Principles of Business Management

Who gave the 14 principles of management?

• Frederick Taylor

• Adam Smith

• Sir Henry Fayol

• Max Weber

What is the first principle of management according to Sir Henry Fayol?

• Centralization and Decentralization

• Division of Work

• Unity of Command

• Authority and Responsibility

What does the principle of 'Unity of Command' suggest?

• All employees should be treated equally

• Employees should receive fair compensation

• One employee should report to multiple managers

• One employee should only report to one manager

What principle states that the interest of the organization should take precedence over individual interests?

• Initiative

• Stability of Personnel

• Subordination of Individual Interest to General Interest

• Equity

According to Fayol, what should be the basis of remuneration for employees?

• Their position in the company

• Their performance and effort

• Their seniority in the company

• Their personal needs

What does 'Scalar Chain' refer to?

• The remuneration system

• The process of decentralization

• The principle of equity

• A clear line of authority in the firm

What principle emphasizes the importance of treating all employees fairly and impartially?

• Discipline

• Unity of Direction

• Order

• Equity

What is the principle of 'Esprit de Corps' about?

• Maintaining a sense of pride and mutual loyalty within the organization

• Ensuring that each employee has a clear reporting line

• Dividing work among individuals to increase efficiency

• Balancing centralization and decentralization

What does the principle of 'Order' suggest?

• There should be a place for everyone and everyone in their place

• Order in the workplace is not important

• Employees should follow a strict order of command

• Orders should be given by the top management only

What is the significance of 'Initiative' as a management principle?

• It is about maintaining discipline within the organization

• It encourages employees to come up with and execute their own ideas

• It refers to the centralization of authority

• It deals with the distribution of rewards