Question

Hitesh started a garment manufacturing company recently. However, he soon began facing several problems like targets not met, conflicts among managers, high labour turnover, etc. He hired a management consultant to find out what was going wrong. The consultant conducted investigations and gave the following observation:
(ii) Promotions were given only to women employees. Other employees did not get equal opportunities in the company to rise.
Identify and explain the principle of management given by Fayol which is not being followed in Hitesh’s company.

Hint:

Equity = Justice + Kindliness.
It is the cornerstone of employee loyalty. A fair workplace is a stable workplace.

Answer 1

Concept:

• Management principles emphasize that a productive workplace is built on the foundation of justice and fair play.

• Employees are most motivated and loyal when they perceive that the organization treats everyone equally, regardless of personal characteristics.
Step 1: Identify the discriminatory behavior
The consultant observed that the company’s promotion policy was biased in favor of one gender.
By excluding others from the opportunity to rise within the company, Hitesh's management is practicing unfair discrimination.
This is a direct violation of the Principle of Equity.

Step 2: Define the Principle of Equity
Fayol’s Principle of Equity emphasizes that managers should be kind and just towards their workers.
This principle demands that there should be no discrimination against anyone on account of sex, religion, language, caste, belief, or nationality.
Equity does not mean equal salary for everyone, but rather equal treatment and equal opportunity under similar circumstances.

Step 3: Relate the violation to organizational symptoms
The case mentions "high labour turnover" as a major problem for Hitesh.
When employees feel that the "rules of the game" are unfair or that merit is ignored in favor of bias, they lose their devotion and loyalty to the firm.
Applying Equity would ensure a sense of fairness, which is essential for retaining talented staff and reducing turnover rates.