Fayol’s principles of management

Both are correct because esprit de corps is linked with team spirit. Exam tip: remember we feeling and cooperation.

Top level strategy and lower level local authority show balanced authority distribution. Exam tip: remember top strategy local authority.

Personal benefit should not be above organisational policy and interest. Exam tip: treat secret discount as a personal interest clue.

Stability of personnel saves both experience and training cost. Exam tip: treat rapid replacement as a stability issue.

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

Gang plank is for urgent need not routine bypass. Exam tip: understand routine shortcut as misuse.

Fayol separates two principles that sound similar but operate at different levels. Unity of command means that one employee should receive orders from one immediate superior for a particular task. Its purpose is to avoid conflicting instructions and divided accountability. Unity of direction means that activities having the same objective should follow one plan and one head; it coordinates the work of a group or department. Therefore option A is correct because it identifies the order source for an employee versus the common plan for a shared objective. Wages, materials and bonuses are not the defining ideas, so options B and C are false. Option D is also wrong because the principles are related but not identical.

Stopping suggestions weakens initiative and distrust weakens team spirit. Exam tip: treat fear culture as a dual issue.

The correct answer is Equity. Fayol’s principle of equity requires managers to treat employees fairly and justly. Denying opportunities because of caste, region, relationship, or personal bias violates this principle. Discipline concerns obedience to rules, so it is not the issue here even though the employee follows rules. Exam tip: Link discrimination, favouritism, and fair opportunity with the principle of equity.

Proper use of special skill happens through division of work. Exam tip: treat specialist doing routine unrelated work as a violation.

Remuneration should be fair and satisfactory. Exam tip: treat unfair pay difference as a remuneration issue.

Division of work can apply to both technical and managerial tasks. Exam tip: remember broad application.

Order means placing the right person at the right place. Exam tip: connect ability job place fit with order.

Proper balance is needed in authority distribution. Exam tip: treat branch policy deviation as a decentralisation balance issue.

Following rules is discipline and giving suggestions is initiative. Exam tip: identify rules plus suggestions.

Stability is not enough because right person and right work are also needed. Exam tip: treat stable but misfit work as an order and division issue.

Giving up personal convenience shows general interest and team target shows team spirit. Exam tip: identify personal sacrifice plus team goal.

The target is responsibility and promotion expense authority may be necessary. Exam tip: remember expense authority with target.

Gang plank gives a communication shortcut in urgent need. Exam tip: connect urgent opportunity with gang plank.

The governing concept is Fayol’s principle of equity. Equity requires managers to combine fairness, justice and considerate treatment when dealing with employees. It does not mean that every person must receive exactly the same outcome regardless of responsibility, performance, experience or circumstances. Reasonable differences may be fair when they are based on consistent and relevant criteria rather than prejudice or arbitrary treatment. Therefore, statement one is correct. Statement two confuses equity with mechanical equality and is incorrect. Hence option A is the only valid answer. Options B, C and D all misclassify at least one statement.

Remuneration should be fair and satisfactory. Exam tip: treat non transparent wage difference as a remuneration issue.

Organisation and rules should not be harmed for private benefit. Exam tip: treat friend benefit as an individual interest clue.

The direct answer is A. Balanced use of Fayol’s principles means applying several principles together according to the organisation’s needs rather than following one principle blindly. Option A includes specialisation, which reflects division of work; clear authority, which supports authority and responsibility; fair treatment, which reflects equity; fair pay, which reflects remuneration; team spirit, which reflects esprit de corps; and quick communication, which can be supported by an efficient scalar chain or gang plank when appropriate. These practices can reinforce one another, so A best shows integrated management. Option B, keeping every decision at the top, is an extreme form of centralisation and ignores suitable delegation. Option C, giving one employee many bosses, violates unity of command and creates confusion. Option D, placing personal interest above organisational interest, violates subordination of individual interest to general interest. The cue is “balanced” or “integrated”: choose the option combining compatible principles, not an extreme or conflicting practice. The supplied answer is correct.

Many Fayol principles together increase clarity and cooperation. Exam tip: treat integrated application as the final summary.

The governing principle is equity. In management, equity means giving employees fair, respectful and kind treatment while making decisions on a reasonable and consistent basis. Equal respect does not require identical performance ratings or rewards when employees have genuinely different responsibilities, effort or results. Fairness can recognise those differences if they are measured objectively and without bias. Thus option C is correct. Centralisation concerns the concentration of authority, division of work concerns specialisation and task allocation, and scalar chain concerns the formal hierarchy of authority. None of those principles directly describes respectful treatment combined with fair performance assessment.