Business Studies · Class 12 Commerce
Ch 2Principles of Management — Class 12 Business Studies, concept-first.
The chapter opens by looking at Toyota Motor Corporation's own guiding principles, which show how a large enterprise can be driven by broad guidelines that shape both its vision and how that vision is achieved.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Principles Flexibility
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.
Most relevant Q&A
- What makes principles of management flexible?Free
- Do you think innovativeness evident from the examples of Toyota and Kiran Mazumdar Shaw can be linked to the nature of management principles…Free
- Statement I : Values are general rules for behaviour of individuals in society formed on the basis of common practice and principles after r…Preview
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Introduction
The chapter opens by looking at Toyota Motor Corporation's own guiding principles, which show how a large enterprise can be driven by broad guidelines that shape both its vision and how that vision is…
Principles of Management: The Concept
A managerial principle is a broad and general guideline for decision-making and behaviour. It is not a rigid rule but a flexible guide that helps managers think and act in different situations.
Nature of Principles of Management
The nature of any subject refers to its essential qualities and characteristics. Principles of management are general propositions — they hold true when certain conditions are present.
Significance of Principles of Management
The significance of principles of management comes entirely from their utility. They are not abstract theories; they are practical tools that shape how managers think and act.
Taylor’s Scientific Management
Scientific management is one of the three major streams of the classical school of management thought. The other two are Fayol's administrative theory and Max Weber's bureaucracy.
Principles of Scientific Management
Before Taylor, factory managers had no established theory to guide them. They ran their factories based on personal judgment and whatever had worked for them in the past.
Techniques of Scientific Management
F.W. Taylor did not just propose principles — he also developed a set of practical techniques to put those principles into action.
Functional Foremanship
In the factory system, the foreman is the person workers interact with face-to-face every day. As you have already studied, the foreman is the lowest-ranking manager and the highest-ranking worker — t…
Standardisation and Simplification of Work
Standardisation and simplification are two closely related techniques that Frederick Winslow Taylor championed as part of his Scientific Management.
Method Study
Method study is a technique of scientific management that focuses on finding the one best way to perform a given job.
Motion Study
Motion study is the systematic observation and analysis of the movements a worker makes while performing a job.
Time Study
Time study is a technique used to determine the standard time required to complete a clearly defined job.
Fatigue Study
Fatigue is the physical or mental tiredness a person experiences from sustained work. The textbook makes a simple but crucial point: a worker who never rests will eventually break down, but one who re…
Differential Piece Wage System
Taylor’s differential piece wage system was not just a payment method — it was a deliberate tool to separate efficient workers from inefficient ones and to reward the efficient.
Fayol’s Principles of Management
Henri Fayol (1841–1925) was a French mining engineer and management theorist. While F.W. Taylor focused on improving the efficiency of workers on the shop floor, Fayol turned his attention to the work…
Fayol Versus Taylor — A Comparison
Fayol and Taylor are the two most influential pioneers of management thought. Their work is often compared because both wrote around the same time (early 1900s) and both aimed to make management more…
Key Terms
- Principles of Management: Fundamental truths of general validity that guide managerial action and decision-making.
Summary
- Nature of principles: Universal guidelines derived from observation and experimentation; they are flexible, not rigid rules, and apply to all types of organisations.
Very Short Answer Questions
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- Q1What makes principles of management flexible?Free
- Q2State the main objective of time study.Free
- Q3Name the principle that is an extension of the 'harmony, not discord'.Preview
- Q4State any two causes of fatigue that may create hindrance in the employee's performance.Preview
- Q5SanakLal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they h…Preview
- Q6Which technique is used by Taylor for distinguishing efficient and inefficient workers?Preview
Short Answer Questions
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- Q1How is the Principle of 'Unity of Command' useful to management? Explain briefly.Free
- Q2Define scientific management. State any three of its principles.Free
- Q3If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What a…Preview
- Q4Explain any four points regarding significance of principles of management.Preview
- Q5Explain the principle of 'Scalar Chain' and gang plank.Preview
- Q6A production manager at top level in a reputed corporate, Mr. Rathore, holds the responsibility for ordering raw material for the firm. Whil…Preview
Long Answer Questions
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- Q1Explain the Principles of Scientific Management given by Taylor.Free
- Q2Explain the following Principles of Management given by Fayol with examples: (a) Unity of direction (b) Equity (c) Esprit de corps (d) Order…Free
- Q3Explain the technique of 'Functional Foremanship' and the concept of 'Mental Revolution' as enunciated by Taylor.Free
- Q4Discuss the following techniques of Scientific Work Study: (a) Time Study (b) Motion Study (c) Fatigue Study (d) Method Study (e) Simplifica…Preview
- Q5Discuss the differences between the contributions of Taylor and Fayol.Preview
- Q6Discuss the relevance of Taylor and Fayol's contribution in the contemporary business environment.Preview
- Q7'Bhasin' Limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expa…Preview
- Q8(Further information related to the above question on Bhasin Limited.) The management of Bhasin Limited now realised its folly. In order to…Preview
Test Your Understanding
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Sample & Board Papers
Sample papers and previous-year board questions for this subject.