Fayol’s principles of management

Correct answer: C. Equity

The key distinction is between financial compensation and the quality of interpersonal treatment. Fayol’s remuneration principle concerns suitable wages or other compensation for work. The question explicitly says that pay is proper, so remuneration is not the main deficiency. Equity requires managers to treat employees fairly, respectfully and kindly; therefore the absence of respectful treatment directly violates equity, making option C correct. Centralisation concerns the location of decision-making authority. Gang plank is an authorised shortcut for communication between employees at corresponding levels, not a rule about dignity or behaviour. Thus the wording points specifically to equity.

Correct answer: A. Unity of command is order from one superior and unity of direction is one plan for the same objective

The governing concept is the distinction between two related Fayol principles. Unity of command means that an employee should receive orders from, and normally be accountable to, only one immediate superior. Unity of direction means that activities having the same objective should be guided by one plan and one head. The first principle focuses on the relationship between an employee and a superior; the second focuses on coordination of activities toward a common objective. Therefore option A is correct. The other options wrongly connect these principles with salary, punishment, material order or stability of personnel.

Correct answer: A. Decentralisation and authority responsibility balance

Local authority shows decentralisation and reporting shows responsibility. Exam tip: treat authority with accountability as a combined Fayol principle.