WORKSHEET 5

CHAPTER 2 (Principles of Management Case Studies)

MULTIPLE CHOICE QUESTIONS

Q1. The principles of management are said to be flexible as:
a) they aim at influencing behaviour of human beings
b) they are general guidelines to action, but do not provide ready-made solutions to
management problems.
c) they can be modified by the manager when the situation so demands.
d) their application is dependent upon the prevailing situation at a particular point of time.
Q2. “Management principles are not as rigid as principles of pure science.” Which of the following
best describes the given statement?
a) Management principles deal with human behaviour and, thus, are to be applied creatively
given the demands of the situation.
b) Principles of management are formed after research in work situations, which are
technical in nature.
c) Principles of management contribute towards the development of management both as a
science and as an art.
d) None of the above
Q3. The principles are guidelines to action but do not provide readymade, straitjacket solutions to all
managerial problems. This is so because .
a) the application of principles has to be changed as per requirements.
b) real business situations are very complex and dynamic and are a result of many factors.
c) Principles are like different tools serving different purposes, the manager has to decide
which tool to use under what circumstances.
d) All the above
Q4. “The principles of management are not rigid prescriptions, which have to be followed
absolutely.” Which of the following best describes the given statement?
a) Management principles aim at influencing behaviour of human beings.
b) Management principles enable a better understanding of the relationship between human and
material resources in accomplishing organisational purposes.
c) Management principles are flexible and can be modified by the manager when the
situation so demands.
d) None of the above
Q5. The application of principles has to be changed as per requirements. For example, employees deserve
 fair and just remuneration. But what is just and fair is determined by multiple factors. They include
contribution of the employee, paying capacity of the employer and also prevailing wage rate for the
occupation under consideration.
Identify the nature of principles of management highlighted above.

a) General Guidelines
b) Flexible
c) Contingent
d) Mainly behavioural
Q6. Which of the following technique of scientific management violates the principle of Equity?
a) Functional foremanship
b) Standardisation and Simplification of work
c) Differential Piece Wage System
d) Method Study
Q7. Same battery can be used in different mobile phones of a particular brand. This is an example of which
of the following techniques of scientific management?
a) Standardisation of work
b) Method Study
c) Simplification of work
d) Functional Foremanship
Q8. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work
is described by this sentence under functional foremanship?
a) Route Clerk
b) Repair Boss
c) Gang Boss
d) Instruction Card Clerk
Q9. Which one of the following statements best describes ‘Mental Revolution’ as described by F.W.
Taylor?
a) It implies change of attitude.
b) The management and workers should not play the game of one upmanship.
c) Both management and workers require each other.
d) Workers should be paid more wages.
Q10. In an organisation, each person should be scientifically selected. Then work assigned should suit his
physical, mental and intellectual capabilities. To increase efficiency, they should be given the required
training. Efficient employees would produce more and earn more. Which of the following principle
of management is highlighted above?
a) Science, not rule of thumb
 b) Division of work.
c) Development of each and every person to his/her greatest efficiency and
prosperity.
d) Remuneration of employees.
Q11. A manager should have the right to punish a subordinate for wilfully not obeying a legitimate
order but only after sufficient opportunity has been given to a subordinate for presenting her/his case.
Identify the principle of management highlighted above.
a) Discipline
b) Equity
c) Authority and Responsibility
d) Stability of Personnel
Q12. Sanak and Gagan started their career in Wales Limited (a printing press) after going through a
rigorous recruitment process. Since they had no prior work experience, the firm decided to give them
one year to prove themselves. The principle of management followed by Wales Limited is
_________.
a) Authority and Responsibility
b) Discipline
c) Equity
d) Stability of Personnel

Q13. According to Taylor, management should not close its ears to any constructive suggestions made
by the employees. They should be rewarded for their suggestions which results in substantial
reduction in costs. They should be part of management and, if any important decisions are taken,
workers should be taken into confidence. At the same time workers should desist from going
on strike and making unreasonable demands on the management. Both should realise that they need
each other. In fact, when there will be open communication system and goodwill there will be no
need for even a trade union. Paternalistic style of management, whereby the employer takes care of
the needs of employees, would prevail as in the case of Japanese companies. Identify the principle
of scientific management highlighted in the above paragraph.
a) Science, not rule of thumb
b) Harmony, not discord
c) Cooperation, not individualism
d) Development of each and every person to his/her greatest efficiency

