Question

Chris has a job as a sales representative for a pharmaceutical company. The company offers both quarterly and annual bonuses based on performance. The company also has a profit-sharing plan for its employees. This demonstrates Fayol's principle of __________.a. subordination of individual interests to the common interest.
b. equity.
c. remuneration of personnel.
d. esprit de corps.
e. initiative.

Answer 1

Answer:

c. remuneration of personnel

Explanation:

Henri Fayol developed the fourteen principles of management.

One of the fourteen principles being, Remuneration of personnel.

Fayol was of the opinion that in order to extract the best performance from employees, appropriate remuneration system must exist in an organization.

This meant emphasizing on employee satisfaction by following fair remuneration practices coupled with adequate incentive system which rewards good performance.

In the given case, the pharmaceutical company offers performance based incentives in the form of quarterly as well as annual bonuses in addition to an existing profit-sharing plan for employees. This is an example of Fayol's principle of Remuneration of personnel.