Fayol’s principles of management

Henri Fayol formulated 14 principles of management. These include division of work, authority and responsibility, discipline, unity of command, and unity of direction. The option 12 is incorrect because Fayol’s accepted list contains 14 principles. Exam tip: remember the number 14 along with the names of the principles.

Division of work makes a person skilled in a specific task. Exam tip: connect division of work with specialisation.

Authority and responsibility must be balanced. Exam tip: remember authority with responsibility.

Direct answer: Option A, following rules and agreements. Fayol’s principle of discipline means that members of an organisation respect the rules, procedures, orders, and agreements that govern work. Discipline is not merely harsh punishment. It includes obedience, proper conduct, punctuality, and responsible performance by both employees and managers. Option A is correct because rules and agreements create orderly behaviour and help everyone work toward the organisation’s objectives. Option B is the opposite of discipline: ignoring rules creates disorder. Option C is also wrong because discipline reduces disorder rather than producing it. Option D is irrelevant and incorrect; the principle concerns organisational members and work conduct, not punishing customers. A useful exam link is: discipline equals respect for rules, agreements, and orderly behaviour.

Unity of command means an employee should receive orders from one boss only. Exam tip: remember one employee one boss.

Unity of direction requires one head and one plan for the same objective. Exam tip: remember one head one plan.

In this principle the organisation's interest is primary. Exam tip: remember general interest over individual interest.

Fayol’s principle of remuneration states that employees should receive fair and satisfactory payment for the services they provide. Remuneration should be reasonable for workers and affordable for the organisation; it may include wages, salaries or other suitable benefits. Thus, option A is correct because it directly expresses the idea of fair compensation. Hiding work has no connection with remuneration, removing customer complaints belongs to service or quality management rather than this principle, and choosing a machine colour is unrelated to employee compensation or management principles.

In centralisation decision authority is concentrated at the top level. Exam tip: remember top level authority.

In decentralisation authority is shared with lower levels. Exam tip: remember sharing of authority.

Scalar chain is the line of authority from top to bottom. Exam tip: remember formal authority chain.

Gang plank is a shortcut for quick communication in scalar chain. Exam tip: connect gang plank with scalar chain.

Fayol’s principle of order means that every material and every employee should be in the proper place. This ensures efficient use of resources and avoids delay or disorder in work. Option B relates to assigning work, but the central idea of order is the proper place. Exam tip: remember it as “right person and right material in the right place.”

According to Fayol’s principle of equity, a manager should treat employees fairly, impartially and kindly. Therefore, option B is correct. Harsh or biased behaviour is contrary to equity because it can create dissatisfaction among employees. Exam tip: remember equity as ‘fairness + kindness’.

Direct answer: Option B, retaining employees for a reasonable period. Fayol’s stability of personnel principle says that employees should not be shifted or replaced unnecessarily and should receive enough time to become familiar with their work. Continuity allows them to gain experience, improve skill, and contribute efficiently. It also reduces recruitment and training costs and gives employees confidence. Option B is correct because reasonable retention represents low and healthy employee turnover. Option A is wrong because very frequent transfers disturb continuity. Option C is wrong because removing untrained employees contradicts development and stability. Option D is clearly wrong because daily replacement prevents experience from developing. The principle does not mean that an unsuitable employee can never be changed; it means avoid unnecessary instability. Exam cue: stability of personnel means continuity and low turnover.

Initiative encourages employees to suggest and plan. Exam tip: connect initiative with suggestions.

Esprit de corps increases unity and cooperation in an organisation. Exam tip: connect it with team spirit.

Unity of command is violated when orders come from two superiors. Exam tip: connect conflicting orders with unity of command.

One plan and one head are needed for the same objective. Exam tip: connect same goal different plans with unity of direction.

Individual interest should not be above organisational interest. Exam tip: link personal benefit harming organisation with this principle.

Frequent shifting reduces stability and efficiency. Exam tip: connect frequent shifting with stability.

Direct answer: Option B, remuneration. Fayol’s principle of remuneration concerns the payment employees receive for their work. Remuneration should be fair and satisfactory for employees while remaining reasonable for the organisation. Fair payment supports satisfaction, loyalty, and willingness to work, although money alone is not the only source of motivation. Option B is correct because the situation specifically mentions proper and satisfactory wages. Option A, discipline, concerns respect for rules and proper conduct, not the pay system. Option C, scalar chain, concerns the formal line of authority from higher to lower levels. Option D, order, means having the right person and material in the right place. Therefore none of those three directly explains fair wages. Memory cue: fair wages or payment immediately suggests Fayol’s remuneration principle.

Right material at the right place shows the principle of order. Exam tip: connect files and materials with order.

Fayol’s principle of equity requires managers to combine fairness, justice and appropriate kindness while dealing with employees. It means that employees should not be treated arbitrarily or discriminated against, although fair treatment may consider relevant differences in circumstances and responsibility. Therefore, option B, equity, is correct. Initiative concerns allowing employees to think and act constructively; division of work concerns specialisation; and centralisation concerns the distribution of decision-making authority. None of these alternatives directly expresses fair treatment of all employees.

The direct answer is A: initiative. In Fayol’s principles, initiative means allowing employees to think, suggest ideas, and take suitable constructive action. A manager who listens to new ideas and encourages employees is giving them an opportunity to use initiative. Reasoning step by step: employees notice a possible improvement; they propose it; the manager welcomes and supports the proposal; and the organisation may gain better methods or motivation. Option A is correct because new ideas and encouragement are the clear clues. Option B, remuneration, means payment or reward for work; it is not simply idea-giving. Option C, scalar chain, means the formal line of authority and communication. Option D, discipline, means respecting rules and agreements. None of these three specifically describes encouraging creative suggestions. Exam cue: new ideas, suggestions, creativity, and freedom to propose improvements point to initiative.