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Deciphering the Economics

Case Study Questions: Principles of Management

Important Case Study Questions of Principles of Management

Q1. The production manager of garment manufacturing asked the foreman to achieve a target production of 100 shirts per day. However, he did not give him the authority to requisition tools and materials from the store’s department. Can the production manager blame the foreman if he is not able to achieve the desired target? Explain briefly the principle relating to the situation.

Ans. No, the production manager cannot blame the foreman because he did not give him the authority to requisition tools and materials from the store department. Since he had no authority, he could not fulfill his responsibility. In this case, the principle of ‘Authority and Responsibility’ is violated.

Q2. A manager should have the right to punish a subordinate for willfully not obeying a legitimate order but only after sufficient opportunity has been given to his or her case. Name the management principle highlighted here.

Ans. Authority and responsibility

Q3. Vivek, the manager of a business enterprise, is very lax (careless) with his fellow employees and subordinates. He does not give them parameters or rules for reporting to work and completing assignments. Which principle of management is overlooked?

Ans. Discipline

Q4. In the marketing departments of ABC Electronics Limited, the members of the sales team, get guidance from the sales supervisor as under:

(i) For prices, discounts, etc from Supervisor – A

(ii) For the quality of different brands from Supervisor – B

(iii) For the details of different distributors from Supervisor – C

Based on the above details, mention the name of the principle of management and technique of science management which have been followed or violated and how.

Ans. ‘Unity of Command’ has been violated, as the salesman is getting guidance from more than one supervisor. ‘Functional foremanship’ has been followed, as the salesman is getting guidance from different experts.

Q5. The purchase manager of XYZ Ltd. Gave an order to supply raw material @ 1,200 per quintal to his relative while the same quality raw material is available @ Rs. 1,000 per quintal by another supplier. Which principle of management is being violated in the given case?

Ans. Subordination of individual interest to general interest.

Q6. The production manager of Anuj Ltd. Instructs a salesman to go slow in selling the product, while the marketing manager is insisting on fast selling to reach the target. Which principle of management is being violated here?

Ans. Unity of command.

Q7. In your school, you observe that books are kept in the office, chalk in the library, and office records in the staffroom. How will that affect the accomplishment of school goals? Which aspect of management is lacking here and why? As a manager, what steps will you take to rectify the shortcomings?

Ans. If we observe in our school that books are kept in the office, chalk in the library, and office records in the staff room, there will be an absence of orderliness. The goals of school will not be achieved efficiently and effectively as it will take more time to do a job.

The aspect of management that is lacking here is the ‘principle of order’ as suggested by Henri Fayol.

As a manager, I will ensure that things are kept in appropriate places, i.e. books in the library, chalk in the staffroom, and office records in the office to achieve maximum efficiency.

Q8. The production department of an electronics company follows two, types of rates of wage payment. Workers’ representatives protest and label it as a ‘Discriminative Policy’. How as a Production Manager, will you pacify them?

Ans. I, as a Production Manager, will pacify them by saying that ‘efficiency should be the criterion of compensation. Those who perform up to or above standard within standard time should deserve more.

I will provide them with training for those who are not able to produce up to or above standard. This will improve the skills of less efficient workers and they too will be able to earn more.

Q9. Kartik, a worker at Gupta Ltd, through his personal experience, was able to identify time-saving techniques of production. He appreciated the management with his suggestions but it was not appreciated by his seniors. Which principle of management is overlooked here?

Ans. Initiative

Q10 If you are the planning manager in a manufacturing enterprise, setting up a standard task, which study will you conduct first- a time study or a Motion Study, and why?

Ans. The main objective of time study is to determine the standard time required to perform a well-defined job. On the other hand, the objectives of the motion study is to identify wasteful motions and eliminate them to determine the best way of doing a particular job.

Hence, motion study should precede time study because the time standards so determined will be free from time spent on wasteful activities. In other words, these time standards will only be for performing the activities most efficiently.

Q11. A complete mental revolution on the part of both the management and workers is found in Japanese work culture. How?

Ans. In the case of Japanese companies, there is complete openness between the management and the workers, usually, workers don’t go on strike but, if at all workers go to strike they just wear a black ribbon to show their dissatisfaction and work more than normal working hours just to gain the sympathy of the management.

Q12. For the last three years, Verma Ltd. Is not functioning smoothly and systematically. The relations between management and employees are becoming unhealthy. After a complete analysis, it was observed that employees are not working effectively and efficiently to produce maximum output and management is not fulfilling its promises of better environment increments, promotions, etc.

(a) Which principle of Henri Fayol is being ignored in the given case?

(b) Can the problem be solved if only management becomes serious in fulfilling its commitments? What should be the appropriate course of action to achieve smooth and systematic functioning of Verma Ltd?

