Business Studies Case Study – Principles of Management

Business Studies Case Study Class 12

Business Studies Case Study

Principles of Management

Read the following text and answer the following questions on the basis of the same:

After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. 

In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees.

Question 1:

Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?

(a) Centralization and Decentralization

(b) Division of work

(c) Discipline

(d) Order

Question 2:

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount,

whereas the decision to give any further discount rests with Aditi as the final authority.” Identify the

principle of Management being followed here:

(a) Centralization and Decentralisation

(b) Authority and Responsibility

(c) Unity of Command

(d) Unity of Direction

Question 3:

“Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?

(a) Discipline

(b) Order

(c) Remuneration to Employees

(d) Unity of Direction

Question 4:

Aditi tends to be more biased towards her female employees when it comes to solve the conflicts among employees. Which principle is being violated here?

(a) Discipline

(b) Order

(c) Equity

(d) None of these

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