Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the following passage and mark the correct answer.

Master Industries developed a new product: 'Memory Sharpen Kit' for kids. Mr. Shankar the sales manager of the company, is asked to achieve target sales of 1000 kits in one month. He designed a sales plan for the sale of the kit without consulting his sales staff. He even refused to hear their suggestions and asked them to just follow his instructions. It led to frustration among the sales staff and as a result, the sales target was not achieved on time. But he focussed on one principle in which employees should not have multiple bosses, as it will lead to divided responsibility. He expects his colleagues to get work out of subordinates and yet has a differential treatment for each person. Mr. Shankar often speaks to people at all levels, passing on instructions regarding his department and also other departments.

'But he focussed on one principle in which employees should not have multiple bosses, as it will lead to divided responsibility.'

Which principle is highlighted in the above statement?

Options:

Unity of Command

Order

Discipline

Scalar chain

Correct Answer:

Unity of Command

Explanation:

The correct answer is option 1- Unity of Command.

The principle highlighted in the statement is Unity of Command. This principle asserts that each employee should have only one direct supervisor to avoid confusion and conflicting instructions.

Unity of Command: According to Fayol, there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. He felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”. The principle resembles military organisation. Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done.

 

OTHER OPTIONS

  • 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.
  • Discipline- Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. Suppose management and labour union have entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished. Here discipline when applied would mean that the workers and management both honour their commitments without any prejudice towards one another.
  • Scalar chain- According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” According to Fayol, this chain should not be violated in the normal course of formal communication. However, if there is an emergency then direct contact through ‘Gang Plank’. This is a shorter route and has been provided so that communication is not delayed.