Business Studies

Fayol’s principles of management

Q: In a company top management frames policy but branch managers are allowed to decide local discounts. This is a balanced state of which principle?

Centralisation and decentralisation Policy at top and local decisions at lower level show balanced authority distribution. Exam tip: remember policy top local decision lower.

Q: If an employee gives confidential organisational information to a competitor for personal gain which Fayol principle is most violated?

Subordination of individual interest to general interest Harming the organisation for personal gain is against general interest. Exam tip: connect confidential information misuse with general interest.

Q: In an organisation newly trained employees are quickly replaced by new people which increases training cost. Which principle should be applied?

Stability of personnel Stability of employees preserves experience and reduces cost. Exam tip: connect high turnover and training cost with stability.

Q: If the departmental objective is the same but two heads are applying different control systems which principle will be violated?

Unity of direction One head and one plan are necessary for the same objective. Exam tip: connect same objective two heads with unity of direction.

Q: If a formal line of authority exists but routine information is sent directly without need which principle may be misused?

Scalar chain and gang plank Gang plank is useful for urgent need and not as a routine rule. Exam tip: treat routine bypass as misuse.

Q: If a manager keeps employees silent through fear of punishment and does not listen to new ideas which two principles may be affected?

Initiative and esprit de corps Fear stops suggestions and reduces team spirit. Exam tip: connect fear culture with initiative and esprit de corps.

Q: An employee follows rules but does not get opportunity due to bias. Which principle is mainly weak?

Equity Fayol’s principle of equity requires managers to treat employees with fairness and kindness. Denying an employee an opportunity because of bias violates equity, so option B is correct. Discipline concerns obedience to rules; here, the employee follows the rules, but the issue is unfair treatment. Exam tip: link clues such as bias, fair treatment and equal opportunity with equity.

Q: In a company a specialist employee is repeatedly given unrelated work which reduces specialisation. Which principle is weak?

Division of work Unrelated work reduces specialisation. Exam tip: treat unrelated work to a specialist as division of work violation.

Q: If workers want fair wages and the owner links their satisfaction with production which principle is most related?

Remuneration Fair payment can be linked with employee satisfaction and production. Exam tip: connect fair wages and satisfaction with remuneration.

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.

Hard · Level 2 · 25 questions

Practice questions

01In a company top management frames policy but branch managers are allowed to decide local discounts. This is a balanced state of which principle?

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Answer and explanation

Correct answer: A. Centralisation and decentralisation

Policy at top and local decisions at lower level show balanced authority distribution. Exam tip: remember policy top local decision lower.

Fayol’s principles of management

Practice questions

06Which option correctly differentiates unity of command and unity of direction?कौन सा विकल्प आदेश की एकता और निर्देश की एकता में सही अंतर बताता है?

16Which option has an incorrect matching of Fayol's principle?किस विकल्प में फेयोल के सिद्धांत का गलत मिलान है?

24Which option states the most balanced managerial use of Fayol's principles?किस विकल्प में फेयोल के सिद्धांतों का सबसे संतुलित प्रबंधकीय उपयोग बताया गया है?

25Which result is most likely in an organisation based on Fayol's principles?फेयोल के सिद्धांतों पर आधारित संगठन में कौन सा परिणाम सबसे अधिक संभावित है?

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Analytics choices

06Which option correctly differentiates unity of command and unity of direction?

16Which option has an incorrect matching of Fayol's principle?

24Which option states the most balanced managerial use of Fayol's principles?

25Which result is most likely in an organisation based on Fayol's principles?