PRINCIPLES OF MANAGEMENT

TEST YOUR UNDERSTANDING 2.1

1. Principles of management are guidelines to action but do not provide readymade straitjacket solutions to all managerial
problems. Why?

2. The principles of management are not rigid prescriptions. What does this highlight about the nature of principles of
management?

3. The degree of centralization and decentralization depends upon the circumstances and situations of enterprise. Which
characteristic of principles of management has been high-lighted here?

4. 'Accurate cause and effect relationship cannot be established by principles of management.' Why?

Test Your Understanding 2.2

1. If the company does not provide the right place for physical and human resources, which principle of management is violated?

2. The manager of an organisation knows that one of the newly appointed workers belongs to the reserved category and he
always undermines that employee's performance. Identify the principle of management violated by the manager.

3. Anand was continuously shifted from one job to another in the organisation without giving him adequate time to settle down in
any department. Identify the principle of management overlooked here.

4. Which principle of management envisages that each group of activities having same objectives must have one head and one
plan?

5. Which principle of management suggests that employees should be treated with justice and kindness?

6. Which principle of management is violated if an employee is asked to receive order from two superiors?

7. Name that principle of Fayol which suggests that communication from top to bottom should follow the official lines of
command.

8. One of the fourteen principles of management, as suggested by Fayol, emphasises that there should be a team spirit of unity
and harmony in the work group. Name the principle.

9. Fayol points out the danger and costs of unnecessary labour turnover in one of his 'Principles'. Name the principle.

10. "Workers should be encouraged to develop and carry out their plans for development." Identify the principle of management
formulated by Fayol.

11. Name the principle of management which requires judicious application of penalties by the management.

12. A principle of management states that the work should be divided into small tasks as it leads to specialisation and increased
output. Name the principle.

13. Identify the principle of Fayol which emphasises that wages and salaries paid to the employees should be just and equitable.

14. A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient
opportunity has been given to his/her case. Identify the principle of management highlighted here.

15. Fayol insists that good sense and experience are needed to ensure fairness to all employees who should be treated as fairly as
possible. Identify the principle of management.

16. Aditi, a manager expects her subordinates to adapt to the new environs and working conditions without giving them time to
settle down. Which principle of management is being overlooked?
 17. Following this principle of management will minimise the need for using penalties, but not following it may result in a loss of
coordination. Identify the principle.

18. The production manager of Harsh Ltd. instructs a salesman to go slow in selling the product, whereas the marketing manager
is insisting on fast selling to achieve the target. Which principle of management is being violated in this case?

19. Kanika and Priyanka are typists in a company having same educational qualifications. Kanika is getting I' 16.000 per month and
Priyanka 10.000 per month as salary for the same working hours. Which principle of management is violated in this case? 20.
Rishabh, a manager, very often speaks to people at all levels, passing on instructions regarding his department and also the other
departments. Which principle of management is being overlooked?

21. The management and workers have entered into an agreement that workers will do overtime to cover up losses of the
company. In return, the manager will increase the wages. But management later refused to increase the wages. Name the
principle violated in this situation.

22. In Simran Ltd., an employee has the objective of maximising his salary, but the organisational objective is to maximise output
at competitive cost. There was some dispute on this for a while. Eventually, the organisation's interest was given priority over
employee's interest. Name the principle related to this situation.

TEST YOUR UNDERSTANDING 2.3

1. Sitaram, the production manager of X Ltd., wants to increase the speed of packaging. In order to identify and eliminate
unnecessary and unproductive movements of workers in packaging, he installed a CCTV camera in the factory. Which technique of
scientific management is adopted by Sitaram?

2. Name the technique of scientific management which helps in establishing interchange ability of manufactured parts and
products.

3. Which technique of scientific management aims at elimination of superfluous varieties, sizes and dimensions of the product?

4. Which technique of scientific management seeks to find out one best way of doing a job?

5. In one of the principles of scientific management, Taylor emphasises that there should be equal division of work and
responsibility between workers and management and management should work almost side by side with workers helping and
smoothing the way for them. Identify the principle.

