Question

Which of the following is NOT Fayol's principle of management?

• A. Unity of Command
• B. Scalar Chain
• C. Unity of Interests
• D. Equity of Interest

Hint:

The 14 principles of Henri Fayol are classical pillars of management.
Remember that the principle is simply "Equity," and any variation like "Equity of Interest" is a distractor.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Henri Fayol, known as the father of modern operational management, proposed 14 fundamental principles of management in his classical administrative theory to improve organizational efficiency and coordination.

Step 2: Detailed Explanation:
Let us review Henri Fayol's 14 principles of management to identify the incorrect term:
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command: An employee should receive orders from only one superior.
5. Unity of Direction
6. Subordination of Individual Interest to General Interest (often simplified as Unity of Interest).
7. Remuneration
8. Centralization and Decentralization
9. Scalar Chain: The formal line of authority from top management to the lowest rank.
10. Order
11. Equity: Kindliness and justice in dealing with employees to secure their loyalty.
12. Stability of Tenure of Personnel
13. Initiative
14. Esprit de Corps
Among the options, "Equity of Interest" is not a principle formulated by Fayol.
Fayol's actual principle is simply "Equity," which focuses on fair treatment of personnel, and "Subordination of individual interest to general interest" focuses on collective goals.
Combining them into "Equity of Interest" represents an incorrect, non-existent management principle.

Step 3: Final Answer:
Equity of Interest is NOT one of Fayol's principles of management.