Ans. (a) Discipline

(b) No, the problem cannot be solved through the efforts of management only. For the smooth and systematic functioning of Verma Ltd., Both employees and management should be disciplined. Employees must be disciplined to work effectively and efficiently and management should fulfill their promises of a better environment, increments, promotions, etc.

Q13. Raju is an employee an ABC Ltd. Always come 1 half hour late to the office and leave 30 minutes before the scheduled times. No penal action is taken by the management against him. Other employees also started coming late to the office. As a result, the management is very distributed and the whole functioning of the organization is adversely affected. Which principle of Fayol is being overlooked in the given case? Explain.

Ans. Discipline

Q14. Vinod is appointed as a mechanic in the repair and maintenance department of Bright Industries. However, he is not allotted a particular workshop and every day he has to carry tools from one place to another. As a result, the workers have to search for Vinod in case of any problem in the machine.

Ans. (a) order

(b) This principle states that in an organization there should be a place for everything and everything should be in its right place.

(c) Vinod should be given an appointed place for the workshop and tools and Vinod should be available at his appointed place so that workers can contact him as and when required.

Q15. In Fashion Ltd. Receptionist does not stay in one place and nobody attends urgent calls. Even she does not keep anything in its place. As a result, the company has to face problems

(a) Identify and explain the principle of management violated above.

(b) Write any one value overlooked in the above para.

Ans. (a) order

(b) values

(i) Responsibility                                ii sincerity

(iii) optimum utilization of resources.

Q16. Bright Industries has adopted a new policy of cost-cutting. Instead of appointing employees permanently, it has started recruiting them as ‘trainees’ temporarily to avoid increment benefits. It immensely benefitted the company in financial terms. However, after one month the trainees started leaving the company due to feelings of job insecurity. As a result, financial savings made by the company were spent in the process of new recruitment.

(a) identify the Fayol’s principle not observed by Bright Industries.

(b) Whether a company should continue with the temporary job offer in its new recruitment process? Give reasons to support your answer.

Ans. (a) Stability of personnel

(b) No, the company should discontinue the temporary job offer because of the following reasons:

(i) It creates an atmosphere of disbelief for the employees.

(ii) it declines the reputation of the company.

(iii) it increases the cost of recruitment, selection, and training.

(iv) it leads to the wastage of considerable time in learning a new job.

Q17. Mr. Neeraj the salesman in Progress Ltd., designed a new cost-saving advertisement technique through his personal experience and suggested the same to his sales manager but it was not appreciated by his sales manager and he also warned him not to come up with any suggestions in the future. Which principle of Fayol is being overlooked by the sales manager? What should have been the appropriate way of response by the sales manager?

Ans. The principle of ‘Initiative’ is being overlooked by the sales manager. The manager should have carefully listened to the suggestions of Mr. Neeraj. The manager should have also encouraged him to offer more suggestions in the future.

Q18. The production manager assigned a target of producing 1,000 TV sets in the month of April to a group of 10 workers. They mutually decided to produce 100 TV sets each. Among them, Vishal falls sick. The other workers refused to divide their work among themselves and concentrated only on the production of their targets of production.  As a result, the group target of 1,000 TV sets could not be achieved.

(a) Name the principle of Fayol which is violated in the given case.

(b) What does it sell?

(c) What should have been the appropriate course of action?

Ans. (a) Espirit de corps

(b) Espirit de corps means team spirit in group effort and mutual understanding among employees.

(c) There should have been a mutual understanding between all the workers and the remaining 9 workers should divide the work of Vishal among themselves to achieve the group target of 1,000 TV sets.

Q19. Vijay is a worker at Bata Shoe Company. He is regularly provided instructions by one of his superiors. Another superior lays down the sequence of operations His speed, efficiency, and quality of work are also supervised by different superiors who specialize in their respective fields.

(a) Name the technique of scientific management followed by Bata Shoe Company.

(b) What is the significance of having so many superiors on Vijay?

(c)This technique is an extension of one of Fayol’s principles? Name the principle.

Ans. (a) Functional Foremanship

(b) One superior is not an expert in all aspects of work. Due to this reason, Bata Shoe Company has different specialist foremen to supervise each aspect of Vijay. It helps to improve the quality of supervision, which in turn, improves the quality and efficiency of work.

(c) Division of work.

Q20. Nirmal, the production manager of ABC Ltd., wants to increase the speed of packaging. To identify and eliminate needles and unproductive movements of workers in packaging, he installed a movie camera in the factory.

(a) Which technique of Taylor is adopted by Nirmal?

(b) How can this technique help the ABC Ltd.?

Ans. (a) Motion study

(b) Motion study can help detect and eliminate unwanted movements and can determine a better way of doing the job.

Q21. In the festive season, Kapoor Industries decided to reduce the rest interval of workers from 40 minutes to just 8 minutes. However, due to heavy workload and reduction in time of rest interval, the worker’s efficiency level went down and it led to a fall in production level, instead of rising.

