Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

"Shining" 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 of the products. 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 over time. 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 in 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 indisciplined. The spirits of teamwork, which had characterized the company previously was beginning to take back seat, 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.

Mention the principle of management which is not followed in the given lines.

"The spirit of teamwork, which had characterized the company, previously was beginning to take back seat."

Options:

Equity

Order

Espirit de Corps

Stability of personnel

Correct Answer:

Espirit de Corps

Explanation:

Esprit De Corps: Management should promote a team spirit of unity and harmony among employees, according to Fayol. Management should promote teamwork especially in large organisations because otherwise objectives would be difficult to realise. It will also result in a loss of coordination. A manager should replace ‘I’ with ‘We’ in all his conversations with workers to foster team spirit. This will give rise to a spirit of mutual trust and belongingness among team members. It will also minimise the need for using penalties.