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Business Studies · 2025 · 4 marks
CBSE 2025 · Region 5 · Set 1 · Q25
'AK Ltd.' is a large company with 4000 workers engaged in production of wide varieties of spices used in the Indian kitchen. The company has been…
'AK Ltd.' is a large company with $\displaystyle 4000$ workers engaged in
production of wide varieties of spices used in the Indian kitchen.
The company has been struggling with a persistent issue of
workers making unreasonable demands and going on strike
frequently. To address the issue, the Chief Executive Officer
appointed a management expert who will analyse the situation
and suggest solutions to overcome the problem. The
management expert analysed the situation and suggested that
the company could resolve the issue by following Taylor's
principle of Scientific Management which suggested complete
mental revolution on the part of both management and workers.
It means that management and workers should transform their
thinking, where even trade unions will not think of going on
strike. It emphasises that prosperity of the employer cannot
exist for a long time unless it is accompanied by the prosperity
for the employees and vice versa.
(i)
Identify and explain the principle of Scientific Management
discussed in the above case by the management expert.
(ii)
Also, explain another principle suggested by Taylor, which is
an extension of the principle identified in (i) above.
Marking-scheme solution
• (i) Harmony, Not Discord:
This principle emphasises that there should be
complete harmony between the management and the
workers. Both should realise that each one is important.
There should be complete mental revolution on the part
of both management and workers and the workers
• should transform their thinking.
Management should share the gains of the company, if
any, with the workers. At the same time workers should
work hard and be willing to embrace change for the
good of the company.
• (ii) Cooperation, Not Individualism:
This principle emphasises that there should be complete
cooperation between the labour and the management
instead of individualism. Competition should be
replaced by cooperation and both the management and
• the workers should realise that they need each other.
Management should not close its ears to any
constructive suggestions made by the employees and
should reward the suggestions which results in
substantial reduction in cost. They should be part of
management. If any important decisions are taken,
workers should be taken into confidence.
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CBSE Class 12 Business Studies past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.