6. On which principle of management, Taylor's technique of functional foremanship is based?

7. 'He/she keeps machines, materials, tools, etc. ready for operations by concerned workers.' Whose work is described by this
sentence under functional foremanship?

8. Name the technique of scientific management which differentiates between efficient and inefficient work.

9. Which principle of scientific management suggests the introduction of scientific investigation and analysis of management
practices?

10. Which principle does functional foreman-ship violate?

11. Which technique of scientific management is an extension of the principle of division of work and specialisation on the shop
floor?

12. Name the technique of scientific management which is the strongest motivator for a worker to reach standard performance.

13. Identify the principle of management which emphasises that worker training is essential to learn the 'best method'.

14. Name the technique of scientific management which focuses on separation of planning and execution functions.
CASE STUDY 2.1

In your school, you observe that books are kept in office, chalks in the library and office records in the staff room.

(a) Which principle of management is violated here and why?

(b) How will that affect the achievement of school objectives?

(c) As a manager, what steps will you take to rectify the shortcomings?

CASE STUDY 2.2

Soniya Ltd. was engaged in the business of manufacturing auto components. Lately, its business was expanding due to increased
demand for cars. The competition was also increasing. In order to keep its market share intact, the company directed its workforce
to work overtime. But this resulted in many problems. Due to increased pressure of work the efficiency of workers declined.
Sometimes, the subordinates had to work for more than one superiors. The workers were becoming indisciplined. The spirit of
teamwork, which had characterised the company previously, had begun to wane. Identify any three principles of management (as
given by Henry Fayol) which were being violated, quoting the lines from the above case.

CASE STUDY 2.3

Sanchit, after completing his entrepreneur-ship course from Sweden returned to India and started a coffee shop 'Aroma Coffee
Can' in a famous mall in New Delhi. The specialty of the coffee shop was the special aroma of coffee and a wide variety of flavours
to choose from. Somehow, the business was neither profitable nor popular. Sanchit was keen to find out the reason. He appointed
Sandhya, an MBA from a reputed college, as a manager to find out the causes for the same. Sandhya took feedback from the
clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time
being taken to process the order. She analysed and found out that there were many unnecessary obstructions in between which
could be eliminated. She fixed a standard time for processing the order. She also realised that there were some flavours whose
demand was not enough. So, she also decided to stop the sale of such flavours. As a result within a short period Sandhya was able
to attract the customers. Identify and explain any two techniques of scientific management used by Sandhya to solve the problem.

APPLICATION AND HOTS BASED QUESTIONS

1. The production manager of an automobile company asked the foreman to achieve a target production of 200 scooters per day.
But he did not give him the authority to requisition tools and materials from the stores department. Can the production manager
blame the foreman if he is not able to achieve the desired target? Explain briefly the principle relating to the situation

2. In each of the following cases which principle of management as given by Henri Fayol is being violated?

(a) When no division of the company has a separate plan of action.

(b) When a sales manager is not given the right to discount to the buyer necessary to conclude a large sales contract, which will be
profitable for the company.

(c) When a subordinate receives order from two superiors.

(d) When a manager awards contract for supply of raw material to a particular party, which happens to be owned by his relative
ignoring other parties, who can supply the same at a cheaper rate.

(e) When a subordinate habitually contacts higher authorities in the company by passing his/her immediate superior.

(f) When the tools and/or raw materials are not found at the right place in the factory.

(g) When the employee is given responsibility to achieve target production of 500 units with no authority to access over raw
materials.
(h) When the manager grants one month medical leave to a supervisor with pay and only one week medical leave to accountant.

3. Identify the techniques of scientific management, which are described by the statements given below.

(a) When many specialists supervise each worker.

(b) When uniformity is introduced in materials, machines, tools, methods of work and working conditions after due research.

(c) To determine standard time taken to perform well-defined job

(d) Giving variable wages to workers based on their performance.

(e) Change in the attitude of workers and management towards one another from competition to cooperation.

