Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

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.

The principles violated above are related with:

Options:

General Management

Modern Management

Scientific Management

All of these

Correct Answer:

General Management

Explanation:

The principles violated by the company are:
(i) Unity of Command-  Subordinates had to work for more than one superior
(ii) Unity of Direction- Divisions were made to work on two or more products, which resulted in overlapping and wastage
(iii) Discipline- Workers were becoming undisciplined
(iv) Espirit De Corps- Spirit of teamwork was beginning to diminish
(v) Initiative- Initiative was declining

* All these principles are principles of general management which were given by Henry Fayol. He gave 14 principles which are known as principles of general management.