"A sales person is asked to clinch a deal with a buyer and is allowed to be given a 10% discount by the marketing manager. But the finance department tells her/ him not to offer more than a 5% discount". Identify the principle of management violated in the aforesaid statement.

Unity of Command

The correct answer is option 1- Unity of Command.

Unity of Command is the principle of management violated in the given statement as he gets order from two superior.

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.

OTHER OPTIONS

• 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.

• 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.

• 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.