Management Principles in Extension: Planning, Organizing, Staffing, Coordinating, Budgeting & Span of Control

• Nudge Theory in Behavioral Economics:
• Developed by Nobel laureate Richard Thaler and Cass Sunstein (Nudge: Improving Decisions About Health, Wealth, and Happiness, 2008).
• Assertion (A) is false: Nudging is rooted in libertarian paternalism; it strictly avoids restricting or forbidding choices or significantly altering economic incentives.
• Reason (R) is true: Nudging alters choice architecture using subtle positive environmental cues, defaults, and positive reinforcement to guide behavior without coercively mandating or eliminating options.
• Conclusion: (A) is false but (R) is true, corresponding to Option 4.

Correct option: (4) (A) is false but (R) is true.

• Henri Fayol's Gangplank Principle:
• In administrative management theory, Henri Fayol established the Gangplank (or bridge) to provide a shortcut across the rigid scalar chain of command.
• Key Properties:
• It allows two peers at the same organizational level across different functional departments to communicate directly with mutual consent and prior knowledge of their immediate superiors.
• It is a temporary mechanism utilized solely during emergencies to prevent administrative paralysis and delays.
• Therefore, calling it a “Permanent arrangement between two different points” is incorrect / false, making Option 2 the right answer.

Correct option: (2) Permanent arrangement between two different points to facilitate quick and easy communication

• Management by Exception (MBE):
• Formulated by Frederick Winslow Taylor, Management by Exception is a fundamental principle of Organizational Control.
• It dictates that executive managers should focus their time and corrective interventions solely on exceptional, critical variances where actual operational performance departs significantly from established standards, while routine, acceptable operations should be left to frontline subordinates.

Correct option: (3) Organisational control