"People and materials must be in suitable places at appropriate time for maximum efficiency."

Application of this principle will lead to :

Increased productivity and efficiency

The correct answer is option (2) : Increased productivity and efficiency.

"People and materials must be in suitable places at appropriate time for maximum efficiency."-This statement is related with principle of order of Henry Fayol.

People and materials must be in suitable places at appropriate time for maximum efficiency will help in increased productivity and efficiency.

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.