(a) Which technique of scientific management should be followed by Kapoor Industries? Also, state the technique.

(b) What should be done by the company to make the technique effective?

Ans. (a) fatigue study: It refers to determining the amount and frequency of rest intervals required by workers in completing the work.

(b) To make this technique effective, the company should determine the amount and frequency of rest intervals through fatigue study and not randomly. The workers should be observed while performing the job, to note down the time when their efficiency level starts decreasing.

Q22.The directors of Gurpreet Ltd. An organization manufacturing vacuum cleaners has asked its production manager to manufacture 40 vacuum cleaners per day. The production manager has no authority to purchase special materials required for the production of vacuum cleaners. As a result, he could not make vacuum cleaners of standard quality. Is the production manager responsible for this? Name and explain the principle of management violated in this situation.

Ans. No, the production manager is not responsible. Explain the principle of ‘Authority and responsibility’.

Q23. The management team for each department within Tata Beverage Group has been clearly defined. Each employee under his/her respective department will receive orders from the manager of the department. Which principle of management is followed here? Explain the principle also.

Ans. Unity of direction.

Q24. Rishabh Singhania, Managing Director of an Electronics Goods manufacturing company has been experiencing a year-on-year increase in revenues and net profit. The reason was that he ensured competition was replaced by cooperation and Rishabh had always been receptive to constructive employee suggestions. He emphasized worker training as he felt that efficient employees would produce more. Thus, he decided to reward efficient workers by paying them higher pay as compared to inefficient ones.

Identify and explain the principle of management and the technique of scientific management referred to in the above para.

Ans. Principle of management – initiative

Technique of scientific management- Different piece wage system.

Q25. The Reserve Bank of India has announced that plastic notes will be introduced by 2015. The RBI has also said that the main purpose of the proposed move is to I, prove security features in an attempt to fail the efforts of counterfeiters. It also said that plastic notes are stain-proof and no one can tear them easily. Identify and explain the principle of management highlighted in the given question.

Ans. Initiative.

Q26. The Delhi government imposes a ban on the use, storage, sale, and manufacture of plastic bags after considering their adverse impact on the environment and ecology. Which principle of Fayol is mentioned in the above decision? Explain

Ans. Initiative

Q27. The principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gains with the workers, while the other suggested that employees’ compensation should depend on the earning capacity of the company and should give them a reasonable standard of living.

Identify and explain the principles of Fayol and Taylor referred to in the above para.

Ans. Principle of Taylor – Harmony, not discord

Principle of Fayol- Remuneration of employees.

Q28. Yatin, a purchase manager of ABC Ltd. Has to purchase 50 tons of raw material. He purchased the raw materials from a company owned by his relative, at a rate more than the market price. Explain the principle of management which is being violated in the given example.

Ans. Subordination of individual interest to generate interest.

Q29. The sales manager assigned a target of selling 50 electric irons in one month to a group of 10 sales executives. They mutually decided to sell 5 electric irons each. However, after selling 1 electric iron, Akshit met with an accident. The other sales executive did not pay any attention to the remaining target of Akshit and concentrated on their individual sales target. A the end of the month, only 46 electric irons could be sold.

Identify and explain the principle of management violated in the given case.

Ans. Espirit de crops.

Q30. Taylor’s technique of management is universally applicable. Do you agree? Give a reason in support of your answer.

Ans. No, some techniques of scientific management are not universally applicable in some situations. These are:

(a) Functional Foremanship: – Functional foremanship insists on orders and instructions from eight specialists. This technique is not applicable in the organization following the principle of unity of command because according to the principles of unity of command, a subordinate should receive orders/ instructions from only one superior at a time. Moreover, the technique of functional foremanship is not applicable in the case of small-sized organizations.

(b) Differential Piece Wage system: This technique is also not applicable in the organization following the principle of equity as it differentiates the workers and divides them into two categories- efficient and inefficient and makes provision for payment of different wages for the same job.

Q31. Identify the techniques of scientific management highlighted in the following statements:

(a) To determine the standard time taken to perform a well-defined job.

(b) To find out the best way to do a particular job.

(c) When many specialists supervise each worker.

(d) Change in the attitude of workers and management towards one another from competition to cooperation.

(e) When uniformity is introduced in materials, machines, tools, methods of work, and working conditions after due research.

(f) Giving variable wages to workers based on their performance.

Ans. (a) Time study

(b) Method study

(c) Functional foremanship

(d) Mental revolution

(e) Standardization of work

(f) Differential piece wage system

Q32. Observe your school and find out what principles of management or scientific techniques they follow in the given situations:

(a) Books are found in the library, attendance registers in the administrator’s office; staff details in the accounts office.

(b) Proper salary is given to the staff for their services.

