Plus Two Business Studies Chapter Wise Previous Questions Chapter 2 Principles of Management

Kerala Plus Two Business Studies Chapter Wise Previous Questions Chapter 2 Principles of Management

Plus Two Business Studies Principles of Management 1 Mark Important Questions

Question 1.
Identify the management principle which states that “Union is strength.” (FEBRUARY-2009)
Answer:
Espirit de corps

Question 2.
Mr. Syam, the Production Manager of a firm, instructs Mr. Kiran to produce 50 units of a product per day. Mr. Arun, the Assistant Production Manager, instructs Mr. Kiran to produce 75 units. Which management principle is violated here? (MARCH-2009)
Answer:
Unity of Command

Question 3.
Identify the Management principle which states that managers should never try to have a divide and rule policy. (FEBRUARY-2010)
Answer:
Espirit de corps

Question 4.
Observe the following management principles and pick the odd one out. (MAY-2010)
(a) Unit of command
(b) Unit of direction
(c) Maximum output
(d) Equity
Answer:
(c) Maximum output

Question 5.
Management principles never remain static in its application mode. They can be applied with variation under different conditions in different ways. Identify the nature of management principle referred above. (MAY-2011)
Answer:
Universal Application

Question 6.
Complete the series
General and Industrial Management: Henry Fayol (MAY-2012)
The Philosopy of Management: ______
Answer:
F.W. Taylor

Question 7.
_________ are the prescribed guidelines for conducting an action.(MARCH-2013)
(a) Rules
(b) Methods
(c) Budgets
(d) Programmes
Answer:
(a) Rules

Question 8.
As a part of implementing scientific management techniques in his institution, Mr.Aravind decided to conduct work study. For that he conduct time study, motion study and fatigue study. But he forget to conduct one related study. Identify it.(MARCH-2014)
Answer:
Method study

Question 9.
In the opinion of Henry Fayol, the management expert, each employee should be received orders from one superior only. (MARCH-2015)
Mention the management principle referred here
Answer:
Unity of command

Question 10.
One of the following is not a feature of planning. Spot it. (MARCH-2015)
(a) Pervasiveness
(b) Mental revolution
(c) Continuous process
(d) Flexibility
Answer:
(b) Mental revolution

Question 11.
Henry Fayol a famous management theorist hails from _________. (MARCH-2016)
Answer:
(a) Japan
(b) Spain
(c) Russia
(d) France

Question 12.
Which one of the following principles of Fayol justi¬fies the statement “a place for everything and everything in its place”.(MAY-2016)
(a) Equity
(b) Stability of personnel
(c) Espirit De Corps
(d) Order
Answer:
(d) Order

Question 13.
Which among the following is not a contribution by F.W. Taylor?(MAY-2017)
(a) Differential Piece Rate
(b) Time Study
(c) Scalar Chain
(d) Functional Foremanship
Answer:
(c) Scalar Chain

Plus Two Business Studies Principles of Management 2 Marks Important Questions

Question 1.
Analyse the following diagram.(MARCH-2009)

According to Fayol’s Principles of Management, which term is used to mention the direct communi¬cation between D and P in the above diagram? Explain the concept.
Answer:
Gang Plank : According to the concept of gang plank persons of the same rank can communicate with each other especially in emergency situations. It helpstosave a lot of time in communication and possibility of distortion of messages can be reduced.

Question 2.
Find out the odd one. (MAY-2009)
(a) Stability of tenure of personnel.
(b) Scientific selection and training of workers.
(c) Maximum output.
(d) Replacement of old rule of thumb method.
Answer:
Stability of tenure of personnel – It is the management principle developed by Henry Fayol. All others are Taylors Scientific management principles.

Question 3.
“Proper understanding of management principles makes the managers more realistic in their profession.” Explain the concept.(MARCH-2010)
Answer:
(1) Increase efficiency : The understanding of the management principles provides guidelines to the managers for handling effectively the complex problems.
(2) Meeting the changing environmental requirements: Management principles are flexible and can be modified to meet changing requirements of environment.

