Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Violation of which of the following principle does not leads to high recruitment, selection and training cost.

Options:

Remuneration

Order

Equity

Science, Not rule of thumb

Correct Answer:

Science, Not rule of thumb

Explanation:

The correct answer is option (4) : Science, Not rule of thumb. 

Remuneration: The overall pay and compensation should be fair to both employees and the organisation. The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time it should be within the paying capacity of the company. In other words, remuneration should be just and equitable. If employees are not paid fair compensation then they leave the organisation which leads to the higher recruitment, selection and training cost.

Order : 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. A disorganized recruitment process with unclear timelines or communication can lead to a negative candidate experience, discouraging qualified applicants and potentially requiring more time and resources to find suitable replacements

Equity : Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,” according to Fayol. This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc. If employees are not treated equally then the employee left the organisation for better option which ultimately lead to higher recruitment costs.

Science not Rule of Thumb: Taylor believed that there was only one best method to maximise efficiency. This method can be developed through study and analysis. The method so developed should substitute ‘Rule of Thumb’ throughout the organisation. Scientific method involved investigation of traditional methods through work-study, unifying the best practices and developing a standard method, which would be followed throughout the organisation. There is no higher recruitment costs.