(c) Management is fair and impartial while dealing with their staff

(d) Employee suggestion system is followed in the school

(e) Deciding the duration of lessons.

(f) Arrangements in the science laboratories.

(g) students or parents can file their complaints or requests to the respective class teacher and if needed class teacher may discuss the matter with the head of the department followed by the vice principle if the matter is very serious then it may be taken to the principal followed by the chairman.

(h) Both staff members and management realize the importance of each other and work with a positive attitude and full cooperation.

Ans. (a) Order       (b) Remuneration of employees    (c) Equity           (d) Initiative        (e) Fatigue study     (f) Motion study       (g) Scalar chain     (h) Mental revolution

Q33. Neeraj is the owner of Solutions Ltd. Pays less fixed salaries to his sales managers but shares 20% of profits earned by the company on sales of each sales manager. He shared the profits for two years but once the business took off and the company started earning good profits, Neeraj thought that managers were being paid very high incentives, so decided not to share the actual cost with his employees. This led to agitation amongst sales staff. Two managers decided

To discuss the issue with Neeraj another manager Rajesh decided on another way. He reduced the sales volume and started selling products from other companies while working as an employee of Solutions Ltd.

(a) Identify and explain the principle of management Neeraj followed in the initial stage of business.

(b) name any two values Neeraj ignored when he decided not to share profits with its employees as agreed

(c) Was the action of Raman justified? Name any two values which he neglected.

Ans. (a) Equity

(b) Values ignored

  (i) Recognition and appreciation of the efforts of employees in achieving organizational goals

  (ii) Mutual understanding

  (iii) Sense of belongingness

  (iv) Empathy towards employees.

(c) No, he should have first discussed the issue with the management and if he did not get a satisfactory reply then could have looked for another job. It is not justified to do something that is against the interest of the company while working as an employee of the same company.

The following values are neglected:

(i) Priority to organizational interest over individual interest.

(ii) Belongingness to the organization

(iii) Loyalty

(iv) Misuse/ abuse of authority

Q34. Mr. Ashish, the production manager of ‘Gautam Ltd.’ Took special care of the interests and abilities of his subordinates while distributing work among them. He was of the firm opinion that a worker should be given one work again and again so that he may become an expert in it. One day he took a round of his department and noticed that the workers were not doing their job quickly. He did a detailed analysis of work and learned that the workers were continuously and that was the main reason for their slow speed. He immediately issued an order during their working hours. The workers will have an interval to take rest.

Identify and explain the principle of management and technique of scientific management discussed above.

Ans. (a) Division of work.

(b) Fatigue study.

Q35.Sagar is the Production Supervision in ‘Shenoy Ltd., 50 workers are working under him. He pays special attention to motivating his workers. For this, he made a plan in consultation with his departmental head. The plan was like this.’ The standard work of a day is 20 units. The workers who complete the standardized work or more shall get Rs. 25 per unit and those doing work less than the standardized work shall be given Rs. 20 per unit. For example, the worker doing the 27 units shall be paid 27 X 25 = Rs. 675 whereas the worker producing 22 units shall get 22 X 20 = Rs. 440 only. In this way the former worker shall get Rs. 235 more for doing more production of 5 units,’ According to Sagar, considering this difference in remuneration, the shirking workers shall be motivated to do more work. The implementation of this plan in the company yielded positive results.

Identify and explain the technique of scientific management discussed in the above para.

Ans. Differential piece wage system.

Q36. There are three departments, commerce, science, and arts in Delhi Public School. Mr. Sunil is the head of all three departments. Mrs. Shalini is the Principal of the school. She always keeps in mind that whatever message she is to convey to the teachers should be routed through the medium of the head of the department. All teachers have also been instructed that they too should communicate with the principal through the medium of the head of the department. Thus, there is a pre-defined arrangement of communication in the college. Mr. Sunil is looking after three departments of different natures. He is not able to manage them properly. The principal is also satisfied with his performance.

Identify and explain the principle of management that is followed and violated in the above case.

Ans. The principle followed – Scalar Chain

Principle Violated- Unity of direction

Q37. ‘Shenoy Constructions Ltd.’ Had never given any importance to the suggestions of its employees. All the employees in the company consider themselves superior to the others. They neither help anybody nor get help from anybody. Last year, Mr. Gurpreet was appointed as chief Manager of the company. He has an MBA from IIM Ahmedabad and also seven years’ experience in the same post. Immediately after taking charge, he decided to deal with both the problems of the company. He convened a meeting of all the employees and said, “All the employees are free to give their suggestions. Besides, the one who gives the best suggestions will be awarded a prize. In addition, he advised them to discard egos and extend help in each other’s work. We will have to give it the shape of a movement. Those who participate in this movement will be promoted at the earliest.” Gurpreet proved to be a good leader.

