(a) Explain the following principles of management given by Fayol : (i) Division of work (ii) Authority and Re

Question

Q. (a) Explain the following principles of management given by Fayol :

(i) Division of work

(ii) Authority and Responsibility

(OR)

(b) Explain the following points of significance of principles of management :

(i) Providing managers with useful insights into reality.

(ii) Optimum utilization of resources and effective administration.

CBSECBSE Class XII Board 2025Subjective· 4mImportance★★★★★

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Part (a)Concept understanding — Management Authority Principle

The Management Authority Principle

Think about a cricket team. The captain decides the batting order, the field placements, and when to take the powerplay. Now imagine if every player on the field started making those decisions independently — the bowler deciding the field, the wicketkeeper deciding the batting order, and the twelfth man deciding the bowling changes. Chaos, right? The team would collapse before the first ball is bowled.

That is the everyday intuition behind the Management Authority Principle. In any organised effort — whether a cricket team, a school, a company, or a government — someone must have the right to decide and the power to get things done. Without that, nothing gets coordinated.

What the Principle Actually Says

The Management Authority Principle states that authority must be clearly defined, properly delegated, and matched with corresponding responsibility. It is not about bossing people around. It is about creating a clear chain of command so that everyone knows:

Who has the right to make which decisions
Who is answerable for what outcomes
How orders flow from top to bottom

Important

Authority is the right to command, not just the power to force. Subordinates accept it because it comes from a legitimate source — usually the organisation's hierarchy or rules. Without legitimacy, authority becomes mere coercion.

Why It Matters (The Real Reason)

In your NCERT textbook (Class 12 Business Studies, Chapter 5 — Organising), this principle is discussed under Delegation of Authority. The textbook makes a crucial point: authority without responsibility leads to misuse of power; responsibility without authority leads to frustration and failure.

Consider a school prefect. If the prefect is given the responsibility to maintain discipline in the corridor but has no authority to warn or report students, the job becomes impossible. Conversely, if the prefect has authority to punish but no responsibility for the corridor's discipline, they might misuse that power.

The principle ensures balance. It is the foundation of every well-run organisation.

Key Elements You Must Remember

Authority flows downward — from the board of directors to the CEO, to managers, to supervisors, to workers. Each level has the right to command the level below.
Responsibility flows upward — a subordinate is answerable to their superior for the tasks assigned.
Accountability is absolute — a manager cannot delegate their own accountability. Even if they delegate authority, they remain answerable to their own boss for the final result.

Note

NCERT emphasises that delegation is the process by which a manager transfers authority to a subordinate. But the manager's own accountability cannot be transferred. This is why senior managers still get fired when their team fails — they delegated authority, but not accountability.

A Simple Example to Lock It In …

Part (b)Concept understanding — Principles Flexibility

Principles of Flexibility — A First Look

Think of a bamboo tree in a storm. It bends low, almost touching the ground, but does not break. When the storm passes, it springs back upright. A rigid oak, by contrast, might snap under the same force. That ability to bend without breaking, to adjust shape under pressure and return to form — that is flexibility in the physical world.

Now bring that same idea into the world of business and management. A company faces constant change: new competitors, shifting customer tastes, government policy updates, economic ups and downs. A rigid organisation — one that insists on doing everything exactly as it always has — will crack under such pressure. A flexible one adapts its methods, its rules, even its goals, while still holding firm to its core purpose.

The precise meaning

In management studies, Principles of Flexibility refers to the idea that managerial principles, procedures, and organisational structures must be adaptable to changing circumstances. No rule is absolute. What worked brilliantly for a company in 2010 may be obsolete in 2025. A flexible manager knows when to relax a standard operating procedure, when to modify a policy, and when to abandon an old practice entirely.

The NCERT textbook puts it clearly: management principles are not rigid prescriptions. They are flexible guidelines that can be modified according to the situation. This is what distinguishes a living, breathing organisation from a dead bureaucracy.

Important

Flexibility does not mean having no principles at all. It means applying principles intelligently, with judgement, rather than mechanically. A flexible manager still follows principles — but adapts them to fit the specific context, people, and time.

Why flexibility matters

Consider a simple example. A retail store has a rule: "All sales are final; no refunds." That principle works well in normal times. But suppose a customer buys an expensive gift, and the recipient already owns one. If the store rigidly refuses a refund, it loses that customer forever. A flexible approach — offering store credit or an exchange — keeps the customer happy and preserves long-term loyalty. The principle (no refunds) was not wrong; it just needed bending for a special case.

