Business Studies Part I
Business Studies Part II

Solution of Question Paper

1 Mark Questions

Q1 Which of the following statements best describes ‘Mental Revolution’?

(a) It implies change of attitude
(b) The management and workers should not play the game of one upmanship
(c) Both management and workers require each other
(d) Workers should be pain more wages

Answer. (a) Mental revolution implies change In the attitude of workers and management towards one another.

Q2 Which of the following statements is false about Taylor and Fayol?

(a) Fayol was a mining engineer whereas Taylor was a mechanical engineer
(b) Fayol’s principles are applicable in specialised situations whereas Taylor’s principles have universal application
(c) Fayol’s principles were formed through personal experience whereas Taylor’s principles were formed through experimentation
(d) Fayol’s principles are applicable at the top level of management whereas Taylor’s principles are applicable at the shop floor

Answer. (b) Fayol’s principle are universally applicable whereas Taylor’s principles applied in special situations.

Q3 Define scientific management..

Answer. Scientific management can be defined as knowing exactly what you want from men to do and seeing that they do it In the best and cheapest way.

Q4 Co-operation, Not Individualism There should be complete co-operation between the labour and the management instead of individualism. This principle is an extension of the principle of ‘Harmony not discord.

Q5  If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated? What are the consequences of it?

Answer. The principle of order is violated I if an organisation does not provide the right place for physical and human resources.

If this principle is violated then

  1. Lots of time will be wasted in locating the different resources.
  2. This will lead to delayed decisions.

Q6  Which priniciple says óne head and one plan’?

Answer unity of direction.

Q7 Which technique violates the principle of ”unity of command’. 

Answer Functional foremanship.

Q8 Which principle says çompany should honour the commitment made to its employees.’? 

Answer Discipline

5 Marks Case Studies Solutions

Q9 Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop ‘AromaCoffeeCan’ in a famous mall in New Delhi. The speciality of the coffee ship was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a Manager to find out the causes for the same.

Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions in between which could be eliminated. She fixed a standard time for processing the order.
She also realised that there were some flavours whose demand was not enough. So, she also decided to stop the sale of such flavours. As a result with in a short period Sandhya was able to attract the customers.
Identify and explain any two techniques of scientific management used by Sandhya to solve the problem.

Answer The two techniques of scientific management used by Sandhya to solve the problem are: (any two)

  1. Time study:It seeks to determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed , frame suitable incentive schemes and determine labour costs. By using time measuring devices for each element of task the standard time is fixed for the whole of the task by taking several readings.
  2. Simplification (Standardisation and Simplification):Simplification aims at eliminating superfluous diversity of products in terms of varieties, sizes and dimensions. It not only helps to reduce inventories but also save cost of labour, machines and tools. Thus it helps to increase turnover by ensuring optimum utilisation of resources.
  3. Motion study:Motion study refers to the study of movements of limbs of a worker while doing a particular task. It seek to divide all such movements into three categories namely;
  • Motions which are required
  • Motions which are unnecessary
  • Motions which are incidental.
    Thus, motion study helps to eliminate unnecessary movements of a work and enables him to complete the given task efficiently.

Q10 Nutan Tiffin Box service was started in Mumbai by the Mumbai Dabbawalas. The Dabbawalas who are the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at the right time and place. The service is uninterrupted even on the days of bad weather, political unrest and social disturbances. Recently, they have started online booking system through their website ‘’. Owing to their tremendous popularity amongst the happy and satisfied customers and members, the Dabbawalas were invited as guest lecturer by top business schools. The Dabbawalas operate in a group of 25-30 people alongwith a group leader. Each group teams up with other groups in order to deliver the tiffins on time. They are not transferred on frequent basis as they have to remember the addresses of their customers. They follow certain rules while doing trade—no alcohol during working hours; no leaves without permission; wearing white caps and carrying ID cards during business hours.

Recently, on the suggestion of a few self-motivated fellow men, the dabbawalas thought out and executed a plan of providing food left in tiffins by customers to slum children. They have instructed their customers to place red sticker if food is left in the tiffin, to be fed to poor children later.

  1. State any one principle of management given by Fayol and one characteristic of management mentioned in the above case.
  2. Give any two values which the Dabbawalas want to communicated to society


  1. The relevant principle of management given by Fayol is:
    Stability of Personnel: The employee turnover should be minimized to maintain organizational efficiency. Personnel should be selected and appointed after due and rigorous procedure. After placement, they should be kept at their post for a minimum fixed tenure so that they get time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation.
    (The other correct answers are principle of Discipline / Initiative / Espirit de corps) The characteristic of management mentioned in the above case is:
    Management is goal oriented as it seeks to integrate the efforts of different individuals towards the accomplishment of both organizational and individual goals.
    (The other correct answers are management is intangible/ group activity/dynamic)
  2. The two values that Dabbawalas want to communicate to society are:
  • Concern for poor/ Humanity
  • Responsibility