Business Studies

Fayol’s principles of management

Q: An employee voluntarily gives an idea for improving work. Which principle is illustrated?

Initiative The governing concept is Fayol’s principle of initiative. Initiative means giving employees an opportunity to think, suggest improvements and take suitable action within the limits of organisational authority. When an employee voluntarily proposes an idea for improving work, the employee is showing willingness to use judgement and contribute beyond merely following routine instructions. Therefore, option A is correct. Discipline refers to obedience to rules and agreements, order refers to the proper placement of people and materials, and remuneration refers to payment for services. Those principles may also support the workplace, but they do not specifically describe an employee’s voluntary suggestion. The key clue is the employee’s own constructive idea.

Q: Increasing mutual trust and cooperation in a team is related to which principle?

Esprit de corps Esprit de corps increases cooperation and team unity. Exam tip: connect trust and cooperation with team spirit.

Q: Allocating work according to ability is an example of which principle?

Division of work Allocating work according to ability increases specialisation. Exam tip: connect ability based allocation with division of work.

Q: If an employee has responsibility to achieve a target what should he get?

Proper authority Necessary authority should accompany responsibility. Exam tip: remember responsibility needs authority.

Q: Which principle describes the formal chain of command from top to bottom?

Scalar chain The governing concept is Fayol’s principle of scalar chain. Scalar chain is the formal line of authority running from the highest managerial position to the lowest level in an organisation. It shows who reports to whom and normally provides the route through which orders, information and responsibility move. Therefore, option A is correct. Equity means fair and kind treatment of employees, remuneration means appropriate payment for services, and initiative means allowing employees to think and suggest improvements. These are important management principles, but none describes the hierarchical communication and authority route. The phrase “formal chain of command from top to bottom” is the defining clue for scalar chain.

Q: Why do officers at the same level communicate directly through a gang plank?

For quick decision-making and communication The governing concept is the gang plank, a permitted shortcut within Fayol’s scalar chain. Normally, communication follows the formal line of authority, but when officers at the same level need to exchange information, passing through every intermediate superior can waste time. With proper permission and the knowledge of relevant superiors, a gang plank allows direct communication and faster decisions while preserving overall discipline and accountability. Therefore, option A is correct. It is not designed to stop wages, abolish discipline or conceal rules. The gang plank is an exception that improves speed; it does not reject the scalar chain or replace the formal structure permanently.

Q: Following rules and agreements identifies which principle?

Discipline The direct answer is A: discipline. Discipline means respect for and obedience to the rules, agreements, orders, and accepted standards of an organisation. The wording ‘rules and agreements’ is the strongest clue. Step by step: rules establish expected conduct; agreements create mutual obligations; employees and managers follow them; and orderly work becomes possible. Option A is correct because it names the principle directly. Option B, equity, means fairness and justice in treatment, not specifically obedience to rules. Option C, initiative, means encouraging ideas and constructive action. Option D, decentralisation, means distributing decision authority to lower levels. Those concepts may also matter in management, but none matches the stated clue as precisely as discipline. Exam cue: rules plus agreements equals discipline.

Q: Which principle keeps organisational goal above personal goal?

Subordination of individual interest to general interest In this principle organisational general interest comes first. Exam tip: remember organisation above individual.

Q: If all decisions are taken at head office this is related to what?

Centralisation Decision authority concentrated at head office is centralisation. Exam tip: connect head office decision with centralisation.

Q: If a branch manager gets authority to take local decisions this is an example of what?

Decentralisation Giving authority at lower or local level is decentralisation. Exam tip: connect branch authority with decentralisation.

In Class 12 Business Studies, this topic introduces Henri Fayol’s principles of management as practical guidelines for understanding how organisations are planned, coordinated and controlled. Students explore ideas such as division of work, authority and responsibility, discipline, unity of command, unity of direction, scalar chain, equity and esprit de corps. The topic also helps them connect these principles with everyday managerial decisions and organisational functioning within the broader chapter, Principles of Management.

Easy · Level 4 · 25 questions

Practice questions

01An employee voluntarily gives an idea for improving work. Which principle is illustrated?

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Answer and explanation

Correct answer: A. Initiative

The governing concept is Fayol’s principle of initiative. Initiative means giving employees an opportunity to think, suggest improvements and take suitable action within the limits of organisational authority. When an employee voluntarily proposes an idea for improving work, the employee is showing willingness to use judgement and contribute beyond merely following routine instructions. Therefore, option A is correct. Discipline refers to obedience to rules and agreements, order refers to the proper placement of people and materials, and remuneration refers to payment for services. Those principles may also support the workplace, but they do not specifically describe an employee’s voluntary suggestion. The key clue is the employee’s own constructive idea.

