Principles of Management Class 12 MCQ Questions With Answers
Principles Of Management Class 12 MCQ Question 1.
Management principles are very ………. whereas pure science principles are rigid.
(A) Flexible
(B) Contingent
(C) Dependent
(D) Absolute
Answer:
(A) Flexible
Explanation:
The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can f be modified by the manager when the situation so demands.
Principles Of Management MCQ Chapter 2 Question 2.
Which of the following does not apply to Principles of Management?
(A) Applicable in large firms
(B) Formed by practice and experience of managers
(C) Flexible
(D) Contingent
Answer:
(D) Contingent
Explanation:
The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as the service sectors.
Principle Of Management Chapter 2 Class 12 MCQ Question 3.
The principles of management are significant because of:
(A) Providing managers with useful insights into reality.
(B) Optimum utilization of resources and effective administration.
(C) Meeting changing environment requirements.
(D) All of the above.
Answer:
(D) All of the above.
Explanation:
The application of principles of management helps the managers to take right decisions at the right time. By applying the management principles, the managers can focus on optimum use of available resources so as to achieve productive results at minimum cost and maximum profits. They also help managers to meet the changing requirements of the environment.
MCQ Of Business Studies Class 12 Chapter 2 Question 4.
Which of the following statements is false with respect to principles of management?
(A) The principles of management are formed by experience and collective wisdom of managers as well as experimentation.
(B) The principles of management are not rigid prescriptions, which have to be followed absolutely.
(C) Management principles aim at influencing behaviour of human beings.
(D) The application of principles of management is not possible in contingent situations.
Answer:
(D) The application of principles of management is not possible in contingent situations.
Explanation:
The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per requirements. The principles of management are not fixed or permanent. They are affected by situations or circumstances.
Question 5.
Principles of management provide managers with useful insights into reality. Which of the following statements explain this appropriately?
(A) Adds to managerial knowledge
(B) Enables managers to learn from past mistakes
(C) Helps managers conserve time by solving recurring problems quickly
(D) All of the above
Answer:
(D) All of the above
Explanation:
The principles of management provide the managers with useful insights into real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly.
Question 6.
Management principles are contingent or dependent upon the situations prevailing in the organization. Which is the correct explanation associated with this statement?
(A) Application of principles is suitable in similar situations in a large number of cases.
(B) Application of principles has to be changed as per requirements.
(C) Principles of management can be modified.
(D) None of the above.
Answer:
(B) Application of principles has to be changed as per requirements.
Explanation:
The principles of management are not fixed or permanent. They are affected by situations or circumstances. Therefore, the decision to implement them or not is taken according to the situations or circumstances.
Question 7.
How are the Management principles derived?
(A) Observation
(B) Experimentation
(C) Personal experiences
(D) All of the above
Answer:
(D) All of the above
Explanation:
The management principles are developed only after deep and thorough research work. They are not developed overnight or they are not the personal feelings of any person. Proper observations and experiments are conducted before developing them. These are the expressions of deep experiences of the leaders of management thoughts.
Question 8.
Why accurate cause and effect relationship cannot be established by principles of management?
(A) Because they mainly apply to human behaviour
(B) Because real life, situations are not identical
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Answer:
(C) Both (A) and (B)
Explanation:
The principles of management are less than perfect since they mainly apply to human behaviour. In real life, situations § are not identical. So, accurate cause and effect f relationships may be difficult to establish. However, principles of management assist managers in establishing these relationships to some extent and are therefore useful.
Question 9.
Match the NATURE of PRINCIPLES OF MANAGEMENT in Column I with their correct EXPLANATION in Column II.
| Column I | Column II |
| (a) Universal applicability | (i) Direct but do not provide readymade, straitjacket solutions |
| (b) General guidelines | (ii) Not rigid prescriptions, can be modified as per the situation |
| (c) Flexible | (iii) Aim at influencing behaviour of human beings |
| (d) Behavioural | (iv) Applicable to all types of organizations |
(A) (i), (ii), (iii), (iv)
(B) (iii), (ii), (iv), (i)
(C) (iii), (iv), (i), (ii)
(D) (iv), (i), (ii), (iii)
Answer:
(D) (iv), (i), (ii), (iii)
Question 10.
Which of the following principles of management by Fayol states that there should be one and only one boss for every individual employee?
