Read the following text and answer the following question.

After completing her Bachelors in Fashion Designing from a well-known college in Germany, Ashima has opened a boutique in a posh market in Mumbai. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10 percent discount, whereas the decision to give any further discount rests with Ashima 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 honoured her commitment by giving bonus to her employees. She also instructed her 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 solve the conflicts among employees.

"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 honoured her commitment by giving bonus to her employees.”

Which principle of management is being highlighted here?

Discipline

The correct answer is option 3- Discipline.

According to Fayol, Discipline is not just about following rules and regulations; it involves:

1. Good superiors at all levels.

2. Clear and fair agreements between the management and the workers.

3. Judicious application of penalties.

In this scenario, the core focus is on the honouring of commitments. There was an agreement: the employees would put in extra hours, and in return, Ashima promised a special incentive. By paying the bonus when the business succeeded, Ashima honoured her commitment. In management terms, fulfilling a promise made in an agreement is a hallmark of organizational discipline.

While the mention of a bonus might make Option 4 (Remuneration) seem like a possibility, the specific context of this case study highlights the principle of Discipline as defined by Henri Fayol.

NCERT: "Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. Suppose management and labour union have entered into an agreement whereby workers have agreed to put in extra hours without any additional payment to revive the company out of loss. In return the management has promised to increase wages of the workers when this mission is accomplished. Here discipline when applied would mean that the workers and management both honour their commitments without any prejudice towards one another."

OTHER OPTIONS

• Order- According to Fayol, “People and materials must be in suitable places at appropriate time for maximum efficiency.” The principle of order states that ‘A place for everything (everyone) and everything (everyone) in its (her/his) place’. Essentially it means orderliness. If there is a fixed place for everything and it is present there, then there will be no hindrance in the activities of business/ factory. This will lead to increased productivity and efficiency.

• Espirit De Corps- Management should promote a team spirit of unity and harmony among employees. Management should promote teamwork especially in large organisations because otherwise objectives would be difficult to realise. It will also result in a loss of coordination. A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties.

• Remuneration to Employees- The overall pay and compensation should be fair to both employees and the organisation. The employees should be paid fair wages, which should give them at least a reasonable standard of living. At the same time, it should be within the paying capacity of the company. In other words, remuneration should be just and equitable. This will ensure congenial atmosphere and good relations between workers and management. Consequently, the working of the company would be smooth.