KSLU Solved Question Papers
Principles and Practice of Management
Previous Year Question Paper with Solution
B.B.A. LL.B. (Five Years) · Sem 2
2016 Dec Examination
munotes.in
Mumbai
B.B.A. LL.B. (Five Years) Sem 2 Principles and Practice of Management 2016 Dec Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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Contents
The questions below are the paper as Karnataka State Law University set it at the 2016 Dec examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2016 Dec examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 100 · 13 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1Briefly explain the 14 principles of Henry Fayol.[16]
Answer
For full marks, cover: who Henri Fayol was, his career and book (1916, translated 1949); his approach (management viewed from the top, universal and teachable); the nature of his principles (flexible guides, applied with a sense of proportion); each of the fourteen principles explained with its meaning, why it matters and an example; a table; the relevance of the principles today; their limitations; and a conclusion.
Henri Fayol
Henri Fayol (1841 to 1925) was a French mining engineer. He joined the Commentry-Fourchambault mining company in 1860 and served as its managing director from 1888 to 1918. When he took charge, the company was close to bankruptcy; under his management it became financially strong. Drawing on this experience, he wrote Administration industrielle et générale in 1916. It was translated into English as General and Industrial Management (1949).
Fayol looked at management from the top, from the viewpoint of the chief executive. He held that management is a distinct activity found in every organisation and that it can be taught. He described management through five elements (planning, organising, commanding, co-ordinating and controlling) and set out fourteen principles to guide managers.
The nature of Fayol's principles
Fayol stressed that his principles are flexible, not rigid laws. The same principle may be applied differently in different situations, and the manager must use judgement and a sense of proportion. He also said that the list was not complete and could be extended. The fourteen principles are explained below.
The fourteen principles
1. Division of work. Work should be divided so that each person performs a limited set of tasks repeatedly. Specialisation increases skill, speed and accuracy, and reduces waste of time in changing from one task to another. Fayol applied this to managerial work as well as to manual work.
Example: in a hospital, doctors, nurses, pharmacists and technicians each specialise in their own work.
2. Authority and responsibility. Authority is the right to give orders and the power to exact obedience. Responsibility is the obligation to carry out the duties assigned and to answer for the results. Fayol held that wherever authority is exercised, responsibility arises, and the two should be balanced. He also distinguished official authority, from the position, from personal authority, from the person's intelligence, experience and moral worth.
Example: a production manager responsible for meeting output targets must have the authority to assign work and maintain discipline.
3. Discipline. Discipline means obedience, application, energy and outward marks of respect, in line with the agreements between the firm and its employees. Fayol held that discipline requires good superiors at all levels, clear and fair agreements, and penalties applied with judgement.
Example: rules on attendance and conduct are made known to all and applied equally to junior and senior staff.
4. Unity of command. An employee should receive orders from one superior only. Fayol regarded this as fundamental. Two bosses giving orders to the same person undermine authority, upset discipline and cause confusion and conflict.
Example: a sales executive reports to the area manager alone, not to both the area manager and the marketing head.
5. Unity of direction. There should be one head and one plan for a group of activities having the same objective. This principle concerns the organisation of activities, while unity of command concerns persons. Unity of direction ensures that efforts are not divided.
Example: all activities connected with launching a new product are placed under one product manager with one plan.
6. Subordination of individual interest to general interest. The interests of the organisation should come before those of any individual or group of employees. Ignorance, ambition, selfishness and laziness tend to put personal interests first. Managers should set a good example, make fair agreements and supervise constantly.
Example: a manager does not give a contract to a relative's firm at a higher price, since the company's interest must come first.
7. Remuneration of personnel. Pay should be fair and should satisfy both the employee and the employer as far as possible. The method of payment should reward effort, be reasonable and not lead to excessive payment. Fayol discussed time rates, piece rates, bonuses and profit sharing.
Example: a company fixes wages by comparing them with similar jobs in the industry and adds a bonus linked to output.
8. Centralisation. Centralisation means the concentration of authority at the top. Fayol saw it as a natural feature of organisation. But he held that the right degree of centralisation depends on the circumstances. These include the size of the firm, the ability of the managers and the nature of the work. It is a question of finding the best proportion.