(A) Unity of direction
(B) Order
(C) Unity of command
(D) Division of work
Answer:
(C) Unity of command
Explanation:
The principle of unity of command states that each employee in an organisation should receive orders from one superior only and he should be responsible to only one superior. It prevents confusion regarding tasks to be done.
Question 11.
Gang Plank is a term associated with which principle of Fayol.
(A) Equity
(B) Order
(C) Scalar Chain
(D) Initiative E
Answer:
(C) Scalar Chain
Explanation:
Fayol defines scalar chain as “The chain of superiors ranging from the ultimate authority to the lowest”. Every orders, instructions, messages, requests, explanation etc. has to pass through scalar chain. But, for I the sake of convenience and urgency, this path can be cut short and this short cut is known as Gang Plank.
Question 12.
In a cotton textile mill, various tasks viz. spinning, weaving, sizing, bleaching, etc. were divided to different groups of persons. Identify the principle of management stated here.
(A) Unity of command
(B) Division of work
(C) Stability of personnel
(D) Unity of direction
Answer:
(B) Division of work
Explanation:
Dividing work among the workforce helps improve the quality of the overall product. Henri Fayol said 1 that specialization in work increases the productivity and improves efficiency.of labour also leads to the specialization, accuracy and speed of the workers.
Question 13.
Which statement is correct regarding division of work?
(A) Intent is to produce more and better work from the same effort.
(B) Work is divided into small tasks.
(C) Trained specialists are required to perform each jobs.
(D) All of the above
Answer:
(D) All of the above
Question 14.
Which of the following statements is true?
(A) Authority is only formal.
(B) Authority is only informal.
(C) Authority is both formal and informal.
(D) Authority is neither formal nor informal.
Answer:
(C) Authority is both formal and informal.
Question 15.
Which of the following statements are true about ‘Authority’?
(A) Authority can be official authority or personal authority.
(B) Authority can be formal or informal.
(C) Authority should be commensurate with responsibility.
(D) All of the above.
Answer:
(D) All of the above.
Explanation:
Managers require authority commensurate with their responsibility. There should be a balance between authority and responsibility. An organisation should build safeguards against abuse of managerial power. At the same time a manager should i have necessary authority to carry out his responsibiliti
Question 16.
According to Fayol, the interests of an should take priority over the interests of an
(A) organization, individual
(B) individual, organization
(C) individual, group
(D) group, organization
Answer:
(A) organization, individual
Explanation:
The interest of the organisation must prevail upon the personal interests of individuals. The standard rule for any g organization is the work on the collective interest of the organization as a whole rather than personal interest of an individual.
Question 17.
principle of management isbeing violated if management does not fulfill its promise to increase wages of the workers after the mission is accomplished.
(A) Order
(B) Equity
(C) Discipline
(D) Initiative
Answer:
(C) Discipline
Explanation:
Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.
Question 18.
Match the PRINCIPLES OF MANAGEMENT in Column I with their correct EXPLANATION in Column II.
| Column I | Column II |
| (a) Unity of command | (i) Prevents hindrance in activities |
| (b) Unity of direction | (ii) Prevents overlapping of activities |
| (c) Stability of Personnel | (iii) Prevents dual sub-ordination |
| (d) Order | (iv) Prevents insecurity among employees |
(A) (i),(ii),(iii),(iv)
(B) (iii), (ii), (iv), (i)
(C) (iii), (iv), (i), (ii)
(D) (iv), (i), (ii), (iii)
Answer:
(B) (iii), (ii), (iv), (i)
Question 19.
Which study is the study of movements?
(A) Method
(B) Motion
(C) Time
(D) None of these
Answer:
(B) Motion
Explanation:
motion study refers to the studyof movements like lifting, putting objects, II sitting and changing positions, etc., which are I undertaken while doing a typical job.
Question 20.
Which of the following statements is false?
(A) Functional foremanship is an extension of the principle of division of work and specialisation to the shop floor.
(B) Under planning incharge four personnel namely speed boss, gang boss, repair boss, and inspector would work.
(C) Time Study determines the standard time taken to perform a well-defined job.
(D) Cooperation, not individualism is an extension of the principle of harmony, not discord.
Answer:
(B) Under planning incharge four personnel namely speed boss, gang boss, repair boss, and inspector would work.
