Based on following case study, answer question.

 "Oxlo enterprises" is a renowned name in textile manufacturing Industry. Over the past 2 years the company has scaled to new heights. The management has been grateful to the loyal team of managers and staff. Mr. Sharma, who is the operations head has been very clear about giving work to team mates based on their specialisation and skills. He has also given positional rights to people and often talks to subordinates to perform work and submit it on time. Talking about production department, where Ms. Neeta is departmental head. In her team, work is well distributed till the lower most levels. She makes sure that no gender bias is there and all people are treated equally.

"Oxlo enterprises" follows a system of official communication where each subordinate contacts his/her immediate superior only. One of the best working patterns that exists in the organisation is that everyone and everything can be found at the right place. The whole company works on the ideology of "United we stand" and the culture can be translated by their usage of "We" as a common phrase. As the size of company has tremendously expanded, now the management has hired two new Departmental heads to focus on productivity. One of them has been made "Planning Incharge" and the other one as "Production Incharge". Mr. Padam, who is the Production Incharge, has suggested, an innovative way to improve production of units by workers. He said those workers who produce more units than standard would be paid more money per unit produced.

Mr. Padam also suggested to use standards for performance of both men and machines, so that raw material, time, product, machinery methods on working conditions can perform as per benchmarks.

"He has also given positional rights to people and often talks to subordinates to perform work and submit work in time."

Identify the principle stated in the above lives.

Authority and Responsibility

The correct answer is option (1) : Authority and Responsibility

The principle stated in the given statement is "Authority and Responsibility." This principle refers to the right to give orders and the power to exact obedience. By giving positional rights to people and emphasizing the submission of work on time, the manager is exercising authority and assigning responsibility to the subordinates. This ensures that there is clarity in roles and responsibilities within the organizational hierarchy.

Authority and Responsibility: According to Fayol, "Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority. The two types of authority are official authority, which is the authority to command, and personal authority which is the authority of the individual manager." Authority is both formal and informal. Managers require authority commensurate with their responsibility. There should be a balance between authority and responsibility. An organisation should build safeguards against the abuse of managerial power. At the same time, a manager should have necessary authority to carry out his responsibility.