12th Standard Commerce — Principles of Management Online Test

About Principles of Management

Medium ~45 min study

Principles of Management is the first chapter of the Tamil Nadu State Board Class 12 Commerce book and opens Unit I, Management Process. It describes management as goal oriented, the art of getting things done with and through others, and a global and universal concept.

The chapter moves from the features of management and its classic definitions to the debate on art versus science, the differences between management and administration, and the five parts of management as a process. It then sets out Taylor's principles of scientific management, Fayol's fourteen principles of modern management and the idea of a wide or narrow span of management.

This page gathers the five book-back one mark questions with answers checked against the lesson, plus additional questions on definitions, the differences table, Taylor, Fayol and the span of management, each with a short explanation.

What you'll learn

• State the main features of management as a profession.
• Recall the definitions of management by Fayol, Drucker and Allen.
• Explain why management is both an art and an inexact science.
• Distinguish management from administration on at least three bases.
• List Taylor's principles of scientific management and Fayol's 14 principles.
• Explain the effect of a wide and a narrow span of management on the organisation structure.

Before you start

• Basic idea of a business organisation and its departments from Class 11 Commerce.
• The meaning of a company, its Board of Directors and Managing Director.
• Everyday experience of planning and organising work in school.

Principles of Management explained

What this chapter covers

Concept and definitions

Management is a body of knowledge with its own tools, a separate discipline taught since 1951, a field of specialists with a code of conduct and professional associations. Henry Fayol defined it as forecasting, planning, organising, commanding, co-ordinating and controlling; Peter F. Drucker named three jobs: managing a business, managing manager, and managing workers and work; Louis A. Allen defined the professional manager.

Art or science

Management is an inexact science because its principles cannot be exactly proved or disproved, and it is not an art in toto either. It is a combination of both.

Management and administration

Administration sits at the top, formulates policy and is legislative and determinative; management works at the middle and lower levels, implements policy and is executive and governing.

Management process

Management is co-ordination of the 4 Ms, a process, a purposive process, a social process and a cyclical process, with twin purposes of maximum productivity and maximum human welfare.

Taylor and Fayol

Taylor's five principles start with science, not rule of thumb, and include mental revolution. Fayol, the Father of Modern Management, gave 14 principles from division of work to esprit de corps.

Span of management

A wide span gives fewer levels and a flat structure; a narrow span gives more levels and a tall structure.

Common mistakes to avoid

• Calling Taylor the Father of Modern Management. Taylor developed scientific management; Henry Fayol is the Father of Modern Management.
• Placing administration at the middle and lower levels. Administration is at the top level; management works at the middle and lower levels.
• Thinking a wider span means more levels. A wider span means fewer hierarchical levels and a flatter structure.
• Mixing unity of command with unity of direction. Command is about one superior; direction is about one plan and one manager for related activities.
• Treating management as a pure art or pure science. The lesson concludes it is a combination of both.

Test yourself on these with the practice test, then check the worked reasoning in the solved MCQs.

Frequently asked questions

What is management?

Management is a distinct ongoing process of allocating the human and economic resources of an organisation through planning, organising, directing and controlling to achieve stated objectives. It is goal oriented and is the art of getting things done with and through others in an ever-changing business environment.

How did Henry Fayol define management?

Henry Fayol said, "To manage is to forecast, to plan, to organise, to command, to co-ordinate and to control." The definition tells us what a manager should do. Fayol is also called the Father of Modern Management and gave fourteen principles of management.

Is management an art or a science?

Management is an inexact science, because its principles cannot be exactly proved or disproved in an organisation as they bend with the environment. It is not an art in toto either. The lesson concludes it is a combination of both art and science.

How does management differ from administration?

Administration works at the top level, formulates policies and sets objectives; its function is legislative and determinative and its key person is the administrator. Management works at the middle and lower levels, puts plans and policies into action, and its function is executive and governing.

What are Taylor's principles of scientific management?

F.W. Taylor gave five principles: science, not rule of thumb; harmony, not discord; mental revolution; cooperation, not individualism; and development of each and every person to his or her greatest efficiency and prosperity.

What is the span of management?

It is the number of subordinates who can be managed efficiently by a superior. A wide span gives fewer hierarchical levels and a flat structure, while a narrow span gives more levels, a tall structure and higher salary costs for managers.