Question 1:

The directors of Bhupender Ltd. an organisation manufacturing computers want to double the sales & have given this
responsibility to their sales manager. The sales manager has no authority either to increase the sales expenses or appoint new
salesman. Hence he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain in brief,
the relevant principle in support of your answer.
Answer 1:
No, the sales manager is not responsible because he has no authority either to increase the sales expenses or appoint new
salesmen. In this case, the principle of ‘Parity of Authority and Responsibility is violated’.
Authority means the right to orders & obtain obedience. There are two types of authority (a) Official authority i.e. authority to
command and (b) Personal authority which is the authority of the individual manager. Responsibility means obligation to
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perform the job assigned on time. Fayol suggested that there must be balance between authority and responsibility. Giving
authority without responsibility may lead to irresponsible use of authority. So an organization should build safeguards against
abuse of managerial power.

Question 2:
Sita and Geeta are typists in a company having same educational qualifications. Sita is getting ₹ 3000 per month and Geeta
₹ 400 per month as salary for the same working hours. Which principle of management is violated in this case? Name and
explain the principle.
Answer 2:
Principle of Equity - The principle of ‘Equity’ emphasizes kindliness and justice in the behaviour of managers towards
works. According to Fayol, employees can be made to put in their best only when they are given kind, fair and just
treatment

Question 3:
The production manager of Bharat Ltd. instructs a salesman to go slow in selling the product, whereas the marketing
manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case? State
the consequences of violation of this principle.
Answer 3:
Unity of Command
Consequences of Violation - If an employee gets orders from two superiors at the same time i.e., principle of unity of
command is violated.
> authority is undermined
> discipline and order is disturbed
> stability is threatened
> conflict among superiors
> loyalty of employee is divided
> Employees will remain in confusion regarding whose tasks to be done. He will have option for excuses.

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Question 4:
If an organization does not provide the right place for physical & human resources in the organization, which principle is
violated? What are the consequences?
Answer 4:
Principle of order
Consequences - Violation of material order leads to wasteful movement of materials & tools. If social order is violated, it
may not be easy to contact the needed employee.

Question 5:
Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both are
working hard and happy with their employer. Salman had the habit of backbiting and wrong reporting about his colleagues to
impress his boss.
All the employees in the organisation knew it. At the time of performance appraisal Nikita was judged better than Salman.
Even then their boss, Mohammad Sharif decided to promote Salman stating that being a female Nikita will not be able to
handle the complications of higher post.
> Identify and explain the principle of management which was not followed by this company. > Identify the values
which are being ignored by the company.
Answer 5:
> The principle violated is equity. It advocates that there should be no discrimination against anyone on account of sex,
religion, language, caste, belief and nationality etc. it emphasizes kindliness and justice in the behaviour of manager
towards their workers to ensure loyalty and devotion.
> The values which are being ignored are - Good human behaviour because ‘Salman had the habit of backbiting and
wrong reporting about his colleagues to impress his boss.’ Gender equality because ‘their boss decided to promote
Salman stating that being a female Nikita will not be able to handle the complication of higher post.’

Question 6:
Explain the following principles of management given by Fayol.
> Unity of command
> Order
Answer 6:
> Unity of command
 There should be one and only one boss for every individual employee.
 If an employee gets order from two superior at the same time, the principle is violated.
 Consequences of violation: authority is undermined, discipline is in jeopardy, order is disturbed, and stability
is threatened.
> Order
 People and material must be in suitable places at appropriate time for maximum efficiency.
 It means ‘a place for everything (everyone) and everything (everyone) in its (his/her) place’ i.e. orderliness.
 Benefits of the principle: no hindrance in the activities of business, increased productivity and efficiency.

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Question 7:
The production manager of an automobile company asked the foreman to achieve a target production
of 200 scooters per day. But he did not give him the authority to requisition tools and materials from
the stores department. Can the production manager blame foreman if he is not able to achieve the desired
target? Explain briefly the principle relating to the situation.
Answer 7:
The principle is authority and responsibility. No, the production manager cannot blame the foreman
because he did not give him the authority to requisition tools and material from the stores department
since he has no authority, he cannot fulfil his responsibility.

Question 8:
ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of
work responsibility between worker and management. The management even takes workers into
confidence before taking important decisions.
> State the principle of management described in the above para.
> Identify any two values which the company want to communicate to the society.
Answer 8:
> The principle of Taylor described in the above para is cooperation, not individualism. It states
that there should be complete cooperation between workers and the management. Competition
should be replaced by cooperation.
> Values which the company wants to communicate with society. Good behaviour in human
interaction. Concern for the environment.

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