Example: a small firm keeps most decisions with the owner, while a large firm passes many decisions to branch managers.
9. Scalar chain. The scalar chain is the line of authority running from the highest to the lowest rank. Communication should normally follow this chain. However, Fayol recognised that following the chain strictly can cause delay. He allowed a "gang plank": a direct contact between two persons at the same level in different branches of the chain. It needs the consent of their superiors, who are kept informed.
Example: a foreman in production speaks directly to a foreman in maintenance about a breakdown. The message does not have to go up to the works manager and down again.
10. Order. Fayol stated it as "a place for everything and everything in its place" for material order, and "a place for everyone and everyone in his place" for social order. Material order avoids loss of materials and time. Social order means the right person in the right job.
Example: tools are kept in marked racks, and each employee is placed in a job suited to his or her ability.
11. Equity. Equity is a combination of kindness and justice in dealing with employees. Fair and friendly treatment wins loyalty and devotion. Managers should treat all employees with equal fairness.
Example: two employees with the same performance receive the same rating and increment, regardless of personal liking.
12. Stability of tenure of personnel. Employees need time to get used to their work and to perform it well. High labour turnover is both a cause and a result of bad management. Fayol held that prosperous firms usually have stable management staff.
Example: a company gives new staff a reasonable period to learn their jobs before judging them, and avoids frequent transfers.
13. Initiative. Initiative means the freedom to think out a plan and carry it out. It is a great source of strength and satisfaction for employees at all levels. Managers should encourage initiative within the limits of authority and discipline.
Example: a company rewards employees whose suggestions reduce costs or improve service.
14. Esprit de corps. "Union is strength." Managers should build team spirit and harmony among employees. Fayol warned against "divide and rule" and against excessive reliance on written communication, which can create distance where face-to-face contact would build understanding.
Example: a manager settles a dispute by meeting the people concerned together rather than by exchanging letters.
Summary table
| No. | Principle | Main idea |
|---|---|---|
| 1 | Division of work | Specialisation raises efficiency |
| 2 | Authority and responsibility | Balanced together |
| 3 | Discipline | Obedience to fair agreements |
| 4 | Unity of command | One superior for each employee |
| 5 | Unity of direction | One head, one plan per objective |
| 6 | Subordination of individual interest | Organisation's interest first |
| 7 | Remuneration | Fair pay to both sides |
| 8 | Centralisation | Right degree for the situation |
| 9 | Scalar chain | Line of authority, with gang plank |
| 10 | Order | Right place for things and people |
| No. | Principle | Main idea |
|---|---|---|
| 11 | Equity | Kindness and justice |
| 12 | Stability of tenure | Low turnover |
| 13 | Initiative | Freedom to plan and act |
| 14 | Esprit de corps | Team spirit |
Relevance today
- Organisation design still relies on unity of command, scalar chain, division of work and span of authority.
- Human resource practice reflects remuneration, equity, stability of tenure and initiative.
- Team building reflects esprit de corps.
- Modern debates on centralisation and decentralisation follow Fayol's view that the right degree depends on the situation.
Limitations
- Some principles are general and vague, such as the "right degree" of centralisation, and give little practical guidance.
- They were drawn from Fayol's own experience rather than from tested research.
- Some conflict with modern structures: matrix and project organisations give employees two bosses, contrary to unity of command.
- They give less attention to the human and social side of work, later stressed by the Hawthorne studies and the behavioural writers.
- They were developed for large, stable organisations and may need adapting for small firms and fast-changing markets.
Conclusion. Henri Fayol set out his fourteen principles in 1916. They cover the division and authority of work, discipline, unity of command and direction, the place of individual interest, and remuneration. They also cover centralisation, the scalar chain, order, equity, stability, initiative and team spirit. Fayol meant them as flexible guides to be applied with judgement, not as fixed rules. Some have been qualified by later research and new forms of organisation. Yet most remain part of everyday management, and they earned Fayol his place among the founders of modern management thought.
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