'If a company is manufacturing motorcycles as well as cars then it should have two separate divisions for both of them'.

Which principle of management of Henry Fayol is highlighted in the above example?

Unity of direction

The correct answer is option 4- Unity of direction.

Unity of direction is highlighted in the given example.

Unity of Direction: All the units of an organisation should be moving towards the same objectives through coordinated and focussed efforts. Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination. For example, if a company is manufacturing motorcycles as well as cars then it should have two separate divisions for both of them. Each division should have its own incharge, plans and execution resources. On no account should the working of two divisions overlap.