Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Match the following

LIST I LIST II
A) Subordination of Individual
Interest to General Interest
I) Concentration of decision-making authority
B) Remuneration of Employees II) Gang plank
C) Scalar Chain III) Fair to both employees & organisation
D) Centralisation IV) Interests of company will be priority
Options:

A-I, B-III, C-IV, D-II

A-IV, B-III, C-II, D-I

A-I, B-II, C-IV, D-III

A-II, B-III, C-IV, D-I

Correct Answer:

A-IV, B-III, C-II, D-I

Explanation:

* Subordination of Individual Interest to General Interest: The interests of an organisation should take priority over the interests of any one individual employee according to Fayol.

* Remuneration of Employees: 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.

* Scalar Chain: An organisation consists of superiors and subordinates. The formal lines of authority from highest to lowest ranks are known as scalar chain. According to Fayol, “Organisations should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.”, if there is an emergency then subordinate can directly contact other person of same level through ‘Gang Plank’. This is a shorter route and has been provided so that communication is not delayed.

* Centralisation: The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation.