A Purchase Manager at top level in a reputed corporate, Mr. Saxena holds the responsibility for ordering office furniture for the firm. While deciding on the supplier for the Financial year 2025-26, he gave the order to his cousin at a higher price per unit instead of the firm's usual supplier who was willing to lower the rates for the order. Which Principles of Management were violated by Mr. Saxena?
(A) Esprit De Corps
(B) Initiative
(C) Centralization and Decentralization
(D) Subordination of Individual Interest to General Interest
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (D) only
(A) Esprit De Corps — Not violated (Incorrect). Esprit de corps means team spirit, the use of “we” instead of “I”. Nothing in the case concerns team spirit.
(B) Initiative — Not violated (Incorrect). Initiative means encouraging workers to make their own suggestions. The case is not about this.
(C) Centralization and Decentralization — Not violated (Incorrect). This principle is about the balance of decision-making authority between the top and the lower levels. Mr. Saxena had the authority to place the order.
(D) Subordination of Individual Interest to General Interest — Violated (Correct). The interest of the organisation must come before the interest of any one person. Mr. Saxena put his cousin’s gain ahead of the firm and paid a higher price, when the usual supplier offered a lower one.
NCERT (2026-27 Edition): “(vi) 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). …” |