Thisapproach will give rise to a spirit of mutual trust and belongingness amongteam members. It
will also reduce the need for using penalties.
o Equity: According to Fayol, “Good sense and experience are needed to ensurefairness to all employees,
who should be treated as fairly as possible.” Thisprinciple emphasizes on kindliness and justice in the
behavior of managerstowards workers. The managers should not discriminate against anyone onaccount of
gender, religion, language, caste, belief or nationality etc.
The two values that Simran wants to communicate to the society by taking up ajob in a village are:
o Humanity
o Concern for poor
A14 The principle of management applied for the success of the programme is Espirit De Corps. [4]
The two features of management mentioned in the above paragraph are as follows:
o Management is goal oriented as it seeks to integrate the efforts of different individuals towards the
accomplishment of both organizational and individual goals.
o Management is pervasive as it is applicable to all types of organizations,(economic, social, political) all sizes
of organizations (small, medium, large) and at all levels of management (top, middle and lower).
The two values that ‘Aapka Vidyalaya’ communicated to society are:
o Responsibility
o Sustainable development.