CBSE Class 12 Business Studies Chapter 2: Principles of Management NCERT Solutions

Reviewed by NCERT Help Editorial Team · Updated on 29 Jul 2026

NCERT Solutions PDF Class 12 PDF

This set of NCERT Solutions for Class 12 Business Studies, Chapter 2, focuses on the fundamental Principles of Management as outlined by Henri Fayol and F.W. Taylor. It covers essential concepts such as initiative, efficiency improvement through motion and time studies, standardization, mental revolution, unity of direction, flexibility of principles, and functional foremanship. The solutions provide clear explanations for each question, helping students grasp the practical application of these management principles in various organizational contexts. This resource is designed to aid students in understanding the core tenets of effective management, preparing them thoroughly for their examinations by clarifying complex ideas and offering structured answers.

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Board	CBSE
Class	Class 12
Subject	Business Studies
Session	2026
Language	English
Type	NCERT Solutions
Chapter	2. Principles of Management

Chapter summary

Chapter 2 of the CBSE Class 12 Business Studies syllabus delves into the Principles of Management. These NCERT Solutions offer detailed answers to questions related to Fayol's principles (like initiative and unity of direction) and Taylor's scientific management techniques (such as motion study, time study, standardization, and functional foremanship). The solutions explain the objectives and importance of these principles and techniques, emphasizing their role in enhancing organizational efficiency and worker productivity. This chapter is crucial for understanding the foundational theories of management.

Learning outcomes

Understand the importance of initiative in management.
Explain how motion study improves worker efficiency.
Define the objective of standardization in management.
Describe Taylor's concept of 'mental revolution'.
Identify and explain the principle of Unity of Direction.
Recognize the flexible nature of management principles.
Differentiate between planning and execution functions.
Explain the objectives of time and method studies.

Topics covered

Paper topics

Principles of Management
Henri Fayol's Principles
F.W. Taylor's Scientific Management
Initiative
Unity of Direction
Mental Revolution
Motion Study
Time Study
Method Study
Standardisation
Functional Foremanship
Flexibility of Principles

Important topics

Fayol's Principles of Management
Taylor's Scientific Management Techniques
Comparison of Fayol and Taylor
Unity of Direction
Mental Revolution
Functional Foremanship
Motion Study and Time Study Objectives

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Questions and Solutions

Question 1

Workers should be encouraged to develop and carry out their plans for development. Identify the principle of management formulated by Fayol.

Solution: The principle of management formulated by Fayol described here is the Principle of Initiative. This principle emphasizes that employees should be encouraged to take initiative in developing and executing plans. It suggests that providing employees with the opportunity to think and act on their own can lead to innovation and improved performance, as they are more likely to be committed to plans they have helped create.

Question 2

How do the techniques of 'motion study' help to improve the efficiency of workers?

Solution: The technique of 'motion study' helps to improve the efficiency of workers by systematically analyzing the movements a worker makes while performing a task. The primary objective is to identify and eliminate all unnecessary, unproductive, and wasteful movements. By streamlining the process and ensuring that only essential and efficient movements are performed, motion study reduces fatigue, saves time, and ultimately increases the overall productivity and efficiency of the worker.

Question 3

What is the objective of standardisation?

Solution: The main objective of standardisation, a technique of scientific management, is to establish standards for all factors of production. This includes standardizing the machinery, tools, methods of operation, and working conditions. By setting these standards, the organization aims to reduce variability, ensure uniformity in output, minimize waste of resources, and most importantly, increase the efficiency and productivity of the workers by providing them with clear benchmarks and optimal methods to follow.

Question 4

What is meant by 'mental revolution' according to Taylor?

Solution: According to F.W. Taylor, 'mental revolution' signifies a fundamental and complete transformation in the attitude of both management and workers towards each other. It means that both parties should shed their antagonistic approach and instead develop a sense of mutual trust, cooperation, and understanding. Management should aim to create a work environment that supports workers, and workers should recognize that their own prosperity is linked to the success and profitability of the company. This shift in mindset is crucial for achieving higher productivity and harmonious industrial relations.

Question 5

Which principle of management envisages that each group of activities having the same objectives must have one head and one plan? Explain the principle with a suitable example.

Solution: The principle of management that states each group of activities having the same objectives must have one head and one plan is the Principle of Unity of Direction. This principle ensures that all members of an organization work together towards common goals. It means that all units within an organization should be directed towards the same objective by having a single plan of action and a single in-charge for each group of activities.

