NCERT 2023 Solutions For Class 12 Business Studies Chapter 2
CBSE class 12 business studies NCERT solution for Chapter 2 Principles of Management with solved pdf is now available here at Vidya Setu. Solution notes for CBSE class 12 business studies chapter 2 will help students to score good marks in the upcoming exams. Every student who opted for Commerce Stream has to appear for business studies exams. Business studies are the main subject for the commerce stream students.
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The important Chapters of the 2021 CBSE Class 12 Business Studies Syllabus are mentioned below:
Important chapters of Business Studies
Part A: Principles and Functions of Management
- Nature and Significance of Management
- Principles of Management
- Business Environment
Part B: Business Finance and Marketing
- Financial Management
- Financial Markets
- Marketing Management
- Consumer Protection
NCERT Solution for Class 12 Business Studies of Chapter 2 Principles of Management
Download the PDF of NCERT Solution for Class 12 Business Studies of Chapter 1 Nature and Significance of Management
In this Blog, we will solve the short answer questions of Principles of Management Class 12 Chapter-2 of Ncert book.
Very Short Answer Type:
- What makes the principles of management flexible?
- State the main objective of time study.
- Name the principle that is an extension of the ‘harmony, not discord’.
- State any two causes of fatigue that may create hindrance in the employee’s performance.
- SanakLal and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. Name the principle of management followed by Wales Limited.
- Which technique is used by Taylor for distinguishing efficient and inefficient workers?
Short Answer Type
- How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.
- Define scientific management. State any three of its principles.
- If an organization does not provide the right place for physical and human resources in an organization, which principle is violated? What are the consequences of it?
- Explain any four points regarding the significance of Principles of management.
- Explain the principle of ‘Scalar Chain’ and gangplank.
Long Answer Type
- Explain the Principles of Scientific management given by Taylor.
- Explain the following Principles of management given by Fayol with examples:
- (a) Unity of direction
- (b) Equity
- (c) Espirit de corps
- (d) Order
- (e) Centralisation and decentralization
- (f) Initiative
- Explain the technique of ‘Functional Foremanship’ and the concept of ‘Mental Revolution’ as enunciated by Taylor.
- Discuss the following techniques of Scientific Work Study:
- (a) Time Study
- (b) Motion Study
- (c) Fatigue Study
- (d) Method Study
- (e) Simplification and standardization of work
- Discuss the differences between the contributions of Taylor and Fayol.
- Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.
After studying this chapter, you should be able to:
- State the meaning, nature, and significance of principles of management;
- Explain Taylor’s principles and techniques of Scientific Management; and
- Explain Fayol’s principles of management.
CBSE/NCERT Class12 B.St Chapter 2, Principles of Management: The Concept, Lecture- 1
A managerial principle is a broad and general guideline for decision making and behavior. For example, while deciding about the promotion of an employee one manager may consider seniority, whereas the other may follow the principle of merit. One may distinguish principles of management from those of pure science. Management principles are not as rigid as principles of pure science. They deal with human behaviour and, thus, are to be applied creatively given the demands of the situation. Human behavior is never static and so also technology, which affects business. Hence all the principles have to keep pace with these changes.
CBSE/NCERT Class12 B.St Chapter 2, Principles of Management: Nature, Lecture- 2
By nature is the qualities and characteristics of anything. Principles are general propositions, which are applicable when certain conditions are present. These have been developed on the basis of observation and experimentation as well as the personal experiences of the managers.
Depending upon how they are derived and how effective they are in explaining and predicting managerial behavior, they contribute towards the development of management both as a science and as an art. Derivation of these principles may be said to be a matter of science and their creative application may be regarded as an art. These principles lend credibility of a learnable and teachable discipline to the practice of management. As such, the ascent to the managerial position may not be a matter of birth, but a matter of requisite qualifications. Clearly, management principles have gained importance with the increasing professionalization of management.
CBSE/NCERT Class12 B.St Chapter 2, Principles of Management: Significance, Lecture- 3
The principles of management derive their significance from their utility. They provide useful insights to managerial behavior and influence managerial practices. Managers may apply these principles to fulfil their tasks and responsibilities. Principles guide managers in making and implementing decisions. It may be appreciated that everything worthwhile is governed by an underlying principle. The quest of the management theorists has been and should be to unearth the underlying principles with a view to using these under repetitive circumstances as a matter of management habit.