Explanation:
Under planning incharge four personnel namely instruction card clerk, route clerk, time and cost clerk and a disciplinarian worked. These four personnel would draft instructions for the workers, specify the route of production, prepare time and cost sheet and ensure discipline respectively.
Question 21.
Shashi joined ‘Fashion Ltd.’ as Head of Production Department and realized that company was not performing well. She developed the best method using several parameters right from deciding the sequence of operations, place of men, machines and raw materials till the delivery of the product to the customers. Identify the technique of scientific management being followed by Shashi.
(A) Motion study
(B) Fatigue study
(C) Method study
(D) Time study
Answer:
(C) Method study
Explanation:
The objective of method study is to find out one best way of doing the job. To conduct this study, process chart and operation research techniques are used. The main objective of this study is to minimise the cost of production and maximise the quality and level gj of consumer satisfaction.
Question 22.
Why did F.W Taylor propose eight specialists under Functional Foremanship?
(A) Because all qualities like intelligence, education, tact, grit, manual dexterity, energy, etc., could not be found in a single person.
(B) Because the number of foremen or supervisors in a factory set-up is very large.
(C) Because the number of workers in a factory set¬up is very large.
(D) All of the above.
Answer:
(A) Because all qualities like intelligence, education, tact, grit, manual dexterity, energy, etc., could not be found in a single person.
Explanation:
Taylor concentrated on improving the performance of this role in the factory set- up. In fact, he identified a list of qualities of a good foreman supervisor and found that no single person could fit them all. This prompted him to suggest functional foremanship through f eight persons.
Question 23.
Which of the following is an objective of standardization?
(A) To reduce a given line or product to fixed types, sizes and characteristics.
(B) To establish interchange ability of manufactured parts and products.
(C) To establish standards of excellence and quality in materials and of performance of men and machines.
(D) All of the above
Answer:
(D) All of the above
Explanation:
In order to ensure uniformity in work operations, work should be standardised. It ensures that everyone works according to same standards framed in respect of time, cost, amount of work, working conditions, quality of work, etc.
Question 24.
Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions, etc., which are undertaken while doing a typical job. This helps to classify motions as:
(A) Productive
(B) Incidental
(C) Unproductive
(D) All of these
Answer:
(D) All of these
Explanation:
Motion study helps to find out the best way of doing the work. It studies the motions that a worker carries out while performing a job, eliminates unnecessary or wasteful’motions that result in fatigue and extra time to perform the work, arrives at the best combination of motions or the minimum time required to perform the work to improve efficiency and determine the standard motion for performing the given task.
Question 25.
Which of the following activities are associated with ‘Mental Revolution’ on the part of management and workers?
(A) Trade unions not going on strike.
(B) Management sharing the gains of the company with the workers.
(C) Workers working hard and be willing to embrace change for the good of the company.
(D) All of the above
Answer:
(D) All of the above
Explanation:
Mental revolution involvesa change in the attitude of workers and management towards one another from competition to cooperation. Both should realise that they require one another. Both should aim to increase the size of surplus. This would eliminate the need for any agitation, Management should share a part of surplus with workers. Workers should also contribute their might so that the company makes profits.
Question 26.
Name the principle of Scientific Management which suggests the introduction of scientific investigation and analysis.
(A) Science, not rule of thumb
(B) Harmony not discord
(C) Cooperation not individualism
(D) Development of each person to her/his greatest efficiency and prosperity
Answer:
(A) Science, not rule of thumb
Explanation:
This rule focuses on increasing the efficiency of an organisation through scientific analysis of work and not with the ‘Rule of Thumb’ method.
Question 27.
Which technique of Taylor differentiates between an efficient worker and an inefficien workre
(A) Standardisation and simplification of work
(B) Differential piece wage system
(C) Time study
(D) Fatigue study
Answer:
(B) Differential piece wage system
Explanation:
Taylor has advised the adoption of differential wage systems in order to motivate the employees. According to this system, the efficient workers should be paid more wages than inefficient one. This system is a source of incentive to workers whoimprove their efficiency in order to get more wages. It also encourages inefficient workers to improve their performance and achieve their standards.
Question 28.
Amrita keeps machines, materials, tools, etc. ready for operations by concerned workers. Whose work is described by this statement under functional foremanship?