Example: Consider a company that manufactures both cars and motorcycles. The marketing department responsible for selling cars should have one head (e.g., Head of Car Marketing) and one plan for all marketing activities related to cars. Similarly, the marketing department responsible for motorcycles should have a separate head (e.g., Head of Motorcycle Marketing) and a distinct plan for motorcycle marketing. This prevents confusion and ensures focused efforts.

Question 6

Why is it said that principles of management are flexible?

Solution: It is said that principles of management are flexible because they are not rigid rules but rather guidelines for action. Managers can modify and adapt these principles to suit the specific needs and circumstances of their organization and the prevailing situation. The application of a principle depends on the context, the nature of the problem, and the specific environment. This flexibility allows managers to use their judgment and discretion to achieve the best possible outcomes in different scenarios.

Question 7

Name the technique of scientific management which focuses on separation of planning and execution function.

Solution: The technique of scientific management that focuses on the separation of planning and execution functions is called Functional Foremanship. This technique involves appointing specialized supervisors for different aspects of work, with separate individuals responsible for planning the work and others for executing it. This allows for greater expertise and efficiency in both planning and operational tasks.

Question 8

What is the objective of method study?

Solution: The primary objective of method study is to determine the 'one best way' of performing a job. It involves a detailed analysis of the current methods used to carry out a task and then identifying improvements to make the process more efficient, cost-effective, and safer. This includes analyzing the sequence of operations, the movements involved, and the tools and equipment used, with the goal of finding the most economical and effective method.

Question 9

What is the objective of 'Time Study'?

Solution: The objective of 'Time Study' is to determine the standard time that should be required to perform a specific job or task. This is achieved by observing and measuring the time taken by a worker to complete the job under normal conditions. The results of time study are used to fix a fair day's work for the employees, set appropriate wage rates, and plan production schedules effectively. It helps in establishing a benchmark for performance and ensuring fair workload distribution.

Common mistakes

Confusing principles of Fayol with techniques of Taylor.
Not clearly articulating the 'one best way' concept.
Failing to explain the 'mental revolution' as a mutual change in attitude.
Misinterpreting the objective of standardization.
Overlooking the separation of planning and execution in functional foremanship.

Revision tips

Clearly distinguish between Fayol's principles and Taylor's techniques.
Use real-world examples to illustrate each principle and technique.
Focus on the 'why' behind each principle – its objective and benefit.
Practice explaining concepts like 'mental revolution' and 'unity of direction' in your own words.
Review the specific objectives of motion study, time study, and method study.

Practice MCQs

Q1. Which principle of management, formulated by Fayol, encourages employees to create their own plans and execute them?

Q2. According to F.W. Taylor, what is the primary goal of 'motion study'?

Q3. What is the main objective of 'standardisation' in scientific management?

Q4. Taylor's concept of 'mental revolution' emphasizes:

Q5. The principle 'Unity of Direction' states that:

Q6. Why are principles of management considered 'flexible'?

Q7. Which technique of scientific management separates the functions of planning and execution?

Q8. What is the objective of 'Time Study'?

Frequently asked questions

What are the main principles of management covered in CBSE Class 12 Business Studies Chapter 2?

Chapter 2 covers principles like Initiative, Unity of Direction, and the concept of 'mental revolution' by Henri Fayol, alongside scientific management techniques by F.W. Taylor such as motion study, time study, standardization, and functional foremanship.

Who formulated the principles of management discussed in this chapter?

The principles discussed are primarily formulated by Henri Fayol and F.W. Taylor, who are considered pioneers in the field of management theory.

How do these NCERT Solutions help students?

These solutions provide clear, rewritten answers to all questions, explaining the concepts in detail. They help students understand the practical application of management principles and techniques, aiding in exam preparation.

What is the significance of 'mental revolution' according to Taylor?

According to Taylor, 'mental revolution' refers to a complete change in the attitude of both management and workers. They should realize their interdependence and work together for mutual benefit, moving away from a conflict-oriented approach.

What is the difference between Time Study and Motion Study?

Time study aims to determine the standard time required to complete a job, while motion study focuses on eliminating unnecessary and wasteful movements during the execution of a job to improve efficiency.

Are the principles of management rigid?

No, the principles of management are flexible. They serve as guidelines that can be modified and adapted by managers to suit the specific requirements and circumstances of a given situation.

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