CBSE/NCERT Class12 B.St Chapter 2, Principles of Management: Scientific Management Lect4
In the words of Taylor, “Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way. The Bethlehem Steel company where Taylor himself worked achieved a three-fold increase in productivity by application of scientific management principles.
In the factory system, the foreman represents the managerial figure with whom the workers are in face-to-face contact on a daily basis. In the first chapter of the book, you have seen that the foreman is the lowest ranking manager and the highest-ranking worker. He is the pivot around whom the entire production planning, implementation, and control revolves. Thus, Taylor concentrated on improving the performance of this role in the factory set-up. In fact, he identified a list of qualities of a good foreman/supervisor and found that no single person could fit them all. This prompted him to suggest functional foremanship through eight persons.
CBSE/NCERT Class12 B.St Chapter 2, Fayol’s Principles of Management, Lecture-6
Fayol’s Principles of Management
In the development of the classical school of management thought, Fayol’s
an administrative theory provides an important link. While Taylor succeeded in revolutionizing the working of factory shop-floor in terms of devising the best method, fair day’s work, differential piece-rate system, and functional foremanship; Henri Fayol explained what amounts to a manager’s work and what principles should be followed in doing this work. If workers’ efficiency mattered in the factory system, so does managerial efficiency.
CBSE/NCERT Class12 B.St Chapter 2, Trick to Remember Fayol’s Principles of Management-2 Lect-7
CBSE/NCERT Class12 B.St Chapter 2, Difference Between Fayol’s & Taylor Principles of Management Lect11
We are now in a position to compare the contributions of both Fayol and Taylor. Both of them have contributed immensely to the knowledge of management, which has formed a basis for further practice by managers. It must be pointed out that their contributions are complementary to each other. We can make out the following points of difference between their contributions.
Short Answer Type
1. How is the Principle of ‘Unity of Command’ useful to management? Explain briefly.
According to Fayol, there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organization should receive orders from and be responsible to only one superior.
Fayol gave a lot of importance to this principle. He felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”. The principle resembles a military organization. Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done. Suppose a salesperson is asked to clinch a deal with a buyer and is allowed to give a 10% discount by the marketing manager. But the finance department tells her/ him not to offer more than 5% discount. Now there is no unity of command. This can be avoided if there is coordination between various departments.According to Marrie and Douglas, “Management is the process by which a co-operative group directs actions of others toward common goals.” Management is defined as the process of planning, organizing, and controlling an organization’s operations in order to achieve the target efficiently and effectively. It is essential for all organizations. Management is essential for all organizations big or small, profit or non-profit, services, or manufacturing. Management is necessary so that individuals make their best contribution towards group objective
2. Name any two important characteristics of management.
We find some elements that may be called the basic characteristics of management:
(i) Management is a goal-oriented process: An organization has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organizations have different goals. For
example, the goal of a retail store may be to increase sales, but the goal of The Spastics Society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organization towards achieving these goals.
(ii) Management is all-pervasive: The activities involved in managing an enterprise are common to all organizations whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA, Germany or Japan is the same.
How they do it may be quite different. This difference is due to the differences in culture, tradition, and history.
(iii) Management is multidimensional: Management is a complex activity that has three main dimensions.
3. Ritu is the manager of the northern division of a large corporate house. At What level does she work in the organization? What are her basic functions?
The time spent by managers in different functions however is different. Managers at the top-level spend more time in planning and organizing than managers at lower levels of the organization. Management consists of a series of interrelated functions that are performed by all managers. Shiv Nadar, the CEO of HCL Enterprises Performs all these functions and so does Ritu. Management is a universal term used for certain functions performed by individuals in an enterprise who are bound together in a hierarchy of relationships. Every individual in the hierarchy is responsible for the successful completion of a particular task. To be able to fulfill that responsibility he is assigned a certain amount of authority or the right to make a decision. This authority-responsibility relationship binds individuals as superiors and subordinates and gives rise to different levels in an organization. Generally speaking, there are three levels in the hierarchy of an organization.
4. Why is management considered a multi-faceted concept?
The activities involved in managing an enterprise are common to all organizations whether economic, social, or political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA, Germany or Japan is the same.
How they do it may be quite different. This difference is due to the differences in culture, tradition, and history. Management is Multifaceted. Management is a complex activity that has three main dimensions.
5. Discuss the basic features of management as a profession.
Long Answer Type
1. Management is considered to be both an art and science. Explain. Does this imply that management is a profession?
2. Do you think management has the characteristics of a full-fledged profession?
Art is the skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience.
