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Business Studies · 2025 · 6 marks
CBSE 2025 · Region 1 · Set 1 · Q31
(a) Explain the following principles of General Management: (i) Scalar chain (ii) Equity (ii) Initiative
(a)
Explain the following principles of General
Management:
(i)
Scalar chain
(ii)
Equity
(ii)
Initiative
OR
(b)
Objectives of Management can be classified into
organisational, social and personal objectives. Explain these
objectives.
Marking-scheme solution
(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.
(ii)
Equity
§ The principle of Equity states that there should be no
discrimination against anyone on account of gender,
religion, language, caste, belief, nationality etc.
§ This principle emphasises kindliness and justice in the
behaviour of managers towards the workers to ensure
loyalty and devotion.
(iii)
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.
OR
Management seeks to achieve various objectives. These are:
(i)
Organisational objectives
The main objective of any organization should be to utilize
human and material resources to the maximum possible
advantage to fulfill the economic objectives of a business. These
are:
(a)
Survival- For the survival of the business, management must
strive to earn enough revenues to cover costs.
(b)
Profit- Mere survival is not enough, so the management has
to ensure that organisation earns a profit which is essential for
covering cost and risk of the business.
(c)
Growth- A business needs to add to its prospects in the long
run, hence management must exploit fully the growth potential of
the organization to remain in the industry.
(ii)
Social objectives
It refers to consistently creating economic value for various
constituents of society.
This includes using environmental friendly methods of
production, giving employment opportunities to the
underprivileged sections of society and providing basic amenities
like schools and healthcare etc.
(iii)
Personal objectives
People working in the organisations have diverse needs like
financial needs, social needs and higher level needs.
Management aims to reconcile personal goals with organizational
objectives for harmony in the organisation.
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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.