Read the following passage and answer the question.

Rajni, the new CEO of Bharat Ltd., a computer hardware manufacturing company addressed the employees on her first day. She emphasized the importance of employee suggestions and teamwork, and her vision for a fair and efficient workplace. She also stated that she would be stern with lazy employees, as she believes that everyone is equal in the eyes of management. In summary, Rajni's vision for Bharat Ltd. is a company where:
* Employees are encouraged to contribute their suggestions.
* She would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members.
* All agreements are clear, fair, and penalties are applied judiciously.
* Lazy employees are dealt with sternly, as everyone is equal in the eyes of management.
* The interests of the organization take priority over the interests of any one individual employee.

Rajni's vision is one of a high-performing organization where employees are valued and respected, but also held accountable for their performance.

'Employees are encouraged to contribute their suggestions'.

Which of the following principle is highlighted in the above statement?

Initiative

The correct answer is option 1- Initiative.

Employees are encouraged to contribute their suggestions and work together as a team' - This statement highlight the principle Initiative.

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.

OTHER OPTIONS

• 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.

• Esprit de corps- Management should promote a team spirit of unity and harmony among employees. Management should promote teamwork especially in large organisations because otherwise objectives would be difficult to realise. It will also result in a loss of coordination. A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties.

• Subordination of Individual Interest to General Interest- The interests of an organisation should take priority over the interests of any one individual employee according to Fayol. Every worker has some individual interest for working in a company. The company has got its own objectives. For example, the company would want to get maximum output from its employees at a competitive cost (salary). On the other hand, an employee may want to get maximum salary while working the least. In another situation an individual employee may demand some concession, which is not admissible to any other employee like working for less time. In all the situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person. For example, interests of various stakeholders, i.e., owners, shareholders, creditors, debtors, financers, tax authorities, customers and the society at large cannot be sacrificed for one individual or a small group of individuals who want to exert pressure on the company. A manager can ensure this by her/his exemplary behaviour.