Download App

Principles of Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesPrinciples of Management6 Marks
Question
Explain any two reasons why proper understanding of management principles is necessary.
✓

Answer

The principles of management derive their significance from their utility. Managers may apply these principles to fulfil their tasks and responsibilities.
Following are the reasons for importance of understanding principle of management:
  1. Providing managers with useful insights into reality: The principles of management provide the managers with useful insights into real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly.
  2. Optimum utilisation of resources and effective administration: Resources both human and material available with the company are limited. They have to be put to optimum use. By optimum use we mean that the resources should be put to use in such a manner that they should give maximum benefit with minimum cost. Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. As such the wastages associated with a trial-and-error approach can be overcome. Effective administration necessitates impersonalisation of managerial conduct so that managerial power is used with due discretion.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "6 Marks Question" from Principles of Management→Principles of Management — all question types→Business Studies STD 12 Commerce question papers→CBSE Board STD 12 Commerce question papers→CBSE Board question paper generator→

Similar questions

‘Control is considered important for many reasons’. Explain any five such reasons.
→
Explain the concept of personal selling and any for qualities of a good salesman.
→
Explain any four psychological barriers of communication.
→
Explain ‘Policies’ and ‘Procedures’ as the types of Plans. Differentiate between the two on any four basis.
→
A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.
→
Explain, with examples, the various dimensions of business environment.
→
Explain the term 'Trading on Equity'. Why, when and how it can be used by a business organisation?
→
How would you characterise business environment? Explain, with examples, the difference between general and specific environment.
→
Explain the procedure for selection of employees.
→
"Management is regarded as an Art by some, as a Science or as an inexact Science by others. The truth seems to be somewhere in between". In the light of this statement, explain the true nature of management.
→