Identify and explain the principles of management discussed above by quoting the lines.

Ans. (a) Initiative

……, all the employees are free to give their suggestions. Besides, the one who gives the best suggestion will be awarded.’

(b) Espirit de crops

‘In addition, he advised …. Each other work.’

Q38. ‘New Delhi Ltd.’ Is a famous services-providing company Mr. Lakshay Wadhwa is its Managing Director. He continuously motivates his Research and Development department that new and latest methods of doing work. The provisions have also been made to give rewards to those employees who will participate in a particular exploration. He also believes that two groups working on managerial and non-managerial posts are similar to the two wheels of organizational vehicles. If this vehicle is to be driven in the right way, then both wheels should be properly aligned. Mr. Lakshay is a successful leader. Among his employees, he has instilled the feeling that no decision will be taken without consulting the subordinates. To excel, the other companies in this field is the main motive of Mr. Lakshay paying attention to training is the secret of the company.

Identify the four principles of scientific management highlighted in the above para by quoting the lines.

Ans. (a) Science, not the rule of Thumb

‘He continuously motivates his Research and Development department that new and latest methods of doing work must be explored.’

(b) Harmon, not Discord

‘if this vehicle is to be driven in the right way then both the wheels should be properly aligned.’

(c) cooperation, not individualism

‘Among his employees, he has instilled the feeling that no decision will be taken without consulting the subordinates.’

(d) development of Every person to his/ her

Greatest efficiency and Prosperity.

“Paying attention to training is the secret of the company.’

Q39. The Principles of Taylor and Fayol are mutually complementary. One believed that the management should scientifically select the person and the work assigned should suit his/her physical and intellectual capabilities, while the other suggested that the work can be performed more efficiently if divided into specialized tasks.

Identify and explain the principle of Fayol and Taylor referred to in the above para.

Ans. The principle Taylor referred to is the ‘Development of every person to his or her Greatest Efficiency and Prosperity.’

The principle of Fayol referred to is ‘Division of work.’

Q40.’Aapka Vidyalaya’ believes in the holistic development of students and encourages team building through a mix of curricular, co-curricular, and sports activities. On its Founder’s Day, a stage performance had to be put up. A committee of ten prefects was constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. There was a spirit of unity and harmony and all members supported each other. With mutual trust and belongingness, the program was systematically planned and executed. Kartik, one of the prefects realized that unknowingly the group had applied one of the principles of management while planning and executing the programme. He was so inspired by the success of the function that he asked his father to apply the same principle in his business. His father replied that he was already using this principle.

(a) Identify the principle of management applied for the success of the program.

(b) State any two features of management highlighted in the above para.

(c) Identify any two values which ‘Aapka Vidhalaya’ communicated to the society.

Ans. (a) Principle of management – Espirit de corps.

(b) features of management:

(i) Management is pervasive

‘… He asked his father to apply the same principle in his business.’

(ii) Management is a Group Activity

‘There was a spirit of unity and harmony and all members supported each other.’

(iii) Management is Goal Oriented

‘…. the program was systematically planned and executed.’

(iv) Management is Multidimensional

‘….. program was systematically planned and executed.’

OR

‘There was a spirit of unity and harmony and all members supported each other.’

(v) Management is intangible

‘With mutual trust and belongingness.’

OR

‘There was a spirit of unity and harmony and all members supported each other.’

(c) Values being communicated to the society.

(i) Concern for the environment

(ii) Holistic development of children

(iii) Teamwork

Q41. Voltech India Ltd. Manufacturing LED bulbs save electricity and running under heavy losses. To revive from the losses the management thought of shifting the unit to the backward area where labor is available at a low cost. The management also asked the workers to work overtime without any additional payment and promised to increase the wages of the workers after achieving its mission. Within a short period, the company started earning profits because both the management and the workers honored their commitment.

(a) State the principle of management described in the above para.

(b) Identify any two values that the company wants to communicate to society.

Ans. (a) Discipline

(b) Values that the company wants to communicate to the society:

(i) Development of the backward area

(ii) Determination to revive/ commitment

Q42. Telco. Ltd. Is manufacturing files and folders from old clothes to discourage the use of plastic files and folders. For this, they employ people from nearby villages where very less job opportunities are available. An employee, Harish, designed a plan for the cost reduction but it was also not welcomed by the production manager. Another employee gave some suggestions for improvement in design, but it was also not appreciated by the production manager.

Ans. (a) Initiative

(b) Values that the company wants to communicate to the society

(i) Proper utilization of natural resources.

(ii) Increase in employment opportunities in backward areas.

Q43. Lakshay is the production manager of Persistent Ltd. He has decided to study various movements of workers while performing a particular task so that unnecessary movements are eliminated. Identify the technique of scientific management highlighted here.