(f) To find out one best way to do the job.

4. Principles of Taylor and Fayol are mutually complementary. One believed that management should not close its ears to
constructive suggestions made by the employees, while the other suggested that a good company should have an employee
suggestion system, whereby suggestions which result in substantial time or cost reduction should be rewarded.

Identify and explain the principles of Taylor and Fayol referred in the para.

5. Principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gains with the
workers, while the other suggested that employees compensation living. should depend on the earning capacity of the company
and should give them a reasonable standard of Identify and explain the principles of Fayol and Taylor referred to in the above
para.

6. Principles of Taylor and Fayol are mutually complementary. One believed that the management should scientifically select the
person and the work assigned should suit his/her physical and intellectual capabilities, while the other suggested that the work
can be performed more efficiently if divided into specialised tasks. Identify and explain the principles of Fayol and Taylor referred
to in the above para.

7. Beena, a student of management, like to relate what she learnt in class to real life situations. She observed many situations
while watching educational programmes on television that remind her of concepts of scientific Management. In one such
programme, factories manufacturing parts for products r like automobiles, computers and mobile phones were being telecast.
Explain the technique of Scientific management that should be adhered to, while manufacturing parts for such products.

8. Pawan is working as a Production Manager in CFL Ltd. engaged in the manufacture of CFL bulbs. There is no class-conflict
between the management and workers. The working conditions are very good. The company is earning huge profits. As a policy
matter, management is sharing the gains with the workers because they believe that prosperity of the company cannot exist for a
long time without the prosperity of the employees. Identify the principle of management described in the above para.

9. Sandeep Sharma is working in a shoe manufacturing company. He is instructed by Mr. Subhash Pathak, Production Manager, to
increase production of shoes as there is excess stock of raw material in the warehouse. On the other hand, Mr. Tapan Gupta, Sales
Manager, directs him not to increase shoe production as there is low demand for shoes in the market. Sandeep Sharma is
confused as to whose order to follow and hence is unable to work in a proper manner. Because of overlapping of orders and
instructions, Sandeep, Sharma is unable to satisfy both the bosses which leads to conflict in the organisation. Identify and explain
the principle of management not being followed in the above case.

10. For the last two years, Tulip Industries is not functioning smoothly and systematically. The relations between management and
employees are becoming bitter day-by-day. After a complete analysis, it was observed that employees are not working effectively
and efficiently and management is not fulfilling its commitment of increments and promotions. Which management principle is
being ignored in the given case?
11. Arun is a salesman in Sunrise Ltd. He did an aggressive research on a new cost saving advertisement technique and suggested
the same to his sales manager. However, the sales manager did not pay any attention to his suggestion. Moreover, he also warned
him not to come with any suggestions in1 future. Which principle of management is being violated by the sales manager?

12. Fast Track Motors (automobile company) is producing three different types of vehicles: Cars, Two-wheelers and Three-
wheelers. All the activities of the company (Purchase Production, Marketing, etc.) with respect to each type of vehicle are under
one common department. Due to this, the company is unable to achieve its overall objectives. Which management principle is not
observed by the Fast Track Motors?

13. Fast Cool Industries (AC manufacturing company) asked its employees to work overtime in order to meet growing demand of
AC in the summer season. However, the employees were not paid overtime wages for extra time worked by them. Asa result, the
employees always felt dissatisfied and it led to unhealthy relationships between the employees and management. Identify the
principle of management not observed by Fast Cool Industries.

14. Mr. Prakash Chopra, General Manager of Mis Kwality Enterprises (Leather bags manufacturing company) retains complete
authority over all the activities of the business. No decision-making power is given to the subordinates. As a result, Mr. Prakash is
always engaged in day-to-day operational activities and is unable to concentrate on core issues of the company. Identify the
management Principle violated by Mr. Prakash Chopra.

