Let’s take Business Studies MCQs on Principles of Management.
Question 1. Mr Mukesh used to manufacture shoes by employing labour who were easily available. When his son after completion is MBA joined the business. He analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.
Answer the following questions. Based on the above case studies.
Which technique of scientific management is used by his son.
(A) Work study
(B) Motion study
(C) Method study
(D) Fatigue study
Question 2. What is the objective of that technique?
(A) Finding the best way of doing thing
(B) Finding the minimum cost
(C) Finding the rest interval
(D) All of the above.
Question 3. Manager of ABC ltd. does not allocate work as per the capability of workers.Which principle is violated by them.
(A) Principle of Division of work
(B) Principle of discipline
(C) Principle of order
(D) Principle of equity
Question 4. The salesman of ABC ltd. could not achieve his sales target of 1000 units, on enquiry it was found that he was not allowed to take decision related to give discount or credit to any of his customer. State the principle of Management violated in this case.
(A) Principle of Division of work
(B) Principle of authority and responsibility
(C) Principle of order
(D) None of these
Question 5. Suraj was engaged in the business of carpet making. Since company was making handmade carpet as well as machine made carpet. There were lot of overlapping of activities, so the Production manager advised there should be two separate division for both of them. Where in each division should have its own incharge plans and execution.
Identify the principle of management insisted by production Manager.
(A) Equity
(B) Unity of direction
(C) order
(D) Unity of command
Question 6. 10. Mr. Malhotra, Finance manager of ABC ltd. Applied for leave to attend a family function in Amritsar. The director of the company requested him to cancel his leave as there is an important meeting schedule on that date. Mr. Malhotra immediately agreed and cancelled his trip as he thought attending meeting is more import for company’s benefit.
Which principle of Fayol is applied by Mr. Malhotra?
(A) Principle of Discipline.
(B) Principle of order
(C) Principle of equity
(D) Principle of subordination of individual interest to general interest.
Question 7. The principles of management are said to be flexible as _____________.
(A) Their application is dependent upon the prevailing situation at a particular point of time.
(B) They can be modified by the manager when the situation so demands.
(C) They are general guidelines to action, but do not provide ready made solutions to management problems.
(D) They aim at influencing behavior of human beings.
Question 8. “Management principles are not as rigid as principles of pure science.” Which of the following best describes the given statement?
(A) Management principles deal with human behavior and, thus, are to be applied creatively given the demands of the situation.
(B) Principles of management contribute towards the development of management both as a science and as an art.
(C) Principles of management are formed after research in work situations, which are technical in nature.
(D) None of the above
Question 9. The principles are guidelines to action but do not provide ready made, straitjacket solutions to all managerial problems. This is so because .
(A) The applications of principles has to be changed as per requirements.
(B) Principles are like different tools serving different purposes, the manager has to decide which tool to use under what circumstances.
(C) Real business situations are very complex and dynamic and are a result of many factors.
(D) All the above
Question 10. “The principles of management are not rigid prescriptions, which have to be followed absolutely.” Which of the following best describes the given statement?
(A) Management principles aim at influencing behavior of human beings.
(B) Management principles are flexible and can be modified by the manager when the situation so demands.
(C) Management principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.
(D) None of the above.
Question 11. The application of principles has to be changed as per requirements. For example, employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors. They include contribution of the employee, paying capacity of the employer and also prevailing wage rate for the occupation under consideration.
Identify the nature of principles of management highlighted above.
(A) Contingent
(B) Mainly Behavioral
(C) Flexible
(D) General Guidelines
Question 12. A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting her/his case. Identify the principle of management highlighted above.
(A) Stability of Personnel
(B) Equity
(C) Discipline
(D) Authority and Responsibility
Question 13. According to Fayol, discipline requires .
(A) Good superiors at all levels
(B) Judicious application of penalties
(C) clear and fair agreements
(D) All of these
Question 14. is an extension of the principle of division of work and specialization to the shop floor; and it violates the principle of Unity of command.
(A) Standardization and Simplification of work
(B) Unity of Direction
(C) Functional foremanship
(D) Cooperation, not individualism
Question 15. Which of the following technique of scientific management violate‘s the principle of Equity?
(A) Method Study
(B) Differential Piece Wage System
(C) Standardization and Simplification of work ‘
(D) Functional foremanship
Question 16. A worker directly contacts the CEO of the company with a complaint regarding working conditions in the factory. Which of the following principles is being violated here?
