Fayol’s principles of management

Correct answer: A. Initiative

Opportunity to present a plan is related to initiative. Exam tip: connect plan proposal with initiative.

Correct answer: B. Esprit de corps

The situation illustrates esprit de corps, Fayol’s principle of developing team spirit, unity and cooperation among employees. A group discussion can give team members an opportunity to share views, understand one another and work toward a common objective. Thus, option B is correct because the stated purpose is to increase cooperation. Centralisation in option A concerns where decision-making authority is concentrated. Order in option C concerns the proper arrangement of people and materials, while remuneration in option D concerns fair compensation. None of those principles directly explains a manager’s deliberate effort to strengthen collective unity and cooperation.

Correct answer: A. Giving accounting work to a trained accountant

Division of work means breaking a broader job into specialised tasks and assigning each task to a person who has the required skill or training. Specialisation allows a worker to become more efficient, gain practice, reduce unnecessary effort, and improve the quality of work. It does not mean distributing duties randomly or making every employee perform every kind of task.

Giving accounting work to a trained accountant is a direct example of this principle, so option A is correct. The accountant has the relevant knowledge and can perform the task more accurately and efficiently. Giving work without considering ability goes against specialisation. Hiding files and stopping wages are unrelated actions and do not represent division of work.

Correct answer: B. Proper authority

Authority is necessary to fulfil responsibility. Exam tip: remember authority needed for responsibility.

Correct answer: A. Scalar chain

The direct answer is A, Scalar chain. In Fayol’s principle, a scalar chain means the formal line of authority running from the highest manager down through successive levels to the lowest supervisor. Step by step: the general manager is at a higher level; authority passes through the organisational hierarchy; the supervisor is at a lower level; therefore this order is called the scalar chain. Option A is correct because it directly describes this hierarchy. Option B, equity, means fair and kind treatment of employees, not the order of authority. Option C, initiative, means allowing employees to suggest and carry out plans, not showing reporting levels. Option D, remuneration, means payment or wages given to employees, not the chain of command. A useful exam cue is: whenever the question mentions the line from top management to lower management, think scalar chain. This explanation and the supplied answer are consistent.

Correct answer: A. Gang plank

Gang plank is an exception to Fayol’s scalar chain principle. In an emergency, information may pass directly between the concerned officials instead of moving through the entire formal hierarchy; therefore, it is a shortcut for quick communication. Equity concerns fair treatment of employees, not a communication route. Exam tip: choose gang plank when an emergency shortcut through the hierarchy is described.

Correct answer: A. Discipline

The behaviour described—punctual attendance and compliance with organisational rules—is a direct example of Fayol’s principle of discipline. Discipline involves respect for rules, agreements, authority and the standards necessary for orderly work. Therefore, option A is correct. Equity in option B means fair and kind treatment of employees, not simply punctuality. Initiative in option C refers to employees’ ability to think, propose ideas and take suitable action, while decentralisation in option D refers to distributing decision-making authority to lower levels. The facts in the stem provide two strong clues, punctuality and rule-following, and both point to discipline.

Correct answer: B. Subordination of individual interest to general interest

According to Fayol’s principle of subordination of individual interest to general interest, the overall interest of the organisation takes priority over the personal interest of an employee or manager. Therefore, organisational goals are placed before personal goals. Order refers to keeping the right person and material in the right place, so it is not the correct answer here. Exam tip: if personal and organisational interests conflict, choose the principle that gives priority to general interest.

Correct answer: A. Centralisation

Decision concentration at headquarters is centralisation. Exam tip: connect headquarters decision with centralisation.

Correct answer: B. Decentralisation

The governing concept is Fayol’s principle of decentralisation. Decentralisation means that decision-making authority is distributed from the higher level to lower or local managerial levels. Here, the local manager is empowered to resolve customer complaints immediately instead of waiting for approval from the head office. Therefore, option B is correct. Centralisation in option A would mean that important decisions remain concentrated with senior management. Discipline concerns obedience to organisational rules, while order concerns placing people and materials in suitable positions. The example specifically highlights the transfer of authority to a local manager, so it is a direct illustration of decentralisation and may also improve responsiveness to customers.

Correct answer: A. One plan is made for one sales target

The governing concept is Fayol’s principle of unity of direction. It requires that activities having the same objective should be guided by one plan and one head. In option A, all activities connected with a particular sales target are brought under a common plan, so the option correctly represents unity of direction. Option B describes a violation of unity of command because one employee receives orders from two superiors. Option C promotes separate departmental aims rather than a coordinated objective, and option D removes planning altogether. Unity of direction is concerned with coordination of efforts toward one objective; it is different from unity of command, which concerns the number of superiors giving orders to one employee.

Correct answer: A. Employee receives orders from one department head

The governing concept is Fayol’s principle of unity of command. According to this principle, each employee should receive orders from only one immediate superior for a particular activity. Option A satisfies this requirement because the employee reports to and receives instructions from one department head. Option B creates multiple sources of authority and can produce confusion, conflict, and contradictory instructions. Option C is not unity of command; it represents the absence of supervision and discipline. Option D reverses the normal organisational relationship and does not describe an employee’s reporting structure. Unity of command should not be confused with unity of direction: the former concerns one employee and one boss, whereas the latter concerns one plan for activities sharing one objective.

