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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.

Solution

Correct Option: 3

Fayol's principle of Discipline requires obedience and respect for authority based on agreements and commitments honoured by both employees and management. When management fails to honour its commitment, the principle of Discipline is violated. Unity of Command deals with one boss per subordinate, Equity with fair treatment, and Remuneration with fair pay.

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