Business Studies

Fayol’s principles of management

Q: Statement one says esprit de corps increases cooperation. Statement two says developing we feeling among employees is part of it. Choose the correct option.

Both statements are correct Both are correct because esprit de corps is linked with team spirit. Exam tip: remember we feeling and cooperation.

Q: A company decides strategy at headquarters but gives branches authority to take quick decisions on local complaints. This is balanced use of what?

Centralisation and decentralisation Top level strategy and lower level local authority show balanced authority distribution. Exam tip: remember top strategy local authority.

Q: If an employee gives a secret discount to a customer against company policy for personal benefit which principle is most violated?

Subordination of individual interest to general interest Personal benefit should not be above organisational policy and interest. Exam tip: treat secret discount as a personal interest clue.

Q: Newly trained employees are replaced within three months and then money is spent on new training. Which principle should be applied?

Stability of personnel Stability of personnel saves both experience and training cost. Exam tip: treat rapid replacement as a stability issue.

Q: For the same customer satisfaction goal the service head and operations head make different standards. Which principle will be violated?

Unity of direction One plan and one head are needed for the same goal. Exam tip: connect same goal different standards with unity of direction.

Q: If even routine information is always sent directly by bypassing formal levels and superiors remain uninformed which misuse is it?

Misuse of scalar chain and gang plank Gang plank is for urgent need not routine bypass. Exam tip: understand routine shortcut as misuse.

Q: The manager creates fear and stops suggestions which increases distrust in the team. Which principles are affected?

Initiative and esprit de corps Stopping suggestions weakens initiative and distrust weakens team spirit. Exam tip: treat fear culture as a dual issue.

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

Equity The correct answer is Equity. Fayol’s principle of equity requires managers to treat employees fairly and justly. Denying opportunities because of caste, region, relationship, or personal bias violates this principle. Discipline concerns obedience to rules, so it is not the issue here even though the employee follows rules. Exam tip: Link discrimination, favouritism, and fair opportunity with the principle of equity.

Q: A specialist designer is repeatedly made to do data entry so design skill is not used. Which principle is weak?

Division of work Proper use of special skill happens through division of work. Exam tip: treat specialist doing routine unrelated work as a violation.

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 6 · 25 questions

Practice questions

01Statement one says esprit de corps increases cooperation. Statement two says developing we feeling among employees is part of it. Choose the correct option.

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Answer and explanation

Correct answer: A. Both statements are correct

Both are correct because esprit de corps is linked with team spirit. Exam tip: remember we feeling and cooperation.

Fayol’s principles of management

Practice questions

07What is the most accurate difference between unity of command and unity of direction?आदेश की एकता और निर्देश की एकता में सबसे सही अंतर कौन-सा है?

23Which option best shows balanced use of Fayol's principles?फेयोल के सिद्धांतों का संतुलित उपयोग किस विकल्प में सबसे अच्छा दिखता है?

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07What is the most accurate difference between unity of command and unity of direction?

23Which option best shows balanced use of Fayol's principles?