Principles of Management
CHSE Commerce • Board Exam Practice
50 Short & Long Answer Questions | Easy → Moderate → Hard
📚 CHSE Examination Question Bank
This question bank contains 50 important questions based on Principles of Management. Questions are arranged topic-wise and gradually increase in difficulty. Each question is followed by a concise explanation/answer for revision.
Topics Covered: Meaning, Features, Objectives and Importance of Principles of Management, Henri Fayol’s 14 Principles and Taylor’s Scientific Management Techniques.
1. Meaning of Principles of Management
Principles of Management are general guidelines that help managers in making decisions and performing managerial activities effectively. They provide a framework for dealing with different managerial situations.
Principles of Management are broad and general statements which provide guidance to managers in managing organisational activities and achieving organisational objectives.
Management principles are called guidelines because they do not provide fixed solutions for every situation. Managers use them according to the nature and requirements of a particular situation.
Principles of Management are general guidelines developed from managerial experience, observation and experimentation. They help managers make decisions and solve organisational problems.
Example: The principle of Division of Work suggests that work should be divided among employees according to their specialisation. This can improve efficiency and productivity.
Management principles are flexible guidelines rather than rigid rules. Their application changes according to the situation, organisation, employees and environment.
- They are not absolute.
- They can be modified according to circumstances.
- Different organisations may apply the same principle differently.
- Managers use their judgement while applying them.
2. Features of Principles of Management
- They are universal in nature.
- They are flexible in application.
Yes. Management principles have broad applicability in different types of organisations. However, the manner in which they are applied may differ according to circumstances.
- Universal applicability: They can be applied in different organisations.
- General guidelines: They guide managers rather than provide fixed solutions.
- Flexible: They can be modified according to circumstances.
- Based on experience: Many principles have developed through observation, experimentation and managerial experience.
Management principles are flexible because business situations keep changing. Managers may modify the application of a principle depending on organisational objectives, employee behaviour, technology and the external environment.
Management principles can be used in different organisations, making them universal in nature. However, managers cannot apply them blindly. Their application depends on the size, nature, employees, technology and circumstances of an organisation.
Therefore, the principles are generally universal but their practical application is situational.
3. Objectives and Importance of Principles of Management
The main objective is to provide useful guidance to managers so that organisational activities can be performed effectively and efficiently.
- To provide guidance to managers.
- To improve managerial efficiency.
- Providing guidance: They help managers deal with managerial problems.
- Improving efficiency: They help managers use organisational resources effectively.
- Better decision-making: They provide a logical basis for managerial decisions.
- Achieving organisational goals: They help coordinate activities towards common objectives.
Management principles guide managers in the proper utilisation of men, money, materials and other resources. They reduce unnecessary activities, improve coordination and help managers select appropriate methods of work.
- Providing managers with useful guidance: They help managers handle different organisational situations.
- Optimum utilisation of resources: They help avoid wastage of resources.
- Scientific decision-making: They provide a systematic basis for managerial decisions.
- Meeting changing environment: Flexible principles help managers respond to environmental changes.
- Employee development: Proper management principles help create a better working environment.
- Achieving organisational objectives: They help coordinate organisational activities towards common goals.
4. Henri Fayol’s 14 Principles of Management
Henri Fayol, a French management thinker, gave the 14 Principles of Management.
- Division of Work
- Authority and Responsibility
- Discipline
- Unity of Command
Division of Work means dividing a job into smaller specialised tasks and assigning them to suitable employees. It promotes specialisation and increases efficiency.
Authority is the right to give orders and take decisions, while responsibility is the obligation to perform assigned duties. Fayol stated that authority and responsibility should go together.
Unity of Command means that an employee should receive orders from only one superior.
Discipline means obedience, respect for rules and agreements of the organisation. Both employees and management should follow organisational rules to maintain order and smooth functioning.
Unity of Direction means that activities having the same objective should have one head and one plan.
Example: All activities related to a particular marketing objective should follow a coordinated plan under one head.
Remuneration means the compensation paid to employees for their services. Fayol stated that remuneration should be fair and satisfactory to both employees and the organisation.
Scalar Chain is the formal line of authority that runs from the highest level of management to the lowest level.
It establishes a clear communication and authority structure within the organisation.
Equity means fairness and justice in the treatment of employees. Managers should treat employees fairly and without unnecessary discrimination.
Employees should be given reasonable stability in their positions. Frequent and unnecessary employee turnover can reduce efficiency and increase organisational costs.
Initiative means giving employees opportunities to think, suggest ideas and take appropriate action. It develops confidence and encourages creativity.
Esprit de Corps means team spirit. Fayol emphasised the importance of unity, harmony and cooperation among employees.
- Division of Work: Work should be divided according to specialisation.
- Authority and Responsibility: Authority and responsibility should go together.
- Discipline: Employees should respect rules and agreements.
- Unity of Command: An employee should receive orders from one superior.
- Unity of Direction: One head and one plan should exist for activities having the same objective.
- Subordination of Individual Interest to General Interest: Organisational interest should receive priority over individual interest.
