Raj at joined as a CEO of Bharat Ltd., a firm manufacturing Computer h

1.	Raj at joined as a CEO of Bharat Ltd., a firm manufacturing Computer hardware. On the first day he addressed the employees. He said that he believed that a good company should have an employee suggestion system and he wished to minimise employee turnover to maintain organisational efficiency. He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with sternly to send the message that everyone was equal in the eyes of management. Also that he would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimise need for using penalties. He told all present that the interests of the organisation should take priority over the interests of any one individual employee. Identify and briefly explain any four principles of management given by Fayol, which Raj at highlighted in his address to the employees.
Answer» Following are the principles of management highlighted by Rajat in his address : (i) Initiative – Initiative is the power of thinking out a plan and ensuring its successful implementation. It stimulates human endeavour. In other words, initiative means eagerness to initiate action without being asked to do so. Employees at all levels should be allowed to take initiative in work related matters. In an organisation, initiative on the part of its employees can become a great source of strength for it. It indicates that subordinates should be encouraged to make and execute plans within the authority given to them. (ii) Discipline – Discipline in the context of management means obedience, proper conduct in relation to others and complying with the rules and regulations of the organisation. Smooth running of business requires discipline. Discipline is required not only on the part of workers but also on the part of management. It is facilitated if there are good supervisors at all levels, rules are clear, and penalties are imposed with fairness. (iii) Equity – Principle of equity implies that managers should be fair and impartial while dealing with their subordinates. The principle of equity suggests that similar treatment is assured to people in similar positions. For example, workers performing similar jobs should be paid the same wage rate. Equity is essential to create and maintain cordial relations between managers and subordinates. (iv) Espirit de corps – “Espirit de corps” is the principle of management according to which a manager replaces “I” with “We” in all his conversation with workers. Fayol’s principle of management “Espirit de corps” means that there should be mutual understanding and team spirit in the workforce. This will promote harmony in the work group and they will contribute to the maximum. (v) Stability of personnel – “Employee turnover should be minimised to maintain organisational efficiency,” according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure. (vi) Subordination of individual interest to general interest – In all situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person.

Raj at joined as a CEO of Bharat Ltd., a firm manufacturing Computer hardware. On the first day he addressed the employees. He said that he believed that a good company should have an employee suggestion system and he wished to minimise employee turnover to maintain organisational efficiency. He informed all employees that he would ensure that all agreements were clear, fair and there was judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with sternly to send the message that everyone was equal in the eyes of management. Also that he would want to promote a team spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team members and eventually minimise need for using penalties. He told all present that the interests of the organisation should take priority over the interests of any one individual employee. Identify and briefly explain any four principles of management given by Fayol, which Raj at highlighted in his address to the employees.

Answer»

Following are the principles of management highlighted by Rajat in his address :

(i) Initiative – Initiative is the power of thinking out a plan and ensuring its successful implementation. It stimulates human endeavour. In other words, initiative means eagerness to initiate action without being asked to do so. Employees at all levels should be allowed to take initiative in work related matters. In an organisation, initiative on the part of its employees can become a great source of strength for it. It indicates that subordinates should be encouraged to make and execute plans within the authority given to them.

(ii) Discipline – Discipline in the context of management means obedience, proper conduct in relation to others and complying with the rules and regulations of the organisation. Smooth running of business requires discipline. Discipline is required not only on the part of workers but also on the part of management. It is facilitated if there are good supervisors at all levels, rules are clear, and penalties are imposed with fairness.

(iii) Equity – Principle of equity implies that managers should be fair and impartial while dealing with their subordinates. The principle of equity suggests that similar treatment is assured to people in similar positions. For example, workers performing similar jobs should be paid the same wage rate. Equity is essential to create and maintain cordial relations between managers and subordinates.

(iv) Espirit de corps – “Espirit de corps” is the principle of management according to which a manager replaces “I” with “We” in all his conversation with workers. Fayol’s principle of management “Espirit de corps” means that there should be mutual understanding and team spirit in the workforce. This will promote harmony in the work group and they will contribute to the maximum.

(v) Stability of personnel – “Employee turnover should be minimised to maintain organisational efficiency,” according to Fayol. Personnel should be selected and appointed after due and rigorous procedure. But once selected they should be kept at their post/position for a minimum fixed tenure.

(vi) Subordination of individual interest to general interest – In all situations the interests of the group/company will supersede the interest of any one individual. This is so because larger interests of the workers and stakeholders are more important than the interest of any one person.

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