Solution of Chapter 2. Principles of Management (NCERT - Business Studies Part-I Book)

Chapter Exercises

Very Short Answer

Short Answer

Long Answer

8

(Further information related to the above question 6) The management of company Bhasin Limited now realized its folly. In order to rectify the situation, it appointed a management consultant -Mukti Consultants - to recommend a restructuring plan to bring the company back on the rails. Mukti Consultants undertook a study of the production process at the plant of the company Bhasin Limited and recommended the following changes —

• The company should introduce scientific management with regard to production.


• Production Planning including routing, scheduling, dispatching, and feedback should be implemented.


• In order to separate planning from operational management ’Functional foremanship’ should be introduced.


• ‘Work study’ should be undertaken to optimize the use of resources.


• ‘Standardisation’ of all activities should be implemented to increase efficiency and accountability.


• To motivate the workers ‘Differential Piece Rate System’ should be implemented.


(The above changes should be introduced apart from the steps recommended as an answer to Part c - case problem 6 above.)


It was expected that the changes will bring about a radical transformation in the workings of the company and it will regain its pristine glory.


a. Do you think that the introduction of scientific management as recommended by M consultants will result in the intended outcome?


b. What precautions should the company undertake to implement the changes? Give your answer with regard to each technique separately as enunciated in points 1 through 6 in the case problem.