Business Studies

Fayol’s principles of management

Q: If in a bank loan approval specialists and risk analysts are separate but both reports go into one decision which principle is mainly shown?

Division of work Separating specialised tasks increases expertise. In exams connect specialised roles with division of work.

Q: A regional manager is asked for sales results but is not allowed to change regional pricing policy. Which principle is imbalanced?

Authority and responsibility Responsibility for results needs adequate authority. In exams connect responsibility without authority with this principle.

Q: An employee receives different project deadlines from the operations head and quality head. Which principle is directly violated?

Unity of command Orders from two superiors create confusion. In exams connect dual command with unity of command.

Q: For the same brand relaunch research advertising and distribution activities are linked under one main plan. Which principle is applied?

Unity of direction Activities with the same objective need one plan. In exams connect common objective with unity of direction.

Q: If a sales employee makes a false promise to a customer for personal incentive which principle is most clearly violated?

Subordination of individual interest to general interest Personal incentive cannot be above the firm's goodwill. In exams link personal incentive harming goodwill with general interest.

Q: A company considers job difficulty industry pay and employee contribution while fixing salary. Which principle is applied?

Remuneration Remuneration should be fair and satisfactory. In exams connect fair pay structure with remuneration.

Q: If top management approves even small customer refunds and service becomes slow what problem exists?

Excessive centralisation Too much centralisation can reduce decision speed. In exams connect routine approvals at top with centralisation.

Q: When is the use of gang plank most appropriate in scalar chain?

For quick communication between same levels in emergency Gang plank speeds communication but does not fully end the formal chain. In exams remember emergency communication.

Q: In a laboratory chemicals equipment and safety records are kept at assigned places. Which principle is dominant?

Order Order means material remains at the right place. In exams connect assigned place with order principle.

Q: If a manager keeps strict performance standards but evaluates fairly which principle is shown?

Equity Equity is based on balanced treatment of justice and kindness. In exams connect fair evaluation with equity.

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.

Expert · Level 3 · 25 questions

Practice questions

01If in a bank loan approval specialists and risk analysts are separate but both reports go into one decision which principle is mainly shown?

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Answer and explanation

Correct answer: A. Division of work

Separating specialised tasks increases expertise. In exams connect specialised roles with division of work.

Fayol’s principles of management

Practice questions

08When is the use of gang plank most appropriate in scalar chain?स्केलर चेन में गैंग प्लैंक का उपयोग कब सबसे उचित है?

25If tools are with the right person but have no fixed place which part is lacking?यदि उपकरण सही व्यक्ति के पास हैं पर उनका कोई तय स्थान नहीं है तो किस भाग की कमी है?

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08When is the use of gang plank most appropriate in scalar chain?

25If tools are with the right person but have no fixed place which part is lacking?