Amrita completed her Master’s Degree in Fashion Technology from Paris. After coming back to India, she observed a shift towards formal wear in the fashion industry. To grab this opportunity, she opened a boutique in a posh area of Delhi.
She used environmental friendly method of production. To make the store run efficiently, she divided the work into small tasks so that her employees are well trained and the wastage can be reduced. Similar activities were grouped together and departments were formed.
She assigned responsibility to her sales staff in the form of clear cut targets and gave them authority to close the deal by offering a discount of 5% but the decision to give any further discount rests with her. The departments were headed by the specialists who were appointed through placement agencies and management consultants. Levels were created in the organization and helped in establishing reporting relationship.
In the earlier period of her venture, she asked her employees to put in extra hours of work. In return, she promised to give them special incentive within one year. Her business was doing well and she honours her commitment by giving them bonus.
Amrita was a good leader. She develops plans and makes decisions in consultation with her subordinates. However, she was biased with her female employees when it comes to solving conflicts among her staff.
Amrita honours her commitment and gave a special incentive to her employees. By doing so, she had followed which principle of Fayol? Identify it.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Discipline
Option (1) Authority and responsibility — Incorrect. This principle is about matching power with duty. Here, a promise was kept.
Option (2) Discipline — Correct. The workers put in extra hours and Amrita promised an incentive in return. She honoured her commitment by giving the bonus. Discipline when applied means that both workers and management honour their commitments.
Option (3) Unity of command — Incorrect. Unity of command means one boss for each employee. It is not about keeping a promise.
Option (4) Order — Incorrect. Order means a place for everything and everything in its place. It is not about keeping a promise.
NCERT (2026-27 Edition): “(iii) 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.” |