According to the facts of the above case, the two principles of general management followed by the company are:
- Principle of Discipline: This principles refers to obedience of employees with regards to rules and regulations of the company. It also insists that the discipline (following rules and regulations) must be maintained at superior as well as subordinate level. In the question given above the ethical code of conduct which forms a part of rules and regulations need to be followed by all the employees. This helps to maintain discipline.
- Principle of Centralisation and Decentralisation: Centralisation refers to concentration ofpower and authority in an organisation in only few hands whereas decentralisation refers to delegation of authority to lower levels as well. In the above question, the company having headquarter in Japan, that sanctions funds to regional offices, refers to concentration of powers in some way whereas in case of having regional offices and allowing the regional officers to take decision about the funds sanctioned by the headquarter for the welfare of customers signifies decentralisation.
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