CBSE 12th Business Studies Board Exam 2020: Check Important Questions & Answers of Chapter 2 (Principles of Management)

CBSE 12th Business Studies important questions and answers of chapter 2- Principles of Management. The mentioned questions are from the NCERT textbook and the latest CBSE Sample paper of Business Studies. The given questions are expected in the CBSE class 12 Board Exam 2020. 

CBSE Class 12 Business Studies Chapter 2
CBSE Class 12 Business Studies Chapter 2

Candidates appearing for CBSE Board Exam 2020 must check the important questions & answers of Class 12 Business Studies (Chapter 2: Principles of Management). The set of long and short questions & answers will help in the board exam. 


Q1- In what way the Principle of ‘Unity of Command’ is useful to the management? Give a brief explanation.

Ans- The 'Unity of Command' principle states that any person should be answerable to only one authority figure. This principle is violated if an individual receives the command from two or more people. According to Fayol, this principle has an effective role in management.

Go through the important questions & answers of Chapter 1 ( Nature & Significance of Management) 

Q2- What is Scientific Management? Mention any three of its principle.

Ans- Frederick Taylor (1856- 1915) coined the term Scientific Management. It means working as per the standardized techniques and tools. With the help of specialized personnel, management can improve both the quantity and quality of the product and can reduce the cost at the same time.


The three principles of scientific management are:

  • Personnel Development: The overall development of the employees which increases organisations efficiency as well.
  • Harmony, Not Discord: It means maintaining a harmonious environment between workers and managers.
  • Science, Not Rule of Thumb: Organisation should apply the practices of Scientific Management. It improves efficiency and increases productivity.


Q 3- Which organisational structure assists in increasing managerial and operational efficiency.

Ans- Functional structure is the one which assists in increasing the managerial and operational efficiency.


Q 4- Briefly explain any four points regarding the significance of the principles of management.

Ans- Principles of management play a very important role in the managerial practices of an organisation. Check their significance below:

Basic Education of Management: These principles form the basic roots and research the techniques management. Management as a discipline could not have been developed without the basic idea of management.


Logistic Decisions: It encourages management decisions to be taken carefully. The decisions must be based on reasons and proofs rather than beliefs and ignorance.


Optimal use of Resources: It helps in the optimum utilization of the available resources. By applying principles of management the exact cause and effect relationship of the decisions of the managers can be easily predicted.


Insights to Reality: The principle of management can be applied on the basis of years of experimentation and observation.


Q 5- Explain in brief the ‘discipline’ and ‘scalar chain’ as the principles of general management.

Ans- The brief explanation of Scalar Chain and Discipline are given below:

  • Discipline: Discipline means that an establishment must follow the rules and regulations. Discipline requires good supervisors at all levels who have clear and unbiased agreements.
  • Scalar chain: Scalar chain means a defined way of authority and communication. The order that it follows is from highest to the lowest.


Q6- Explain briefly the importance of the principles of management?

The importance of principles of management is given in the points below:

  • Scientific decisions: Management principles helps the managers in taking the decisions which are more beneficial for the goal-oriented situation
  • Giving managers beneficial insights: Principles of management help in raising the managerial effectiveness. It adds to the knowledge, skills, and ability which comprehends the various situations in a much more equitable way.
  • Management training, research & education: These principles of management can be easily utilized as a basis for management research, education & training.


Q7- If an organisation is not providing the right place for physical and human resources, which principle is violated?  

Ans- In this case, the ‘principle of order’ is violated. To run the tasks smoothly in the organization, it is important that the right people and the right resources are available. The violation of this principle leads to chaos in the workplace.


Q8- Explain what is ‘Principles of Management ’?

Ans- Management Principles refer to the broad and general guidelines to set the traits and make managerial decisions.


Q 9- Which organisational structure assists in increasing managerial and operational efficiency.

Ans- The functional structure of the organisation assists in improving managerial and operational efficiency.


Q10- Discuss‘Functional Foremanshipand the concept of ‘Mental Revolution’ as enunciated by Taylor.

Ans- Taylor defined both ‘functional foremanship' and ‘mental revolution’ in a different way:


Functional Foremanship- A Foreman in an organisation is a person who is in charge of the operational level workers. Taylor suggested that in order to increase efficiency, the performance of the foreman must also be improved. The improved performance of the foreman will directly impact the working of operation level workers as well.


Mental Revolution- Mental Revolution means changing the attitude of the managers as well as the workers. It aims to improve the thinking of both so as to create a better working environment. The workers and the manager must value each other’s work and contribution.


Q11- State the role of ‘Gang Boss’ in Functional Foremanship.

Ans- The Gang Boss has to report directly to the production in-charge. The work of Gang Boss is to make sure that the required material is available for the workers to start their work.

Important Questions & Answers of Chapter 3 ( Business Environment) 

Important Questions & Answers of CBSE Class 12 Business Studies- Chapter 4 (Planning)

Important Questions & Answers of CBSE Class 12 Business Studies- Chapter 5 (Organising)

Important Questions & Answers of CBSE Class 12 Business Studies- Chapter 6 (Staffing)

Important Questions & Answers of CBSE Class 12 Business Studies- Chapter 7 (Directing)

Important Questions & Answers of CBSE Class 12 Business Studies- Chapter 8 (Controlling)

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