Flexibility matters for several reasons:

Business environment is dynamic. Laws change, technology advances, competitors innovate. A rigid organisation cannot survive.
Human behaviour is unpredictable. Employees and customers do not always fit neat categories. Flexible rules allow for individual differences.
No two situations are identical. A principle that worked in one factory may need adjustment in another, even within the same company.
Innovation requires room to experiment. If every deviation from procedure is punished, no one will try new ideas.

A note from the NCERT perspective …

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Part (a): Division of work raises efficiency through specialisation; authority and responsibility must be kept in balance (parity).

Part (b): Principles of management give managers useful insights into reality and ensure optimum use of resources with effective administration.

Part (a)

Henri Fayol gave fourteen general principles of management. Two of them are:

(i) Division of work. According to this principle, the whole work of the organisation should be divided into small, specialised tasks, and each task should be given to a person who is best suited to perform it. When a person performs the same small task repeatedly, they gain speed, skill and accuracy — this is specialisation. The result is that the same effort produces more and better output. Fayol regarded this principle as applicable to all kinds of work, whether technical or managerial, and considered it the natural way to make efficient use of the labour force. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

Showing the 12 most recent of 47 on this concept.

CBSE 2026Set 66/1/11 markMCQ
$Q. Match the principle of management given in Column - I with its explanation given in Column - II : Column - I$
(a) Discipline
(b) Unity of direction
(c) Order
(d) Unity of command Column – II
(i) There should be one and only one boss for every individual employee in the organisation.
(ii) There should be a place for everything (everyone) and everything (everyone) should be in its (his/her) place.
(iii) There should be obedience to organisational rules and employment agreement which is necessary for the working of the organisation.
(iv) Each group of activities having the same objective must have one head and one plan. Choose the correct option from the following :
(a)
(b)
(c)
(d) (A)
(iii)
(iv)
(i)
(ii) (B)
(iv)
(iii)
(ii)
(i) (C)
(iv)
(iii)
(i)
(ii) (D)
(iii)
(iv)
(ii) (i)
›Reveal solutionSolution
This question tests understanding of Henri Fayol's principles of management: Discipline, Unity of Direction, Order, and Unity of Command, by matching them with their correct explanations.

Henri Fayol, a French mining engineer, is widely regarded as one of the pioneers of modern management theory. His fourteen principles of management, developed from his own extensive administrative experience, provide a foundational framework for effective organizational structure and operation. These principles are not rigid rules but rather flexible guidelines that managers can adapt to various situations to enhance efficiency and achieve organizational objectives. Understanding these principles is crucial for anyone studying management, as they offer timeless insights into how organizations can be run effectively.

Let us delve into the specific principles mentioned in the question and their underlying explanations:

Discipline: This principle emphasizes the necessity of obedience to organizational rules and employment agreements. It is fundamental for the smooth functioning of any organization. Discipline requires good superiors at all levels, clear and fair agreements, and judicious application of penalties. Without discipline, chaos can ensue, and the organization's ability to achieve its goals is severely hampered. It fosters respect for authority and adherence to established norms, creating a productive work environment.

Unity of Direction: This principle states that there should be one head and one plan for a group of activities having the same objective. It ensures coordination and focus within the organization. For instance, all marketing activities aimed at increasing sales should fall under one marketing manager with a single, unified plan. This prevents duplication of effort, conflicting strategies, and ensures that all efforts are directed towards a common goal, leading to greater efficiency and effectiveness.

Order: Fayol's principle of Order refers to both material and social order. It dictates that there should be a designated place for everything and everyone, and everything and everyone should be in their designated place. This means having proper arrangements for physical resources (tools, materials) and human resources (employees). A well-ordered workplace minimizes wasted time and effort in searching for things or people, contributing to efficiency and a sense of stability. It ensures that resources are readily available when needed and that employees know their roles and positions within the organization.

Unity of Command: This principle is straightforward yet critical: an employee should receive orders from one and only one superior. If an employee reports to multiple bosses, they may receive conflicting instructions, leading to confusion, frustration, and a lack of accountability. Unity of Command ensures clarity in reporting relationships, prevents overlapping authority, and maintains a clear chain of command, which is essential for effective decision-making and smooth operations.

