Which principle of management states that 'there should be a place for everything and everything should be in its place'?

Order

The correct answer is option 2- Order.

Order principle is highlighted in the given statement.

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.