Question

A finance manager was asked to pitch an offer to an automobile firm to buy some equity. The CEO and General Manager had different opinions on the percentage of the equity that should be acquired. The finance manager was in a dilemma and could not close the deal. Which principle violated here?

• A. Unity of Command
• B. Unity of Direction
• C. Subordination of individual interest to general interest
• D. Initiative

Hint:

\[ \mathrm{Unity\ of\ Command} \] means: \[ \mathrm{One\ Employee\ \rightarrow\ One\ Boss} \]

Answer 1

The Correct Option is A

Concept: According to Henri Fayol, the principle of: \[ \mathrm{Unity\ of\ Command} \] states that an employee should receive orders from only one superior. If instructions come from multiple superiors, confusion and conflict arise.

Step 1: Understand the situation.
The finance manager received different opinions from:
• CEO
• General Manager This created confusion and prevented decision-making.

Step 2: Identify the violated principle.
Since the employee was receiving conflicting instructions from more than one superior, the violated principle is: \[ \boxed{\mathrm{Unity\ of\ Command}} \]

Step 3: Analyze the remaining options.
Unity of Direction Refers to one plan for one group of activities. \[ \Rightarrow \mathrm{Incorrect} \] Subordination of individual interest to general interest Related to prioritising organisational goals over personal goals. \[ \Rightarrow \mathrm{Incorrect} \] Initiative Means encouraging employees to take suggestions and actions. \[ \Rightarrow \mathrm{Incorrect} \]

Step 4: Identify the correct option.
Therefore, the principle violated is: \[ \boxed{\mathrm{Unity\ of\ Command}} \] Hence, the correct answer is: \[ \boxed{\mathrm{(A)}} \]