Case Studies on Business Studies Class 12 Chapter 2 Principles of Management

PRINCIPLES OF MANAGEMENT

1. 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 listen to their complaints. a. Which technique of scientific management is being followed here? b. Which principle of management is being ignored?

2. Marketing manager of “GK 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 essential at times. As a result, sales executives failed to achieve their targets. Identify the principle violated in this case.

3. A company manufactures bed sheet. It decided to manufacture blankets also. Instead of recruiting new employees, the company wanted the existing employees to work overtime. Sometimes, it was observed that a subordinate was getting instructions from two or more officers. Managers too had started giving simple work to their known employees and complex work to other employees. The company was ignoring rules completely. Identify 3 principles of management that have been ignored.

4. The production department of a company instructs a salesman to slow down in selling the products whereas the marketing manager is insisting on fast selling to achieve the target. Which principle of management is being ignored by the company? Give any one consequence of the violation of that principle. Which concept of management is being ignored by the company?

5. In a college, Mr. Burman is the head of all three departments Arts, Commerce and Science. The Principal of the college has instructed that whatever message she wants to convey to the teachers should be routed through the medium of head of the department. And also, teachers should communicate with the Principal through the medium of head of the department. Mr. Burman is not able to control all three departments properly because of different nature of the departments. Identify two principles of management mentioned in the above case by quoting relevant lines. 

6.The CEO of a company was not satisfied with the working of production department. He observed that shoes of several sizes were being made. Some of the sizes were not needed. As a result there was wastage of material, machines and man power. He also noticed that many persons were making certain movements that were least needed. It slowed down the pace of production. He also placed focus on having healthy and clean environment. He also believes that all employees (males and females) must be given equal facilities and opportunities. a. By which technique of scientific management, wastages can be prevented? b. By which technique of scientific management, the pace of work can be improved? c. Which principle of management is being followed here?

7. In a school, the Principal noticed that teachers teaching in third floor classes start the teaching after 5 to 10 minutes. The teachers explained that they get tired after climbing steps from ground to third floor and need 5-10 minutes rest before starting the lecture. The Principal planned to install a lift in a school so that teachers do not waste their energy on wasteful activity of climbing steps. State the technique of scientific management used by Principal.

8. The directors of XYZ limited, an organisation manufacturing computers, want to double the sales and have given the responsibility to the sales manager. The sales manager has no authority either to increase sales expense or appoint new salesmen. Hence, he could not achieve this target. Identify the principle violated in this situation.

9. A company manufacturing motorcycles and cars should have separate divisions for both, headed by separate divisional managers, separate plans and resources. Identify the principle with the help of this example.

10. Miss Pragya, a student of class- XII has been preparing a project on a nursing home “Sharma 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 every time she visits the nursing home, few old faces were missing and instead she found some new faces. On scrutiny, she got to know that the behaviour of the owner was very strict.  People come here, serve for a few days and go away due to owner’s behaviour. Identify which principle of management has been ignored. Write any one consequence of ignoring the principle.

11. Mr. Chand Lal is Managing Director of a successful company “Marketcalling Ltd.”. He continuously motivates his Research & Development Department that new and latest methods of doing work be explored. 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 is to be driven in a right way then both the wheels should be properly aligned. Mr. Lal is a successful leader and he consults his subordinates before taking any decision. He focuses on the training of employees for their skill development. Identify by quoting the lines principles of scientific management as mentioned in the above paragraph. 

12. Shiva Ltd. was not performing well.  It was discovered that workers of the Production Department were not satisfied with the behavior of Mr. Ajay, the production manager, as workers were forced to work for long hours without any rest. The management decided to replace Mr. Ajay with Mr. Vijay.  Mr. Vijay did a detailed analysis of work which involved heavy manual labour. 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. Vijay. b)  He further desires to find out the best ways of doing a job. Suggest to him the technique of scientific management.  c) State the `Values’ emphasized by Mr. Vijay.

13. Tanya and Sharma, having same educational qualifications are working as managers in Alfa Ltd.  Tanya belongs to a rural area where employment opportunities are very less whereas Sharma belongs to a 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.45000 per month. Name and briefly explain the principle of management being followed in the above case.

14. The production department of a co. has fixed several standards (related to quantity, method of work, quantity, cost and time) for his department. For example, he has fixed the standard that a worker shall follow particular method of working to produce ten units daily. One of the employees wants to follow a separate method of working to produce fourteen units daily which is more than the standard quantity. The supervisor refuses him to do so by saying that the work should be done according to the plan. Which concept of scientific management is implemented by the production department? 

15. Mr.Harsh Yadav  is a production manager in Coal India Limited. He declared a holiday to the employees of his department by using his discretion powers because that day he has to attend a marriage function of his relatives. Name the principle of management violated by him in this context.

16. In a plant, no place is earmarked to keep the tool box. Workers are always searching for it. Name the principle of management violated in this context?

17. While making a software programme, the programmer received an order from his immediate boss, the project Head to go slow; at the same time he received another order from the CEO of the company to speed up the work. Name the principle of management violated and also explain any two negative consequences each that company will face due to violation of those principle.       

18. A salesman submitted his sales particulars to the marketing manager directly without informing to his immediate boss who is a sales officer. Name the principle of management violated in this context?

19. Sanket started a coffee shop ‘Fioma Coffee’ in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanket appointed Riya, an MBA from from a reputed management institute as a manager to find out the causes of the business not doing well. Riya, took a feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard time for processing the order. She also realized that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, within a short period Riya was able to attract the customers. Identify and explain any two techniques of scientific management used by Riya to solve the problem. (CBSE 2017)

20. Karan Nath took over ‘D’north Motor Company’ from his ailing father three months ago. In the past the company was not performing well. Karan was determined to improve the company’s performance. He observed that the methods of production as well as selection of employees in the company were not scientific. He believed that there was only one best method to maximize efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that ‘best method’. He asked the Production Manager to develop the best method and carry out the necessary training. The Production Manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to the customers. This was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage. Identify and explain the principles and techniques of scientific management followed by the Production Manager in the above case. (CBSE 2018)

21.  Damini D’Souza  took over the reins of ‘Kinsa Retail’ as its Managing Director in India. ‘Kinsa Retail’ with its headquarter at Japan has been in the retail business for the last 40 years. It has regional offices in many countries that take care of the shops in that region. As it is a large organisation, the regional officers have been given the powers to decide and spend funds sanctioned to them by the headquarter for the welfare of the customers of their region. 'Kinsa Retail’ wants the highest possible standards of ethical conduct being followed, for which a code of conduct is in place for putting values into practice. All employees as well as Board members are required to act in accordance with the highest standards of personal and professional integrity when acting on behalf of the company. Non compliance involves a heavy penalty including termination of employment. Explain any two principles of general management being followed by ‘Kinsa Retail’ (CBSE 2019).