Key Multiple Choice Questions on Principles of Management
MCQs on Principles of Management help students master essential management concepts, such as planning, organizing, and controlling. This topic is crucial for school and college exams, competitive tests, and for understanding business operations in daily life. Practicing these questions boosts confidence and builds a solid foundation in business studies concepts.
| Principal Contributor | Key Principles/Theories | Application Example |
|---|---|---|
| Henri Fayol | Unity of Command, Scalar Chain, Division of Work, Authority & Responsibility | A manager reporting to one supervisor only (Unity of Command) |
| F.W. Taylor | Scientific Management, Science Not Rule of Thumb, Functional Foremanship | Time study to set fair work standards |
| General Principles | Discipline, Centralization, Order, Equity, Initiative | Clear rewards for discipline and performance |
Principles of Management MCQs
MCQs on principles of management test your understanding of core business studies ideas such as management functions, key theorists, and the application of management in practical scenarios. Practicing these multiple-choice questions sharpens critical thinking and exam readiness.
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Pure science principles are rigid, whereas management principles are relatively _______.
- A) Fixed
- B) Inflexible
- C) Flexible
- D) Absolute
Correct Answer: C — Management principles can be adapted based on business situations. (Management basics)
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Which of the following is not a management function?
- A) Planning
- B) Controlling
- C) Staffing
- D) Manufacturing
Correct Answer: D — Manufacturing is an operation, not a function of management. (Managerial functions)
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Who is called the Father of Scientific Management?
- A) Henri Fayol
- B) Peter Drucker
- C) F.W. Taylor
- D) Elton Mayo
Correct Answer: C — F.W. Taylor introduced scientific management. (Taylor scientific management quiz)
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Which principle says "Science, not Rule of Thumb"?
- A) Fayol’s Unity of Command
- B) Taylor’s Principle
- C) Principle of Initiative
- D) Order Principle
Correct Answer: B — Taylor emphasized systematic study and logic. (Scientific management)
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Division of Work leads to:
- A) Decreased output
- B) Duplication of effort
- C) Specialization
- D) Conflicts
Correct Answer: C — Division of work brings specialization and efficiency. (Division of work, business principles)
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Centralization means:
- A) Distribution of authority
- B) All power rests with top management
- C) Routine jobs at lower level
- D) None of these
Correct Answer: B — In centralization, authority remains at the top. See Centralisation and Decentralisation.
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Which function starts the management process?
- A) Organising
- B) Planning
- C) Staffing
- D) Controlling
Correct Answer: B — Planning is the initial management function. (Planning concepts)
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Unity of Command avoids confusion by:
- A) Allowing multiple supervisors
- B) Assigning one boss to each employee
- C) Ignoring authority
- D) Encouraging dual reporting
Correct Answer: B — Every employee gets orders from one manager. (Administrative principles)
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Time study is used to:
- A) Fix remuneration
- B) Decide inventory levels
- C) Measure work duration
- D) Structure hierarchy
Correct Answer: C — Time study helps set time standards for tasks. (Taylorism, scientific management)
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Who suggested the 14 Principles of Management?
- A) Taylor
- B) Mayo
- C) Fayol
- D) Maslow
Correct Answer: C — Henri Fayol developed the 14 principles. See Henri Fayol 14 Principles of Management.
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Functional foremanship is related to:
- A) Fayol’s principles
- B) Taylor’s techniques
- C) Weber’s Bureaucracy
- D) Drucker’s MBO
Correct Answer: B — Functional foremanship is a Taylor management technique. (Managerial functions)
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Esprit de Corps means:
- A) Discipline
- B) Team spirit
- C) Order
- D) Salary increase
Correct Answer: B — Esprit de Corps encourages teamwork among employees. (Administrative principles)
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Which principle promotes fairness and justice?
- A) Initiative
- B) Stability
- C) Equity
- D) Order
Correct Answer: C — The equity principle guides managers to be fair to all. (Business principles)
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Initiative in management encourages:
- A) Centralization
- B) Employee suggestions
- C) More reporting layers
- D) Less training
Correct Answer: B — Managers should encourage employees to contribute ideas. (Managerial functions)
Principles of Management MCQ PDF Download
For detailed practice, you can download the full set of MCQs with explanations in a printable PDF format. This is ideal for offline study and last-minute revisions.
Download Principles of Management MCQs PDF (with answers)
Key Principles of Management: Quick Revision
- Division of Work (Fayol) – Specialization increases efficiency
- Authority and Responsibility (Fayol) – Power must match accountability
- Discipline (Fayol) – Adherence to rules and respect for authority
- Science, Not Rule of Thumb (Taylor) – Methods based on studies, not guesswork
- Functional Foremanship (Taylor) – Multiple supervisors based on functions
- Centralization & Decentralization – Decision power at top or distributed
- Unity of Command – One boss for each worker
- Esprit de Corps – Teamwork makes a strong organization
How MCQs on Principles of Management Help Students
MCQs make revision faster and more effective for all commerce students. They are widely used in CBSE, state boards, and competitive exams such as CA Foundation, UPSC, or SSC. Regular practice helps clarify differences between closely related business principles, builds confidence for exams, and develops practical thinking for real-world management situations.