Science is a systematized body of knowledge that explains certain general truths or the operation of general laws. You would also have observed that organisations look for individuals with specific qualifications and experience to manage them. It has also been
observed that there has been an increase in the corporate form of business on the one hand and increasing emphasis on managed business concerns.
3. Coordination is the essence of management. Do you agree? Give reasons.
The definitions are given above highlight the following features of coordination:
(i) Coordination integrates group efforts: Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a common focus to a group effort to ensure that performance is as it was planned and scheduled.
(ii) Coordination ensures the unity of action: The purpose of coordination is to secure unity of action in the realization of a common purpose. It acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organization. You have observed that at Fabmart, the production and sales departments have to coordinate their work, so that production takes place according to the demand in the market. So yes coordination is the essence of management.
4. “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.
Management is a goal-oriented process: An organization has a set of basic goals which are the basic reason for its existence. These should be simple and clearly stated. Different organizations have different goals. For example, the goal of a retail store may be to increase sales, but the goal of The Spastics Society of India is to impart education to children with special needs. Management unites the efforts of different individuals in the organization towards achieving these goals.
Management seeks to achieve certain goals which are the desired result of any activity. They must be derived from the basic purpose of the business. In any organization, there are different objectives and management has to achieve all objectives in an effective and efficient manner. Objectives can be classified into organizational objectives, social objectives, and personal or individual objectives. management is a universal activity that is integral to any organization
5. Management is a series of continuous interrelated functions.
Management is described as the process of planning, organizing, directing, and controlling the efforts of organizational members and of using organizational resources to achieve specific goals.
Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively.
Organizing is the management function of assigning duties, grouping tasks, establishing authority, and allocating resources required to carry out a specific plan.
Staffing simply stated, is finding the right people for the right job. A very important aspect of management is to make sure that the right people with the right qualifications are available in the right places.
Directing involves leading, influencing, and motivating employees to perform the tasks assigned to them.
Controlling is the management function of monitoring organizational performance towards the attainment of organizational goals.
Download the PDF of NCERT Solution for Class 12 Business Studies of Chapter 1 Nature and Significance of Management
Short Answer Type
- Define management.
- Name any two important characteristics of management.
- Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organization? What are her basic functions?
- Why is management considered a multi-faceted concept?
- Discuss the basic features of management as a profession.
Long Answer Type
- Management is considered to be both an art and science Explain.
- Do you think management has the characteristics of a full-fledged profession?
- Coordination is the essence of management. Do you agree? Give reasons.
- “A successful enterprise has to achieve its goals effectively and efficiently.” Explain.
- Management is a series of continuous interrelated functions.
Why are Students advised to study from CBSE class 12 business studies NCERT solutions?
- It helps students by knowing what kind of questions can come in the business studies examination.
- Students will be aware of the marking scheme and the question pattern.
- Candidates can analyze their preparation for the coming exam by solving the previous year’s question papers.
- Candidates even practice how to manage time during exams.
We hope that class 12th students have found the CBSE class 12 business studies NCERT Solution for Chapter 1 Nature and Significance of Management beneficial for preparation for the upcoming business studies exam. Chapter-wise Solution of CBSE class 12 from this page and achieve the best out of it. Stay tuned with VidyaSetu, and it will keep you updated and tuned for all the information regarding CBSE class 12th business studies exams. Students are also advised to solve class 12 business studies sample papers for practice and better understanding.
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Students also Asked
Q.Which are the subjects in 12th commerce?
The students of commerce stream have to choose 1 language subject from Hindi and English, Accounts, Economics, and Business studies are 3 compulsory subjects for commerce students. Students prefer to choose an Entrepreneurship subject to enhance their managerial and business skills.
Q.How can I prepare for the 12th Business Studies chapters?
While studying for a Business Studies subjects student should consider the following points that can help them achieve good marks in exams
- Make individual notes of every topic of business studies and which define their role, their properties, their advantage, and more
- Make charts of topics for quick references.
- Should practice more problems from the exercises.
- Students should prepare notes to understand the basic concepts of business.
- Should have a clear understanding of all the chapters
- Should follow the word limit while answering questions.
- Should go through entire NCERT recommended books.
- Watch VidyaSetu videos for better learning
Q.How many books are there for Business Studies commerce Class 12?
A.Books for commerce subjects are provided by NCERT in both Hindi and English language.
Vyavsay Adhyayan in Hindi
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A Join Vidyasetu for a clear and proper understanding of Commerce subjects. We are the best guide for students of class XI and XII of the CBSE board.