Purchase manager of $A B C$ Ltd. gave order to supply raw material @ $R s . 1000$ per quintal to his relative whereas same quality raw material is available @ $R s . 900$ per quintal by another supplier. This is violation of which principle of management? Explain that principle.

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Solution

In this case, the purchase manager gave order to supply raw materials at a higher price than the market price which is a violation of the principle 'Subordination of Individual Interest to general interest'. This principle talks about putting the organisation's interest above one's own interest. If a manager works for the company keeping in mind the company's interests and objectives, it helps in a transparent work environment. Which then leads to a harmonious relationship between the management and the workers.

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Purchase manager of ABC Ltd. gave order to supply raw material @Rs.1000 per quintal to his relative whereas same quality raw material is available @Rs.900 per quintal by another supplier. This is violation of which principle of management? Explain that principle.

Purchase manager of $A B C$ Ltd. gave order to supply raw material @ $R s . 1000$ per quintal to his relative whereas same quality raw material is available @ $R s . 900$ per quintal by another supplier. This is violation of which principle of management? Explain that principle.