Exam Tomorrow · Class 12 Business Studies · Chapter 2

Principles of Management Quick Revision

Master Fayol, Taylor and the differences students most often mix up in case studies.

60-second revision

  • Management principles are broad guidelines for managerial decision-making and behaviour.
  • Fayol proposed general principles such as unity of command, unity of direction, scalar chain, equity and esprit de corps.
  • Taylor's scientific management focuses on improving efficiency through science, cooperation and standardisation.
  • Taylor's techniques include functional foremanship, standardisation and simplification, method study, motion study, time study and differential piece wage.

Keywords to remember

Fayol · Taylor · unity of command · unity of direction · scientific management

Common mistakes

  • Unity of command = one employee should receive orders from one boss; unity of direction = one head and one plan for activities with the same objective.
  • Do not call principles rigid rules; they are flexible guidelines applied according to circumstances.

Important questions

  1. Differentiate unity of command and unity of direction.
  2. Explain any four techniques of scientific management.
  3. How are Fayol and Taylor complementary rather than contradictory?

Quick MCQ check

Question 1: One head and one plan for activities having the same objective refers to:

  • Unity of command
  • Unity of direction
  • Scalar chain
  • Order

Explanation: Unity of direction groups similar activities under one head and one plan.

Question 2: Differential piece wage system is associated with:

  • Henri Fayol
  • F.W. Taylor
  • Peter Drucker
  • Abraham Maslow

Explanation: Taylor used differential piece rates to reward higher efficiency.

Question 3: Esprit de corps promotes:

  • Centralisation only
  • Team spirit
  • Strict punishment
  • Individual rivalry

Explanation: Fayol's esprit de corps stresses harmony and team spirit.

Practice Business Studies case studies · Important questions · Timed exam mode