Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Based on following case study, answer question.

 "Oxlo enterprises" is a renowned name in textile manufacturing Industry. Over the past 2 years the company has scaled to new heights. The management has been grateful to the loyal team of managers and staff. Mr. Sharma, who is the operations head has been very clear about giving work to team mates based on their specialisation and skills. He has also given positional rights to people and often talks to subordinates to perform work and submit it on time. Talking about production department, where Ms. Neeta is departmental head. In her team, work is well distributed till the lower most levels. She makes sure that no gender bias is there and all people are treated equally.

"Oxlo enterprises" follows a system of official communication where each subordinate contacts his/her immediate superior only. One of the best working patterns that exists in the organisation is that everyone and everything can be found at the right place. The whole company works on the ideology of "United we stand" and the culture can be translated by their usage of "We" as a common phrase. As the size of company has tremendously expanded, now the management has hired two new Departmental heads to focus on productivity. One of them has been made "Planning Incharge" and the other one as "Production Incharge". Mr. Padam, who is the Production Incharge, has suggested, an innovative way to improve production of units by workers. He said those workers who produce more units than standard would be paid more money per unit produced.

Mr. Padam also suggested to use standards for performance of both men and machines, so that raw material, time, product, machinery methods on working conditions can perform as per benchmarks.

"Ms. Neeta, in her team, work is well distributed till the lower level".

Identify the principle of management used by Ms. Neeta.

Options:

Discipline

Decentralisation

Order

Unity of direction

Correct Answer:

Decentralisation

Explanation:

The correct answer is option (2) : Decentralisation

The principle of management used by Ms. Neeta is "Decentralisation." Decentralisation involves the delegation of authority and responsibility to lower levels of the organizational hierarchy. By distributing work well among her team members, including those at lower levels, Ms. Neeta is practicing decentralization, which can lead to increased autonomy, quicker decision-making, and better utilization of resources within the organization.

* Centralisation and Decentralisation- The concentration of decision-making authority is called centralisation whereas its dispersal among more than one person is known as decentralisation. According to Fayol, “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through centralisation.” The degree of centralisation will depend upon the circumstances in which the company is working. In general large organisations have more decentralisation than small organisations. For example, panchayats in our country have been given more powers to decide and spend funds granted to them by the government for the welfare of villages. This is decentralisation at the national level.