Fayol’s principles of management

Correct answer: C. Equity

The principle of equity requires managers to treat employees fairly, justly and without bias. Biased application of rules therefore weakens equity. Division of work concerns specialisation of tasks, not fair enforcement of rules. Exam tip: words such as ‘bias’, ‘justice’ and ‘fair treatment’ usually point to Fayol’s principle of equity.

Correct answer: D. Unity of direction

Activities with the same objective need one plan. In exams connect same purchasing objective with unity of direction.

Correct answer: A. When employee gets such narrow work that boredom and fatigue increase

Division of work is useful but excessive narrowness may increase boredom. In exams remember balanced application.

Correct answer: B. Adequate authority

Adequate authority is necessary to fulfil responsibility. In exams link accountability with authority.

Correct answer: C. Discipline

Fair penalty and rule following strengthen discipline. In exams connect fair penalty with discipline.

Correct answer: D. Unity of command

Unity of command breaks when orders come from two superiors. In exams link instructions from different superiors with this principle.

Correct answer: A. Unity of direction

Activities with the same objective should have one direction. In exams connect different directions for same objective with unity of direction.

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

Departmental or personal interest should not be above general organisational interest. In exams connect departmental selfishness with this principle.

Correct answer: C. Increase in employee satisfaction and motivation

Fair pay increases employee satisfaction and motivation. In exams connect remuneration with motivation.

Correct answer: D. Proper balance

Fayol emphasised balance between centralisation and decentralisation according to situation. In exams remember the word balance.

Correct answer: A. A clear line of authority and communication is created

Scalar chain clarifies hierarchy and communication. In exams connect hierarchy with scalar chain.

Correct answer: B. Order

Order requires every thing to have a fixed place. In exams connect missing material with order principle.

Correct answer: C. Equity

Equity is linked with respect justice and kindness. In exams connect respectful treatment with equity.

Correct answer: D. Stability of tenure of personnel

The direct answer is D, Stability of tenure of personnel. This principle says that employees should not be changed or removed unnecessarily and should be allowed to remain long enough to gain experience. The reasoning is: long-term retention gives workers time to learn the job; experience and practical knowledge accumulate; when experienced workers stay, organisational knowledge is preserved and passed on; therefore the principle shown is stability of tenure. Option A, Initiative, concerns employee suggestions and freedom to make plans, not length of employment. Option B, Scalar chain, concerns the line of authority and communication, not retention. Option C, Centralisation, concerns where decision-making power is located, not whether staff remain in the organisation. Option D is correct because retaining personnel protects experience, skills, and institutional memory. Do not confuse stability of tenure with permanent employment in every circumstance; the exam idea is avoiding unnecessary frequent turnover.

Correct answer: A. Creativity and enthusiasm may increase

Initiative makes employees creative and participative. In exams connect better method suggestion with initiative.

Correct answer: B. Encouraging division and factionalism among employees

Fayol’s principle of esprit de corps means maintaining team spirit, unity and harmony in an organisation. Encouraging division and factionalism weakens cooperation and common purpose; therefore, option B is against this principle. Shared goals, cooperation and a sense of ‘we’ support esprit de corps. Exam tip: remember esprit de corps as team spirit and organisational unity.

Correct answer: C. Division of work

Allocating work according to expertise is division of work. In exams connect expertise based allocation with division of work.

Correct answer: D. Authority and responsibility

Authority and responsibility should be balanced. In exams treat authority with accountability as the correct situation.

Correct answer: A. Rules are clear and applied equally to everyone

Healthy discipline comes from clear and fair rule following. In exams connect fair rules with discipline.

Correct answer: B. Employee confusion is reduced and responsibility remains clear

According to Fayol’s principle of unity of command, each employee should receive orders from only one superior. This prevents conflicting instructions, reduces confusion, and makes responsibility clear. Option A describes the opposite situation, as orders from several superiors can create confusion. Exam tip: remember unity of command as ‘one employee—one superior.’

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

Personal convenience should not be above organisational and safety interest. In exams connect safety versus personal comfort with general interest.

Correct answer: C. Fair and satisfactory

The governing concept is Fayol’s principle of remuneration of employees. Remuneration means the payment or reward received by employees for their work. Fayol argued that compensation should be fair to employees and satisfactory for both employees and the organisation, while also considering factors such as the value of work, prevailing wage rates, and the organisation’s ability to pay. Therefore, option C is correct. A secret and biased system in option A can damage trust and morale. Unclear or irregular payment in option B creates insecurity and reduces motivation. Option D is wrong because remuneration is a reward for work, not a punishment mechanism. Fair pay supports satisfaction, cooperation, and stable employee relations.

Correct answer: D. Balance of centralisation and decentralisation

Too much decentralisation can weaken control. In exams remember balance between control and initiative.

Correct answer: A. It weakens formal authority and the communication system

The governing concept is Fayol’s scalar chain, which establishes a formal line of authority and communication from the highest managerial level to the lowest. If employees or managers bypass this chain without a genuine reason, messages may lose clarity, accountability may become uncertain, and established authority relationships may be weakened. Thus, option A is correct. Option B refers to remuneration, option C refers to order, and option D is associated more closely with esprit de corps. Fayol did recognise the gang plank as an emergency shortcut, but it is a controlled exception rather than permission to ignore the chain whenever convenient. Therefore, an unjustified break in the chain is harmful to orderly communication and responsibility.

Correct answer: B. Keeping tools in assigned racks

Material order means things remain at the right place. In exams connect tools at assigned place with material order.