Business Studies Test - 27

Policies and strategies are formulated under planning which is a function of management. Planning is deciding in advance what to do, how to do when to do, and who is to do it. Planning involves setting objective sand developing appropriate courses of action to achieve these objectives.

Principles of management are formed by the experiences of manager as It provides useful Insights into reality.

Henri Fayol (1841 – 1925) was a French coal-mine engineer, director of mines and modern management theoretician. His scientific management theory forms the base for business administration and business management. In the academic world, this is also known as Fayolism. Henri Fayol provided one of the most influential modern management concepts of his time. He is founder of the 14 Principles of management and the five functions of management.

• Directing initiates action (1) helps guide subordinates towards task completion and achieving targets, making C the correct match.
• Supervision (2) maintains direct contact with workers, ensuring they meet the required performance and develop positive work attitudes, so A is the match.
• Motivation (3) is key in improving performance and attitude by fulfilling psychological needs, thus B is appropriate.
• Communication (4) ensures smooth coordination between departments, making D the correct choice.

The technique that is being described in the given sentence is 'Method Study'. According to the 'Method Study' there is always a 'one best way' to complete any task. Every task can be performed via best method to gain efficiency. The basic purpose of this study is to reduce the costs to its minimal and increase the productivity to its maximum. Time study, Motion study and Fatigue study aims at standardising the time limits, eliminating the unwanted actions and deciding the break limits, respectively.

Functional structure assists in increasing managerial and operational efficiency.

Principles of management are not absolute. They are just the guidelines for the decision making in the course of management. That is, principles of management are not applied as it is in the real business situations rather they need to be modified by the manager as per the situation and the requirement.

Peter Drucker defined management as multiple purpose organ that manages a business, manages a manager and manages workers and work.

1 - A: Internal recruitment uses promotions or transfers to fill vacancies from within the organization.

2 - B: External recruitment involves hiring candidates from outside the organization through methods like advertisements.

3 - C: Orientation helps new employees familiarize themselves with the organization’s policies and culture.

4 - D: Promotions move employees to higher positions with more responsibilities and better pay.

Among the options given above, Functional Foremanship is not a principle of management rather it is a technique of scientific management as given by Taylor. It comprises of the methods or steps to be taken to achieve a desired goal. On the other hand, the other three are principles of management that acts as guidelines for decision making in the actual practice of the techniques.