Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Match List – I with List – II.

LIST - I

LIST - II

 A. Unity of command 

 I. Pay and compensation should be fair to employees and organisation

 B. Remuneration

 II. Distribution of decision making authority amongst many personnels 

 C. Equity

 III. Only one boss for every Individual employee

 D. Decentralisation

 IV. Fairness to all employees

Choose the correct answer from the options given below : 

Options:

A-II, B-III, C-IV, D-I

A-I, B-II, C-III, D-IV

A-II, B-I, C-III, D-IV

A-III, B-I, C-IV, D-II

Correct Answer:

A-III, B-I, C-IV, D-II

Explanation:

The correct answer is Option (4) - A-III, B-I, C-IV, D-II.

* Unity of command- Only one boss for every Individual employee. According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Fayol gave a lot of importance to this principle. He felt that if this principle is violated “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened”. The principle resembles military organisation. Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done.

* Remuneration- Pay and compensation should be fair to employees and organisation. 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.

* Equity- Fairness to all employees. 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.

* Decentralisation- Distribution of decision making authority amongst many personnels. The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.” The degree of centralisation will depend upon the circumstances in which the company is working. In general large organisations have more decentralisation than small organisations. For example, panchayats in our country have been given more powers to decide and spend funds granted to them by the government for the welfare of villages. This is decentralisation at the national level.