(A) Gang Boss
(B) Repair Boss
(C) Route Clerk
(D) Speed Boss
Answer:
(A) Gang Boss
Explanation:
Gang boss performs the preliminary operations regarding how workers should work on the machine. He also decides f about which physical resources such as tools and equipment, etc. are required at the work place and arranges for them.
Question 29.
Match the PERSONNEL UNDER PRODUCTION INCHARGE in Column I with their RESPONSIBILITIES in Column II.
| Column I | Column II |
| (a) Speed boss | (i) Keeping machines and tools, etc., ready for operation by workers. |
| (b) Gang boss | (ii) Ensuring proper working condition of machines and tools. |
| (c) Repair boss | (iii) Checking the quality of work. |
| (d) Inspector | (iv)Timely and accurate completion of job. |
(A) (i), (ii), (iii), (iv)
(B) (iv), (i), (ii), (iii)
(C)(iii),(iv),(i),(ii)
(D) (iv), (i), (iii), (ii)
Answer:
(B) (iv), (i), (ii), (iii)
Question 30.
Match the PERSONNEL UNDER PLANNING INCHARGE in Column I with their RESPONSIBILITIES in Column II.
| Column I | Column II |
| (a) Instruction card clerk | (i) Specify the route of production |
| (b) Route clerk | (ii) Ensure discipline |
| (c) Time and cost clerk | (iii) Draft instructions for the workers |
| (d) Disciplinarian | (iv) Prepare time and cost sheet |
(A) (i), (ii), (iii), (iv)
(B) (iv), (i), (ii), (iii)
(C) (iii), (iv), (i), (ii)
(D) (iv), (i), (ii), (iii)
Answer:
(B) (iv), (i), (ii), (iii)
Assertion and Reason Based MCQs
Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Question 1.
Assertion (A): Principles of management are universally applicable.
Reason (R): The principles of man agement can be applied to all types of organisations.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
The principles of management are universal in nature that means they can be applied to all types of organisations irrespective of their size and nature. Their results may vary and application may be modified but these are suitable for all kinds of organisations.
Question 2.
Assertion (A): The application of principles of management is contingent.
Reason (R): The principles of management are not rigid prescriptions, which have to be followed absolutely.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
The application of principles of management is dependent upon the prevailing situation at a particular point of time. It has to be changed as per the requirements. Principles of management are flexible and can be modified by the manager when the situation so demands.
Question 3.
Assertion (A): Managerial principles help the management to come out with the methods that help in reducing wastages.
Reason (R): Principles of management cannot be modified.
Answer:
(C) (A) is true, but (R) is false.
Explanation:
As the principles of management can be modified, they help the managers to meet the changing environment requirements.
Question 4.
Assertion (A): Principles of management help the managers in taking decisions based on the objective assessment of the situation.
Reason (R): Managerial decisions must be timely and realistic.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
An effective decision must be based on facts, thoughtful and justifiable in terms of the required purpose. Decisions must be timely and realistic. Principles of management help the managers in taking decisions based on the objective assessment of the situation, free of any bias and prejudice.
Question 5.
Assertion (A): Segregating work in the workforce amongst the worker will enhance the quality of the product.
Reason (R): Division of work leads to specialization.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
Division of work leads to specialization, and specialization helps to increase efficiency, which results in improvement in the productivity and profitability of the organization.
Question 6.
Assertion (A): In an organization, there should be a chain of superiors ranging from the ultimate authority to the lowest.
Reason (R): Managers require authority commensurate with their responsibility.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
There should be a balance between Authority and Responsibility. Authority facilitates the management to work efficiently, and responsibility makes them responsible for the work done under their guidance or leadership.
Question 7.
Assertion (A): There should be one and only one boss for every individual employee.
Reason (R): If an employee has to follow more than one boss, there begins a conflict of interest and can create confusion.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. He felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”.
Question 8.
Assertion (A): Managerial activities should be divided into two parts, i.e., planning and production.
Reason (R): In a functional organisation, work is divided into many small parts and each part is assigned to an expert.
Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
Explanation:
Functional foremanship is an extension of the principle of division of work § and specialisation to the shop floor. In order to improve the quality of the supervision of workers at the supervisor level, Taylor developed the concept of functional foremanship. He advocated the separation of planning and execution functions.
Question 9.
Assertion (A): Method study make the use of many techniques like process charts and operations research to achieve its main objective.