Q14. In the factory set-up / system ,Taylor concentrated on improving the performance of the managerial
figure with whom the workers are in face-to-face contact on a daily basis. He is the pivot around whom
 revolves the entire production planning, implementation and control. In fact, Taylor identified a list
of qualities of that person such as intelligence, education, tact, grit, judgement, special
knowledge, manual dexterity, and energy, honesty and good health. Taylor found that no single
person could fit them all. This prompted him to suggest a technique of scientific management
which is an extension of the principle of division of work and specialisation to the shop floor. This
concept was extended to the lowest level of the shop floor. Identify the technique of scientific
management discussed in the above paragraph.
a) Functional foremanship
b) Standardisation and Simplification of work
c) Differential Piece Wage System
d) Method Study
Q15. According to Taylor, even a small production activity like loading pigs of iron into boxcars can be
scientifically planned and managed. This can result in tremendous saving of human energy as well as
wastage of time and materials. The more sophisticated the processes, greater would be the savings.
In the present context, the use of internet has brought about dramatic improvements in internal
efficiencies and customer satisfaction. Identify the principle of management highlighted above.
a) Science, not rule of thumb
b) Harmony, not discord
c) Cooperation, not individualism
d) Development of each and every person to his/her greatest efficiency

Q16. Appliances India Ltd is engaged in manufacturing and distribution of home appliances since
1987. It has a good name in the market as the company is producing good quality appliances. It has
separate departments for manufacturing, finance, sales, maintenance services and technical services
to achieve specialisation. Since the areas of operation of the company have increased and customers
have become more demanding, the company decided to modify the existing principle of management
to meet the changing requirements of the environment. The general principle of management
which the company wants to modify to meet the changing requirements is .
a) Unity of command
b) Unity of direction
c) Authority and Responsibility
d) Division of work
 Q17. Loyd Co. Ltd. manufactures motorcycles and cars. It has two separate divisions for both of them.
Each division has its own incharge, plans and execution resources. On no account the working of
two divisions overlap. Which principle of management is followed by Loyd Co. Ltd.?
a) Unity of command
b) Unity of direction
c) Authority and Responsibility
d) Division of work
Q18. Nikita and Salman completed their MBA and started working in a multinational company
at the same level. Both are working hard and are happy with their employer. Salman had the
habit of backbiting and wrong reporting about his colleagues to impress his boss. All the
employees in the organisation knew about it. At the time of performance appraisal the performance
of Nikita was judged better than Salman. Even then their boss, Mohammed Sharif decided to
promote Salman stating that being a female Nikita will not be able to handle the complications of
a higher post.
Identify the principle of management which was not followed by this multinational company.
a) Equity
b) Initiative
c) Remuneration of Employees
d) Stability of personnel
Q19. Sigma Ltd. is a large company manufacturing electric motors. The company has several
departments- Production, Marketing, Finance and HR. Mr. Shashank, CEO of the company set
the target sale of 10 crore in a month. To increase the sales, the marketing manager, Mr. Ishaan
insists on offering 10% discount to customers. But the finance manager, Mr. Mohak does not
approve such discount as it would mean loss of revenue. Because of dual subordination, the sales
manager, Mr. Anshik could not achieve the sales target. Which principle of management has been
overlooked by this company?
a) Unity of command
b) Unity of direction
c) Authority and Responsibility
d) Division of work
Q20. In a company, management and labour union have entered into an agreement whereby workers have
agreed to put in extra hours without any additional payment to revive the company out of loss. In
return the management has promised to increase wages of the workers when this mission is accomplished.
As per the agreement, the workers worked overtime and within two months, the company’s losses were wiped
out. Soon the company started earning high profits. All this was due to the hard work and commitment of
the workers. But the company denied to increase wages of the workers as per the agreement. Identify
 the principle of management violated in the above case.
a) Authority and Responsibility
b) Esprit De Corps
c) Order
d) Discipline

Q21. For the last two years, Tulip Industries is not functioning smoothly and systematically. The
relations between management and employees are becoming bitter day-by-day. After a complete
analysis, it was observed that employees are not working effectively and efficiently and management is
not fulfilling its commitment of increments and promotions. Which management principle is being
ignored in the given case?
a) Authority and Responsibility
b) Esprit De Corps
c) Order
d) Discipline

