XYZ is a mobile manufacturing company. The manager, Mr. Arjun, notices that the production department often ignores instructions from the finance department. There is confusion about authority and workers receive orders from more than one superior. Also, some employees come late

Question

XYZ is a mobile manufacturing company. The manager, Mr. Arjun, notices that the production department often ignores instructions from the finance department. There is confusion about authority and workers receive orders from more than one superior. Also, some employees come late and do not follow rules properly. To improve efficiency, Arjun decides to make a clear chain of command, discipline rules and equal treatment for all workers. (a) Identify and explain any three principles of management by Henri Fayol that are being violated or applied in the above case. (b) How can following these principles improve efficiency in the organization?

Accepted Answer

>

> [!TLDR]
> XYZ's case shows violations of Unity of Command and Discipline, which Arjun is fixing by also applying Scalar Chain and Equity — restoring these principles will improve organisational efficiency.
>
> **(a) Three principles of Fayol involved:**
>
> 1. **Unity of Command (violated):** This principle states that an employee should receive orders from one superior only. In XYZ, the production department ignores instructions from finance, and workers receive orders from more than one superior, creating confusion about who to follow — a clear violation of Unity of Command, which causes conflicting instructions and divided loyalty.
>
> 2. **Discipline (violated, now being enforced):** Discipline requires obedience to organisational rules, respect for authority, and proper conduct by all employees. Employees 'coming late and not following rules properly' show a clear breakdown of discipline. Arjun's decision to establish 'discipline rules' is a direct corrective application of this principle to restore order.
>
> 3. **Equity (being applied):** Equity means treating employees with fairness, kindness and justice, without discrimination. Arjun's plan for 'equal treatment for all workers' reflects this principle — by ensuring no favouritism, employee morale and trust in management are likely to improve.
>
> (A fourth closely related principle worth noting: **Scalar Chain** — Arjun's decision to establish 'a clear chain of command' directly applies this principle, which calls for a clear line of authority/communication running from the top to the bottom of the organisation.)
>
> **(b) How following these principles improves efficiency:**
> - Restoring **Unity of Command** removes confusion over whose instructions to follow, preventing wasted effort, conflicting work, and delays caused by contradictory orders from finance and production. …

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