Reason (R): The main objective of the method study is to minimise the cost of production and maximise the quality and level of consumer satisfaction
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
The managers come across numerous ways of performing a particular task or carrying out the production of goods or services. Out of all these possible methods, selection of the most appropriate way, which is cost-effective and also increases the production is considered a method study.
Question 10.
Assertion (A): Time study helps in deciding the number of workers to be employed, frame suitable incentive schemes and determine labour costs.
Reason (R): It is a technique to determine the standard time taken by a worker of reasonable skill and efficiency to perform a well-defined job.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Question 11.
Assertion (A): There should be complete co-operation between the labour and the management instead of individualism.
Reason (R): The employees in an organization must work together, keeping aside their objectives and ego to achieve the common goals set by the management.
Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
Cooperation, mutual confidence, sense of goodwill should prevail among both, managers as well as workers. he intention is to replace internal competition with cooperation.
I. Read the following text and answer the following questions on the basis of the same:
After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.
In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honour her commitment by giving bonus to her employees.
She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees.
Case-Based MCQs
Question 1.
Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?
(A) Centralization and Decentralization
(B) Division of work
(C) Discipline
(D) Order
Answer:
(B) Division of work
Explanation:
Henri Fayol has stressed on the specialization of jobs. He recommended that work of all kinds must be divided and subdivided and allotted to various perso according to their expertise in a particular area. Subdivision of work makes it simpler and results in efficiency.
Question 2.
The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.” Identify the principle of Management being followed here:
(A) Centralization and Decentralisation
(B) Authority and Responsibility
(C) Unity of Command
(D) Unity of Direction
Answer:
(A) Centralization and Decentralisation
Explanation:
Centralization meansconcentration of authority at the top level. In f other words, centralization is a situation in which top management retains most of the decision making authority. Decentralization means disposal of decision making authority to all the levels of the organization. In other words, sharing authority downwards is decentralization.
Question 3.
“Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?
(A) Discipline
(B) Order
(C) Remuneration to Employees
(D) Unity of Direction
Answer:
(A) Discipline
Explanation:
This principle applies that subordinate should respect their superiors and Obey their order.Discipline is an important requisite for smooth running of the enterprise.
Question 4.
Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?
(A) Discipline
(B) Order
(C) Equity
(D) None of these
Answer:
(C) Equity
Explanation:
Equity means combination of fairness, kindness and justice. The employees should be treated with kindness and equity if devotion is expected of them. It implies that managers should be fair and impartial while dealing with the subordinates.
II. Read the following text and answer the questions given below:
Shruti, a student of management at MDI, Gurgaon, likes to relate what she has learnt in her classes during study to real life situations around her. She observed many situations while watching educational programmes on television that remind her of concepts of Scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast.
These factories had defined benchmarks during production and were continuously aiming at eliminating unnecessary diversity of products. Thus, they aimed at eliminating superfluous varieties, sizes and dimensions and devising new varieties instead of the existing ones. While watching the programme, Shruti realized that these companies could adopt one best way of doing the job in order to be more productive.
She also felt that the employees of these companies were working for long hours continuously and needed to adopt certain strategies in order to improve their efficiency. The programme also showed a few interviews where some workers were found to be highly efficient as compared with a few others.
Question 1.
Name the technique of Scientific Management that these factories are adhering to while manufacturing parts for such products.
(A) Method Study
(B) Motion Study
(C) Standardisation and simplification of work
(D) Time Study
Answer:
(C) Standardisation and simplification of work
Question 2.
Which Scientific Management technique would Shruti recommend for these factories if they have to find out one best way of doing the job?
(A) Motion Study
(B) Time Study
(C) Method Study
(D) Fatigue Study
Answer:
(C) Method Study
Explanation:
The objective of method study is to find out one best way of doing the job. There are various methods of doing the job.
Question 3.
Which Scientific Management technique would Shruti suggest for these factories if they have to help the workers regain their stamina and enable them to work again with the same capacity?
(A) Motion Study
(B) Time Study
(C) Method Study
(D) Fatigue Study
Answer:
(D) Fatigue Study
Explanation:
Fatigue study seeks to determine I the amount and frequency of rest intervals in I completing a task.
Question 4.
Which Scientific Management technique would Shruti advise these factories to implement in order to motivate the inefficient workers to perform better?