Ans. Motion

Q44. Nikhil the production manager of Croma Ltd. is not on good terms with the marketing manager. The boss has tried a lot to sort out problems and make their relations good but he was not successful.

The production manager instructed his foreman to restrict the supply to the marketing manager so that he would not able to achieve his sales target.

(a) Identify and explain the principle of management ignored in the above case.

(b) Write any two values ignored in the above case.

Ans. (a) Subordination of individual interest to general interest.

(b) values ignored:

(i) Responsibility towards achieving organizational goals.

(ii) organizational interest

(iii) Cooperation

(iv) Good human behavior

(v) Optimum utilization of resources.

Q45. In fashion Ltd. receptionist does not stay in one place and nobody attends the urgent call. Even she does not keep anything in its place. As a result, the company has to face problems.

(a) Identify and explain the principle of management violated above

(b) Write any two values overlooked in the above para.

Ans. (a) Order

(b) Values

Responsibility, Sincerity, Optimum utilization of resources

Q46. Rohan a supervisor in Progress Ltd. Suggested to his departmental head to install fuel-efficient machinery in the factory. The departmental head ignored his suggestion and also warned him not to come up with any suggestions in the future

(a) Identify and explain the principle of management overlooked in the above para.

(b) Write any two values ignored by the departmental head.

Ans.(a) Initiate

(b) Values

New ideas, respect towards employees, Flexibility

Q47. Gurpreet Ltd. Appointed Shenoy and Lakshay as assistant managers. Both of them are qualified MBAs, i.e., having the same educational qualification. Shenoy is from a rural area where fewer employment opportunities are available whereas Lakshay is from an urban area. However, the company does not discriminate between the two based on their background and offers the same salary.

(a) Identify and explain the principle of management being followed by the company.

(b) Identify any two values which are being emphasized by the company.

Ans. (a) Equity

(b) Values

Providing equal opportunities for growth to all.

No discrimination among employees.

Q48. Ritesh is working in a shoe manufacturing company. The management asked him to work overtime to produce more to meet the increase in demand in the market. But he was not paid adequate wages for extra time so he never contributed to his maximum.

(a) Which principle of Fayol is violated in the above case? State.

(b) Which values can be emphasized by following the above principle?

(c) Which values are ignored in the above situation?

Ans. (a) Remuneration of employees: This principle states that remuneration payable to employees should be fair, equitable, and reasonable to give the maximum amount of satisfaction to both the employees and the organization.

(b) Value Points

Motivation, Respect towards employees

(c) value Points

Respect for employees

Motivation

Responsibility and sincerity of the employee

Initiative

Co- operation

Q49. Sunil is a general manager of Vijay Automobiles Ltd. He thinks that people belonging to the upper cast are very intelligent, hardworking, and cooperative. Accordingly, he rejects the candidates of low-caste people and selects Gaurav from the cast as a foreman of the factory. During his work, Gaurav is asked by the production manager to increase the quantity of production but the marketing manager orders him to concentrate on quality and not on quantity. In such a situation, Gaurav is confused.

(a) Name the principle of management which is not followed by Vijay Automobiles Ltd.

(b) Mention any two values which are being ignored.

Ans. (a) Vijay Automobiles Ltd. Is not following the principles of unity of command

(b) Sunil is promoting a social evil named casteism I.e., bias for upper caste people. The qualities of intelligence, hard work, and cooperation do not depend on the caste of the employee. Hence, Sunil is conservation in his approach and ignores the progressive outlook.

Q50. Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both are working hard and are happy with their employer. Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss. All the employees in the organization knew about it. At the time of the performance appraisal, the performance of Nikita was judged better than Salman’s. Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita would not be able to handle the complications of a higher post.

(a) Identify and explain the principle of management which was not followed by this multinational company.

(b) Identify the values which are being ignored by quoting the lines from the above para.

Ans. (a) The principle of management which has been violated is ‘Equity.’

(b) The values which are being ignored are:

 (i) Good Human Behaviour Because ‘Salman had the habit of backbiting and wrong reporting about his colleagues to impress his boss.’

(ii) Gender Equality because ‘Their boss decided to promote Salman stating that being a female, Nikita will not be able to handle the complications of a higher post.’

Q51. A manager of a company knows that one of the newly appointed workers belongs to the reserved category and he always undermines that employee performance. Which principle of Fayol is violated here? Explain also.

Ans. The management is ignoring the principle of ‘Equity’.

Q52. Mr. Vijay a Manager of ABC Ltd. Believes that men are more hardworking and can contribute extra to the organization as compared to women so gave Rs. 15,000 p.m. salary to Anubha, whereas just 11,000 p.m. to Geeta, but was working as data entry operator, having same qualifications and same years of experience. Do you justify the decision of Mr. Joginder. What value is lacking in the above condition? Also, explain which principle is violated.

Ans. We do not justify the actions of Mr. Vijay.

