BUSINESS ADMINISTRATION
PRINCIPLES AND PRACTICE OF MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Division of Work
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Subordination of Individual Interests to the General Interest
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Centralization
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Detailed explanation-1: -Subordination of Individual Interests: This principle implies that the interests of one person should not take priority over the interests of the organisation as a whole but the other way around. The goals of the organisation should take precedence over the interests on individual employees.
Detailed explanation-2: -Subordination of Individual Interests to General Interest is one of Fayol’s fourteen administrative principles where any individual’s interest that conflicts with an organizational interest must be subordinated to the interests of the organization.
Detailed explanation-3: -Subordination of Individual Interest Example Suppose an employee would like to obtain a big raise of his salary, beyond what what is usual for his job. Doing so would not be in the general interest of the firm, as it would lose it’s competitiveness if it conitinues to pay too much to its employees.
Detailed explanation-4: -In order to have an organization function well, Henri Fayol indicated that personal interests are subordinate to the interests of the organization (ethics). The primary focus is on the organizational objectives and not on those of the individual.