15. Craft Industries has adopted a new policy of cost cutting. Instead of appointing employees on permanent basis, it has started
recruiting them as 'trainees' on temporary basis in order to avoid increment benefits. It immensely benefitted the company in
financial terms. However, within one month, the trainees started leaving the company due to feeling of job insecurity. As a result,
financial saving made by the company were spent in the process of new recruitment. Which principle of management was not
observed by Craft Industries?

16. The sales manager assigned a target of selling 40 RO Water Purifiers in a month to a group of 10 sales executives. The mutually
decided to sell 4 purifiers each. However, after selling 1 purifier, Kshitij (one of the sales executive) met with an accident. The
other sales executives did not pay any attention to the remaining target of Kshitij and concentrated on their individual sales target.
At the end of the month, only 37 purifiers could be sold. Identify the principle of management violated in the given case?

17. Shersingh works as a head mechanic in XYZ Ltd. (Machine assembling industry). He requires a number of tools while
assembling the machine. For getting the tools, Shersingh has to move frequently to the tool room, which is situated away from the
work place. Such frequent movements leads to wastage of lot of time and no steps are taken by the factory manager to eliminate
such unnecessary movements of Shersingh and his co-workers. Which technique of scientific management is overlooked by the
factory manager?

18. Mastermind Industries developed a new product 'Memory Sharpening Kit' for kids. Mr. Ashutosh, the sales manager of the
company, is asked to achieve target sales of 500 kits in one month. He designed a sales plan for the sale of kit without consulting
his sales staff. He even refused to hear their suggestions and asked them to just follow his instructions. It led to frustration among
the sales staff and as a result, the sales target was not achieved on time. Identify the management principle overlooked in the
given case?

19. Wizard Digitek Enterprises imports various computer parts from China and assembles them to make a complete computer. The
total work involves three different tasks: assembling, labeling and packing of computer. Each employee of the company
independently performs these three tasks. As a result, no employee is able to gain specialisation in a particular field and the
company is unable to fulfill the orders on time. Identify the principle of management which can be followed by Wizard Digitek
Enterprises to overcome this problem.

20. In the festive season, Shah Industries (leading manufacturers of gift items) decided to reduce the 7re9st interval of workers
from 30 minutes to just 10 minutes. However, due to heavy work load and reduction in time of rest interval, efficiency of workers
went down and it led to fall in production level, instead of rising. Which technique of scientific management should be followed by
Shah Industries?
 21. Sohan started his business of processed food items. Being the sole proprietor of business, he used to take all the decisions.
When the business of Sohan expanded, he continued with the old practice of controlling all by himself. It led to delay in all
important decisions. Identify the management principle violated by Sohan in the given case.

22. Mr. Kapoor, Finance manager of ABC Ltd, applied for leave to attend a family function in Amritsar. The director of the company
requested him to cancel his leave as there is an important meeting schedule on that date. Mr. Kapoor immediately agreed and
cancelled his trip as he thought that attending the meeting was more important for company's benefit. Which principle of
management is highlighted in this case?

23. Mr. Rajiv is the owner of 'Laxmi Dairy.' He is producing various milk products. He always tests various ways of producing
different products and chooses the best and most economical way of production. He is also very particular about fixing a place for
everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in
production. Which technique of scientific management and which principle of management are followed by Rajiv?

24. Mr. Sudhir, the senior manager of Unique Enterprise considered himself very wise and used to take all the decisions himself
without consulting the employees. He never used to help anyone nor he used to take help of anyone. The employees were not
working efficiently and company's profit margin started declining. To tackle the problem, the company appointed a new manager
from IIM Bangalore. The new manager after joining made a policy that all the decisions will be taken after consulting all employees
in the meeting. All employees must give some suggestions and best suggestions will be rewarded with financial and non-financial
incentives. This policy had very positive effects on the company. Which two principles of management are followed by the new
manager?

