(d) Scalar chain

Positive Effect: This will produce quicker results in sorting out problems in one or two sittings and avoid lengthy time procedure, danger of miscommunication, distortion or even danger of being killed in the process.

(e) Equity

Positive Effect: If similar treatment is assured to people performing similar jobs and the management is always kind, fair and just in its dealing with its subordinates, it earns the respect, loyalty and devotion of the employees and they are motivated to put in their best efforts.

(f) Division of work:

Positive Effect: A person holding the same post and doing the same job will over time specialise in that job, improve his performance, efficiency and result in increased output

An organisation follows the principles of management. What are the ADVERSE EFFECTS of each of the following principles of management on the organisation? – V. Important

(a) Unity of command

Adverse Effect: If this principle is violated it may lead to confusion, indiscipline, delay in performance, difficulty in satisfying seniors and difficulty in fixing responsibility. Therefore to avoid this confusion, dual subordination should be ruled out.

(b) Unity of order

Adverse Effect: When there is no arrangement for things and people, the organisation will not be able to achieve its objectives in time. Effective utilisation of physical and human resources will not be possible.

(c) Stability of tenure of personnel

Adverse Effect: If this principle is violated, it will lead to high labour turnover rate and will increase the cost of selection and training of the employees

(g) Division of work

Adverse Effects: If this principle is violated it leads to

(a) inefficiency (b) delay in work (c) increased costs (d) decreased output.

(h) Remuneration of personnel

Adverse Effects: If fair remuneration is not paid to the workers, it will create a sense of dissatisfaction among workers leading to various problems such as trade unions, strikes, high labour turnover rate, etc

Explain Fayol’s view on REMUNERATION OF PERSONNEL? – 2 marks

• In Fayol’s view, remuneration of employees should be fair and reasonable which will satisfy both employers and employees.
• It will stimulate the workers to work more and better.
• Wages should be determined on the basis of
  • work assigned
  • cost of living
  • financial position of the business; and
  • average wage rate for similar work in the industry.
• Adverse Effects: If fair remuneration is not paid to the workers, it will create a sense of dissatisfaction among workers leading to various problems such as trade unions, strikes, high labour turnover rate, etc.