Question 4.
Superiors should be impartial while dealing with their subordinates? (MAY-2012)
(a) Which management principle is meant here?
(b) Who advocated this principle?
Answer:
(a) Equity
(b) Henry Fayol

Question 5.
Mr.Sam, working in production department always receive instructions from production manager only. (MARCH-2014)
(a) Which management principle is applicable here?
(b) Who advocated these principles?
Answer:
(a) Unity of command
(b) Henry Fayol

Plus Two Business Studies Principles of Management 3 Marks Important Questions

Question 1.
Group the following persons coming under planning -in-charge and production -in-charge based on F.W Taylor’s functional foremanship.(MARCH-2009)
Gang Boss, Instruction Card Clerk, Inspector, Disci-plinarian, Speed Boss, Route Clerk.
Answer:

Question 2.
Draw a figure showing functional foremanship as advocated by F.W.Taylor to ensure specialisation in the organisation.(MAY-2012)
Answer:

Question 3.
As the father of modern management, Henry Fayol has suggested some management principles. List out any six of them.(MARCH-2014)
Answer:
Fayol’s Principles of Management: Henry Fayol (1841-1925) is known as the ‘Father of General Management’. The 14 principles of management given by him are:
1) Division of Work : This principle states that a complex work should be divided into small tasks, and each task should be assigned a particular employee. Division of work leads to specialization.
2) Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the mannerdirected by authority. There should be a balance between authority and responsibility.

3) Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
4) Unity of Command : The principle of unity of command statej that each employee should receive orders ffom one superior only. It helps to avoid confusion and conflict in the employees.
5) Unity of Direction : Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.
6) Subordination of Individual Interest to General Interest: The Interest of an organization should take priority over the interests of any one individual employee.
7) Remuneration of Employees: Remuneration should be just, equitable and fair to both employees and the organization.
8) Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.
9) Scalar Chain: The formal lines of authority from highest to lowest ranks are known as scalar chain. According to this principle, communication should passthrough the established chain of command. It ensures unity of command and effective communication.
Gang Plank : According to the concept of gang plank persons of the same rank can cprnmunicate with each other especially in emergency situations. It helps to save a lot of time in communication and possibility of distortion of messages can be reduced.
10. Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” ‘
11. Equity: This principle requires the managers to be kind and just to workers. Superiors should be impartial while dealing with their subordinates.
12.Stability of Personnel: According to Fayol, workers should not be moved from one job to another frequently. It helps to minimise labour tumoverin the organization.
13.Initiative: Workers should be encouraged to develop and carry out their plans for improvements.
14. Espirit De Corps (Union is strength): According to Fayol, Management should promote a team spirit of unity and harmony among employees.

Plus Two Business Studies Principles of Management 4 Marks Important Questions

Question 1.
Henry Fayol suggested that there should be one head and one plan fora group of activities having the same objective. (MAY-2009)
(a) Identify the management principle referred to here.
(b) Compare the same with the principle of unity of command.
Answer:
(a) Unity of direction
(b) Unity of Command : The principle of unity of command states that each employee should re-ceive orders from one superior only. It helps to avoid confusion and conflict in the employees.
Unity of Direction : Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.

Question 2.
Mr.Ramesh Menon is the proprietor of Modern Garments Centre, a readymade garments manufacturing unit. There are 40 workers in the unit and grouped them into 4 groups according to their skill and ability. Each group was given separate tasks like designing, measuring, cutting and stitching. Now, this is the leading garment manufacturing unit in the city. (MAY-2010)
(a) Identify the general management principle that caused the success of the unit. (1 mark)
(b) State any two merits of this principle. (3 marks)
Answer:
(a) Division of labour
(b) a) Division of work
(b) Benefits of Division of Work
(1) It brings specialisation.
(2) It helps to minimise wastage.

