Under Fayol’s principle of initiative, a good company should have an employee suggestion system whereby suggestions which result in substantial ________ should be rewarded.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → cost or time reduction
Option (1) increase in output — Incorrect. Fayol’s suggestion system rewards suggestions that bring a substantial cost or time reduction; a rise in output is not the result he names.
Option (2) improvement in quality — Incorrect. Better quality is a fair goal, but the suggestion system rewards cost or time reduction, not quality.
Option (3) cost or time reduction — Correct. Initiative means taking the first step with self-motivation. To encourage it, a good company runs an employee suggestion system. Suggestions that bring a substantial cost or time reduction are rewarded.
Option (4) rise in employee morale — Incorrect. Keeping morale high is linked with esprit de corps, the principle of team spirit. It is not the result the suggestion system rewards.
NCERT (2026-27 Edition): “(xiii) Initative: Workers should be encouraged to develop and carry out their plans for improvements according to Fayol. Initiative means taking the first step with self-motivation. It is thinking out and executing the plan. It is one of the traits of an intelligent person. Initiative should be encouraged. But it does not mean going against the established practices of the company for the sake of being different. A good company should have an employee suggestion system whereby initiative/suggestions which result in substantial cost/time reduction should be rewarded.” |