IMPORTANT 10+ CASE STUDIES – PRINCIPLES OF MANAGEMENT, CLASS XII BUSINESS STUDIES: 2023-24
Q.1. Mr Rakesh Kathuria is the owner of "Kathuria Sports Store". He has divided his business into four departments. All departmental managers have been instructed to comply with certain general guidelines while discharging their functions. By doing so, they will definitely achieve better performance. All managers complied with this instruction.
Identify the concept of management mentioned in the above paragraph.
Ans. Principles of Management.
Q.2. Marketing manager of ‘Guru Kripa Ltd.' has set sales target of his Sales Executives. But he did not give them the authority to grant rebate and credit facility to the customers, which are so essential on various occasions. Consequently sales executives failed to achieve their targets.
Identify the principle of management ignored in this case.
Ans. Principle of Authority and Responsibility.
Q.3. ‘Aapka Vidyalaya' believes in holistic development of students and encourages team building through a mix of curricular and sports activities. On its founders day a stage performance had to be put up. A committee of ten perfects 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 programme was systematically planned and executed. Kartik, one of the perfects realised 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 fathes replied that he was already using this principle.
(A) Identify the principle of management applied for the success of the programme.
(B) State any two features of management highlighted in the above para.
(C) Identify any two values which 'Aapka Vidyalaya' 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." It means management is necessary to conduct any type of activities.
ii) Management is a Group Activity
"There was a spirit of unity and harmony and all members supported each other." It means that it is not a single person who consumption all the activities of an organisation but it is always a group of persons.
(C) Values being communicated to the society:
∆ Concern for the environment
∆ Holistic development of children.
Q.4. 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 organisation knew about it. At the time of performance appraisal the performance of Nikita was judged better than Salman. Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita will not be able to handle the complications of higher post.
(A) Identify and explain the principle of management which was not followed by this multi- national company.
(B) Identify the values which are being ignored quoting the lines from the above para.
Ans. (A) The Principle of ‘Equity' is Violated.
This principle tells that the mangers should treat their subordinates in a just and kind manner so that they develop a feeling of dedication and attachment for their work.
(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".
Q.5. Manger of "Sargodha Ltd." Has enforced the following concepts of management in his company.
Identify the same:
(i) To find out the best method of doing work
(ii) Creating the spirit of cooperation in place of competition between managers and workers.
Ans. (i) Method Study
(ii) Mental Revolution.
Q.6. Production manager of "Agarawal Pvt. Ltd." took special care of the interest and abilities of his subordinates while distributing work among them. He was one of the firm opinion that a worker should be given one work again and again that he may become expert in it. One day he took round of his department and noticed that the workers were not doing their job quickly. On enquiry he learnt that the workers worked non-stop and that was the main cause of their slow speed. He immediately issued an order that during their working hours, the workers will have an interval to take rest.
In the above paragraph a principle and a technique of management have been discussed. Identify the same.
Ans. (i) Principle of Division of work.
(ii) Fatigue study.
Q.7. In a manufacturing company as many as 100 labourers are working in the production department. Eight specialists have been appointed to look after their work to issue command to them and to listen to their complaints. They give to the labourers on different issues relating to their work.
(i) What technique of scientific management is being followed here?
(ii) Which principle of management is being ignored in this case?
Ans. (i) Functional Foremanship.
(ii) Unity of command.
Q.8. Mr Raj Singh set up "Raj Gharana Private Ltd." The objective of the company was to make the people of the city a modern venue for functions available. Mr Raj Singh became the Managing Director of the company. He prepared a list of all the activities to be performed in the company. All the activities were divided into four main parts. On the basis of these main parts four departments were set up; namely, finance, marketing, production and human resource development. The appointments of manager were made in these departments. Each departmental manager was repeatedly given certain specific activities to do so that he may become a specialist of his special field.
Which principle of management has been discussed in the paragraph given above?
Ans. The principle of Division of work.
Q.9. Mr Manish Sisodiya is working on the post of Production Supervisor in ‘Molta Ltd.' There are 45 workers working working under him. He pays a special attention to motivate his workers. To this end, he made a plan in consultation with his departmental head. The plan was like this: ‘The standardised work of a day is 10 units. The workers who complete the standardised work or more shall get rs.50 per unit and those during work less than the standardised work shall be given rs.40 per unit. For example, the worker doing the production of 11 units shall be paid 11 x 50= rs.550 while the worker completing 9 units of production shall get 9 × 40= rs.360 only. In this way the former worker shall get rs 190 more for doing more production of 2 units.' According to Mr Sisodiya, considering this difference of 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 concept of management described in the paragraph given above.
Ans. Here the ‘Scientific Management Technique- Differential Wage System' expounded by Taylor has been described.
It refers to that Scientific Management Technique which differentiates between the efficient and inefficient workers.
Q.10. ‘Haryana Handloom Ltd.' manufactures bedsheets. Noticing its popularity in the market, the company decided to manufacture curtain cloth also. The decision was executed with immediate effect. But the company did not increase the manpower to the desired extent. Company wanted the existing staff to manage the work for sometime, by working overtime. The result was that on the one hand, the new product of the company failed to keep its hold on the market and on the other hand, due to over-work efficiency of the employees declined. On several occasions it was observed that a subordinate was getting instructions from two or more officers. Managers too had started giving simple and easy work to their known employees and complex and difficult work to other employees. Company was now ignoring rules completely.
Quoting the lines, identify those three principles of management that have been ignored here.
Ans. (i) "On several occasions.................more officers."
