Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Sanju after completing his entrepreneurship course in Switzerland, returned to India and launched 'Aroma Coffee Can,' a coffee shop situated in a New Delhi mall. The establishment prided itself on a distinct coffee aroma and an extensive array of flavors. Despite these features, the business failed to gain attraction and remained unprofitable. Eager to uncover the reasons behind this, Sanju appointed Sanchi an MBA graduate, as the Manager to investigate. Sanchi, in her role, gathered feedback from customers who expressed appreciation for the unique coffee aroma but were dissatisfied with the extended waiting times for order processing. Upon analysis, she identified unnecessary bottlenecks that could be eliminated to streamline operations. Sanchi implemented a standardized order processing time, addressing the issue. Additionally, she recognized that certain flavors had insufficient demand and decided to discontinue their sale. These strategic adjustments proved effective, swiftly attracting customers and transforming the fortunes of the coffee shop. She also advised Sanju to give equal treatment to his subordinates and distribute the work between them according to their capability.

Which principle is highlighted in the below statement?

'She also advised Sanju to give equal treatment to his subordinates'.

Options:

Differential piece wage system

Method study

Division of work

Equity

Correct Answer:

Equity

Explanation:

Equity: Good sense and experience are needed to ensure fairness to all employees, who should be treated as fairly as possible,” according to Fayol. This principle emphasises kindliness and justice in the behaviour of managers towards workers. This will ensure loyalty and devotion. Fayol does not rule out use of force sometimes. Rather he says that lazy personnel should be dealt with sternly to send the message that everyone is equal in the eyes of the management. There should be no discrimination against anyone on account of sex, religion, language, caste, belief or nationality etc.