Question

Akika Corporation started as a small firm and has grown substantially in the past decade. Its interests span from electronics to real estate and aviation. Akika's board of directors have now decided to create independent business units for and categorize the actions performed under each domain. Each business unit will have distinct roles and responsibilities. Which of the 14 principles of Fayol does this exemplify?

Answer 1

Answer: d. Unity of direction

Explanation:

The principle of Unity of Direction is one of the 14 principles of Fayol in relation to administration. Summarised into one phrase, the principle would mean, One Head One Plan.

This is because the principle believes that when in a company, different departments aim to achieve distinct goals, the departments should have a sole leader and a sole plan for the goals that should be accomplished so that there is no confusion.

This is why the Akika Corporation wants to create independent domains that reflect the actions they perform and will have the distinct roles needed to help them perform the actions efficiently.