Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the following case study and answer the question.

Mr. Anil is working in an MNC as a production manager. Mr. Rajat is working under him who is responsible for ordering raw material for the firm. Mr. Anil always take care of his subordinates, but gives priority to organisational objectives. All the subordinates obey the orders of Mr. Anil. They are self-motivated to take steps.

"Mr. Anil always takes care of his employees but gives priority to organisational objectives".

Identify the principle of management followed by Mr. Anil.

Options:

Espirit De Corps

Stability of personnel

Subordination of individual interest to general interest

Discipline

Correct Answer:

Subordination of individual interest to general interest

Explanation:

The correct answer is option (3) : Subordination of individual interest to general interest

The principle of management followed by Mr. Anil is Subordination of individual interest to general interest.

Mr. Anil prioritizes organizational objectives, which is in line with the principle of subordinating individual interests to the general interests of the organization. This principle emphasizes that individual interests should be aligned with and supportive of the overall goals and objectives of the organization.

* 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. Every worker has some individual interest for working in a company. The company has got its own objectives. For example, the company would want to get maximum output from its employees at a competitive cost (salary). On the other hand, an employee may want to get maximum salary while working the least. In another situation an individual employee may demand some concession, which is not admissible to any other employee like working for less time. In all the situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person. For example, interests of various stakeholders, i.e., owners, shareholders, creditors, debtors, financers, tax authorities, customers and the society at large cannot be sacrificed for one individual or a small group of individuals who want to exert pressure on the company. A manager can ensure this by her/his exemplary behaviour. For example, she/he should not fall into temptation of misusing her/his powers for individual/ family benefit at the cost of larger general interest of the workers/ company. This will raise her/his stature in the eyes of the workers and at the same time ensure same behaviour by them.