Question 3.
Fayol’s ‘Unity of Command’ and Tailor’s ‘Functional foremanship’ are contradictory.” – Do you agree ? Give reason. (MARCH-2011)
Answer:
Yes. in case of unity of command, every employee receives instructions from one boss only and he is responsible and accountable to him alone. In case of functional foremanship, every worker receives instructions from eight bosses, four from planning department and four from production department. In this way, unity of command stresses on centralisation and functional foremanship on decentralization.

Question 4.
‘Henry Fayol suggested short circuiting the chain of command where emergency decisionsare to be taken.” (MARCH-2011)
(a) Which management principle is reflected here?
(b) What technique is suggested by Fayol to short circuit the path of communication?
Answer:
(a) Scalar Chain
(b) GangPlank
(b) Gang Plank : According to the concept of gang plank persons of the same rank can communicate with each other especially in emergency situations. It helps to save a lot of time in communication and possibility of distortion of messages can be reduced.

Question 5.
Mr.Thomas is the proprietor of National Engineering Industries and employed 40 workers under him. He grouped the employees into 4 according to their skill and ability. Each group was given separate tasks like designing, turning, welding and painting. Now this is the leading engineering industrial unit in the city. (MAY-2011)
(a) Identify the general management principle . contributes to the success of firm.
(b) State any three merits of this principle.
Answer:
(a) Division of labour
(b) a) Division of work
b) Benefits of Division of Work
(1) It helps to minimize wastage.
(2) The quality and quantity of production will improve. .
(3) It helps increase the efficiency of employees.

Question 6.
F.W. Taylor, the father of scientific management developed various techniques to improve performance of business firms. Explain any four of such techniques. (MARCH-2015)
Answer:
Techniques of Scientific Management
foremanship is a technique in which planning and execution are separated. He classified 8 specialist foremen into two departments viz. Planning and Production department. Both departments have four foremen each. Functional foremanship is based on the principle of division of work.

a) Route clerk : To lay down the sequence of operations through which the raw materials have to pass in the production process.
b) Time & cost clerk: To lay down the standard time for completion of the work.
c) Instruction card clerk: He is expected to deal the instructions to be followed by workers in handling the job.
d) Disciplinarian: He maintains proper discipline in the factory.
e) Gang boss: He arranges material, machine, tool, etc. for operation.
f) Speed boss: He supervises matters relating to the speed of work.
g) Repair boss: He ensures repairs and maintenance of the tools and machines.
h) Inspector: He checksthe quality of work done.
2) Standardisation and simplification of work: Standardisation refers to the process of setting standards for every business activity. It includes use of standard tools and equipments, methods, working conditions, etc. for the maximisation of output. Simplification aims at eliminating unnecessary diversity of products. -It results in savings of cost of labour, machines and tools.
3) Method study: The objective of method study is to find out one best way of doing the job. The main objective is to minimize the cost of production and maximize the.quality of the work.
4) Motion study: Motion study involves close observation of the movements of the workers and machines to perform a particular job. It helps to eliminate unnecessary movements of men, materials and machine.
5) Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.
6) Fatigue study: Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.
7) Differential piece wage system: Under this system of wage payment, two kinds of rates are laid down.
a) Higher rates are offered to those workers who produce more than standard output.
b) Lower rates for those who produce below standard output.
8) Mental revolution: It involves a change in the mental attitude of workers and management towards each other. Both the parties should realise each other’s importance and work towards the profit of the firm.

Plus Two Business Studies Principles of Management 5 Marks Important Questions

Question 1.
Mr. Godwin, the owner of a manufacturing unit, likes to implement scientific management techniques in his business. What are the important principles he has to follow?(MARCH-2012)
Answer:
Principles of Scientific Management
1) Science and not the rule of thumb : The first principle of scientific management requires scientific study and analysis of each element of job in orderto replace old rule of thumb approach.
2) Harmony, not discord : As per this principle, there should be complete harmony between the management and workers. Taylor called for complete mental revolution on the part of both management and workers. Both the parties should realize each other’s importance and work towards the profits of the firm.
3) Co-operation not individualism : There should be complete co-operation between the labour and the management instead of individualism. According to Taylor, there should be an almost equal division of work and responsibility between workers and management.
4) Development of each and every person to his or her greatest efficiency and prosperity : The growth and development of an organisation depends on the efficiency and prosperity of employees. The efficiency of employees can be developed by giving propertraining and development. This ensure the growth of an organisation.

