12 COMMERCE | PRINCIPLES OF MANAGEMENT - TEXTBOOK EVALUATION WITH KEY ANSWERS | CHAPTER - 1

 PRINCIPLES OF MANAGEMENT 

CHAPTER - 1

I. Choose the correct answer.

1.   Management is what a ________ does?
      a)  Manager
      b)  Subordinate
      c)  Supervisor
      d) Superior
      Ans: a) Manager

2.   Management is an ________.
      a)  Art
      b)  Science
      c)  Art and Science
      d) Art or Science
      Ans: c) Art and Science

3.   Scientific management is developed by
      a)  Fayol
      b)  Taylor
      c)  Mayo
      d) Jacob
      Ans: b) Taylor

 4.   Dividing the work into small tasks is known as
      a)  Discipline
      b)  Unity
      c)  Division of work
      d) Equity
      Ans: c) Division of work

5.   With a wider span, there will be ________ hierarchical levels.

a)  More

b)  Less
      c)  Multiple
      d) Additional
      Ans: b) Less

II. Very short answer questions.

1.       What is Management?

“Management” is a distinct ongoing process of allocating inputs of and organisation [Human and Economic resources] by typical managerial functions [Planning, organising, Directing and Controlling] for the purpose of achieving stated objectives [Output of goods and Services] desired by its customer.

2.      List out the management tools. (BASED)

·        Business Law

·        Accounting

·        Statistics

·        Economics

·        Data processing       

3.     State the meaning of Authority.

“Authority” means the right of a superior given to his subordinate to get work from him.

4.     What do you mean by Span of management?

        Can a superior effectively manage, supervise and control how many number of subordinates. It is known as “Span of control” or “Span of Management” 

III. Short answer questions.

1.     Define the term management.

“Management is a multi purpose organ that manages a business, and manages manager and manages workers and work”. 

 – PETER F. DRUCKER.

2.     Differentiate management from Administration. (any 3)

        Basis of Difference | Management | Administration

    ·   Meaning | An organised way of managing people and things of a business organization is called the ‘Management’ | The process of administering an organisation by a group of people is known as the ‘Administration

    ·        Authority | Middle and Lower level.| TOP level

    ·        Concerned with | Policy implementation | Policy formulation

    ·   Area of operation | It works under administration | It has full control over the activities of the organisation.

    ·      Role | Executive | Decisive

    ·       Decides | Who will do the work? and How it will be done? | What should be done? When it should be done? 

3.     What are the principles of Taylor? 

Division of Work:

·        Science, not a Rule of Thumb.

·        Hormony, not Discord.

·        Mental Revolution 

·        Cooperation, not Individualism

·        Development of each and every person to his or her greatest efficiency and prosperity.

4.     What determines the span of management?

        Span of Management has two implications:

        i) Influences the complexities of the individual Manager’s job.

        ii) Determine the shape or configuration of the Organisation.

        It has two horizontal levels of span of management.

        i) Wider span

        ii) Narrow span

        Wider – Span – Less hierarchical levels – more subordinates – Less expensive.

        Narrow – Span – more hierarchical levels – less subordinates – more expensive.

IV. Long answer questions

1.     Explain the concept of management. (any 5)

        1. Body of Knowledge : Management has now developed into a specialised body of management theory and philosophy. Management literature is growing in all countries.

        2. Management Tools : Tools of management have been developed such as, accounting, business law, psychology, statistics, econometrics, data processing, etc.

        3. Separate Discipline : Management studies in many universities and institutions of higher learning are recognised as a separate discipline.

        4. Specialisation : There is a growing tendency to select and appoint highly qualified, trained and experienced persons to manage the business in each functional areas of management.

        5. Code of Conduct : Enlightened businessmen have recognised that business management is a social institution and it has social responsibilities to be fulfilled towards customers, employees, and the public or community.

        6. Professional Association :

            The Business Management Associations in many countries to promote the spread of knowledge in all management areas and to build up the bright public image of managerial profession.

2.     Explain the principles of modern management. (any 5)

Division of Work:

·        The whole work divided into small tasks.

·        It is known as Departmentation.

·        The specialization of the work force according to the skills of a person.

·        Specialization leads to increase the efficiency of labour.

·        Thus productivity increased.

Authority and Responsibility:

·     Authority means the right of a superior given to the subordinate to get work from him.

·     Responsibility means obligation for performance.

Discipline:

·     It is obedience, proper conduct, in relation to others, respect of authority etc.

·     It is essential for the smooth functioning of all organisations.

Unity of Command:

·     One Employee should have only one Boss.

·     Each employee should receives orders from one superior.

·     If an employee receives orders from more than one superior, it leads to confusion and conflict.

Scalar chain [Line of Authority]:

·   The line of Authority must flow downwards from the Highest Executive to lower level workers. [Top to Bottom]

·     It is also known as “Chain of Command”.

Remuneration:

·     Workers must be paid sufficiently.

·     It is the chief motivation of employees.

·     It influences greater productivity.

·     Remuneration should be fair, reasonable and rewarding of effort.

Unity of Direction:

·     All related activities should be put under one group.

·     There should be one plan of action for them.

·     They should be under the control of one Manager.