Fayol’s principles of management

Practice questions

02Increasing mutual trust and cooperation in a team is related to which principle?टीम में आपसी विश्वास और सहयोग बढ़ाना किस सिद्धांत से जुड़ा है?

03Allocating work according to ability is an example of which principle?काम को योग्यता के अनुसार बाँटना किस सिद्धांत का उदाहरण है?

04If an employee has responsibility to achieve a target what should he get?यदि कर्मचारी पर लक्ष्य पूरा करने की जिम्मेदारी है तो उसे क्या मिलना चाहिए?

05Which principle describes the formal chain of command from top to bottom?ऊपर से नीचे तक आदेश और अधिकार की औपचारिक रेखा को कौन-सा सिद्धांत बताता है?

06Why do officers at the same level communicate directly through a gang plank?गैंग प्लैंक में समान स्तर के अधिकारी सीधे संवाद क्यों करते हैं?

07Following rules and agreements identifies which principle?नियमों और समझौतों का पालन किस सिद्धांत की पहचान है?

08Which principle keeps organisational goal above personal goal?संगठन का लक्ष्य व्यक्तिगत लक्ष्य से ऊपर रखने वाला सिद्धांत कौन सा है?

09If all decisions are taken at head office this is related to what?यदि सभी निर्णय मुख्य कार्यालय में लिए जाते हैं तो यह किससे जुड़ा है?

10If a branch manager gets authority to take local decisions this is an example of what?यदि शाखा प्रबंधक को स्थानीय निर्णय लेने का अधिकार मिलता है तो यह किसका उदाहरण है?

11The idea of one plan for one objective comes under which principle?एक उद्देश्य के लिए एक योजना का विचार किस सिद्धांत में आता है?

12An employee receives orders only from his department head. Which principle is applied?एक कर्मचारी को केवल अपने विभाग प्रमुख से आदेश मिलता है। कौन सा सिद्धांत लागू है?

13Which principle can reduce repetition and increase expertise?किस सिद्धांत से काम की पुनरावृत्ति कम और विशेषज्ञता अधिक हो सकती है?

14Giving responsibility without authority is against which principle?जिम्मेदारी देकर अधिकार न देना किस सिद्धांत के विरुद्ध है?

15Fair wages keep employees satisfied and motivated. Which principle is applied?उचित वेतन से कर्मचारी संतुष्ट और प्रेरित रहते हैं। कौन सा सिद्धांत लागू है?

16A combination of justice and kindness is the essence of which principle?न्याय और दयालुता का मिश्रण किस सिद्धांत का सार है?

19The feeling that “we are one” in a team is a sign of which principle?टीम में “हम सब एक हैं” की भावना किस सिद्धांत का संकेत है?

20Placing the right person in the right position is related to which principle?सही व्यक्ति को सही पद पर रखना किस सिद्धांत से संबंधित है?

21In a scalar chain, communication normally follows what?स्केलर श्रृंखला में संचार सामान्यतः किसका पालन करता है?

22In an emergency two same level officers talk directly. What is it called?आपात स्थिति में समान स्तर के दो अधिकारी सीधे बात करते हैं। इसे क्या कहते हैं?

23What problem may arise due to too much centralisation?बहुत अधिक केन्द्रीकरण से कौन सी समस्या हो सकती है?

24What may increase among lower managers through decentralisation?विकेन्द्रीकरण से निचले प्रबंधकों में क्या बढ़ सकता है?

25Which option contains a correct group of Fayol's principles?किस विकल्प में फेयोल के सही सिद्धांतों का समूह है?

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Analytics choices

02Increasing mutual trust and cooperation in a team is related to which principle?

03Allocating work according to ability is an example of which principle?

04If an employee has responsibility to achieve a target what should he get?

05Which principle describes the formal chain of command from top to bottom?

06Why do officers at the same level communicate directly through a gang plank?

07Following rules and agreements identifies which principle?

08Which principle keeps organisational goal above personal goal?

09If all decisions are taken at head office this is related to what?

10If a branch manager gets authority to take local decisions this is an example of what?

11The idea of one plan for one objective comes under which principle?

12An employee receives orders only from his department head. Which principle is applied?

13Which principle can reduce repetition and increase expertise?

14Giving responsibility without authority is against which principle?

15Fair wages keep employees satisfied and motivated. Which principle is applied?

16A combination of justice and kindness is the essence of which principle?

19The feeling that “we are one” in a team is a sign of which principle?

20Placing the right person in the right position is related to which principle?

21In a scalar chain, communication normally follows what?

22In an emergency two same level officers talk directly. What is it called?

23What problem may arise due to too much centralisation?

24What may increase among lower managers through decentralisation?

25Which option contains a correct group of Fayol's principles?