12th Commerce
Chapter 1 : Principles of Management
I. Very Short Answer Questions
1. What is Management?
Management is goal-oriented and is the art of getting work done through others.
2. List out the management tools.
Accounting, Business Law, Psychology, Statistics, Econometrics and Data Processing.
3. State the meaning of Authority.
Authority means the right of a superior to give orders to subordinates.
4. What do you mean by Span of Management?
Span of Management refers to the number of subordinates managed efficiently by a superior.
II. Short Answer Questions
1. Define the term Management.
"Management is a multipurpose organ that manages a business, managers and workers."
– Peter F. Drucker
– Peter F. Drucker
2. Differentiate Management from Administration.
| Basis | Management | Administration |
|---|---|---|
| Authority | Middle & Lower Level | Top Level |
| Role | Executive | Decisive |
| Concerned With | Policy Implementation | Policy Formulation |
3. What are the principles of Taylor?
- Science, Not Rule of Thumb.
- Harmony, Not Discord.
- Mental Revolution.
- Cooperation, Not Individualism.
- Development of every person.
4. What determines the Span of Management?
- Number of subordinates managed.
- Influences manager's work complexity.
- Determines organisation structure.
III. Long Answer Questions
1. Explain the concept of Management.
- Management is a specialised body of knowledge.
- Management uses tools like accounting and statistics.
- It is recognised as a separate discipline.
- Qualified experts are appointed as managers.
- Specialisation improves efficiency.
- Professional associations promote management knowledge.
- Management helps achieve organisational goals.
2. Explain the principles of modern management.
- Division of work increases efficiency.
- Authority and responsibility go together.
- Discipline ensures smooth functioning.
- Unity of command means one boss.
- Unity of direction means one plan.
- Coordination improves organisational performance.
- These principles help achieve business goals.