Q22. Arun is a salesman in Sunrise Ltd. He did an aggressive research on a new cost saving
advertisement technique and suggested the same to his sales manager. However, the sales manager
did not pay any attention to his suggestion. Which principle of management is being violated by the
sales manager?
a) Equity
b) Initiative
c) Remuneration of Employees
d) Stability of personnel
Q23. Fast Cool Industries (AC manufacturing company) asked its employees to work overtime in
order to meet growing demand of AC in the summer season. However, the employees were
not paid overtime wages for extra time worked by them. As a result, the employees always felt
dissatisfied and it led to unhealthy relationships between the employees and management. Identify
the principle of management not observed by Fast Cool Industries.
a) Equity
b) Remuneration of Employees
c) Discipline
d) Initiative
Q24. Mr. Prakash Chopra, General Manager of M/s Kwality Enterprises (Leather bags manufacturing
company) retains complete authority over all the activities of the business. No decision-
making power is given to the subordinates. As a result, Mr. Prakash is always engaged in
day-to-day operational activities and is unable to concentrate on core issues of the company.
 Identify the management principle violated by Mr. Prakash Chopra.
a) Authority and Responsibility
b) Initiative
c) Equity
d) Centralisation and Decentralisation
Q25. Mr. Kapoor, Finance manager of ABC Ltd. applied for leave to attend a family function in
Amritsar. The director of the company requested him to cancel his leave as there is an important
meeting schedule on that date. Mr. Kapoor immediately agreed and cancelled his trip as he thought
that attending the meeting was more important for company’s benefit. Which principle of
management is highlighted in this case?
a) Unity of command
b) Order
c) Initiative
d) Subordination of Individual Interest to General Interest
Q26. Raghav, a manager, expects his subordinates to adapt to the new environment and working
conditions without giving them time to settle down. Identify the principle of management
overlooked by the manager.
a) Unity of command
b) Discipline
c) Stability of Personnel
d) Subordination of Individual Interest to General Interest

Q27. Pranav, a manager, expects his subordinates to work for the happiness and pleasure of being in
the organisation. Identify the principle of management violated by the manager.
a) Discipline
b) Remuneration of Employees
c) Equity
d) Authority and Responsibility

Q28. The sales manager assigned a target of selling 40 RO Water Purifiers in a month to a group
of 10 sales executives. They mutually decided to sell 4 purifiers each. However, after selling 1
purifier, Kshitij (one of the sales executive) met with an accident. The other sales executives did
not pay any attention to the remaining target of Kshitij and concentrated on their individual sales target.
At the end of the month, only 37 purifiers could be sold. Identify the principle of management
violated in the given case?
a) EspritDe Corps
b) Centralisation and Decentralisation
c) Initiative
 d) Division of work

Q29. Mr. Gopal, HR Manager of a company, selects each person scientifically, assigns work to each employee
according to her/his physical, mental and intellectual capabilities. He also gives them the required training so
that they may produce more and earn more. This will ensure their prosperity for both company and workers.
Identify the principle/technique of scientific management highlighted in the above case.
a) Method Study
b) Harmony, not discord
c) Cooperation, not individualism
d) Development of each and every person to his/her greatest efficiency
Q30. Ram Kishan is the owner of a shoe manufacturing factory. He follows the traditional practice of
fixing standard time of work based on his own past experiences. He could not match the supply with the
demand for shoes produced in his factory. His son, Shyam who has done MBA from FMS joined
business and suggested to fix the standard time by analysing the work scientifically. The production
increased and supply could match the demand. Which principle of scientific management of Taylor is
highlighted in above case?
a) Science, not rule of thumb
b) Cooperation, not individualism
c) Harmony, not discord
d) Development of each and every person to his/her greatest efficiency

Q31. Beena, a student of management, likes to relate what she learnt in class to real life situations. She
observed many situations while watching educational programmes on television that remind her of
concepts of scientific Management. In one such programme, factories manufacturing parts for
products like automobiles, computers and mobile phones were being telecast.
Name the technique of Scientific management that should be adhered to, while manufacturing parts for
such products.
a) Functional foremanship
b) Standardisation and Simplification of work
c) Differential Piece Wage System
d) Method Study

