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CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading

A manager is given responsibility for launching a new product line in Kochi but is denied any power to hire staff or approve expenses. Which principle of organising is violated?

The principle violated is parity of authority and responsibility. A manager who is made responsible for a result must be given matching authority, such as power to hire staff and approve expenses. Without it the manager cannot discharge the duty, even though reporting lines and span may be fine.

  1. AUnity of command
  2. BParity of authority and responsibilityCorrect
  3. CScalar chain
  4. DSpan of management

Explanation

Responsibility assigned must be matched by equal authority to carry it out. Here the manager has the duty to launch the line but not the powers needed, so authority and responsibility are not at par. Unity of command concerns having one superior, which is not mentioned in the case.

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