CBSE Class 12 Principles of Management Case Study Questions with Answers

CBSE CLASS 12 · BUSINESS STUDIES CHAPTER 2

Principles of Management: case study questions with answers

Chapter 2 questions often describe a workplace situation and ask you to identify the principle or scientific-management technique. The fastest method is to spot the clue first, name the exact concept, and then connect the case to it.

Case 1: Unity of Command

Riya works in a retail company. Her sales manager asks her to focus on customer follow-ups, while another department head directly orders her to spend the same afternoon preparing inventory reports. She becomes confused about whose instruction should receive priority.

Question: Which Fayol principle is being violated?

Answer: Unity of Command. An employee should receive orders from only one superior. Receiving conflicting instructions from two bosses creates confusion and weakens accountability.

Case 2: Unity of Direction

A company runs two separate teams for the same new-product launch. Both teams have the same objective but follow different plans under different heads, causing duplicated work and inconsistent advertising.

Question: Which principle should management apply?

Answer: Unity of Direction. Activities having the same objective should be directed by one head and one plan.

Case 3: Scalar Chain and Gang Plank

During an urgent production breakdown, two managers working at the same organisational level need to exchange technical information immediately. Following the entire formal chain would cause a serious delay, so they communicate directly with permission and keep their superiors informed.

Question: Which concept is illustrated?

Answer: Gang Plank under Scalar Chain. Scalar chain is the formal line of authority, while a gang plank allows direct communication at the same level in urgent situations to save time.

Case 4: Initiative

A warehouse employee suggests a new shelf-coding system that could reduce picking time. The manager listens to the idea, allows the employee to test it and publicly appreciates the suggestion when it works.

Question: Which Fayol principle is reflected?

Answer: Initiative. Employees should be encouraged to think, suggest and execute useful plans within the limits of authority.

Case 5: Esprit de Corps

A manager avoids language that divides employees into rival groups. She celebrates team achievements and repeatedly reminds the staff that cooperation is more important than internal competition.

Question: Which Fayol principle is being followed?

Answer: Esprit de Corps. Management should promote team spirit, unity and harmony among employees.

Case 6: Science, Not Rule of Thumb

A factory stops relying on each worker's personal guess about the best way to assemble a product. Managers systematically study the work, compare alternatives and establish the most suitable method.

Question: Which Taylor principle is illustrated?

Answer: Science, Not Rule of Thumb. Taylor advocated developing scientific methods of work rather than relying only on traditional practices or personal judgement.

Case 7: Method Study

A production team compares four different ways of moving material from storage to the assembly line and selects the route that completes the task with the least unnecessary handling.

Question: Which technique of scientific management is used?

Answer: Method Study. It aims to identify the best method of performing a job.

Case 8: Differential Piece Wage System

A factory fixes a standard output of 50 units per day. Workers meeting or exceeding the standard receive a higher rate per unit, while workers producing below the standard receive a lower rate.

Question: Identify the technique.

Answer: Differential Piece Wage System. Efficient and inefficient workers are paid at different piece rates to encourage higher productivity.

Fast clue map: what the examiner is hinting at

Do not confuse these two

Unity of Command = one employee should receive orders from one boss. Unity of Direction = activities with the same objective should have one head and one plan.

4-step case-study answer method

1. Read exactly what the question asks: principle, technique, or significance.
2. Underline the clue in the situation.
3. Name the exact Fayol/Taylor concept.
4. Explain in one or two lines how the clue proves your answer.

These are original practice questions prepared for learning and are not presented as official CBSE questions.

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