Question

'Vanguard Inc.', a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in 10% reduction in the cost of production of shoes. He was rewarded for his suggestion. 

Identify the principle of management followed by 'Vanguard Inc.' in the above case:

(A) Esprit De Corps

(B) Subordination of Individual Interest to General Interest

(C) Initiative

(D) Equity

Answer 1

(C) Initiative

This is evident from the fact that the company encourages its workers, like Varun, to develop and implement plans for improvement within the organization. Varun's suggestion resulting in a 10% reduction in the cost of production of shoes demonstrates the encouragement of initiative among the employees.