Q32. Pawan is working as a ‘production manager’ in CFL Ltd. engaged in manufacturing of CFL bulbs.
There is no class conflict between the management and workers. The working conditions are
very good. The company is earning huge profits. As a policy matter, management is sharing the
gains with the workers because they believe that prosperity of the company cannot exist for a long
time without the prosperity of the employees. Identify the principle of scientific management
 described in the above para.
a) Science, not rule of thumb
b) Cooperation, not individualism
c) Harmony, not discord
d) Development of each and every person to his/her greatest efficiency

Q33. Wizard Digitek Enterprises imports various computer parts from China and assembles them to
make a complete computer. The total work involves three different tasks: assembling, labelling and
packaging of computer. Each employee of the company independently performs these three tasks. As a
result, no employee is able to gain specialisation in a particular field and the company is unable to
fulfill the orders on time. Identify the principle/technique of management which can be followed by
Wizard Digitek Enterprises to overcome this problem
a) Method Study
b) Centralisation and Decentralisation
c) Initiative
d) Division of work

CASE STUDIES
Q34. Management principles enable managers to learn from past mistakes and conserve time by
solving recurring problems quickly. As such management principles increase managerial
efficiency. For example, a manager can leave routine decision-making to his subordinates and
deal with exceptional situations which require his/her expertise.
a) State the point of significance of principles of management highlighted above.
b) Identify and explain the principle of management highlighted above.
Q35. Kirtika Kapoor, the CEO of Mobilo Ltd. firmly believes in providing fair wages to the
employees , superior value to the customer, care for the environment and honest dealings
with business associates.
a) Identify and explain the general principle of management followed by Kirtika
Kapoor.
b) State the point of importance of management principles highlighted above.
Q36. For greater productivity, work should be divided into small tasks and each employee should be
trained to perform his/her specialised job. This principle is applicable to a government office
where there is a diary/dispatch clerk whose job is to receive and send mail or documents, a data
entry operator whose task is to input data on the computer, a peon and an officer etc. This
principle is also applicable to a limited company where there are separate departments like
Production, Finance, Marketing and Research and Development (R&D) etc.
a) Identify and explain the principle of management highlighted in the above para
 b) Identify and state the characteristic of principles of management highlighted in the above
para.
Q37. 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 2018-
19, 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.
a) Which principle of management was violated by Mr. Rathore?
b) What are the positive impacts of following the above identified principle?

