# Principles of Management, Class 12 Business Studies | SwaVid Principles of Management, NCERT Class 12 Business Studies: notes with key ideas, definitions, common mistakes and 3 quick checks with worked answers. Canonical: https://www.swavid.com/cbse/class-12/business-studies/chapter/principles-of-management Source: https://www.swavid.com/cbse/class-12/business-studies/chapter/principles-of-management # Principles of Management ## Key definitions ## Key ideas ## Common mistakes ## Quick checks ## Keep going ## Questions parents ask ## Class 12 Business Studies on SwaVid ### Concept and nature of principles ### Significance of management principles ### Taylor's scientific management ### Techniques of scientific management ### Fayol's principles of management ### Taylor versus Fayol ### Next chapter ### Related chapter ### Related chapter ### All chapters SwaVid › CBSE › Class 12 › Business Studies › Principles of Management Notes written by SwaVid from the NCERT textbook. Class 12 Business Studies, Chapter 2. Key ideas, definitions and common mistakes. CBSE does not print marks for a single chapter. Short answer. This chapter explains the concept, nature, and significance of management principles, contrasting Henri Fayol's general administrative theory with F.W. Taylor's scientific management. It equips students to apply systematic guidelines and techniques to managerial decision-making in changing business situations. Source: NCERT Business Studies Part I (Reprint 2026-27) , Chapter 2, Principles of Management Management principles are broad, general guidelines for managerial decision-making and behaviour. They are formed by practice and experimentation, flexible, universally applicable, contingent on situations, and mainly behavioural in nature. These principles provide managers with useful insights into reality, encourage optimum resource utilisation, and enable scientific decision-making. They also help businesses meet changing environment requirements, fulfill social responsibilities, and guide management training. F.W. Taylor advocated replacing rule of thumb with science, developing harmony rather than discord, promoting cooperation rather than individualism, and developing each person to their greatest efficiency. It aims at maximising output and wages through systematic work study. Taylor introduced functional foremanship with eight specialist foremen, standardisation and simplification of work, and work study comprising method, motion, time, and fatigue study. He also introduced the differential piece wage system to reward efficient workers. Henri Fayol identified 14 general administrative principles including division of work, unity of command, unity of direction, scalar chain, and esprit de corps. These principles focus on improving overall administrative efficiency across the entire organisation. Taylor worked from the shop floor upward using scientific observation, while Fayol worked from top management downward based on personal administrative experience. Taylor's techniques focus on standardising worker tasks, whereas Fayol's principles present a universal theory of administration. Try each question first. Then tap it to see the answer. Worker X output = 11 units, which is above standard (10 units), so rate is Rs 50 per unit. Earnings of X = 11 × 50 = Rs 550. Worker Y output = 8 units, which is below standard (10 units), so rate is Rs 40 per unit. Earnings of Y = 8 × 40 = Rs 320. Worker X earns Rs 550 and Worker Y earns Rs 320 Identify the instruction source: two superiors giving orders to one subordinate. Match with Fayol's principles: unity of command requires orders from only one superior. Determine the consequence: confusion, dual subordination, and overlapping authority. Unity of command is violated, leading to confusion and conflict Total working time = 8 hours × 60 minutes = 480 minutes. Effective operating time = 480 minutes - 60 minutes = 420 minutes. Time taken per radio set = 20 minutes. Standard output = 420 ÷ 20 = 21 units. 21 units Business Environment . Nature and Significance of Management . Organising . The 11 chapters of Class 12 Business Studies . CBSE does not give marks to one chapter. It prints marks for units or parts, and the chapter list page shows them all. No. They are written by SwaVid from the NCERT textbook. The CBSE curriculum is the reference for what is assessed. Business Environment. SwaVid is an AI tutor for Indian students in Classes 6 to 12. It finds the earlier ideas a child missed, then teaches today’s chapter. Start free to see how it works. - Ch 2 NCERT book - 80 marks, theory paper - 3 quick checks - Confusing unity of command with unity of direction . Remember that unity of command affects an individual worker who must report to only one boss, whereas unity of direction affects the whole group or division pursuing one common objective under one plan. - Treating management principles as rigid rules like principles of pure science . Recognise that management principles deal with unpredictable human behaviour and changing environments, so they are flexible and must be adapted to each situation. - Classifying functional foremanship under Henri Fayol . Attribute functional foremanship strictly to F.W. Taylor as a scientific management technique that deliberately violates Fayol's unity of command at the factory level. - Mixing up method study and motion study . Identify method study as the search for the one best way of performing a whole job, while motion study is the observation and elimination of unnecessary movements during that job. ## Key Links - [CBSE](https://www.swavid.com/cbse) - [Class 12](https://www.swavid.com/cbse/class-12) - [Business Studies](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [Start free →](https://www.swavid.com/signup) - [All 11 chapters](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [NCERT Business Studies Part I (Reprint 2026-27)](https://ncert.nic.in/textbook.php) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/business-environment) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/nature-and-significance-of-management) - [Open notes](https://www.swavid.com/cbse/class-12/business-studies/chapter/organising) - [Class 12 Business Studies](https://www.swavid.com/cbse/class-12/business-studies/chapters) - [Start free →](https://www.swavid.com/signup)