A finance manager was asked to pitch an offer to an automobile firm to buy some equity. The CEO and General Manager had different opinions on the percentage of the equity that should be acquired. The finance manager was in a dilemma and could not close the deal. Which principle is violated here?
A finance manager was asked to pitch an offer to an automobile firm to buy some equity. The CEO and General Manager had different opinions on the percentage of the equity that should be acquired. The finance manager was in a dilemma and could not close the deal. Which principle is violated here?
Solution
Option 1 -> Unity of Command states that an employee should receive orders from only one superior to avoid confusion and conflict.
Option 2 -> Unity of Direction means one plan and one head for a group of activities with the same objective, ensuring coordinated efforts.
Option 3 -> Subordination of individual interest to general interest means personal interests should not override organizational goals.
Option 4 -> Initiative encourages employees to take creative action and show enthusiasm in their work.
Hence, Option 1: Unity of Command -> The finance manager received conflicting opinions from two superiors (CEO and General Manager) about the equity percentage to acquire. This created a dilemma and prevented decision-making. Unity of Command principle requires that each employee should receive orders from only one superior to avoid confusion, conflict, and paralysis in decision-making. When multiple bosses give different directions, it violates this fundamental management principle -> correct
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