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‘F’ limited was engaged in the business of food processing and selling its products under a popular brand. Lately the business was expanding due to good quality and reasonable prices. Also with more people working the market for processed food was increasing. New players were also coming to cash in on the new trend. In order to keep its market share in the short run the company directed its existing workforce to work overtime.

But this resulted in many problems. Due to increased pressure of work, the efficiency of the workers declined. Sometimes the subordinates had to work for more than one superior resulting in declining efficiency. The divisions that were previously working on one product were also made to work on two or more products. This resulted in a lot of overlapping and wastage. The workers were becoming undisciplined.

The spirit of teamwork, which had characterised the company previously, was beginning to wane. Workers were feeling cheated and initiative was declining. The quality of the products was beginning to decline and market share was on the verge of decrease. Actually the company had implemented changes without creating the required infrastructure.

Explain these principles in brief.

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a. Division of Work: As per this case, work was not divided among the workers as per their specialisation. Specialisation is the most efficient way to use human efforts and produces more and better work.

b. Unity of Command: In this case subordinates had to work for more than one superior. This results in declining efficiency. As per Fayol’s principle of unity of command there should be one boss and if it is violated, it results in authority being undetermined, discipline in jeopardy, order distributed and stability threatened.

c. Unity of Direction: The units of an organisation should be moving towards the same objective. Each group must be having same objective, must have one head one plan. But in this case first the producers were working on one product then moved to two or more group. Thus, this principle was also violated.

d. Discipline: In this case, there was a lack of formalised control as the workers were working beyond there abilities. There were no rules and regulations as well as lack of employment agreement.

e. Subordination of Individual Interest to General Interest: Every individual was working better only when the organisation was giving priority to their general interest. In this case, company was focusing only over its objective and not on employees.

f. Order: People and materials must be in suitable places at appropriate time for maximum efficiency. But in this case they were not following the order of anything.

g. Initiative: It implies that workers should be self motivated, suggestions should be taken from the employees. It results in substantial cost and time reduction. But here they were taking no feed backs and no suggestions.

h. Remuneration: The workers should get their fair wages, but here workers were performing day and night but they were not getting a fair amount for the same. This resulted that they were feeling cheated.

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