Read the following passage and answer question.

Mr. Avinash has joined as a vice President of a manufacturing unit manufacturing garments. As a vice president, he was given the responsibility of increasing the production and efficiency of workers. He observed that managers relied on their personal judgement while attending to the problems they confronted. So he recommended work study which will result in saving time, effort and increasing efficiency. He also noticed that management was not honouring their commitment. He surveyed the market too. His study of the survey showed that demand can be increased through diversification.

He decided to diversify into footwear and handbags. He created divisions for garments, footwear and handbags and made the divisional managers responsible for performance. Each division is self contained with respect to various functions like production, purchases, finance, marketing etc. Now he decided to fill the various positions created with the right person. For this, he analysed the number and type of workers needed. He got his organisation registered at naukri.com.

''Management is not honouring their commitment'.

Identify the principle of Fayol being ignored in the above statement.

Discipline

The correct answer is option (3) : Discipline.

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.

So, here management is not honouring its commitment which means it is not observing principle discipline.