Question 2.
Explain any 3 techniques of scientific management.(MARCH-2013)
Answer:
Techniques of Scientific Management
1) Functional foremanship: Functional foremanship is a technique in which planning and execution are separated. He classified 8 specialist foremen into two departments viz. Planning and Production department. Both departments have four foremen each. Functional foremanship is based on the principle of division of work.

a) Route clerk : To lay down the sequence of operations through which the raw materials have to pass in the production process.
b) Time & cost clerk: To lay down the standard time for completion of the work.
c) Instruction card clerk: He is expected to deal the instructions to be followed by workers in handling the job.
d) Disciplinarian: He maintains proper discipline in the factory.
e) Gang boss: He arranges material, machine, tool, etc. for operation.
f) Speed boss: He supervises matters relating to the speed of work.
g) Repair boss: He ensures repairs and maintenance of the tools and machines.
h) Inspector: He checksthe quality of work done.
2) Standardisation and simplification of work: Standardisation refers to the process of setting standards for every business activity. It includes use of standard tools and equipments, methods, working conditions, etc. for the maximisation of output. Simplification aims at eliminating unnecessary diversity of products. -It results in savings of cost of labour, machines and tools.
3) Method study: The objective of method study is to find out one best way of doing the job. The main objective is to minimize the cost of production and maximize the.quality of the work.
4) Motion study: Motion study involves close observation of the movements of the workers and machines to perform a particular job. It helps to eliminate unnecessary movements of men, materials and machine.
5) Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.
6) Fatigue study: Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.
7) Differential piece wage system: Under this system of wage payment, two kinds of rates are laid down.
a) Higher rates are offered to those workers who produce more than standard output.
b) Lower rates for those who produce below standard output.
8) Mental revolution: It involves a change in the mental attitude of workers and management towards each other. Both the parties should realise each other’s importance and work towards the profit of the firm.

Question 3.
Henry Foyal made three distinct contributions to the theory of management, which have given him the title “The father of management Thought”. One of them is the development of management principles. Mention any 10 principles which had grown out of the thoughts of Fayol.(MAY-2013)
Answer:
Fayol’s Principles of Management: Henry Fayol (1841-1925) is known as the ‘Father of General Management’. The 14 principles of management given by him are:
1) Division of Work : This principle states that a complex work should be divided into small tasks, and each task should be assigned a particular employee. Division of work leads to specialization.
2) Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the mannerdirected by authority. There should be a balance between authority and responsibility.

3) Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
4) Unity of Command : The principle of unity of command statej that each employee should receive orders ffom one superior only. It helps to avoid confusion and conflict in the employees.
5) Unity of Direction : Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.
6) Subordination of Individual Interest to General Interest: The Interest of an organization should take priority over the interests of any one individual employee.
7) Remuneration of Employees: Remuneration should be just, equitable and fair to both employees and the organization.
8) Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.
9) Scalar Chain: The formal lines of authority from highest to lowest ranks are known as scalar chain. According to this principle, communication should passthrough the established chain of command. It ensures unity of command and effective communication.
Gang Plank : According to the concept of gang plank persons of the same rank can cprnmunicate with each other especially in emergency situations. It helps to save a lot of time in communication and possibility of distortion of messages can be reduced.
10. Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” ‘
11. Equity: This principle requires the managers to be kind and just to workers. Superiors should be impartial while dealing with their subordinates.
12.Stability of Personnel: According to Fayol, workers should not be moved from one job to another frequently. It helps to minimise labour tumoverin the organization.
13.Initiative: Workers should be encouraged to develop and carry out their plans for improvements.
14. Espirit De Corps (Union is strength): According to Fayol, Management should promote a team spirit of unity and harmony among employees.