- Remuneration: Employees should receive fair and satisfactory compensation.
- Centralisation and Decentralisation: The appropriate degree of concentration of authority should be maintained.
- Scalar Chain: There should be a clear formal line of authority.
- Order: There should be a proper place for everything and everyone.
- Equity: Employees should be treated fairly and justly.
- Stability of Personnel: Unnecessary employee turnover should be avoided.
- Initiative: Employees should be encouraged to take initiative.
- Esprit de Corps: Team spirit and unity should be promoted.
- Unity of Command: It concerns employees and states that one employee should receive orders from one superior.
- Unity of Direction: It concerns activities and states that activities having the same objective should have one head and one plan.
Thus, Unity of Command is related to one employee–one superior, while Unity of Direction is related to one objective–one plan–one head.
5. Taylor’s Scientific Management Techniques
F.W. Taylor is known as the Father of Scientific Management.
Scientific Management is the systematic study of work methods to increase efficiency, productivity and reduce unnecessary effort and wastage.
- Time Study
- Motion Study
- Method Study
- Fatigue Study
Time Study determines the standard time required by a qualified worker to complete a particular task under specified working conditions.
Its objective is to establish a reasonable standard time for work.
Motion Study analyses the movements performed by workers while doing a job. Unnecessary movements are identified and eliminated to improve efficiency.
Method Study determines the best method of performing a particular job by comparing different methods of doing the work.
Fatigue Study determines the amount and frequency of rest intervals required by workers to reduce fatigue and maintain efficiency.
Under Differential Piece Wage System, different wage rates are paid to efficient and inefficient workers.
Workers who achieve or exceed the standard output receive a higher piece rate, while workers who fail to achieve the standard receive a lower rate.
The system is designed to encourage higher productivity.
Functional Foremanship is a technique of Scientific Management in which supervision is divided among specialised foremen.
Taylor suggested that specialised supervisors should handle different aspects of planning and execution rather than one supervisor performing all functions.
Standardisation means establishing standards for materials, tools, equipment and methods of work.
Simplification means reducing unnecessary varieties, sizes and types of products or processes.
Both help reduce cost, wastage and unnecessary complexity.
- Functional Foremanship: Supervision is divided among specialised foremen.
- Standardisation and Simplification: Standards are established and unnecessary varieties are reduced.
- Method Study: The best method of performing a job is identified.
- Motion Study: Unnecessary worker movements are eliminated.
- Time Study: Standard time required for a job is determined.
- Fatigue Study: Suitable rest intervals are determined.
- Differential Piece Wage System: Different wage rates are used to reward efficient workers.
- Time Study: Determines the standard time required to complete a job.
- Motion Study: Studies the movements involved in performing a job and eliminates unnecessary movements.
In simple terms, Time Study focuses on “How much time?”, whereas Motion Study focuses on “Which movements are necessary?”
- Method Study: Finds the best method of performing a job.
- Motion Study: Studies and eliminates unnecessary movements of workers.
These techniques work together to improve efficiency.
- Time Study determines the standard time for completing a task.
- Motion Study removes unnecessary movements.
- Fatigue Study determines appropriate rest intervals.
Together, they help increase productivity while reducing unnecessary effort and worker fatigue.
Taylor’s Differential Piece Wage System provides different piece rates to workers depending on their level of efficiency.
- Efficient workers receive a higher rate.
- Workers below the standard receive a lower rate.
- It encourages workers to achieve the standard output.
- It aims to increase productivity.
- It links wages with performance.
6. Integrated CHSE Board-Style Questions
Both concepts aim at improving organisational efficiency, but their focus is different.
- Principles of Management: They provide broad guidelines for managers.
- Scientific Management: It focuses on scientific methods for improving efficiency, especially in operational work.
- Fayol: Focused mainly on administrative management.
- Taylor: Focused mainly on scientific management of work and workers.
The relevant principle is Unity of Command.
According to this principle, an employee should receive orders from only one superior. Receiving orders from multiple superiors may create confusion, conflict and lack of accountability.
- Motion Study: Studies and eliminates unnecessary movements.
- Time Study: Determines the standard time required to complete the work.
- Fatigue Study: Determines appropriate rest intervals to reduce fatigue.
Division of Work is a Fayol principle. It divides work among employees according to specialisation. Specialisation improves skill, speed and efficiency.
Time Study is a Taylor technique. It determines the standard time required by a qualified worker to complete a particular task.
Thus, Division of Work focuses on specialisation, while Time Study focuses on determining standard time.
Henri Fayol
Henri Fayol developed general principles of management and identified 14 principles such as Division of Work, Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Equity, Initiative and Esprit de Corps.
F.W. Taylor
F.W. Taylor developed Scientific Management. He emphasised scientific methods, efficiency and productivity. His important techniques include Time Study, Motion Study, Method Study, Fatigue Study, Functional Foremanship and Differential Piece Wage System.
Conclusion: Fayol contributed mainly to administrative management, whereas Taylor contributed mainly to scientific management and operational efficiency. Together, their ideas made an important contribution to modern management thought.