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Question
A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw material for the firm. While deciding on the supplier for the financial year 2017-18, he gave the order to his cousin at
a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the order. Which principle of management was violated by Mr. Rathore? What are the positive impacts of following the above identified principle?
Solution
Mr. Rathore had violated the principle of subordination of individual interest over the general interest.He preferred his own interests by giving the supply order to his family member at a higher price but not to the supplier who was providing the same at a lower cost. This might have led to his achieving personal goal but not the organization’s goal.
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