25. Pizza Home is a chain of stores making pizzas, located at different states of India. Earlier the process of making the entire pizza
was assigned to an individual worker and thus, the standard regarding taste, quality, shape etc. was not uniform and the company
was not getting good response from customers. The company decided that instead of assigning the whole job of making pizza to
one employee, different employees were given the tasks of making pizza bases, preparing toppings, baking of pizza, packaging etc.
As a result, each employee has gained perfection and specialisation in his job and improved his efficiency and effectiveness. It was
also decided that the employees should be selected and appointed after rigorous procedure and be kept at their position for a
minimum fixed tenure. Further the employees should be paid fair wages, which should give them at least a reasonable standard of
living.

Explain any three principles of management followed by Pizza Home.

26. Ram Kishan is the owner of a shoe manufacturing factory. He follows the traditional practice of fixing standard time of work
based on his own past experiences. He could not match the supply with the demand for shoes produced in his factory. His son,
Shyam who has done MBA from FMS joined business and suggested to fix the standard time by analysing the work scientifically.
The production increased and supply could match the demand. Which principle of scientific management of Taylor highlighted in
above case?

27. During the past five years XYZ Ltd. earns huge profits. But it did not increase the wages of its employees. Hence, the workers of
XYZ Ltd. went on a strike as they were not satisfied with their wages. They demanded more wages so as to cope up with increase
cost of living. This hampered the organization’s objective of maximum production. The management decided to give a share of
profit to workers. This served as an incentive to produce more and the workers went back to normal production levels willingly.
Which principle of scientific management of Taylor is highlighted in above case?

28. ABC Ltd. is running very smoothly. It is making huge profits. The reason behind this is the relation existing between workers
and management. Workers and managers carry on with their respective works in cooperation with each other. There is existence
of mutual confidence and understanding for each other. The management even takes workers into confidence before setting up
standard for their tasks. Which principle of scientific management of Taylor is highlighted in above case?

29. While selecting the employees, Mr. Karan, HR Manager followed scientific procedure. This was done to select right person for
right job. He also arranged for the education and training of employ helped the employees to develop their existing capabilities
and adapt themselves to changes in business environment. It also brought prosperity for the company. Which principle of
scientific management of Taylor is highlighted in above case?

30. In order to set up standard target of performance for workers, it was necessary for Shiv Ltd. to fix standard time for workers to
perform a particular job. For this Mr. Ganesh, the Production Manager of the company observed the workers when they were
performing the job. He used a stop watch in hand and noted down the average time taken by workers for completion of the job.
He repeated the same observation for 100 times and then calculated average time for the performance of the job. This was fixed
as the standard time on the basis of which efficient and inefficient workers were distinguished. Identify technique of scientific
management followed by Mr. Ganesh?

31. Mohan Ltd. is producing different lines of products viz. Cosmetics, medicines, confectionary items, etc. All activities of the
company like purchase, production, sales, accounting, etc. share common Purchase, Production, Sales and Accounts Departments.
As a result, there is chaos and ineffective working of the organisation. No department is able to set specific targets related to each
type of product and is unable to give justice and full concentration to each product line. Moreover, employees remain confused
regarding provision of their focus and attention to a particular product line. Identify the principle of management violated here?

32. Pradeep is working in a sugar factory. The management asked him to work overtime so as to produce more in order to meet
increasing demand in the market. But he was not paid adequate wages for extra time worked by him. He felt dissatisfied all the
time and never contributed to his maximum. Identify the principle of management violated here?

33. Mr. Kartik, Manager of ABC Ltd., is not ready to share his decision-making authority with his subordinates. He wants to have
full control over the operations and hence, does not delegate power to lower levels. He wants to take full credit for all projects
under him and also has no faith in his subordinates. Due to this, the organisation is not running smoothly. In fact, he himself too is
not able to give full justice to all operations of the business. Identify the principle of management violated here?

EVALUATION – MULTI-DISCIPLINARY AND VALUE BASED QUESTIONS WITH ANSWERS

1. Nutan Tiffin Box service was started in Mumbai by Mumbai Dabbawalas. The Dabbawalas who are the soul of entire
Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office goers at right time
and place. The service is uninterrupted even on the days of bad weather, political unrest and social disturbances. Recently
they have started online booking system through their website 'mydabbawala.com'. Owing to their tremendous popularity
among the happy and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business
schools. The Dabbawalas operate in a group of 25-30 people along with a group leader .Each group teams up with other
groups in order to deliver the tiffin on time. They are not transferred on frequent basis as they have to remember the
addresses of their customers. They follow certain rules while doing trade- No alcohol during working hours; No leave
without permission; Wearing of white cap & carrying ID cards during business hours.