(A) Unity of Direction
(B) Scalar
(C) Discipline
(D) Unity of Command
Question 17. Same battery can be used in different mobile phones of a particular brand. This is an example of which of the following techniques of scientific management?
(A) Functional Foremanship
(B) Simplification of work
(C) Method Study
(D) Standardization of work
Question 18. “She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship?
(A) Instruction Card Clerk
(B) Gang Boss
(C) Repair Boss
(D) Route Clerk
Question 19. Which one of the following statements best describes ‘Mental Revolution’ as described by F.W. Taylor?
(A) Workers should be paid more wages.
(B) Both management and workers require each other.
(C) The management and workers should not play the game of one upmanship.
(D) It implies change of attitude.
Question 20. In an organisation, each person should be scientifically selected. Then work assigned should suit his physical, mental and intellectual capabilities. To increase efficiency, they should be given the required training. Efficient employees would produce more and earn more. Which of the following principle of management is highlighted above?
(A) Remuneration of employees.
(B) Development of each and every person to his/her greatest efficiency and prosperity.
(C) Division of work.
(D) Science, not rule of thumb
Question 21. According to this principle of management, there should be obedience to organisational rules and contract of employment, clear and fair decisions and judicious application of penalties which are necessary for the working of the organisation. The principle of management referred to above is ____________.
(A) Discipline
(B) Unity of Command
(C) Subordination of Individual Interest to General Interest
(D) Authority and Responsibility
Question 22. Sanak 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. The principle of management followed by Wales Limited is __________.
(A) Discipline
(B) Equity
(C) Stability of Personnel
(D) Authority and Responsibility
Question 23. Match the principle of management in Column I with their respective explanation in Column II:
Column I | Column II |
a. Scalar chain | (i) When no division of the company has a separate plan of action |
b. Subordination of individual interest to general interest | (ii) When a manager awards contract for supply of raw material to a particular party, which happens to be owned by his relative ignoring other parties, who can supply the same at a cheaper rate. |
c. Unity of direction | (iii) When a subordinate habitually contacts higher authorities in the company by passinghis/her immediate superior. |
d. Equity | (iv) When the manager grants one month medical leave to a supervisor with pay and only oneweek medical leave to accountant. |
(B) (iii),(ii),(i),(iv)
(C) (ii), (i), (iii), (iv)
(D) (i), (ii), (iii), (iv)
Question 24. Match the technique of scientific management in Column I with their respective explanation in Column II:
Column I | Column II |
a. Time study | (i) Each specialist is to be assigned work according to her/his qualities. For example, thoseWith technical mastery, intelligence and grit may be given planning work. Those withenergy and good health may be assigned execution work. |
b. Method study | (ii) Devising new varieties instead of the existing ones and eliminating unnecessary diversityof products. |
c. Functional foremanship | (iii) Fixing the standard time taken to perform a well-defined job so as to determine the numberof workers to be employed; frame suitable incentive schemes and determine labour costs. |
d. Standardisation and simplification of work | (iv) Finding out one best way of doing the job to minimise the cost of production and maximizethe quality and satisfaction of the customer. |
(B) (iii), (iv), (i), (ii)
(C) (ii), (i), (iii), (iv)
(D) (iii), (ii),(i), (iv)
Question 25. Match the technique of scientific management in Column I with their respective explanation in Column II:
Column I | Column II |
a. Standardisation of work | (i) Separation of planning and execution functions |
b. Simplification of work | (ii) Setting benchmarks for every business activity which must be adhered to during production |
c. Method study | (iii) Eliminating superfluous varieties, sizes and dimensions. |
d. Functional foremanship | (iv) Minimising the cost of production and maximise the quality and satisfaction of the customer |
(B) (ii), (iv), (i), (iii)
(C) (ii), (iii), (iv), (i)
(D) (i), (ii), (iii), (iv)
Question 26. Match the technique of scientific management in Column I with their respective explanation in Column II:
Column I | Column II |
a. Method Study | (i) To reduce a given line or product to fixed types, sizes and characteristic |
b. Time Study | (ii) Devising new varieties of the existing ones |
c. Standardisation of work | (iii) To find out one best way of doing the job |
d. Simplification of work | (iv) To determine the number of workers to be employed; frame suitable incentive schemes and determine labour costs. |
(B) (ii), (iv), (i), (iii)
(C) (i), (ii), (iii), (iv)
(D) (iii), (iv), (i), (ii)