A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate, which principle of management has been violated by this situation?
a = unity of command
Answers
Answer:
The starting point for determining the quality of the materials needed in an organisation is the end use, i.e., what is intended to be done or accomplished.
We then have to establish a specification and this is what quality is all about. A full and complete quality specification is an essential part of a purchase contract.
The quality of a material has a direct relationship with its end use. In other words, an inappropriate quality would mean that the end product is either too good or too bad for a particular purpose. Both these have a direct effect on costs and competitiveness of the end product. In one case, some extra cost has to make the quality more than is necessary and, in other case, the quality of the incurred product would suffer.
We can express quality in various ways, i.e., dimensions, weights, and measures,