12th Class Business Studies Principles Of Management Question Bank Passage Based Questions

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    Direction Q. 4 to 7
    Read the given passages and answer the questions that follow:
    Subhash Ltd. is engaged in the business of food processing and is selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New companies were also coming to cash in the new trend. In order to keep its market share in the short run the company directed its existing workforce to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. 
    The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage. The workers were becoming indisciplined. The spirit of team work which had characterized the company previously was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the product was beginning to decline and market share was on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure. The management of the company Subhash Lad now realised its folly. In order to rectify the situation it appointed a management consultant Khushi to recommend a restructure plan to bring the company back on the track Khushi undertook a study of the production process at the plant of the company Subhash Lad and recommended that the company should introduce scientific management with regard to production. It suggested that planning and execution should be separated and that workstudy. It should be undertaken to optimise the use of resources
    “The spirit of teamwork which had characterised the company previously was beginning to wane. Identify the principle of management violated here.

    A) Initiative           

    B) Esprit de corps

    C) Discipline          

    D) Equity

    Correct Answer: B

    Solution :

    [b]: The management should promote a team spirit of unity and harmony among employees. A manager should replace ‘I’ with ‘we’ in his all conversation with workers


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