Q38. ‘Scientific Management means knowing exactly what you want men to do and seeing that
they do it in the best and the cheapest way.’ Taylor developed various techniques for
application of Scientific Management principles and was able to achieve a three-fold increase
in productivity in Bethlehem Steel Company, where he worked. One of the techniques helps
to determine the number of workers to be employed; frame suitable incentive schemes and
labour costs. Another technique recognises those workers who are able to accomplish/exceed
the fair day’s work and is based on the premise that efficiency is the result of the joint efforts
of the managers and the workers. Quoting the lines from the above paragraph, identify and
explain the two techniques of Scientific Management.
Q39. In a company, a sales manager has to negotiate a deal with a buyer. She finds that if she can
offer credit period of 60 days she is likely to clinch the deal which is supposed to fetch the
company net margin of say Rs. 50 crores. But the company gives power to the manager to
offer a credit period of only 40 days. As a result, she could not negotiate the deal with the
buyer.
Is the sales manager liable for this? Give reason in support of your answer
Q40. The production manager of an automobile company asked the foreman to achieve a target
production of 200 scooters per day. But he did not give him the authority to requisition tools
and materials from the stores department. Can the production manager blame the foreman if he
is not able to achieve the desired target? Explain briefly the principle relating to the situation.
Q41. Nutan Tiffin Box service was started in Mumbai by Mumbai Dabbawalas. The Dabbawalas
who are the soul of entire Mumbai aim to provide prompt and efficient services by providing
tasty homemade tiffin to all office goers at right time and place. The service is uninterrupted
even on the days of bad weather, political unrest and social disturbances. Recently they have
started online booking system through their website ‘mydabbawala.com’. Owing to their
tremendous popularity amongst the happy and satisfied customers and members, the
dabbawalas were invited as guest lecturers by top business schools. The Dabbawalas operate in
a group of 25-30 people along with a group leader. Each group teams up with other groups in
order to deliver the tiffin on time. They are not transferred on frequent basis as they have to
remember the addresses of their customers. They follow certain rules while doing trade- No
 alcohol during working hours; No leave without permission; Wearing of white cap & carrying
ID cards during business hours. State the three principles of management given by Fayol.
Q42. Appar Foundation is a Non Government Organisation (NGO) working to improve the lives of
children with medical needs, the homeless and victims of natural disasters. Apart from donations
in cash, they collect dry ration, old clothes, shoes, toys, books and medicines from donors. At
Appar Foundation’s office in Bhopal the material collected is segregated, classified and put in
shelves and boxes that are labelled systematically. There is a specific place for each these items
and volunteers put everything at their respective places. The volunteer work is divided into
specific jobs like fund raising, field visit, social media updates and so on. Each volunteer is part
of a particular team, depending on their competency and training. Each volunteer becomes
specialised in their respective field, leading to efficient utilisation of human effort.
Identify and explain two principles of management adopted by Apaar Foundation.
Q43. Deewan Ltd. is a multinational consulting company with its headquarters at Washington D.C. It
hires young people from different countries of the world. It is a company in which people dream
to work because of its work-environment, pay and growth prospectus. The company has a culture
of open communication and people of various nationalities work together in a discrimination free
environment. The behaviour of managers of Deewan Ltd. emphasizes kindliness and justice
which ensures loyalty and devotion of workers. It also promotes mutual trust and belongingness
among team members. In this way management of Deewan Ltd. is able to achieve its objectives
by promoting team work. By doing so managers of Deewan Ltd. are following some principles
of management.
Identify and explain two such principles.
Q44. Mohan Ltd. is producing different lines of products viz. cosmetics, medicines, confectionary
items, etc. All activities of the company like purchase, production, sales, accounting, etc. share
common Purchase, Production, Sales and Accounts Departments. As a result, there is chaos and
ineffective working of the organisation. No department is able to set specific targets related to
each type of product and is unable to give justice and full concentration to each product line.
Moreover, employees remain confused regarding provision of their focus and attention to a
particular product line. Identify and explain the principle of management violated here.
Q45. Factory system of production implies that managers serve as a link between the owners and the
workers. Since as managers they had the mandate to ‘get work done’ from the workers, there
always exist the possibility of a kind of class-conflict, the managers versus workers. Taylor
recognised that this conflict helped none, the workers, the managers or the factory owners. Both
should realise that each one is important. In such a situation even trade unions will not think of
going on strike etc. According to Taylor, ‘Scientific management has for its foundation the firm
conviction that the true interests of the two are one and the same; that prosperity of the business
cannot exist for a long time unless it is accompanied by prosperity/well-being of its workers.’
Japanese work culture is a classic example of such a situation. In Japanese companies,
paternalistic style of management is in practice. There is complete openness between the
management and workers. If at all workers go to strike they wear a black badge but work more
 than normal working hours to gain the sympathy of the management.
a) Identify and explain the principle of scientific management highlighted in the above
paragraph.
b) To achieve a state like that of Japanese work culture, Taylor called for an important
concept. Identify and explain that concept.
Q46. Taylor’s prescription for efficiency depends to a large extent on personnel competencies. To
increase efficiency, workers should be given the required training. Efficient employees will
produce more and earn more. Efficiency also requires the search for one best method of doing
the job. The best method chosen must lead to the determination of a fair day’s work. There must
be a compensation system that differentiates those who are able to accomplish/exceed the fair
day’s work. This system must be based on the premise that efficiency is the result of the joint
efforts of the managers and the workers.
