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Business Studies · 2026 · 6 marks
CBSE 2026 · Region 2 · Set 3 · Q31
(a) Explain ‘Co-operation, Not Individualism’ as a principle of Scientific Management and ‘Fatigue Study’ and ‘Differential Piece Wage System’ as…
(a)
Explain ‘Co-operation, Not Individualism’ as a principle of Scientific
Management and ‘Fatigue Study’ and ‘Differential Piece Wage
System’ as techniques of Scientific Management.
OR
(b)
Explain the following principles of General Management :
(i)
Initiative
(ii)
Scalar chain
(iii)
Authority and responsibility
Marking-scheme solution
Co-operation, 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. The workers should be part of management and if any important
decisions are taken, they should be taken into confidence.
Fatigue Study
§ Fatigue Study determines the amount and frequency of rest intervals in
completing a task.
§ A person is bound to feel tired physically and mentally if he/she does not rest
while working. The rest intervals will help one to regain stamina and work again
with the same capacity.
• Differential Piece Wage System
Differential Piece Wage System is a technique which differentiates between
efficient and less efficient workers. It rewards the efficient workers and motivates
• the less efficient ones to improve their efficiency.
In this plan, there are different rates of wage payment- higher for those who
performed standard output or more and lower for those who performed below the
standard output. The difference in the wage payment motivates the inefficient
workers to perform better.
OR
Q. (b) Explain the following principles of General Management:
(i)
Initiative
(ii)
Scalar chain
(iii)
Authority and responsibility
(i)
Initiative
§ Initiative means taking the first step with self motivation. Principle of initiative
states that the workers should be encouraged to develop and carry out their plans
for improvements.
§ A good company should have an employee suggestion system whereby initiative/
suggestions which result in substantial reduction in cost/ time should be rewarded
but it does not mean going against the established practices of the company.
(i)
Scalar Chain
§ The formal lines of authority from highest to lowest ranks are known as Scalar
chain. Organisations should have a chain of authority and communication that
runs from top to bottom and should be followed by managers and the
subordinates.
§ This chain should not be violated in the normal course of formal communication.
However, in case of any emergency, a shorter route named gang plank may be
used to avoid delay in communication.
(iii)
Authority and responsibility
§ The principle of Authority and Responsibility suggests that managers require
authority commensurate with their responsibility. Authority is the right to give
orders and obtain obedience and responsibility is the corollary of authority.
§ An organisation should build safeguards against abuse of managerial power. At
the same time, a manager should have necessary authority to carry out his
responsibility.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.