Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the passage and answer the following questions.

After completing her Bachelor's in Fashion Designing from a well known college in London, Aahana opened a boutique in a posh market in Delhi. She divided the work into smaller units and each employee was well-trained to perform his/her work efficiently. The sales persons are allowed to close a deal with the buyers by giving a maximum of 5% discount. Whereas the decision to give any further discount rests with Aahana as the final authority.

In the earlier period of her business venture, employees were asked to put in extra hours of work. In return, she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honored her commitment by giving a bonus to her employees. She also instructed employees that communication from top to bottom should follow the official lines of command.

However, she tends to be more biased towards her female employees when it comes to resolving conflicts among employees.

"She tends to be biased towards female employees when it comes to resolving conflicts among employees." Which principle is being violated here?

Options:

Discipline

Order

Equity

Unity of Direction

Correct Answer:

Equity

Explanation:

The correct answer is option 3- Equity.

Equity principle is violated in the given lines as the principle of Equity states that managers should be kind and fair to their subordinates and treat all employees equally and without bias. In the passage, Aahana shows biasness towards female employees when resolving conflicts, which violates the principle of equity.

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.