Business Studies

Principles of Management

Easy

After completing her Bachelor's in Fashion Designing from a well known college in London, Aahana opened a boutique in a posh market in Delhi. She divided the work into smaller units and each employee was well-trained to perform his/her work efficiently. The sales persons are allowed to close a deal with the buyers by giving a maximum of 5% discount. Whereas the decision to give any further discount rests with Aahana as the final authority.

In the earlier period of her business venture, employees were asked to put in extra hours of work. In return, she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honored her commitment by giving a bonus to her employees. She also instructed employees that communication from top to bottom should follow the official lines of command.

However, she tends to be more biased towards her female employees when it comes to resolving conflicts among employees.

"She instructed employees that communication from top to bottom should follow the official lines of command". Identify the Principle of Management here.

Discipline

Order

Equity

Scalar Chain

✅ Correct Option: 4

Option 1 -> Discipline refers to obedience, respect for authority, and adherence to organizational rules, not specifically about communication channels.

Option 2 -> Order means systematic arrangement of resources and people in their right place, focusing on organization rather than communication flow.

Option 3 -> Equity deals with fair and just treatment of all employees, ensuring kindness and justice in the workplace, unrelated to communication hierarchy.

Option 4 -> Scalar Chain establishes the formal line of authority and communication from top management to lower levels, requiring communication to flow through official hierarchical channels.

Hence, Option 4: Scalar Chain -> This principle defines the chain of command in an organization where communication must follow the prescribed hierarchical path from superior to subordinate, ensuring proper flow of information through official channels -> correct

Question 41

"The sales persons are allowed to give a maximum of 5% discount, whereas the decision to give an extra discount rests with Aahana".

Identify the Principle of Management highlighted here.

Question 43

"She divided the work in smaller units and each employee is well trained to perform his/her work efficiently".

Which Principle of Management is followed here?

Question 44

"She tends to be biased towards female employees when it comes to resolving conflicts among employees." Which principle is being violated here?

Question 45

"When the business was doing well, she honored her commitment by giving a bonus to her employee". Identify the Principle of Management here.

"She instructed employees that communication from top to bottom should follow the official lines of command". Identify the Principle of Management here.

Solution

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