Question 4.
“Wages of employees should be fixed scientifically based upon their performance.” Identify and explain the principle mentioned here by F.W. Taylor.(MARCH-2016)
Answer:
a) Differential piece Rate system
b) Differential piece wage system: Under this system of wage payment, two kinds of rates are laid down.
a) Higher rates are offered to those workers who produce more than standard output.
b) Lower rates for those who produce below standard output.

Question 5.
Discuss about any five techniques of scientific man-agement as specified F.W. Taylor.(MAY-2016)
Answer:
Techniques of Scientific Management
1) Functional foremanship: Functional foremanship is a technique in which planning and execution are separated. He classified 8 specialist foremen into two departments viz. Planning and Production department. Both departments have four foremen each. Functional foremanship is based on the principle of division of work.

a) Route clerk : To lay down the sequence of operations through which the raw materials have to pass in the production process.
b) Time & cost clerk: To lay down the standard time for completion of the work.
c) Instruction card clerk: He is expected to deal the instructions to be followed by workers in handling the job.
d) Disciplinarian: He maintains proper discipline in the factory.
e) Gang boss: He arranges material, machine, tool, etc. for operation.
f) Speed boss: He supervises matters relating to the speed of work.
g) Repair boss: He ensures repairs and maintenance of the tools and machines.
h) Inspector: He checksthe quality of work done.
2) Standardisation and simplification of work: Standardisation refers to the process of setting standards for every business activity. It includes use of standard tools and equipments, methods, working conditions, etc. for the maximisation of output. Simplification aims at eliminating unnecessary diversity of products. -It results in savings of cost of labour, machines and tools.
3) Method study: The objective of method study is to find out one best way of doing the job. The main objective is to minimize the cost of production and maximize the.quality of the work.
4) Motion study: Motion study involves close observation of the movements of the workers and machines to perform a particular job. It helps to eliminate unnecessary movements of men, materials and machine.
5) Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.
6) Fatigue study: Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.
7) Differential piece wage system: Under this system of wage payment, two kinds of rates are laid down.
a) Higher rates are offered to those workers who produce more than standard output.
b) Lower rates for those who produce below standard output.
8) Mental revolution: It involves a change in the mental attitude of workers and management towards each other. Both the parties should realise each other’s importance and work towards the profit of the firm.

Question 6.
Explain briefly the techniques of Scientific Manage-ment as propounded by F.W. Taylor.(MARCH-2017)
Answer:
Techniques of Scientific Management
1) Functional foremanship: Functional foremanship is a technique in which planning and execution are separated. He classified 8 specialist foremen into two departments viz. Planning and Production department. Both departments have four foremen each. Functional foremanship is based on the principle of division of work.

a) Route clerk : To lay down the sequence of operations through which the raw materials have to pass in the production process.
b) Time & cost clerk: To lay down the standard time for completion of the work.
c) Instruction card clerk: He is expected to deal the instructions to be followed by workers in handling the job.
d) Disciplinarian: He maintains proper discipline in the factory.
e) Gang boss: He arranges material, machine, tool, etc. for operation.
f) Speed boss: He supervises matters relating to the speed of work.
g) Repair boss: He ensures repairs and maintenance of the tools and machines.
h) Inspector: He checksthe quality of work done.
2) Standardisation and simplification of work: Standardisation refers to the process of setting standards for every business activity. It includes use of standard tools and equipments, methods, working conditions, etc. for the maximisation of output. Simplification aims at eliminating unnecessary diversity of products. -It results in savings of cost of labour, machines and tools.
3) Method study: The objective of method study is to find out one best way of doing the job. The main objective is to minimize the cost of production and maximize the.quality of the work.
4) Motion study: Motion study involves close observation of the movements of the workers and machines to perform a particular job. It helps to eliminate unnecessary movements of men, materials and machine.
5) Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.
6) Fatigue study: Fatigue study seeks to determine the amount and frequency of rest intervals in completing a task.
7) Differential piece wage system: Under this system of wage payment, two kinds of rates are laid down.
a) Higher rates are offered to those workers who produce more than standard output.
b) Lower rates for those who produce below standard output.
8) Mental revolution: It involves a change in the mental attitude of workers and management towards each other. Both the parties should realise each other’s importance and work towards the profit of the firm.

