Question

After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority. In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honour her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees.

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.” Identify the principle of Management being followed here:

पर्याय

• Centralization and Decentralisation

• Authority and Responsibility

• Unity of Command

• Unity of Direction

Answer 1

Authority and responsibility

Explanation:

This situation shows the balance between authority and responsibility:

• Authority: Aditi (the owner) has the power to approve higher discounts.
• Responsibility: Salespersons are responsible for offering discounts up to 5%.

Fayol’s principle of Authority and Responsibility states:

Managers must have the authority to give orders, and they must take responsibility for the results.