Correct answer: A. Division of work

Dividing work on the basis of specialisation is division of work. Exam tip: remember specialisation based work.

Correct answer: A. Authority and responsibility

The direct answer is A, Authority and responsibility. Fayol says that responsibility means being answerable for a task, while authority means having the right and power to give instructions, use resources and make necessary decisions. These two must be balanced. Reasoning step by step: the employee is made responsible for results; the employee does not receive enough power; without power, the employee cannot properly complete the task; therefore the principle of authority and responsibility is violated. Option A is correct. Option B, equity, concerns fair and kind treatment. Option C, order, means having the right person and material in the right place. Option D, remuneration, concerns fair payment. None of these directly explains the mismatch between duty and power. Remember: responsibility without authority creates helplessness; authority without responsibility can create misuse of power. The supplied answer is accurate.

Correct answer: B. Remuneration

Fayol’s principle of remuneration states that employees should receive fair and satisfactory payment for their work. Fair wages improve satisfaction, loyalty and dedication to work. Discipline concerns obedience to rules, whereas centralisation concerns the distribution of decision-making authority. Exam tip: if a question mentions wages, salary or payment, link it to the principle of remuneration.

Correct answer: A. Equity

Fayol’s principle of equity requires managers to treat employees fairly, impartially and kindly. Therefore, maintaining justice indicates equity. Discipline concerns obedience to rules and proper conduct, but its central idea is not fair treatment. Exam tip: choose equity when the key words are ‘justice’, ‘fairness’ or ‘kindness’.

Correct answer: B. Stability of personnel

Fayol’s principle of stability of personnel states that employees should not be moved or replaced unnecessarily and should receive enough time to become familiar with their work. Reasonable continuity helps workers gain experience, confidence, and efficiency. It also reduces the cost and disruption caused by frequent turnover. The principle does not mean that an employee can never change a position; it means that avoidable instability should be prevented.

Option B is correct because keeping an employee in one position for a reasonable period expresses stability of personnel. Initiative means allowing employees to suggest and carry out ideas. Unity of command means receiving orders from one superior. Equity means fair and kind treatment. These ideas are different from tenure in a position. Therefore, the situation directly illustrates option B, not the other three principles.

Correct answer: A. Initiative

Giving and encouraging suggestions is initiative. Exam tip: connect improvement plan with initiative.

Correct answer: A. Esprit de corps

Fayol’s principle of esprit de corps means building unity, cooperation and a sense of ‘we’ among employees. Therefore, a manager stressing ‘we’ rather than ‘I’ is applying this principle. Discipline concerns obedience to rules, not team spirit. Exam tip: Link ‘we feeling’, unity and team spirit with esprit de corps.

Correct answer: A. Order

Order talks about placing the right person at the right place. Exam tip: remember right employee right place.

Correct answer: A. Through the formal hierarchical chain of authority

Fayol’s scalar chain is the formal hierarchical line of authority and communication from the highest to the lowest level in an organisation. Therefore, normal information moves through this formal authority route. A gang plank is an exception used for quick communication in special situations, not the usual route. Exam tip: remember scalar chain as the formal line of authority from top to bottom.

Correct answer: A. When same-level officers directly discuss an urgent matter

The governing concept is Fayol’s scalar chain and its limited exception, the gang plank. The scalar chain is the formal line of authority and communication from the highest to the lowest level. Normally, messages should pass through this chain, but in an urgent matter, officers at the same level may communicate directly with one another after informing or obtaining the required approval from their superiors. This shortcut avoids unnecessary delays, so option A is correct. Option B concerns remuneration, option C incorrectly suggests that the principle itself should be abolished, and option D concerns participation rather than communication. Gang plank does not remove the scalar chain; it is a controlled, exceptional route used to save time.

Correct answer: A. Initiative and participation

Excessive centralisation may reduce lower level initiative. Exam tip: remember centralisation affects participation.

Correct answer: A. Lower level decisions can become faster

Authority at local level can make decisions quicker. Exam tip: connect decentralisation with quick local decision.

Correct answer: A. Division of work remuneration equity initiative

The direct answer is A. Fayol’s fourteen principles include division of work, remuneration, equity and initiative. First identify each phrase in option A: division of work is specialisation; remuneration is fair payment; equity is fair and kind treatment; initiative is freedom to suggest and carry out plans. All four are Fayol’s principles, so A is correct. Option B lists market price, discount and advertisement. These may be business or marketing terms, but they are not Fayol’s named principles. Option C lists bank rate, tax payment and dividend, which belong to finance or company matters, not Fayol’s fourteen principles. Option D lists machine, colour, building and rent; these are objects or expenses, not management principles. The important method is to check every term in an option, because the question asks for only Fayol’s principles. A single unrelated term would make an option wrong. Memory cue: Fayol’s list includes work division, authority, discipline, unity, equity, remuneration, initiative and more. The supplied answer is correct.