The value that is lacking in this question is equity, the manager has violated the ‘Principle of equity.’ Explain this principle.

Q53. Kanishka is an executive who makes different interpretations of a rule while dealing with different employees to harm a group of employees belonging to other religions.

(a) Which principle of management Kanishka is violating? Explain.

(b) Which value is being ignored?

Ans. (a) Principle of equity

(b) Secularism- equal respect for all religions.

Q54. Anushka and Deepak having the same educational qualifications are working as managers in Alfa Ltd. Anushka belongs to a rural area where employment opportunities are very limited whereas Deepak belongs to an urban area, ignoring many other differences between the two management of Alfa Ltd. Appointed them as assistant manager, on the same salary package of Rs. 35,000 per month.

(a) Name and briefly explain the principle of management being followed in the above case.

(b) Identify any two values that the Management of Alfa Ltd. Emphasizes by not differentiating between the two.

Ans. (a) Principle of Equity

(b) Value Points

  (i) No discrimination on any basis.

  (ii) Providing equal opportunities to all.

Q55. Vijay Ltd. Was not performing well. After detailed analysis, it was discovered that workers of the Production Department were not satisfied with the behavior of Mr. Vikram, the production manager, as workers were forced to work for a long keeping this in view the management decided to replace Mr. Vikram with Mr. Gurpreet who had recently completed his M.B.A from IIM Ahmedabad. Mr. Gurpreet did a detailed analysis of work that involved heavy manual labor. He allowed small pauses to the workers so that they could recharge their energy for optimum contribution.

(a) Name and explain the technique of scientific management adopted by Mr. Gurpreet.

(b) He further desires to find out the best ways of doing a job. Suggest to him the technique of scientific management.

(c) State any two Values emphasized by allowing small pauses to workers.

Ans. (a) Fatigue study: A fatigue study seeks to determine the amount and frequency of rest intervals required in completing a task.

(b) Method study

(c) value points

Respect toward employees, Humanity, and care for employees’ health.

Q56. Mr. Nitin manager of a well-known company asked his employees to do overtime and canceled all the leaves of his employees for the next two weeks to cover up the extra order due to the festival season, whereas he took three days off for relaxation. Do you justify the action of Mr. Nitin? Also, explain the principle of scientific management which is violated here.

Ans. Mr. Nitin’s decision to ask employees to do overtime is correct as he wanted to supply the order on time, but the value that is lacking here is ‘cooperation, not individualism.’ Managers must work hand in hand with workers. If he expects his workers to cancel their leaves, he should also work with them.

Explain Taylor’s principle of scientific management- ‘Cooperation, not individualism.’

Q57. Daksh Ltd. A refrigerator manufacturing company has been established for more than ten years. Having made good profits in the past, the company wanted to expand further and hence didn’t declare a bonus for the previous year. The workers got agitated and the trade union declared a strike and demanded bonuses and other facilities. The management decided not to give in to their demands.

(a) Identify and explain the Taylor’s principle being violated in the above case.

(b) State any two values overlooked/ ignored by the management in the above case.

Ans. (a) Harmony not Discord (Conflict)

(b) Value Points

(i) Mutual understanding (ii) Empathy (iii) Peace and stability

(iv) Society- law and order (v) Sense of belongingness (vi) Recognition of the rights of others

Q58. Vishal wants to become an ideal manager. For this, he reads various management books. After reading various broad and general guidelines he prepares himself to apply them and make his work more meaningful. The necessary outcome will be his improved output. Identify the concept of management highlighted above.

Ans. Principles of management

Q59. Tarun works in a bulb manufacturing company. Each bulb that is manufactured is of standard size and quality. Further, if there is any unrequired type of bulb manufactured then its production is stopped like last month when the company came to know that 10-watt bulbs are no longer liked by customers. Their production was stopped. Tarun works in the purchase department. His job is to purchase the filaments required to make bulbs. This time when he purchases the filaments, he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments he gets the instruction from the seller that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Tarun knows this information should be given immediately to the production department before the assembly process starts. However, he finds that his company’s policy only allows him to give the message to his immediate boss who will further pass this message to his boss. The passing of this message will continue till it reaches the desired person in the production process.

(a) Identify the techniques of management highlighted in the above case by quoting the lines

(b) Also identify the principle of management followed here by the company by quoting lines.

(c) Which option is now available to Tarun since the company is not allowing him to interact with the concerned person in the production department? Quote the lines also.

Ans. Standardization.

‘Each bulb…….. standard size and quality.’

(b) Scalar chain

‘However, he finds that …….. pass this message to his boss.’

(c) Gangplank as this is an emergency

‘Tarun knows …….. immediately to the production department.’

Q60. Futuristic Public School is a renowned school in Delhi. When it was found it lacked rules and regulations. With time, the management of the school found out that if there are proper rules and regulations for the students and teachers the results of the school improve.

