Question

A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate.

Which principle of management has been violated in this situation?

विकल्प

• Unity of command

• Unity of direction

• Subordinating personal interest to general interest

• Equity

Answer 1

Subordinating personal interest to general interest

Explanation:

The manager put personal/family interest above the company’s interest by buying 500 tonnes from his son at above-market price, creating a conflict of interest and harming the organisation’s welfare. Managers must place organisational goals above private gains.