Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

What is the primary emphasis regarding overall pay and compensation according to Fayol's principle of 'Remuneration of employees'?

Options:

Employee entitlement to high salaries

Fairness to both employees and the organization

Company's obligation to maximize profits

Excessive remuneration for management

Correct Answer:

Fairness to both employees and the organization

Explanation:

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.