Matilda is the CEO of Inflorescent Ltd. This year she wants to expand her business and get a growth in profit by 30%. To achieve this target, she has divided the entire work of the organisation into 4 divisions. Each division will be headed by a manager. Each manager will identify 3 workers each who are hardworking and send them for training to increase their efficiency. The Managers also have to decide the best way to do the work. Mr. Aream, who is the manager of the production department has set a chart that all the workers will follow while producing the product. The chart will help in minimising the unnecessary movement. Matilda has also given instructions to all the department managers that they must avoid dual-subordination. To ensure that all the managers are able to achieve their individual targets, Matilda has duly assigned authority to each manager.
By assigning each manager authority, Matilda has followed one of the principles of the management. Identify the principles followed by Matilda.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Authority and Responsibility
Option (1) Scalar Chain — Incorrect. It is the line of authority from top to bottom. Matilda is giving authority to match the target.
Option (2) Unity of command — Incorrect. It means one boss for each employee. Giving authority is a different principle.
Option (3) Co-operation not individualism — Incorrect. It means working together as a team. The case talks about giving authority.
Option (4) Authority and Responsibility — Correct. Managers need authority equal to their responsibility for their targets. Matilda assigned authority to each manager to achieve the individual targets.
NCERT (2026-27 Edition): “(ii) Authority and Responsibility: According to Fayol, “Authority is the right to give orders and obtain obedience, and responsibility is the corollary of authority. The two types of authority are official authority, which is the authority to command, and personal authority which is the authority of the individual manager.” Authority is both formal and informal. Managers require authority commensurate with their responsibility. There should be a balance between authority and responsibility. …” |