A finance manager was asked to pitch an offer to an automobile firm t…

A finance manager was asked to pitch an offer to an automobile firm to buy some equity. The CEO and General Manager had different opinions on the percentage of the equity that should be acquired. The finance manager was in a dilemma and could not close the deal.

Which principle is violated here?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Unity of Command

Option (1) Unity of Command — Correct. The finance manager got two different instructions, one from the CEO and one from the General Manager. So he did not know what to do and lost the deal. Unity of command says that every employee should get orders from only one boss. If an employee gets orders from two superiors at the same time, this principle is violated. A very close example: a sales person gets two different discount limits from two departments.
Option (2) Unity of Direction — Incorrect. Unity of direction means one head and one plan for each group of activities with the same objective. The problem here is one person getting orders from two bosses.
Option (3) Subordination of individual interest to general interest — Incorrect. This principle says the interest of the organisation comes before a person’s own interest. No one here is putting his own interest first.
Option (4) Initiative — Incorrect. Initiative means workers should be encouraged to make their own plans and suggestions. The case is about confusing orders, not about initiative.

NCERT (2026-27 Edition): “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. …”

“…Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done. Suppose a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. But finance department tells her/ him not to offer more than 5% discount. Now there is no unity of command. …”

“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. …”

Which principle is violated here?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Unity of Command

Option (1) Unity of Command — Correct. The finance manager got two different instructions, one from the CEO and one from the General Manager. So he did not know what to do and lost the deal. Unity of command says that every employee should get orders from only one boss. If an employee gets orders from two superiors at the same time, this principle is violated. A very close example: a sales person gets two different discount limits from two departments.
Option (2) Unity of Direction — Incorrect. Unity of direction means one head and one plan for each group of activities with the same objective. The problem here is one person getting orders from two bosses.
Option (3) Subordination of individual interest to general interest — Incorrect. This principle says the interest of the organisation comes before a person’s own interest. No one here is putting his own interest first.
Option (4) Initiative — Incorrect. Initiative means workers should be encouraged to make their own plans and suggestions. The case is about confusing orders, not about initiative.