(A) Functional foremanship
(B) Method Study
(C) Time Study
(D) Differential Piece Wage System
Answer:
(D) Differential Piece Wage System
Explanation:
This technique of wage payment is based on efficiency of workers. The efficient workers are paid more wages than inefficient one. On the other hand, those workers who produce less than standard number of pieces are paid wages at lower rate than prevailing rate i.e. worker is penalized for his inefficiency.
III. Read the following text and answer the questions given below:
Tasty Ice Creams Ltd. is a very famous company in Indore and has many branches in different parts of the dty. They also have major expansion plans as they expect that their customers will increase in number in the next two years. Tasty Ice Creams Ltd. produces a variety of ice-creams which are extremely popular in the city and one brand of ice-cream ‘Magic’ sells the most.
Thus, the company undertakes the maximum production for ‘Magic’
and it contributes to their revenue to the extent of 25% and has the largest market share. The company has undertaken different strategies to ensure that they remain the market leader in Indore. One of the methods it follows is Differential Piece Wage System to differentiate between efficient and inefficient workers. It is so because the company believes that in this way its inefficient workers would be encouraged to perform better and improve their productivity.
This will motivate them to be at par with the efficient workers. Thus, Tasty Ice Creams Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ? 50 per unit and those below will get ? 40 per unit
Question 1.
What will be the earnings of a worker producing 15 units?
(A) ₹ 600
(B) ₹ 750
(C) ₹ 400
(D) ₹ 500
Answer:
(B) ₹ 750
Explanation:
Output is more than standard Earnings 15 units X ₹ 50 = ₹ 750
Question 2.
Such a worker producing 15 units is termed as………
(A) Efficient
(B) Inefficient
(C) Both Efficient and Inefficient
(D) Neither Efficient nor Inefficient
Answer:
(A) Efficient
Question 3.
What will be the earnings of a worker producing 7 units?
(A) ₹ 350
(B) ₹ 400
(C) ₹ 280
(D) ₹ 500
Answer:
(C) ₹ 280
Explanation:
Output is less than standard. Earnings 7 units x ₹ 40 = ₹ 280
Question 4.
Such a worker producing 7 units is termed as ………..
(A) Efficient
(B) Inefficient
(C) Both Efficient and Inefficient
(D) Neither Efficient nor Inefficient
Answer:
(B) Inefficient
IV. Read the following text and answer the questions given below:
Amisha did her MBA from IIM Bangalore and decided to begin her own company. Now she is the proprietor of ABC Foods Pvt. Ltd. which is into the production of packaged foods and beverages. She has started on a small-scale but decided that there will be separate departments for finance, marketing, production and sales in her company so that later on when the scale of operations increases, the functions and processes are streamlined.
She has plans for expansion over the next 5 years but plans to limit the major decision making powers to herself as she is yet to build a strong and reliable team. She has also worked out a fair and reasonable structure for the overall pay and compensation to be paid to the employees on the basis of a combination of various methods. She also wants to ensure that her employees stay with the company for longer durations so that the funds invested in their training do not go waste. Thus, she has taken some measures to minimize employee turnover.
Identify the principles of management that Amisha is adhering to from the following sentences given in the passage.
Question 1.
“…………… there will be separate departments for finance, marketing, production and sales ………..”
(A) Division of Work
(B) Discipline
(C) Scalar Chain
(D) Unity of Direction
Answer:
(A) Division of Work
Question 2.
“…………. but plans to limit the major decision making powers to herself.”
(A) Order
(B) Discipline
(C) Centralisation and Decentralisation
(D) Unity of Command .
Answer:
(C) Centralisation and Decentralisation
Question 3.
“………….. fair and reasonable structure for the overall pay and compensation to be paid to the employees…”
(A) Remuneration of Employees
(B) Discipline
(C) Esprit de Corps
(D) Stability of Personnel
Answer:
(A) Remuneration of Employees
Explanation:
Remuneration plays an important role in motivating the workers of a company. Remuneration can be monetary or non- monetary. However, it should be according to an individual’s efforts they have made.
Question 4.
“………… she has taken some measures to minimize employee turnover.”
(A) Remuneration of Employees
(B) Order
(C) Initiative
(D) Stability of Personnel
Answer:
(D) Stability of Personnel
Explanation:
An employee delivers the best if they feel secure in their job. It is the duty of the management to offer job security to their employees. So stability in tenure of personnel is good for the business.