Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Match the following principles of Henry Fayol.

LIST I LIST II
A) Order I) Replace I with We
B) Stability of personnel II) Welcome employee suggestions
C) Initiative III) Right place for everything
D) Esprit de corps IV) Employee turnover should be minimised
Options:

A-II, B-I, C-III, D-IV

A-III, B-IV, C-II, D-I

A-III, B-II, C-I, D-IV

A-II, B-I, C-IV, D-III

Correct Answer:

A-III, B-IV, C-II, D-I

Explanation:

A) Order- The principle of order emphasizes "A place for everything (everyone) and everything (everyone) in its (her/his) place." This means promoting orderliness and having fixed, designated places for people and materials within an organization. The idea is that if everything is in its designated place, it minimizes hindrances in the activities of the business or factory. This organized approach leads to increased productivity and efficiency as there is a systematic arrangement of resources, preventing chaos and confusion.

B) 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.

C) Initiative- A good company is suggested to foster initiative by implementing an employee suggestion system. This system should include a mechanism to reward suggestions that result in substantial cost or time reduction. The idea is to encourage employees to actively contribute their ideas for improvements and be rewarded for the positive impact, these suggestions can have on the company's efficiency and effectiveness. It's about creating a positive environment that values and incentivizes initiative rather than discouraging it.

D) Esprit de corps- Management should promote a team spirit of unity and harmony among employees, according to Fayol. 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.