This question refers to one of Henri Fayol's 14 Principles of Management, which are fundamental guidelines for effective organizational administration. These principles aim to provide a framework for managers to organize and lead their teams efficiently.
The correct answer is A: Parity of authority and responsibility. This principle states that an individual given the authority (the right to give orders) to perform a task must also be given the corresponding responsibility (the obligation to perform and be accountable for the outcome). This balance ensures that employees have the necessary power to fulfill their duties and are held accountable for their actions, preventing both abuse of power and a lack of necessary empowerment.
- B: Centralization refers to the concentration of decision-making authority at higher levels.
- C: Decentralization refers to the distribution of decision-making authority to lower levels.
- D: Esprit de corps emphasizes the importance of team spirit, unity, and harmony among employees.
These are all distinct Fayol principles, but only 'Parity of authority and responsibility' addresses the direct relationship between the two.