Important

Fayol's principles, while developed over a century ago, remain highly relevant in modern management. They provide a robust framework for understanding organizational structure and behavior, emphasizing the importance of clarity, discipline, and coordinated effort.

Now, let's match the principles from Column – I with their explanations in Column – II: …
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CBSE 2026Set MARCH1 markMCQ
$Q. Principles of Management are not ____________.$
(a) Absolute
(b) Flexible
(c) Universal
(d) Behavioural
›Reveal solutionSolution

The correct option is (a) Absolute. Principles of management are relative, not absolute — they must be applied flexibly according to the situation.

…

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CBSE 2026Set ANNUAL1 markMCQ
$Q. Which Management thinker gave the 14 Principles of Management?$
(a) Maslow
(b) Henry Fayol
(c) McGreger
(d) Elton Mayo
›Reveal solutionSolution

Henri Fayol gave the 14 principles of management.

Henri Fayol, a French mining engineer and administrator, is called the Father of Modern/General Management. He identified 14 principles of management — such as Division of Work, Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of individual interest to general interest, Remuneration, Centralisation and Decentralisation, Scal …

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CBSE 2026Set ANNUAL1 markMCQ
$Q. Write True or False: Principles of management are "general guidelines".$
(a) True
(b) False
›Reveal solutionSolution

True; management principles are general guidelines.

The principles of management are broad, flexible statements that guide managerial thinking and action, rather than rigid, ready-made solutions. A manager applies and modifies them according to the situation. Because they only …

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CBSE 2026Set ANNUAL1 mark
$Q. Write answer in one word/sentence: Where are the principles of management applicable?$
›Reveal solutionSolution

Management principles are universally applicable.

A key feature of the principles of management is universal applicability: they apply to every kind of organisation — large or small, business or non-business — and at all levels (top, middle, lower). They are general guidelines suited to all managerial situations …

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CBSE 2025Set 66/1/11 markMCQ
$Q.'The principles of management can be modified by the managers when the situation so demands.' This highlights which of the following feature of principles of management : (A) General guidelines (B) Flexible (C) Contingent (D) Mainly behavioural$
›Reveal solutionSolution
The ability to modify management principles according to situational demands highlights their flexible nature.

Management principles are fundamental truths or guidelines that serve as a basis for managerial action and decision-making. Unlike the rigid laws of pure science, which are universally applicable without modification, management principles are developed through observation and experimentation in human organisations. This inherent difference means they must adapt to the dynamic and complex environment in which businesses operate.

The statement, "The principles of management can be modified by the managers when the situation so demands," directly points to the flexible characteristic of these principles. Flexibility means that the principles are not absolute or static; they can be adjusted, adapted, or even combined differently to suit the specific requirements of a particular organisation, department, or even a unique problem.

Consider why this flexibility is crucial:

Dynamic Environment: The business world is constantly changing due to technological advancements, market shifts, economic conditions, and social trends. Rigid principles would quickly become obsolete.

Human Element: Management deals with human beings, whose behaviour is complex and unpredictable. What works for one group of employees or in one cultural context might not work in another.

Varying Organisational Contexts: Organisations differ vastly in size, structure, objectives, and culture. A principle like 'Division of Work' might be applied very strictly in a large manufacturing firm but much more loosely in a small, agile startup where employees wear multiple hats.

Experimentation and Innovation: Flexibility allows managers to experiment with new approaches and innovate, rather than being bound by a fixed set of rules.

Note

While management principles provide a framework, they are not prescriptive formulas. Managers must use their judgment and creativity to apply them effectively, often modifying them to fit the unique circumstances.

Let's briefly look at why the other options, while characteristics of management principles, are not the primary feature highlighted by the ability to modify them:

(A) General guidelines: This is true; principles are guidelines, not strict rules. However, the statement focuses on the ability to change these guidelines, which is flexibility, rather than just their guiding nature. …
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CBSE 2025Set 66/2/11 markMCQ
$Q.'The right of an individual to command his subordinates and to take action within the scope of his position' is called : (A) Decentralization (B) Authority (C) Responsibility (D) Accountability$
›Reveal solutionSolution
The power to give orders, make decisions, and act within one's role is the definition of authority. The answer is (B).

When an organization assigns someone a position—say, a department head or a team leader—it must also give that person the power to actually do the job. That power is what we call authority. It's the formal right to command others, to allocate resources, to approve or reject proposals, and to make decisions within a defined boundary.