Recently on the suggestion of a few self-motivated fellow men, the dabbawalas thought out and executed a plan of providing
food left in tiffins by customers to slum children. They have instructed their customers to place red sticker if food is left in the
tiffin, to be fed to poor children later.

(a) State any one principle of management given by Fayol & one characteristic of management mentioned in the above case. (b)
Give any two values which the Dabbawalas want to communicate to the society.

2. 'Aapka Vidyalaya' believes in holistic development of students and encourages team building through a mix of curricular, co-
curricular and sports activities. On its founders day a stage performance had to be put up. A committee of ten prefects was
constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. There was a spirit of
unity and harmony and all members supported each other. With mutual trust and belongingness the programme was
systematically planned and executed. Kartik, one of the prefects realized that unknowingly the group had applied one of the
principles of management while planning and executing the programme. He was so inspired by the success of the function that he
asked his father to apply the same principle in his business. His father replied that he was already using this principle. (a) Identify
the principle of management applied for the success of the programme.

(b) State any two features of management highlighted in the above para.
(c) Identify any two values which 'Aapka Vidyalaya communicated to the society

3. Nikita and Salman completed their MBA and started working in a multinational company at the same level. Both are working
hard and are happy with their employer. Salman had the habit of backbiting and wrong reporting about his colleagues to impress
his boss. All the employees in the organisation knew about it. At the time of performance appraisal the performance of Nikita was
judged better than Salman. Even then their boss, Mohammed Sharif decided to promote Salman stating that being a female Nikita
will not be able to handle the complications of a higher post.

(i) Identify and explain the principle of management which was not followed by this multinational company.

(ii) Identify the values which are being ignored quoting the lines from the above para.

4. Rajat joined as a CEO of Bharat Ltd, a firm manufacturing Computer hardware. On the first day he addressed the employees. He
said that he believed that a good company should have an employee suggestion system and he wished to minimise employee
turnover to maintain organisational efficiency. He informed all employees that he would ensure that all agreements were clear,
fair and there was judicious application of penalties. However, he said that he believed that lazy personnel should be dealt with
sternly to send the message that everyone was equal in the eyes of management. Also that he would want to promote a team
spirit of unity and harmony among employees, which would give rise to a spirit of mutual trust and belongingness among team
members and eventually minimise need for using penalties. He told all present that the interests of the organization should take
priority over the interests of any one individual employee.

(a) Identify and briefly explain any four principles of management given by Fayol, which Rajat highlighted in his address to the
employees.

(b) Also state two values that Rajat wanted to spread in the organization.

5. Appar Foundation is a Non-Government Organisation (NGO) working to improve the lives of children with medical needs, the
homeless and victims of natural disasters. Apart from donations in cash, they collect dry ration, old clothes, shoes, toys, books and
medicines from donors. At Appar Foundation's office in Bhopal the material collected is segregated, classified and put in shelves
and boxes that are labeled systematically. There is a specific place for each these items and volunteers put everything at their
respective places.

The volunteer work is divided into specific jobs like fund raising, field visit, social media updates and so on. Each volunteer is part
of a particular team, depending on their competency and training. Each volunteer becomes specialised in their respective field,
leading to efficient utilisation of human effort.

(i) Identify and explain two principles of management adopted by Apaar Foundation.

(ii) State two values that Apaar Foundation is displaying and promoting in society through their work.

6. ABC Ltd. is engaged in producing electricity from domestic The There is almost equal division of work and responsibility
between workers and management. The management even takes work3emrsairritkso confidence before taking important
decisions. All the workers are satisfied as the behavior of the management is very good.

