What is the primary emphasis regarding overall pay and compensation according to Fayol's principle of 'Remuneration of employees'?
Answer & explanation
Correct answer: option 2
The correct answer is option 2- Fairness to both employees and the organization.
The primary emphasis regarding overall pay and compensation according to Fayol's principle of 'Remuneration of employees' is fairness to both employees and the organization.
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.