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CSEET · Business Laws and Management · Principles of Management and Modern Approaches

Consider these statements. (i) Fayol said the degree of centralisation should be the same in every organisation. (ii) Fayol said authority and responsibility should go together. Which is correct?

Only statement (ii) is correct. Fayol held that authority and responsibility go together, so whoever has the right to give orders must be accountable for results. He did not prescribe the same centralisation for all firms; the proper degree depends on circumstances.

  1. ABoth (i) and (ii) are correct
  2. BOnly (i) is correct
  3. COnly (ii) is correctCorrect
  4. DNeither (i) nor (ii) is correct

Explanation

Fayol held that authority and responsibility are related, so the right to command carries accountability; hence (ii) is correct. He said the right degree of centralisation depends on the circumstances of each firm, so (i) is wrong.

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