Unity of Command.
(ii) "Manager too had................ other employees."
Equity.
(iii) "Company was now...................rules completely."
Discipline.
Q.11. Mr Sanjeev Sharma is the Chief Execute Officer (CEO) of "Gujrat Sales Limited". Production Manager of his company is going to get the repair work of a part of his factory done, on a large scale. As such, company will not be able to produce some of the products for some time. It will have to sale those goods which are lying in stock. Considering it, the production manager has asked the sales executives to slow down the pace of sales. On the other hand, since the sales manager has high targets of sales, he has been insisting on the sales of executives to speed up the sales.
(A) Which principle of management is being ignored by the company in the above paragraph?
(B) Write down any one consequence of the violation of the principle mentioned in (A) above.
(C) Which concept of management is being ignored by the company in this case?
Ans. (A) Principle of Unity of Command, has been violated here.
(B) Violation of this principle brings down the efficiency of the subordinates.
(C) CEO of the company has failed to effect coordination in this case.
Q.12. Dr R.K. Miglani, the owner of "Miglani Nursing Home" is a reowned Surgeon. Twenty doctors, forty nurses and sixty attendants are working in the nursing home. Everyday several successful operations are conducted here. Miss Partigya Sharma, a student of Class XII has been preparing her project on this nursing home. She is permitted to visit the nursing home once in a week. During the course of her visit, she observed a unique thing. That is whenever she visited the nursing home old faces were not visible. Instead she found new faces. On scrutiny, it transpired that the behaviour of its administrator was very strict. People come here, serve for a few days and go away.
In the above paragraph, which principle of management has been ignored. Write two consequences of its ignoring.
Ans. Here principle of management, i.e.., "Stability of Personnel" has been violated. According to this principle, stability of personnel should continue so that work is accomplished efficiently.
Consequences of violation:
(i) Decline in the company's credit.
(ii) Increase in recruitment and training cost.
Q.13. There are three departments, Arts, Science and Commerce in a college. Dr Sahil Budhiraja is the head of all the three departments. He is an M.Com, Ph.D Dr Rekha Sood is the Principal of the college. She always keeps this in mind that whatever message she is to convey to the teachers should be routed through the of head of the department. All teachers have also been instructed that they too should communicate with the Principal through the medium of head of the department. Thus there is a pre-defined arrangement of communication in the college. Dr Budhiraja is looking after three departments of different nature. He is not ble to control them properly. Principal is also not satisfied with his performance
Identify and explain two principles of management mentioned in the above paragraph. Quote the lines of the identified principles.
Ans. (i) "She always keeps this in mind that whatever she is to convey to the teachers she communicates it through the medium of head of the department."
∆Principle of Scalar Chain.
College is following the principle. By following this principle orderly flow of communication is established.
(ii) "Dr Budhiraja is looking after three departments of different nature."
∆ Principle of Unity of Direction.
College is ignoring this principle. Nature of the three departments of the college is different. As such, their heads should not only be different but also such persons as belong to the concerned department. By pursuing this principle, efficiency of the organisation improves.
Q.14. ‘Rahat Medicine Ltd.' has never given any importance to the suggestions of its employees. Every person holding managerial position in the company considers himself wiser than the other. They neither help anybody nor get help from anybody. Last year, Mr Sonali Chauhan was appointed Chief Manager of the company against a vacant post. She was an MBA from IIM Lucknow and had also five-year experience of the same post. Immediately after taking charge she decided to deal with both the problems of the company. She convened a meeting of all the employees and said. "Employees of all levels (managerial and non-managerial) are free to give their suggestions. Besides, the one who gives the best suggestion will be awarded a prize. In addition, she advised them to discard ego and extend help in each others work. We will have to give it the shape of a movement. Those who participate in this moment will be prometed at the earliest." This address had a positive effect on the employees. Both the problems of the company disappeared very soon. Kumari Sonali proved to be a good leader.
Identify by quoting lines, the two principles of management mentioned in the above paragraph and give their meaning.
Ans. (i)......................,"Employees of all levels (managerial and non-managerial) are free to give them suggestions. Besides, the one who gives the best suggestion will be awarded a prize." Principle of initiative: According to this principle, "employees in the organisation must be given an opportunity in making and executing plan."
(ii) In addition, she advised....................each others work."
Espirit De Corps: As per this principle, a manager should constantly make efforts to develop a team spirit among the subordinates.
Q.15. "Uttaranchal Fairdeal Lamited" is a famous services providing company. Mr Chandan Pushkar is its Managing Director. He continuously motivates his Research and Development Department that new and latest methods of doing work be explored. Provision has also been made to give reward to those employees who all participate in a particular exploration. He also believes that two groups working on managerial and non-managerial posts are similar to two wheels of an organisational vehicle. If this vehicle (organisation) is to be driven in a right way then both the wheels should be properly aligned. Mr Pushkar 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. Pushkar. Paying attention to training is the secret of the company.
Identify by quoting the lines four principles of scientific management as mentioned in the above paragraph.
Ans. (i) "He continuously motivates his Research and Development department that new and latest methods of doing work must be explored."
∆ Science, not Rule of Thumb.
(ii) "If this vehicle (organisation) is to be driven in a right way then both the wheels should be properly aligned."
∆ Harmony, not discord.
(iii) "Among his employers he has instilled the feeling that no decision will be taken without consulting the subordinates" ∆ Co-operation and not Individualism.
(iv) Paying attention to training is the secret of the company.
∆ Development of each and every person to his/her greatest efficiency and prosperity.
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