(a) State the principle of management described in the above para.

(b) Identify any two values which the company wants to communicate to the society.

7. Voltech India Ltd. is manufacturing LED bulbs to save electricity and running under heavy losses. To revive from the losses, the
management thought of shifting the unit to a backward area where labour is available at a low cost. The management also asked
the workers to work overtime without any additional payment and promised to increase to wages of the workers after achieving
its mission. Within a short period the company started earning profits because both the management and the workers honoured
their commitments.

(a) State the principle of management described in the above para.

(b) Identify any two values that the company wants to communicate to the society.

8. Kushal Ltd. is a leading automobile company in which the various departments are setting up their own objectives without
paying any interest to the organisational objectives.

(a) Which aspect of management the company is lacking? What will be its impact on the organisation?

(b) Identify the principle of management which has been overlooked by this organisation.

(c) State any two values neglected by the people of this organisation.

9. Sigma Ltd. is a large company manufacturing electric motors. The company has several departments — Production, Marketing,
Finance and H R. Mr. Shashank, CEO of the company set the target sale of 10 crore in a month. To increase the sales, the
marketing manager, Mr. Ishaan insists on offering 10% discount to customers. But the finance manager, Mr. Mohak does not
approve such discount as it would mean loss of revenue. Because of dual subordination, the sales manager, Mr. Anshik could not
achieve the sales target.

(a) Which concept of management Sigma Ltd is lacking? State it.

(b) Which principle of management has been overlooked by this company? State it.

(c) Which principle of Fayol will you suggest the company to follow? State it.

10. Telco Ltd. is manufacturing files and folders from old clothes to discourage use of plastic files and folders. For this, they
employ people from nearby villages where but less job opportunities are available. An employee, Harish, designed a plan for cost
but it was not welcomed by the production manager. Another employee gave some suggestion for improvement in design, but it
was also not appreciated by the production manager.

(a) State the principle of management described in the above para.

(b) Identify any two values that the company wants to communicate to the society.

11. Khandelwal Ltd., a tyre manufacturing concern has been established for more than ten years. Having made good profits in the
past, company wanted to expand further and hence did not declare bonus for the previous year .The workers got agitated and
trade union declared strike and demanded bonus and other facilities. The management decided not to give into their demands.

(a) Which principle of scientific management is overlooked in the given case?

(b) State any two values overlooked/ ignored by the management in the above case.

12. Mr. Ravi, General Manager in Unique Ltd. used his theoretical knowledge of his management studies in a unique and creative
way. All the employees working under him are very happy and satisfied because of his behaviour. He always welcomes the
suggestions of employees and rewards them for good suggestions. He treats all his employees fairly. He never discriminates
employees on the basis of gender, religion or caste, etc.

(a) State the nature of management highlighted in the above case.

(b) State the two principles of management followed by the manager.

(c) State any two values followed by the manager.

13. ABC Ltd. was not doing well and their profit margin were declining. On investigation it was found that workers of production
department were not happy with their manager’s behavior. Workers were forced to work for longer hours without any break and
no latest machine or technology was brought to organisation. The new production manager, Mr Ajay scanned the environment
and found that the company was using obsolete machinery and technology. He replaced the machinery and also started giving
small rest intervals to workers so that they can recharge their energy.
(a) Name the scientific management technique adopted by Mr Ajay.

(b) Identify the feature of management highlighted in the above case.

(c) State any one value followed by Mr. Ajay.

14. Shiv Enterprises is a small organisation manufacturing cloth and jute bags. It follows the functional organisation structure.
There is separate department for Finance, Marketing, Production and Human Resource. These departments are well co-ordinated.
There is a congenial work environment and employees are happy and satisfied. The employees are encouraged to develop and
carry out plans for improvements in the organisation leading to a feeling of ownership among them. Besides, the company
provides nutritious and hygienic lunch to its staff and a good crèche facilities for its employees' children.

(a) State any feature and one principle of management highlighted in the above case.

(b) State any two values which Shiv Enterprises wants to communicate to the society.