Question

1. After completing a course in fashion designing, Nancy opens a garment
store. She employs seven persons in her store. For carrying out the jobs in an
effective and efficient manner, she divides the work into small tasks and each
employee is made to perform a given job repeatedly. This leads to
specialisation. The sales persons are allowed to offer a discount of 5% to
customers and if any customer asks for more discount, then such a request is
handled by Nancy herself.To handle extra work in the initial months, Nancy
asked three workers to put in extra hours and promised them that once
returns from the business pick up, they would be rewarded extra bonus. After
six months when the business started doing well, she paid cash bonus to
each of these employees. However, when Ritu, a sales girl, asked for Diwali,
Nancy denied it but when Tina, another sales girl, asked for leave for
Christmas, it was granted to her.
1. Identify the principle of management in the above case.
i.
Centralisation and Decentralisation
Subordination of individual interest to general interest
Initiative
Discipline
іі.
iv.
O a) i, ii, iii
O b) ii, iii, iv
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O d) i, ii, iii, iv​

Answer 1

Answer:

O a) i, ii, iii

Explanation:

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Answer 2

Concept

Decision-making and management activities are guided by these management concepts. They are developed from observations and analysis of the situations that managers deal with in the real world.

Given

Nancy opens a garment store. She employs seven persons in her store. For carrying out the jobs in an effective and efficient manner, she divides the work into small tasks and each employee is made to perform a given job repeatedly. This leads to specialization. The sales persons are allowed to offer a discount of $5$% to customers and if any customer asks for more discount, then such a request is handled by Nancy herself. To handle extra work in the initial months, Nancy asked three workers to put in extra hours and promised them that once returns from the business pick up, they would be rewarded extra bonus. After six months when the business started doing well, she paid cash bonus to each of these employees. However, when Ritu, a sales girl, asked for Diwali, Nancy denied it but when Tina, another sales girl, asked for leave for Christmas, it was granted to her.

Find

Principle of management in this case.

Solution

In this case principle of management is Centralization and Decentralization, Subordination of individual interest to general interest.

Hence, the correct alternative is a) i, ii, iii.

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