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 observations : (i) In Production Department, workers were receiving instructions from both, the Production Manager and the Marketing Manager. As a result, there was a lot of confusion regarding tasks to be done. (ii) Promotions were given only to women employees. Other employees did not get equal opportunities in the company to rise. Identify and explain the two principles of management given by Fayol which are not being followed in Hitesh’s company.

• A. Unity of Direction and Discipline
• B. Unity of Command and Equity
• C. Division of Work and Scalar Chain
• D. Unity of Command and Centralisation

Hint:

Key triggers for Fayol's Principles: - Dual reporting or having two bosses \(\rightarrow\) Violates Unity of Command. - Discrimination, bias, or unfair treatment regarding rewards or opportunities \(\rightarrow\) Violates Equity.

Answer 1

The Correct Option is B

Concept: Henri Fayol developed 14 general principles of management to guide organizational design and administration. When these principles are ignored, it can lead to operational issues like employee confusion, internal conflicts, low motivation, and high labor turnover, as seen in Hitesh’s company. Step 1: Analysis of the First Violation: Unity of Command
Identification: The observation that "workers were receiving instructions from both, the Production Manager and the Marketing Manager. As a result, there was a lot of confusion..." confirms that the principle of Unity of Command was violated. Explanation:

• According to Fayol’s principle of Unity of Command, an individual employee should receive orders and instructions from only one superior at a time and should be accountable to only that superior.

• If an employee receives instructions from two or more managers simultaneously, it creates confusion, makes it difficult to prioritize tasks, and allows employees to play bosses against each other to evade responsibilities. It also undermines authority and can cause friction between managers.

• To fix this, the workers in the Production Department should only take operational orders from the Production Manager.

Step 2: Analysis of the Second Violation: Principle of Equity
Identification: The observation that "Promotions were given only to women employees. Other employees did not get equal opportunities..." confirms that the principle of Equity was violated. Explanation:

• Fayol’s principle of Equity emphasizes that managers should treat all subordinates with kindness, fairness, and justice.

• There should be no discrimination based on gender, religion, caste, race, language, or nationality when making organizational decisions, such as salary hikes, performance appraisals, or promotions.

• Promoting employees based on gender rather than merit violates this principle. It creates resentment among excluded groups, lowers morale, and contributes to a high labor turnover rate.