Explain Fayol’s principles of ‘equity’ and ‘order’ with examples. [CBSE 2011]
Answer: Fayol’s Principle of Equity: This principle tells that managers should treat their subordinates in a just and kind manner so that they develop a feeling of dedication and attachment for their work. For example, a labourer completes 10 units of goods in a day. Another labourer who happens to be a relative of the supervisor completes 8 units but both get equal remuneration. This violates the principles of equality. The second labourer should get less remuneration than the first one. Fayol’s Principle of Order: According to Fayol every enterprise should have two different orders– Material Order for Physical Resources and Social Order for Human Resources. Keeping the physical resources in order means that ‘a proper place for everything and everything in its right place’. Similarly, keeping the human resources in order means ‘a place for everyone and everyone in his appointed places’.