Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Read the following passage and answer the following questions.

MAM Limited, a prominent player in the food processing industry, enjoyed a surge in business attributed to its popular brand, quality products, and competitive prices. The expanding workforce and a growing market for processed food were positive indicators. However, as new entrants capitalized on the trend, the company opted for a short-term strategy by instructing existing employees to work overtime. This decision, though, led to a cascade of issues. The heightened workload resulted in a decline in worker efficiency, with instances of subordinates reporting to multiple superiors. Formerly specialized divisions were now handling multiple products, causing overlap and wastage. The strain on employees led to a decline in discipline and teamwork, eroding the company's once-strong collaborative spirit. Workers felt disheartened, initiative dwindled, and product quality suffered, putting the company's market share at risk. Ultimately, it became evident that the company had implemented changes without establishing the necessary infrastructure to support such rapid expansion.

Which of the following principles is not violated in the above passage?

Options:

Unity of Command

Division of work

Scalar Chain

Espirit de corps

Correct Answer:

Scalar Chain

Explanation:

The correct answer is option 3- Scalar Chain

Scalar Chain refers to the clear line of authority from top to bottom in an organisation. The passage does not mention any break in hierarchy or bypassing of the chain of command. Hence, this principle is not violated.

Analysis of Violated Principles

  • Option 1: Unity of Command (Violated): The passage explicitly states there were "instances of subordinates reporting to multiple superiors." The core of this principle is that an employee should receive orders from only one supervisor.

  • Option 2: Division of Work (Violated): The text mentions that "formerly specialized divisions were now handling multiple products," leading to overlap and wastage. This is a clear breakdown of specialization.

  • Option 4: Esprit de Corps (Violated): The passage describes a decline in "teamwork" and the erosion of the "collaborative spirit." Since Esprit de Corps is about promoting harmony and team spirit, it was definitely violated.