Target Exam

CUET

Subject

Business Studies

Chapter

Directing

Question:

Identify the Principle of Directing :

Options:

Leadership

Unity of Direction

Centralisation and Decentralisation

Stability of Personnel

Correct Answer:

Leadership

Explanation:

The correct answer is option (1)- Leadership. 

Leadership (Correct): This is a core principle of directing. It states that managers should exercise good leadership to influence employees to work willingly toward organizational goals. Effective directing is impossible without guiding and motivating subordinates through leadership. 

ALL OTHER OPTIONS ARE PRINCIPLE OF MANAGEMENT GIVEN BY FAYOL.

Stability of personnel. “Employee turnover should be minimised to maintain organisational efficiency”, according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure. They should have stability of tenure. They should be given reasonable time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. Recruitment, selection and training cost will be high. So stability in tenure of personnel is good for the business.

Unity of Direction - All the units of an organisation should be moving towards the same objectives through coordinated and focussed efforts. Each group of activities having the same objective must have one head and one plan. This ensures unity of action and coordination. It prevents overlapping of activities by ensuring that everyone is working cohesively towards common goals.

Centralisation and Decentralisation- The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.” The degree of centralisation will depend upon the circumstances in which the company is working. In general large organisations have more decentralisation than small organisations. For example, panchayats in our country have been given more powers to decide and spend funds granted to them by the government for the welfare of villages. This is decentralisation at the national level.