Business Studies

Fayol’s principles of management

Q: In a company a technical expert is continuously given customer service and accounting work too which reduces his core efficiency. Which principle is most directly ignored?

Division of work Using a specialist in specialised work is the aim of division of work. Exam tip: connect loss of specialisation with division of work.

Q: A sales officer is given a regional target but no authority to give discounts. Which principle is not properly applied?

Authority and responsibility Necessary authority should accompany responsibility for a target. Exam tip: treat target without authority as an authority responsibility issue.

Q: If an organisation makes rules but the manager does not apply them to favourite employees which principle will become weak?

Discipline and equity Equal rule compliance relates to both discipline and fairness. Exam tip: treat selective rule application as discipline equity issue.

Q: An employee receives different deadlines from two superiors and cannot decide whom to follow. What is the root cause?

Violation of unity of command Unity of command is violated when orders come from two superiors. Exam tip: connect two superior confusion with unity of command.

Q: For the same product launch production works toward cost reduction while marketing works toward premium image in a different direction. Which principle is needed?

Unity of direction One direction and one plan are needed for the same objective. Exam tip: connect same launch different directions with unity of direction.

Q: If an officer harms organisational interest to give unfair benefit to a friend's company which principle is violated?

Subordination of individual interest to general interest Harming the organisation for a private relation is against general interest. Exam tip: treat private favour as an individual interest clue.

Q: Employees receive below market wages and bonus rules are also unclear causing dissatisfaction. Which principle is mainly affected?

Remuneration Remuneration should be fair clear and satisfactory. Exam tip: connect unfair unclear pay with remuneration.

Q: A company keeps all decisions at headquarters due to which branches lose local opportunities. According to Fayol what is the most suitable improvement?

Proper balance between centralisation and decentralisation Keeping every decision at the top may increase delay so balance is necessary. Exam tip: connect local opportunity loss with decentralisation balance.

Q: In a large organisation the formal command line from general manager to supervisor is clear. This identifies which principle?

Scalar chain Scalar chain is the formal line of authority from top to bottom. Exam tip: connect formal command line with scalar chain.

Q: In an urgent customer issue two department heads at the same level communicate directly instead of using the long authority chain. This is the correct use of what?

Gang plank Gang plank provides a shortcut for quick same level communication. Exam tip: remember urgent same level communication.

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 3 · 25 questions

Practice questions

01In a company a technical expert is continuously given customer service and accounting work too which reduces his core efficiency. Which principle is most directly ignored?

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Answer and explanation

Correct answer: B. Division of work

Using a specialist in specialised work is the aim of division of work. Exam tip: connect loss of specialisation with division of work.

Fayol’s principles of management

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