Question 7.
briefly explain about any 10 principles of management as contributed by Henry Fayol.(MAY-2017)
Answer:
Fayol’s Principles of Management: Henry Fayol (1841-1925) is known as the ‘Father of General Management’. The 14 principles of management given by him are:
1) Division of Work : This principle states that a complex work should be divided into small tasks, and each task should be assigned a particular employee. Division of work leads to specialization.
2) Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the mannerdirected by authority. There should be a balance between authority and responsibility.
–
3) Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
4) Unity of Command : The principle of unity of command statej that each employee should receive orders ffom one superior only. It helps to avoid confusion and conflict in the employees.
5) Unity of Direction : Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.
6) Subordination of Individual Interest to General Interest: The Interest of an organization should take priority over the interests of any one individual employee.
7) Remuneration of Employees: Remuneration should be just, equitable and fair to both employees and the organization.
8) Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.
9) Scalar Chain: The formal lines of authority from highest to lowest ranks are known as scalar chain. According to this principle, communication should passthrough the established chain of command. It ensures unity of command and effective communication.
Gang Plank : According to the concept of gang plank persons of the same rank can cprnmunicate with each other especially in emergency situations. It helps to save a lot of time in communication and possibility of distortion of messages can be reduced.
10. Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” ‘
11. Equity: This principle requires the managers to be kind and just to workers. Superiors should be impartial while dealing with their subordinates.
12.Stability of Personnel: According to Fayol, workers should not be moved from one job to another frequently. It helps to minimise labour tumoverin the organization.
13.Initiative: Workers should be encouraged to develop and carry out their plans for improvements.
14. Espirit De Corps (Union is strength): According to Fayol, Management should promote a team spirit of unity and harmony among employees.

Plus Two Business Studies Principles of Management 8 Marks Important Questions

Question 1.
Explain Fayol’s principles of management.(FEBRUARY-2009)
Answer:
Fayol’s Principles of Management: Henry Fayol (1841-1925) is known as the ‘Father of General Management’. The 14 principles of management given by him are:
1) Division of Work : This principle states that a complex work should be divided into small tasks, and each task should be assigned a particular employee. Division of work leads to specialization.
2) Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the mannerdirected by authority. There should be a balance between authority and responsibility.

3) Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
4) Unity of Command : The principle of unity of command statej that each employee should receive orders ffom one superior only. It helps to avoid confusion and conflict in the employees.
5) Unity of Direction : Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.
6) Subordination of Individual Interest to General Interest: The Interest of an organization should take priority over the interests of any one individual employee.
7) Remuneration of Employees: Remuneration should be just, equitable and fair to both employees and the organization.
8) Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.
9) Scalar Chain: The formal lines of authority from highest to lowest ranks are known as scalar chain. According to this principle, communication should passthrough the established chain of command. It ensures unity of command and effective communication.
Gang Plank : According to the concept of gang plank persons of the same rank can cprnmunicate with each other especially in emergency situations. It helps to save a lot of time in communication and possibility of distortion of messages can be reduced.
10. Order: According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” ‘
11. Equity: This principle requires the managers to be kind and just to workers. Superiors should be impartial while dealing with their subordinates.
12.Stability of Personnel: According to Fayol, workers should not be moved from one job to another frequently. It helps to minimise labour tumoverin the organization.
13.Initiative: Workers should be encouraged to develop and carry out their plans for improvements.
14. Espirit De Corps (Union is strength): According to Fayol, Management should promote a team spirit of unity and harmony among employees.

Question 2.
The contributions of Henry Fayol and F.W.Taylorand Complementary to each other.” Do you agree? State your comments giving reason.(FEBRUARY-2010)
Answer:

Plus Two Business Studies Chapter Wise Previous Questions and Answers