Internal Links for Further Learning
- Taylor Principles of Management – Detailed view of Taylor’s techniques and principles.
- Functions of an Accountant – See how accounting relates to management functions.
- Levels and Functions of Management – Structure and processes in management hierarchy.
- Planning – Principle and examples in management MCQs.
- Introduction and Characteristics of Management – Learn basics and why management matters.
- Functions of Financial Management – Application of management in finance.
- Centralisation and Decentralisation – Clarifies differences for MCQ preparation.
- Management as a Profession – Explains management’s evolving role in commerce.
- Principles of Business Communication – Supports MCQ questions on communication in business.
- Types of Organization Structure – Examples for structure-related MCQs.
Summary
MCQs on Principles of Management strengthen your understanding of key management ideas for school and competitive exams. They cover theorists like Fayol and Taylor, essential principles, and real business scenarios. At Vedantu, you can access structured notes and practice content to accelerate your learning in business studies.
FAQs on MCQs on Principles of Management: Practice with Answers
1. What are the key topics from the 'Principles of Management' chapter that are important for Class 12 MCQs?
For Class 12 Business Studies, MCQs on this chapter primarily focus on two main areas as per the CBSE syllabus for 2025-26:
- Henri Fayol's 14 Principles of Management: Questions test your understanding of concepts like Unity of Command, Equity, Division of Work, and Esprit de Corps.
- F.W. Taylor's Scientific Management: This includes his principles (e.g., Science, not Rule of Thumb) and techniques (e.g., Functional Foremanship, Time Study, and Motion Study).
2. Who is known as the “Father of Scientific Management”?
Frederick Winslow Taylor (F.W. Taylor) is known as the “Father of Scientific Management.” He introduced a scientific approach to management that aimed to improve economic efficiency, especially labour productivity, by analysing and optimising workflows.
3. Who developed the 14 Principles of General Management?
Henri Fayol, a French mining engineer and director, developed the 14 Principles of General Management. These principles act as fundamental guidelines for effective decision-making and management in any organisation.
4. What is the main difference between the management principles of Henri Fayol and F.W. Taylor?
The primary difference lies in their focus and perspective. Fayol's principles focus on top-level management and improving overall administration, making them universally applicable. In contrast, Taylor's principles concentrate on the shop-floor level, aiming to increase worker productivity and efficiency in specific, specialised situations.
5. Why are management principles considered flexible and not rigid like principles of pure science?
Management principles are considered flexible because they deal with human behaviour, which is dynamic and unpredictable. Unlike scientific principles that apply in fixed conditions, management principles must be adapted to suit the specific needs, culture, and context of each business situation. They act as guidelines rather than absolute, unchangeable rules.
6. What does the principle of 'Science, not Rule of Thumb' by F.W. Taylor mean?
This principle means that managers should not rely on intuition, guesswork, or traditional trial-and-error methods (the 'rule of thumb'). Instead, every task should be scientifically analysed to find the 'one best way' of doing it. This involves systematic study and logic to develop methods that improve efficiency and standardise work.
7. Can you explain Taylor's technique of 'Functional Foremanship' with an example?
Functional Foremanship is a technique that divides the work of a supervisor into several specialised roles. Instead of one foreman, a worker receives instructions from eight different specialists. For example, under the Planning Incharge, there would be a Route Clerk and an Instruction Card Clerk. Under the Production Incharge, a worker would interact with a Speed Boss (ensuring timely work) and a Gang Boss (keeping machines ready). This ensures expert supervision for every function.
8. How does the principle of 'Unity of Command' differ from 'Unity of Direction'?
These two principles are often confused but are distinct:
- Unity of Command states that an employee should receive orders from only one superior to avoid confusion and conflicts. It relates to the functioning of individuals.
- Unity of Direction states that all activities with the same objective must have one head and one plan. It relates to the functioning of the entire organisation and ensures coordinated effort.
9. What is the importance of the 'Esprit de Corps' principle in a business organisation?
'Esprit de Corps' means 'team spirit.' Its importance lies in fostering unity, harmony, and mutual support among employees. A manager who promotes team spirit builds a strong sense of belonging and loyalty, which leads to better coordination, higher morale, and greater organisational strength, discouraging division and conflict.
10. How do management principles help managers make effective decisions in real-world business scenarios?
Management principles provide a framework of established knowledge that helps managers in several ways. They allow managers to:
- Make logical and objective decisions rather than relying on personal bias.
- Solve recurring problems more efficiently without having to investigate them from scratch each time.
- Understand cause-and-effect relationships to anticipate the outcomes of their actions.
- Adapt their management style to different situations, thereby improving overall organisational effectiveness.
11. What is the significance of 'Division of Work' as per Henri Fayol?
According to Henri Fayol, the significance of the 'Division of Work' principle is that it leads to specialisation. By breaking down a large job into smaller, repetitive tasks and assigning them to different individuals, employees become more proficient and efficient in their specific roles. This results in increased productivity, improved work quality, and reduced wastage of resources.
