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.

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

Discipline

Order

Equity

Unity of Direction

✅ Correct Option: 1

Option 1 -> Discipline refers to obedience, adherence to agreements, and honoring commitments between management and employees. Keeping promises is a key aspect of this principle.

Option 2 -> Order relates to systematic arrangement of resources and people - "right person in the right place." This doesn't concern commitment fulfillment.

Option 3 -> Equity means fair and just treatment of all employees. While related to fairness, it doesn't specifically address honoring commitments.

Option 4 -> Unity of Direction means one plan and one leader for activities with the same objective. This is about organizational alignment, not commitment adherence.

Hence, Option 1: Discipline -> When the employer honored her commitment by giving the bonus as promised when business did well, she demonstrated the principle of Discipline. This principle emphasizes respecting agreements, maintaining commitments, and upholding mutual obligations between management and employees. By keeping her word, she reinforced discipline in the organization -> 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 42

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

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

Solution

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