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CBSE Guess > eBooks > Class XII > Business Studies by Dorothy Mathias

Chapter – 2 Principles Of Management (3+4 =7 marks)

Which principle of management is violated if subordinate is asked to receive orders from two seniors? Explain with a suitable example. Name any two ADVERSE EFFECTS that may take place due to this violation - 4 marks CBSE, 2005 (2)

Fayol’s principle of UNITY OF COMMAND is violated. This principle implies that an employee should receive orders from only one superior. If he gets orders from more than one superior at a time then he will be confused as to which superior’s orders should be carried out first.

Adverse Effects: If this principle is violated it may lead to confusion, indiscipline, delay in performance, difficulty in satisfying seniors and difficulty in fixing responsibility. Therefore to avoid this confusion, dual subordination should be ruled out.

Example: If a salesman gets instructions from marketing as well as production department at the same time. He may get instructions from production manager to go slow in selling the product as there is a power cut in the factory and goods are not being produced fast enough.
On the other hand the marketing manager may insist he sell as per schedule to reach the target. In such a situation, it may be difficult for the salesman to carry out the orders of two
people, as their instructions are contradictory. Unity of command therefore helps in avoiding such contradictory issues.

Which principle of management envisages that each group of activities having the same objectives must have one head and one plan? Explain the principle with a suitable example. What are the positive effects of this principle – 3 marks

UNITY OF DIRECTION

• This principle calls of “one manager one plan” for a group of activities having the same objective so that the efforts of all employees are directed towards common goals.
• The positive effect of this principle is that it ensures unity of action and facilitates coordination.
• Example: Suppose an automobile company has three divisions – cars, scooters and three wheelers. Now each division must have its own targets since each product has its own market and problems. Each division must plan its target as per its environmental conditions to achieve better results.
  (I mark for naming the principle + 1 mark for each point of explanation + 1 mark for example)

What do you mean by the principle “ SUBORDINATION OF INDIVIDUAL INTEREST TO GROUP/GENERAL INTEREST” CBSE-2005 Set 1. 3 marks

According to this principle of Fayol, management should reconcile the interest of an individual with those of the group. However if they differ, then the group interest should supersede that of the individual interest.

Example: If a manager gets an order for supply of a product at his own initiative and due to which the company benefits immensely.

Positive Effect: The principle suggests that the profit should be shared by all since one person cannot alone meet an order.

State the principle of ESPIRIT DE CORPS? What is the positive effect of this principle? – 3 marks CBSE-2000, CBSE-2005 Set 1

• Espirit de corps means “spirit of cooperation”.
• It means harmony, mutual understanding and team spirit among workers.
• If there is team spirit, everyone comes forward to help others.
• It helps to develop an atmosphere of mutual trust and understanding and a sense of belong among workers, which inspires them to work harder and improve quality of work.
• Employees up to the standard should be rewarded and those who are not up to the standard should be given an opportunity to improve their performance.
• Positive Effect: When esprit de corps is present the need to penalise the defaulting person is minimised