Thus, rather than quarreling over the share in the resultant surplus, the workers and managers
should work in harmony for maximising the output rather than restricting it. Identify and
explain the principles / techniques of scientific management as given by Taylor discussed
above.
Q47. Karan Nath took over ‘D North Motor Company’ from his ailing father three months ago. In the
past the company was not performing well. Karan was determined to improve the company’s
performance. He observed that the methods of production as well as selection of employees in the
company were not scientific. He believed that there was only one best method to maximise
efficiency. He also felt that once the method is developed, the workers of the company should be
trained to learn that ‘best method’. He asked the Production Manager to develop the best method
and carry out the necessary training. The Production
Manager developed this method using several parameters right from deciding the sequence
of operations, place for men, machines and raw materials till the delivery of the product to
the customers. This method was implemented throughout the organisation. It helped in
increasing the output, improving the quality and reducing the cost and wastage.
Identify and explain the principles and the technique of scientific management followed by
the Production Manager in the above case.
Q48. Principles of management equip the managers to foresee the cause and effect relationship of
their decisions and actions. As such the wastages associated with a trial - and - error approach
can be overcome. Principles of management also limit the boundary of managerial discretion so
that their decisions may be free from personal prejudices and biases. For example, in deciding
the annual budgets for different departments, rather than personal preferences, managerial
discretion is bounded by the principles of contribution to organizational objectives.
 a) Identify and explain the administration principle of management highlighted above.
b) State the point of significance of management principles highlighted above.
Q49. The principles of Taylor and Fayol are mutually complementary. One believed that the mgt.
should share the gains with the others while the others suggested that employees compensation
should depend upon the earning capacity of the company and should give them a reasonable
standard of living.
Identify and explain the principles of Taylor and Fayol referred above.
Q50. Sanchit an entrepreneur of a famous coffee shop with the specialty of wide variety of flavors,
but somehow the business wasn’t doing well. He took feedback from the clients and found that
they were not happy with the long waiting time to process the order. There were unnecessary
obstructions in the business which were to be eliminated. He fixed a standard time for
processing the order. There were some flavors not in demand and so they decided to stop sale
of such flavors.
Identify the techniques of Scientific Management used above.
Q51. Rajat as a CEO of a firm addressed the employees. He believed that a good company should
have a employee suggestion system and wished to minimize the employee turnover to maintain
efficiency. He ensured that all agreements were clear, fair and there was judicious application
of penalties. He believed that the lazy personnel would be dealt sternly and everyone would be
equal in the eyes of management. He also wanted to promote team spirit, unity and harmony
among the employees. He presented that the interests of the organization should take priority
over interests of employees.
Identify and explain the principles highlighted above.
Q52. The principles of Taylor and Fayol are mutually complementary. One believed that mgt. should
not close its ears to constructive suggestions made by the employees while the other suggested
that a good company should have an employee suggestion system whereby suggestions which
results in substantial time or cost reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred .
Q53. Nikhil is the production manager and is not in good terms with the marketing manager. The
boss had tried to sort out the problem but he was unsuccessful. The production manager
instructed his foremen to restrict the supply to the marketing manager so that he is not able to
achieve the target.
Identify and explain the principle ignored.
Q54. Hritik is desirous of setting up of a small factory to manufacture different kinds of eco-friendly
packaging materials. He proposes to adopt a logical approach to his business rather than hit and
trial method as he knows that this can result in tremendous savings of human energy as well
 wastage of time and materials. He plans to adopt paternalistic style of management in order to
avoid any kind of class-conflict that may emerge between him and workers. Moreover, he plan to
seek the opinion of his workers before taking any important decisions and offer incentives to
them for providing valuable suggestions for the business.
Identify and explain various principles of scientific management applied.
Q55. According to Taylor, there are various ways of doing the job. To determine the best way there are
several parameters. Right from procurement of raw materials till the final product is delivered to the
customer every activity is part of it. For designing a car, the assembly line production would entail
deciding the sequence of operations, place for men, machines and raw materials etc. All this is part
of this technique of scientific management. Ford Motor Company used this concept very
successfully. Even now auto companies are using it. Taylor also demonstrated that productivity
increased to about four times by following his another technique. On close examination of body
movements, it is possible to find out the productive, incidental and unproductive movements. He
used stopwatches and various symbols and colours to identify different movements. Through this
technique, Taylor was able to design suitable equipment and tools to educate workers on their use.
Identify the two techniques of scientific management highlighted.
Q56. Radhika opens a jewellery showroom in Jaipur. She has employed eleven persons in the
showroom. For greater productivity she divides the work into small tasks and each employee is
trained to perform his/her specialized job. The sales person are allowed to close the deal with the
buyer by giving a maximum of 10% discount, whereas the decision to give any further discount
rests within radhika’s authority. In the earlier days, five of her employees were asked to put in
extra hours of work. In return she had promised to give them special incentive within year.
Therefore, after six months when the business was doing well, she awarded a cash bonus to each
of the employee to honor her commitment. However, when it comes to settling of the conflicts
among her employees, she tends to become more biased towards her female employees.
a) Identify and explain the principles applied by Radhika by quoting the lines.
b) Identify and explain the principles violated by Radhika by quoting the lines.