Which of the following principle of management of Henry Fayol affects the entire organisation?

Unity of Direction

The correct answer is option 2- Unity of Direction.

'Unity of Direction' principle of management of Henry Fayol affects the entire organisation.

Unity of Direction emphasizes that the organization should have a single plan of action to guide its activities, ensuring that all members are working toward the same objectives. This principle aligns the efforts of the entire organization, creating a cohesive direction that impacts all departments or units within the organization.

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. This ensures unity of action and coordination. For example, if a company is manufacturing motorcycles as well as cars then it should have two separate divisions for both of them. Each division should have its own incharge, plans and execution resources. On no account should the working of two divisions overlap.

OTHER OPTIONS

• Unity of Command ensures that each employee reports to only one superior, which affects individuals or teams but does not necessarily impact the entire organization as a whole.

• Standardization and Simplification focus on specific tasks or processes rather than the broader organizational structure or direction.