Identify and state the nature of the principle of management highlighted above.

Ans. Formed by practice and experimentation.

Q61. In a big steel manufacturing company, there was a constant training program running for the workers throughout the year. The workers were trained about the machines as the management realized that management is all about the relationship among workers and their proper handling of the machinery. As the size of the organization increased, the management decided to release the hold on the day-to-day activities of the organization. A more decentralized approach was adopted where the workers could decide about the machines and the amount of raw material required instead of the traditional centralized approach. The management knows that the external environment is dynamic. To face intense competition, they clarified to the workers that their instructions should not be taken as rigid statements and should be modified according to the circumstances.

Identify and explain the three natures of principles of management highlighted above by quoting the lines.

Ans. (a) Mainly behavioral.

‘The workers were trained ………. Proper handling of the machines.’

(b) Flexible

‘A more decentralized approach ……… instead of the traditional centralized approach.’

(c) General Guidelines

‘To face intense competition …….. modified according to the circumstances.’

Q62. Deepak Ltd., a leading manufacturer of iron and steel decided to open up a new branch in a remote area in Rajasthan so that unemployed youth from the rural areas could get the same opportunities as those available in the urban areas. This innovative step has raised the standard of living of people in rural areas. All children in these families are getting good education and these families are also actively contributing in the nation building through their dedicated work.

(a) Identify the objective of management highlighted in the above-mentioned case.

(b) Identify and explain the principle of management highlighted in the given case.

Ans. (a) Social objective

(b) Initiative

Q63.The production manager assigned a target of producing 1,000 TV sets in July to a group of 10 workers. They mutually decided to produce 100 TV sets each. Among them, Vikas fell sick. The other workers refused to divide their work among themselves and concentrated only on the production of their targets of production. As a result, the group target of 1,000 TV sets could not be achieved.

(a) Which characteristic of management is violated in the above para?

(b) Name and explain the principle of Fayol which is violated in the above para.

Ans. (a) Management is a group activity

(b) Espirit de crops

Q64. Mr. Paras, Mr. Kunal, and Mr. Nishant are the production managers of three different manufacturing enterprises; viz Unity Ltd., Focus Ltd., and Effort’s Ltd.; they follow different strategies to manage production.

Efforts Ltd. ensures proper arrangement of things and placement of people. This helps in increasing productivity and efficiency and complete utilization of resources as no time is wasted in tracing the resources.

Due to power failure most of the time, Mr. Paras operates on double shifts to complete the target production. He can achieve the target but at a higher production cost. Mr. Kunal’s consideration is cost cutting. So, he concentrates more on producing goods with fewer resources. He can achieve target production. Mr. Nishat uses minimum resources to achieve target production and is also able to produce goods at a lower cost.

(a) In the above-mentioned case two important aspects of management have been highlighted which are two sides of the same coin. Identify those two aspects.

(b) Mention the name of the manager who has considered both aspects.

(c) Identify and explain the principle of management being followed in Effort’s Ltd.

Ans. (a) The two concepts referred to above are “efficiency and “effectiveness”.

(b) Mr. Nishant has considered both aspects.

(c) Principle of order.

Q65. Varun Ltd. Is engaged in manufacturing electrical appliances. The company has been facing a lot of problems for the last few months because of chaos between two departments i.e., the Production department and the sales department. The sales department blames the production department for delayed production. However, production departments blame the sales department for poor sales. The force that integrates the two departments is missing.

Moreover, in the production department, both the management and the workers do not realize the importance of each other. There is a lack of cooperation, mutual trust, and a sense of goodwill between the manager and workers.

(a) identify the missing force in the above case and list its two characteristics.

(b) Identify and explain the principle of scientific management which is being referred to above.

Ans. (a) Coordination

          (i) Integrates group efforts

          (ii) Ensure unity of action

(b) Harmony, not discord

Q66. Rishabh Ltd. Was not performing well. After detailed analysis, it was discovered that workers of the production departments were not satisfied with the behavior of Mr. Vikram, the production manager, as workers were forced to work for long hours without any rest.

Keeping this in view the management decided to replace Mr. Vikram with Mr. Gurpreet who had recently completed his M.B.A. from IIM Ahmedabad. Mr. Gurpreet did a detailed analysis of work that involved heavy manual labor. He allowed small pauses to the workers so that they could recharge their energy for optimum contribution. He also conducted a detailed analysis of the environment in which the business exists and thus used to change the goals according to the needs of the environment.

(a) Name and explain the technique of scientific management adopted by Mr. Gurpreet.

(b) He further desires to find out the best ways to do a job. Suggest to him the technique of scientific management.

(c) Name and explain the characteristics of management being referred to above.

Ans. (a) Fatigue study

(b) Method study

(c) Management is a dynamic function

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