"A sales manager has to negotiate a deal with a buyer. She finds that if she can offer a credit period of 60 days, she is likely to clinch the deal which is supposed to fetch the company a net margin of say Rs. 50 crores. The company entrusts her the task of clinching the deal but gives her power to offer a credit period of only 40 days". Identify the principle of management violated in the aforesaid statement.

Option 1 -> Authority and Responsibility: This principle states that authority should be equal to responsibility. Here, the manager is responsible for clinching the deal but lacks adequate authority (can only offer 40 days credit when 60 days is needed).

Option 2 -> Unity of Command: This principle means an employee should receive orders from only one superior. This is not relevant here as there's no mention of multiple superiors giving conflicting orders.

Option 3 -> Unity of Direction: This principle states that activities with the same objective should have one plan and one head. This doesn't apply to the given situation.

Option 4 -> Scalar Chain: This refers to the formal line of authority from highest to lowest rank. This principle is not violated in this scenario.

Hence, Option 1: Authority and Responsibility -> The sales manager has been given the responsibility to clinch the deal but has not been given sufficient authority to do so (she can offer only 40 days credit while 60 days is required). According to this principle, responsibility and authority must be balanced - if someone is accountable for results, they must have the power to achieve them -> correct