Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the following case study and answer the question.

Param and Rajat run a burger store in Gangtop. While visiting their store Swati observed the following points.

The worker did not need to move much while serving a customer as the trays were placed on his right hand upper shelf. Tissues were on right side of lower shelf and spoons on left side upper shelf. The straws and cups were placed in a rack next to the vending machine. The burgers were just behind him. During her 3 days stay she visited the store daily and saw the staff doing different jobs. A worker who was handling the cash was cleaning the floor on the next day and was cleaning the tables on the third day. Everyone was dressed up in similar uniform, black shoes, cap, socks, black trousers, orange T-shirts etc. They carried their name badge also. She also overheard the staff discussing about the new worker, who was not upto the mark and how they supported him by explaining the way thing had to done so that his performance could improve.

While looking around the store she saw a soft board on which a person's picture was put up as 'employee of the month'. She began to smile as the name on the soft board was similar to hers.

'In the burger store the worker did not need to move much.'

Which principle of management was fulfilled by the owner of burger store?

Options:

Order

Stability of personnel

Equity

Initiative

Correct Answer:

Order

Explanation:

The correct answer is option (1) : Order

The principle of management that was fulfilled by the owner of the burger store when the worker did not need to move much is Order.

The principle of order in management involves organizing resources and activities in the most efficient way. Placing trays, tissues, spoons, straws, cups, and burgers in a systematic manner, as described in the case study, reflects the application of the principle of order. This organization helps streamline the process of serving customers and contributes to a more efficient and effective operation in the burger store.

Order: According to Fayol, "People and materials must be in suitable places at appropriate time for maximum efficiency." The principle of order states that 'A place for everything (everyone) and everything (everyone) in its (her/his) place' Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/factory. This will lead to increased productivity and efficiency.

 

OTHER OPTIONS

  • Equity- Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,” according to Fayol. This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Fayol does not rule out use of force sometimes. Rather he says that lazy personnel should be dealt with sternly to send the message that everyone is equal in the eyes of the management. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc.
  • Stability of Personnel: “Employee turnover should be minimised to maintain organisational efficiency”, According to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure. They should have stability of tenure. They should be given reasonable time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. Recruitment, selection and training cost will be high. So stability in tenure of personnel is good for the business.
  • Initiative: Workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. It is one of the traits of an intelligent person. Initiative should be encouraged. But it does not mean going against the established practices of the company for the sake of being different. A good company should have an employee suggestion system whereby initiative/suggestions which result in substantial cost/time reduction should be rewarded.