Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Match list I with list II

LIST 1 LIST II
A. People and material must be in suitable places at appropriate
time for maximum efficiency
I. Esprit de corps
B. This principle resembles with military organisation II. Order
C. It will minimize the need for using penalties III. Stability of tenure
D. Employees should be given reasonable time to show results IV. Unity of command

Choose the correct answer from the options given below:

Options:

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

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

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

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

Correct Answer:

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

Explanation:

* People and material must be in suitable places at appropriate time for maximum efficiency- 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.

*This principle resembles with military organisation- Unity of Command: 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. Suppose a sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. But finance department tells her/ him not to offer more than 5% discount. Now there is no unity of command. This can be avoided if there is coordination between various departments.

* It will minimize the need for using penalties- Esprit De Corps: Management should promote a team spirit of unity and harmony among employees, according to Fayol. 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.

* Employees should be given reasonable time to show results- Stability of Personnel: “Employee turnover should be minimised to maintain organisational efficiency”, according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/ position for a minimum fixed tenure. They should have stability of tenure. They should be given reasonable time to show results. Any adhocism in this regard will create instability/insecurity among employees. They would tend to leave the organisation. Recruitment, selection and training cost will be high. So stability in tenure of personnel is good for the business.