Business Studies Notes for Chapter 2 Principles of Management Class 12 - FREE PDF Download
FAQs on Principles of Management Class 12 Business Studies Chapter 2 CBSE Notes - 2025-26
1. What are the key concepts I should focus on when revising Chapter 2, Principles of Management?
For a quick and effective revision of this chapter, you should concentrate on three core areas as per the CBSE 2025-26 syllabus: Henri Fayol's 14 Principles of Management, F.W. Taylor's Scientific Management including its principles and techniques, and the overall nature and significance of management principles. Understanding the distinction and application of each is crucial.
2. What are Henri Fayol's 14 Principles of Management?
Henri Fayol's 14 Principles of Management provide general guidelines for managerial decision-making. For revision, you should recall all fourteen:
- Division of Work
- Authority and Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Subordination of Individual Interest to General Interest
- Remuneration of Employees
- Centralisation and Decentralisation
- Scalar Chain
- Order
- Equity
- Stability of Personnel
- Initiative
- Esprit de Corps
3. What are the main principles of F.W. Taylor's Scientific Management?
F.W. Taylor, known as the 'Father of Scientific Management', proposed four key principles to improve organisational efficiency:
- Science, Not Rule of Thumb: Using scientific methods to determine the best way to perform a task, rather than relying on intuition.
- Harmony, Not Discord: Fostering complete harmony and a positive relationship between management and workers.
- Cooperation, Not Individualism: Promoting cooperation and teamwork instead of individual competition.
- Development of Each and Every Person to His/Her Greatest Efficiency and Prosperity: Focusing on scientific selection, training, and development of workers.
4. How do Fayol's general principles and Taylor's scientific principles differ?
While both aim to improve efficiency, they differ significantly. Fayol's principles are general guidelines for top-level management and apply universally. In contrast, Taylor's principles are scientific observations for the shop-floor level, focusing on improving worker productivity. Fayol's theory is a general theory of administration, whereas Taylor's is a scientific approach to management.
5. What is the difference between 'Unity of Command' and 'Unity of Direction'?
This is a common point of confusion. Unity of Command means an employee should receive orders from only one superior to avoid conflicting instructions. Unity of Direction means that all units of an organisation should be moving towards the same objectives through coordinated efforts, essentially meaning 'one head and one plan' for a group of activities with the same objective.
6. How is the principle of 'Scalar Chain' applied, and when can it be bypassed?
The Scalar Chain refers to the formal line of authority and communication from the highest to the lowest rank. It should be strictly followed for systematic flow of information. However, in an emergency, it can be bypassed using a 'Gang Plank', which allows two employees at the same level to communicate directly, provided they keep their immediate superiors informed.
7. Why are management principles considered universal yet flexible?
Management principles are considered universal because they can be applied to all types of organisations—business, educational, government, etc. However, they are also flexible because they are not rigid like scientific principles. They act as general guidelines that managers must creatively adapt based on the specific demands of the situation, as they deal with complex human behaviour.
8. What is the purpose of Taylor's work-study techniques in a quick revision context?
For quick revision, remember the core purpose of each work-study technique:
- Method Study: To find the 'one best way' of doing a job.
- Motion Study: To eliminate unnecessary movements.
- Time Study: To determine the standard time required to perform a job.
- Fatigue Study: To determine the frequency and duration of rest intervals.
Together, they aim to maximise efficiency and reduce costs.
9. How does Taylor's 'Differential Piece Wage System' promote efficiency?
The Differential Piece Wage System is a motivational technique that distinguishes between efficient and inefficient workers. It works by paying a higher wage rate per piece to workers who produce more than the standard output and a lower rate to those who produce less. This financial incentive strongly motivates workers to improve their performance and achieve or exceed the standard, thus boosting overall productivity.

