Think of it this way: responsibility tells you what you must achieve, but authority gives you the means to achieve it. A manager responsible for meeting a sales target needs the authority to hire salespeople, set prices within limits, and approve marketing spend. Without authority, responsibility becomes an empty burden.

The four terms in the options form a tightly connected system in management theory, so let's distinguish them clearly:

Authority is the right to command and act. It flows downward from the organization's top and is attached to a position, not a person. When you leave the role, the authority stays with the role.

Responsibility is the obligation to perform assigned tasks. It flows upward—you are responsible to someone higher. Crucially, responsibility cannot be delegated away; a manager who delegates a task to a subordinate remains responsible for its outcome.

Accountability is the answerability for results. It's the flip side of authority: if you have the power to decide, you must answer for the consequences. Accountability is always retained by the person in the position. …
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CBSE 2025Set 66/4/11 markMCQ
$Q. Menon, a worker in 'Superior Toys Company' was given a task by his superior to produce 100 toys in a week. Menon delegated this task to his subordinates, Rohan and Farhan. Farhan met with an accident and was hospitalised. Rohan could not complete this task even after working more hours than allotted. Who is answerable to Menon's superior for this task ? (A) Farhan (B) Menon (C) Both Menon and Rohan (D) Both Rohan and Farhan$
›Reveal solutionSolution

Under the principle of authority and responsibility, a manager who delegates a task remains fully answerable to their own superior for its completion — delegation does not transfer accountability upward.

This question tests your understanding of a core management principle: authority and responsibility. The NCERT textbook in Business Studies (Class 12) explains this principle clearly — when a superior delegates a task to a subordinate, the subordinate receives the authority to do the work, but the responsibility for getting it done still rests with the delegating manager. In other words, you can share the work, but you cannot share the accountability that flows upward.

Let’s apply this to the situation. Menon was given a target by his superior: produce 100 toys in a week. Menon then delegated this task to Rohan and Farhan. Farhan met with an accident and was hospitalised, so he could not work. Rohan tried but failed to complete the task even with extra hours. Now, who is answerable to Menon’s superior?

Note

Delegation means passing on authority to act, but the responsibility for the outcome remains with the person who delegated. This is why managers cannot escape accountability by blaming their subordinates. …

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CBSE 2025Set ANNUAL1 markMCQ
$Q. Principle of management is (A) Dynamic (B) Flexible (C) Universal (D) All of these$
›Reveal solutionSolution

Principles of management are dynamic, flexible and universal — all of these.

Management principles have several features. They are universal, applying to organisations of every kind and size; they are flexible, to be modified and applied according to the situation rather than used rigidly; and they are dynamic, evolving over time with changing conditions. Since the principle of manag …

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CBSE 2025Set ANNUAL1 markMCQ
$Q. The propounder of administrative management was (A) Fayol (B) Taylor (C) Terry (D) None of them$
›Reveal solutionSolution

Henri Fayol propounded administrative (general) management, giving the 14 principles of management and defining the universal functions of a manager; Taylor, by contrast, is associated with scientific management.

…

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CBSE 2025Set ANNUAL1 markMCQ
$Q. "The Principles of Management are applicable to all kinds of organisations." Identify the nature of Principles of Management mentioned above.$
(a) General guidelines
(b) Flexibility
(c) Contingent
(d) Universal applicability
›Reveal solutionSolution
A principle applicable to all kinds of organisations illustrates the "Universal applicability" nature of management principles.

Principles of management have several distinguishing features (natures), including:

General guidelines — not rigid prescriptions, but a guide to action in given situations.

Formed by practice and experimentation — developed over years of observation and experience.

Flexible — can be modified to suit changing situations.

Mainly behavioural — aim at influencing human behaviour.

Cause and effect relationships — intend to establish a relationship between cause and effect.

Contingent — their application depends on the prevailing situation. …
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CBSE 2024Set MARCH1 markMCQ
$Q. What is it called where authority is centrally delegated at higher management level?$
(a) Centralisation
(b) Decentralisation
(c) Decapitalisation
(d) Transmission
›Reveal solutionSolution

Concentration of authority at the top level is called centralisation.

Centralisation refers to the systematic and consistent retention of decision-making authority at the higher levels of management. Its opposite, decentralisation, means authority is systematically delegated down to …

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Q.(a) Explain the following principles of management given by Fayol :

Part (a)

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