The correct answer is: Statement 1 is correct and Statement 2 is incorrect.
Fayol’s principle of order states that “a place for everything and everything in its place.” This means that there should be a clear and defined structure for everything in the organization, from the tasks that employees are responsible for to the way that information is communicated. This principle helps to ensure that things run smoothly and efficiently.
Fayol’s principle of equity states that “justice should be the rule in all relations with employees.” This means that employees should be treated fairly and with respect, regardless of their position in the organization. This principle helps to create a positive work environment and motivates employees to do their best.
Statement 1 is correct because it accurately reflects Fayol’s principle of order. Statement 2 is incorrect because it does not accurately reflect Fayol’s principle of equity. Fayol’s principle of equity does not state that all persons in the organization should be treated equally. Rather, it states that justice should be the rule in all relations with employees. This means that employees should be treated fairly and with respect, regardless of their position in the organization.