CBSE Class 12 Business Studies • Unit 2

Principles of Management

Free NCERT-aligned resource for the 2026–27 academic session.

Part/unit weightage: 16 marks where the official CBSE structure groups this unit under the indicated section. Theory is 80 marks and project work is 20 marks. citeturn0search11

1. What You Need to Learn

Concept and significance of principles; Fayol’s principles; Taylor’s scientific management; techniques such as time study, motion study, method study, fatigue study and differential piece wage.

2. Core Concepts

Fayol’s principles include division of work, authority and responsibility, discipline, unity of command, unity of direction, equity and others. Taylor emphasised scientific study of work, functional foremanship, standardisation, simplification and differential piece-rate payment.

3. Common Mistakes

Learn each principle with a business example. Do not confuse unity of command with unity of direction. Match Taylor’s techniques with their purpose.

4. Case-Based & Exam Practice

  1. Identify the Fayol principle illustrated by a case.
  2. Distinguish functional foremanship from unity of command.
  3. Explain how scientific management improves productivity..

5. Quick Revision Checklist

  • Can you define the key terms in NCERT language?
  • Can you identify the concept from a business case?
  • Can you explain the reason, feature, advantage or limitation?
  • Can you apply the concept to a new situation?
CBSE/NCERT note: Use the latest prescribed NCERT textbook and official CBSE curriculum as the final authority for examination preparation.

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