A production manager at top level in a resulted corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, 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. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?

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Solution

The principle of management which was violated by Mr. Rathore is 'Subordination of individual interest to general interest'. According to this principle, organisational goals should have priority over the personal interests of any individual. The individuals of an organisation should make sure that their personal interests do not affect the organisational interests in any manner.
The positive impacts of following the above principle are:

Increased productivity

Harmonious work culture

Sense of belongingness to the organisation among employees

Achievement of organisational goals

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