Question 6: A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?
Answer:
Mr. Rathore had violated the principle of subordination of individual interest to general interest. By providing the supply order to his cousin at a higher price per unit rather than the firm’s usual supplier who was willing to provide the goods at lower rates for the order he was preferring his own interest instead of general interest. And as a result he was achieving his personal goal but not the organizational goal.
Following are the positive impacts of following the above principle are:
- This principle helps in achieving the organizational goals.
- This principle provides coordination between individual and organizational goals.
- This principle also helps in maintaining harmony in the organization.
- And if this principle is followed in the organization then it leads to increase the status of the manager and the organization in the eyes of the workers.
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