Business Studies

Fayol’s principles of management

Q: An employee is told by the operations head to speed up a task, while the quality head tells the employee to stop that same task. Which Fayol principle is violated?

Unity of command The correct answer is D, Unity of command. The employee receives conflicting instructions from two superiors about the same task. Fayol’s principle says that an employee should receive orders from one superior.

Q: A company promotes the same subscription plan through a coordinated plan for promotion, customer service and sales, all led by one manager. Which Fayol principle is being applied?

Unity of direction The correct answer is A, Unity of direction. Activities that share the objective of promoting the same plan are organised under one plan and one manager. Unity of command is different: it concerns an individual employee receiving orders from one superior.

Q: A purchase officer accepts a personal gift and buys low-quality material, causing a loss to the organisation. Which principle is violated?

Subordination of individual interest to general interest The officer’s personal benefit has led to a decision that harms the organisation. Fayol’s principle of subordination of individual interest requires the organisation’s general interest to take priority over an individual’s interest.

Q: When fixing pay, a company considers employees’ skills, experience, the nature of the work, and market rates. Which principle is being applied?

Remuneration The principle of remuneration concerns fair and satisfactory compensation for employees. Considering factors such as skills, experience, the work involved, and market rates helps the company set appropriate pay.

Q: In a startup, the founder personally decides every minor customer complaint, leaving the team waiting. What problem does this show?

Excessive centralisation When even routine decisions are kept with the founder, decision-making authority is concentrated too heavily at the top. This is excessive centralisation and can delay responses.

Q: To handle an urgent order, the production and warehouse managers at the same level communicate directly and arrange dispatch. Which concept does this illustrate?

Gang plank A gang plank allows managers at the same level to communicate directly when this helps speed up work, especially in urgent situations. The usual scalar chain should still be respected, with appropriate authorisation and superiors kept informed as needed.

Q: In a library, books are arranged by category and employees are assigned to specific counters. Which principle is illustrated?

Order Fayol’s principle of order means having the right material and the right person in the appropriate place. The organised books illustrate material order, while the assigned counters illustrate order for personnel.

Q: A hotel frequently replaces its trained reception staff, and the guest experience suffers. Which principle is being neglected?

Stability of tenure of personnel Stability of tenure encourages continuity in staffing. Frequent replacement can disrupt the use of employees’ experience and weaken consistent service to guests.

Q: An employee is allowed to suggest a new packaging method and test it within agreed limits. Which principle is being applied?

Initiative Fayol’s principle of initiative encourages employees to think, suggest plans, and take appropriate action within their authority. The employee’s opportunity to propose and test an idea illustrates this principle.

Q: A manager publicly praises the team’s achievement rather than giving credit only to one person. Which principle does this help strengthen?

Esprit de corps Esprit de corps means fostering team spirit and unity. Recognising the team’s shared achievement can help strengthen cooperation and a sense of unity among employees.

In Class 12 Business Studies, this topic introduces Henri Fayol’s principles of management as practical guidelines for understanding how organisations are planned, coordinated and controlled. Students explore ideas such as division of work, authority and responsibility, discipline, unity of command, unity of direction, scalar chain, equity and esprit de corps. The topic also helps them connect these principles with everyday managerial decisions and organisational functioning within the broader chapter, Principles of Management.

Expert · Level 5 · 25 questions

Practice questions

01An employee is told by the operations head to speed up a task, while the quality head tells the employee to stop that same task. Which Fayol principle is violated?

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Answer and explanation

Correct answer: D. Unity of command

The correct answer is D, Unity of command. The employee receives conflicting instructions from two superiors about the same task. Fayol’s principle says that an employee should receive orders from one superior.

Fayol’s principles of management

Practice questions

11How should Fayol’s principles be understood and applied?फेयोल के सिद्धांतों को किस प्रकार समझना और लागू करना चाहिए?

20What is a main administrative benefit of the scalar chain?स्केलर शृंखला का एक प्रमुख प्रशासनिक लाभ क्या है?

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11How should Fayol’s principles be understood and applied?

20What is a main administrative benefit of the scalar chain?