Q.Explain the following term/concept:
Principle of Remuneration

The correct word is authority. Fayol's principle of Scalar Chain describes the formal, unbroken line of authority stretching from top management down to the lowest rank, along which official communication travels.

Scalar chain is one of Henri Fayol's fourteen principles of management. It states that there should be a clear, continuous line of authority connecting every position in the organisation from the top to the bottom. This chain acts as the official route through which orders and instructions flow downward and information and feedback flow upward, so that communication remains orderly and no level of management is skipped.

• Following the chain avoids confusion, fixes responsibility clearly and maintains discipline in the flow of communication. …

The statement is False. The 14 principles of management were given by Henri Fayol; F. W. Taylor is known for Scientific Management, not for the 14 principles.

Two pioneers shaped modern management thought, and their contributions must not be confused:

• Henri Fayol — a French management thinker who gave the 14 principles of management (such as Division of Work, Authority and Responsibility, Discipline, Unity of Command, Scalar Chain, Espirit de Corps, etc.). He is called the father of modern management. …

By Fayol's principle of Unity of Command, an employee should get orders from one superior only.

Henri Fayol gave 14 principles of management. One of the most important is Unity of Command, which states that an employee should receive orders and instructions from only one boss (superior) at a time.

Why one superior and not many?

• If a worker reports to many superiors, he may receive conflicting instructions and will not know whom to obey.
• It leads to confusion, overlapping of authority and escape of responsibility (each boss blames the other).
• With a single superior, responsibility is clearly fixed and discipline is easy to maintain. …

The underlined word should be Centralization, because it means concentrating authority at the top.

The definition given — 'concentration of powers and authorities at a specific position' — is the definition of Centralization, not Decentralization.

• Centralization: Authority and power to take decisions are concentrated in the hands of top management / a specific position. …

Henri Fayol is called the father of modern (administrative) management; F.W. Taylor is the father of scientific management.

Henri Fayol studied management from the viewpoint of top-level administration. He divided business activities into six groups, listed the five functions of management (planning, organising, commanding, coordinating, controlling) and gave 14 principles of management.

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