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Case Problems · Q11

Q.A garment factory pays two workers doing the exact same job, under the same conditions and putting in the same effort, very different wages — one significantly more than the other, based purely on the supervisor's personal preference. This has caused resentment on the shop floor. Which principle of management has been violated, and what should the factory do to correct it?

Maharashtra MsbshseTextbookSubjectiveImportance★★★★★
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The principle of management violated here is Equity, as given by Fayol. Equity requires that managers treat all employees with fairness, kindness and justice, without favouritism, so that employees feel they are being dealt with impartially and remain motivated and loyal.

In this case, two workers doing the exact same job, under the same conditions, and putting in the same effort, are being paid very different wages — not because of any genuine difference in skill, seniority, output or responsibility, but purely because of the supervisor's personal preference. This is a textbook example of favouritism, which directly violates the principle of equity, and it has understandably caused resentment among the workers who can see the unfairness.

This situation is also connected to Fayol's principle of Remuneration of Employees, which requires that wages be fair and reasonable and satisfactory to employees — an arbitrary, favouritism-based pay gap for equal work fails this standard too, since remuneration ceases to reflect any fair or transparent basis. …

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